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UK bank launches Shariah fund with Columbia Threadneedle

Tom Belger | 7:26 Friday 16th June 2017

Gatehouse Bank and Columbia Threadneedle Investments have launched a Shariah global equity fund.

The Threadneedle (Lux) – Gatehouse Shariah Global Equity Fund has entered the market following regulatory approval from Luxembourg’s financial regulator and the FCA.

The fund is an actively managed equity portfolio investing in between 50 and 80 Shariah-compliant stocks globally in accordance with the Shariah guidelines as determined by the Shariah Supervisory Board and Gatehouse as the Shariah-compliant adviser.

The bank will provide ongoing advice for the fund and monitor activities to make sure it complies with Shariah guidelines.

The fund aims to outperform its benchmark – the MSCI Islamic M-Series index – by 2% per annum over rolling three-year periods.

Simon Haines, global equities manager at Columbia Threadneedle Investments (pictured above), has been appointed to manage the fund.

“Integral to what defines quality in the context of the Shariah fund is our belief that well-governed companies are better positioned to manage risks and challenges inherent in business and to capture opportunities that should deliver sustainable growth and returns over time.

“Effective stewardship benefits companies, our clients and the economy as a whole.

“We look forward to working with Gatehouse to select best-in-class ideas for the portfolio according to Shariah principles in the best interest of our clients.”

All investment ideas under consideration for inclusion within the fund will be assessed with regard to their Shariah compliance and in order to qualify for investment in the fund, each company/stock must have complaint status within the IdealRatings rule book, relevant to the fund’s benchmark.

Fahed Boodai, chairman of Gatehouse Financial Group, said it was excited to be launching the fund alongside Columbia Threadneedle as it was its first true partnership with the asset manager since it acquired a minority shareholding in Gatehouse in 2015.

“The new fund addresses the growing demand from investors seeking greater portfolio diversification, while adhering to Shariah-compliant investment principles.

“We look forward to working closely with Simon and his team at Columbia Threadneedle and building on our existing relationship.”

In February, it was announced that former group managing director of mortgages at Aldermore, Charles Haresnape, would be joining Gatehouse Bank as its new CEO.

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