Standard Life launches Sharia-compliant pension option
Standard Life has launched a fully Sharia-compliant pension option, the Standard Life Sharia Universal Strategic Lifestyle Profile, expanding its range of responsible investment options for members of its workplace pension schemes.
Available specifically to workplace scheme members, the new strategy adheres to the principles of Sharia Law, creating a pension default with clear ethical boundaries and Sharia certification.
Standard Life has partnered with major fund managers – HSBC Asset Management and Franklin Templeton, both with over 20 years’ experience of Sharia-compliant investing, to create the strategic lifestyle profile, which comprises two investments funds to reflect distinct phases of the savings journey.
The fund seeks to increase the value of the pension on a Sharia-compliant basis when the saver is more than 15 years from retirement, before switching over time to the Standard Life Sharia At Retirement Pension Fund, which introduces a sukuk fund in the run-up to retirement.
The firm also appointed an external Sharia adviser – iConsult Africa – to oversee the development of its Sharia proposition and to consult on the ongoing Sharia-compliance of its Sharia Strategic Lifestyle profile.
Emma Furlonger, managing director of Workplace and Retail Intermediated (Interim), at Standard Life said: “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.”
A Sharia Supervisory Group has been specifically established to oversee sharia compliance elements of internal investments processes. Professor Ziyaad Mahomed, an associate professor of Islamic finance, law and social finance and chairman of iConsult Africa, has been appointed to chair this group.
See also: The rise of Sharia investing in 2022