WVP Ethics Equity is a fund for investors who want their capital to grow — but within clear values. In a world where profit comes first, this fund invests exclusively in large, stable corporations from developed markets, with clear financial parameters and long-term growth potential.
Instead of broad, unfiltered exposure, the portfolio is built selectively, with strict criteria on quality, debt structure and sustainability. The result is a strategy that accepts risk in exchange for higher-return potential.
In managing the fund’s assets, the Company applies the long-standing expertise of the WVP Group, particularly the investment policy of the closed-end investment fund WVP Invest from Austria.
The investment objective will be achieved through professional management of the fund’s assets, namely by building a portfolio of securities on the most developed and most-regulated markets in the world. The fund’s investment policy focuses on large companies — “Large Caps” — that are leaders in their industries and have a continuous, growing track record of paying dividends to investors.
Throughout the investment process, particular attention is paid to minimising the risks that may arise from this type of investing. The fund invests exclusively in companies with market capitalisation above EUR 2 billion from developed countries, selecting those with solid fundamentals that align with Sharia ethical principles and holding them long-term while waiting for them to deliver growth in profits from their operations.
The portfolio-building process begins by excluding sectors and activities that do not align with Sharia principles; specifically, companies are excluded if more than 5% of their total revenue comes from:
The Company ensures that no company included in the portfolio has a debt-to-market-capitalisation ratio above 33% or holds cash and short-term financial instruments exceeding 33% of its market capitalisation. This strict financial criterion ensures compliance with Sharia rules on interest and debt.
WVP ETHICS EQUITY is an open-end investment fund, established with the approval of the Securities and Exchange Commission of the Republic of North Macedonia under Decision No. UP1 08-52 of 22.07.2024.
This fund is intended for a particular type of investor — one who knows what they’re investing in. It is perfect for:
Financial and audit reports for WVP Ethics Equity Open-End Fund
The strategy on which the WVP ETHICS EQUITY fund’s portfolio is built carries a high level of risk — higher than that typical for money-market funds or for funds that invest exclusively in debt securities (bonds), while at the same time lower than that of funds investing exclusively in shares of small and medium companies or companies from developing countries. The risk-category calculation will be based on the historical movement of the unit price and the net asset value of the Fund once a sufficient sample exists.
| Risk type | Impact level |
| WVP Ethics Equity | |
| Market (Change in:) | |
| securities prices | |
| interest rates | |
| exchange rates | |
| liquidity risk | |
| Credit risk | |
| Political risk | |
| Change of tax regulations | |
| Counterparty risk | |
| Operational risk | |
| Custody risk |
Market risk – Depends on the movement of market prices of the securities that form part of the Fund’s portfolio.
Credit risk – The probability that the issuer of a particular security will not be able, fully or partially, to settle its obligations at the time they fall due.
Interest-rate risk – Changes in interest rates may have a positive or negative impact on the value of the Fund’s assets, since most assets will be invested in debt securities and deposits with authorized banks in the Republic of North Macedonia.
Currency risk – arises when the price of one currency changes relative to another.
Liquidity risk – The probability that, at any given moment, the Fund will have difficulty obtaining funds to settle obligations related to the redemption of units, as a result of being unable to quickly sell financial assets at a price approximately equal to their real value — primarily because of unfavourable current market demand.
Political risk – The probability of potential political crises in the countries where the Fund has invested under this Prospectus may lead to a change in the Fund’s assets.
Risk of change in tax regulations – The probability that the legislative authority, in the Republic of North Macedonia or abroad, will change tax regulations in a way that would negatively affect the Fund’s return.
Operational risk – sums up all the uncertainties that are part of the Company’s day-to-day business activities. They may arise from failures in internal processes, human errors, IT, legal and system errors.
The fund invests in companies that meet criteria for ethical and sustainable operations in line with Sharia investing principles. This includes factors such as not investing in companies dealing with alcohol, weapons, tobacco, gambling, pornography and similar. The aim is to achieve a return, but with a responsible approach to investing.
Not necessarily. Although company selection is constrained by the criteria above, many of the companies invested in are stable and well managed.
This fund is suitable for investors who want their investments to have a positive impact and make a difference in the world, without giving up potential investment returns. It is most often chosen by people who want to combine their financial goals with the personal values they believe in.
MK
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