The National Employment Savings Trust has widened its choice of funds for pensioners by developing a Sharia-compliant global equity fund.
Heather Tilston, spokesman for the Nest Corporation, said the organisation was looking for a manager for the fund.
It is estimated the fund will attract 200,000 of the 2.5m Muslims living in the UK who fall within the Nest’s target group of workers earning up to £35,000 and currently do not have a workplace pension.
Ms Tilston said: “Sharia-compliant investing is still a relatively new industry in the UK but a recent survey of FTSE 100 companies’ direct contribution schemes shows that almost one-quarter of schemes offer a Sharia-compliant fund option.”
The Nest scheme already has a socially responsible fund and it will continue to explore the market in Islamic investment products to evolve the offering to meet the risk and return expectations of its members.
Ibrahim Thompson, Islamic finance adviser for London-based Radcliffe & Newlands, said: “Having a Sharia-compliant fund available as an investment option open to everybody could help Islamic finance become part of the everyday financial landscape, which has to be a good thing.
“The whole question of inclusion is important and I am hopeful this will give those Muslims who are presently excluded from pension planning because of the limited investment choices a viable option.”
source: FT Adviser