South Africa: Shari’ah offering

At Melville Douglas, we offer bespoke portfolio management to high net worth Muslim families. We understand that Shari'ah 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 law allows us to manage mandates across a variety of risk spectrums. The construction of the portfolio and specific mandate for these funds is based on guidance from the client and will be managed within specific agreed guidelines.

Note:  Governance and compliance in terms of Shari'ah 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:

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

Our key differentiating factors

Our key differentiating factors:

  • We provide our clients with a high quality personalised service which includes two portfolio managers and a dedicated client services individual for each portfolio
  • We offer bespoke portfolio management in a Shari’ah market heavily skewed towards unit trusts
  • Our fees are competitive 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
  • Our Shari'ah funds are managed with the same Melville Douglas investment process and philosophy as any other portfolio
  • Our focus is on preserving our client’s capital that they’ve entrusted to us and providing superior long term risk adjusted returns
  • 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 their own NPI advice and has full discretion on what they would like to do with it, for example, clients with their own charities may request that their NPI be donated.

Our performance track record

 

Total Returns to July 2017 Quarter 1 Year 3Years (CAGR) 5 Years (CAGR)
Melville Douglas SA Equity -4.0% -2.0% 5.8% 12.3%
JSE Shari'ah Index 2.9% 1.2% -5.2% 5.8%
JSE All share Index 2.9% 7.6% 5.5% 13.1%
Oasis Crescent Equity Fund -0.9% 0.4% -0.4% 7.9%
Melville Douglas Global Equity 1.7% -4.1% 8.5% 17.5%
S&P Shari'ah Global Equity Index 4.3% 9.7% 15.6% 22.7%
Portfolio Return -1.0% -2.1% 6.4% 12.4%
80% SA Shari’ah Equity; 20% Global Shari’ah Equity 3.2% 2.9% -1.0% 9.2%

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 compliant
  • Historical performance is not an indicator of future returns and
  • 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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