Investments allowed under the ethical rules of Islam, those which are considered Shari’ah-compliant, share many of the restrictions generally attributed to ethical or socially-responsible investing.
The four most prevalent screens used by socially responsible investment firms are also an included in the screens for Shari’ah-compliance. The similarities between Shari’ah-compliant investing and ethical investing provide an opportunity to use Shari’ah-compliant screens as a base for other ethically-based investment strategies requested by our clients.
Rubicon Global Halal Fund, in contrast to many other Islamic financial institutions, does not have a Shari’ah board. We have several reasons for making this decision:
- Having a Shari’ah board costs a significant amount of money, which makes halal investing less competitive than conventional investing.
- Because there are a number of schools of thought about what is permissible (halal) and what is impermissible (haram), we believe that we have more flexibility if we do not have a Shari’ah board and instead provide our clients with the information needed to assess Shari’ah compliance either on their own or in consultation with an imam from their preferred school of thought.
- We believe that halal investing will appeal to both Muslims and non-Muslims and the added cost of having a Shari’ah board may deter non-Muslims from halal investing.
- Instead of providing a Shari’ah scholar’s opinion (a fatwa) on the Shari’ah-compliance of our portfolio management, we will instead provide clients with the information they need to evaluate their portfolio holdings in light of Shari’ah or other ethical concerns. By allowing and facilitating clients’ review of their portfolio’s Shari’ah- or other ethical-compliance, we believe we can assist a broad range of people concerned about investing according to ethical guidelines.
Can I decide how my money is invested?
Our traditional models serve client’s needs by determining asset allocations based on their individual risk tolerances and investment objectives. Allocations are benchmarked according to the type of portfolio model chosen, and tactical changes are made on an as needed basis to take advantage of undervalued sector opportunities. Rubicon actively re-balances our portfolios every quarter to keep allocations in line with their risk benchmarks. Our goal is to find value in the marketplace, and we believe that managing investment risk is the only viable way of generating acceptable returns for the prudent long term investor.
- Conservative Balanced
- Balanced
- Equity-Tilted Balanced
- Equity
In addition to our risk balancing models, we offer three standard models that allow clients to make investments that reflect their personal values, which can be further tailored according to client needs.
- Halal
- Green
- Crystal Integrity
The Green model targets companies in the renewable energy space, usage and generation efficiency technologies, as well as traditional companies that operate in an environmentally conscious manner. These companies have significant growth potential over the next decade, and give clients the opportunity to participate in a sector that will help change the world.
The Crystal Integrity model is still being developed, but will focus largely on companies run by management teams that have a long term record of community service, charitable works, etc., and provide benefits and a work environment for their employees that are well above industry averages.
