Australian Islamic Super is well positioned to screen for ethical investments via its alliance with MSCI ESG and its Research’s Sharia Compliance data feed. Australian Islamic Super is thereby able to offer a comprehensive solution to help manage funds in accordance with the needs of Muslim clients.
Australian Islamic Super avoids investments that support:
Banking and Financial Services companies
Alcohol & Tobacco
Casino & Gambling
Military and Weapon Manufacturer
Australian Islamic Super seeks out positive investments that support:
Property & Infrastructure
How We Invest
Australian Islamic Super’s Investment approach main objective which is to maximise member’s investment returns whilst adhering to Islamic principles. To achieve this, we abide by clearly defined socially responsible investment guidelines (Sharia Compliant) and we utilise a multi-style investment approach, well diversified across asset classes.
We believe this allows us to take advantage of future gains, whilst offering a balanced, well-structured portfolio.
Ethical Principles (ESG):
Ethical Principles by integrating environmental, social and governance (ESG) consideration into investment decisions, we believe that investment risks can be better managed and investment opportunities better understood and captured. Australian Islamic Super focus is always on providing strong, consistent performance, whilst also contributing to positive, sustainable change, across society and the environment.
Australian Islamic Super fund manager Integrate ESG considerations into our investment approach has two benefits:
ESG serves to improve risk adjusted investment returns to members.
ESG works to advance the betterment of the community and environment, contributing to positive, beneficial change.
Australian Islamic Super fund manager (First Guardian Capital) adds a layer of Sharia Compliance which is highly disciplined Sharia compliance process (Dar Al Istithmar rule book) offers both an external and internal screening method. This is implemented via an Approved Product List that provides rigor and assurance to our ethical mandate.
In implementing Australian Islamic Super approach, Australian Islamic Super will attempt to seek out companies that are:
Australian Islamic Super will look to invest in environmentally friendly companies and assess their environmental management and performance. This criterion is about assessing a company’s efforts to reduce and avoid environmental pollution.
Australian Islamic Super will invest along socially responsible criteria in which both internal (employee relations and labor practices) and external (stakeholder and community relations) aspects are assessed. Social criteria are based on worldwide minimum standards and best practices and also take into account the manner in which companies deal with human rights issues internally, in their supply chain and in the communities in which they operate. We consider communities in both a local, and global sense.
Australian Islamic Super will review companies for transparency, assessing their financial robustness, clear strategic guidance and good governance. Companies will be monitored as to how they adapt to changing market demands, sustainability trends and macroeconomic driving forces. These criteria measure a company’s ability to make use of the economic benefits of sustainability and good management.
These factors are a very important and often overlooked in investment performance. Below is a practical example of how our ethical philosophy effects our investment decisions.
Examples of the environmental, social and governance (ESG) factors we consider at a company level are:
Australian Islamic Super account will not be invested in companies whose business activities involve:
Financial institutions involved in interest (riba)
Gambling or casinos
Weaponry or defence contractors
Exploitive financial practices
Our Ethical Investment Approach
Australian Islamic Super adopts both positive and negative screening in our ethical investment approach.
Positive screening as a more proactive approach, positive screening is being employed by a growing number of investors. Here, the investor methodically supports companies that set positive examples of environmentally friendly products or production methods and socially responsible business practices. Positive screens require an analysis of complex issues such as pollution, workplace practices, diversity, and product safety.
Many companies are embarking on products that may contribute to the world’s future economic and environmental sustainability. Alternative forms of energy that produce less pollution, such as solar power, wind power, and hydrogen fuel cells, constitute a rapidly growing and potentially profitable area for many investors. Natural food and healthy living products, fiber products that conserve forests, environmental clean-up and recycling, are all areas that can benefit the sustainable future, and are fertile ground for positively screened investments.
Australian Islamic Super’s innovative investment process rewards investments that:
Support the community (local and global) – Encourage locally based business – Focus on education – Advance health and prosperity – Work to overcome poverty
Support innovation and advancement – Life sciences research and development – Green or renewable technologies – Efficient and sustainable technologies
Support the environment – Contribute to preserving eco-systems – Minimise pollution and waste – Energy efficient and building practices – Recycling
Australian Islamic Supper uses MSIC World Islamic Screener which reflects Sharia Investment Principles. MSIC’s Islamic Index conduct their own compliance screening research under the guidance of a sharia board or committee, so any stock included in MSCI is a fair choice for investment.