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Wealthsimple wants to seduce the practicing muslims


Mathieu Carbasse

23 August, 2017 11:30

Wealthsimple has just launched investments » halal «, which allow customers to save money while adhering to the laws of the shari’a, which prohibit investment in certain companies and financial products. In fact, the muslims of the more pious must not take advantage of some forms of interest as well as certain commercial activities such as alcohol, tobacco, and gambling.

«We want to allow everyone to enjoy a healthy financial life by making it easy to access the best products and investment advice, said Michael Katchen, president and co-founder of Wealthsimple. A lot of financial products current are inaccessible to practicing muslims, while many of the options, in accordance with the sharia, are expensive, or have minimum rates. We wanted to offer a wallet that had all the benefits of our other portfolios, while respecting the practices of islamic investment. «

No minimum required

The portfolio halal Wealthsimple is using the same strategy of passive investment other portfolios of the company. Therefore, there is no required minimum in the account — investors can start with as little as one dollar — and the costs remain constant and without surprise to 0.40% and 0.50 % of assets under management, according to the total amount invested. Investors can manage their account via the digital platform of Wealthsimple and have unlimited access to financial advisors experienced by phone, email, and text message.

Index islamic ACWI of MSCI

The portfolio is composed exclusively of 50 actions to maximize diversification and to closely follow the index islamic ACWI of MSCI. The shares used in the portfolio have been selected by two verification process : one depending on the nature of the commercial activity of the company and the other according to the finance thereof. The first criterion has filtered the companies directly involved in activities that are forbidden such as alcohol, tobacco, gambling or the raising of pork. The financial criterion of passing companies taking a significant interest income, or who benefited from a strong leverage effect with debt to generate profits.

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