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StoneCross Capital Launches Shariah-compliant Longevity-linked Investment Platform

New platform allows Islamic investors to diversify holdings using an uncorrelated asset class

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

Reportedly, StoneCross Capital’s Shari’ah-compliant platform will enable an investor to customize a financial structure that would couple an existing or newly acquired Shari’ah-compliant asset with longevity assets. The company has said that the percentage of longevity assets would over-collateralize the entire structure and would ensure repayment of the principal and profit of the certificates without relying on the performance of the underlying assets.

StoneCross Capital has added that its financial structure can help an investor to lower their volatility as well as recover their losses in the distressed asset over time. The company added that it is providing investors a solution on how to recapture funds that have been marked down due to the economic meltdown with a long-term return using its financial platform.

Todd Gillespie, chief investment officer at Stone Cross Capital, said: “By elevating its own standards and earning Shari’ah 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.”