HSBC Amanah fund chosen for UK national pension scheme

24/05/2011 00:00 AST

NEST members will be invested in one of over 40 target dated funds. The funds are designed to be ready when NEST's members retire. For example, if a member is expected to retire in 2030, their money would be invested in the NEST 2030 Retirement Date Fund as well as having the opportunity to choose from a range of fund choices, including the NEST Shari'ah Fund.

In the UK, more than a quarter of its 62 million people are at, or nearing retirement age, of 65 for men and 60 for women. Among the 29 million working people, about 10 million are not making contributions to any pension plan. The number of Muslims in the UK is projected to increase from 2.9 million in 2010, or nearly five per cent of the population, to 5.6 million in 2030, or eight per cent of the population.

Stuart White, HSBC Global Asset Management (UK) Institutional Director, said, "This new pension scheme by NEST is a landmark initiative that can be expected to transform the UK's pension industry. We are excited to be part of the scheme, which is widely expected to become one of the largest defined contribution pension plans in Europe."

Amjid Ali, senior manager with HSBC Amanah UK, said, "This is a great example of how HSBC's expertise in both fund management and Islamic banking can come together to help those who want to make a choice to save through a Shari'ah-compliant fund."

HSBC Life Amanah Pension fund is a pension fund that allows investors to invest in equities in a Shari'ah-compliant manner. The fund tracks the Dow Jones Islamic Titans 100 Index, which consists of Shari'ah-compliant companies such as Exxon Mobil and Microsoft. These stocks have been endorsed by the Dow Jones Shari'ah Supervisory Committee. The fund, which started in 2004, has returned 63.5 per cent since launch to end-March 2011.

CPI Financial