The supplier mentioned it had partnered with HSBC Asset Management and Franklin Templeton to launch the Standard Life Sharia Universal Strategic Lifestyle Profile and create a strategic way of life profile comprising two funding funds to mirror distinct phases of the financial savings journey.
The Standard Life Sharia Growth Pension Fund will purpose to extend the worth of the pension on a Sharia-compliant foundation when the saver is greater than 15 years from retirement earlier than switching over time to the Standard Life Sharia at Retirement Pension Fund, which introduces a sukuk fund within the run-up to retirement.
Standard Life interim managing director of office and retail intermediated Emma Furlonger mentioned: “This is a major milestone in our ongoing improvement of our way of life options that meet particular necessities of members.
“Our Sharia-based solution caters to those who want to invest in line with their values and beliefs, without compromising on the prospect of long-term growth. In adhering to Sharia Law, we have sought to strike a balance between appropriate investment risk and good outcomes to help savers secure their income in retirement.”
To assist its strategy, Standard Life has appointed an exterior Sharia adviser – iConsult Africa, to supervise the event of its Sharia proposition and to seek the advice of on the continued Sharia-compliance of the approach to life profile being provided to savers.
Standard Life mentioned a Sharia supervisory group has been particularly established to supervise sharia compliance components of inner investments processes – including that Ziyaad Mahomed, an affiliate professor of Islamic finance and chair of iConsult Africa, has been appointed to chair this group.
The supervisory group will complement the committees of the exterior fund managers to assist end-to-end Sharia compliance of the answer.
Mahomed mentioned: “Offering a Sharia-compliant pension investment option is an important statement of inclusion. The Sharia principles of fairness and transparency are finding powerful resonance with demand for Islamic finance options growing in the UK. The increasing provision of Sharia-compliant options across the pension sector is to be welcomed as it provides the opportunity for Muslims to invest for retirement without having to compromise on beliefs, while also finding wider appeal among other investors too.”
The Standard Life Sharia Growth Pension Fund invests within the SL HSBC Islamic Global Equity Index Pension Fund – a world fairness fund that invests in corporations that meet Sharia ideas.
The SL Franklin Global Sukuk Pension Fund underpins the Standard Life Sharia at Retirement Pension Fund, with funding in Sharia-compliant sukuk certificates structured to get rid of cost of curiosity and get rid of possession on behalf of the investor. It invests throughout the Middle East, North Africa and South Asia, each in firm and authorities supported sukuk.
Both underlying investments are knowledgeable by AAOIFI requirements, and the Sharia supervisory mechanism of the person funding supervisor.
In addition to the Sharia Universal SLP, Standard Life gives extra Sharia-compliant choices for purchasers to self-select with a spread of funds – SL Franklin Global Sukuk Pension Fund; SL HSBC Shariah Multi Asset Pension Fund; and SL HSBC Islamic Global Equity Index Pension Fund.
The announcement comes after Franklin Templeton launched two extra funds in its Shariah vary in response to rising demand from European buyers for Shariah-compliant funding options.
It additionally follows the transfer by Verity Trustees, the company trustee of The Pensions Trust, so as to add a Sharia-compliant mounted earnings fund to its outlined contribution (DC) vary. The trustee mentioned it had added the HSBC Global Sukuk UCITS ETF to its members’ current DC self-select fund choices.