A Brief Update for Azzad Clients
At Azzad Asset Management, halal investing means more than avoiding prohibited industries. It also means using our role as shareholders to promote justice, transparency, and responsible corporate behavior. That’s why we filed Proposal 9 for Microsoft’s 2025 Annual General Meeting — a resolution asking the company to report on how it identifies and manages human-rights risks tied to the use of its technology. It received more than a quarter of all outstanding votes at the December 5th meeting, which is a strong showing for a first-time resolution.
Why This Matters from a Shariah Perspective
1. Stewardship
Your wealth is a trust. As stewards of your investments, we aim to manage your capital with care and in alignment with your values, including avoiding industries or practices we view as harmful.
2. Preventing Harm
Microsoft’s AI and cloud tools may be used in ways that can affect human rights, which has been documented throughout the war in Gaza. Transparency helps prevent misuse.
3. Accountability
We believe that shareholder engagement is part of modern Islamic finance. Staying invested when permissible allows us to push companies toward more ethical practices.
Engagement, Not Withdrawal
Azzad screens stocks monthly for AAOIFI compliance, calculates purification on impure revenues, and actively engages with companies on issues like human rights and freedom of expression. Filing proposals is one way we seek to align your investments with your values. We believe that engagement is one of the most effective tools we have to promote positive change.
What This Means for You
- Your investments are managed in a way that considers both your financial goals and your principles.
- You participate in a responsible ownership strategy that seeks to encourage greater accountability from major companies.
- You are part of a growing movement of Muslim investors who aim to use their voice to advance justice.
Halal investing is not about choosing between values and performance; it’s about pursuing an approach that respects both. For nearly a decade, our shareholder advocacy efforts have reflected this commitment.
If you’d like us to give you a second opinion on your portfolio or learn more about how shareholder engagement works, we’d be happy to help. Reach out today.
