Award winning and leading provider of Sharia Compliant and Socially Responsible investment solutions
At Simply Ethical we pride ourselves on providing clients with a clear focus on achieving their financial objectives in an ethical way. Our philosophy is based upon a shared view of how we as a company believe we should invest on behalf of our clients, focusing on meeting client needs over their time horizon and working with our clients to ensure they understand why they hold the investments they do.
We want you to achieve financial success through positive values and good ethics. Our investment screening is designed to help keep your money away from business sectors and activities that have an adverse impact on our society. By doing that, we encourage the growth of more sustainable ways of doing business which have a positive impact on our society. We believe such investments will not only appeal to the socially responsible investors but also to people of various faiths. Adherence to these principles means that the investments offered are compatible with the teachings of the Islamic faith, therefore are Sharia compliant.
Our Ethical Committee reviews investments to ensure they meet to our Sharia Compliance and Socially Responsible investment criteria set in our Ethical Investment Policy Statement.
All funds and ETFs we use in our investment portfolio are reviewed for Ethical and Sharia compliance. We assess funds on Sharia screening criteria, Sharia governance and ongoing monitoring system amongst other important considerations.
Review Sharia certification
Sharia certificate for funds is reviewed to ensure it is certified by a reputable scholar(s) with relevant experience
Review Sharia screening criteria
We review how investments are screened for Sharia compliance
Review ongoing Sharia compliance
Ongoing Sharia compliance and monitoring system is reviewed
Direct equities screening
At Simply Ethical, we are dedicated to constant improvement in Sharia compliance where and when we can. For those investing in direct equities (companies), we adopt a much tighter criteria than that followed by the broader industry.
After conducting business screening that excludes a number of industries, sectors and activities as stated in our Ethical Investment Policy Statement, we apply financial screening on companies that have passed the business screening criteria. A company must meet all of the following criteria to be deemed compliant:
Debt to Total Assets
Net borrowing to Total Assets
Cash to Market Capitalisation
Zakah & purification
Simply Ethical will calculate the Zakah percentages and the non-compliant income to be purified for all the relevant clients on an annual basis. Our methodology for Zakah calculation and purification calculation is explained in our Ethical Investment Policy Statement.
Zakah is a financial obligation that every Muslim must pay on certain assets that are at or above a certain minimum amount (Nisab) and have completed a holding period of 12 lunar months (Hawl).
Purification is the cleansing process which requires that any investment income that might have been generated from unlawful activities according to Sharia based investing principles be given to a charity. Sharia based investing allows some tolerance in non-compliant income. Based on AAOIFI Shari’ah standards, provided a company meets other Sharia standards (limitation on debt and cash) and has less than 5% of its income generated from prohibited activities, for example, interest received on company cash. The company may be deemed as Sharia compliant, provided that any income from non-compliant activities is given to a charity as a way of purification.
Our investments have been certified by Mufti Faraz Adam and Sheikh Muhammad Ahmad.
Shariyah Review Bureau conducts audit on Simply Ethical on an annual basis.
Our Sharia certificates can be verified on the following link. You would need the verification code, which can be found within our Sharia certificates issued by Shariyah Review Bureau.