Wealth management is most effective when it’s personalized – this is something we strongly believe, and have always implemented in our practice. For some clients, this means working towards specific goals, or fulfilling unique needs relating to their family or business. We examine income streams, assets, timeline and lifestyle preferences to create a financial strategy that helps them achieve their vision.
Sometimes, personalized financial care involves a client’s culture and religious beliefs. We became interested in Shariah investing some time ago, and have since worked with a number of clients to create financial plans that respect their Islamic heritage by aligning with Shariah law. Today, we offer a brief overview of what that means and how we make it possible – if you have any questions, please let us know!
The basic principles of Shariah investing
We’ll include a quick overview of Shariah here, for readers who aren’t familiar with the concept. Shariah law is generally followed by Muslims and applies to many elements of one’s life, including prayer, charitable donations and the consumption of food and drink. For example, Shariah law prohibits the use of alcohol or other intoxicants, and instructs that followers do not consume pork. Meat must be halal and gambling is prohibited. Furthermore, there are rules around the use of money, specifically having to do with charitable donations, the accumulation of interest and other functions. This makes investing somewhat complex, as many traditional investment options are not aligned with the Islamic belief system. That said, there is a way to invest effectively while respecting Muslim culture – something we’re pleased to offer here in Kanata.
How we achieve this for our clients
In order to fulfil this need for our clients, we have created investment options that reflect the rules of Islam and Shariah. This is achieved by creating a portfolio that excludes any investments tied to intoxicants, gambling, pork and non-halal meat, tobacco, firearms, ammunition or prohibited media, such as pornography or gossip columns. We rule out savings accounts, as they accrue interest in a way that’s contrary to Shariah law, and instead invest in options such as Real Estate Investment Trusts (REITs), which allow us to effectively grow a client’s wealth within the faith guidelines of Islam.
If you’re interested in speaking to Renaldo Saikali about Shariah investing, please give us a call – we’d be pleased to arrange a consultation and discuss your financial needs. As this is a specialty service, please pass this information on to anyone who may find it useful. We are always grateful for your referrals.