Our Shariah Fund in focus
A closer look at our Shariah Fund and how it's managed.
What makes the fund Shariah‑compliant?
How Shariah‑compliant investments are determined
The Islamic scholars on the HSBC Shariah Supervisory Committee apply Shariah law to determine which companies the fund can invest in, based on the goods and services those companies provide.
The committee also set limits on how much firms can borrow and how much interest income they can receive. Companies can also receive income that is not Shariah compliant provided it has been ‘purified’. The HSBC Shariah Supervisory Committee makes sure that all the companies the fund invests in comply with their interpretation of Shariah law on an ongoing basis.
What activities are excluded?
Any company that gains more than 5% of its annual revenue from the following activities is excluded from the fund:
- Alcohol
- Tobacco
- Pork-related products
- Non-Islamic financial services (banking, insurance, etc.)
- Weapons and defence
- Entertainment (hotels, casinos/gambling, cinema, pornography, music, etc.)
The fund also excludes investment in companies with excessive levels of debt or impure interest income. Where the fund invests is reviewed regularly, and companies that no longer comply with its exclusions will be removed.
Who is HSBC Amanah?
HSBC Amanah is the Islamic financial services division of the HSBC Group responsible for the development of Islamic financial products. Headquartered in Dubai with regional offices in London, New York, Riyadh, Kuala Lumpur, Dhaka and Jakarta.
The Shariah Fund is managed by HSBC Global Asset Management.
The Shariah Fund invests according to principles agreed upon by a supervisory board of eminent Shariah scholars from around the world. This board — made up of Islamic scholars who sit on the HSBC Shariah Supervisory Committee — determines which investments are suitable for investment and which do not meet Shariah law requirements.