Trustnet Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

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You are here:  FE Trustnet     Education        ShariahLawGuide

Shariah Law Guide

 

Types of Shariah Fund

Equity Funds
Fund managers are allowed to invest in common shares in an attempt to generate returns, mostly through capital gains but also from dividends as long as the shares are from companies that are deemed Halal by the Shariah Advisory Board.
After picking companies that are deemed as Halal, these companies’ annual reports are then screened for Shariah compliant accounting principles which focuses on leverage, cash and revenues derived from impermissible activities, to further exclude non-compliers.
As Shariah places these limitations on viable investments and effectively shrinks the potential investment pool, Shariah compliant funds can have higher volatilities relative to similar funds that operate in the same space.
There are not many equity funds which are invested 100% in equities all the time. Many will have at least a modicum of exposure to money markets or the bank, making them not strictly Halal.
Accordingly, any interest, dividends and sometimes even capital gains that exceed the generally accepted 5% allowance have to be ‘purified’ to nullify any gains that have accrued from interest bearing activities or other disagreeable aspects of the business.
A good example of why the case is not as clear cut as ‘bad’ or ‘good’ would be hotels, which are not strictly outlawed, but fall into the middle ground because the profit they make in most cases is partly made up from the sale of alcohol.
Different funds will have slightly different policies according to their Shariah advisory board, there is constant debate between scholars about the legitimacy of Riba in dividends, purification, hedging instruments and even whether certain businesses are really Haraam. Nonetheless, the policies of any fund will be fully described in the prospectus so that investors can decide for themselves and flag up any concerns before investing.
Commodity Funds
These are funds that are setup to purchase different Halal commodities for the purpose of reselling to generate profits. The fund must actually own the commodity at the time of sale, either physically or structurally (i.e. the risk attached to it is fully transferred to the fund) and the price of the commodity must be fixed and cannot be changed or dependent on certain events or the sale will be void.
Because Shariah strongly prohibits gambling, Shariah compliant commodity funds cannot be involved in commodity futures. However, under some circumstances specific Islamic forwards (Bay Al-Salam & Istisna) can be used legitimately to generate profits.
Ijarah Funds
An Ijarah fund holds tangible assets like property, machinery, motor vehicles, and the like - usually with the aim of leasing out the asset for third parties for rental income. To comply with Shariah, the leased asset will have to be used in a Halal manner.
The ownership of the asset remains with the fund, which is also responsible for its maintenance and hence the main source of income is derived from rentals. The subscriber to a Ijarah fund is issued a ‘Sukûk’ which is effectively the equivalent of a leasing bond which complies with Shariah law. Each Sukûk can be regarded as a separate unit, tradable in a secondary market, its price determined by conventional market forces in much the same way as an investment trust in the UK might be bought and sold.
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