The S&P 500 Index Capital Protection Plan: How does it work


The S&P 500 Index plan is an award winning Best International Savings Plan (International Adviser 2019), designed to make sure you stay on track with your financial retirement goals.

These plans make sure you achieve those objectives through

  • disciplined regular contributions (monthly, quarterly, semi annually or annually)

  • capital protection

  • a stable return and the most diversified portfolio available

Additionally, the S&P 500 Index has been endorsed for many years by Warren Buffet as the best savings solution available (click here to read what he says).

The plan is provided by Investors-Trust who work via brokers all around the world to provide the most suitable products.

Investors Trust is an international group of insurance companies and subsidiaries in multiple jurisdictions around the world which aims to supply investors with access to the global markets through an array of unit-link investment products.

How does the capital protection work

It is done through a very simple and well-known strategy called Principal-Protected Note (PPN).

The principal protected note is a loan or bond which provides a guarantee on the principal invested, as long as it is held to maturity. In the case of the S&P 500 Index plan, Citi Bank, Morgan Stanley, Barclays, Deutsche Bank and HSBC "borrows" from the plan, thus providing the guarantee that the principal invested will be returned at the maturity.

All structured notes have two underlying parts:

  • A bond component: this provides the principal protection of your savings

  • A derivative component: the S&P 500 index return

A PPN is a zero-coupon (coupon simply means interest) bond – a bond that makes no interest payment until it matures – and an option with a payoff that is linked to an underlying asset. In this case – the S&P 500 Index. Based on its performance, the payoff will vary. For example, if the S&P 500 Index makes 60% over 15 years, investors will receive the full 60% gain.

In effect, the principal protection promise on the principal amount at the time of maturity, with the added gain from the index’s performance. The S&P 500 Index also offers a minimum of 40% return over the 15 years no matter how the index performs or the S&P 500 Index return, whichever is the greater.

The S&P 500 Index performance

Over the last 18 years, the index’s performance has been:

S&P 500 2 Year Return: 18.15%

S&P 500 3 Year Return: 37.29%

S&P 500 5 Year Return: 54.63%

S&P 500 10 Year Return: 180.58%

S&P 500 15 Year Return: 168.13%

S&P 500 20 Year Return: 130.43%

S&P 500 25 Year Return: 545.88%

S&P 500 30 Year Return: 762.31%

If you are interested to find out more about the plan click here or contact us at info@crewinvest.net

Who is Crewinvest? Crewinvest are simply the introducing brokers who recommend selected investments, savings and retirement products available. We have no access to your funds and do not charge any management fees. All contracts and funds are directly signed and sent to the providing companies.


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