Gulf Islamic Fund
The fund is designed to achieve long-term capital growth through investment in a concentrated portfolio of Shariah-compliant GCC equities. The fund is benchmarked to the S&P GCC Shariah Compliant Index.
By way of general guidance, companies whose core activities are, or are related to, the following are excluded:
• Conventional banking, investment, insurance or any other interest-related activity;
• Trading in alcohol, tobacco, pork;
• Gambling, cinemas, pornography;
• Other activities deemed offensive to Islam.
Companies that are not eliminated by the above screen are subjected to further tests based on financial compliance:
• The company’s interest-bearing debt divided by assets must not exceed 33.3%
• The company’s interest income divided by total income must not exceed 5%
• The company’s cash & receivables, divided by total assets must not exceed 50%
• The company’s liabilities, must not exceed 30% of market capitalization
• Dividend cleansing: "tainted dividend" receipts relate to the portion, if any, of a dividend paid by a company that has been determined to be attributable to activities that are not in accordance with Islamic Shariah principles and therefore should be donated to a proper charity or charities