The Shariah screen

Permissible first.

Every company passes the screen before it can be bought, and keeps passing it to be held.

The Shariah screen

Three ratios.
No exceptions.

Modelled on AAOIFI and the Dow Jones Islamic Market methodology. Ratios are measured against the company’s 24-month average market value, so one volatile month can’t flip the verdict.

A holding that stops passing is sold as soon as a second check confirms it — usually the same day, even while new trading is paused. If it passes again on that check, it’s kept (a data glitch). Any gain made after it failed is set aside for you to purify.

Excluded businesses

  • Conventional banking
  • Insurance
  • Lending & credit
  • Capital markets & exchanges
  • Alcohol
  • Tobacco
  • Gambling
  • Defence
  • Entertainment
  • Hotels
  • Restaurants
33%Interest-bearing debt
of 24-month average market value
33%Cash & interest-bearing securities
of 24-month average market value
5%Interest income
of total revenue

Permissible range An example company that passes Limit

05:00 Europe/London

Nightly discipline

Every morning at five,
the slate is re-checked.

  • Re-screen every holding and every name on the watchlist. Anything no longer compliant comes off.
  • Sell any holding that fails, as soon as a second check confirms it — usually the same day — and purify any gain made after it failed. If it passes on that second check, the failure was a data glitch and it stays. We don’t hold what we wouldn’t buy.
  • Add new names from a universe of the most liquid London and US stocks, ranked on liquidity, momentum and sentiment.
  • Tech & AI
  • Healthcare
  • Industrials & Infrastructure
  • Materials, Mining & Gold
  • Consumer Staples
  • Consumer & Homes
  • Energy
  • Green

The watchlist grows across these segments, every name in it Shariah-screened. Protective stops rest with the broker, so they hold even if the system is offline.