Standard Life extends its Sharia proposition with launch of a Sharia Lifestyle Strategy

Standard Life extends its Sharia proposition with launch of a Sharia Lifestyle Strategy

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• Standard Life extends its Sharia proposition with launch of a Sharia Lifestyle Strategy

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• Standard Life Sharia Lifestyle Strategy - certified from the top down by independent Sharia advisers
• Sharia standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
• Two-layer independent oversight, unique feature of Standard Life's Sharia pension option
• Growth and At Retirement lifestyle options underpinned by global investment managers providing access to equities and sukuk fund

Standard Life, the retirement specialist focused entirely on retirement savings and income, has launched a fully Sharia-compliant pension option, the Standard Life Sharia Universal Strategic Lifestyle Profile. The launch further extends Standard Life's range of responsible investment options for members of its workplace pension schemes.

Investment solution incorporating funds from global investment managers:

Available specifically to workplace scheme members, the lifestyle strategy adheres to the principles of Sharia Law, creating a pension default with clear ethical boundaries* and Sharia certification.

Leveraging its access to best in breed capabilities, Standard Life has partnered with major fund managers - HSBC Asset Management and Franklin Templeton, both with over 20 years' experience of Sharia-compliant investing, to create a strategic lifestyle profile comprising two investments funds to reflect distinct phases of the savings journey.

The Standard Life Sharia Growth Pension Fund seeks to increase the value of the pension on a Sharia-compliant basis when the saver is more than 15 years from retirement before switching over time to the Standard Life Sharia At Retirement Pension Fund, which introduces a sukuk fund** in the run-up to retirement.

Emma Furlonger, Managing Director of Workplace and Retail Intermediated (Interim), at Standard Life said: "This is a significant milestone in our ongoing development of our lifestyle solutions that meet specific requirements of members. Our Sharia-based solution caters to those who want to invest in line with their values and beliefs, without compromising on the prospect of long-term growth. In adhering to Sharia Law, we have sought to strike a balance between appropriate investment risk and good outcomes to help savers secure their income in retirement."

Two layers of independent oversight to maintain high standards in line with values and beliefs:

To independently support its approach, Standard Life appointed an external Sharia adviser - iConsult Africa, to oversee the development of its Sharia proposition and to consult on the ongoing Sharia-compliance of its Sharia Strategic Lifestyle profile being offered to savers.

Drawing on iConsult Africa's expertise, a Sharia Supervisory Group has been specifically established to review internal investments processes. Professor Ziyaad Mahomed, an Associate Professor of Islamic finance, law and social finance and chairman of iConsult Africa, has been appointed to chair this group and is joined by fellow iConsult Africa colleague, and one of the UK's leading Islamic finance scholars, Mufti Abdul Kadir Barkatullah, in advising on Sharia compliance and governance.

The Standard Life Sharia Supervisory Group is complemented by the committees of the external fund managers to ensure that the funds selected comply with Sharia principles. Additional oversight is provided by Standard Life's in-house investment governance teams to maintain the fair treatment of members.

In meeting high standards, members also have the additional reassurance that Standard Life's solution has been certified by Sharia advisers.***

Commenting on the launch of the Standard Life Sharia Universal SLP, Professor Ziyaad Mahomed, Independent Sharia Adviser and Chair of the Standard Life Sharia Supervisory Group said: "Offering a Sharia-compliant pension investment option is an important statement of inclusion. The Sharia principles of fairness and transparency are finding powerful resonance with demand for Islamic finance options growing in the UK. The increasing provision of Sharia-compliant options across the pension sector is to be welcomed as it provides the opportunity for Muslims to invest for retirement without having to compromise on beliefs, while also finding wider appeal among other investors too."

Composition of underlying funds:

The Standard Life Sharia Growth Pension Fund invests in the SL HSBC Islamic Global Equity Index Pension Fund - a global equity fund that invests in companies that meet Sharia principles.

The SL Franklin Global Sukuk Pension Fund underpins the Standard Life Sharia At Retirement Pension Fund, with investment in Sharia-compliant sukuk certificates structured to eliminate payment of interest and eliminate ownership on behalf of the investor. It invests across the Middle East, North Africa and South Asia, both in company and government supported sukuk.

Both underlying investments are informed by AAOIFI standards, and the Sharia supervisory mechanism of the individual investment manager.

In addition to the Sharia Universal SLP, Standard Life provides additional Sharia-compliant options for customers to self-select with a range of funds - SL Franklin Global Sukuk Pension Fund; SL HSBC Shariah Multi Asset Pension Fund; and SL HSBC Islamic Global Equity Index Pension Fund.

- Ends -

Notes to editors

* The Sharia Universal SLP avoids alcohol, tobacco, pork products, conventional banking and finance, weapons, and certain types of entertainment. It takes a defined approach to interest to ensure a Sharia-compliant investment process. Non-compliant income, for example from dividends, is donated to charity.

** Sukuk - a Sharia-compliant financial certificate, similar to a bond but structured differently in order to be Sharia compliant.

*** Standard Life's Sharia Certificate

About Standard Life

• Standard Life is a retirement specialist focused entirely on retirement saving and income.
• We are proud to manage c£300bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better.
• We offer our customers a broad range of retirement, investment and protection products across our customer brands which include Standard Life, SunLife, Phoenix Life and ReAssure.
• Our vision is to be the UK's leading retirement savings and income business, building on Standard Life's leadership positions in the workplace pensions, pension risk transfer and individual annuity markets, and our growing retail business. Our award-winning services are backed by industry leading apps and strong customer service.
• As a FTSE 100-listed group, we are using our size, expertise, and influence to deliver better outcomes for customers.
• We've set targets to help an additional three million customers take steps toward a better retirement by 2035. We want to play our part in delivering a net zero economy and managing our impact and dependency on nature to shape the world our customers will retire into.
• Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and in 2026 became one of Britain's Most Admired Companies.