How we select investments for your portfolio
We are one of UK's most prominent Investment Manager dedicated to Ethical and Sharia compliant investment management.
To build efficient investment portfolios, we do a number of things including the following:
Ethical and Sharia compliance screening
At the initial stage of the investment process, all available investments are screened for Ethical and Sharia compliance based on criteria specified in Ethical Investment Policy Statement (EIPS). We have an Ethical Committee that determines the screening criteria and meets bi-annually to review investments and monitor adherence to set screening criteria.
Determine suitable asset allocation for each portfolio
We believe getting the asset allocation right is a key determinant of investment performance. Simply put, asset allocation is all about deciding what percentage of portfolio should be invested into equities, property, bonds or alternatives for each given risk profile. In general, a high risk portfolio will have relatively more invested in equities compared to a low risk portfolio that will have more invested in bonds and cash. We look at various macroeconomic indicators including economic growth, inflation, interest rates, currency movements, political developments and global trends to help us identify key investment themes and opportunities in various sectors, industries or economies. This helps determine our initial asset allocation pararmeters for various investment strategies.
Due diligence on each investment
Our recommended portfolios consist of diversified range of collective investments including funds and ETFs that we believe helps achieve optimum results based on a given risk profile.
We perform thorough due diligence on each investment we select as part of the portfolio. As a starting point, we review all ethical investments based on a number of important factors. Only after rigorously considering these factors do we feature them in a portfolio we believe should serve you well as an investor.
As part of our due diligence on funds, broadly, we look at a number of factors, including the following
- Fund objectives
- Fund investment strategy, holdings and investment allocation
- Investment performance
- Track record
- Fund manager and investment team
- Research and investment selection process
- Liquidity and risk management
- Sharia and ethical compliance and monitoring
- Fund charges
- Impact of external factors including economic environment or compliance on fund strategy
Moreover, we don’t simply rely on research or information supplied by the fund provider. We like to question the management team and meet with them where appropriate to ensure we have a clear understand of the fund and whether it can add value for our clients, along with how best the fund fits within the overall portfolio we create for each risk profile.
Each portfolio aims to provide the best possible return for the risk targeted. Generally speaking, the more risk you take the greater the potential return but the greater the potential loss.
We have an investment committee that meets at least quarterly to review the performance and composition of our investment portfolios.