Why Choose ShariaPortfolio Canada?
Unique & Personalized Approach
Each investor is unique and deserves the right level of attention. Let us get a better understanding of your goals to then create a personalized plan in order to help you achieve your financial objectives.
Investing Aligned with Your Values
ShariaPortfolio Canada offers wealth management solutions that are aligned with your values allowing you to reach your financial goals in a Sharia-compliant manner.
In-Depth Expertise & Experience
Our experienced team of advisors is ready to help clients in British Columbia, Alberta & Ontario where the firm is able to advise with their short-term and long-term goals.
ShariaPortfolio Active
The premier solution for active investors looking for flexibility & control.
Active Investment is a strategy for clients who are looking for growth and flexibility to respond to market changes. ShariaPortfolio’s Portfolio Managers have their fingers on the market pulse & constantly identify opportunities suited to your specific profile.
Your portfolio would consist of a diverse collection of halal stocks and ETFs.
- Benefits of an Active Portfolio Strategy
- Hands-on Approach
- Risk Management
- Seeking Outperformance of Benchmarks
- Long-Term Focus & Short-Term Opportunistic
- Increased Flexibility & Transparency
ShariaPortfolio Passive
The premier solution for clients looking for long & steady growth.
Passive Investment is a strategy for clients who are looking for long steady growth. A passive strategy could lower risk as you will be investing in a mix of Halal ETFs rather than individual stocks which are more exposed.
Your portfolio would be constructed with a collection of halal ETFs.
- Tax Efficient
- Lower Fees
- Increased Transparency
- Long-Term Focus
- Seeking Market Returns via Benchmarked ETFs
Funds
SP Funds is North America's largest family of Sharia-Compliant ETFs
Fee Structure
| Fees Type | Cost |
|---|---|
| ShariaPortfolio Investment Management Fee | 0.5% to 1.5% of the value of the portfolio depending on Active or Passive investment style |
| FIRE Financial Inc.’s Planning Fee | 0.80% of the Asset Under Management (AUM) |
| All in Cost | Approx. 1.3% to 2.3% |
Frequently asked questions
- Alcohol
- Gambling
- Weapons
- Tobacco
- Adult Entertainment
- Pork Products
- Highly-leveraged Businesses
- Interest-Based Businesses
- Music, Cinema or Broadcasting
- Interest-bearing debt divided by 12-month average market capitalization should be less than 30%
- Cash, cash equivalents and short-term investments divided by the 12-month average market capitalization should be less than 30%
- Cumulative revenue from non-compliant activities and non-operating interest income should not exceed 5% of total income
ShariaPortfolio pays FIRE Financial an ongoing annual referral fee of 0.20% of the AUM. This fee will be paid by ShariaPortfolio from the management fee it earns on investors’ account and hence is not an additional cost to investors.
ShariaPortfolio offers the most common investment accounts such as Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP), Non-Registered Cash Accounts, Locked in Retirement Account (LIRA), Registered Retirement Income Fund (RIF), etc.
Note: ShariaPortfolio does not offer a Registered Disabilities Savings Plan (RDSP)
We charge an annual fee of between 0.5 to 1.5% of the value of the portfolio, depending on the amount of assets being managed and the type of service provided. Unlike many other advisers, we do not accept commissions from mutual fund companies.
Your portfolio will be held with Fidelity Clearing Canada ULC, a custodian that is registered with the Investment Industry Regulatory Organization of Canada and participates in the Canadian Investor Protection Fund. a fund set up to ensure client assets. Fidelity Clearing Canada ULC is part of the Fidelity group of companies that handles over $10 trillion dollars of customer assets worldwide.
The Sharia guidelines are based on the rules determined by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), a global Islamic finance standards-setting body, governed by an international panel of highly respected Sharia scholars.
Asset classes
Only stocks, sukuks and Islamic ETFs are eligible for Shariah-compliance consideration. Preferred shared are considered to be non-compliant.
Business activities screens
Companies are only to be considered compliant from a business perspective if the cumulative revenue from non-compliant activities and non-operating interest income does not exceed 5% of their total income. Non-compliant income sources include the following:
Financial screens
The following screens have to be fulfilled to ensure Sharia-compliance according to the defined rules:
We rely on the Sharia rules defined by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), a global Islamic finance standards-setting body, governed by an international panel of highly respected Sharia scholars. Learn more at https://aaoifi.com/
ShariaPortfolio Canada offers a comprehensive solution to investing that includes a variety of Sharia-compliant stocks and funds. ShariaPortfolio employs a core satellite approach in investing, where active returns are generated by stocks and sector selection and active risk is mitigated by core holdings. It takes a value based, hands-on approach in selecting high conviction securities as satellites for the portfolios. Buying or selling of stocks, sukuks, commodities or ETFs is based on target price and fundamental discipline. ShariaPortfolio’s portfolio managers take a proactive approach to assign a standard portfolio according to the client’s risk, return and life cycle objectives. Standard models are managed by ShariaPortfolio to achieve the returns with a designated level of risk.
Investments containing only ETFs are designed to parallel the returns of a particular market index or benchmark as closely as possible. For example, each stock listed on the S&P 500 Shariah Industry Exclusions Index (SPSIEUP) is weighted. That is, it represents a percentage of the index that is commensurate with its size and influence in the real world. An exchange traded fund ETF, for example SPUS (which tracks SPSIEUP), will use the same weights. This is passive portfolio management and its objective is to generate a return that is the same as SPSIEUP index. The strategy requires a buy-and-hold mentality. Because this investment strategy is not proactive, the management fees are lower than active management strategies.
Our USA affiliate, ShariaPortfolio, started in 2003 and was one of the first sharia-compliant wealth managers in the USA with clients nationwide. In 2019, SP Funds (another affiliate) lunched two Exchange Traded Funds (ETFs) which are listed on the NYSE. ShariaPortfolio Canada was officially launched in January 2020.