Sanlam Investments UK will manage the world’s first active global equity Shariah-compliant ETF, which will be launched via HANetf.
International financial services group Almalia will launch the fund and has selected Sanlam as the manager following the success of its Global High Quality Strategy, launched in 2008 by Sanlam's global head of equities Pieter Fourie.
Fourie and his team will manage the Almalia Sanlam Active Shariah Global Equity UCITS ETF, which will seek to achieve capital growth over the medium to long term, while complying with the principles of Shariah investment.
It will invest in companies with high returns on capital and low leverage, "enduring business models with a sustainable competitive advantage", and firms which produce "significant" free cash flow after capital expenditure.
The Shariah screening will be overseen by a Shariah panel of scholars from Amanie Advisors to ensure the fund is asset backed, ethical, shares risks equitably and is subject to good governance.
The ETF will be listed on the London Stock Exchange, available in both USD and GBP for a total expense ratio of 0.99%.
Fourie said: "It is an incredibly exciting opportunity and privilege to manage the world's first actively managed Shariah compliant ETF. The launch allows us the opportunity to demonstrate that active management using high quality-based investment principles within the parameters of a Shariah compliant universe can add significant value to investors.
"With this fund launch we believe an underserviced market can be given a better outcome, by following the same strategy as our Global High Quality fund which invests in businesses that have durable business models, wide economic moats and the ability to deliver significant shareholder value over the long term."
Nik Bienkowski, co-CEO of HANetf, added: "We are delighted that Almalia chose us to help them develop and launch the world's first actively managed Shariah compliant ETF. Active ETFs are currently relatively few in number but represent a huge growth opportunity.
"ETFs have firmly established their credentials for basic beta exposure, and tomorrow's battle grounds are thematic, smart beta and ultimately active strategies. As the ETF industry continues to enjoy strong growth, more active fund managers are looking to enter the sector and we look forward to helping them bring their strategies to the European market."