sharia FOR INVESTMENT PROFESSIONALS ONLY

Transcription

1 sharia FOR INVESTMENT PROFESSIONALS ONLY

2 A TAM SHARIA PORTFOLIO AT A GLANCE... Award-winning investment managers 5 risk graded choices Defensive to Adventurous Funds compliant with the principles of Islamic Law Regular monthly contributions Minimum investment 10, % annual management charge (AMC) Access to award-nominated You Give We Give scheme Invest directly or via and ISA, SIPP, Pension, Trust or Bond (so long as the provider is Sharia-compliant)

3 1 TAM Asset Management Ltd are an award-winning discretionary investment manager who can trace our company roots back to the 1930's. WHO WE ARE Our team of experienced investment professionals are committed to providing exceptional portfolio management services to individual clients and institutions. We believe that every investor should have access to actively managed, diversified investment portfolios regardless of their level of wealth. This principle is very much a priority for the FCA and forms part of their Mission, that is, to ensure no group of potential investors are denied access to investment services. In 2014 we launched a range of Sharia portfolios for Islamic clients, which aim to protect and grow their wealth in a Shariacompliant manner.

4 2 Our investment team follow a rigorous selection process when picking funds for the Sharia investment portfolios. The team will only select a fund that adheres to a stringent and comprehensive investment process which screens stocks to ensure only companies whose main business or activities are compliant with the principles of Sharia law. The funds selected are expected to invest in shares of companies that: A SHARIA - COMPLIANT APPROACH TO INVESTMENT Only provide Islamic financial services, and no interest related services. Do not manufacture / sell products or services not approved by the Sharia - pork, liquors, tobacco, gambling, pornography etc. Do not have interest revenue exceeding a certain % of total revenue (usually 5%), unless it is given to charity. The principles of Sharia are often considered slightly different by various Sharia fund managers we may use. TAM therefore invest in funds that aim to be compliant with the principles of Islam. Our portfolio service was designed and developed to provide clients peace of mind in relation to key portfolio fundamentals: SECURITY LIQUIDITY TRANSPARENCY RISK MANAGEMENT DIVERSIFICATION PERFORMANCE

5 3 The security of your client's investment is paramount, which is why TAM do not seek to hold client assets directly and instead investments are typically held on the client's behalf with our custodian, Pershing Securities Limited, who: SECURITY AND LIQUIDITY Have over 600,000 clients with assets of over $1 trillion. Are part of The Bank of New York Mellon Corporation (BNY Mellon), one of the world s largest and strongest financial institutions. Offer some of the highest levels of protection available in the industry. Any cash which forms part of the investment strategy is segregated and held on deposit with Al Ryan Bank who are approved by the Sharia Supervisory Committee. However, please note that this is not always possible and cash may from time to time be held on deposit with Pershing Securities Limited, who are not compliant with Islamic investment requirements. The time required to return your clients' money is reported everyday and we do not impose any lock-in periods for clients withdrawing or moving their funds if their circumstances change, or they are not entirely satisfied.

6 4 Everything an adviser or client could need to know about their portfolio is delivered through TAM's innovative online platform. Your access includes: TRANSPARENCY Immediate, comprehensive internet-based valuations Full customisable reporting Commentary available 24 hours a day, 7 days a week Periodic reporting and information down to contract note level Available to keep online, print or save in.pdf format

7 5 We manage portfolios across the spectrum and their composition is driven by current market conditions. RISK MANAGEMENT HIGHER RISK/RETURN POTENTIAL 3 Defensive 15% 85% 4 Cautious 35% 65% 5 Balanced 50% 50% 6 Growth 30% 70% 7 Adventurous 15% 85% Directional Equity Non-Equity 0 TAM Risk Rating LOWER 3 to 5 3 to 5 5 to 7 5 to 7 7+ EXAMPLE INVESTMENT TIME HORIZON (YEARS) The diagram is for illustrative purposes only. The value of investments, and the income from them, may go down as well as up and may fall below the amount initially invested. Weightings may deviate from these levels at the Investment Team's discretion whilst staying within specific guidelines, so the above asset allocation is intended as a guide only.

8 6 TAM use diversification across asset class, geographical focus and underlying funds to spread risk and exposure. The level of diversification within our TAM Sharia portfolios is dependent on the availability of funds that are considered Sharia-compliant. Due to the nature of Sharia investments, the universe of compliant funds can be limited and tends to give rise to higher than usual weightings of up to 25% in each individual security within the TAM Sharia portfolios. DIVERSIFICATION The below shows a snapshot of the asset allocation and fund selection a TAM Sharia Balanced portfolio may invest in. Actual funds purchased will depend on investment timing. Salam Pax Serenity Sukuk Fund Franklin Templeton Global Sukuk Fund BNP Paribas Hilal Fund 45% DIVERSIFICATION ACROSS ASSET CLASS 50% ishares MSCI USA Islamic Fund ishares MSCI World Islamic Fund DB X-Trackers DJ Islamic Market Titans 100 ishares Emerging Market Islamic ETF 5% Cash EQUITY SUKUK BOND CASH Diagram representative of a Sharia Balanced portfolio. Weightings may deviate from these levels at the Investment Team's discretion whilst staying within specific guidelines, so the above asset allocation is intended as a guide only.

9 7 Strategic investment decisions have allowed TAM to capture the positive market performance over the past three years % PERFORMANCE 3 YEAR RETURN % % 23.02% 27.79% % 5 0 TAM SHARIA PORTFOLIO Defensive Cautious Balanced Growth Adventurous Source: TAM Asset Management Ltd. TAM Sharia portfolio return from 1st January 2015 to 31st December 2017 net of TAM fees. Data has been compiled from a 10% sample of unencumbered TAM portfolios where external influences (tax impaired, locked funds, transfers in etc.) have not influenced performance and therefore accurately portray TAM s management strategy. Past performance is not a guide for future returns and investors may get back less than their original investment.

10 8 YOU GIVE The investor decides what percentage of their annual portfolio gain to donate to charity when opening their account. * THE BENEFITS CHOICE Investors can choose any UK registered charity to receive a donation. INNOVATION IN CHARITABLE GIVING WE GIVE TAM will donate the same percentage from our total annual fees. TO A CHARITY OF THEIR CHOICE The investor s chosen charity will receive: Their Donation TAM's Donation PLUS even more through HMRC Gift Aid ** *Maximum of 20% **The eligibility of the client s nominated charity to apply for gift aid and the amount they will receive will vary on a case by case basis. SIMPLE Clear and convenient donation process. FLEXIBLE Investors can readily change their charity of choice, the percentage they give, or opt out completely. PARTNERSHIP Increased donations through shared support from TAM. GIFT AID The charity can benefit, where appropriate, from HMRC Gift Aid to increase that donation.

11 9 YOU GIVE WE GIVE IN ACTION Mrs. Johnson chooses to give 10% of her profit to a local charity: Portfolio value 1 st Jan 100,000 Net Portfolio Value 31 st Dec 105,000 Annual Gain (Net) 5,000 (5%)* You Give, We Give 10% of gain: Charitable donation 500** TAM will also send an additional 10% of their total fees to Mrs. Johnson s chosen charity. * Illustration only, past performance is not a guide for future returns. ** Higher rate tax payers may be eligible to reclaim tax against this. We take care of everything, so you don't have to... You Give We Give will provide your client with a letter each year clearly outlining the calculation and confirming the donation has been made to their chosen charity. Where the investor has opted to provide their details, the chosen charity will receive confirmation of the name, address and appropriate information in relation to potential Gift Aid reclaim. You too can support your client's chosen charity, by donating an equal percentage from your ongoing management fee, simply by ticking the relevant box in the account opening form.

12 10 YOUR PORTFOLIO TEAM LESTER PETCH FOUNDER & CEO & CIO Founded yr+ Experience Phillips Securities Cresvale Target Investment Management JAMES PENNY SENIOR INVESTMENT MANAGER Joined yr+ Experience UBS Wealth STEPHANIE SOTIRIOU SENIOR INVESTMENT ANALYST Joined 2015 First Class Economics Graduate LSE

13 11 JAMES KOOSHAL PENNY SEETUL INVESTMENT ANALYST - MANAGER RISK Joined 2014 Joined yr+ Experience 10yr+ Experience UBS Wealth Sanne Group ERIC WILLIAMSON INVESTMENT ANALYST Joined 2016 First Class Finance, Investment & Risk Graduate PHIL HADLEY MD - INTERNATIONAL OFFICE Joined yr+ Experience Concerto Capital Spectra Capital We have brought together an experienced team of investment managers and analysts.

14 12 We have made our portfolios as accessible as possible. DIRECT (No Wrapper) ACCESSIBILTY We accept investments directly or transfers from your ISA, pension scheme (SIPP and QROPS), life insurance bond, wrapper, or trust. ISA PENSION (SIPP, QROPs) We work with most of the major product providers, taking away adviser burden by liaising directly with the ceding offices. TRUSTEE CORPORATE LIFE BOND

15 Complete a portfolio risk questionnaire This questionnaire is straightforward and will help you and your client decide how much risk they're willing and able to take with their money. YOUR NEXT STEPS Request a comprehensive preinvestment report This report will; describe how the portfolio will be managed, detail current investment strategy and related costs, and provide simple account opening forms.

16 TAM ASSET MANAGEMENT LTD City Tower 40 Basinghall Street London EC2V 5DE +44 (0) For further information please visit DISCLAIMER: This document is intended for use by investment professionals only. The contents of which should not be distributed to, or relied on by retail clients. This document on its own should not be taken as an offer, solicitation or recommendation to use or invest in the services and products mentioned inside. Past performance is not necessarily a guide to future returns. The investments and services mentioned in this document will not be suitable for all investors and TAM Asset Management Ltd does not give any guarantee as to the performance or suitability of an investment for a retail client. Any opinions, expectations and projections within this note are those of TAM Asset Management Ltd, do not constitute investment advice or guaranteed returns TAM Asset Management Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom No Registered in England No Registered Office: 10th Floor, City Tower, 40 Basinghall Street, London, EC2V 5DE. V4.0