The condensation of Keggin-type polyoxometalates including H3PW12O40, H3PMo12O40, and their Mn(III) and Fe(III) derivatives with nano-structured Amberlite, nanoAmbN(Me)3Cl led to the formation of electrostatically immobilized polyoxometalates on the anion exchange polymer with a size less than ca. 70 nm. The nanocomposites were characterized by FT-IR, XRD, solid state diffuse-reflectance and solution UV–vis spectroscopy, TGA, BET and FESEM-EDX-Mapping and used for the oxidation of sulfides with periodate under aqueous and non-aqueous conditions. In spite of the small difference between the catalytic activity of H3PMo12O40 and H3PW12O40, the corresponding mono-iron and manganese substituted derivatives showed significantly different catalytic activities. Furthermore, nanoAmbN(Me)3@PW11MnO39 showed a high selectivity towards sulfone (72 %), compared to the highly chemoselective formation of sulfoxide in the presence of nanoAmbN(Me)3@PW11FeO39. NanoAmbN(Me)3@PW11FeO39 as the best catalyst of the series was recovered and reused at least six times for the oxidation of methyl phenyl sulfide. The increased catalytic activity of the iron-containing polyoxometalates than that of the corresponding manganese compounds was attributed to the Jahn-Teller distortion around the manganese(III) center.