When a holding stops being halal

Company financials change, so ratings change. When a holding in one of your funds fails screening, Amal follows the policy you set for that fund and tells you by email.

Key Takeaways

Ratings are refreshed continuously and every fund is re-screened against them
Each fund has one of three policies: sell immediately, wait for the next report, or notify only
Automated sales wait 24 hours so you can step in
Individual stocks outside funds are never sold automatically

The three policies

The policy is chosen when you create a fund and can be changed under Fund settings in the action menu.

The If a stock turns non-compliant setting with three options — Sell immediately. Wait for the next report. Do nothing, notify only.

Sell it immediately. The holding is sold after the review window and the proceeds either stay as cash or are reinvested across the fund, depending on Reinvest on sell.
Wait for next report, sell if still non-compliant. Some breaches are temporary, such as a one-off spike in debt. This option waits for the company's next financial report before acting.
Do nothing. You get the email and decide yourself.

What you see

The fund's Overview tab shows a red notice with a Review holdings button, and the fund's status changes to Needs review. The Screening tab lists the affected holdings.

A fund page with the non-compliant holdings notice

At the same time a Compliance Changes email goes out. It names the fund, the holding, and the action that will be taken.

The review window

For funds set to sell, nothing happens for 24 hours. During that time you can change the fund's policy, or sell earlier yourself. After 24 hours the sale is placed at the next market open. This window can be switched off under Settings → Safety, which we do not recommend. See Safety and disconnecting.

What about doubtful and unrated?

A holding moving to doubtful is not a breach. It stays if the fund allows doubtful stocks and is treated as non-compliant if not. The same applies to unrated. Both are set per fund in the same settings form.

Common problems

I set "sell immediately" but the stock is still there after a day. Sales run at the market open following the 24-hour window, so a weekend adds time. Check the fund's Activity tab for the scheduled sale.

The rating changed back. Will Amal buy it again? Not on its own. The next rebalance includes it if the source fund still holds it and it passes screening.

I disagree with a rating. Email support with the ticker. Ratings follow AAOIFI standards, and we will explain the specific ratio that failed.