Amiri Equity Alternative Strategies Fund
Shariah Compliance – Stock Screening
Shariah Constraints
- Investment in some stocks is not Shariah compliant.
- Companies with high leverage, interest bearing securities or accounts receivable.
- Companies with ‘haram’ activities e.g. banking, gambling, alcohol etc.
Shariah Solutions
- Investment managers are provided a system to recognise ‘haram’ stocks.
- When companies have <5% in ‘haram’ activities investment is permitted, but a proportion of returns are given to charity.
Amiri Capital Approach
- Amiri Capital uses stock screening criteria based on criteria from the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
- Amiri has developed the proprietary Amiri Shariah Screening System
( Amiri S3 ). - Amiri S3 ) provides a larger universe of investable stocks to invest in than available in other stock screening systems.
- Rigorous screening takes place at two stages: manager querying via Amiri S3 ) before the trade and periodic ex-post audits by Shariah committee.
