'Exotic' Assets in a Stocks & Shares ISA

Deriv_Options

I have a query re a statement on the site.

On the mse.com site dealing with Stocks and Shares ISAs, MoneySavingExpert.com>Banking>Savings a page on Stocks & Shares ISAs, Learn More …, There is a section titled ‘Stocks & Shares ISA need-to-knows’.

In the 3rd point, it states “You can invest in almost anything – from the mainstream such as shares, bonds and funds to the more exotic, such as farmland, vintage cars and wine. However, the majority of investors stick to shares and funds.” 

Can anyone offer some insight into how the use of these ‘more exotic assets’ works?  And further, is it privately held assets???  I have spoken to a couple of people in the finance sector who have no idea as to what is being referenced here with those examples.

(A newbie to posting)

eskbanker

I think I'd ignore that and rely on the horse's mouth:

Qualifying investments for stocks and shares ISAs

The investments that managers may purchase, make or hold in a stocks and shares ISA (‘qualifying investments’) are:

• personal equity plan (PEP) investments
• shares
• securities issued by companies
• government securities
• core capital deferred shares (CCDS)
• securities issued by certain multilateral organisations
• units or shares in a UK undertakings for collective investments in transferable securities (UCITS)
• units or shares in a qualifying non-UCITS retail scheme
• shares and securities in qualifying investment trusts
• units or shares in a recognised UCITS
• shares emerging from a Schedule 3 Save As You Earn (SAYE) option scheme or a Schedule 2 Share Incentive Plan (SIP)
• depositary interests
• depositary receipts, American depository receipts and American depository share
• cash
• units in a collective investment schemes specified as stakeholder products
• life insurance policies that satisfy the ISA requirements
• policies of life insurance issued before 5 April 2004 that had previously qualified for the separate insurance component
• investments held in a PEP at 5 April 2008 that were qualifying investments under regulation 6(2)(m) of the Personal Equity Plan Regulations 1989 (but see PEP Investments)

https://www.gov.uk/guidance/stocks-and-shares-investments-for-isa-managers#qualifying-investments-for-stocks-and-shares-isas

k12479

Deriv_Options said:

Can anyone offer some insight into how the use of these ‘more exotic assets’ works?..

There are a handful of farmland REITs listed in the US. There is Hetica Klassik Fund (not sure if it's eligible for ISAs) for cars and there was lots of noise about similar funds, and for wine no doubt, when these markets were in a bubble rising. So theoretically it is possible.

Eyeful

1. So are you actually thinking of investing in these "more exotic assets".
2. This might be of interest to you: 
https://www.thisismoney.co.uk/money/investing/article-1716622/Fed-up-with-Isas-Try-alternative-investing.html
3. Google "Pros & cons of investing in------------" and see what turns up.
4. Unless you are a multi-millionaire,
I think you should stick to boring stocks & share instead of exciting "exotic assets"