Fund Style Name: Faith based funds


Style USP: Faith based investment

Brief description of Style

Funds that invest in line with specific religious principles.

SRI approach applied

Faith based funds normally use ethical screening as part of their investment process in order to offer investment solutions that are consistent with defined religious principles or values.

These may be guided by an external committee or panel of experts or use specialist indices which list allowable constituents.

SRI issues covered

Funds cover the issues that are most important to the faith group they are intended to be appropriate for. This may include, for example, the avoidance of interest payments and avoiding companies involved in pornography, gambling or alcohol – which are appropriate for Islamic investors.

Variation across Style segment & associated Styles

There is little choice in this market at present as there are relatively few options available for investors at present. Retail faith funds are mainly intended for Islamic investors at present although options may exist for other faith groups from specialist providers. Interpretation of ethical principles may differ.

Impact on investment strategy

Faith based strategies may substantially impact where a fund manager can invest. Funds may use specialist benchmarks to gage performance or guide investment decisions.

Who is this Style most likely to appeal to?

Faith based funds are primarily intended for investors who want to invest their money in line with a specific named faith – which today primarily means Islamic investors who are looking to invest in line with Shariah principles.

Associated Styles

These funds have features in common with some Balanced and Traditional Ethical funds which have Christian origins.

Associated jargon

Funds favour terms that denote the faith or name of religious principles or strategies applied.


Offered by very few fund providers

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