top of page
Our Business Model
The Business Model
-
1. Legal Structure:Begin with a simple legal structure, such as a Limited Liability Partnership (LLP) or a Limited Liability Company (LLC), to minimize initial setup costs and administrative complexity.
-
2. Governance Board:Establish a Governance Board consisting of individuals with expertise in Islamic finance, philanthropy, and investment management. They will provide oversight, strategic direction, and ensure compliance with Sharia principles.
-
3. Founder(s):The founder(s) will play a key role in initiating the fund, driving its mission, and securing the initial investments. They should have a deep understanding of Islamic finance and a passion for ethical investing and philanthropy.
-
4. Fund Manager:Appoint a Fund Manager responsible for investment decisions and portfolio management. Initially, this role may be filled by one of the founders or a qualified individual with a frugal approach to management.
-
5. Sharia Advisory Board:Engage a Sharia Advisory Board composed of Islamic scholars with expertise in Sharia compliance. They will review and approve all investment opportunities to ensure alignment with Islamic principles.
-
6. Compliance Officer:Designate a Compliance Officer responsible for ensuring regulatory compliance and adherence to Sharia guidelines. This role can be filled by a part-time professional initially.
-
7. Philanthropy Coordinator:Hire or designate a Philanthropy Coordinator to oversee the allocation of funds to philanthropic causes and monitor the impact of these initiatives. This role can begin as part-time or contract-based.
-
8. Marketing and Communications Specialist:Employ or outsource the services of a Marketing and Communications Specialist who can manage the fund's online presence, content creation, and outreach efforts in a cost-effective manner.
-
9. Investor Relations:Assign a dedicated team member to handle investor relations and inquiries. This role may begin as part-time or shared among team members.
-
10. Administrative Support:Outsource administrative tasks or consider part-time administrative support to manage day-to-day operations efficiently without significant overhead.
-
11. Accounting and Finance:Initially, utilize accounting and finance services on a contract or part-time basis to handle financial reporting, budgeting, and auditing requirements.
-
12. Technology Infrastructure:Adopt cost-effective cloud-based technology solutions for portfolio management, reporting, and communication, reducing the need for extensive IT infrastructure.
-
13. Legal and Compliance Services:Engage legal and compliance services on an as-needed basis, especially for regulatory filings and contract reviews.
-
14. Investment Research and Due Diligence:Conduct investment research and due diligence internally, leveraging readily available financial data and resources to keep costs low.
-
15. Scalability Plan:Develop a clear plan for scaling the team and infrastructure as the fund grows and attracts more investors.
-
16. Transparent Reporting:Maintain transparency in reporting to build trust with investors and stakeholders, even with a frugal approach.
Investment Thesis
Phase 1
Profit sharing in high yield commodities, which will help to aggressively grow investments. This will be done through the SMART ecosystem model.​
The 2 ways...
1. Smart Loan
We invite you to participate in our Smart Loan programme, tailored for making a positive impact. Here are the steps to get involved:
1. Loan Customisation:​
-
Choose your loan amount (minimum £100,000).​
-
Select a lending period: 6 - 12 months.​
-
Determine the return rate (0% - 10%) — lower rates provide the greatest benefit to the fund.​​
OR​
2. Opt for a one-time permanent donation!
2. Smart Impact Trader
Are you a high-quality business or physical commodity trader? Here's what it takes to qualify as trader:
Criteria:
1. Profitability: Must demonstrate the ability to generate healthy margins of over 30% annually or 5% monthly - higher margins are even more desirable.
2. Track Record: A minimum of two years of established history.
3. Financial Security: Assets must exceed value of funds being lent.
4. Efficient Trading Cycles: Ability to release funds and profits annually/bi-annually.
This allocation mix still incorporates risk management but allows for a somewhat more balanced approach with increased exposure to growth-oriented asset classes like equities and private equity. However, it's important to carefully consider the specific risk tolerance and investment objectives of the Smart Fund and to consult with experienced financial professionals and advisors to ensure alignment with ethical finance principles. Additionally, regular portfolio monitoring and adjustments may be necessary to maintain the desired risk-return profile.
Phase 2 - Diversification as follows:
01 Fixed-Income (Bonds): 15%
This allocation provides stability and some income generation while being slightly less conservative.
02 Equities (Publicly Traded Stocks): 15%
Increasing the allocation to equities can offer more potential for capital appreciation and growth.
03 Real Estate: 15%
Maintaining the allocation to real estate, which can provide income and potential long-term growth.
04 Private Equity: 45%
We propose a slight increase in the allocation to private equity to enhance potential returns, while acknowledging the acceptance of additional risk. This will be accompanied by stringent due diligence, focusing exclusively on companies with positive EBITDA. Additionally, we will ensure 50% investment security through personal or other corporate guarantees.
05 Cash and Liquidity: 10%
Keeping a portion in cash or highly liquid assets for flexibility and immediate needs. Continue allocating a portion of the returns to the philanthropic fund, adjusting it based on the fund's financial performance and philanthropic priorities.
bottom of page