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
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
- Preferred shares
- Short sales
- Other instruments where any of its components involve the payment or receipt of interest.
Approved by: Dr. Mohamed Elgari