Investors Trust Review

There are 6 variations of the insurance bond broken down into three Platinum versions; Platinum, Platinum Select and Platinum Plus, and three Access Portfolio versions; Access Portfolio 5000, Access Portfolio 8000 and Access Portfolio Plus. Open architecture investments with links to 14 fund houses. The Cayman Islands Government has constructed a regulatory regime that is highly favourable to offshore operations with no taxation in the Cayman Islands other than stamp duty and import duties.

What does Investors Trust write about their own Platinum and Access plans? ITA works with some of the world’s top asset managers under its convenient open architecture platform. It provides clients with greater investment.

Specialising in medium to long term investment-linked products tailored to meet the needs of investors around the world, ITA offers a range of flexible, tax-efficient products, designed to suit various income levels and financial planning needs.

ITA is of course regulated and licenced by the Cayman’s Islands Monetary Authority. It is also licenced in Labuan and the DIFC for our business in those areas.

As above, plans are usually used by advisers with non-EU clients. It is not licensed in the EU and we cannot see why this should be used in the UK or USA, when other products are more transparently regulated and are addressed specifically at these markets, and have enforceable protection which is unlikely from the Caymans.

Access and Platinum are single premium, life assurance wrappers with 3 currency options, not available to US residents and countries where such distribution would be contrary to law or local regulation. Age from 18 to 85.

Platinum: 10,000 USD/EUR/GBP (top-ups 2,500 USD/EUR/GBP)
Select: 50,000 USD/EUR/GBP (top-ups 10.000 USD/EUR/GBP)
Plus: 100,000 USD/EUR/GBP
Access 5000: USD 75,000 / EUR 75,000 / GBP 50,000
Access 8000: USD 75,000 / EUR 75,000 / GBP 50,000
Access Portfolio Plus 5000: USD 75,000 / EUR 75,000 / GBP 50,000

This will depend on the type of plan you take out from Old Mutual International as they offer different charging structures largely linked to the amount of commission or earnings being taken by the third party salesman or adviser.

Platinum
Admin Charge 0.13% monthly (1.6% per annum), years 1 – 5
Policy Fee USD/EUR 7.00 (GBP 4.5) Monthly
Asset Management Fee 0.125% monthly (1.5% per annum)

Platinum Select
Admin Charge 0.4% quarterly (1.6% per annum), years 1 – 5
Policy Fee NIL
Asset Management Fee 0.3% quarterly (1.2% per annum)

Platinum Plus
Admin Charge Nil
Policy Fee Nil
Asset Management Fee 0.125% monthly (1.5% per annum)

Access Portfolio 5000
Admin Charge: 0.45% quarterly (1.8% per annum) during the first 5 years. This charge will be calculated based on the higher of the premium paid or the account value.
Policy Fee USD 180 / EUR 180 / GBP 112.5 Quarterly
Establishment fee :Nil

Access Portfolio 8000
Admin Charge 0.30% quarterly (1.2% per annum) during the first 8 years. This charge will be calculated based on the higher of the premium paid or the account value.
Policy Fee USD 180 / EUR 180 / GBP 112.5 Quarterly
Establishment fee :Nil

Access Portfolio Plus
Admin Charge 0.25% quarterly (1.00% per annum) for the duration of the Policy, based on the account value.
Policy Fee USD 90 / EUR 90 / GBP 55 Quarterly
Establishment fee :Nil

Other Charges
There are also fund management charges, usually 1% to 2.5% pa each year- depending on the funds chosen.

There is a dealing charge made for each sale and purchase that is made within the Access products of 20GBP so if you sell one fund and buy another, The Platinum products have the first 15 dealing transactions on the policy free of charge.

Additionally there may be an adviser charge to manage the portfolio, this typically can be between 1 to 1.5% per annum depending on the chosen advisers charging structure and service provided.

Pensions (QROPS and SIPP) – If the Platinum and Access Bonds are used within a QROPS or SIPP then there can (and most probably will) be additional set up and ongoing fees for the life of the policy. This is arguably unnecessary cost given that, where the adviser has an investment intermediary’s licence, it is possible to invest direct in funds without the Investors Trust policy. Second, with the product not being regulated in the EU, we are unsure why anyone would be using them within EU based QROPS, ROPS or SIPP investing, when (even if you want to use an insurance wrapper within your pension) there are other wrappers that are more transparent for the EU market? We do not recommend this product for any form of pension investing.

By explicit, it means that it is clear to see not only the charges for taking out the plan but also the cost of funds annually, any upfront fund costs, penalties on access, etc. Yes, in the main the Platinum Plan and Access Plan charges are clearly shown and any professional should be able to interpret them.

Platinum and Select
End of year 1 – 6.4%
End of year 2 – 4.8%
End of year 3 – 3.2%
End of year 4 – 1.6%
End of year 5 – 0%

Platinum Plus
None but there is a 1.5% Asset Management cancellation fee within the first 12 months.
Access 5000 and 8000
Equal to outstanding administration charges at the time of the surrender, based on the higher of the premium paid or the account value.

Access Plus
None but there is a 1.0% Administration cancellation fee within the first 12 months.

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