Islamic Investment

The market for Islamic investment products is growing at an estimated 15-20% per annum, and equity fund assets alone are forecasted to jump from US$15.5bn to US$53.8bn by 2010.

In order to meet the requirements of Islamic investors globally, FTSE, in partnership with Yasaar Research, has created the FTSE Shariah Global Equity Index Series - made up 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 FTSE Shariah Multinationals 150 Index.

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.

KEY FEATURES

• 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 visit: www.ftse.com/shariah.

• 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.

Other Shariah-compliant FTSE indices include the FTSE SGX Shariah Index Series, the FTSE DIFX Index Series, the FTSE Shariah Japan 100 Index, and two indices within the FTSE Bursa Malaysia Index Series.

For more information, please click the links on the right hand side of the page or contact your local press office.