Where your money goes: contributions, fees and social responsibility

Knowing where our money goes is part of our social responsibility.

We consider prices, fees and returns when making financial decisions. We should also consider the activities connected with our money and their effects on people and communities.

Whether we are choosing an investment, reviewing our superannuation or selecting a financial provider, we have a responsibility to seek reliable information and take credible concerns seriously.

Understanding What Our Money Is Connected To

An investment fund or superannuation option may hold interests in many companies. Some may be businesses we would never have considered individually.

Understanding those holdings helps us consider the activities, conduct and relationships behind the investment. For protection arrangements, we can ask how contributions are allocated and how any money held or invested is managed.

The questions extend to how businesses treat workers, respect human rights and respond when their activities cause harm.

Social Responsibility Is Part of Our Faith

Qur’an 5:2 calls us to cooperate in goodness and righteousness, and to avoid cooperation in wrongdoing. For us, this is a reminder to consider the wider consequences of our financial choices.

Shariah compliance should never be reduced to a tick on a checklist. It should guide conduct as well as the structure of a product. A responsible approach includes understanding what has been reviewed, which standards were applied and how compliance is monitored.

Our responsibility to care about people continues after a product has been approved.

That means remaining willing to ask questions and reconsider decisions when reliable new information emerges.

Looking Beyond the Label

Words such as “ethical”, “responsible” and “Shariah compliant” should lead us to examine the standards and practices behind them.

Investment screens can differ. Some exclude an activity entirely; others allow involvement below a defined threshold. A policy may also treat direct and indirect involvement differently.

For example, two funds might describe themselves as responsible while applying different rules to companies’ business activities. Reading the actual criteria helps explain what each fund includes.

Clear disclosure should help people compare a provider’s claims with what it actually does.

Questions Worth Asking

What is my money connected to? Ask for current holdings or a clear explanation of how money is allocated.

What standards apply? Ask how Shariah requirements, human rights, labour practices and other ethical concerns are assessed.

What happens when a concern is raised? Look for a review process, clear responsibilities and an explanation of the action taken.

How will I know if things change? Ask how holdings, policies and significant decisions are communicated over time.

We should expect answers that help us make informed decisions.

The Same Standard Applies to Najmaa

Najmaa operates through a discretionary mutual grounded in Takaful. Our community purpose brings a responsibility to explain how the arrangement works and take members’ questions seriously.

We welcome questions about our structure, Shariah oversight and the use of contributions. Trust should grow through clear information, responsible conduct and a willingness to address concerns.

These are standards we should expect from ourselves as well as others.

Frequently Asked Questions

Do I need to be an investment expert?

No. Start with the product documents, available holdings and the provider’s explanations. Ask for clarification when something is unclear, and seek qualified advice where needed.

Does buying shares always put money directly into a company?

No. In secondary-market trading, the buyer purchases existing shares from another investor. The buyer still acquires an ownership interest, so the company’s activities remain relevant to an informed investment decision.

What if an arrangement no longer reflects my values?

Ask the provider to explain its position and review the available options. Consider costs, risks and any benefits you could lose before making changes. A qualified adviser can help assess the consequences for your circumstances.

Make Your Values Part of the Decision

Social responsibility asks us to pay attention, seek evidence and act thoughtfully on what we learn.

Read Najmaa’s key documents and ask us questions about the matters that are important to you.

Know where it goes. Consider what it supports.

Takaful. Protection with Purpose.

Important Information

Protection is arranged by Najmaa Group Pty Ltd (AFSL 527623) and issued by Najmaa Mutual Limited. Protection is not insurance and is provided at the discretion of Najmaa Mutual Limited. Any advice is general advice only and does not take into account your objectives, financial situation or needs. Please read the relevant Product Disclosure Statement, Financial Services Guide and Target Market Determination and consider whether the product is appropriate for you.