The SPI Shariah Investment Process

Muslim investors should ensure the income they earn adheres to the strict dictates of The Shariah. Their earnings should be pure and choice. To meet the needs of this important investment community, Sanlam Private Investments has introduced a tailor-made investment solution that complies with Shariah guidelines. These guidelines prohibit financial involvement with companies such as conventional banks, casinos and alcohol producers. Another key element of Islamic investing is the avoidance of interest, or Riba.

To ensure Shariah compliant investment, it is essential to engage with an investment advisor of faith, with all the necessary experience and industry expertise. Sanlam Private Investments brings clients a potent combination of certified Shariah compliance, and the impressive track record of a world-class investment brand.

Step by certain step

Before an investment can be included within the Sanlam Private Investments’ Shariah solution, it is thoroughly evaluated:

1. Companies are screened to confirm their products comply with Shariah standards.
2. Ratios such as debt to equity are measured to ensure they’re within acceptable limits.
3. Riba is avoided.
4. The correct financial instruments (largely equities) are confirmed.
5. The investment’s overall soundness is then critically reviewed.
6. Only then is it accepted as being Shariah compliant.

7. Auditing and income purification continue on a regular basis.

Compliant investments:	Non-compliant investments:
Technology Healthcare Consumer products Basic industries Mining and manufacturing Energy Transportation Telecommunications Natural resources Construction Education Selected utilities Selected real estate, and  Real Estate Investment Trusts (REITS) Commodities and agriculture Information technology	Banks Insurance Brokerage and securities firms Alcohol Gaming and casinos Hotels Musical instruments Entertainment, movies, theatres and film distribution Pork and meat packing industries Home loan companies Tobacco Pornography Amusement and recreation Arms and weaponry Advertising and media

Careful management is crucial

The Sanlam Private Investments’ Shariah solution is provided only through equities and a limited core of acceptable financial instruments. These include common stock (from companies that have passed Shariah screening), exchange-traded funds (ETFs), compliant Real Estate Investment Trusts (REITS) and cash.

Investments that are avoided include preferred and convertible stock, individual and index options, futures and swaps, money market funds, bank certificates of deposit, bonds and all conventional fixed-income instruments.

No interest is earned on cash balances. Any interest and impermissible income will be purified during the audit process and donated to charity.

The SPI Shariah Supervisory Board

The independent Shariah Board comprises senior Ulama, chaired by Mufti Ahmed Suliman. A former member of the Fatwa Department and Judicial Committee of the Jamiatul Ulama in KwaZulu-Natal, Mufti Suliman is now also a member of the Markaz Alnoor lil Iftaa wal Irshaad (Centre for Islamic Verdicts and Guidance) in Pretoria.

Mufti Ahmed Suliman is assisted by Mufti Zubair Bayat, director of the Darul-Ihsan Research and Education Centre and currently an advisor to numerous Islamic bodies.

Also represented is Sheikh Mohammad Tauha Karaan, the Founder and Principal of Dar al-’Ulumal-’Arabiyyah al-Islamiyyah. Sheikh Karaan is a long-standing member of the Fatwa Committee of the Muslim Judicial Council in Cape Town.

The Shariah Board meets with the Sanlam Private Investments team on a regular basis to review the current and proposed Shariah holdings.

The SPI Shariah Investment Team

The SPI Shariah investment solution will be provided through the team of investment professionals at Sanlam Private Investments. The team enjoys a combination of first-hand Islamic knowledge and experience of Shariah investing and depth of experience and skill across the entire investment spectrum. Led by Alwyn van der Merwe, Director of Investments, the investment team has an impressive track record of solid and consistent return to clients.

The SPI Shariah portfolio is managed by Suleman Khan, a devout Muslim, with over 17 years' investment experience and a deep understanding of Shariah investing.

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Fees

Fees are calculated monthly, on a sliding scale. Sanlam Private Investments does not charge any take-on fees, and rates remain highly competitive.

For more information:
Download our product brochure here.

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