Changing the funds of my Stocks and Shares ISA - can I do that?

Marissa73

I have a long standing Stocks and Shares ISA with Scottish Widows. When I took it out I didn't really think about the funds but now I really want to make sure I'm invested in companies with good ESG practices. Can I change funds in an existing ISA? Or do I have to withdraw the money and start again? 

dunstonh

You can change funds within your ISA but you will be limited to their limited fund range.   If you looking at SRI then you are best with a whole of market platform.     You can transfer the existing ISA to the new one.

colsten

The rules say you can freely sell and buy within the ISA. How it works, and what you can buy, depends on your platform.

AnotherJoe

Marissa73 said:

I have a long standing Stocks and Shares ISA with Scottish Widows. When I took it out I didn't really think about the funds but now I really want to make sure I'm invested in companies with good ESG practices. Can I change funds in an existing ISA? Or do I have to withdraw the money and start again? 

Nooooo ! Do not do that. TRANSFER it to a new ISA especially if  there's over £20k in SW because otherwise you'll be restricted to the £20k limit.

I dont know what funds SW offer but assuming a limited selection it will be quicker to sell them, keep the cash in the ISA and transfer the money (the receiving ISA will be able to do the transfer) and then buy new funds in the new ISA.

This is because it can take a long time to transfer funds, and if SW funds arent available in the new ISA they will have to be sold anyway.

For my interest, Whats an "ESG" practice with regard to funds?

Aminatidi

AnotherJoe said:

Marissa73 said:

I have a long standing Stocks and Shares ISA with Scottish Widows. When I took it out I didn't really think about the funds but now I really want to make sure I'm invested in companies with good ESG practices. Can I change funds in an existing ISA? Or do I have to withdraw the money and start again? 

Nooooo ! Do not do that. TRANSFER it to a new ISA especially if  there's over £20k in SW because otherwise you'll be restricted to the £20k limit.

I dont know what funds SW offer but assuming a limited selection it will be quicker to sell them, keep the cash in the ISA and transfer the money (the receiving ISA will be able to do the transfer) and then buy new funds in the new ISA.

This is because it can take a long time to transfer funds, and if SW funds arent available in the new ISA they will have to be sold anyway.

For my interest, Whats an "ESG" practice with regard to funds?

Environmental, Social, and Governance.
This kind of thing https://investor.vanguard.com/investing/esg/
There are various UK funds/ETFs that invest along similar lines.

Albermarle

If you buy an ESG/ethical fund AFAIK  they have they own internal guidelines about how they rate the companies they have shares in their fund.
Some are only so called 'light green' and they basically only exclude a small number of industries , like tobacco or arms manufacturers. Some even still include the big oil companies on the basis that they are a key part of future environmental progress.
'Dark Green' funds are more rigorous in their approach but tend to be more expensive with all the extra environmental due diligence needed to assess the companies .
To the OP - as a possible easy option have a look at the Legal and General S&S ISA. As well as traditional funds they have a 'World' series and they are one of the largest financial companies to commit to supporting green ideas and causes.
It's not the cheapest ISA option available but the charges are not excessive either .

IanManc

Albermarle said:

To the OP - as a possible easy option have a look at the Legal and General S&S ISA. As well as traditional funds they have a 'World' series and they are one of the largest financial companies to commit to supporting green ideas and causes.
It's not the cheapest ISA option available but the charges are not excessive either .

They are a commercial business which has identified a demand for a type of investment product, so they are selling that product and making money from it.

You're simply repeating their marketing greenwash - which obviously works.   😉

Albermarle

IanManc said:

Albermarle said:

To the OP - as a possible easy option have a look at the Legal and General S&S ISA. As well as traditional funds they have a 'World' series and they are one of the largest financial companies to commit to supporting green ideas and causes.
It's not the cheapest ISA option available but the charges are not excessive either .

They are a commercial business which has identified a demand for a type of investment product, so they are selling that product and making money from it.

You're simply repeating their marketing greenwash - which obviously works.   😉

Of course there is some greenwash and an opportunity to sell more products . However they do seem to be more pro active in this field than some other large financial institutions.
Also for an inexperienced investor it is a more simple product than an  ISA with a whole of market platform.

Marissa73

Thanks everyone. Will log into the SW platform and see what alternatives they can offer. Otherwise look to moving elsewhere.