Nest Pension Sharia Fund

Investment Questions and Chats
#1

Assalamualaikum

I was having a look at sharia complaint pension funds. One that is quite famous is the Nest Sharia Fund.

Here is a list of all of the companies they’ve invested into. Are all of these companies sharia compliant?

https://transparency.platform.tumelo.com/nest/30123f5a-acfd-47d7-91ed-4e8b1e54e4d9

If not, roughly how much of this should I give away to purify the amount I recieve at the end?

Jazakallahu khaira

#2

I’ve put a few stock names into the IFG stock screener.

At least 15 of the stocks are non-sharia compliant. Is there anyway the money invested into a fund like this with this many non-compliant stocks can be purified?

Jazakallahu Khaira

#3

Wa alaykum salaam,

It would be best to raise this with Nest, and they will raise it with the Shariah board. They will give you the most detail and information based on the criteria and screening that was performed.

1 Like
#4

Jazakallah for the quick response

#5

They responded.

Thank you for getting in touch regarding our Sharia fund. Nest allocates 100% of the Sharia Fund to global equities via the HSBC Islamic Global Equity Index Fund. The Fund aims to track the performance of the Dow Jones Islamic Market Titans 100 Index (the Islamic Index). HSBC’s independent Sharia Committee consists of two Islamic scholars (Sheikh Nizam Mohammed Saleh Yaquby and Sheikh Dr Mohamed Ali Elgari) who oversee investment in the fund to ensure compliance with Islamic principles. The Sharia Committee monitors the Fund throughout the year and issues an annual Sharia certificate on the Fund’s compliance with Sharia principles. The HSBC Islamic Global Equity Index Fund adopts a full replication strategy of the Islamic Index; it is passively managed and aims to invest in the shares of the companies in the same proportion as in the Islamic Index. The shares are selected by filtering the Index universe through screens for business activities and financial ratios to remove stocks that are not Sharia compliant. The Fund only invests in shares of companies that meet Sharia compliance principles as interpreted or approved by the Sharia Committee.