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Investors Trust is an international insurance company licensed and regulated by the Cayman Islands Monetary Authority.
Investors Trust specialises in the provision of medium to long-term investment-linked products tailored to meet the needs of investors around the world, and delivers a range of flexible, tax-efficient products including regular and single premium annuities, designed to suit various income levels and financial planning needs.
With service offices established to support plan participants around the world but not in the UK, USA or EU, Investors Trust seeks to provide opportunities to its plan participants through access to the global financial markets.
Investors Trust are not a large company by international standards and given that they are based out of Cayman, with its lack of regulatory enforcement and protection, this is a red flag if the company were to suffer any financial set-backs.
Investors Trust Evolution Savings Plan
The Evolution Savings Plan was launched in 2002, it’s a regular premium life assurance, also known as a contractual savings plan.
As an investor in the plan, you sign up to save an agreed amount on a regular basis for a pre-agreed number of years. You can begin saving from as little as US$100 per month.
Like any contractual savings plan, it should not be taken out unless you fully intend to contribute for the full term agreed, because of early surrender charges and inflexibility.
Depending on the length of the plan you sign up to, you may be eligible for a penalty free surrender after 5, 10, 15, 20 or 25 years.
According to Investors Trust, this plan has the shortest initial unit period of any offshore savings plan.
What this means in plain English is, it pays the least commission to the financial adviser who sold it to you, and so it’s cheaper up front for you than other similar products.
‘Initial units’ is a term used by insurance companies to mean the amount of money that investors pay which is allocated to paying their adviser’s commission.
Investors Trust say they offer extra allocations, based on the size of your regular premium, and they give loyalty bonuses after ten years. As such, if you remain invested and you invest heavily, the overall cost of the plan is slightly less than if you don’t.
The company also says it has a segregated portfolio structure in the Cayman Islands, which gives investors:
“100% security via an independent third party custodians’ nominee trust account.”
The plan does offer a wide range of investment funds from some of the leading global fund managers, including low cost exchange traded funds (ETFs), and there are 15 free fund switches per year. Further switches may incur a charge.
In terms of fees and charges beyond the initial units which are used to pay commission, there is an annual administration charge, a policy fee and an asset management charge.
Annual Administration Charges: For the first 10 years, 1.9% per annum of total premiums due from outset to the relevant policy anniversary.
After year 10, 0.35% per annum of total premiums due from outset to the relevant policy anniversary until the completion of the full premium payment term, no administration charge thereafter.
Policy Fee: USD/EUR 7.00 (GBP 4.5) monthly, charged at the beginning of each policy month.
0.125% monthly of fund balance, charged at the beginning of each policy month.
The plan does offer a range of investment funds from some of the leading global fund managers, including low cost exchange traded funds (ETFs), and there are 15 free fund switches per year. A fee of USD/EUR/GBP 22 is charged on each additional fund transfer request
There are no bid/offer spreads and no credit card charges on any card including Amex, and there aren’t any other hidden costs.
For as long as the assets remain invested, the asset management fee will continue to apply.
Early Encashment - Equal to the sum of the annual administration charges due for the remaining contract years at the time of surrender.
Evolution is an international regular savings plan. Investment Choice – A limited range of funds on the platform, from some of the major asset managers, but they are not mirrors.
Multi-Currency – USD / EUR / GBP.
Contract term – 5, 10, 15, 20 and 25 years.
Minimums 5 Year Term - USD/EUR/GBP 2,400 annually, 10 Year Term and above - USD/EUR/GBP 1,200 annually.
I'd be suspicious of someone flogging Cayman Islands stuff wouldn't you?
I thought I could access my money whenever I wanted. Well, imagine my unpleasant surprise when I DID withdraw some and the real costs and charges didn't reduce but actaully went up in real terms.
I nearly bought in to this because the adviser I spoke to totally shoved it at me to be frank. Then I dug into structured savings products a bit more and found out what a load of expensive rubbish they are - the only people who profit from them are them who sell them - massive commissions. Ever wondered why your IFA is so flashy!
Although this product is in some ways more attractive than other variants, this entire family of product (contractual savings schemes) have in our view now been superseded by other more attractive options.
More cost effective, more flexible and less complex options are now available for discerning investors.
If you already have an Investor Trust Evolution Savings Plan from Investors Trust SPC and it is worth £50,000 or more, we recommend you get a X-Ray Review™ conducted to give you the information you need to make a decision on the best way forward.