Aviva Introduces Shariah Lifestyle Investment Strategy to Expand Pension Options

Aviva Introduces Shariah Lifestyle Investment Strategy to Expand Pension Options

(IN BRIEF) Aviva has launched a Shariah-compliant lifestyle investment strategy for workplace pension members, offering automated de-risking and a target drawdown glidepath to enhance retirement planning options. Developed in partnership with HSBC Asset Management, the strategy includes three funds—Global Equity Index, Multi Asset, and Global Sukuk Index—guided by HSBC’s Global Shariah Supervisory Committee. This initiative aims to address growing demand for faith-based investment solutions while aligning with Aviva’s flagship pension strategies. It provides members with greater flexibility and inclusivity, supporting diverse retirement goals and expanding ethical investment opportunities.

(PRESS RELEASE) LONDON, 20-Nov-2024 — /EuropaWire/ — Aviva has announced the launch of a groundbreaking Shariah-compliant lifestyle investment strategy, offering workplace pension members greater flexibility and choice as they prepare for retirement. This new initiative enhances Aviva’s existing Shariah offerings, introducing a universal de-risking option alongside a target drawdown glidepath to provide a comprehensive pension solution aligned with Islamic principles.

The strategy mirrors Aviva’s flagship My Future and My Future Focus frameworks, ensuring consistency across its broader investment portfolio while integrating automated de-risking tailored to individual pension journeys. By embedding Islamic investment principles, the approach balances ethical compliance with the strategic reduction of risk over time.

Historically, Shariah investors have faced limited options, often relying on single-fund solutions without de-risking features. Umar Yaqoob, Workplace Investment Proposition Manager at Aviva, emphasized the importance of evolving these solutions. “Our new Shariah lifestyle investment strategy brings together a suite of funds that allow members to take a hands-off approach from joining their pension scheme to retirement or to select a strategy aligned with how they wish to access their pension savings,” he explained.

The new funds aim to address the increasing demand for Shariah-compliant investment options, particularly within underserved markets. Yaqoob highlighted the inclusivity of the offering: “Supporting over 4 million members across 26,000 corporate pension schemes, we understand the need for diverse investment solutions. This strategy aligns with our flagship auto-enrolment defaults, offering glidepaths, savings targets, and strategies tailored to different retirement goals.”

Developed in partnership with HSBC Asset Management (HSBC AM), the funds include the Aviva Pension HSBC Islamic Global Equity Index, Aviva Pension HSBC Shariah Multi Asset, and Aviva Pension HSBC Global Sukuk Index. These funds invest in a wide range of Shariah-compliant assets, including equities, Sukuk bonds, commodities, and property, under the guidance of HSBC AM’s established Global Shariah Supervisory Committee.

Olga de Tapia, Global Head of ETF and Indexing Sales at HSBC Asset Management, expressed pride in the partnership, stating, “The launch of our Islamic Investment Range was driven by our ambition to provide faith-based investors with the same opportunities as conventional counterparts. We’re delighted to support Aviva in delivering a solution that offers members diverse retirement options while adhering to their principles.”

Aviva has already welcomed its first investors to the Shariah lifestyle investment strategy and plans to roll it out more widely in the coming months. This initiative reflects the company’s commitment to meeting the diverse needs of its members and supporting a more inclusive society through innovative, faith-aligned financial solutions.

Notes to editors:

• We are the UK’s leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
• We help our 19.6 million (as at 31 August 2024) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
• We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers.
• In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
• Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
• As at 30 June 2024, total Group assets under management at Aviva Group were £398 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2024 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
• For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
• The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
• You can follow us on:
  • X: www.x.com/avivaplc
  • LinkedIn: www.linkedin.com/company/aviva-plc
  • Instagram: www.instagram.com/avivaplc
• For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

Media Contact:

Katy Hurren: Wealth
Phone: +44(0) 7800 692 548
Email: katy.hurren@aviva.com

SOURCE: Aviva