Some publicly traded companies generate a small percentage of their income from sources that are considered impermissible, such as interest earned on bank accounts or from secondary businesses in the hospitality or airline industries that offer adult entertainment or alcohol.
Fund managers calculate purification totals in line with AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) guidelines. Our portfolio manager, OneVest, follows strict Shariah-based AAOIFI standards when investing. However, shareholders are still expected to cleanse any impermissible income by donating it to charity.
Manzil provides only conservative estimates of purification figures, which may not reflect the exact amount of non-permissible income. Clients are responsible for disbursing purification to their chosen charities, either from checking or savings accounts, and for any related taxes or penalties. Manzil bears no responsibility for inaccuracies in the calculations or for the payment of purification itself.
