Scottish Widows Investment Partnership (SWIP) has launched an Islamic Global Equity fund into the retail market, giving the UK's two million Muslims a stockmarket investment option that falls within the guidelines of their religious beliefs.
The fund, which is managed by the groups' global equities investment director, Suhail Arain, will invest in a portfolio of global stocks that follow Islamic principles. This means they have to adhere to several criteria, such as not investing in products that are involved in the sale or production of pork and liquor; non-Islamically structured finance, investment or life insurance business, or any interest-related activity; and all media that contains pornographic material.
SWIP's research team will identify a portfolio of global stocks for the fund, the majority of which will be derived from the FTSE Global Islamic Index. In order to ensure these stocks all fall within the confines of Islamic law, a Shariah advisory board will provide guidance.
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