Prospectus - Manulife Insurance Berhad

chapter3 DETAILED INFORMATION ON THE FUNDpage263.8 Shariah Investment Guidelines adopted by the Shariah Adviser andCleansing / Purification Process for the Fund (cont’d)1. Shariah Investment GuidelinesEquity:reference for investments in local securities is based on the list of Shariah-compliantsecurities issued by the Shariah Advisory Council of the Securities Commission (“SACSC”)twice yearly on the last Friday of May and November which is readily available at theSecurities Commission’s website.However, for Initial Public Offering (“IPO”) company that has yet to be determined theShariah status by the SACSC, IBFIM adopted the following analysis in determining itsShariah status. These criteria are adopted by IBFIM as a temporary measure until theSACSC releases the Shariah status of that particular IPO company:i) Quantitative AnalysisIBFIM excludes companies which main business activities involve the following:a) Conventional financial services;b) Gambling and gaming;c) Manufacture or sale of non-halal products or related products (e.g. pork andliquor);d) Manufacture or sale of tobacco-based products or related products;e) Pornography;f) Weaponry;g) Entertainment activities that are not permitted by the Shariah; andh) Other activities deemed non-permissible according to the Shariah.IBFIM deduces the following to ensure that they do not exceed the Shariah tolerablebenchmarks:a) Interest incomes over total incomes and interest incomes over profit beforetax not exceeding 5%;b) Income contribution from mixed activities which involve Shariah-prohibitedelements such as interest-based businesses, conventional banks, insurance,gambling, liquor and pork over total incomes and profit before tax notexceeding 5%;c) Income contribution from mixed activities which involve tobacco andtobacco-related businesses over total incomes and profit before tax notexceeding 10%;d) Mixed rental income contribution from Shariah non-compliant activities overtotal incomes and profit before tax not exceeding 20%; ande) Income contribution from mixed activities which involve businesses such ashotels and resorts, share trading and stock broking over total incomes andprofit before tax not exceeding 25%.should any of the above deductions fail to meet the benchmarks, IBFIM will notaccord a Shariah-compliant status for the companies.Prospectus in respect of the Manulife Shariah - Dana Ekuiti