In managing our investments, in consultation with the Shariah Advisory Board, we ensure our Fund is invested according to Islamic principles. This means that certain industries are unlawful and therefore the SWIP Islamic Global Fund would not invest in the following;
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gambling
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tobacco
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the production or sale of pork products
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the production of intoxicating liquor
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arms manufacturing
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Cinema, and all media that contain pornographic material such as broadcasting, videos and DVDs
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non-Islamically structured banking, finance, investment or life insurance business, or any other interest related activity.
If a company does not operate in any of the above industries but either holds interest bearing debt securities or has borrowed interest bearing debt, then these companies must satisfy the following guidelines (subject to confirmation from the Shariah Advisory Board):
Interest revenue shall not exceed 5% of total revenue
Non-Islamic structured borrowing must not exceed 30% of the total market value of the company’s stock
Cash plus accounts receivables plus interest bearing assets shall not exceed 30% of the company’s adjusted total assets.
Each company shall be comprised of 51% non-liquid assets.