HSBC Asset Management is reviewing whether to exclude Palantir from its $9bn Islamic Global Equity Index fund after UK workplace pension schemes raised concerns about the controversial US software company’s inclusion. Nest and People’s Pension, representing millions of members, contacted HSBC over Palantir’s presence in the fund, which tracks the S&P Global 1200 Shariah Select Index. In the first half of the year, the fund purchased $38.3mn of Palantir shares.
Palantir faces backlash in Europe due to its ties to US and Israeli defence industries, with governments in Switzerland, Germany, and France rejecting its tools. London mayor Lord Sadiq Khan blocked a £50mn contract with the Metropolitan Police, though his office cited logistics, not ethics. Sharia-compliant funds adhere to Islamic law, but index differences can lead to broad holdings.
HSBC switched the fund’s index in March. Nest and People’s Pension have engaged with HSBC, which stated it will assess whether the fund meets investor expectations. Umer Suleman of the Islamic Finance Council UK reported investor outrage.
Palantir did not comment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing