The firm, which is an example of digitally-driven wealth management, has launched another offering – one that targets the Shariah finance space.

Arta Finance, which is headquartered in the US and Singapore, has globally launched its first Shariah-compliant investment portfolios.

Each portfolio is structured as a satellite strategy – a curated basket of individual stocks built around a specific investment theme.

Shariah finance typically excludes activities deemed forbidden (haram) under Islamic law, such as charging interest on loans, gambling, alcohol and trade in pork-related products. Instead of interest, parties engage in lease arrangements whereby an asset transfers to the lessee at the end of the term; another is akin to a cost-plus financing deal where a lender sells an asset to a borrower at a higher price and pockets the difference as profit. Several Shariah financial instruments, such as forms of bonds, known as Sukuk, have arisen in recent decades.

Arta Finance said its initial suite of strategies includes:

-- FATMAA – Exposure to six US mega-cap leaders in AI, mobility, and cloud infrastructure; 
-- Architects of AI – Companies driving AI infrastructure and enterprise solutions; 
-- Dividend Leaders – US stocks offering stable, Shariah-compliant dividend income; and 
-- Cybersecurity and Digital Protection – Firms securing the global digital economy.

“With the launch of our Shariah-compliant portfolios, faith-aligned investors can now engage with thematic strategies that offer customisation, transparency, and institutional-grade tools – while meeting rigorous standards of Shariah compliance,” Caesar Sengupta, co-founder and CEO of Arta Finance, said. 

Each portfolio comprises stocks certified by the Financial Shariah Advisory & Consultancy, a Singapore-based authority on Islamic finance and a unit of Pergas Investment Holdings. The certification adheres to globally-recognised Shariah screening standards, Arta said. 

Assets are held in investor-owned accounts at BNY Pershing, with liquidity typically within three to five business days.

In addition to direct access for accredited investors, Arta’s Shariah-compliant portfolios are available to financial institutions and advisors worldwide, who can use white labelled versions of the Arta platform or embedded integrations.

Arta said that Islamic finance is projected to grow from $3.38 trillion in 2024 to more than $7.4 trillion by 2033. Meanwhile Global Growth Insights Islamic Finance Market Report highlights a 33 per cent increase in awareness of Shariah-compliant investment tools in the US, Arta Finance said.

Earlier in May, Arta Finance – which in July 2024 obtained a regulatory approval to launch in Singapore – partnered with Income Advisory Financial Advisers. 

IAFA is a wholly-owned financial advisory firm of Income Insurance Limited. The pact will bring investment opportunities and advanced financial tools to Singapore’s accredited investors.

Arta Finance is backed by Peak XV, Ribbit Capital, Coatue, EDBI, and more than 140 figures in tech and finance. IAFA is licensed and regulated by the Monetary Authority of Singapore. The parent firm – Income Insurance – was established in 1970 in the city-state.