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(This article was last updated on July 27, 2022.)

This article is mainly about Investors Trust S&P 500 review and MSCI products.

During this article, we will discuss:

If you want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.

Advisors and introducers who want to distribute Investors Trust globally can also reach out to me.

Firstly, who is Investors Trust?

Investors Trust is a fast-growing investment provider based in Puerto Rico, Cayman Islands, Malaysia, and beyond. They also have administration offices in the UAE and Uruguay.

With $3.2billion in assets under management and clients in over a hundred countries, they are increasingly becoming a bigger player in the offshore investing landscape, having grown more than 45% per year during the pandemic.

Most of the clients are expats or locals in Latin American, Africa and Asia.

The S&P500 product is more widely sold than the MSCI one, but the plans are very similar, as I will explain in this article.

What are the basics associated with these plans?

The basic elements of the plans are below:

Below are the major firms in the S&P500 index:

a1 1
Source: Statista

This contrasts sharply with the regions found in the MSCI EAFE index, focusing on Europe, the Middle East and the Pacific.

a1 2
Source: MSCI World

Therefore, the fundamentals for the two investment accounts, including the fees and downside protection, are identical.

The only difference is which market, or index, they are focusing on, which will influence the long-term performance.

What are the positives and negatives associated with these plans?

The main positives

a1
Source: 13D research

One of the major reasons for these cheap valuations has been the recent under-performance of the MSCI EAFE index:

a1 2
Source: CFA Institute Blog.

The main negatives

FAQs

This section will answer some additional frequently asked questions people are asking at the moment.

Is now a good time to invest in the S&P500 and other stock markets?

This is a question which has been asked every year since stock markets were invented. The evidence suggests that nobody can find the right moment to put money in the markets – also known as market timing.

Markets tend to rise, and fall, during unexpected moments as well. Few expected the global stock markets to do so well after Brexit and Trump’s election in 2016, or after the disputed election in 2020.

Therefore, it is better to invest every month, or as a lump sum, as soon as you have the money.

Is investing in this structure safe?

Yes, Investors Trust have a segregated accounts system, which means that your money is not at risk if the company goes bust.

Considering how much AUM they have, in addition to the recent fast growth, it is exceptionally unlikely that such a system will be needed in the first place.

Is the Cayman Islands a good jurisdiction to hold offshore plans?

There is a lot of misleading things online about this issue.

Firstly, the plans are in Malaysia (Labuan), Puerto Rico and Cayman. The laws in Puerto Rico go all the way up to federal level.

So, you don’t need to buy a Cayman plan, and can elect for Labuan or Puerto Rico instead. However, Cayman is the fifth biggest global financial centre on some measures, so you shouldn’t be worried about it.

What is more, Investors Trust utilize onshore banking in the UK and US.

The bigger question is whether you need the downside-protection in the first place, rather than equivalent cheaper plans.

What happens if I lose contact with my advisor?

If you lose contact with your advisor, or aren’t happy with the service, you can approach countless other financial companies who can take over the running of the account.

We have helped numerous clients, who are using countless expat-focused providers, get better returns or service.

If you have had a bad experience with an advisory company, this isn’t the fault of the investment provider.

Are there tax benefits of investing in these kinds of policies?

Yes, but it depends on where you are from, and where you live.

In general, it does make sense for non-American expats to invest offshore, rather than in a home country or new country of residence.

Investing offshore tends to be more portable as well.

Have people tended to make good money in the plan?

Yes, assuming they have carried on investing on a regular basis, and haven’t stopped in the middle.

The MSCI plan has had average returns, at best, but that is because the index itself has done badly.

Investors Trust S&P 500 Review: Bottom Line

This can be an excellent solution for people in very specific situations – especially those investors who are overly worried about the volatility in the markets and are likely to panic sell.

It can also be good for diversification. In other words, some investors might want to put a percentage of their funds in such a solution.

For some other investors, however, alternative solutions offer better value, including other options on Investors Trust itself.

If you are looking to invest and want a second opinion, or already have the plan, you can email me – advice@adamfayed.com – or use the contact options here.

In some cases, I can offer the same plans at discounted prices. Also see another Investors Trust review here which discusses their Access Portfolio product.

Pained by financial indecision? Want to invest with Adam?

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Adam is an internationally recognised author on financial matters, with over 735.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

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