Lux platform makes Shariah fund available to UK investors

Luxembourg-headquartered multi-boutique platform Cornhill Management has announced that the Sharia-compliant strategy WSF Global Equity Fund is now available to UK professional investors.

The fund was launched in August 2010 and is managed by Cogent Asset Management, but its new GBP I share class has just received FCA approval to be marketed to professionals in the UK.

Being Shariah-compliant, the fund avoids so-called ‘sin’ stocks in companies producing or with activities related to alcohol, tobacco, gambling and others.

In addition, the fund does not invest in companies producing pork products, in conventional financial services and only invests in companies with low levels of borrowing.

Ian Lancaster, founder of Cogent Asset Management and manager of the WSF Global Equity fund, said that the “Cognition” portfolio management system developed by the Cogent team run since fund inception contributes much to the performance of the fund.

“We believe our approach to be a far better proposition than that of fundamental fund management. Rather than running a ‘conviction’ portfolio, which often sounds good for marketing but disappoints in terms of performance, we maintain a broad spread of investments by stock and sector.

“Where we do have significant skill is in understanding, through simple mathematics, what fundamental characteristics are driving the markets, how different sectors respond to those characteristics, and which stocks are best positioned to outperform given their individual characteristics. This is what we focus on and this, I believe, is what sets us apart,” Lancaster said.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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