ShariaPortfolio is the sponsor of the Express wrap fee program. Our wrap fee program allows you to
pay a single fee that covers advisory services, trade execution, custody, and other standard brokerage
services.
The investment advice provided by ShariaPortfolio is variable depending upon the desires, investment
objectives, and other preferences of the client and in accordance with a written Investment Advisory
Agreement entered into between ShariaPortfolio and the client.
ShariaPortfolio offers investment advisory services, which encompasses portfolio management as well
as providing financial consulting/financial planning to clients and is designed to assist clients in
meeting their financial goals through the use of financial investments. ShariaPortfolio will conduct one
or more meetings (in person, if possible, otherwise via telephone conference) with the client in order
to understand the client’s current financial situation, existing resources, financial goals, and tolerance
for risk. Based on this information ShariaPortfolio will recommend an investment approach to the
client. Upon written execution of the Investment Advisory Agreement, ShariaPortfolio will work with
the client to establish or transfer investment accounts so that the Firm is able to manage the client’s
portfolio. ShariaPortfolio may periodically rebalance or adjust client accounts under its management.
Investment advisory recommendations are based on the client’s financial situation and investment
objectives at the time the services are provided and are based on financial information disclosed by
the client. ShariaPortfolio will periodically contact clients to determine whether any changes have
occurred to their overall objectives and/or situation. However, if the client experiences any significant
changes to their financial or personal circumstances, it is the client’s responsibility to timely notify the
Firm so that such information can be used in managing the client’s portfolio and determining if changes
are necessary. In addition, ShariaPortfolio does not assume any responsibility for the accuracy of the
information provided by clients. Clients are advised that certain assumptions may be made with respect
to interest and inflation rates and past trends and performance of the market and economy. Past
performance is in no way an indication of future performance.
A. Services under the Wrap Fee Program
ShariaPortfolio’s Wrap Program, known as the “Express Program” (the “Program”) is an advisory
program sponsored by ShariaPortfolio. ShariaPorfolio is registered as an investment advisor with the
SEC under the Investment Advisers Act of 1940, as amended, and is a Florida corporation.
The Program is available online only via a dedicated website and offers clients investment strategies
that consist of diversified model portfolios that are managed on a discretionary basis.
ShariaPortfolio provides administration and related services for the Program. ShariaPortfolio provides
portfolio management services for Program accounts on a discretionary basis consistent with clients’
chosen investment strategy. Charles Schwab & Co., Inc, member FINRA/SIPC/ (“Schwab“), a
separately owned and unaffiliated SEC-registered broker-dealer and FINRA member, acts as the
qualified custodian for Program accounts and provides trade execution and related services for
Program accounts.
The Program is a digital investment platform option designed for clients who are in the early stages of
accumulating savings or otherwise wish to utilize a digital investment platform. The Program has been
developed in partnership with unaffiliated third parties, whereby ShariaPortfolio licenses software,
tools and services that are made available to our clients. The Firm will determine whether the Program
is suitable for each client before permitting the client into the Program.
Clients give investment discretion to ShariaPortfolio to manage their account and make trades in their
account. Clients may request that certain securities be excluded from their account, but ShariaPortfolio
is not required to accept account restrictions that it deems unreasonable. A request to exclude certain
securities from a client’s account may result in delays in the management of the account and a client
may be notified that the account cannot be managed with the requested investment restrictions.
Clients should carefully consider whether their participation in the Program is appropriate for their
investment needs and goals. Clients can change their investment strategy by contacting ShariaPortfolio
and completing a new assessment.
Clients within the Program can communicate with ShariaPortfolio via electronic channels (i.e., email),
the ShariaPortfolio office, and via telephone.
Schwab’s Brokerage Services:
In addition to the advisory services, the wrap fee program includes certain brokerage services of
Charles Schwab & Co., Inc. (“Schwab”) a broker-dealer registered with the Securities and Exchange
Commission and a member of FINRA and SIPC. We are independently owned and operated and not
affiliated with Schwab. Schwab will act solely as a broker-dealer and not as an investment advisor to
you. It will have no discretion over your account and will act solely on instructions it receives from us
[or you]. Schwab has no responsibility for our services and undertakes no duty to you to monitor our
firm’s management of your account or other services we provide to you. Schwab will hold your assets
in a brokerage account and buy and sell securities and execute other transactions when we [or you]
instruct them to. We do not open the account for you.
B. Fees
We charge a single asset-based fee for services covered by the wrap program. The maximum fee
charged for the program is set forth below.
The client agrees to pay a management fee relating to the Express Program quarterly, in advance. The
Express Program and its fee are different and separate from our Access Program and its fee or our
other advisory services. Please refer to Form ADV Part 2A for details.
The Company charges the following management fees for assets managed under the Express Program:
Assets Under Management Annual Advisory
0 to $500,000 .75%
$500,000 to $1,000,000 .60%
$1,000,001 to $5,000,000 .50%
> $5,000,000 .40%
Mutual Fund/ETF Portfolios .50%
The Express Program fee includes ShariaPortfolio’s portfolio management services and administration
services as well as Schwab’s trade execution, custody, and related services.
To the extent that cash used by clients to fund their Program accounts comes from redemptions of
mutual fund shares, exchange traded fund (“ETFs”) or other investments outside of the Program, there
may be tax consequences or additional costs from sales charges previously paid and redemption fees
incurred.
The fees that clients pay directly and indirectly in the Program may be more or less than they would
pay if they purchased separately the types of services in the Program. Clients may be able to obtain
some or all of the types of services available through the Program on a stand-alone basis from other
firms. Factors that bear upon the cost of the Program in relation to the cost of the same services
purchased separately include, among other things, the type and size of the account (and other accounts
that clients may be able to combine to determine fee break points), the historical and expected size or
number of trades for an account, and the number
and range of supplementary advisory and other
services provided to an account. As ShariaPortfolio absorbs certain transaction costs in wrap fee
accounts, ShariaPortfolio may have a financial incentive not to place transaction orders in those
accounts since doing so increases its transaction costs. Thus, an incentive exists to place trades less
frequently in a wrap fee arrangement.
Lower fees for comparable services may be available from other sources. These fees may be negotiated
by ShariaPortfolio under certain circumstances, and at the sole discretion of ShariaPortfolio.
Should a client open an account during the quarter, management fees will be prorated for assets held
for a partial quarter based on the number of days that the account was open during the quarter. In the
event that ShariaPortfolio’s services are terminated mid-quarter, the annual fee shall be prorated
through the date of termination as defined in the Agreement and any earned, unpaid balance will be
immediately due and payable by client, and any pre-paid unearned fees will be promptly refunded to
the client.
Asset Allocation Ranges (as of 2022)
Asset Allocation
Model
Equity Sukuk Cash RE
Aggressive 80-95 0-10 2-6 0-10
Moderate 40-80 10-50 2-6 0-20
Conservative
Sukuk
10-40 50-80 2-6 0-20
0-10 80-95 2-6 0-20
• Each model has a minimum and maximum range for asset allocation
• Asset types are Equity, Income (Sukuk), Real Estate and Cash.
• Precious metals are considered part of Equity allocation.
• Under extreme market conditions, portfolio managers may temporarily stray from these ranges.
A financial crisis, war, or other major event can warrant this.
Terminated Accounts
To terminate our portfolio management services, either party (you or us), by written notification to the
other party, may terminate the Investment Advisory Agreement at any time, provided such written
notification is received at least 5 days prior to the date of termination. Such written notification should
include the date the termination will go into effect along with any final instructions on the account
(i.e., liquidate the account, finalize all transactions and/or cease all investment activity).
In the event termination does not fall on the first/last day of a calendar quarter, you shall be entitled to
a pro-rated refund of the prepaid quarterly management fee based upon the number of days remaining
in the quarterly cycle after the termination notice goes into effect. Once the termination of investment
advisory services has been implemented, neither party has any obligation to the other – we no longer
earn management fees or give investment advice and you become responsible for making your own
investment decisions.
If ShariaPortfolio’s services are terminated by written notice by either party, ShariaPortfolio will
conduct an analysis of services provided to determine whether any pre-paid costs were unearned, and
any such unearned pre-paid costs will be refunded to the Client on a pro-rata basis. If the prorated
refund amount is $10 or more then ShariaPortfolio will send the client the refund check. Any amount
below $10 the Firm will not send.
Upon notice of termination to the Client, ShariaPortfolio will begin the process of removing its access
to the Client’s Advisory Accounts; however, the custodian may require a reasonable amount of time
to liquidate and/or transfer assets, including time for required recordkeeping, processing, and
complying with the rules and conditions imposed by mutual fund companies, stock exchanges, or
securities issuers.
A wrap fee is not based directly on the number of transactions in your account. Various factors
influence the relative cost of our wrap fee program to you, including the cost of our investment advice,
custody and brokerage services if you purchased them separately, the types of investments held in
your account, and the frequency, type and size of trades in your account. The program could cost you
more or less than purchasing our investment advice and custody/brokerage services separately.
C. Compensation
ShariaPortfolio does not receive any special compensation for recommending the Program to clients
who participate in the Program other than the compensation received from the ShariaPortfolio
management fee charged by the Firm. The Wrap Fee may vary depending on a number of factors. The
Wrap Fee is generally determined at the time of initial investment; subsequent increases or decreases
in investment size do not result in an adjustment to the Wrap Fee, unless specifically negotiated,
notwithstanding different fee tiers for asset ranges that are discussed in our ADV Part 2A Brochure.
Our wrap fee does not cover all fees and costs. The fees not included in the wrap fee include charges
imposed directly by a mutual fund, index fund, or exchange traded fund which shall be disclosed in the
fund’s prospectus (i.e., fund management fees and other fund expenses), mark-ups and mark-downs,
spreads paid to market makers, fees (such as a commission or markup) for trades executed away from
Schwab at another broker-dealer, wire transfer fees and other fees and taxes on brokerage accounts and
securities transactions.
D. Express Program Disclosures
The benefits under a wrap fee program depend, in part, upon the size of the account, the costs
associated with managing the account, and the frequency or type of securities transactions executed
in the account.
• For example, a wrap fee program may not be suitable for all accounts, including but not
limited to accounts holding primarily, and for any substantial period of time, cash or cash
equivalent investments, fixed income securities or no-transaction-fee mutual funds, or any
other type of security that can be traded without commissions or other transaction fees.
• In order to evaluate whether a wrap [or bundled] fee arrangement is appropriate for you, you
should compare the agreed-upon Wrap Program Fee and any other costs associated with
participating in our Wrap Fee Program with the amounts that would be charged by other
advisers, broker-dealers, and custodians, for advisory fees, brokerage and execution costs,
and custodial services comparable to those provided under the Wrap Fee Program.
E. Conflict of Interest
When managing a client's account on a wrap fee basis, we receive as compensation for our
investment advisory services, the balance of the total wrap [or program] fee you pay after custodial,
trading and other management costs (including execution and transaction fees) have been deducted.
Accordingly, we have a conflict of interest because we have a financial incentive to maximize our
compensation by seeking to reduce or minimize the total costs incurred in your account(s) subject to
a wrap fee.
• For example, our wrap fee arrangement creates incentives for our [advisers/firm] to trade
less frequently or select investments that that reduce our costs, and in some cases increase
expenses that are borne by the client.
We are available to discuss Schwab’s execution related pricing with you so that you can compare the
total costs of entering into a wrap fee arrangement versus a non-wrap fee arrangement.] If you choose
to enter into a wrap fee arrangement, your total cost to invest could exceed the cost of paying for
brokerage and advisory services separately.