Thales’ proprietary investment strategy is comprised of two core components; fundamental and ethical analysis.
Fundamental Analysis:
- Thales’ investment strategies for its managed account Clients are based on a proprietary fundamental value approach that systematically ranks, selects and value-weights companies that appear to be undervalued on both an absolute and relative basis.
- Fundamental analysis concentrates on factors that determine a company’s value and expected future earnings. This strategy would normally encourage equity purchases in stocks that are undervalued or priced below their perceived value. The risk assumed is that the market will fail to reach expectations of perceived value.
Ethical Analysis:
Stocks are thoroughly vetted to ensure compliance with Islamic ethical investment values. This is comprised of both qualitative and quantitative screens. The qualitative screens are designed to eliminate companies who’s primary business activity is deemed unethical namely; military equipment and weapons, interest, alcohol gambling, and other non-ethical and non-Islamic unethical activities and products. The quantitative screens are designed to ensure the companies are not overly leveraged or deriving significant income from interest bearing assets, and are not earning haram (impermissible) income above certain thresholds.