Northern Trust Asset Management has launched a Shariah-compliant equity index strategy designed to meet the needs of institutional investors across the Middle East, Southeast Asia, and the United Kingdom.
The strategy builds on NTAM’s experience of Shariah-compliant investing where it currently manages US$1.2 billion in the MSCI World Islamic M-Series Index, via segregated mandates.
Features of the NT World Islamic Equity Index strategy include:
- Shariah Compliance: The fund operates under a dual-layered Shariah governance framework. The underlying investment universe is certified as Shariah-compliant by MSCI, while an independent Shariah Supervisory Board provides ongoing oversight, quarterly audits, and annual certification. This ensures strict adherence to Islamic finance principles at both the index and fund levels
- Benchmark: The fund tracks the MSCI World Islamic M-Series Index, offering global exposure while maintaining rigorous Shariah screening
- Fund Structure: Irish Common Contractual Fund (UCITS), providing flexibility, efficiency, and tax transparency for institutional investors
“We are pleased to bring to market this new strategy to support institutional investors across the international region,” said Pedro Guazo, head of international and responsible investing.
“Combining our experience with the expertise of our global equity index equity team ensures we can offer a compelling Shariah compliant solution.”
