Saudi Arabia’s SEDCO Capital and Swiss private banking and asset management group Lombard Odier, have launched a new environmental and social governance (ESG) focused Shariah-compliant fund.

The SC LO Global ESG Equities Fund aims to outperform the Dow Jones Islamic Market World Developed Total Return Index, according to a joint statement.

It will be managed by Saudi-based SEDCO Capital and Lombard Odier will act as the investment adviser.

Samer Abu Aker, CEO of SEDCO Capital, said: “In today’s global investment climate, characterised by an uneven recovery from the COVID-19 pandemic, significantly heightened risks from climate change, rapidly evolving technologies, and unpredictable market cycles, our clients want the confidence that their capital is being deployed into high-performing, stable, ethical, and sustainable assets.” 

Arnaud Leclercq, Partner Holding Privé and Head of New Markets, Lombard Odier, said: “Together we are responding to rising client demand and seeking to offer clients the best of both worlds: sustainable investing combined with Islamic finance principles. We expect the new fund to successfully appeal to the rapidly growing number of Shariah-compliant and conscientious investors in the Middle East, South Asia, Europe and elsewhere”.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

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© ZAWYA 2021