Our Investment Principles
Our investment philosophy is grounded and bound by Islamic investment principles, which aim to the meet the financial needs of participants with justice, equity and fairness. Islamic investment is a form of investing based on Islamic economic principles and differs substantially from conventional wealth management and investment. When investing on-behalf of our clients, we examine and research each investment to understand how it makes its money from a commercial as well ethical standpoint. Our investment teams are supported by an international research team as well as the advisory services of our Shariah Supervisory Board, Dar Al Shariah.
What respected Sheikhs are saying…
The four core principles of Islamic investing are:
1) Avoiding the Payment and Receipt of Interest or Riba
The prohibition of interest arises from the Islamic view that money should be used only as a medium of exchange, a store of value, and a unit of measurement. Money itself possesses no intrinsic value. The charging or receipt of interest – or ‘riba’ – is therefore prohibited. Any return on money invested should be linked to the profits of an enterprise.
2) Avoiding Uncertainty
The existence of uncertainty – or ‘gharar’ – in a contract is prohibited. Everyone participating in a financial transaction must be adequately informed and all fundamental terms such as price or quantity must be clearly determined at the outset.
3) Avoiding Speculation
Investments that rely on chance or speculation, rather than the efforts of the investor, to produce a return are prohibited. Normal commercial risk-taking and related speculation is otherwise permitted.
4) Investing Ethically and Morally
Similar to socially responsible investing, Islamic investment filters out socially detrimental activities, such as gambling, tobacco, adult materials, alcohol, weapons and more. For the most part, Islamic investing is consistent with conventional value-based investing, which mandates social values and good governance.
Enjoy peace of mind with our 4 levels of World Class Islamic Compliance.
All our investments comply with the globally recognised standards for Islamic Investment principles.
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an international autonomous, non-for-profit corporate body that consists of world class eminent scholars of Islamic Finance including the likes of Sheikh Mohammad Taqi Usmani the Vice-President of Darul-Uloom Karachi, Sheikh Dr Ahmad Al Hadad the grand mufti of Dubai, Sheikh Abdulla Bin Sulaiman Al Manea the Chairman of SABB and more.
AAOIFI is supported by over 200 institutional members from 40 countries including central banks, Islamic financial institutions, and other participants from the international Islamic banking and finance industry worldwide.
Our award winning and globally recognised Shariah Supervisory Board, Dar Al Sharia, consists of scholars of Islamic finance who monitor each of our funds adherence to the above Islamic investment principles.
Dar Al Sharia is Directed by Sheikh Hussein Hamed Hassan, one of the world’s most sought-after scholars in applying Islamic principles to finance, and have won the Islamic Finance News award for “Best Sharia Advisory Firm” five years in a row and “Best Islamic Consultancy Firm” four years in a row. Dar Al Sharia are also a key subsidiary of the Dubai Islamic Bank, the first and largest Islamic Bank in the UAE.
Each investment undergoes in-depth analysis for its Islamic compliance by the world’s most trusted Islamic investment research firm, IdealRatings®.
IdealRatings® Shariah screening, purification, fund and index management services identify and manage Shariah compliant equities, funds and Sukuk globally. They provide the largest, most accurate Shariah compliant investment research covering more than 95% of global market capital and are relied upon by most Islamic index providers and leading financial institutions in 12 countries for their high quality investment research services.
Our Filters Protect Your Investments from Unethical Companies
We avoid companies and industries that profit from or invest in the following:
We avoid companies that exceed the following*
*These ratios are determined and set by AAOIFI, the global standard for Islamic investment principles.
What do we do with tainted income? We give it to charity!
If a company we invest in earns between 0-5% profit from any tainted sources, we donate it to good causes. This is so your wealth returns to you clean of any unethical or non-Islamically compliant income. Crescent Wealth has set up the Crescent Wealth Foundation Fund to manage the cleansing of the tainted income by donating it to Australian registered charities. See more on the Crescent Wealth Foundation here. Should any company earn above 5% of their income from a prohibited source, we do not invest with them. Of note is that Crescent Wealth’s ethical filters have operated stringently and efficiently in selecting Islamic compliant companies that minimal tainted income has accumulated.