Shari’ah Governance

The Global Iman Fund follows a disciplined process, with independent Shari’ah experts reviewing the investment universe and confirming ongoing compliance with Islamic principles.

Independent Shari’ah oversight

Specialist external advisors review the Fund’s investment universe and issue a formal opinion on Shari’ah compliance.

External Shari’ah experts

The Fund’s Shari’ah compliance is overseen by independent advisors led by Ratings Intelligence, a specialist Islamic research and advisory firm.

External Shari’ah experts

The equity universe is drawn from Dow Jones Islamic Market Titans 100 index, which applies Shari’ah screens to a global group of large, established companies across the US, Europe and Asia.

Regular reviews & certification

The advisors review the portfolio and screening methodology on a periodic basis and provide written Shari’ah certification for the Fund, which is made available to investors.

Screening methodology

The Fund invests only in companies that meet both business-activity and financial-ratio criteria set by the Shari’ah advisors.

Business activity screens

Companies with significant involvement in non-permissible activities are excluded from the investable universe. Examples include:

AlcoholPork-related productsGambling & casinosAdult entertainmentWeapons & armamentsConventional interest-based banking & insurance

Certain Islamic financial institutions (such as Islamic banks and takaful companies) may be treated separately in line with the advisors’ guidelines.

Financial-ratio and income screens

In addition to sector exclusions, each company is reviewed using financial-ratio tests and income screens developed by the Shari’ah advisors. These tests help ensure that:

  • • Interest-based debt and cash levels remain within set limits.
  • • Receivables and other balance sheet items are kept within acceptable ranges.
  • • Any incidental non-permissible income stays below defined thresholds and is subject to purification.

The precise ratios and thresholds are defined by the Shari’ah Supervisory Board and documented in the Fund’s Shari’ah certificate and index methodology.

Purification of non-permissible income

Any incidental non-permissible income identified is removed for the benefit of the unitholders.

Identifying amounts

Where a company earns a small portion of income from non-permissible activities (for example, interest earned on cash balances), the portfolio manager will identify that income for purification purposes.

Donation & reporting

Any non-permissible income identified for purification is set aside and donated to charity.

Ongoing monitoring & review

  1. 1

    Screened universe

    The starting universe is a Shari’ah-compliant index and list of securities screened by the Shari’ah advisors.

  2. 2

    Pre-trade review

    Portfolio changes are made within this screened universe and monitored.

  3. 3

    Ongoing oversight

    Corporate actions, index changes and financial updates are reviewed on a regular basis.

Certificates & key documents

Latest Shari’ah certificate

Signed confirmation from the Shari’ah advisors that the Fund is managed in accordance with Islamic principles as of the stated date.

Fund prospectus

Formal legal disclosure for the Fund, including investment strategies, risks and governance structure.

Frequently asked questions

Who provides the Shari’ah opinion for the Fund?
The Fund relies on independent Shari’ah experts, including Ratings Intelligence, who specialise in Islamic index research and advisory services.
How often is the Fund reviewed for Shari'ah Compliance?
Global Iman Fund is Shari'ah Compliant and is renewed annually.
Does the Fund invest directly in banks or insurance companies?
Conventional interest-based financial institutions are generally excluded. Certain Islamic banks or takaful companies may be eligible where they meet the shariah advisors’ criteria.
Where can I see the Fund rules?
The Fund details and rules are reflected in the prospectus.

Have questions?

Feel free to get in touch with our team and learn more the Global Iman Fund and rules around its Shari'ah governance.

Disclaimer:This page provides a high level Shari'ah Compliance overview and methodology that outlines fund’s shariah governance framework. If you would like to learn more please refer to the prospectus or connect with the GGAI team. Please note that described process is indicative only and can be changed by UBS (Portfolio Manager for the Global Iman Fund) without notice. For illustrative purposes only. The value of investments may fall as well as rise and you may not get back the amount originally invested.
Disclaimer: Mutual funds are not guaranteed, their values fluctuate frequently, and past performance may not be indicative of future results. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing.