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StoneCross’ Longevity-linked Investment Platform Earns Shariah Compliance

Advances the insurance-linked longevity asset class as an alternative investment solution to institutions with limited Shari'ah-compliant investment options

StoneCross Capital has been approved as the first US-based asset management company that creates and customises Shariah-compliant insurance-linked longevity products, and provides advisory services to global financial institutions with longevity product initiatives directed to Islamic investors.

The company claims that it has taken its management strategy and product design in the longevity asset class and has applied it to the principles of Islamic law. In meeting Shariah legal guidelines, it has created an opportunity for institutions in the Islamic community to diversify their holdings and satisfy future product demands using an alternative asset class that is not correlated to any other asset class in the market.

Todd Gillespie, chief investment officer at Stone Cross Capital, said: “By elevating its own standards and earning Shariah compliance, StoneCross Capital has solidified its commitment to the advancement of the insurance-linked longevity asset class as an alternative investment solution to institutions with limited Shari’ah-compliant investment options.”

StoneCross Capital’s Shariah-compliant platform is expected to enable an investor to customise a financial structure that would couple an existing or newly acquired Shariah-compliant asset with longevity assets. The percentage of longevity assets would over-collateralise the entire structure and would ensure repayment of the principal and profit of the certificates without relying on the performance of the underlying assets, thus effectively protecting the investor’s principal, said the company.