Sharia/Halal Investment Management

First, to be up-front and honest: we are not a Muslim investment firm, we do not claim to be experts in/on Sharia Law, and we represent clients of many faiths and beliefs. However, we are one of the few firms that act upon the belief that the values of our clients should be able to be expressed in their investment and financial planning. Therefore, we work diligently to be one of the premier regional financial firms that our Muslim community can rely on to help them build great investment strategies and financial plans that adhere to their beliefs.

Building Halal investment portfolios has been something we wanted to do for many years, however, there just has not been enough support from the mutual fund community for us to do so with our limited resources. Fortunately, two funds companies, Amana Mutual Funds Trust and Azzad Funds have recently produced what we believe are the bare essential investment building blocks with which we feel confident that we can provide ongoing fiduciary portfolio construction and investment advice for our Muslim clients:

Amana-Funds-Logo-300x150 Azzad-Funds-Logo-300x95

Both of these fund companies screen for:

  • Riba, which is often translated as interest. Basically, it refers to an increase in capital without any real services provided, or the growth of money by the mere passage of time. Riba is prohibited on both sides of the transaction – giving as well as taking.
  • Gharar, which means chance, or any financial transaction or contract (such as insurance) which includes an element of chance.
  • Haram businesses or industries. Examples include companies which derive significant income (defined as more than 5% of their total income*) from the processing or sale of alcohol, tobacco or pork. Other prohibited industries are defense/weapons, gambling, pornography and financial firms that charge or pay interest.

They both also assist with the calculation of:

  • Purification, which requires that any investment income be given to charity if it may have been generated from activities defined as unlawful according to Islamic investing principles.
  • Zakah, the annual sharing of wealth above Muslims’ basic needs..

Currently, we can build these portfolios for our clients who are Asset Management or Full-Service clients of our firm in their IRA, Roth IRA, and After-Tax investment accounts. Unfortunately, these portfolios generally cannot be instituted in most employer plans.*

*However, if you are decision maker and have the authority to switch retirement plan providers, we do have a 401k/retirement plan product in which we can build this into your company’s retirement plan.

Thank you so much for you time and consideration of rebel Financial and we do hope that we can help you towards a brighter financial future!


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