FTSE Group and Yasaar Research have launched the FTSE Shariah Global Equity Index Series.
The series is comprised of 96 new Shariah-compliant indices, including the FTSE Shariah Developed Index Series, the FTSE Shariah Emerging Index Series, the FTSE Shariah All-World Index Series, and the FTSE Shariah Multinational 150 Index.
“We are continuing to provide solutions for investors and today’s launch is a positive step forward into a rapidly growing Shariah-related investment market,” says FTSE’s chief executive, Mark Makepeace. “There is a worldwide appetite for Islamic financial products and these new FTSE Shariah indices will provide Islamic investors with an accurate set of Shariah benchmarks, as well as help providers create structured investment products tailored to the global Islamic market.”
The series uses asset-based debt screening, which ensures that companies do not pass the screening criteria due to marketplace fluctuation, allowing the methodology to be less speculative and more in keeping with Shariah principles.
Shariah is the Divine Islamic Law which governs the practical aspect of a Muslim’s daily life. In commerce, it can determine business style and indicate a desire to comply with halal (Islamic permitted) and ethical investing.
Companies involved in the following activities will be considered to be non-permitted business sectors: conventional finance (non-Islamic banking, finance and insurance, etc.); alcohol; pork-related products and non-halal food production, packaging and processing or any other activity related to pork and non-halal food; entertainment (casinos, gambling, cinema, music, pornography and hotels); tobacco; and weapons, arms and defence manufacturing.
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