Investors Trust S&P 500 Index Review

Jan 21
Investors S&P500 Index Review

Investors Trust S&P 500 Index is arguably The Best Capital Protected Savings Plan in the market.

Investors Trust S&P 500 Index is a range of savings plans with ‘unlimited growth and downside protection’.

Although there are other capital protected savings plan providers in the UAE, Investors Trust is the only licensed savings plan provider out of them.

If you need a savings plan with capital protection, the Investors Trust S&P 500 Index is arguably the best option out there.

It allows you to invest and participate in the full growth of the S&P 500 (as recommended by Warren Buffett), with downside protection.

Have a question? Feel free to Ask Your Question Here.

I am personally using the 15-year savings plan to save for my daughter’s college education fees. If you are looking for the 'Cheapest and Best performing savings plan in the UAE, Click here'.

Minimum Contributions & Investment Terms

  • Minimum Contributions - USD 200 per month / USD 2,400 per year
  • Investors Trust S&P 500 Index Savings Plan offers the following terms - 10, 15, and 20 years.

Capital Protection

The Investors Trust S&P 500 Index Savings Plan is ‘Capital Protected’. 

  • The 10-year version provides a minimum guarantee of 100% of the capital invested or the actual market value of the S&P 500, which ever is higher.
  • The 15-year version provides a minimum guarantee of 140% of the capital invested or the actual market value of the S&P 500, which ever is higher.
  • The 20-year version provides a minimum guarantee of 160% of the capital invested or the actual market value of the S&P 500, which ever is higher.

Investment Options (Where the money can be invested)

The Investors Trust S&P 500 Index Savings Plan only invests in the S&P 500. There are no other investment options.

Consistently buy an S&P 500 low-cost index fund - Warren Buffett.
  • Widely regarded as the best single gauge in the U.S. equities market, this world-renowned index includes a representative sample of 500 companies in the leading industries of the U.S. The S&P 500 focuses on the large-cap segment of the market, with over 80% coverage of U.S. equities, but it is also an ideal proxy for the total market.
  • The history of the S&P 500 dates back to 1923, when Standard and Poor’s introduced an index covering 233 companies. The Index, as it is known today, was introduced in 1957 when it expanded to include 500 companies.

top companies by weight

Company
GICS Sector 
Apple Inc.
Information Technology
Microsoft Corp
Information Technology
Amazon Inc
Consumer Discretionary
Facebook Inc
Information Technology
Exxon Mobil Corp
Energy
Johnson & Johnson
Health Care
Berkshire Hathaway B
Financials
JP Morgan Chase & Co
Financials
Alphabet Inc A
Information Technology
Alphabet Inc C
Information Technology

Charges

Annual Administration Charge

  • 2% p.a. (10-year version)
  • 1.7% p.a. (15-year version)
  • 1.1% p.a. (20-year version)

Bid/Offer Spread - Nil

Policy Fee - USD 10 Monthly

Structure Fee - 0.125% monthly of fund balance

What you would end up with if:

  • You save - USD 1,000 per month, for 15 years,
  • You paid - USD 180,000 in 15 years,
  • You get at the end of the term - USD 291,075 with an assumed growth rate of 8% (net of charges).

What an actual quote looks like:

Click on the images below to magnify them. 

Investors Trust SP500 page_1
Investors Trust SP500 page_2

Actual Performance of S&P 500 Index (over last 13 years):

Click on the images below to magnify them.

S&P15Yr-Actual-Performance_page_1
S&P15Yr-Actual-Performance_page_2
S&P15Yr-Actual-Performance_page_3
S&P15Yr-Actual-Performance_page_4
S&P15Yr-Actual-Performance_page_5
S&P15Yr-Actual-Performance_page_6

Jurisdiction - (Where your money is held)

Investors Trust Assurance SPC (“ITA”) is an international insurance company licensed and regulated by the Cayman Islands Monetary Authority.

The Cayman Islands is an Overseas Territory of the United Kingdom recognized as the world’s sixth largest international banking centre and one of the top 10 international financial centres in the world, with over 40 of the top 50 banks holding licenses here. 

Regulated banks in the Cayman Islands represent some 45 countries from around the world. This global representation proves that the Cayman Islands is widely acknowledged as one of the leading offshore financial centres.

While the financial services chapter of the Cayman Islands dates back 40 years, the seeds of it were sown as early as the 1700s. Two important legacies of history remain from that era – English common law and tax neutrality (The Cayman Islands has never had a system of direct taxation and instead employs an indirect, consumption-based taxation system). The Cayman Islands has always been an open, free market economy, and from the 1960s onwards, successfully invested its “historic capital” to the benefit of the financial services sector.

Cayman Islands is a British Offshore Territory, just like the Isle of Man and Guernsey, which are the base for Zurich International Life, Friends Provident International, Generali International, etc…

Investors Trust uses Merrill Lynch Bank of America as its custodian, and keeps client’s money in a ‘Trust’ account that is isolated from the liabilities of the Bank, or Investors Trust itself.

Which means - even if both the bank and Investors Trust were to go bankrupt, the client’s money is safe.

CONCLUSION

Would I buy this savings plan myself, and recommend to others?
Yes

Disclaimer: This article is assumed to be accurate at the time of publishing, and represents the personal opinion of the author. If you wish to correct/contest any of the following, please do so in the comments below. I am open to correcting errors if any. All opinions are welcome.

Investors Trust S&P 500 Index

7.8
Flexibility 6.5
Investment Options 8.0
Charges 6.0
Online Access 9.0
Customer Service & Admin 9.5

For

  • Capital Protected Savings Plan
  • Premiums can be pre-paid to avoid losing capital protection
  • Invests only in the S&P500 as recommended by Warren Buffett
  • Advisers get paid commission as you pay the premiums, which keeps them motivated to serve you better
  • Best online access portal
  • No investment choice means no possibility of human error.

Against

  • Savings plan terms are 10, 15, and 20 years.
  • If premiums are not paid in a timely manner, capital protection is lost.
  • Premiums cannot be paid in AED
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About the Author

Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide.

He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’.

He helps business owners and professionals ‘Create A Second Income’ through investments.

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