Investment Guidelines for Public Equity

COMPANY SELECTIONS – No Investments may be made in:

C Companies whose total debt divided by trailing 12-month average market capitalization is greater than or equal to 33%. (Note: Total Debt = Short-Term Debt + Current Portion of Long-Term Debt + Long-Term Debt)

Companies whose sum of cash and interest bearing securities divided by trailing 12-month average market capitalization is greater than or equal to 33%.

Companies whose accounts receivables divided by total assets are greater than or equal to 45%. (Note: Accounts Receivables = Current Receivables + Long-Term Receivables)

The portfolio must not be invested in companies involved in the following businesses:

  • Manufacture and/or sale/distribution of alcohol, tobacco, pork, music and pornographic productions.
  • Restaurants and hotels/motels except those not selling alcohol.
  • Operators of gambling casinos and manufacturers of gambling machines.
  • Operators of movie theaters and cable TV companies.
  • Financial services (banks, brokerage firms, investment funds that invest in companies that engage in the restricted activities, insurance companies, etc.).
  • Defense and weaponry

FINANCIAL INSTRUMENTS

The following instruments or any derivatives there from must not be used in the portfolio:

  • Future contracts of all kinds
  • Options contracts of all kinds
  • Swaps
  • Preferred shares
  • Short sales
  • Other instruments where any of its components involve the payment or receipt of interest.

Approved by: Dr. Mohamed Elgari