Best ‘green’ Isa services rated

Smile, the internet bank owned by Co-operative Financial Services, and Fair Investment have been rated as the best fund supermarkets for people looking to take out a green or ethical individual savings account (Isa).

According to research for UK Sustainable Investment and Finance, which promotes green and ethical investment, these fund supermarket services provide the most support for investors seeking to identify green and ethical funds.

The highest-rated services have up-to-date guides that explain the options and filter tools to help identify appropriate funds.

Hargreaves Lansdown and Interactive Investor also offer a good service for green and ethical investors, says the research, but some of the biggest brokers and supermarkets including Barclays Stockbrokers, TD Waterhouse and Fidelity FundsNetwork were rated less useful for this specialist type of investment.

Penny Shepherd, chief executive of the UKSIF, said: “Choosing a green and ethical investment can be a positive way for individuals to show their support for companies demonstrating responsible business practices and helping to combat climate change.

“With leading fund supermarkets and discount brokers now providing support for green and ethical options, it has become easier for investors to understand and identify funds that match their individual requirements.”

Last year, ethical funds enjoyed their strongest net inflows from investors since 2007, according to the Investment Management Association, but most investors continue to buy funds that do not carry green or ethical labels.