Our Shari’ah offerings include a Shari’ah equity portfolio, a Global Shari’ah equity portfolio and a Shari’ah Balanced Portfolio. Segregated investments make use of existing unit trusts funds (we absorb the associated costs), allowing the investments to be subject to the scrutiny and approval of an independent Shari’ah Board that oversees adherence to the applicable Shari’ah principles.
The portfolios exclude investments in companies whose core business involves dealing in alcohol, gambling, non-halaal foodstuffs or interest-bearing instruments. The portfolios adhere to the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), as interpreted by the Shari’ah Supervisory Board.
The investment process leverages off the approach used in the Managed Volatility fund. As a result, we expect lower volatility portfolios that outperform their respective benchmarks over the longer term
Interest income is stripped out of the unit trust funds on a daily basis as impermissible income, and is paid to the SA Muslim Charitable Trust.