Muslim financial specialist Parsoli UK is offering a global Islamic equity fund.
The fund is an Oeic and is aimed at Muslim investors in the UK and Europe looking for a financial product that complies with Shari'ah.
Shari'ah means compliant with Islamic law and the Koran. The fund will not invest in any companies that breach these laws and religious guidelines.
A company that complies with Shari'ah cannot have income from pornography, manufacture and distribution of alcohol, gaming or gambling, pork or any other banned meats, conventional banking or conventional insurance.
The fund will invest in 40 to 60 global blue-chip companies which will be chosen by the Shari'ah supervisory board made up of Islamic scholars and Muslim legal experts. If any of the companies makes any investment changes so they have 5 per cent or less of its income from a non-Shari'ah source, part will go to a charity.
This is a unique product as it is the only UK-based Shari'ah fund. The concept is not new as there are 105 Islamic mutual funds. The majority of these are based in the Middle East with others in Islamic areas such as Pakistan and Indonesia. With 2.5 million Muslims in the UK, this product should be attractive to devout Muslims who want to invest but who have been put off by not wanting to break Shari'ah.