Investment screening
Shariah screening with transparent criteria and repeatable decisions
IHKAM applies the agreed screening standard to companies, portfolios, funds and investment activities, then records the evidence and treatment of borderline cases.
Our approach
A defensible screening process
Screening requires more than a pass-or-fail label. The criteria, data date, calculation method, classification rules and review frequency should be explicit. We help clients establish this basis and produce results that can be understood by investment, compliance and governance teams.
Scope of support
What screening can cover
The methodology is agreed before classifications are made.
Business activities
Assess principal and ancillary activities against the exclusions and thresholds in the selected standard.
Financial ratios
Calculate the applicable ratios using a consistent data source, period and denominator methodology.
Portfolios and funds
Apply criteria across holdings and define monitoring, breach and rebalancing procedures.
Exceptions
Escalate incomplete data, mixed activities and borderline outcomes for documented specialist judgment.
Deliverables
Typical deliverables
- Screening methodology and criteria register
- Company or holding-level assessment
- Calculation workbook or results file
- Exception and escalation log
- Monitoring and rescreening recommendations
Working method
Screening cycle
1. Methodology
Agree the applicable standard, data rules, thresholds and treatment of uncertainty.
2. Data
Collect and validate the information needed for activity and financial analysis.
3. Assess
Apply the criteria consistently and document classifications and exceptions.
4. Monitor
Set an appropriate rescreening frequency and response to status changes.
Frequently asked
Screening questions
Which screening standard is used?
The applicable methodology is agreed for the mandate. Different recognised standards or governance authorities may use different definitions, thresholds and calculation methods.
How often should holdings be rescreened?
Frequency depends on the mandate, data availability and governance policy. The methodology should define both routine reviews and event-driven reassessment.
Is screening the same as investment advice?
No. Shariah screening addresses alignment with the selected Shariah criteria. It does not assess investment merit, valuation or suitability.
IHKAM Advisors
Define a Shariah screening mandate
Share the universe, selected standard and required reporting frequency so we can scope a repeatable process.