Momentum provides a non-advisory investment service to clients. However, we also have a deep understanding of your needs and the factors which contribute to your investments achieving your ultimate pension goals.
We also provide maximum flexibility on how you can manage your investments by offering an extensive range of options, through various schemes and a variety of channels.
This approach also protects you from potential tax penalties while also providing the appropriate level of risk.
We have partnered with several major investment providers to give you the ability to build a bespoke portfolio of investments tailored to your individual needs.
Our Advanced and International SIPPs give you the additional freedom of appointing an authorised investment adviser or manager, or to manage the investments yourself.
In all situations, your pension trustees will consider your investment preferences so that we can ensure your funds are invested in line with our investment policy and the relevant regulatory requirements.
Our criteria below provides brief guidance on the sort of investment classes which are permitted and suitable for pensions. If you are unsure or have any questions, please do get in touch with our sales team.
Standard Investment Options
Assets which Momentum are happy to hold, subject to individual product qualification:
- Cash funds
- Exchange traded commodities
- Exchange traded funds where authorised or recognised by the FCA
- Government & local authority bonds and other fixed interest stocks
- Investment notes (structured products) provided there is a clear secondary market
- Shares in investment trusts
- Managed pension funds
- National Savings and Investment products
- Permanent interest-bearing shares (PIBs)
- Real estate investment trusts (REITs)
- Securities trading on a Regulated Venue*: include shares, corporate bonds, debenture stock and other loan stock, warrants (for equities) and convertible securities or other securities as defined by the FCA
- Units in regulated collective investment schemes:
These are defined as Collective Investment Schemes (CIS) authorised in the UK, or alter natively where constituted outside the UK are recognised by the FCA, as shown on the FCA Collective Investment Scheme Register
* Regulated Venues refers to stock exchanges, multilateral trading facilities (MTF) and other trading venues authorised by a financial regulator or a governmental agency either in the EEA or in a third country and are recognised by HMRC.
In order for the Investment to be classified as a Standard Asset, the investment must be capable of being accurately and fairly valued on an ongoing basis and readily realised within 30 days whenever required are permitted. If not, it will be viewed as non-standard and not acceptable for the Momentum SIPP, unless otherwise agreed by the Trustees.
There must be sufficient liquidity to pay benefits as they arise.
The portfolio must be constructed in such a way as to avoid excessive exposure to any single sector, any single region or to any single credit risk.
Clients can use their SIPP funds to purchase their business premises, or other commercial land or property which can, in turn, be leased back to the client’s company or other parties.
Our SIPP can invest in:
Commercial property in the UK
- Residential property for conversion to offices or some other commercial purpose where the change of use has been confirmed before the property is purchased
- Development land and agricultural land are both acceptable investments
Other Possible Investments
Below are assets which may need further due diligence before we make a decision on allowing them as investments.
- UK unquoted shares
- Scheme borrowing
- Unregulated collective investment schemes
- Gold bullion and other precious metals
- Offshore bonds
- Fixed term deposits where there are no restrictions on encashment
- Hedge funds
- UK commercial property in the form of public houses
- Structured products
Below is the list of assets which are not permissible in any of the Momentum SIPPs.
- Residential property
- Non-UK unquoted shares
- Carbon credits
- Hotel rooms, student accommodation
- Storage units
- Loans to connected parties or third parties
- Tangible moveable property (eg fine wine, classic vehicles)
- Renewable energy sources
Momentum may consider exceptions to our policy from time to time, however any request for variance must be supported by appropriate information and background, with Momentum retaining ultimate discretion.