The strengths and weaknesses of unquoted stocks

Unquoted stocks are an accepted investment in a Sipp, but to get the most out of them to reduce risk and boost performance you need to understand their strengths and weaknesses

When the Finance Act received Royal Assent in July 2006 it confirmed that unquoted shares were an eligible investment within a self invested personal pension (Sipp). However, many investors and advisers remain hesitant about the idea of including these shares in a pension. If you are one of the many advisers who assume that investments with a high-risk reputation should not go anyway near a pension, now might be the time to give the subject a second thought. Unquoted stocks can reduce the overall risk of an investment portfolio and may provide a powerful boost to performance. The secret of...