Could you provide a brief journey of how you arrived where you are today?
I joined SWIP nearly four years ago to head up the global developed market team. I have worked for nearly 25 years as a global investor with specific experience looking at international equities. Academically, I studied as a biochemist at University of Oxford, sparking my interest in the biotech sectors which I still analyze at SWIP.
What does your role involve?
I oversee a fantastic team of 11 investment professionals and three support staff as well as have oversight of SWIP’s global offerings. With GBP7 billion (US$11.4 billion) under management in the global sector, we run a range of funds including Islamic global equity and ethical funds. Personally, as well as having specific responsibility for driving performance across the desk, I also act as an analyst for the biotech, med-tech and pharmaceuticals sectors.
What is your greatest achievement to date?
Launching the Islamic Global Equity Fund to the UK retail investment market four years ago was certainly a highlight for me. It was great to be involved in both developing the fund and promoting it to the broader Islamic community. With over three quarters of the two million Muslims in the UK seeking access to financial services products that align with their beliefs, it was very rewarding to tailor an appropriate solution and take this to the market. SWIP has also become a member of the Scottish Islamic Finance Council UK, underlining our commitment to Islamic finance which is becoming increasingly important in the UK investment market.
Which of your products/services deliver the best results?
SWIP aims to provide every investor with consistently superior returns on investment by adhering to a robust, research-driven investment philosophy. We invest from the bottom up, using our best ideas, driven by focused, quality research. Each investment desk has the flexibility to develop and tailor funds which allows us to offer a diverse range of investment services meeting even the most specialist investment needs for private and corporate investors. For example, both the global emerging markets desk and the global developed markets desk run Islamic products, giving us the opportunity to mold the funds to fit the investor needs.
What are the strengths of your business?
The way we approach investing is integral to the success of our business. Teamwork is vital within SWIP — the fund management teams get together to challenge the investment case for each holding, leading to the creation of conviction portfolios which have a significant bias away from the benchmark. SWIP does not see any value for investors in running active portfolios that mirror the benchmark — each stock that is held is expected to make a difference to the portfolio. On top of this, the overall global nature of SWIP’s business is reflected in the markets we invest in, our client base and also the geographical spread of our business operations.
What are the factors contributing to the success of your company?
One of the most unique factors at SWIP is that all fund managers within the investment teams have combined fund manager and analyst roles, each responsible for a specific sector or industry. They carry out financial analyses including a five-year forward projection on any stocks being considered for inclusion within a SWIP portfolio. This means that the decision making chain is short and that fund managers are accountable for the whole investing process. This is a wider frame of reference than that adopted by many of our competitors, leading to more informed investment decisions.
What are the obstacles faced in running your business today?
Against an extremely difficult economic backdrop, investors have seen disappointing returns in equities, which has obviously had a negative impact on their confidence in the sector. We are now beginning to see new confidence building again, but it will take a considerable amount of education and discussion to get back to where we were. On the Islamic side, the main obstacle lies with raising the profile of the sector. It is important that we can create awareness of our products and their benefits in what is still viewed as a relatively niche sector.
Where do you see the Islamic finance industry in, say, the next five years or so?
Broadly, I see Islamic finance expanding and becoming more mainstream. There is still a great lack of understanding amongst non-Islamic advisors in the UK. The ethical and moral stance that Islamic finance takes makes it the perfect ethical vehicle for investments. Indeed, as we saw in 2008 and 2009, the lack of exposure to financials protected these funds in the downturn. I would hope that Islamic finance will see a move to products. I am very excited about the prospects for Islamic finance and products and believe that we will see more innovation and solutions in the UK. I also hope that we will see the UK develop as a center of excellence for Islamic finance, a vision that the Islamic Finance Council of the UK is pushing very hard.
Name one thing you would like to see change in the world of Islamic finance.
Personally, I would like to see the Financial Services Authority engaging with scholars to provide a clear framework of guidance around the sale and regulation of Islamic products in the UK.