Philip Smith: Meeting member demand for a widening of Islamic investment options
Verity Trustees, the corporate trustee of The Pensions Trust, has added a Sharia-compliant fixed income fund to its defined contribution (DC) range.
The trustee said it had added the HSBC Global Sukuk UCITS ETF to its members' existing DC self-select fund options.
TPT Investment Management (TPTIM), the asset management arm of TPT Retirement Solutions, advised the board on the appointment.
The fund complements the existing Islamic finance offering within Verity Trustees' self-select fund range, which already includes an Islamic global equity fund to help meet member demand for Sharia-based investments.
Verity Trustees said a Sukuk fund primarily invests in Sukuk, which are Shariah-compliant, fixed income securities that do not pay any interest. Instead, investors receive periodic income generated by the underlying assets.
It said the latest fund option will bolster the range of investment opportunities available to DC members looking to take a more active role in managing their retirement assets.
Commenting on the launch of the fund, TPT Retirement Solutions DC director Philip Smith said: "We're pleased to broaden out VTL's Self-Select range with a Sharia-compliant fixed income option that meets member demand for a widening of Islamic investment options. The Sukuk fund enhances the savings options available to DC members, and provides greater flexibility to build diversified, values-aligned portfolios."
