Baillie Gifford launches Shariah-compliant global equity fund

Baillie Gifford has launched its Islamic Global Equities Fund for institutional and accredited investors in Singapore and professional investors in Hong Kong, expanding Shariah-compliant investment options in Asia.

Managed by Tolibjon Tursunov and Saad Malik, the fund offers Islamic investors access to a high conviction portfolio of exceptional growth companies aligned with Shariah principles.

Despite growing global interest in Islamic investing, the team believes Muslims are still faced with a lack of good options. Tolibjon Tursunov, who began developing the fund over 10 years ago, puts it plainly: “Investing in line with your beliefs should be simple, but for many Islamic investors, it isn't. Islamic equity funds account for less than one per cent of the global equity universe, and most offer little more than a screened index.”

Baillie Gifford Islamic’s approach is consistent with the firm’s commitment to long-term investing and grounded in fundamental, bottom-up research. The team thinks deeply about the likely legacy each company will have on society and the environment when assessing its potential to grow sustainably over many years.

The team also works closely with Islamic scholars and index providers to improve industry standards and widen the investible universe. These conversations, informed by insights from company-focused research, have made businesses like Shopify and Denali Therapeutics more widely investible for Islamic investors.

Tolibjon said, “Before launching, we established strong working relationships with leading scholars within Islamic finance and other industry stakeholders. These efforts have paved the way for dialogue that adds value for clients but also benefits the wider Islamic investment community.”

The $2.79 million fund is built for institutional and accredited investors in Singapore, and professional investors in Hong Kong with a long-term horizon of five years or more. It invests in a focused global portfolio of around 50 of the world's best Shariah-compliant growth companies. It is a Dublin-domiciled UCITS fund.

Calvin Liew, client relationship director, Singapore at Baillie Gifford, said: “Southeast Asia is home to the world’s third-largest regional population of Muslims. We have seen growing demand here for investment strategies that align with Shariah principles without compromising on ambition. Baillie Gifford’s Islamic Global Equities Fund offers exactly that and represents another option for the market here.”

Re-disseminated by Wealth and Society