Mutual Fund

Question:

Is this okay to use? Are there better investing options? https://www.saturna.com/amana Answer: ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﯿﻢ In the name of Allah, the Most Gracious, the Most Merciful

It is permissible to invest in the mutual fund in reference because they follow the same principles as AAOIFI. Those principles have been mentioned on their website (https://www.saturna.com/amana) as follows: Saturna Capital’s first and largest client, the Amana Mutual Funds Trust, follows Islamic Principles as well as ESG Investing Principles among the equity funds. Islamic principles require investors to share in profit and loss, to exclude investments in prohibited activities, and to avoid speculation in favor of long-term investment. Business sector and ESG screens eliminate companies primarily involved in certain activities including: ● Interest ● Gambling ● Pork ● Fossil fuel extraction ● Alcohol

● Tobacco ● Pornography ● Weapons Financial screens eliminate companies with: ● Greater than 5% of their revenue coming from haram, or unacceptable, sources (such as those listed above). ● Greater than 33% total debt as compared to their market capitalization (trailing 12-month average). ● Greater than 45% accounts receivable as compared to their total assets (trailing 12-month average). The guidelines developed for the Amana Funds help ensure that investments meet the requirements of the Islamic faith and were established by Saturna Capital in collaboration with the Fiqh Council of North America (FCNA), a non-profit organization serving the Muslim community. To ensure that investments continue to meet the requirements of the Islamic faith, Saturna Capital engages Amanie Advisors Sdn Bhd, a leading consultant specializing in Islamic finance. An Introduction to Islamic Finance (Mufti Taqi Usmani): p. 203-212 (Quranic Studies Publishers)

Only Allah knows best

Written by Maulana Mohammad Ahsan Osmani Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham