Baillie Gifford opens US$2.79 million Islamic fund to Singapore and Hong Kong investors
Baillie Gifford, an Edinburgh-based investment manager, has opened its Islamic Global Equities fund to selected investors in Singapore and Hong Kong. The US$2.79 million vehicle targets long-term growth through a concentrated portfolio that follows Shariah principles. Access is limited to accredited and institutional investors in Singapore and professional investors in Hong Kong.
The distinction matters because this is not a retail launch. These investor categories generally cover institutions and financially sophisticated clients, leaving most individual savers outside the immediate addressable market. The fund’s opening size is also modest for a global equity product, making early platform support and institutional allocations commercially important.
A narrow distribution opening
The Asian expansion uses an existing Irish undertaking for collective investment in transferable securities, commonly called a UCITS fund. The Central Bank of Ireland approved the sub-fund on 21 December 2021, and Baillie Gifford records its launch date as 10 May 2022. The firm’s partnership seeded the strategy before it was offered more widely in 2026.
For Asian allocators, the Irish UCITS structure supplies a familiar regulated framework, independent depositary arrangements and standardised fund documents. It does not remove local selling restrictions. Singapore and Hong Kong investors must still qualify under the categories set for this offering.
The structure may simplify due diligence for private banks, family offices and institutional consultants that already use European funds. However, commercial reach will depend on which Asian platforms and distributors add the relevant share classes. Baillie Gifford says share classes can be created on request.
Active selection raises the stakes
Managers Tolibjon Tursunov and Saad Malik plan to hold 30 to 50 companies, using bottom-up stock selection with little regard to an index. This differs from a screened index fund, which usually begins with a broad benchmark and removes companies that fail prescribed business or financial tests.
Baillie Gifford instead selects growth companies through fundamental research, then applies Shariah and environmental criteria throughout its process. The fund uses the MSCI ACWI Islamic Index as its benchmark and aims to outperform it by 2% a year over rolling five-year periods. This target is an objective, not a guaranteed return.
As of 30 June 2026, its four largest positions were Alphabet, Shopify, Amazon.com and Microsoft. Samsung Electronics was fifth, while Apple ranked sixth. These holdings show how Shariah screening can still leave substantial exposure to global technology and digital-commerce businesses.
Concentration increases the effect of each decision. Baillie Gifford warns that the portfolio may experience large short-term price moves. Foreign-currency exposure, emerging-market trading conditions and the narrower eligible universe add further risks.
Governance and traction questions
The firm receives input from the Shariyah Review Bureau and applies standards set by a Sharia Supervisory Board. If an investment later becomes non-compliant, the manager and board determine how to sell it and purify the fund. Disposal at an unfavourable time could produce a loss.
Tursunov says Islamic equity funds represent less than 1% of the global equity universe and that many resemble screened indices. Baillie Gifford is betting that active research and engagement with scholars can provide a more differentiated product. This approach also creates additional governance work because compliance must be monitored after purchase.
The five-year horizon gives managers time for company growth to develop, but it also signals that the fund is unsuitable for short-term cash needs. Investors must tolerate market declines and periods when its concentrated growth style trails the benchmark.
The next evidence of traction will come from assets rather than positioning. Allocators should seek clarity on the seed investors, Asian distribution partners and the timetable for wider regional access. They should also confirm share-class fees, minimum subscriptions and the detailed purification policy. Baillie Gifford says the B accumulation share class has a temporary fee reduction, but the Asian offer’s precise charges require confirmation.