ShariaPortfolio, Inc., operates a halal compliant investment platform that provides a socially responsible investment screen, excluding a variety of “sin” stocks, including alcohol, tobacco and gaming. The investment criteria also exclude highly levered stocks, resulting in some measurable downside protection.
Interview with Aliredha Walji, the Vice President, USA of ShariaPortfolio, Inc.
The following is the pre-interview with Aliredha Walji. Be sure to watch the recorded interview above.
Revenue model: ShariaPortfolio has always been a fiduciary, fee-only service firm. With no conflicts of interest, our only revenue comes from the management fee we charge our clients. The exact fee is dependent on the total assets being managed and type of service chosen by the client. Our Express service fee ranges from 0.4 to 0.75% annually while our Access service fee ranges from 0.5 to 1.5% annually.
Scale: We have a total of 13 people on our team currently managing $65M in AUM. We are projected to reach $150M in AUM and roughly 1.3M revenue by FY 2020 any by FY 2022 we hope to achieve $500M in AUM and around 5M in revenue.
What is the problem you solve and how do you solve it?
The Muslim population in the U.S. is projected to grow from 3.45 million in 2017 to 8.1 million by 2050, and despite the growth, Muslims lack access to investment solutions tailored to their religious beliefs. ShariaPortfolio is experienced and well positioned to help this underserved population, offering comprehensive wealth management solutions, robo-advisor service, 401(k) plans for businesses and co-managed accounts for non-Sharia-compliant advisors.
From an investment management standpoint, our historical returns typically thrive in up markets – in 2017 our aggressive strategy outperformed the S&P by 5%. Perhaps more importantly, we also offer greater downside protection than conventional firms since we do not engage in speculative trading and avoid highly leveraged industries. During the financial crisis of 2008, for example, our most aggressive portfolios were only down around 24%, while the broader markets had dropped almost 37%.
More about ShariaPortfolio, Inc. :
ShariaPortfolio, Inc. is a full-service, boutique asset manager specializing in Sharia-compliant investing with international expansion plans in 2019. We believe in carefully maintaining social responsibility and emphasizing ethics in our investment choices. We completely avoid industries related to alcohol, tobacco, pornography and gambling. In accordance with Islamic principles, we also shun pork and interest-based finance and avoid businesses whose operations are highly leveraged. We have been in business since 2003 and currently serve clients in over 25 states. We offer a wider range of solutions than other Sharia-compliant investment advisors, and provide customized services not available at most large brokerage shops.
Aliredha Walji’s bio:
Aliredha Walji manages the US operations at ShariaPortfolio, Inc. Based out of the company’s main office in Lake Mary, FL, Aliredha has traveled across the United States presenting on the topic of Halal Investing at a variety of venues, including mosques, personal residences and large conventions. During his tenure at ShariaPortfolio, Aliredha has helped to double the company’s total assets under management, as well as grow the advisor team. He holds an undergraduate degree from the University of Minnesota, a Masters of Business Administration from Crown College, a faith-based institution, and is currently working on a Certified Financial Planning course through the NYU School of Professional Studies.