British fund manager Schroders has rolled out a new Shariah-compliant fund that serves as a diversified investment strategy.
Dubbed Islamic Global Equity Fund, the new vehicle integrates Shariah Law compliance with multi-factor investing.
Managed by the Schroders Systematic Investments (SSI) unit, the strategy incorporates a multi-factor investment approach.
It looks to outperform the Dow Jones Islamic Market World Index in three to five years.
Schroders UK Intermediary head Doug Abbott noted that the Shariah-compliant investors have been underserved by the market.
He said: “Schroders is uniquely positioned to offer our clients access to a global investment universe comprising of over 2,600 stocks that have been rigorously screened to ensure adherence with Shariah Law.
“We worked closely with an external Shariah Advisor to develop this fund and it has also been certified by an independent external Shariah Supervisory Board.”
The fund also offers dividend income purification, under which any non-Shariah compliant dividend income will be donated to charity.
Schroders Systematic Investments head and lead manager of the fund Ashley Lester said: “Multi-factor investing relies on scientific expertise, and therefore our mission for investors is to deliver an approach to factors that is scientific, forward-thinking and evolving as our knowledge progresses.
“I am confident that the SSI team’s extensive expertise in creating differentiated and diversified factor portfolios will help us unlock additional sources of return for investors looking for a Shariah-compliant fund solution.”
In July this year, Schroders introduced six risk-aligned funds supporting active and passive investments.
The same month, Singaporean bank DBS joined forces with Schroder Singapore to unveil a new multi-asset fund, which aims to support retired investors in decumulating assets.