927 Beville Road
Halal investing requires investment decisions to be made in accordance with Islamic principles. As a faith-based approach to investment management, investors often consider halal investing to be a category of ethical or socially responsible investing.
We offer professionally managed investment solutions that help Muslims achieve their life goals while honoring their personal values. We know that our clients have unique financial needs so we provide a full range of investment options.
Islamic principles require that investors share in profit and loss, that they receive no interest (riba), and that they do not invest in a business that is prohibited by Islamic law, or sharia. Before investing in a company, it is necessary to evaluate its business activities and financial statements to determine where its primary revenues come from and how its balance sheet is managed. A company that meets certain criteria would be halal, or permissible. If it does not meet the criteria, it would be haram, or not permitted.
Investments that sharia scholars universally consider unacceptable are companies whose primary business activities violate the core tenets of Islam, including the manufacture or marketing of alcohol; gambling or gaming activities; conventional interest-based financial services; pork and pork products; and pornography. In addition, most sharia scholars advise against investing in tobacco companies.
Islamic scholars have established financial guidelines to determine when a business activity is a core source of revenue and when it is not. For example, the "five percent rule" says that a core business activity is one that accounts for more than five percent of a company's revenue. This reasoning applies to the Islamic prohibition on riba, or interest, as well. If a company's interest-based income or holdings exceed certain limits, then investing in the company is forbidden.
Often, it is not possible to avoid haram business activities. This is acceptable as long as the investment meets the criteria outlined in the Halal Investment Screening. However, Islamic scholars agree that Muslim investors must account for any income derived from riba or other haram sources and then give it away to a charity or someone in need. This process is known as "purification" or "cleansing" of tainted investment income. Scholars also agree that purification of tainted investment earnings should be done anonymously so that the donor receives no residual benefit, such as personal recognition or a tax deduction.
We understand that living a Shari'ah-compliant financial life can be a challenge for Muslims living today in Western cultures, where financial culture and practices do not entirely support the Shari'ah-compliant financial principles of Islam. This is why we created uniquely dynamic asset allocations specifically designed to be socially responsible and meet the requirements of halal investing.
Because everyone’s financial situation is unique, we offer a number of different account types and investment strategies that can be tailored to meet individual goals, timelines and risk tolerances. To achieve the most out of your investment plan, it is important to begin as early in life as possible. The growth of your assets over time can then position you to meet the future with greater confidence.