GREEN ISAS: NEIW REVEALS TOP FUND SUPERMARKETS

Smile and Fair Investment Company top the tree in a new mystery shopping exercise to identify the best fund supermarkets for green and ethical stocks and shares ISAs. In the National Ethical Investment Week (NEIW) Five Star Ratings, Hargreaves Lansdown and Interactive Investor are awarded four star ratings. While Barclays Stockbrokers and Fidelity FundsNetwork are awarded three star ratings alongside the other eight fund supermarkets surveyed. 

The research is published as recent IMA figures show that in December 2009 just under a fifth (18%) of all money invested in funds via an ISA was direct from the public via fund supermarkets and discount brokers. And research from NEIW found that the older generation, who have a higher ISA allowance in the current tax year*, have a greener outlook than those in the 18-24 age groups**.

The four and five star rated fund supermarkets and discount brokers stand out as they make it easier for investors to identify green and ethical funds, providing resources that help investors understand the options available to them. For example, they provide up to date guides that explain the range of options and/or offer a filter tool that helps investors identify relevant funds. Investors can now choose funds that will make a positive impact, such as those that focus on cleaner energy and health.

Penny Shepherd MBE, chief executive of UKSIF, the sustainable investment and finance association that coordinates NEIW, said:

“With savvy investors now going direct to secure their ISA allowance, fund supermarkets are waking up to the growing interest in green and ethical investments. The high rating for a number of fund supermarkets highlights the high quality information and guidance available to investors who want to make money and make a difference. Similarly the range of green and ethical funds is on the increase.

“Many discount brokers are taking the additional step of providing resources that help investors better understand and identify funds that suit their individual needs. These fund supermarkets and discount brokers are well positioned to benefit from the current increase in ISA allowances for silver savers and the growing demand for green and ethical investing.”

Penny added:

“Green and ethical investing has changed a lot since its early days. Today, the options include climate change funds, environmental markets funds and broader sustainability themed funds as well as the more traditional negatively screened choices, which often exclude industries such as tobacco, nuclear power and defence.”

The full results of the survey are as follows:

*The amount people over 50 can save in an Isa has risen from £7,200 to £10,200, of which half can be saved in cash and half in stocks and shares. The new limit, which came into force in October, will apply to everyone from 6 April 2010.

** A YouGov survey conducted for National Ethical Investment Week 2009 found that three quarters (75%) of the silver generation say they are very or fairly green. In contrast, only two thirds (62%) of the 18 – 24 age group said the same thing.

Find out more about green and ethical investing at our NEIW consumer pages.

Read the full report: Green ISAs: The NEIW Fund Supermarket Ratings March 2010 Results

For further details, please contact:

Tony Cox/Simon Maule, Linstock Communications

020 7089 2080

The survey was carried out online by YouGov plc, among 2092 GB adults aged 18+. Data is weighted to be representative of the GB population. Fieldwork ran from 23 to 26 October, 2009.

Notes to Editors

About National Ethical Investment Week

National Ethical Investment Week (NEIW), the campaign to raise awareness of green and ethical investment options, is coordinated by UKSIF – the sustainable investment and finance association. The third NEIW will run between the 7th and 13th November 2010. For more info, visit www.neiw.org. 

About UKSIF

UKSIF, the sustainable investment and finance association, promotes responsible investment and other forms of finance that support sustainable economic development, enhance quality of life and safeguard the environment. It also seeks to ensure that individual and institutional investors can reflect their values in their investments. Founded in 1991, it has over 200 members including financial advisers, asset managers, research providers, pension funds, banks and non-governmental organisations. For more info, visit www.uksif.org.