The FTSE IdealRatings Islamic Index Series is designed to provide a family of Shariah compliant indices for global investors. Screening is undertaken by Shariah screening provider, IdealRatings.
The FTSE IdealRatings Islamic Index Series includes a range of indices based on the FTSE Global Equity Index Series, regional indices from the FTSE Global Total Cap Index and FTSE Frontier Index, as well as indices from the Russell US Index family and FTSE Global Infrastructure Index Series. The index series includes;
Other Islamic indices available:
The screening approach follows a set of transparent principles that covers both business activity screening and financial screening.
Ideal Ratings Screening Approach:
|Business Activity Screening||Financial Ratios|
Investment is not allowed in companies deriving more than 5 percent of their total revenue from any of the following activities: Conventional finance (non-Islamic banking, finance and insurance, etc.)
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:
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.