Stocks and Shares Shariah ISA

Main Product Features

• Flexible

  There is no fixed term of years (although you should consider it a medium to long term investment, typically 5 years or more)

  There is no set premium – you can pay in regularly by direct debit of £25 or more and / or invest lump sums at any time up to the annual ISA limit. If you pay by Direct Debit you can alter the amount whenever you want or even stop paying for a period of time.

  You can make withdrawals at any time, although this will obviously affect the total return

  You can transfer ISAs from other providers to us or transfer your Red Rose ISA to another provider

• Tax free

  Our ISA provides a tax free return when you cash in, transfer to another provider, or on your death

• Shariah compliant fund

  An investment fund which meets all of the requirements of Shariah law and the principles of Islamic Finance. The Fund will only invest in Shariah-compliant companies and approved financial instruments. The Fund is prohibited from investing in financial derivatives or other non-Shariah compliant instruments.

  We are aware of the importance of the Fund complying with Shariah law. The Fund is overseen by an independent Shariah Committee that is responsible for:

  Agreeing the investment objectives and policies

  Advising the fund managers regarding compliance with Shariah principles

  Establishing the principles for calculating an appropriate percentage of ‘non Halal’ income

  Approving suitable charities for the donation of ‘non Halal’ income

  Preparing an annual certificate of the Fund’s compliance with Shariah principles

• Where does the Fund invest?

  The Fund is managed by a specialist team at HSBC. The HSBC Islamic Global Equity Index Fund (the Fund) aims to create long term appreciation of capital through investment in a diversified portfolio of securities. It aims to track the Dow Jones Islamic Market Global Titans 100 Index which is Shariah compliant – all companies included in the Index are screened by the Shariah Supervisory Board which is a committee of 4 Islamic Scholars.

  The Index does not include companies in the following sectors: Weapons and Defence, Pork related products, Tobacco, Alcohol, Financial Services or Entertainment sectors.

  The Fund invests in diverse areas including Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials.