MacKenzie Launches Halal Mutual Fund for Ethical Investing

Mackenzie Financial has made a groundbreaking move in the Canadian investment landscape with the launch of its Shariah Global Equity Fund, marking the country’s widely accessible halal mutual fund. This innovative product, unveiled on February 22, caters specifically to the financial needs and ethical considerations of Muslim Canadians by adhering strictly to Islamic investment principles.

Islamic finance differentiates between halal (permissible) and haram (forbidden) activities, guiding Muslim investors away from industries associated with pork, gambling, weapons, alcohol, and tobacco. The Mackenzie Shariah Global Equity Fund ensures compliance with these principles, offering a viable investment option for those seeking to align their financial activities with their faith.

The initiative represents a significant milestone, as noted by Hash Assad, a senior financial consultant with IG Wealth Management, who highlighted the critical need for such products in Canada. Despite the presence of over 4,000 mutual funds in the market, the lack of transparency regarding constituent companies has historically left Muslim investors with limited options. The introduction of this fund by Mackenzie, a prominent asset management arm of IGM Financial, is a response to a long-standing gap in the market.

The fund has received certification from the Shariah advisory board of Ratings Intelligence, ensuring its operations remain within Islamic law. Managed by Mackenzie, the fund selects investments from an approved list within the Dow Jones Islamic Market World Index, as explained by Jeff Ray, Mackenzie’s Vice President of Product Development. Ray expressed optimism about the fund’s growth, projecting assets under management to reach between $30 million and $50 million by the end of 2024.

In addition to offering a 100% equity-based Shariah fund, Mackenzie is exploring the potential for fixed-income and balanced products to meet the diverse needs of Muslim Canadian investors. The aim is to provide a range of portfolio solutions, from pure fixed income to balanced options, enabling personalized investment strategies based on individual risk profiles and investment goals.

The launch also included two other financial products: the Mackenzie World Low Volatility ETF and the mutual fund investing in this ETF, both designed to offer global investment opportunities with a focus on stability.

Simultaneously, Lester Asset Management announced the inception of Canada’s first biodiversity fund, the Lynx Global Diversity Fund, in Montreal. This fund seeks to invest in companies promoting environmental sustainability, climate action, and biodiversity, underscoring a growing trend towards ethical and responsible investing in the Canadian market.

These developments reflect a broader shift in the financial sector towards inclusivity and sustainability, catering to the diverse needs and values of investors across Canada.