HSBC Life Amanah Pension Fund is a pooled fund that offers investors exposure to the largest 100 companies engaged in Shariah-compliant activities globally.
The fund tracks the Dow Jones Islamic Market Titans Index, which comprises Shariah-compliant companies endorsed by the HSBC Amanah Shariah Supervisory Committee. It has been launched in conjunction with HSBC Amanah.
The fund adopts a passive investment strategy comprising a portfolio of equities closely mirroring the Dow Jones Islamic Market Titans Index.
Islam as a religion does not discourage the pursuit of profit through legitimate economic activities, provided that these activities are within certain boundaries defined by Islamic law. In particular, the HSBC Shariah Supervisory Committee has approved investment in listed companies, provided that these companies are not engaged in activities that go against the tenets of Islam and provided any non-Shariah compliant revenue earned through investment in these companies is 'purified'.
On an on-going basis the HSBC Shariah Supervisory Committee is called to certify that the activities of the Fund continue to abide by the guidelines set for acquiring, holding and disposing of investments.
The Fund does not invest in shares of companies whose primary activity involves any of the following goods or services:
In addition, the Fund does not invest in companies with levels of borrowings and financial assets beyond levels deemed tolerable by the Shariah Supervisory Committee.
The Fund receives company dividends generated as part of a company's normal business operations. However, any proportion of income received from non-compliant activities are paid to the HSBC in the Community foundation and thereby 'purified'.
For example, a large diversified corporation may be Shariah-compliant. However, this corporation may own a small finance subsidiary deemed non-compliant. A percentage of the dividend representing the profits from the subsidiary will be donated to the HSBC in the Community Foundation.
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