Aberdeen Standard Investments has teamed up with The Big Issue to launch a platform which only invests in ethical funds.
The platform, called The Big Exchange, has received £1m of funding from investment houses and will offer funds by Aberdeen Standard Investments, Columbia Threadneedle, Alliance Bernstein and Alquity.
Retail investors will be able to invest directly in the platform, without the assistance of a financial adviser.
Campbell Fleming, head of distribution at Aberdeen Standard Investments, said: "Low cost, well-managed impact funds can help people do better with their savings, while doing good for society and the planet without sacrificing financial returns.
"That’s why we’re launching The Big Exchange. We can take up to 12 firms as founders, who will have exclusive rights in the first year to market their impact funds and help shape The Big Exchange.
"We are close to closing our initial round, thanks to an overwhelming level of interest and support from the investment industry."
FNZ will provide the technology for the platform, which will have a mobile-first interface and educational content.
Investors will be able to track their portfolio's social impact as well as its performance and the each user creates will be recognised and rewarded through a digital social passport and token system.
Nigel Kershaw, chairman of The Big Issue Group, said: "Central to The Big Exchange is that investors can understand the positive difference made by their choices. Our unique approach will show investors through clear indicators how funds support the [UN's] Sustainable Development Goals and align with our commitment to people and the planet."
It is expected a rolling launch programme to the public will start in early 2019 and the service will eventually be expanded beyond impact investing to "ethical financial services".
Francis Klonowski, an adviser at Klonowski and Co in Leeds, said he had only ever had two clients who were interested in ethical investment products and both sold them when they began to perform poorly.
david.thorpe@ft.com
