Mutual Funds' Founder Pays Heed to Islamic Tenets

December 23, 2007

Author: Mark Schwanhausser

Source: The Mercury News

Nicholas Kaiser founded Saturna Capital in 1984 after being approached by Muslim investors looking to invest without violating Islamic teachings.

It's probably hard for most Americans to imagine a financial world without interest. We earn it in our savings accounts. We pay it when we shop with credit cards. In Silicon Valley, we couldn't dream of owning a home without a mortgage.

Yet devout Muslims follow strict rules about money, including a prohibition against interest known as riba. In addition, certain businesses are incompatible with Islamic law, including those involving alcohol, gambling, pornography or the production of pork.