Almalia lists first actively managed global equity Shariah compliant ETF in Germany and Italy following LSE launch

International financial services group, Almalia, has launched the world’s first active global equity Shariah compliant ETF, Almalia Sanlam Active Shariah Global Equity UCITS ETF (the ETF) on the Borsa Italiana and Deutsche Boerse’s Xetra.  

The actively managed Shariah ETF has recently listed on London Stock Exchange has also been passported across Europe including Scandinavia, the Netherlands and Austria. 

Almalia has selected Sanlam Investments UK to manage the assets of the ETF based on the success of its award-winning Global High Quality Strategy which was launched by Sanlam’s Global Head of Equities, Pieter Fourie, in 2008. The ETF will form part of this strategy and will be managed by Pieter along with his team of six investment professionals.

The ETF will aim to achieve capital growth over the medium to long term, whilst complying with the Principles of Shariah Investment. To this end, it will invest in companies with high returns on capital and low leverage, as well as enduring business models with a sustainable competitive advantage, producing significant free cash flow after capital expenditure. Investment screening, to ascertain the ETF’s on-going compliance with the Principles of Shariah Investment, will be overseen by a Shariah Panel of scholars from Amanie Advisors with deep expertise in Islamic Investment. Islamic financial products share four main features; they are asset backed, ethical, share risks equitably and are subject to good governance.

The fund may be suitable for investors looking to access an experienced active management team offering a high-quality strategy with the efficiencies, flexibility and democracy that are inherent to the ETF structure.  

Paul-David Oosthuizen, CEO of Almalia said: “We are proud to be the first to launch an actively managed Shariah compliant global equities ETF in Germany and Italy.  Our team is passionate about values-based investing and providing innovative solutions to underserved investors. This ETF may be suitable for investors looking for an actively managed strategy with a focus on good governance, as well as those who wish to invest in a Shariah compliant way.”

Pieter Fourie, Head of Global Equities at Sanlam 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 said: “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.”