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HSBC Amanah fund chosen for UK national pension scheme

HSBC Life Amanah Pension Fund has been selected by NEST Corporation for its Sharia Fund. NEST is a simple and low-cost UK pension scheme designed to give its members an easy way of building up their retirement pot, and making it easy for employers to meet their new workplace pension duties that will start to be introduced from 2012.

NEST members will be invested in one of over 40 target dated funds1 (NEST Retirement Date Funds), as well as having the opportunity to choose from a range of other fund choices, including the NEST Sharia Fund.

In the UK, more than a quarter of its 62 million people are at, or nearing retirement age, of 65 for men and 60 for women. Among the 29 million working people, about 10 million are not making contributions to any pension plan2. And the number of Muslims in the UK is projected to increase from 2.9 million in 2010, or nearly 5% of the population, to 5.6 million in 2030, or 8% of the population3.

Stuart White, HSBC Global Asset Management (UK) Institutional Director, said, "This new pension scheme by NEST is a landmark initiative that can be expected to transform UK's pension industry. We are excited to be part of the scheme, which is widely expected to become one of the largest defined contribution4 pension plans in Europe."

Amjid Ali, senior manager with HSBC Amanah UK, said, "This is a great example of how HSBC's expertise in both fund management and Islamic banking can come together to help those who want to make a choice to save through a Sharia-compliant fund."

HSBC Life Amanah Pension fund is a pension fund that allows investors to invest in equities in a Sharia-compliant manner. The fund tracks the Dow Jones Islamic Titans 100 Index, which consists of Sharia-compliant companies such as Exxon Mobil and Microsoft. These stocks have been endorsed by the Dow Jones Sharia Supervisory Committee, an independent board of Islamic scholars who advise Dow Jones on the compliance and eligibility of the index's components. The fund, which started in 2004, has returned 63.5% since launch5.

HSBC Amanah
HSBC Amanah is the global Islamic financial services business of the HSBC Group. It was established in 1998 with the aim of making HSBC the leading provider of Islamic financial services worldwide. With established and successful operations in the Middle East, Asia-Pacific and Europe, HSBC Amanah represents the largest and most comprehensive Islamic proposition of any international bank.

With the global resources of the HSBC Group at its disposal, HSBC Amanah is uniquely positioned to understand, structure, and distribute financial services that are compatible with the requirements of Sharia (Islamic Law).

HSBC Global Asset Management
HSBC Global Asset Management manages assets totalling US$443.5 billion, and is a leader in emerging markets, with $145 billion invested in this asset class (as defined by assets invested in regions outside of North America, Western Europe, Japan and Australia). Through its network of offices in approximately 30 countries globally, HSBC Global Asset Management has a worldwide client base of institutions, corporates, private clients and intermediaries, invested in both segregated accounts and pooled funds.

(All figures as at 31 December, 2010)

For more information see www.assetmanagement.hsbc.com

HSBC Life Amanah Pension fund
The HSBC Life Amanah Pension Fund invests directly into the HSBC Amanah Global Equity Index Fund, which adopts a passive equity investment strategy that mirrors and tracks the Dow Jones Islamic Titans 100 Index.

The value of investments can fall as well as rise. Past performance is not a guide to future performance.

-Ends-

About UK pension reform
To more information on how pensions are changing in the UK from 2012, go to www.dwp.gov.uk

About NEST
NEST is a new workplace pension scheme that any employer can use to meet the new duties that start to be introduced from 2012.

Available in 2011, NEST allows employers to provide a workplace pension scheme for workers who may not have had access to a workplace pension scheme before.The main features of NEST

• It will be simple and easy to administer with straightforward and convenient online services and tools.

• It will offer flexibility over contribution levels and the way these are calculated.

• An individual's membership of NEST can travel with them throughout their working life. This is why there will be no continuing administration for employers when a NEST member leaves their employment. For new joiners who are already members of NEST, all contributions made on their behalf can be added to their existing retirement savings pot. Also more than one employer can contribute to a member's NEST retirement savings pot at the same time.

• NEST Corporation is legally bound to run NEST in the interests of scheme beneficiaries.

• NEST Corporation has a public service obligation to run NEST so it's open to any employer that wants to use it to meet the new duties. This means that employers of all sizes and sectors can use NEST.

• NEST Corporation will set an investment approach for NEST that's specifically designed for the needs of low-to-moderate earners.

• Up to £4,200† per year (in January 2011 terms) can be paid into each member's retirement savings pot.

• NEST Corporation is not allowed to accept transfers in or pay transfers out except in very limited circumstances.

For more information on NEST go to www.nestpensions.org.uk

For further information, please contact:
Rosana Gulzar Mohd
HSBC Amanah corporate communications
+971-44-235607/ rosanagulzar@hsbc.com

1 The funds are designed to be ready for when NEST's members retire. For example, if a member is expected to retire in 2030, their money would be invested in the NEST 2030 Retirement Date Fund.

2 UK government labour market statistics

3 The Future of the Global Muslim Population, Pew Research Centre, January 2011.

4 A type of retirement plan in which the amount of the annual contribution is specified

5 As of end March 2011

© Press Release 2011