HSBC Islamic Global Equity

This fund tracks the Dow Jones Islamic Market Titans 100 Index, comprising the 100 largest global stocks that comply with Shariah guidelines. Since its launch in November 2022, the fund’s Assets Under Management (AUM) have grown to over USD 6 billion, reflecting strong investor confidence.

Key Features of the HSBC Islamic Global Equity Fund

Here are the reasons why this fund stands out among the investors —

• Shariah Compliance: The fund ensures all investments align with Islamic finance principles, avoiding industries such as alcohol, gambling, and interest-based financial services
• Global Diversification: By investing in a wide range of sectors and regions, the fund provides exposure to various markets, enhancing potential returns and spreading risk
• Full Replication Strategy: This fund aims to mirror the performance of its benchmark index by investing in all its constituents in the same proportions, ensuring accurate tracking
• Low Costs: It maintains a competitive cost structure, with an ongoing charge figure of just 0.27%, making it an efficient investment choice

HSBC Global Islamic Fund Performance Overview

The HSBC Islamic Global Equity Fund has delivered strong returns over the years. Below is a summary of its performance —

Note: The past performance of HSBC Islamic Global Equity Index fund does not predict future returns. Returns are calculated in the fund’s base currency and may fluctuate due to exchange rate movements.

Top Holdings of HSBC Global Equity Index Fund

The fund invests in some of the world’s leading companies that meet Shariah compliance standards. Here are the top five holdings, accounting for 35.96% of the portfolio —

Key Investment Risks

As with any equity fund, investors should be aware of potential risks, including —

• Market Risk: Stock prices fluctuate based on economic and political conditions
• Currency Risk: Exchange rate changes can impact returns for investors holding foreign currencies
• Liquidity Risk: Some assets may be harder to sell in unfavorable market conditions
• Tracking Error: The fund may not perfectly replicate the index, leading to slight variations in returns

Considerations for UAE Investors

• Alignment with Values: The fund's adherence to Shariah principles ensures investments are ethical and in line with Islamic values
• Global Exposure: Investors benefit from access to prominent global companies across various sectors, like technology and healthcare, potentially enhancing portfolio growth
• Risk Awareness: As with all equity investments, the fund is subject to market fluctuations. It's essential to consider personal risk tolerance and investment horizons

Conclusion

The HSBC Islamic Global Equity Index Fund presents a viable option for UAE investors seeking Shariah-compliant investment opportunities with a global perspective. By combining ethical considerations with diversification, the fund aims to provide long-term capital appreciation. Prospective investors should assess the fund's alignment with their financial goals and risk appetite.