The national employment savings trust (Nest) has announced plans to offer fund choice compliant with Sharia law when it launches later this year.
Nest has begun the procurement process for a Sharia-compliant fund manager after consulting with stakeholders to determine which fund choices to offer.
After Nest conducted research into the characteristics of its likely membership and their savings expectations, trustee members agreed a Sharia-compliant fund would be offered along with the default and a socially responsible investment fund.
Nest will not include any asset classes forbidden by Sharia law, and requires the successful bidder to have its products approved by a board of Sharia scholars.
A statement from Nest said: “Nest will have a diverse group of members and employers – it is committed to develop a scheme that meets as many of their needs as is practical, giving individuals access to a low-charge pension vehicle.”
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