Our Business Model

The Business Model

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.

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 a 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.

Join us in making a meaningful impact through responsible lending and strategic trade partnerships. Together, we can create lasting positive change for our community and beyond.

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 Waqf and to consult with experienced financial professionals and Sharia advisors to ensure alignment with Islamic 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 (Sukuk and 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.