• Bank/building society accounts.
• UK Commercial property and land.
• Loans to sponsoring employer.
• Insurance policies.
• Units in a managed pension fund.
• Unit trusts/OEICs.
• Stock exchange investments.
• Shares in sponsoring employer.
SPONSORING EMPLOYER
Shares
The scheme may invest in shares of the sponsoring employer – there are limits on this however. No more than 5% of the scheme’s net assets may be invested in the shares of any one sponsoring employer. Where there is more than one sponsoring employer, no more than 20% of the net assets may be invested in their shares in total (the 5% restriction still applies in relation to each individual employer).
Lending & borrowing
• Up to 50% of the net value of the fund can be used for a loan to the sponsoring employer. The loan must be secured by way of a first charge and will have a maximum term of 5 years.
• Scheme trustees may borrow up to 50% of the net value of the fund.
Self-investment is subject to HM Revenue & Customs (HMRC) conditions and restrictions. The value of an investment is not guaranteed and can go down as well as up, and could fall below the amounts paid in.