Linked below is a page describing the F&C Responsible Sharia Global Equity Fund.
This fund provides as with a “teaching moment” in that it illustrates the lack of disclosure rampant in the Shariah Finance industry and it also reveals a conflict of interest between Shariah and “responsible” investing.
First of all, check out the description of the fund:
The investment objective of F&C Sharia Sustainable Opportunities is to achieve long-term capital appreciation by investing its assets in equity and equity-related securities (excluding convertible bonds and bonds with warrants) of companies, in any market, whose products and operations are not felt to be harming the world, its people or its wildlife are considered to be making a positive contribution to society
The problem here is obvious. Shariah itself harms the world and people. No Shariah fund can truly be considered “responsible.”
But of course, no where on this page will you find any explanation of what Shariah is or what it does. Such information should be fully disclosed to investors, but you’ll never see it in the Shariah Finance industry. Imagine a term being used in the very title of a fund with no explanation!