Before we begin, it is worth mentioning that our sister company One Crown Investments offers a number of SSAS permissible opportunities that you may wish to explore.
We thought we’d go through some of the most common SSAS pension investment requests that we’ve received in the hopes of answering your questions and providing you with helpful information regarding SSAS pension investments.
SSAS Pension Investments: Speak to Our Team
SSAS pension investment rules require that you are either a high net worth or sophisticated investor for certain investment opportunities. If you need guidance and help on that, please book a call to speak with a member of our team who can make sure that you are allowed to receive information on some of these products.
How Can I Invest My SSAS Pension Money?
What follows are some of the most common questions we’re asked regarding SSAS and investments.
Can a SSAS Invest in Loan Notes and Bonds?
Loan notes are a very common investment request we receive. We have a number of clients, both locally and nationally, who will issue a loan note because they’re trying to raise capital for their project.
It’s important for us, as the SSAS Practitioner, to understand what the loan note is investing in, as we can’t allow the SSAS to invest in an asset that would not be permissible to be held within a SSAS. It is also important that we understand what security is being offered and what the rate of return is, as you want a rate of return proportionate to the level of risk you are taking.
So, yes. In principle, you can do loan notes.
Can a SSAS Invest in Bonds?
Absolutely. There are many companies in the world who issue bonds. In effect, bonds are debt and they come in all sorts of grades. If you want to explore that further, you can speak to a financial advisor to find out more.
It is worth pointing out that the government also issues debt, known as gilts. Gilts can vary in time spans; anything from one year up to 70 years. They all carry varying rates of return on bonds, but they’re called Gilts because the government should always repay its debt and always has done.
The UK government has never defaulted on Gilts yet. So, again, it’s perceived as a relatively safe, low-risk investment option. If you want to find out about Gilts, speak to a financial adviser who should be able to take you through the Gilts available.
Can a SSAS Invest in Litigation Funds?
Yes, a SSAS can invest in litigation. These are often run by Companies and will typically offer a fixed term of 1-3 years. Again, you should look at these in more detail to understand what level of security is being offered for the litigation of the fund.
There are certainly some good litigation funds and some that have capital guarantees. As with all these types of investments, you need to do your due diligence and look into them carefully to make sure that they fit your risk profile.
Can a SSAS Invest in Private Equity?
Yes, but again, you need to approach with caution. You need to understand the equity being offered and from whom. You can only invest up to 5% of the value of your SSAS if the equity is in a Company that’s connected to you. There are also restrictions around a family member having a Company issue with equity. So, it’s important to be aware of that also.
If an unconnected third party Company is issuing the equity, yes you can buy those notes. However, you need to be sure how much you’re buying in terms of the percentage value of the issue. So, look at the potential return, what companies are investing in, and what their business is about. You need to assess the risk very carefully before buying something like private equity as this is considered a high risk investment.
Can SSAS Invest in Shares, Including AIM Stock?
Absolutely, yes. A SSAS may invest in shares from pretty much any stock market all around the world.
If you're going to invest in shares, we usually arrange to set up a stockbroking account for the SSAS. You can transfer money from the SSAS into the stockbroking account and then it’s up to you to select the shares you want to buy.
As with all these types of investments, do you research and due diligence and make sure what you’re selecting fits your risk profile.
Can a SSAS Invest in Gold?
Absolutely. In fact, gold is the only precious metal that SSAS is allowed to invest in. If you are going to buy physical gold, unfortunately you can’t store it in your house. Physical gold must be held in a bonded warehouse where it can be looked after by a third party.
Can a SSAS Invest in Premium Bonds?
No, a SSAS cannot buy Premium Bonds. However, it can potentially buy investment bonds. So, see what’s on offer and speak to us about what can be done.
Can a SSAS Invest in Cryptocurrency?
This is probably one of the most popular requests we’ve received over the last 10 years. Until very recently, it has been extremely difficult for SSAS to invest in cryptocurrency.
However, the market is broadening out in terms of how you can get into it. There are also a number of exchanges that are prepared to accept SSAS into cryptocurrency. It’s worth stating that there are a number of shares which invest in crypto. So, again, you may want to try and explore this option while being mindful of risks.
Get in Touch to Discuss Investments
If the above investments are of interest to you and you’d like to consider them for your SSAS, book a call to speak with a member of our team.
