Most pension scheme members are happy to leave the investment strategy of their pension fund to someone else.

Members of final salary schemes don’t really care who manages their pension fund as the scheme promises them a certain level of benefits regardless of the investment performance of the investment fund.

The majority of people with personal pensions invest in a single fund: usually a managed fund or a With Profits fund. The Pensions Office invariably recommend clients invest, instead, in a portfolio of investment funds structured to produce competitive investment returns with a controlled and restricted level of risk. We not only include a specially-selected portfolio of funds in our recommendations to new and prospective clients; we also provide ongoing recommendations for changes in asset allocation and fund selection.

However, a small number of clients of The Pensions Office take personal control of investments and the investment strategy within their pension contracts. As long as The Pensions Office is aware of their intentions we are able to ensure the pension contract and pension provider we recommend will permit the maximum possible level of flexibility in this respect, with competitive fees.

Some of these clients use their pension fund to buy and sell stocks and shares directly, using the services of a stockbroker. They make investment decisions personally and accept full responsibility for the investment performance of their fund.

A smaller number use their pension fund to buy commercial premises which are then let directly to their own business. An appropriate ‘market rent’ must be charged by the pension scheme to the business meaning, therefore, that the rent paid by the business is benefiting the value of the fund within the pension scheme. Other clients use the pension fund to purchase one or more commercial properties to let out to other tenants, thus building a property portfolio which, when sold, will not be subject to liability to Capital Gains Tax.

If you want to manage the investments in your pension scheme personally and would like guidance as to the range of opportunities and restrictions…….