Aviva has launched a new Shariah lifestyle investment strategy which will include a suite of funds compliant with Islamic principles.

The company said the new strategy will enhance its existing Shariah offering.

It will provide workplace pension members with a universal de-risking option as well as a target drawdown glidepath, Aviva said.

The funds and de-risking mirror Aviva’s my future and my future focus strategies to create consistency across its investment proposition, the company said.

It said Islamic investment principles are built into the new funds, while automated de-risking ensures the appropriate amount of risk is taken throughout the pension journey.

Umar Yaqoob, workplace investment proposition manager at Aviva, said: “Historically across the market Shariah investors have broadly had to make their own investment choices and have relied on a single fund solution without access to de-risking.

“Solutions in the market are starting to evolve, but it’s important these go beyond just moving investments from a higher risk to a lower risk fund and consider the different ways people will access their pension.”

He said the firm’s new investment strategy will offer members the choice to have a hands-off approach from the point they join their pension scheme through to retirement or select a lifestyle strategy that aligns with how they want to access their pension savings at retirement.

The new strategy aims to address the growing demand for Shariah-compliant funds.

Mr Yaqoob said: “We support more than 4 million members across 26,000 corporate pension schemes and we recognise the need to offer a diverse range of investment solutions to mirror an inclusive society.”

The new range of funds have been created using HSBC Asset Management (HSBC AM) funds and are available for self-selection by members, namely: Aviva Pension HSBC Islamic Global Equity Index, Aviva Pension HSBC Shariah Multi Asset and Aviva Pension HSBC Global Sukuk Index.

The funds are subject to ongoing supervision by the Global Shariah Supervisory Committee, and they invest in a diverse range of assets such as UK and international equities, Sukuk bonds, commodities, and property.

Olga de Tapia, global head of ETF and indexing sales, HSBC Asset Management, said: “The launch of our Islamic investment range was driven by our ambition of providing faith-based investors with the same range of investment opportunities as conventional counterparts.”

Aviva said it has already welcomed its first investors to the new range and said it plans to make the options more widely available to workplace pension schemes and their members over the coming months.