Are Your Mutual Funds Halal?
For so many, investing is about more than just where you put your money. It’s about finding ways to grow your funds in ways that align with your beliefs. As an investor, you want to feel comfortable with the investments you make beyond just returns. For Muslim investors, this is especially true, as funds must be halal to be considered suitable investments. While it may seem like a straightforward yes or no when determining if a fund is halal, there are many ways to evaluate funds — each with their own nuances.
Since the inception of the first Amana fund in 1986, we’ve taken the process of verifying if a fund is halal very seriously and employ thorough, thoughtful methodology that best serves the beliefs and requirements of our funds and their investors.
We employ a proprietary screening and investment process developed in collaboration with Islamic scholars of the Fiqh Council of North America, a non-profit organization serving the Muslim community. Beyond industry restrictions, companies are excluded if they earn more than 5% of their revenue from haram sources, have debt exceeding 33% of market capitalization, or have accounts receivable over 45% of total assets.
Outside of religious or ethical reasons, halal funds can be beneficial for those seeking a conservative, value-oriented, and risk-averse investing approach. Our screening process seeks out companies with low debt in accordance with halal principles and discourages short-term speculation and high portfolio turnover rates, offering value to even non-Muslim investors
| Independently certified as halal |
Amanie Advisors, an unaffiliated board of Shariah advisers, reviews all Amana Funds' portfolios quarterly to certify that they meet the stringent requirements of the Islamic faith. |
Our Screening Process
Since a company’s industry alone doesn’t always reveal haram activities, we use our proprietary NEPTUNE® software to analyze thousands of securities each month. Screening continues after investment, with quarterly reviews by Amanie Advisors — an independent board of advisers — to ensure ongoing compliance.
Halal for all
Whether you’re a Muslim investor or just looking for value-focused funds to add to your portfolio, halal investing opens the door to unique opportunities. Reach out to our team today to learn more about our screening process and how halal funds can help you meet your financial and investing goals.
Halal Investment Criteria
5,000 global stocks | ||
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Quantitative | ||
Business Sector Gambling, Alcohol, Tobacco, Pornography, Weapons, Pork, Fossil Fuel Extraction | Financial Screens > 5% revenue from haram sources | Social Rating |
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~ 2,150 pass Islamic screens / 1,100 pass sustainable screens | ||
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Qualitative | ||
Fundamental Attributes Competitive Position, Growth Markets, Strong Management | Global Sector Analysis Review Analysis in US & Malaysia | Saturna Stock Qualification Detailed Fundamental Analysis |
Peer Review |
| Analyst Rating |
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Recommended List: 325 Securities | ||
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Maintenance Research: Industry & Company Risk Monitoring | ||