The FTSE SGX Shariah Index Series, launched by FTSE Group and the Singapore Exchange (SGX), reflects the stock performance of companies in the Asia Pacific region whose business activities comply with Islamic Shariah Law. The FTSE SGX Asia Shariah 100 Index is the first in the series to be launched. Independent screening is carried out by Yasaar Ltd, an organisation with a global network of expert Shariah scholars. The screening approach is described below.
Initially, companies involved in any of the following activities will be filtered out as non-Shariah compliant:
The remaining companies are then further screened on a financial basis. The following financial ratios must be met for companies to be considered Shariah-compliant:
Yasaar Limited scholars represent all of the major Shariah schools of thought, creating a best practices approach that has credibility across the Islamic world. More information on Yasaar Limited is provided below or visit their website. For further details on the Shariah screening methodology, please refer to the FTSE Shariah Global Equity Index Series Ground Rules which are available here.
Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.