At Atlas Asset Management Limited (AAML), we take immense pride in ensuring that all our Islamic investment offerings strictly adhere to the principles of Shariah. Every investment decision is made under the Shariah Governance Regulations, 2023 (as amended from time to time) and in close consultation with our Shariah Advisors. AAML follows a disciplined and transparent Shariah screening and review process to ensure that all investments remain compliant at all times. Only Shariah-approved asset classes and companies certified by qualified Shariah scholars are considered for investment. No security is included in any Shariah-compliant portfolio without the explicit approval of our appointed Shariah Advisor.

AAML’s Shariah-compliant funds invest only in stocks that are part of the most recent re-composed PSX–KMI All Share Islamic Index, which serves as the initial investment universe. Each security within this universe is further analyzed under the supervision of our Shariah Advisory to ensure compliance with Islamic investment principles. For a company’s stock to qualify as Shariah-compliant, it must meet the following criteria:  

1. Business Activity: The core business of the investee company must be halal and free from involvement in prohibited activities such as conventional banking, insurance, gambling, alcohol, pork products, entertainment media that violate Shariah norms, or any other non-permissible business.
2. Debt to Total Assets Ratio The company’s total interest-bearing debt should not exceed a prescribed threshold (as defined by Shariah standards) relative to its total assets.
3. Non-Compliant Investments to Total Assets The company’s investments in non-permissible financial instruments (e.g., interest-based securities or derivatives) must remain below the approved Shariah threshold.
4. Non-Compliant Income to Total Revenue – Purification Any income derived from non-permissible sources must not exceed the acceptable limit and is subject to purification (cleansing) by donating such income to charity under the guidance of the Shariah Advisor.
5. Illiquid Assets to Total Assets A minimum percentage of the company’s total assets must comprise tangible and illiquid assets to ensure compliance with Shariah trading principles.
6. Net Liquid Assets to Share Price The ratio of net liquid assets to the market price of the share must fall within the prescribed Shariah limits to validate permissibility of trading in the security.

AAML’s Shariah-compliant funds are subject to continuous screening and monitoring to ensure sustained compliance. Our Shariah Advisors review the portfolio periodically and issue formal certification attesting that the investments and operations conform to Shariah principles. Any deviation detected is promptly rectified under their supervision. Through this robust Shariah governance framework, AAML reaffirms its unwavering commitment to offering investment solutions that are ethical, transparent, and fully compliant with Islamic principles.   Note: AAML may invest outside the PSX–KMI Islamic Index only after specific Shariah approval..