Argyll Investment Services has launched a group of Shariah funds, domiciled in Guernsey and listed on the Channel Islands Stock Exchange.
The World Shariah Funds are composed of three cells, the Asian Pacific Shariah Growth Fund; the MENA Shariah Growth Fund and the Reliance Global Shariah Fund. They are to be managed by Reliance Asset Management, CIMB Principal Asset Management Berhad and Markaz, and will be administrated by Legis Fund Services.
From a basket of Shariah-compliant companies, a selection is made of those whose earnings are most likely to exceed the market average and the result is an actively-managed portfolio intended to outperform an Islamic equity index.
Stuart Place, Marketing Director at Argyll, said: Following the first phase of the world credit crisis investors are more wary of holding heavily indebted companies in their portfolios. The filter process for the World Shariah funds eliminates such businesses as non-compliant under Shariah principles. As the next phase pans out, less leveraged companies will be less dependent on bank finance and should have more robust balance sheets; an attractive proposition in the search for value.
Peter Niven, Chief Executive of Guernsey Finance, said: It is very good news to see these three Shariah compliant funds being launched from Guernsey. Shariah compliant products are extremely popular at the moment, not least of course to reach out to Islamic investors and this launch from a new fund promoter to the Island will particularly enhance the knowledge and reputation of Guernsey in the Middle East.