Aviva has announced plans to launch a new Shariah lifestyle investment strategy that will include a suite of funds compliant with Islamic principles.
This, it said, offers its workplace pension members with a universal de-risking option and a target drawdown glidepath.
Aviva said the lifestyle investment strategy will enhance its existing Shariah offering.
It also mirrors Aviva’s My Future and My Future Focus strategies to create consistency across its investment proposition.
The new Shariah lifestyle investment strategy aims to deliver for customers by offering Islamic investment principles built into the funds.
The fund range has been created using HSBC Asset Management funds.
Aviva said it recognises HSBC AM’s presence and track record within the faith-based investment solution market and its care in providing Shariah solutions to the market.
Governance of the funds’ Shariah compliance sits with its Global Shariah Supervisory Committee.
Aviva workplace investment proposition manager Umar Yaqoob said: “Historically, across the market, Shariah investors have broadly had to make their own investment choices and have relied on a single-fund solution without access to de-risking.
“Solutions in the market are starting to evolve, but it’s important these go beyond just moving investments from a higher-risk to a lower-risk fund and consider the different ways people will access their pension.
“Our new Shariah lifestyle investment strategy brings together a suite of funds to create de-risking solutions that offer members the choice to have a hands-off approach from the point they join their pension scheme through to retirement, or select a lifestyle strategy that aligns with how they want to access their pension savings at retirement.
“We support over four million members across 26,000 corporate pension schemes and we recognise the need to offer a diverse range of investment solutions to mirror an inclusive society.”
The funds are subject to ongoing supervision by the Global Shariah Supervisory Committee, and they invest in a diverse range of assets such as UK and international equities, Sukuk bonds, commodities and property.
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