Case study 06.01.2009
Have you thought how you will maintain or even enhance your lifestyle in later life?
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Investments
The members are free to appoint the investment adviser of their choice to help take advantage of the wide range of investment opportunities open to them. Members have complete control over their investments, subject to the Trust Deed and Rules of the scheme and may invest their funds privately under their own arrangement or pool them with other scheme members under one or more common investment funds within the scheme. There is no limit to the number of common investment funds that may be established within the scheme. Members may choose whether or not they wish to participate in these funds, subject to the agreement of the member trustees and other members of the fund. Decisions relating to investments held in a common investment fund must be agreed unanimously by all members participating within the fund.
Investments made on behalf of members who are under 16 years of age, or 18 if not in full time employment, are restricted to bank and building society deposits, unit trusts, open ended investment companies and insured pension funds. Minors' funds may not be invested in common investment funds. Instructions relating to investments in the minor's own arrangement must be made by their appointed legal guardian.
| Investment Opportunities | Prohibited Investments |
|---|---|
| Commercial property | Residential property (including ground rent) |
| Land | Loans to connected parties |
| Loans to unconnected parties | Antiques |
| Quoted equities on the London Stock Exchange | Rare books and stamps |
| Quoted equities on recognised worldwide stock exchanges | Oriental rugs |
| Gilts, Bonds and Fixed Interest Stocks | Furniture |
| Investment trusts | Fine Wines |
| Unit Trusts and Open Ended Investment Companies | Works of art |
| Insured pension funds | Vintage cars |
| Bank and Building Society deposits | Yachts |
| Offshore managed funds | Jewellery and gem stones |
| Futures and options | Krugerrands |
| Copyrights | Plant and machinery |
| Gold bullion |
There are no limitations on the sale or purchase of assets to or from member trustees or other connected parties but these transactions must be at arm's length
Trustees must be careful to ensure that the purchase or sale of any asset complies with the trust deed and rules of the Family Pension Trust. Whilst it is not essential for a Family Pension Trust, it is recommended that trustees agree a statement of investment principles and make investment decisions in accordance with those principles. A statement of investment principles should include the:
- objectives of scheme;
- policy for choosing investments;
- type of investments to be held;
- balance of different investments;
- risk associated with the investments;
- expected returns;
- policy for realisation of investments.
This information relates to the Rowanmoor Pensions Family Pension Trust. Please note that this list of investments is not exhaustive. If you are in any doubt whether an investment is acceptable or not, always refer to Rowanmoor Pensions before proceeding with the transaction.