Exchange-traded product (ETP) provider Source has gained Shariah approval for its platinum and palladium ETCs (exchange-traded commodities), which allow investors to gain exposure to the precious metals.
The products were judged to comply with Islamic law by a panel of scholars overseen by Amanie Islamic Finance Consultancy and Education, which advises the industry on Shariah-compliant finance.
Source's gold and silver ETCs have already received Shariah approval. The firm said the four products have $1.7bn (€1.2bn) in total assets, which are backed by reserves of the precious metals held by JP Morgan Chase Bank.
Source CEO Ted Hood said: “Given the strong demand from the Middle East region for our physical precious metals offering, we have worked hard over the past months to deliver to our clients Shariah-compliant physical precious metals products for the growing Islamic finance market.”
©2011 funds europe