How we invest
Straight from our portfolio management team on how they invest Islamically.
The creation of our Hejaz
4 mandatory investment screenings for sharia compliance
Total debts (non-Shariah compliant) should be less than 33% of the equity.
A company’s debt must not exceed 30% of thier market cap.
Account receivables should be less than 49% of total assets.
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.
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