Argyll Investment Services, a Guernsey-based fund manager and promoter, has launched a trio of Shariah compliant funds in a protected cell company structure.
World Shariah Funds PCC is listed on the Channel Islands Stock Exchange and contains three investment strategies from three different fund managers; Malaysia’s Reliance Asset Management, CIMB Principal Asset Management Berhad, a Malaysian and US joint venture, and Markaz of Kuwait. The three fund groups have combined assets under management of more than US$13bn.
Companies held within the three funds are excluded from dealing in alcohol, tobacco and pornography, among other industries, and are also not allowed to have highly leveraged balance sheets.
The funds aim to outperform their relevant Islamic equity indices.
Stuart Place, marketing director for Argyll, said: “Following the first phase of the world credit crisis, investors are more wary of holding heavily indebted companies in their portfolios. The filter process for the World Shariah Funds eliminates such businesses as non-compliant under Shariah principles.
“As the next phase pans out, less leveraged companies will be less dependent on bank finance and should have more robust balance sheets; an attractive proposition in the search for value.”