A Shariah-compliant global equity ETF, touted as the world's first, has listed on the London Stock Exchange.
The actively managed Almalia Sanlam Active Shariah Global Equity UCITS ETF (AMAL) aims to achieve capital growth over the medium to long term, while complying with the principles of Shariah investment.
Financial services group Almalia chose Sanlam Investments UK as the fund manager of AMAL, which will base the strategy off its Global High Quality Fund.
AMAL is managed by Sanlam's head of global equities Pieter Fourie and his team of six. Some of the stocks in its holdings are: Johnson & Johnson, Novartis, Mondelez, Samsung and Sanofi.
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Investment screening is conducted in line with Shariah principles overseen by a panel of scholars from Amanie Advisors, an advisory firm specialising in Islamic finance solutions.
Shariah-compliant investing involves following a set of principles that includes not charging any form of interest, promoting accountability, good governance and transparency, and prohibiting investments in businesses that operate areas like gambling, alcohol, weapons and tobacco. The process is also certified by experts or Shariah scholars.
Almalia chief executive Paul-David Oosthuizen said: "We are proud to be the first to launch an actively managed Shariah compliant global equities ETF."
"Our team is passionate about values-based investing and providing innovative solutions to underserved investors. This ETF may be suitable for investors looking for an actively managed strategy with a focus on good governance, as well as those who wish to invest in a Shariah compliant way."