Saudi Arabia’s Sedco Capital has launched a new investment strategy that combines Shariah investment principles with ethical investing.
Called Prudent Ethical Investing (PEI), the new investment strategy will focus on environmental, social, governance (ESG) factors while investing.
Sedco, which manages $1.8bn worth of Luxembourg-listed funds, said that the strategy will seeks to avoid high financial risk and aim to enhance long-term risk-adjusted returns.
SEDCO Capital CEO Hasan al Jabri said: “We have pioneered a Prudent Ethical Investment approach that ensures we invest in companies that have strong governance, clear structures, and a prudent level of leverage.
“In short, while we target strong returns and performance, we ensure that our investments benefit society, comply with Shariah and ESG investment principles, while avoiding excessive leverage and non-transparent investment structures.”
SEDCO Capital was the first Sharia compliant asset manager to become a signatory of the United Nations Principles of Responsible Investing (UNPRI), an initiative started by former UN Secretary General Kofi Annan.