News

Gatehouse and Columbia Threadneedle Investments Partner to launch Shariah Fund

New strategy managed by Columbia Threadneedle Investments’ global equities manager Simon Haines with Gatehouse Bank as Shariah Compliance Advisor to the Fund

LONDON - 13 June, 2017: Gatehouse Bank plc (“Gatehouse”) and Columbia Threadneedle Investments (“Columbia Threadneedle”) are pleased to announce the launch of the Threadneedle (Lux) – Gatehouse Shariah Global Equity Fund (the “Fund”), following regulatory approval by the CSSF (Commission de Surveillance du Secteur Financier) in Luxembourg and the FCA (Financial Conduct Authority) in the UK.

The Fund draws on both Columbia Threadneedle’s successful investment philosophy and process and Gatehouse’s Shariah investment expertise.

The Fund is an actively managed equity portfolio investing in between 50 and 80 Shariah compliant stocks globally in accordance with the Shariah Guidelines as determined by the Shariah Supervisory Board and Gatehouse as the Shariah Compliance Advisor. In this role, Gatehouse will provide ongoing advice for the Fund and monitor its activities with regard to its adherence to the Shariah guidelines. The Fund aims to outperform its benchmark, the MSCI Islamic M-Series index, by 2% per annum over rolling 3 year periods.

Simon Haines is the lead portfolio manager and is supported by Columbia Threadneedle’s Global Equities team based in London consisting of 12 individuals with 15 years’ industry experience on average. Simon Haines joined Columbia Threadneedle Investments in 1999 and became portfolio manager in January 2005, where he managed the Threadneedle UK Mid 250 Fund and co-managed the Threadneedle UK Extended Alpha Fund. In November 2013, Simon moved to the Global Equities team. He also has research responsibility for the industrials sectors and for the Asia-Pacific region. Simon graduated with a degree in biology from Oxford University in 1999 and also holds the Chartered Financial Analyst designation.

Columbia Threadneedle has appointed IdealRatings as Shariah Stock Screening Provider to the Fund. IdealRatings provide research that expands upon that undertaken by Islamic index providers and permits asset managers to tailor portfolios to the Shariah guidelines relevant to their products.

All investment ideas under consideration for inclusion within the Fund will be assessed with regard to their Shariah compliance. In order to qualify for investment in the Fund, each company/stock must have compliant status within the IdealRatings rule book relevant to the Fund’s benchmark (the MSCI Islamic M-Series rule book will be applied for the Fund).

Fahed Boodai, Chairman of Gatehouse Financial Group, commented: “We are excited to launch the Shariah-compliant global equity fund alongside Columbia Threadneedle, our first true partnership with the asset manager since they acquired a minority shareholding in Gatehouse in 2015. The new fund addresses the growing demand from investors seeking greater portfolio diversification, whilst adhering to Shariah-compliant investment principles. We look forward to working closely with Simon and his team at Columbia Threadneedle and building on our existing relationship.”

Simon Haines, global equities manager at Columbia Threadneedle Investments and manager of the Fund said: “Integral to what defines quality in the context of the Shariah fund is our belief that well-governed companies are better positioned to manage risks and challenges inherent in business and to capture opportunities that should deliver sustainable growth and returns over time. Effective stewardship benefits companies, our clients and the economy as a whole. We look forward to working with Gatehouse to select best in class ideas for the portfolio according to Shariah principles in the best interest of our clients.”