Australia’s first sukuk mandate adds diversification to a Shariah-compliant responsible investment super fund

• Shariah screens limit the number of defensive assets available for asset managers in narrow  markets where  financial institutions represent 25-30% of the market
  
  
• Investment managers can offset some of the additional risk by using ESG integration strategies, as well as investing in global sukuk
  
  
• The institutionalization of Shari'ah standards gives Islamic asset managers a  leg up compared to ESG in terms of clarity about how their investment  process is affected by their approach to responsible finance