Ethical Screening Process

Our Approach

Sharia Ethical Financial Screen

Global Ethical Fund conducts a 3-step Ethical Screening process to determine which companies to exclude from its Ethical portfolio. These are effectively two negative screens.

The Sharia Ethical Financial Screen monitors the impact of non-Sharia Ethical Compliant practices of a company and its potential impact on corporate performance. Companies invested in must be compliant with the Sharia Ethical Financial Ratios as decided by the Sharia Ethical Standards Board.

a) Conventional Debt/Total Market Capitalization: 33%
b) (Cash +Interest Bearing Deposits)/Total Market Capitalization: 33%
c) Total Interest/Revenue: 5%

To ensure compliance with this screening process, Global Ethical Fund employs a strict, market-leading, and robust Sharia Ethical Governance system.

01.

Subscription to AAOIFI Sharia Ethical Standards

The Accounting and Auditing Organization for Islamic Financial Institutions(AAOIFI) is an Islamic international autonomous non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia Ethical Investment Standards for Islamic financial institutions and the industry.

02.

Applying Sharia Ethical Screening to the investment universe

IdealRatings, Inc. is a world class provider of financial research and data. With its extensive experience in fund management and research, IdealRatings has developed a number of solutions to cater to the different Sharia Ethical Screening needs of Ethical asset managers across the globe. IdealRatings launched its flagship product; Sharia compliant asset management services, which was a true breakthrough and has indeed taken the industry to the next level.

03.

Sharia Ethical Compliance and Auditing

Global Islamic Financial Services Firm propriety limited (GIFS) is a South Africa based company specialised in providing Sharia Advisory services, supervision, Sharia auditing and human capital development. Their advisory board comprises of experienced scholars from Africa, the Middle-East, the Sub-continent, and Australasia; along with financial experts who bring their expertise and insight to meet the client’s needs.

GIFS have been involved in the establishment of Global Ethical Fund and will continue their involvement by way of on-going Sharia Ethical supervision and annual auditing.

GIFS is chaired by Mufti Ismail Ebrahim Desai, an International Sharia Adviser and Islamic Finance Expert.

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