Momentum launches global Sharia portfolio
The portfolio invests in companies contained in the MSCI World Islamic Index, which is also the portfolio’s benchmark.“Investors can gain amccess to this portfolio via an exchange-traded note listed on the JSE which invests directly in the Global Sharia Portfolio,” says portfolio manager Francois Strydom. “This means that investors gain offshore exposure without having to utilise their offshore allowance.”
Momentum Securities will ensure that all dividends, interest and management fees are included within this single instrument listed on the JSE.
“At Momentum Securities, we select companies and analyse them both in isolation and in context of the macro environment in which they operate, enabling our investment teams to determine what value to place on securities’ growth potential. This investment process assists us in finding stocks that trade below their intrinsic value, generate more reliable cash flows, and, ultimately, provides us with a competitively performing portfolio,” says Strydom.
Strydom says the portfolio does not invest in companies that are directly active in, or derive more than 5percent of their revenue from, the following activities: alcohol, tobacco; pork-related products; financial services not regarded as Islamic financial institutions, defence/weapons, gambling/casinos, adult entertainment, music, hotels and cinema.
No shares outside of the MSCI World Islamic Index may be included in the portfolio, and Momentum Securities will not conduct dividend purification.
“The fund is high conviction, invested in approximately 20 different companies in the healthcare, information technology, consumer-non-cyclical, industrial and real estate sectors. A third of the fund is in cash, which enables us to take advantage of any investment opportunities we identify.
The fund is aimed at individuals looking for global equity exposure from the MSCI World Islamic Index universe with a minimum investment horizon of five years, Strydom says.