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Junior ESG

Junior ESG ISA

Our Junior ESG ISA gives you a way to save in a modern, ethical fund, in a flexible way to potentially outperform a Cash ISA over the longer term.

You can invest in our Junior ESG ISA in addition to your Cash ISA each year as long as you don’t exceed the annual ISA limit set by the government (£9,000 in the 2020/21 tax year).

Main Product Features

  • Flexible

    There is no fixed term of years (although you should consider it a medium to long term investment, typically 5 years or more) and the proceeds become available when the child reaches the age of 18.

    There is no set premium – you can pay in regularly by monthly direct debit of £10 or more and / or invest lump sums at any time up to the annual Junior ISA limit.

    You can transfer Junior ISAs from other providers to us or transfer your Red Rose Junior ESG ISA to another provider.

  • Tax free

    Our ISA provides a tax free return when you cash in, transfer to another provider, or on death.

  • More about the fund

    We all hear and read about issues facing society on a daily basis, whether it is looking
    after our precious planet and its resources, the treatment of employees and diversity
    policies in companies, how some companies have abused their power or disregarded their
    impact on communities and the environment (for example some global car makers falsifying
    diesel emission figures and clothing firms using slave labour).

    This fund prioritises its investments towards companies that show good practice in these
    3 areas – Environmental, Social and Governance - and reduces investment in companies
    demonstrating poor performance in these areas. Because of the size of the funds under
    management, this is a positive way to influence companies to improve their ESG behaviours.

  • Where does the Fund invest?

    The Fund is managed by a specialist team at Legal and General. It invests in global developed-market equities, mainly large companies in a variety of countries and sectors, including Communications and Technology, Consumer, Industrials, Financial Services and Commodities.

    Each firm is given an ESG score, based on the following factors:

    Environmental - Environmental issues relating to our planet, such as climate change, deforestation, resource usage and recycling.

    Social - Social issues centre on companies having the right culture including treating all workers fairly regardless of gender, race, ethnicity, sexual orientation etc.

    Governance - Governance involves ensuring that companies are run properly, balancing the needs of shareholders, all employees, customers and the local community.

    It does not invest in companies whose only activity is coal mining, manufacturers of controversial weapons, or perennial offenders of the UN Global Compact.

    The United Nations (UN) Global Compact is designed to encourage businesses worldwide to adopt sustainable and socially responsible policies in areas of human rights, labour, the environment, and anti-corruption.

Things to consider

You will find more information about the Junior ESG ISA in the Key Information Documents and Key Features Document. Below are some important points that we want you to be aware of:

  • The proceeds cannot be accessed until the child is 18, although it can be transferred to another provider at any time. You could get back less than you have invested, particularly if the transfer is in the early years of the Junior ESG ISA commencing
  • When the child reaches 18, unless the Plan is closed and the funds withdrawn, the Junior ESG ISA will automatically becomes an Adult ESG ISA
  • This is a medium to long term investment (5 years or more)
  • Please note that this is a risk investment – there is no guarantee that you will get your money back. The value of your Junior ESG ISA can go down in value as well as up, and is based upon the performance of the underlying investments in the ESG Fund
  • Inflation will have an effect on the future purchasing value of your investment
  • HMRC could change the tax status of ISAs in the future

Product Comparison Table

Children's Savings Plan

Child Trust Fund

Junior ISAs
Min prem £5 £10 £50 initial
then £10pm
Max Prem £25
(a taxable version is available if a higher premium is required)
for the 2020/21 tax year
for 2020/21 tax year
Min age at outset Birth Born between 1 Sept 2002 and 2 Jan 2011 Born before Sept 2002 and still <18  or after 3 Jan 2011
Max age at outset 11 See above Born before Sept 2002 and still <18  or after 3 Jan 2011
Min term (years) 10
(must be 16 or older when proceeds taken)
but should be considered a medium to long term plan (5 years or more)
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30 To age 18 To age 18
when proceeds can be taken, or it becomes an 'adult' ISA
Fixed term Yes No
but see above
but see above
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
can add lump sums, amend or stop regular payments and start again later
Life cover Sum assured plus all bonuses added to date of death 101% of the CTF value at date of death 101% of the ISA value at date of death
Transferable No Yes
can be transferred from or to another provider
can be transferred from or to another provider