Verity Trustees has added a Shariah-compliant fixed income fund to its DC self select fund range.
It has added the HSBC Sukuk UCTIS ETF to its members fund options, on the advice of TPT Investment Managers, part of TPT Retirement Solutions.
Verity Trustees says this complements its existing Islamic finance options, which includes a global equity fund.
This new fund primarily invested in sukuk, Shariah-compliant fixed income securities that do not pay any interest. Instead, investors receive periodic income generated by the underlying assets.
This HSBC Sukuk fund has achieved positive absolute investment performance since its inception in January 2023 and offers increased diversification and a different risk profile to those Muslim pension savers who want their investments to be Shariah-compliant.
Meanwhile Franklin Templeton has launched two new funds as part of its range of Shariah-compliant investment options.
The asset manager which has 35 years of experience investing in Islamic markets has launched a ultra short duration sukuk fund, alongside a new global equity fund.
It FTSF Franklin Global Sukuk Ultra Short Duration Fund aims to provide capital preservation and liquidity, while seeking to maximise total returns and income. This fund invests in a highly-liquid portfolio of short-dated sukuk, supranational instruments and Shariah-compliant deposits. It is aimed at institutional investors and pension schemes. This fund was launched at the end of April and is managed by Mohieddine (Dino) Kronfol, the firm’s CIO global sukuk and head of Middle East fixed income.
Meanwhile its FTSF Franklin Shariah Systematic Global Equity Fund aims to deliver long term capital appreciation through a highly liquid, actively managed global equity strategy, consistent with Shariah principles.
This fund, which is expected to launch later in May will be managed by Chris Floyd, portfolio manager and Brett Risser, head of quantitative equity portfolio management at FTIS.
Franklin Templeton head of EMA and Americas (ex-US), Matthew Harrison says: “Franklin Templeton is well recognised for its Sukuk capabilities. As one of the few global Shariah-compliant asset managers, we have investment professionals based in key Sukuk issuance hubs, including Kuala Lumpur, Dubai and Riyadh, supported a global network of more than 200 investment, trading and risk professionals.”
