Total Responsible Ownership assets: £646500.00

Total assets under management: £776613.00

As at: 31/08/25

Contact: sami.arouche@schroders.com

Overview

Filters

Fund information

Policy

The Global Islamic Equity Strategy applies a principled ethical investment approach rooted in Shariah law, combining Islamic screening with ESG integration. The fund excludes companies involved in non-compliant activities such as alcohol, gambling, tobacco, conventional financial services, weapons, and adult entertainment. It also avoids businesses with excessive leverage or interest-based income, in line with Shariah financial principles.

The strategy is aligned with ESG and socially responsible investing (SRI) by integrating sustainability considerations into the investment process. ESG factors – such as climate risk, innovation, and governance quality – are evaluated to enhance long-term risk-adjusted returns and support responsible business practices.

Intended positive outcomes include reduced exposure to unethical industries, support for sustainable business models, and alignment with clients’ values. Impact is assessed using metrics such as ESG ratings, carbon intensity, and governance indicators.

Process

Step 1: Shariah Compliance Screening
The investable universe is first screened for Shariah compliance. Companies involved in prohibited activities, such as alcohol, gambling, tobacco, conventional financial services, weapons, and adult entertainment, are excluded.

Step 2: ESG Factor Integration
Within the compliant universe, ESG factors are systematically assessed alongside financial factors. Environmental metrics focus on carbon intensity. Social analysis covers innovation. Governance metrics evaluate how well companies are managed, financial discipline, and the ability to enhance long-term shareholder value.

Step 3: Quantitative Analysis
The investment team employs a blend of internal research and third-party ESG data to score and rank companies. Quantitative models help identify attractive candidates and ensure consistency with Shariah values and ESG objectives.

Step 4: Portfolio Construction
The portfolio management team construct a diversified portfolio that balances targeted factor exposures (such as Value, Quality, and Low Volatility) with Shariah and ESG constraints. The aim is to maximise long-term risk-adjusted returns while remaining aligned with the fund’s ethical mandate.

Step 5: Ongoing Monitoring and Engagement
Holdings are continuously monitored for both Shariah compliance and ESG performance. An independent Shariah board provides regular oversight to ensure ongoing adherence to Islamic principles. ESG controversies, governance concerns, or breaches of ethical thresholds may trigger a review or divestment. External data providers contribute to monitoring and evaluation.

Resources, Affiliations & Corporate Strategies

Sustainability is fundamental to our investment principles at Schroders and we have an experienced and well-resourced Sustainable Investment team, who are embedded within our investment function. We are a global team, spread across four regional hubs in London, Paris, Singapore and New York, aiming to ensure that sustainability is embedded through our global investment teams and client functions.

The team is led by Andrew Howard, Global Head of Sustainable Investment. As team head, he oversees our approach to ESG integration, active ownership, our sustainability research and tools, and our reporting and product strategy.

Our central Sustainable Investment team sits alongside investment teams rather than operating in a silo, which facilitates regular dialogue with our analysts and portfolio managers.
It is organised into four pillars:

We outline their key responsibilities and areas of focus below.

1. Thematics
Comprising sustainability research, active ownership, and models and analytics, our thematics team help power investment decision making with proprietary insights and analysis, working with fund managers and analysts to make better informed investment decisions. Responsibilities include:

•  Providing sustainability – related research and technical support for stakeholders across the firm.
• Engaging companies to understand how prepared they are for a changing world and pushing them towards more sustainable practices where relevant to achieve better investment outcomes for our clients.
• Exercising voting rights in line with our Voting Policy and Principles.
• Maintaining and evolving of our suite of proprietary sustainability tools.
• Harnessing sustainability data effectively from both conventional and unconventional sources.

2. Advisory and Integration

Our Advisory and Integration team acts as a central contact point and consultant for a range of stakeholders across the business. This includes advising investment teams on ESG integration best practice; compliance, risk and legal teams on ESG regulation; and working with our regional experts across Asia Pacific, Europe and North America, as outlined under pillar four.

3. Impact

Our Impact team is responsible for scaling our impact product offering in line with best-practice impact principles. The team works closely with investment teams and is responsible for developing and implementing our impact management and measurement framework, including impact assessment and monitoring at transaction and portfolio level, product development, impact strategy and impact reporting.

4. Regional Expertise

Our Regional Experts based in Asia Pacific, Europe and North America have a deep understanding of local market characteristics and nuances, and are responsible for staying abreast of sustainability-related developments. Our experts work with clients and internal teams to navigate and support clients’ ESG aspirations and challenges, utilising Schroders’ proprietary tools and research to develop investment solutions that meet their needs. They also engage with regulators and industry bodies to shape and support the global sustainable finance agenda. Our regional experts are a critical extension of the central team in London as the firm continues to evolve its global sustainable investing strategy.

Governance of ESG Strategies and Policies

We have a number of governance structures in place for decision-making and oversight of our approach to sustainable investment. The Board of Schroders plc (the Board) has collective responsibility for the management, direction and performance of the Group, and is accountable for our overall business strategy. The Group Chief Executive is responsible for proposing the strategy for the Group and for its implementation, supported by the Group’s senior management team and a number of Committees, some of which are noted below.

The Group Sustainability and Impact (GSI) Committee provides advice to the Group Chief Executive on sustainability and impact matters. The Committee considers, reviews and recommends the overall global sustainability and impact strategy, including key initiatives, new commitments and policies for approval. The Global Head of Sustainable Investment and Global Head of Corporate Sustainability are members of the Committee and report to the Board.

The Sustainability Executive Committee (ExCo) develops and oversees the delivery of our Group-level sustainable investment management strategy. The ExCo also advises on the development of our sustainability and impact investment and product frameworks. The ExCo has senior representation from across the business including Investment, Client Group, Wealth Management, Schroders Capital and Corporate Sustainability.

The Group Regulatory Oversight Committee (GROC) oversees the progress of sustainability regulatory change programmes, as well as facilitating the monitoring of emergent sustainability regulations and ensuring we have appropriately determined the impact on our Group sustainability strategy and supporting operations. The GROC receives input on planned or potential sustainability-related regulation from our Public Policy and Compliance teams, which actively engage with relevant regulators, industry trade associations and other bodies in our key markets of the UK and EU. Once the business implications of new legal and regulatory requirements are defined, the relevant sustainability regulations programme workstreams deliver the necessary change to our business operations. The GROC oversees the progress of the programme, including monitoring and mitigating associated risks and issues. Where necessary, risks and key issues from the GROC can be escalated to the Group Risk Committee for resolution.

Certain Schroders entities, businesses and Investment teams also have their own committees which consider their sustainable investment activities. For example, the Private Assets Sustainability and Impact Steering Committee (PA S&I SteerCo) develops and oversees the implementation of the Private Assets Sustainability and Impact strategy. In addition, the Wealth Management Sustainable Investment Committee (WMSIC), a sub-committee of the Wealth Management Investment Committee (WMIC), has delegated responsibility for recommending Wealth Management's Sustainability models, as well as providing investment strategy and direction for client portfolios that are linked to the sustainable models.

Alongside our central Sustainable Investment team, sustainable investing is also overseen and delivered by dedicated teams and expert individuals embedded throughout the firm (including across Investment teams and Client Group functions).

Industry Involvement

We have a long-standing commitment to support and collaborate with several industry groups, organisations and initiatives to promote well-functioning financial markets.

Our key stakeholders include exchanges, regulators and international and regional trade associations. For example, Schroders is a member of trade bodies such as the Investment Association in the UK, the European Fund and Asset Management Association (EFAMA), the Asia Securities Industry and Financial Markets Association (ASIFMA) in Hong Kong and the Securities Industry and Financial Markets Association (SIFMA) in the US. Through this participation we share our insights to support the development of policy recommendations, share best practice and build coalitions of like-minded market participants to advocate for better functioning markets.

Our activity with policymakers aims to help them ensure that the measures they take support businesses and provide clear direction. By monitoring and influencing regulatory initiatives at their inception, we aim to support the development of a business environment which is conducive to Schroders’ clients’ best interests.

We aim to engage with the regulatory environments in which we are operating and raise awareness on sustainability matters. We believe well-designed regulation is an important cornerstone to promoting healthy markets and have asked publicly that policy makers support sustainable finance legislation and regulation and deliver on commitments, including around climate mitigation.

We consider this to be key in improving responsible investment standards across sectors, establishing a consistent dialogue with companies, and in promoting the ongoing development and recognition of sustainability and Environmental, Social and Governance (ESG) topics within the investment industry. A full list of organizations and initiatives of which Schroders is a member or signatory is available here: https://www.schroders.com/en/global/individual/corporate-transparency/working-with-policy-makers/memberships/

Literature

• Fund factsheet
• Fund overview & Literature

Important Information
This document is addressed to the intended recipient for its rating purpose in the fund vehicle(s) mentioned only. This is not a marketing document.
Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.
Past Performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.
Schroders has expressed its own views and opinions in this document, and these may change.
This document may contain "forward-looking" information, such as forecasts or projections. Any forecasts stated in this document are not guaranteed and are provided for information purposes only.
The information contained herein is believed to be reliable. Where third-party data is referenced, it remains subject to the rights of the respective provider and must not be reproduced or used without prior consent.
Issued by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registration No 4191730 England. Authorised and regulated by the Financial Conduct Authority.
Issued in September 2025. 06349.

Last amended: 02/01/24 11:29