Columbia Threadneedle Investments has launched a Shariah-compliant strategy in partnership with London-based bank Gatehouse Financial Group, the company has announced.
The Threadneedle (Lux) – Gatehouse Shariah Global Equity fund, will be managed by Simon Haines and will be supported by Columbia Threadneedle’s Global Equities team based in London.
The new fund will invest in between 50-80 Shariah compliant stocks globally in accordance with the Shariah Guidelines, as determined by the Shariah Supervisory Board and Gatehouse as the Shariah compliance advisor.
Columbia Threadneedle has appointed IdealRatings as the Shariah stock screening provider to the fund. IdealRatings is set to provide research that expands upon that undertaken by Islamic index providers and permits asset managers to tailor portfolios to the Shariah guidelines relevant to their products.
The fund will aim to outperform its benchmark, the MSCI Islamic M-Series index, by 2% per annum over a 3-year rolling period.
Commenting on the launch, Haines said: ‘Integral to what defines quality in the context of the Shariah fund is our belief that well-governed companies are better positioned to manage risks and challenges inherent in business and to capture opportunities that should deliver sustainable growth and returns over time. Effective stewardship benefits companies, our clients and the economy as a whole.’