Ethical Investment Account
If you already have a General Investment Account you will know it is an account which holds funds that won’t ‘fit’ in your pensions and ISAs.
It acts like a feeder account for these with the benefit that while money sits in the Investment Account it can still be invested and benefit from the performance of your chosen investments which, can be ethically screened to create an Ethical Investment Account.
When you are able to make use of annual allowances, the funds can be transferred into a more tax efficient wrapper (your pension, ISA etc.)
An investment account does not have the tax advantages of other ‘wrappers’ but there are also no restrictions on the amount you can put in or withdraw.
Make yours an Ethical GIA.
Ethical investing means deciding to invest in a way aligned to your values so there’s no reason why not to include ethical investments in your GIA.
The same process we use to identify the ethical funds or portfolios for other wrappers (ISA, Pension etc) can be applied to your GIA. With such a wide variety of options your investment can be spread across a selection of funds with different ethical screening approaches and objectives.
Part of your investment could specifically exclude certain companies or sectors that don’t meet ethical screening criteria while another part could invest in a fund specifically set up to address the long-term financial risks of climate change.
With regular reviews your investment can be put to work and maximise your returns as well as the positive impact you have on the world.
Why use a General Investment Account?
If you have made full use of your ISA allowance and you have contributed as much as you care to into your pensions, you can continue to invest more into your favourite funds or portfolios to create an Ethical Investment Account.
There’s no limit to the amount you can invest so you decide on the amount of impact you want to have through your ethical choices.
You will receive regular reports on the performance of the investments in your account and through review meetings with your adviser, any necessary changes can be made to make sure everything is performing as well as expected and in line with your preferences.