MIZĀN: a Shariah Investments Option


Lightstone Capital Management’s Shariah Compliant Strategies are very similar to the Conventional Strategies. However, before we implement our standard screens, we exclude from our selection universe those stocks that are impermissible as put forth in Shariah Law for Shariah Investments. Since these screens can be different given different Shariah Boards, we have implemented a commonly used and accepted set of rules.

Once we have eliminated the non-compliant stocks, we proceed as in our conventional strategies to come up with strategies that hold true to their conventional benchmarks while filling in the “style boxes” to allow for asset allocation and diversification across equity size and style.

Objective screens are used to eliminate stocks from the selection universe that are not allowed under Islamic Law for Shariah Investments. The screens follow generally accepted interpretations of Islamic Law, such as the Dow Jones Islamic Market Index Rulebook, and other authorities.


Stocks are excluded in the following businesses:



  • Alcoholic beverages
  • Financial services
  • Tobacco
  • Aerospace and Defense
  • Movie and TV production and distribution
  • Meat Products
  • Gambling
  • Hotels



Stocks are also excluded with unacceptable levels of debt or interest income:


  • debt greater than 33% of equity
  • accounts receivable greater than 33% of total assets
  • cash and interest bearing securities greater than 33% of equity