How we invest

Straight from our portfolio management team on how they invest Islamically.

The creation of our Hejaz

Step one
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Step two
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Step three
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Firstly, our Islamic investment experts analyse companies in Australian and overseas share markets (as well as gold and property investments) to create a universe of stocks that passes our strict Islamic investment criteria.

Then, our investment team uses this Islamically screened universe to create the Hejaz Islamic Super portfolio. The investment team selects the Islamic stocks they believe will produce superior financial returns.

Finally, our portfolio team actively looks for investments that will yield positive returns whilst monitoring current investments.

4 mandatory investment screenings for sharia compliance

Global Ethical Fund Video

Tainted Income

Total debts (non-Shariah compliant) should be less than 33% of the equity.

Debt/Market Cap

A company’s debt must not exceed 30% of thier market cap.

Liquidity

Account receivables should be less than 49% of total assets.

Business Activity Screens

The below business activities are not permissible under the Sharia.

“The fun thing about Islamic investment is that once you apply the sharia screening, 50,000 globally listed companies that are available to invest in, becomes 5,000. And that is a challenge only us Islamic portfolio managers can understand and manage.”

– Hakan Ozyon, Senior Portfolio Manager

Over 1/3 of your super may fund industries against our values

The receiving of interest is strictly forbidden in Islam. If a positive, fixed, predetermined rate is attached to the maturity (i.e. a guaranteed rate regardless of the performance of the investment), it will be considered riba and is prohibited.

Unfortunately, most superannuation funds invest on average 34% of your super in interest-bearing investments, while the remaining investments are conducted without any regard for Islamic investment principles.

Conventional

Banks

Alcohol

Media

Interest

Military

Pig products