Islamic Wealth Management
Sophisticated Shariah compliant wealth management for high net worth Muslim families. Portfolio construction. Sukuk. Halal real estate. Family offices.
Sophisticated Wealth Management for High Net Worth Muslim Families
Managing significant wealth is complex. Managing it in a Shariah compliant way is even more complex. You need to balance risk and return. You need to diversify across asset classes. You need to consider tax implications. You need to plan for the next generation. And you must do all of this while avoiding riba, gharar, and haram industries.
Our Islamic Wealth Management service is designed for high net worth Muslim families. We work with private banks, family offices, and directly with wealthy families to design Shariah compliant investment strategies. We cover public equities that are screened for halal compliance. We cover Sukuk which are Islamic bonds. We cover Islamic private equity and venture capital. We cover halal real estate. We cover Shariah compliant alternatives like commodities and art.
We do not manage your assets directly. Your assets stay with your existing custodian or private bank. We advise on strategy and compliance. We help you construct a portfolio that meets your return objectives and your risk tolerance while remaining fully halal. We help you select investment products and managers. We monitor your portfolio quarterly for ongoing compliance.
Our team includes investment professionals who have worked at major wealth management firms. And it includes Shariah scholars who understand the nuances of Islamic finance. Together we provide advice that is both financially sound and religiously authentic.
Do not leave your wealth to chance. Do not compromise your principles for returns. You can have both. We will show you how.
What's Included
Portfolio Construction
We help you design a Shariah compliant investment portfolio tailored to your goals and your risk tolerance. We start with your current portfolio if you have one. We analyze its asset allocation, its risk characteristics, and its Shariah compliance. We then recommend adjustments. The target portfolio may include public equities screened for halal compliance, Sukuk from sovereign and corporate issuers, Islamic private equity funds, halal real estate investments, Shariah compliant commodities, and cash in Islamic savings accounts. We provide a written investment policy statement that documents your portfolio strategy.
Family Office Setup
If your family has significant wealth, you may benefit from a family office. A family office is a private company that manages your wealth, your taxes, your estate planning, and your philanthropy. We help you set up an Islamic family office. We advise on the legal structure. We advise on Shariah governance including a Shariah board for the family office. We advise on hiring investment professionals. We advise on operational processes. We can also serve as your outsourced family office if you prefer not to hire your own staff. This gives you the benefits of a family office without the overhead.
Investment Policy Statement
An investment policy statement or IPS documents your investment strategy. It is the foundation of all investment decisions. The IPS defines your return objectives, your risk tolerance, your time horizon, your liquidity needs, and your Shariah constraints. The IPS also defines how the portfolio will be monitored and rebalanced. We help you draft an IPS that is both practical and Shariah compliant. Once the IPS is approved by you and your Shariah board, your investment managers must follow it. The IPS provides accountability. It prevents reactive decisions during market volatility.
Zakat Integration
We integrate zakat calculation into your wealth reporting. Your investment portfolio generates returns. Some of those returns may be subject to zakat. Some may need purification. We calculate your zakat obligation annually based on your entire net worth including your investment portfolio. We also calculate any purification amounts for impermissible income that may have entered your portfolio despite our best efforts. You receive a zakat report alongside your investment performance report. You can pay your zakat directly from your investment account if you wish.
Ongoing Compliance Monitoring
Shariah compliance is not a one time event. Companies change. Their businesses change. Their debt levels change. A stock that is halal today may become non compliant tomorrow. We monitor your portfolio quarterly for ongoing compliance. We screen every holding again each quarter. If any holding becomes non compliant, we alert you immediately. We recommend a halal alternative. We help you execute the trade. We also provide a quarterly compliance certificate that you can share with your Shariah board. The certificate gives you peace of mind that your portfolio remains halal.
Legacy and Estate Planning
We integrate your wealth management with your estate planning. Your investment portfolio should not just serve you during your lifetime. It should serve your heirs after you pass away. We work with our estate planning team to ensure your portfolio is structured for smooth inheritance under Faraid. We ensure your Sukuk holdings are transferable to your heirs. We ensure your private equity interests can be valued and divided. We ensure your real estate holdings are properly titled. The goal is that your heirs receive their inheritance quickly without disputes or fire sales of assets.
How It Works
Discovery
We meet with you and your family to understand your wealth, your goals, your values, and your risk tolerance. We also meet with your existing advisors like your private banker, your accountant, and your lawyer. We review your current investment portfolio and its performance. We provide a preliminary assessment of your Shariah compliance status.
Strategy Development
Based on our discovery, we develop a proposed investment strategy. The strategy includes target asset allocation, recommended investment vehicles, expected returns, risk metrics, and Shariah compliance framework. We present the strategy to you and your Shariah board for feedback and approval.
Implementation
Once the strategy is approved, we help you implement it. This may involve selling non compliant holdings, buying new halal holdings, opening accounts with new investment managers, or restructuring existing accounts. We coordinate with your private bank to execute trades. You provide the authorization. We provide the instructions.
Monitoring
After implementation, we monitor your portfolio quarterly. We screen all holdings for continued Shariah compliance. We track performance against benchmarks. We report to you and your Shariah board. We recommend adjustments when needed.
Annual Review
Each year we conduct a comprehensive review of your portfolio. We revisit your goals and your risk tolerance. Life changes. Your wealth changes. Your portfolio should change too. We update your investment policy statement if needed. We rebalance your portfolio. We calculate your zakat. We provide an annual report.
Ongoing Advisory
Between reviews, we are available for questions. If a market event happens, we advise on whether to stay the course or adjust. If a new investment opportunity arises, we evaluate it for Shariah compliance and fit with your strategy. If your personal circumstances change, we adjust your plan accordingly.
Frequently Asked Questions
Our Islamic Wealth Management service is designed for high net worth individuals and families. The minimum portfolio size is USD 1 million equivalent. This is because the complexity of the analysis and the customization of the service require a certain scale to be cost effective. If your portfolio is smaller than USD 1 million, we recommend our Halal Investment Portfolio Review service instead. That service is designed for smaller portfolios. It provides a one time compliance check and recommendations. It does not include ongoing monitoring or family office setup. But it is much more affordable.
No. We are an advisory firm not an asset manager. We do not take custody of your assets. We do not execute trades. Your assets stay with your existing custodian or private bank. We advise on strategy and compliance. We recommend specific investments. You or your private banker execute the trades. This structure has two benefits. First it avoids conflicts of interest. We have no incentive to recommend investments that generate higher fees for us. Second it keeps your assets safe. You never need to worry about us running off with your money. Your assets are held by regulated institutions like HSBC, UBS, or Credit Suisse.
We cover most major asset classes. Public equities including global stocks that are screened for halal compliance. Sukuk including sovereign Sukuk from Malaysia, Indonesia, UAE, and Saudi Arabia, and corporate Sukuk from investment grade issuers. Islamic private equity and venture capital for accredited investors. Halal real estate including direct property ownership and real estate investment trusts that are Shariah compliant. Shariah compliant commodities including gold and silver. Islamic savings accounts and profit sharing accounts for cash holdings. We do not cover derivatives, options, futures, or other speculative instruments because they involve gharar or excessive uncertainty.
Currency hedging typically involves forward contracts which are prohibited in Islamic finance because they involve a sale of currency that is not delivered immediately. However there are alternatives. You can hold multiple currency accounts. If you expect to need US dollars, you can hold US dollars directly. You can also use Islamic hedging instruments like commodity Murabaha in different currencies. These are more complex and less common. For most investors, the simplest approach is to accept currency risk as part of international investing. Over the long term, currency fluctuations tend to balance out. If you need to hedge for a specific liability, we can design a custom solution. Contact us to discuss.
Yes we can work alongside your existing wealth manager. You do not need to fire your private banker or your financial advisor. We add value by providing Shariah compliance expertise that your existing advisor may lack. We review their recommendations. We ensure that any investments they suggest are halal. We also provide Shariah training to your advisor so they can better serve you in the future. Many of our clients use this model. They keep their existing advisor for general wealth management. They bring us in for Shariah oversight. The two firms work together. You get the best of both worlds.
Our fees are based on a percentage of assets under advice. The typical fee is 0.5 percent to 1 percent per year depending on portfolio size and complexity. For example on a USD 5 million portfolio, the annual fee would be USD 25,000 to USD 50,000. This fee includes portfolio construction, quarterly monitoring, annual review, zakat calculation, and ongoing advisory. It does not include transaction costs which are paid to your private bank separately. We do not charge performance fees or commissions. We are aligned with your interests not with our own. For family office setup and ongoing family office services, we charge a fixed monthly retainer plus a lower percentage of assets. Contact us for a custom quote based on your situation.