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Ethical Junior ISA

Ethical Junior ISA Review
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Ethical Trust

from Legal & General

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 350 Index Excluding Shares Of Companies That Don't Meet Ethical Guidelines
  • Invest From: £25 pm
  • Investment Options: The objective of this fund is to provide growth by investing in a portfolio of companies whose business meets a range of ethical and environmental guidelines.

Available via Hargreaves Lansdown Fund Supermarket this is a low cost tracker  fund with a 0.25% pa annual charge.The fund will invest almost entirely in company shares. These shares will be from companies in the FTSE 350 Index whose business meets the ethical and environmental guidelines of the fund. The amount of shares held from each company will be in proportion to the company's size. However, no one company can make up more than one tenth of the fund's value. The fund may use derivatives to reduce risk or cost, or to generate additional capital or income with no, or an acceptably low, level of risk.

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Investment Fund Supermarket ISAs

Ethical Equity

from Kames Capital

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Invest via Hargreaves Lansdown fund supermarket to access this fund
  • Invest From: £25 per month or £100 single

Why we like it: Investing ethically often involves avoiding certain companies or sectors. These constraints mean striking a balance between investing ethically and delivering strong performance is no easy task. The fund manager Audrey Ryan is one of few fund managers who have handled the constraints of an ethical fund well over the long run.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

UK Ethical Fund

from Standard Life

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Invest via Fidelity Funds Supermarket & get a discount when you buy this fund
  • Invest From: £50 pm

Why we like it: The UK ethical fund aims to provide long term growth by investing in a diversified portfolio of UK equity assets that meet Standard Life's strict ethical criteria. Current areas of exclusion include alcohol, tobacco and companies deemed to cause environmental damage - the latter typically rules out most oil and mining stocks. Fund manager Lesley Duncan has an extensive track record in both UK equity and ethical investing, having taking over the reins of this fund in 2004.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

ii ACE 30 investments

from Interactive Investor

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 30 Ethical Investments
  • Invest From: £25 pm or £100 single

Why we like it: The UK's first rated list of ethical investments to help you align investments with your personal values. Building your investment portfolio can be tough – and it is even more difficult when you want to choose ethical investments. That can mean a lot of research. The ii ACE 30 makes the job easier for you.Interactive Investor have selected 30 funds, investment trusts and ETFs that they believe offer high-quality choices, across a broad variety of markets.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Ethical Junior ISA

An ethical ISA is an ISA where your money is used to invest in green, eco-friendly and ethical funds. You can invest ethically and still make money. Ethical ISAs allow you to invest in a socially responsible manner and have more say about where your money is invested. 

Currently, more and more people want more control over where and how their money is invested.

If you would like your child’s money to be invested ethically, there are now several providers who can offer this option. For example: One Family.

Ethical ISA funds are used to invest in unit trusts, gilts, the stock exchange, life assurance and many other similar ventures. They are most suitable for people who are willing to leave funds in their ISA for long periods such as five years. They are also good for people who are willing to withstand a bit more fluctuation in the value of their fund.

What Funds are Likely to be Excluded in an Ethical ISA?

While this varies from provider to provider and some are more ruthless than other, generally the following are excluded, funds derived from:

  • Tobacco
  • Alcohol
  • Pornography
  • Gambling
  • Fur trade
  • Armaments

Some also exclude:

  • Oil and mining companies due to environmental concerns and human rights abuse

Some companies don’t necessarily exclude all funds associated with these industries but instead look at each fund individually and assess the track record of that particular company in terms of their human rights or green issues.

Ethical ISA Review

OneFamily offer an Ethical Isa for children. They are a financial services provider based in Brighton, Sussex. It is a mutual society and as such has no shareholders, and is instead owned by its two million members. It is a merger between Engage Mutual and Family Investments.

Features:

Ethical Junior ISA – This option will only invest in shares of companies with a responsible outlook on social, ethical and environmental issues. It also mostly invests in UK shares.

Useful to Know

Your child will only be able to access the money at the age of 18 but will then assume full control. If you worry about your child having total access to the money then it could be between to open a savings account in your name, although this would mean losing the tax-free wrapper.

  • There is an annual management charge per year on these accounts
  • Check the provider's policy for what they class as ethical to make sure it matches your needs
  • You are able to transfer in to this account as long as the amount is £500 or more
  • You can also transfer to another provider at any time
  • You can’t open a Junior ISA if you already have a Child Trust Fund but you can transfer your child’s Trust Fund in to a Junior ISA
  • As these are Investment ISAs, it is possible that you could lose money but as this is a long term investment, the risk is minimal
Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

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Latest News

Four Ethical Junior ISAs to Consider for 2020/2021

26th September 2020

If you want to open a Junior ISA but want to make sure that the ISA itself is invested in line with you, or your child’s values, then you’ll want to consider opening an Ethical Junior ISA. But what exactly is an Ethical Junior ISA – and which ones should you be looking at? 

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