Northern Trust Asset Management (NTAM) has launched a new Shariah-compliant global equity index strategy designed to meet the investment requirements of institutional investors across the Middle East, Southeast Asia, and the United Kingdom. The strategy expands the firm’s Islamic investment offerings and provides investors with access to global equity markets while adhering to Islamic finance principles.
The new strategy builds on NTAM’s experience in Shariah-compliant investing, where the firm currently manages approximately US$1.2 billion in assets linked to the MSCI World Islamic M-Series Index through segregated mandates. It is designed to offer institutional investors a transparent and efficient investment solution that aligns with their faith-based investment objectives.
The strategy tracks the MSCI World Islamic M-Series Index, providing diversified exposure to Shariah-compliant companies across developed markets. To ensure ongoing compliance with Islamic finance principles, the fund operates under a dual-layered Shariah governance framework. The underlying investment universe is screened and certified by MSCI, while an independent Shariah Supervisory Board conducts regular oversight, quarterly audits, and annual certification.
Structured as an Irish Common Contractual Fund (UCITS), the strategy offers institutional investors operational flexibility, tax transparency, and regulatory efficiency. This structure is designed to meet the evolving needs of global institutional investors seeking Shariah-compliant investment opportunities.
Commenting on the launch, Pedro Guazo, Head of International and Responsible Investing at Northern Trust Asset Management, said the new strategy demonstrates the firm’s commitment to supporting institutional investors with innovative Islamic investment solutions. He added that NTAM’s experience in Shariah-compliant investing, combined with the expertise of its global equity index team, enables the firm to deliver a compelling investment solution for clients.
The introduction of the new strategy reflects the continued expansion of the global Islamic asset management industry and the growing demand for professionally managed, Shariah-compliant investment products. It also reinforces Northern Trust Asset Management’s commitment to providing responsible and faith-based investment solutions to institutional investors worldwide.