Shariah Principles

Shariah is a set of Islamic religious laws that governs aspects of day-to-day life for Muslims, in addition to religious rituals.

Shariah-compliant investing draws on the expertise of Islamic scholars to make sure the strategy only invests in businesses that operate within the principles of the Islamic faith.

• No alcohol
• No tobacco
• No pork
• No interest-bearing finance
• No gambling
• No weapons or defense

The Core Pillars

Riba - Investment strategies must prohibit any interest income.

Gharar - Investments must exclude derivative heavy structures such as short-selling.

Maysir - Any participation in speculative or ambiguous investing is prohibited.

Social Stewardship - Capital is directed away from industries that produce individual or societal harm.

Compliance Procedure

To help ensure compliance, Shariah-compliance investment funds typically retain the services of an Islamic finance advisory board.

This board provides guidance and oversight on the compliance of financial products, services and transactions with the principles of Shariah.