South Africa: Shari’ah Offering

We offer investors access to Shari’ah compliant investments. This solution is designed to meet the needs of long-term Muslim investors looking for a diversified Shari’ah compliant portfolio. We understand that Shari'ah or Islamic law places certain restrictions on investments and if these restrictions are not adhered to, the return on investments (profits) will be regarded as impermissible. For this reason we only offer Shari'ah-compliant equity and non-equity investments. Our adherence to Shari'ah or Islamic law allows us to manage mandates across a variety of risk spectrums.

Note: Governance and compliance in terms of Shari'ah or Islamic law has been outsourced to the Shari'ah Supervisory Committee (SSC). The SSC ensures that all Shari'ah principals are upheld to the highest standards.

The current SSC member duties

The current SSC members are Mufti Yusuf Suliman and Mufti Ahmed Suliman. The main duties of the SSC include the following:

  • Non-permissible Income (NPI) calculations
  • Providing the investment universe of Shari'ah-compliant investments
  • Performing the Shari'ah-compliance audit
  • Providing clients with Zakat advice

Our key differentiating factors

Factors which set Melville Douglas apart are as follows:

  • Our service is customised to suit each client’s personal needs. Our flexible approach, combined with a comprehensive financial needs analysis and a full understanding of our client’s investment objectives, delivers a customised investment portfolio: one size does not fit all.
  • Our team of experts provide our clients with exceptional, personalised service. We dedicate two portfolio managers and a client services individual to each client, ensuring our clients always have direct access to their portfolio manager and understand the investment decisions they make on their behalf.
  • We offer bespoke portfolio management in a Shari’ah market heavily skewed towards unit trusts.
  • We have a competitive fees structure, and we charge participation fees on an absolute rather than a relative basis.
  • We are largely benchmark agnostic, whilst the Shari’ah Index is very heavily biased towards cyclical shares in the basic materials sector.
  • Additional sign-up documentation has been included by the SSC to legally contract Melville Douglas to manage the portfolios within Shari’ah principles.
  • Each client receives his or her own NPI advice and has full discretion on what he or she would like to do with it.

Our performance track record

 

Total Returns to December 2017 Quarter 1 Year 3Years (CAGR) 5 Years (CAGR)
Melville Douglas SA Equity -0.6% -5.8% 2.8% 9.8%
JSE Shari'ah Index -2.5% 2.3% 1.8% 2.8%
JSE All share Index 1.2% 16.1% 8.2% 11.2%
Oasis Crescent Equity Fund -2.1% 2.0% 2.5% 5.4%
Melville Douglas Global Equity -11.5% 3.6% 6.0% 13.9%
S&P Shari'ah Global Equity Index -8.4% 15.1% 13.9% 19.3%
Portfolio Return -5.3% -0.9% 3.9% 10.2%
80% SA Shari’ah Equity; 20% Global Shari’ah Equity -3.7% 4.9% 4.2% 6.1%

Notes

  • The composite includes all Melville Douglas discretionary 100% Shari'ah-compliant portfolios with a Global Aggressive Mandate.
  • The returns are calculated from monthly data using a modified Dietz methodology.
  • Returns are gross of fees.
  • The numbers are not GIPS (Global Investment Performance Standards) compliant.
  • Historical performance is not an indicator of future returns.
  • The investment management was governed by a Shari'ah Supervisory Committee from 31 May 2013.

You have reviewed the latest product information on our website (fact sheet) and know the risk and fees associated with your investment choice. You have read and understood the terms and conditions available on our website or upon request.

To invest directly, investors need to download the application form, complete and submit this form and all the associated documents to STANLIB:

E-mail: instructions@stanlib.com

Facsimile: 0867 277 501 or 011 448 6666

STANLIB Collective Investments Limited administer these funds.

You have reviewed the latest product information on our website (fact sheet) and know the risk and fees associated with your investment choice. You have read and understood the terms and conditions available on our website or upon request.

To invest directly, investors need to download the application form, complete and submit this form and all the associated documents to STANLIB:

E-mail: instructions@stanlib.com

Facsimile: 0867 277 501 or 011 448 6651

STANLIB Collective Investments Limited administer these funds.

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