Our investment philosophy is composed of six key principles as follows:
How we achieve your financial goals
How we invest your money
How we manage your money
We want you to achieve financial success through positive values and good ethics. Therefore, we take into account environmental, social, governance (ESG) and ethical issues in our investment process of research, analysis, selection and ongoing ethical monitoring of investments.
We believe such investments will not only appeal to the socially responsible investors but also to people of various faiths. Adherence to these principles means that the investments offered are compatible with the teachings of the Islamic faith, therefore are Sharia compliant.
A summary of our investment values is provided below. For complete details on our investment screening criteria, please read our Ethical Investment Policy Statement.
Examples of our negative and positive screening criteria are shown below:
Exclude investments involved in alcohol production, distribution, promotion or retailing. For e.g. brewery, pubs, bars, clubs.
Exclude investments involved in tobacco production, distribution, promotion or retailing.
Exclude investments that are involved in gambling or mainly involved in production, servicing, supporting and promoting gambling activities. For e.g. betting shops, casinos or amusement arcades.
Exclude provider of critical services to, or own or operate, nuclear facilities.
Exclude manufacturers and suppliers of armaments, nuclear weapons or associated products.
Exclude companies involved in animal exploitation.
Exclude providers of adult entertainment services, its distributors, its supporters and promoters. For e.g. TV channels, magazines, newspapers
Entertainment and media
We believe most of the entertainment industry has negative impact on society and promotes many negative things such as voilence, drugs, nudity and other negatives. Therefore, we exclude investments or companies involved in adult entertainment, cinema, broadcasting, gambling, music, video games and art. Broadcasting news and publishing organisations mainly engaged in deliberate misinformation, inciting religious or race hatred, creating division between societies and preventing social cohesion will also be excluded.
Companies consistently damaging environment and those involved in activities which are commonly held to be environmentally unsound are excluded. Companies in breach of internationally recognised conventions on biodiversity and companies in energy intensive industries which are not tackling the issue of climate change are excluded.
We will endeavour to support investments that have a beneficial impact on society and the planet e.g. green energy etc.
Fair treatment for all
We will not provide investments that do not uphold fair trade – workers, suppliers and all stakeholders must be treated fairly.
Safe working environment
Exclude companies that do not have a workplace health and safety policy that meets the minimum standards set in the relevant jusrisdiction or continously breach the minimum safety standards.
We are committed to seeking high standards of corporate governance at the companies or funds which we make available for investment. A number of factors are considered, including but are not limited to areas such as employee relations, gender diversity in the boardroom, balance of power between CEO and board of directors, environment reporting and, of course, executive remuneration policies. The application of corporate governance policy reflects the power that you have as an investor. Maintaining corporate governance checks helps minimise investment risk and create a positive impact by incentivising companies to maintain higher standards of practice.
Banks and financial institutions
We believe the role of money should be purely as a store of value and medium of exchange and not used as a commodity in its own right, traded by applying interest to it. Therefore, we exclude banks and other financial institutions involved in interest bearing borrowing or lending. For e.g. conventional banks, payday loan companies etc.
Highly indebted investments
The shares & investment funds we provide, limit the amount of interest based borrowing to a maximum of 33% of the total capital in the underlying businesses.
We will exclude provision of investments in speculative instruments e.g. conventional derivatives, CFDs, spread betting, short selling etc.
Oppressive regimes, corruption and terrorism
Investments or companies directly involved in or supporting and promoting oppressive regimes, corruption and terrorism will be excluded.
Exclude investments in pork and non-halal food.
We combine both top-down approach and bottom-up approach to formulate our investment strategies and construct portfolios based on investor objectives and risk profile.