Standard Life has launched a new Sharia-compliant pension lifestyle strategy for workplace pension members, expanding its range of responsible investment options.
The new Standard Life Sharia Universal Strategic Lifestyle Profile is designed to offer a fully Sharia-compliant default pension solution, with investment options aligned to different stages of retirement saving.
The strategy includes a growth phase for members more than 15 years from retirement through the Standard Life Sharia Growth Pension Fund, before gradually switching into the Standard Life Sharia At Retirement Pension Fund, which introduces exposure to sukuk investments in the lead-up to retirement.
Standard Life has partnered with asset managers HSBC Asset Management and Franklin Templeton, both of which have more than 20 years’ experience in Sharia-compliant investing, to deliver the underlying investment funds.
Standard Life has appointed external adviser iConsult Africa to oversee development of the offering and ongoing compliance, supported by a newly established Sharia Supervisory Group.
The strategy follows standards set by the Accounting and Auditing Organization for Islamic Financial Institutions and has been certified by independent Sharia advisers.
Standard Life also offers workplace pension members a range of self-select Sharia funds, including global equity, multi-asset and sukuk options.
Standard Life managing director of workplace and retail intermediated (interim) Emma Furlonger says: “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.”
Standard Life Sharia Universal SLP, Professor Ziyaad Mahomed, Independent Sharia Adviser and chair of the Standard Life Sharia Supervisory Group says: “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.”
