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Shariah-compliant Investments

Muslims can invest with peace of mind in our Shariah-compliant solution.

The primary objective of our Shariah investment solution is to provide Shariah-compliant above-average total returns over an investment horizon of three years or more. We do this by investing in quality Shariah-compliant ordinary shares listed on the JSE. This solution is designed to meet the needs of long-term Muslim investors looking for a diversified portfolio of 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 stocks, 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 are purified during the audit process and donated to charity.

How You Benefit From the Shariah Investment Process

Before an investment can be included within our Shariah portfolio, we go through a comprehensive screening process. This process ensures that you can have peace of mind about your investments, without having to spend the time and effort to select and manage appropriate investments yourself. In addition, even when an investment successfully complies with all steps, we provide auditing and income purification on a regular basis.

  • The products of companies included in the portfolio comply with Shariah standards, following our thorough screening process
  • We ensure ratios, such as debt to equity, are within acceptable limits
  • No interest (Riba) is earned
  • The portfolio only includes the correct financial instruments, largely equities
  • You can be assured of the investment’s overall soundness, based on our critical reviews
  • It’s a multi-asset portfolio, which means the overall risk level is lower as investments are diversified

The Independent Shariah Board Supervises the Shariah Solution

The Shariah Board comprises senior Ulama and is chaired by Mufti Ahmed Suliman. Mufti Suliman is a former member of the Fatwa Department and Judicial Committee of the Jamiatul Ulama in KwaZulu-Natal, and 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 advisor to numerous Islamic bodies.

Sheikh Mohammad Tauha Karaan, the founder and principal of Dar al-’Ulumal-’Arabiyyah al-Islamiyyah is also represented on the Board. Sheikh Karaan is a long-standing member of the Fatwa Committee of the Muslim Judicial Council in Cape Town.

Would you like to know more about our Shariah investment solution?

Complete the form on the right and our Shariah investment
portfolio manager will contact you.

Sanlam Life Insurance is a licensed financial service provider.
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