Shari’ah Governance
The Global Iman Fund follows a disciplined process, with independent Shari’ah experts reviewing the investment universe and confirming ongoing compliance with Islamic principles.
Independent Shari’ah oversight
Specialist external advisors review the Fund’s investment universe and issue a formal opinion on Shari’ah compliance.
External Shari’ah experts
The Fund’s Shari’ah compliance is overseen by independent advisors led by Ratings Intelligence, a specialist Islamic research and advisory firm.
External Shari’ah experts
The equity universe is drawn from Dow Jones Islamic Market Titans 100 index, which applies Shari’ah screens to a global group of large, established companies across the US, Europe and Asia.
Regular reviews & certification
The advisors review the portfolio and screening methodology on a periodic basis and provide written Shari’ah certification for the Fund, which is made available to investors.
Screening methodology
The Fund invests only in companies that meet both business-activity and financial-ratio criteria set by the Shari’ah advisors.
Business activity screens
Companies with significant involvement in non-permissible activities are excluded from the investable universe. Examples include:
Certain Islamic financial institutions (such as Islamic banks and takaful companies) may be treated separately in line with the advisors’ guidelines.
Financial-ratio and income screens
In addition to sector exclusions, each company is reviewed using financial-ratio tests and income screens developed by the Shari’ah advisors. These tests help ensure that:
- • Interest-based debt and cash levels remain within set limits.
- • Receivables and other balance sheet items are kept within acceptable ranges.
- • Any incidental non-permissible income stays below defined thresholds and is subject to purification.
The precise ratios and thresholds are defined by the Shari’ah Supervisory Board and documented in the Fund’s Shari’ah certificate and index methodology.
Purification of non-permissible income
Any incidental non-permissible income identified is removed for the benefit of the unitholders.
Identifying amounts
Where a company earns a small portion of income from non-permissible activities (for example, interest earned on cash balances), the portfolio manager will identify that income for purification purposes.
Donation & reporting
Any non-permissible income identified for purification is set aside and donated to charity.
Ongoing monitoring & review
- 1
Screened universe
The starting universe is a Shari’ah-compliant index and list of securities screened by the Shari’ah advisors.
- 2
Pre-trade review
Portfolio changes are made within this screened universe and monitored.
- 3
Ongoing oversight
Corporate actions, index changes and financial updates are reviewed on a regular basis.
Certificates & key documents
Latest Shari’ah certificate
Signed confirmation from the Shari’ah advisors that the Fund is managed in accordance with Islamic principles as of the stated date.
Fund prospectus
Formal legal disclosure for the Fund, including investment strategies, risks and governance structure.
Frequently asked questions
Who provides the Shari’ah opinion for the Fund?
How often is the Fund reviewed for Shari'ah Compliance?
Does the Fund invest directly in banks or insurance companies?
Where can I see the Fund rules?
Have questions?
Feel free to get in touch with our team and learn more the Global Iman Fund and rules around its Shari'ah governance.