Being Muslim in post 9/11 America hasn't been easy and Monem Salam, director and VP of Islamic investing at Saturna Capital in Bellingham, Wash., knows that as well as anyone else.
But even as he agrees that it's probably easier said than done, he still urges financial advisors to set aside any fears of misgivings they might have and take a long, hard look at the American Muslim community for the great business potential that it offers.
"The American Muslim community is very educated and very affluent, and they are looking for investment solutions," Salam says. "Many times, they do not know that they can use an advisor to find these solutions. Advisors need to make an effort to not only try and better understand their existing Muslim clientele, but to also look into this market if they don't really have any Muslim clients on their roster."
What do advisors need to know about the American Muslim community? First and foremost, Salam says, most Muslims are likely to want to invest in Sharia-compliant investment vehicles, so advisors need to not only understand the essence of Sharia principles, they also need to look for investment options like Saturna's Amana Funds (which Salam helps manage) that respect these. The Amana Funds – there are three, the Amana Growth Fund, the Amana Income Fund and the Amana Developing World Fund – all invest according to Islamic principles, principles that require that investors avoid interest payments and investments in businesses such as liquor, pornography, gambling, and banks. The funds also avoid bonds and other fixed-income securities and seek protection against inflation by making long-term equity investments.
Sharia finance is not particularly complex, Salam says, but it is imperative that financial advisors looking to acquire a Muslim clientele understand it fully so as to be able to offer these investment options to these clients – not least, he says, because many Muslims do not even know that Sharia-compliant investment options are available in the U.S.
