Islamic Investment

In response to the rising demand for Shariah-compliant investment opportunities, FTSE has developed a range of Shariah indices that provide a broader Shariah index solution for Islamic investors.

The FTSE Shariah Global Equity index series is based on the Large and Mid Cap stocks in the FTSE Global Equity Index Series universe. Screening is then undertaken by Shariah consultants, Yasaar Research Inc., against a clear set of guiding principles.

These indices exclude businesses that offer products and services that are considered non- Shariah-law compliant, such as stocks of companies that operate in alcohol, entertainment, financial services, pork-related products and tobacco, as well as companies where debt is more than 33% of the total assets. Yasaar scholars, who apply the Shariah screening to the FTSE Global Equity Index Series, represent all of the major Shariah schools of thought, creating a best practice approach that has credibility across all regions of the Islamic world.

In addition to the FTSE Shariah Global Equity Index Series, FTSE works with a range of stock exchanges around the world to offer domestic Shariah-compliant solutions. These include the FTSE Bursa Malaysia EMAS Shariah Index Series, FTSE NASDAQ Dubai Shariah Index Series, FTSE SET Shariah Index and FTSE SGX Shariah Index Series. More recently FTSE has extended its Shariah investment opportunities to include other asset classes such as commodities; with the world's first Shariah-compliant FTSE Physical Industrial Metals Index Series.

Key Features of the FTSE Shariah Global Equity Index Series

Comprehensive coverage

The FTSE Shariah Global Equity Index Series covers all regions across both developed and emerging markets, to create a comprehensive Shariah-screened indexing solution. For the latest details on the indices in this series, visit: www.ftse.com/shariah.

Impartial

By partnering with Yasaar Ltd., an impartial consultancy and leading authority on Shariah, with Shariah screening provided through their subsidiary Yasaar Research Inc., FTSE remain neutral and fully up to date with latest practices.

Fatwa-certified

The FTSE Shariah Global Equity Index Series has been fully certified as Shariah-compliant through the issue of a Fatwa (Islamic legal opinion) by Yasaar's principals. To view this document please click here

Asset-based debt screening

A more conservative approach to Shariah compliance is ensured by rating debt ratio limits that are measured as a percentage of total assets, rather than more volatile measures that use a 12 month trailing market capitalisation approach. This ensures that companies do not pass the screening criteria due to market price fluctuation, allowing the methodology to be less speculative and more in keeping with Shariah principles.

School-neutral

Yasaar Ltd. scholars represent all of the major Shariah schools of thought, creating a best practice approach that has credibility across all regions of the Islamic world.

Continuous evaluation

Constituents are continually evaluated by Yasaar Research Inc. against stringent Shariah principles, enabling FTSE's quarterly reviews to reflect the most current Shariah-compliant status.

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