Sustainable Stocks & Shares ISA
Invest in a brighter future for you and the world, with our sustainable ISA. When you invest your capital is at risk.
Put simply, an ESG investment fund favours companies that are leading the way in their approach to the environment, society and the way companies do business. Below are just some of the sustainable factors considered when choosing what to invest in.
- Tackling climate change
- Cutting down on waste
- Improving energy efficiency
- Solving water scarcity
- Campaigning for human rights
- Protecting consumer privacy
- Promoting gender equality
- Improving health and safety
- Making business more ethical
- Transparent financial reporting
- Greater accountability of boards
- Sustainability-linked executive pay
Our Sustainable Stocks & Shares ISA helps you save over the medium to long-term, free from income and capital gains tax. Investments are exclusively made in companies making a positive contribution towards a more sustainable future for society as a whole.
- With easy, flexible payments, you can save from £30 per month, or make payments online in single lump sums
- The ISA is quick to set up and easy to manage online
- Aims for better returns than you’d get from cash ISAs and savings accounts
- The flexibility to pause, top up or change the payments you make, at any time
- You can open the ISA alongside a Help to Buy, Lifetime or cash ISA, up to your annual £20,000 ISA limit
Remember, the value of investments can fall. You may get back less than you invest. Tax rules can change, and individual effects vary.
Our sustainable investing benefits from the same careful strategies that have seen our members enjoy steady returns over the past 10 years.
Any money is invested into the Sustainable Diversified Trust Fund, which is actively managed by Royal London, and aims to grow your savings by only investing in companies that make a positive contribution to society. The plan itself is a With-Profits investment with a medium risk rating, which aims to smooth the returns for members over the medium to long-term, therefore aiming to mitigate the risks of any sharp falls in the market.
The benefit of this approach is that we aim to provide smoother growth over the medium to long-term, whilst ensuring that our investment managers operate within a framework that focuses solely on innovative investments that have a positive impact on the world we all live in.
With a Morningstar ESG sustainability rating of 5 out of 5, the Royal London Sustainable Diversified Trust Fund has holdings in gilts, bonds, equities, commodities and cash.
Aiming for a smoother investment journey
The aim of our investment strategy is to provide our members with higher returns in the medium to long-term, when compared to saving with a bank or building society account. To help achieve this, the plan aims to smooth returns for our members, in order to try and mitigate the effects of any sharp falls in the market.
Of course, no investment is free from risk, and the way in which the fund is managed provides members with a medium risk investment product. This may appeal to those who would like to take advantage of the benefits of investing, but with the aim of a smoother investment journey.
Receiving your fair share
Unlike some Stocks & Shares ISAs that are invested directly in shares or in a share-tracking index, the money you invest with us will not normally fluctuate from day to day. However, please note that when you close, transfer or withdraw funds from your ISA, we will calculate the value of the investments that you hold within the With-Profits Fund to ensure that you leave with your fair share. This may mean that:
1. If you have been invested through periods of strong investment performance, you might get a final bonus, or;
2. If you have been invested through periods of poor investment performance, and you leave the fund, you may get back less than the current value of your plan
In some circumstances, an MVR could result in you receiving back less than you have paid in. Therefore, the amount you will receive on repayment is not guaranteed. To see all of the latest information on MVRs, please click here.
Open a Shepherds Friendly Stocks & Shares ISA and get rewarded too. We’ll send you a Love2shop voucher code worth up to £50 when you make your first payment. See our terms and conditions.
What is sustainable investing?
Sustainable investing is the practice of investing in companies which are actively making a positive impact to the environment and society. Companies who are chosen by their highly rated environmental, social and governance values (ESG). Sustainable Investing aims to find a balance between making a financial gain and delivering social good.
Why is sustainable investing important?
Over the last decade, sustainability has become increasingly important in the investment world. More and more investors now want to know where their money is going and what it’s being used for. Investors are finding it more important to know that their investments are comfortably aligned with their values.
What is ESG?
ESG is a recognised way of measuring the sustainability using 3 three different factors: environmental, social and governance.
What is the Sustainable ISA allowance/ISA limit?
The annual ISA allowance can vary each tax year. The allowance is set by the government and usually rises in line with the Consumer Prices Index. In tax year 2021/22 the allowance is £20,000.
Can I withdraw from my Sustainable Stocks and Shares ISA?
You can withdraw money from your Sustainable Stocks & Shares ISA whenever you want. However, you should remember that our ISA is a medium to long-term investment and that making regular withdrawals could reduce the value. Any money withdrawn will also reduce your ISA allowance for that tax year, as it cannot be repaid into an ISA until the following tax year.
- Past performance cannot be taken as a guarantee of future returns.
- Bonus rates vary from year to year depending on the performance of our investments and in some years we may not pay out any at all.
- HM Revenue and Customs may change the tax status of an ISA in the future.
- Inflation and making regular withdrawals may affect the purchasing value of your investment in the future.
- In poor investment conditions we may apply a Market Value Reduction (MVR).
When you take out an investment product with us your capital is at risk and you may get back less than you have put in. All references to taxation are to UK taxation and are based on Shepherds Friendly Society’s understanding of current legislation and H M Revenue and Customs practice which may change in the future. Investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.
Please note: No advice has been given by Shepherds Friendly, and if you are in any doubt as to whether a savings plan is suited to your needs, then you should contact a financial adviser. There may be a charge for financial advice, and the cost should be confirmed to you before any advice is given.