Standard Life has partnered with HSBC Asset Management and Franklin Templeton to launch a fully Sharia-compliant pension option for workplace scheme members.
Adhering to the principles of Sharia Law, the Standard Life Sharia Universal Strategic Lifestyle Profile comprises two investments funds: the Standard Life Sharia Growth Pension fund and the Standard Life Sharia At Retirement Pension fund.
The Standard Life Sharia Growth Pension fund invests in the SL HSBC Islamic Global Equity Index Pension fund while the underlying fund in the Standard Life Sharia At Retirement Pension fund is the SL Franklin Global Sukuk Pension fund, which invests across the Middle East, North Africa and South Asia, both in company and government supported sukuk. Both underlying investments are informed by AAOIFI standards and the Sharia supervisory mechanism of the individual investment manager.
The retirement specialist is also providing additional Sharia-compliant options for customers to self-select, namely the SL Franklin Global Sukuk Pension fund, the SL HSBC Shariah Multi Asset Pension fund, and the SL HSBC Islamic Global Equity Index Pension fund.
Standard Life has appointed an external Sharia adviser - iConsult Africa – to oversee the development of its Sharia proposition and to consult on the ongoing Sharia-compliance of its Sharia Strategic Lifestyle profile being offered to savers.
A Sharia Supervisory Group has also been established to oversee sharia compliance elements of internal investments processes. Professor Ziyaad Mahomed, an associate professor of Islamic finance, law and social finance and chairman of iConsult Africa, has been appointed to chair the group with the support of fellow iConsult Africa colleague Mufti Abdul Kadir Barkatullah.
The external fund managers’ committees will also support end-to-end Sharia compliance of the solution in addition to the existing oversight provided by Standard Life’s in-house investment governance teams to maintain the fair treatment of members.
Emma Furlonger, managing director of workplace and retail intermediated (interim) at Standard Life, said: “This is a significant milestone in our ongoing development of our lifestyle solutions that meet specific requirements 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.”
Mahomed added: “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.”
