Long before responsible investing became trendy, Shari’ah-compliant investment products, catering for a niche Muslim market, had entered the scene. Although the prime target group for this type of investing is the Muslim community (about two per cent of the South African population), Shari’ah investing is seeing increased interest from investors who are keen on responsible investing. Previously, Shari’ah-compliant equity funds were the only product available, catering mainly for discretionary savings by high net worth individuals. But demand for Shari’ah-compliant investments has grown significantly over the last few years, says Abdul Davids, head of research at Kagiso Asset Management.
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