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Our Strict Ethical Mandate

Ethical Commitment

Up to 50 equities, being ordinary shares listed on the NYSE or NASDAQ and cash, USD or NZD.

Equity investments to be in companies with strong balance sheets that meet the financial ratio’s:

  1. Interest-bearing debt less than 30%.
  2. Interest-bearing investments less than 30%.
  3. Illiquid assets greater than 33% (i.e. they are  assets making or doing something for the good of mankind that exceed 67% of total assets).

Prohibited activities:

  • Products whose return is based on receipt of interest. Including money lending*.
    *Explanation: this excludes all financial institutions, Banks, Money Lenders and Insurance Companies.
  • Gambling and speculative investments*
    *Explanation: this is not just a prohibition of gambling organisations like Casino’s, but also excludes high-risk investment products that rely on chance for success, eg. hedging products.
  • Derivatives*
    *Explanation: these are a high-risk product that rely on chance for success, these are gambling.
  • Alcohol.
  • Tobacco.
  • Weapons of war.
  • Adult entertainment.
  • Gold and Silver hedging.
  • Pork*.
    *Explanation: This limits the investment in meat-based businesses.
  • Leverage* (i.e. borrowing against investors (your) money, not assets).
    *Explanation of leverage: Leverage is a practice of many fund managers. Leverage puts your investment at an unethical risk. Leverage is absolutely prohibited.
  • Fossil fuel exploration.

If an investment is suspected of not complying with the Ethical Mandate, it is sold on the next trading day. 

CASH

  • Any cash held in the Scheme is held in USD or NZD dollars interest-free bank accounts.
  • Non permissible income generated from non-compliant business operations or investments (both operations and non-operations) should not exceed 5% of the total income generated by the company invested in.
  • Each year the effect of the non-permissible income is “purified” by a donation to the poor.
  • Purification is calculated by the Manager and AE Investor pays the sum calculated annually to charities for the poor.
  • Our investment philosophy, strategy, and policies all derive from the Objectives.