Sweden's Sharia pension fund outperforms market
TT/The Local · 5 Dec 2008, 15:22
Published: 05 Dec 2008 15:22 GMT+01:00
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The Sharia fund, a part of the Premium Pension Authority's (PPM) fund system, was conceived to give Muslims a chance to have their retirement money grow without being placed in stocks which earned money by charging interest.
As such, the fund doesn’t invest in financial stocks and has thus avoided many of the losses suffered by other investors during the recent financial crisis.
Similar in many ways to other socially responsible investment funds, the Sharia fund also avoids investments in companies dealing in weapons, tobacco, alcohol, pornography, and pork, as well as firms which are highly indebted.
A council consisting of five imams regularly evaluates the fund’s investments to ensure it continues to abide by Sharia laws.
Over the last three months, the fund has performed better than the Stockholm stock exchange, dropping only 20 percent in value, compared to the 28 percent losses suffered by the OMX-index.