HSBC Sharia Fund Investigated Over MilitaryLinked Investments

Published 20h ago · Latest report 2h ago · Investigation

Affects United Kingdom · Covered in 2 countries

AI summary36s readNegative

HSBC faces review over Sharia fund investments in military-linked firms.

HSBC faces scrutiny after a Sharia-compliant fund holding $9 billion invested over $100 million in companies tied to Israel's military. UK workplace pension schemes raised concerns over the inclusion of controversial defense firms, prompting a review of holdings like Palantir.

The fund sizeThe Sharia-compliant fund managed by HSBC totals $9 billion in assets.
The investmentHoldings linked to the Israeli military exceeded $100 million in shares.
The benchmarkThe fund tracks the S&P Shariah index, raising questions about compliance filters.

Why it matters

Islamic finance products must strictly avoid companies involved in military equipment, weapons, and defense sectors to comply with Sharia law. When funds marketed as ethical or religious instruments invest in controversial defense contractors, it sparks regulatory and investor backlash.

Timeline2

Oct 19Reports revealed HSBC invested millions from a Sharia fund in firms linked to Israel's military.
Oct 20HSBC began reviewing its Palantir holding after UK pension schemes raised concerns.

By the numbers2

$130shares in firms tied to Israel's military

$9Islamic fund assets

How outlets cover it

What outlets agree on

HSBC invested tens of millions of dollars from an Islamic fund into companies connected to Israel's military, triggering concerns from pension schemes.

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