Robo-advisor Wealthsimple has introduced a Halal Investing portfolio. The new portfolio allows clients to invest while adhering to Islamic laws that prohibit investing in certain companies and financial products, said the company in an Aug. 23 announcement.
“Religious Muslims are prohibited from profiting from some forms of interest, as well as from certain business activities like alcohol, tobacco and gambling,” states Wealthsimple. The Halal Investing portfolio, was designed using a methodology approved by MSCI's committee of Shariah scholars. It is an all-equity portfolio made up of 50 stocks that closely track the MSCI ACWI Islamic Index.
"A lot of the common financial products are off the table for observant Muslims, and many of the available options are expensive or have high minimums. We wanted to offer a portfolio that had all the benefits of our other portfolios while being compliant with Islamic investing practices," says Michael Katchen, CEO and co-founder, Wealthsimple.
Investors can manage their accounts through Wealthsimple's digital platform, and may also have access to financial advisors via phone, email or text message, says the company.
