SWIP wins £20m Shariah emerging markets mandate

Scottish Widows Investment Partnership (SWIP) has been appointed by Russell Investments to manage a £20 million emerging market equities portfolio in accordance with Shariah principles.

This portfolio will form part of the Russell Jadwa Shariah fund range, which was jointly launched by Russell and Jadwa Investments in January 2008. This latest appointment further endorses SWIP's capability as an industry leader in managing emerging market equities.

Russell is a global leader in multi-manager investing, while Jadwa is a world-class investment bank rooted in Islamic values and committed to providing customised, Shariah-based financial solutions.

Based on its in-depth fundamental research, SWIP will identify the best emerging market opportunities within a Shariah compliant universe. The portfolio will consist of between 25 and 40 stocks which capture the best Shariah compliant research ideas of SWIP's Global Emerging Markets team. The team invests over a three-year horizon backing its convictions with extensive due diligence.

Commenting on this win, Ominder Dhillon, Head of SWIP's UK Institutional Business said: "Our appointment by leading Multi-Manager, Russell Investments, confirms the continued success of SWIP's Global Emerging Markets team. This mandate highlights SWIP's flexibility in managing bespoke client requirements and acknowledges our expertise and excellent track record in managing emerging market equities.

"These are exciting times for emerging markets which offer investors a number of compelling stock picking opportunities. While the majority of emerging markets have not escaped the global liquidity crisis unscathed, there have not yet been any material changes in the fundamentals of emerging market economies and the factors underpinning growth remain very much in place. With our longer term approach to investing and our bottom up stock picking skills, SWIP is well positioned to deliver consistent superior performance for our clients. We look forward to working closely with Russell and Jadwa."

SWIP boasts one of the strongest and most experienced emerging market equity teams, whose capability has consistently been endorsed both by clients and consultants at a domestic and international level. Mohammed Zaidi, one of SWIP's highly regarded emerging market fund managers, with over 12 years experience in this asset class, will manage the SWIP GEM Shariah portfolio. He will seek to outperform the Dow Jones Islamic Market World Emerging Markets Index.

This latest appointment highlights the continued interest from investors in SWIP's Global Emerging Markets team, and reflects investor appetite to seek opportunities in this asset class.