Gulf Islamic Fund

Investment Objectives

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.

Shariah Guidelines

Sector Screening:

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.

Financial Screening:

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

GIF Newsletters

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