Marvin OnumonuStandard Life launched a fully Sharia-compliant pension option, called the Standard Life Sharia Universal Strategic Lifestyle Profile.
The new option for workplace scheme members follows Sharia Law and comes with Sharia certification.
Standard Life partnered with HSBC Asset Management and Franklin Templeton to create the lifestyle profile.
The strategy uses two funds, with the Sharia Growth Pension Fund aiming to grow savings when members are more than 15 years from retirement, before gradually moving to the Sharia At Retirement Pension Fund, which includes a sukuk fund.
Emma Furlonger, managing director of workplace and retail intermediated (interim) at Standard Life, said: “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.”
For independent oversight, Standard Life appointed iConsult Africa as external Sharia adviser.
A Sharia Supervisory Group was set up, led by Professor Ziyaad Mahomed, associate professor of Islamic finance, law and social finance and chairman of iConsult Africa.
Mufti Abdul Kadir Barkatullah also joined the group as adviser.
The group reviews internal investment processes and works alongside fund manager committees and Standard Life’s investment governance teams.
The pension option is certified by Sharia advisers.
Mahomed said: “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.”
