A sukuk sits where a bond would in a portfolio, but it is not a loan. What the holder owns explains where the income comes from, and where the risk sits.
Purification is the process of calculating and donating the share of dividend income that comes from non-compliant activity. The ratio moves every quarter because the underlying company revenues move.
A conventional investor parking cash earns interest while they wait. A compliant investor does not, which turns an idle balance from a neutral decision into a compounding cost.
Conventional managers meet a slowing cycle with duration and leverage. Neither tool is available to a compliant portfolio, so the defensive work has to happen in quality and sector selection instead.
US Sharia equity benchmarks have outpaced broad market indices year to date on the back of strong technology and healthcare earnings. We remain overweight US equities heading into the second quarter.
With inflation remaining above the Federal Reserve 2 percent target, real returns on cash and money market positions continue to erode. We are encouraging clients with elevated cash allocations to revisit their positioning.
All holdings in SPUS and SPTE have been reviewed and remain compliant under AAOIFI standards. The purification ratio for the first quarter has been calculated at 0.33 percent of dividend income.
Sukuk Explained: What You Own and Where the Return Comes From
A sukuk sits where a bond would in a portfolio, but it is not a loan. What the holder owns explains where the income comes from, and where the risk sits.
Read article →How Dividend Purification Works, and Why the Ratio Changes
Purification is the process of calculating and donating the share of dividend income that comes from non-compliant activity. The ratio moves every quarter because the underlying company revenues move.
Read article →Why Cash Drag Costs a Halal Portfolio More
A conventional investor parking cash earns interest while they wait. A compliant investor does not, which turns an idle balance from a neutral decision into a compounding cost.
Read article →Positioning for a Slower Growth Cycle Without Reaching for Leverage
Conventional managers meet a slowing cycle with duration and leverage. Neither tool is available to a compliant portfolio, so the defensive work has to happen in quality and sector selection instead.
Read article →Q2 2026 Outlook: Sharia-Compliant Equities Continue to Outperform
US Sharia equity benchmarks have outpaced broad market indices year to date on the back of strong technology and healthcare earnings. We remain overweight US equities heading into the second quarter.
Read article →Reading the Fed: What Sticky Inflation Means for Halal Investors
With inflation remaining above the Federal Reserve 2 percent target, real returns on cash and money market positions continue to erode. We are encouraging clients with elevated cash allocations to revisit their positioning.
Read article →Quarterly Sharia Compliance Review, Q1 2026
All holdings in SPUS and SPTE have been reviewed and remain compliant under AAOIFI standards. The purification ratio for the first quarter has been calculated at 0.33 percent of dividend income.
Read article →