Stocks & Shares ISA

You don’t have to worry about the headache of picking individual investments – we do that for you.

  • Tax free growth
  • No upfront costs
  • Globally diversified, actively managed portfolios to meet your goals

With investments, your capital is at risk

What is a Stocks & Shares ISA

A stocks & shares ISA is a tax efficient investment account, which means you don’t have to pay income tax or capital gains tax on money you earn from your investments made through the ISA (Individual Savings Account).

There is a limit to how much money you can put into an ISA in each tax year, which is called ‘ISA allowance’. The ISA allowance for the 2020/21 tax year is £20,000. You can invest it all in a stocks & shares ISA, or spread it across other types of ISA, such as a cash ISA, innovative finance ISA or, if eligible, a lifetime ISA. But you can only have one ISA of each type and you must stay within the total limit of £20,000.

Tax free growth

Contribute up to £20,000 each year and transfer existing ISAs to enjoy tax free growth

Simplicity

No need to declare ISAs on your tax return

Accessible

Invest for the long term with the peace of mind to take money out if you need to

Why choose our ISA

It is a low-cost way for you to invest your capital, or make regular savings, taking into account your investment objectives and the risk you are willing and prepared to take. You don’t have to worry about the headache of picking individual investments – we do that for you. You benefit from our investment expertise to meet your financial goals in line with your ethical values.

Leaf solid

Sharia compliant & socially responsible

Contribute up to £20,000 each year and transfer existing ISAs to enjoy tax free growth

Active investment management

You investment portfolio is actively managed by our experienced investment team

24/7 secure online access

View your investment portfolio online

How does it work

1

Discover your investor profile

We ask you a number of questions to understand your investment objectives and risk profile

2

Choose your account

You will decide what account is suitable for you

3

View your recommended portfolio

We will recommend a globally diversified investment portfolio that best fits your needs and objectives

4

Complete your online application

You will be requested to share necessary details, including details of existing accounts you are transferring

5

Fund your account & let us manage your investments

Login in to your account to transfer lumpsum or setup regular contributions. Once your account is funded, our Investment Manager will buy investments and actively manage your investment portfolio

6

Keep your investments on track

Login into your account to complete the risk assessment after 180 days to ensure your investments are on track

Our online advice service provides simplified investment advice which means it is limited to the specific amount of money you are investing through this service. This service may be suitable if you have a minimum of £1,000 available to invest over a minimum period of 3+ years. For those investing £50,000+ or those who wish to receive professional financial advice on existing investment arrangements should consider our comprehensive personal advice service.

Portfolio and performance

At Simply Ethical we aim to help clients make their wealth work for them. We are keen to see the value of your investments go up in the long term so that you meet your life objectives that are important to you – Whether that’s saving for a deposit on your first home, paying kids university fees or provision for your retirement years.

Our online advice service consist of seven investment portfolios with Defensive being the least risky portfolio and Progressive Growth being the highest risk portfolio. The 5-year average annual investment return for the period of March 18 2016 to March 19 2021 range from 3.2% to 12.8%, depending on the portfolio.

Average annual investment return over 5 year period

Note: Back-tested data used for performance before 30/05/2019. Actual performance data shown from this date onwards. Performance as at 19/03/2021. Performance figures are shown in Pound sterling (GBP). The returns do not account for the effects of inflation or tax or adviser charges. Please remember past performance is not a guide to future returns. As with any investment, your capital is at risk.

Cash
11.6%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
73.4%

Franklin Global Sukuk Fund
Oasis Crescent Global Short Term Income Fund
Oasis Crescent Global Income

Global Equities
10%

iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious metals
5%

WisdomTree Physical Gold

Risk profile: You tend to prefer investment portfolio with low risk of a decline in value. You are prepared to accept only a limited risk of loss to your capital. As a result, you will mostly invest your money in short term money market instruments and bonds. You are prepared to take very small level of risk with your capital for the prospect of modest growth than that obtainable from cash in bank account and short term money market instruments. A small proportion of portfolio may be invested in growth assets like property, equities and commodities. This adds an element of risk to your investment but aims to provide some investment returns in the long term. You would like to maintain the real value of your investments against inflation. However, you accept that inflation may erode purchasing power of your capital overtime, particularly if inflation is high.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
68%

Franklin Global Sukuk Fund
Oasis Crescent Global Short Term Income Fund
Oasis Crescent Global Income

Global Equities
25%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
5%

WisdomTree Physical Gold

Risk profile: You are conservative with your investments. However, you do recognise that in order to achieve higher returns, some risk must be incurred and you are prepared to tolerate some fluctuation and volatility in your investment. You are likely to be concerned about the possibility of losing money on your investments, but you do not want to completely ignore the possibility of making higher returns than are offered by bonds and short term money market instruments. You will have your money invested mostly in bonds and short term money market instruments. Your portfolio may have a sizable proportion invested in growth assets like property, equities and commodities.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
58%

Franklin Global Sukuk Fund
Oasis Crescent Global Income

Global Equities
33.5%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
6.5%

WisdomTree Physical Gold

Risk profile: You are relatively cautious with your investments. You realise that risky investments are likely to be better for longer term returns. You want to try to achieve a reasonable return, and are prepared to accept some risk in doing so. You may have over half of the portfolio invested in bonds and short term money market instruments. The rest of the portfolio may be invested in growth assets like property, equities and commodities. You are prepared to tolerate relatively modest yet frequent fluctuations in value.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
46%

Franklin Global Sukuk Fund
Oasis Crescent Global Income

Global Equities
44.5%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
7.5%

WisdomTree Physical Gold

Risk profile: You are balanced in your attitude towards risk. You don’t seek risky investments but you don’t avoid them either. You understand that you have to take investment risk in order to be able to meet your long term goals. You are likely to be willing to take risk with part of your assets. You are prepared to accept fluctuations in the value of your investments to try and achieve better long term returns. You are prepared to accept small losses, particularly in the short term, to gain higher returns than simply investing in low or medium risk investments. You may have around half of your portfolio invested in a balanced mix of lower and medium-risk investments such as bonds and the other half invested in higher-risk investments such as property, equities and commodities. You are prepared to tolerate frequent and at times significant fluctuations in value.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
33%

Franklin Global Sukuk Fund

Global Equities
55%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
10%

WisdomTree Physical Gold
WisdomTree Physical Precious Metals

Risk profile: You have above average tolerance to risk. You are relatively comfortable with investment risk. You aim for higher long term returns and understand that this can also mean some sustained periods of poorer performance. You are willing to place reasonable emphasis on growth investments like property, equities and commodities and you are aware that these are liable to fluctuate in value. Typically, equities may compose over half of your investment portfolio. You are prepared to accept large fluctuation in value to try and achieve better long term returns.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
13%

Franklin Global Sukuk Fund

Global Equities
72.5%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
12.5%

WisdomTree Physical Gold
WisdomTree Physical Precious Metals

Risk profile: You have higher tolerance to risk. You are relatively comfortable with investment risk and willing to take risk with a large proportion of your assets. You aim for higher long term returns and understand that this can also mean some sustained periods of poorer performance. You are willing to place emphasis on growth assets like property, equities and commodities and are aware that these are liable to fluctuate in value. Your portfolio will have higher weighting towards growth assets and very low levels towards bond. Typically, equities and commodities may compose over two thirds of your investment portfolio. You are prepared to accept significant fluctuation in value to try and achieve better long term returns.

Cash
2%

Cash is the amount of money that you need to leave in the account to deal with transactions and management fees.

Islamic Global Bonds/Sukuks
0%
Global Equities
83%

HSBC Islamic Global Equity Index Fund
iShares MSCI World Islamic
iShares MSCI Emerging Markets Islamic

Commodities/Precious Metals
15%

WisdomTree Physical Gold
WisdomTree Physical Precious Metals

Risk profile: You are very comfortable with investment risk. You aim for high long term investment returns and do not overly worry about periods of poorer performance in the short to medium term. Your portfolio is likely to have high market volatility and carries higher risk of potential loss of capital. You would like to take advantage of growth assets like bonds, equities and commodities with the prospect of good long term returns. As a result, your portfolio will exclusively invest in growth assets. Your portfolio can be subject to the full extent and frequency of stock market fluctuations.

Our fees

We only charge an annual fee that is tiered within bands as follows:

For the first £50,999

0.75%

per year

Between £51,000 and £100,999

0.70%

per year

Between £101,000 and £250,999

0.65%

per year

Between £251,000 and £1,000,000

0.40%

per year

Over £1,000,000

0.25%

per year

  • No set-up fees
  • No trading or dealing fees/costs
  • No transfers or withdrawal fees/ Free transfers in and out
  • No exit fees

Fees and charges will be deducted from your account at the end of each month in arrears.

Each investment portfolio consists of collectives investments including funds and ETFs, which have their own annual management charges. On average, for a given portfolio the overall underlying fund fees are estimated to be approximately between 0.54% and 0.70% per annum. The underlying charges for a portfolio may change from time to time, depending on the underlying investments. Before you sign up, our online application will share all the charges so that it’s crystal clear.

Transfer to us

Step 1

Complete application

This should take no more than 15 minutes if you have all of your information to hand*

Step 2

We’ll contact your current provider

Upon receipt of your application we will contact your current provider and make neccessary arrangements. The process normally takes up to 30 days but can take up to 6 weeks depending on your current provider.

Step 3

Access your account

Once your money has been transferred to your Simply Ethical account, we will let you know by email.

Step 1

Login to your personal dashboard

Once you are logged in, please click on ‘Deposit & Withdraw’, then choose the ‘Account Transfer’ section and complete the form with transfer details.

Step 2

We’ll contact your current provider

Upon receipt of your application we will contact your current provider and make neccessary arrangements. The process normally takes up to 30 days but can take up to 6 weeks depending on your current provider.

Step 3

Access your account

Once your money has been transferred to your Simply Ethical account, we will let you know by email.

*What you’ll need to hand:

  • Your existing plan number(s)
  • Details of your existing investment or pension provider(s), including provider name and address
  • Your bank details
  • Your National Insurance Number

Should you need any help, please contact us.

Frequently Asked Questions

Our online investment advice service simply asks you a number of questions to understand your investment objectives and risk profile to then allocate you to a suitable portfolio of investments that are managed by us on an ongoing basis as your appointed Discretionary Investment Manager. We simply provide electronic investment portfolio recommendations using the information you have provided us. It is therefore extremely important that you provide us with accurate information about your personal circumstances.

This service provides simplified investment advice which means it is limited to the specific amount of money you are investing through this service. The service does not advise on suitable account type (GIA, ISA, JISA, Pensions) to hold your investment portfolio. Moreover, the online advice service does not offer a full or broad assessment of your financial circumstances or consider any existing arrangements (investments, ISAs or pensions) you may have. The service may suit those who wish to self serve and have decided that they do not want a full advice service.

This online service may be suitable if you have a minimum of £1,000 available to invest over a minimum period of 3+ years. For those investing £50,000+ or those who wish to receive professional financial advice on existing investment arrangements should consider our comprehensive personal advice service.

Individual Savings Account (ISA) is a tax free savings vehicle, which means that the money you put in will grow tax free (with the exception of tax credits on dividends). Your returns will be completely free of income or capital gains tax and do not need to be declared on your tax return. ISAs are available to people who are resident in the UK for tax purposes.

While there are four types of ISA’s, we only offer Stocks & Shares ISA

This account may be right for you if you seek:

  • Potentially higher returns than a cash deposit account.
  • Comfortable with investment risk, including possible loss of capital.
  • Investing for long term.
  • Tax efficient saving plan.

For Simplified Advice Online service, the ISA Manager is Fundment. Fundment is approved by HMRC to act as ISA Manager.

To open an account, you must:

  • Be at least 18 years of age.
  • Resident in the United Kingdom.
  • Not contribute to another stocks & shares ISA during the tax year.
  • Not exceed the annual contribution limit during tax year

You can’t open an account together with someone else, or on behalf of someone else.

You are able to invest up to £20,000 in a Stocks & Shares ISA or, if you have subscribed elsewhere to another type of ISA in the current tax year, you may subscribe the balance in a Stocks & Shares ISA. In subsequent years the allowance may alter.

You can withdraw cash from your Stocks and Shares ISA and replace it in part or in full without the replacement counting towards the annual ISA subscription limit providing the replacement is made into the same account and in the same tax year as the withdrawal.

You may transfer some or all of your money from another type of ISA, without affecting your current tax year limit.

Remember, tax depends on your individual circumstances and may change in the future.

Broadly, the tax advantages are as follows:

  • You don’t have to pay any capital gains tax on profits made from share price increases. Invest outside an ISA and any profits made above the annual capital gains tax allowance (£12,300 for 2020/21) would be subject to tax at 10% for basic rate taxpayers and 20% for higher rate and additional rate taxpayers on shares. You make a profit when you sell a share for more than you bought it for.
  • You don’t have to pay any tax on dividends paid within ISA account. After using the dividend allowance, which is currently £2,000 (2020/21) the basic, higher and additional rate taxpayers have to pay tax at 7.5%, 32.5% and 38.1% respectively.
  • You do not have to include any information about your ISAs in your tax return.

You cannot use any losses in your ISA to set off against any gains elsewhere.

Fundment is the platform provider selected by Simply Ethical to deliver its Online Advice service. Fundment will hold your money as Client Money in accordance with the FCA Rules which, among other things, require Fundment to hold your money in a designated client bank account, in compliance with the FCA Rules. This means, amongst other things, that the Client Money Bank will hold your money in a designated client bank account which is an account kept separate from Fundment’s own funds.

No interest is paid on cash.

Once you have completed the account signup process, you can make a deposit through your secure personal dashboard.

Step 1: Please log into your personal dashboard and then click ‘Deposit & Withdraw’.

Step 2: Choose ‘Your goal’ to pick the goal you want contributions to go to.

Step 3: Then, choose ‘Deposit’ for one-off payment or choose ‘Recurring deposit’ for regular contributions.

For one-off or initial contributions, you can make a bank transfer. The relevant bank details and a reference number will be provided, so that you can make payments by instructing your bank.

For regular payments, you can set up a direct debit.

Upon successful payment, the funds will be added to your balance and be available for investment.

You are limited on how many ISAs you can subscribe to in each tax year. You can only put money into one Cash ISA and/or one Stocks and Shares ISA and/or one Lifetime ISA and/or one Innovative Finance ISA and you must make sure you don’t exceed the total ISA allowance for the tax year. The current tax year’s (2020/21) annual ISA allowance is £20,000.

Yes, but we only accept transfer in the form of cash. Cash transfer means that your current investments will be sold and the cash transferred to your account with us.

You can transfer:

  • Your current year ISA subscriptions and/or
  • All or part of ISA subscriptions made in previous tax years

If your ISA contains current year subscriptions only, the entire account must be transferred. Alternatively, you could, for example, transfer your savings from the year before to the Stocks & Shares ISA Account and leave your current tax year savings where they are.

To transfer your existing account, please complete our online account opening application.

We only accept transfer in the form of cash.

Cash transfer means that your current investments will be sold and the cash transferred to your ISA with us.

Please be aware that a cash transfer means:

  • You may lose out on investment growth while your investment is not invested during the transfer period.
  • You may incur charges when you purchase new investments to be held within your account with us.
  • You will not have access to your ISA until such time as the transfer is complete.

No, when you transfer previous year’s ISA to us, as long as they have come to us directly from your current provider, they will not impact your current year allowance. However, please confirm with your existing provider before placing any transfer.

Yes, you can transfer an account held with us or any other third party which is in a General Investment Account into an ISA.

You can once we have the relevant documentation from the new provider.

Yes, you can set-up a one-off or regular withdrawal from your ISA account. We do not charge for withdrawal and transactions charges of selling investments in order to meet your withdrawal request.

The Fundment ISA is flexible ISA which means any payment withdrawn during the tax year may be paid back-in during the same tax year without it counting in your annual allowance for that tax year. We will normally treat payment into your ISA as repayment of previous withdrawal of the same tax year.

For security reasons, we only make withdrawal payments to your nominated bank account. We do not pay withdrawals to third parties other than to your estate in the event of your death.

On receipt of a certified Death Certificate by Fundment (ISA provider), all funds will be moved to cash at the date of notification, and on-going adviser charges stopped. Death claims for all products, will only be settled after probate or Letters of Administration is/are received by Fundment and to the payee as instructed on a claim form approved and signed by the Executors or Administrators.

Previously notified nomination of beneficiaries instruction will take precedence. We will continue to invest monies until such time as a Death Certificate is received.

The amount you get back is not guaranteed and depends on a number of factors, such as:

  • How much you invested
  • The length of time you invested for
  • The performance of the investments
  • How much our charges are
  • The amount of any withdrawals you have taken

You are able to change your mind within 14 days of opening your account and receiving your illustration document.

Start investing with Simply Ethical

Cost-efficient investment advice at the touch of a button, full visibility of your investments, and an investment adviser on the phone.