HSBC Islamic Fund Purchased Military-Linked Company Shares
Investors in halal pension schemes may be affected by these holdings identified in the first half of 2026.
Updated on Oct. 14, 2026 in Investing
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During the first half of 2026, the HSBC Islamic Global Equity Index Fund acquired over $100 million in shares of companies linked to the Israeli military. This included a $38 million stake in Palantir, impacting portfolios held by most halal pension schemes in Britain.
Why it matters
These investments highlight the complexities of aligning broad equity index funds with specific ethical or religious investment principles. The transparency of underlying fund assets remains a key consideration for individuals prioritizing faith-based financial mandates.
The fund purchased $100 million in military-linked equities during the first half of 2026, including a $38 million position in Palantir. These figures represent significant allocations within the portfolios of most halal pension schemes in the United Kingdom.
The players
HSBC Islamic Global Equity Index Fund
An investment vehicle that manages pension assets based on Islamic investing principles.
Palantir
A United States-based technology firm specializing in big data analytics.
The details
The HSBC Islamic Global Equity Index Fund builds portfolios by selecting companies that align with specific Islamic investing principles. However, the purchase of these shares in the first half of 2026 demonstrates how large index-based funds may overlap with entities that do not meet certain ethical filters. For investors, this shift underscores the importance of reviewing the exact composition of underlying indices within their pension schemes.
Timeline
First half of 2026: Fund purchased $100 million in military-linked company shares.
October 13, 2026: Hyphen reported the fund purchased Palantir shares.
Money Landscape
This development challenges the typical application of Sharia-compliant investment mandates within global equity indices. It highlights the growing tension between broad index-based tracking and the specific ethical screens expected by religious investors.
If you hold a halal pension scheme in Britain, review your fund's latest holdings report to verify alignment with your personal values. Speak with a qualified financial professional to determine if your current investment vehicle aligns with your long-term ethical goals.
The takeaway
Investment indices may include unexpected entities, making regular asset disclosure reviews essential for value-aligned saving. Consult your plan administrator to request a complete list of current holdings and cross-reference them against your personal ethical guidelines.
Further reading
For more on evaluating your portfolio, visit Investing.
Source note: This article includes information reported by Middle East Eye.
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