Category Archives: Mutual funds and Islamic investments

Shariah-Compliant Equities Deliver Positive Returns in Q2 2009

Shariah-Compliant Equities Deliver Positive Returns in Q2 2009

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Stocks deemed to comply with Islamic law delivered positive returns during the second quarter of 2009 according to Standard & Poor’s, the world’s leading index provider. 

In the recently published S&P Shariah Report, the S&P Global BMI Shariah Index produced returns of 18.93% over the second quarter to June 30, 2009. This compares to the non-Shariah Global BMI Index, which returned 23.89% in the same period. The S&P GCC Composite Shariah Index returned 27.65% beating the S&P GCC Composite Index, which returned 23.65% over the same period.

Alka Banerjee, Vice President Standard & Poor’s Index Services said: "2009 has been a turbulent year for equity markets, however many indices are still delivering positive returns as certain sectors rally despite the downturn.

"In particular, the S&P Global Benchmark Shariah Index Series has benefited from the recent boost in healthcare and energy stocks. Ironically however, whilst Shariah investors benefited from the indices’ low exposure to financials last year, as they generally do not comply with Islamic law, they did not benefit from the rally in the conventional financial sector over the last quarter."

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Australian Shariah compliant Islamic mutual fund gains global appeal

Australian Shariah compliant Islamic mutual fund gains global appeal


Australia’s LM Australian Alif Fund continues to service untapped global demand for a Shariah compliant, currency protected investment product managed by an experienced, credible Australian funds manager.

The fund is managed by LM Investment Management Ltd (LM), a specialist Australian income funds manager operating internationally from its six offices on the Gold Coast, in Sydney, Hong Kong, Auckland, London, and Dubai, currently with sources of new business inflows from beyond 32 countries.

The LM Australian Alif Fund leverages off LM’s eleven year track record and takes advantage of Shariah compliant investment opportunities throughout Australia’s diverse property and business markets, with assets selected on the basis of performance and integrity.

The fund is endorsed as Shariah compliant, with signed fatwa from the Shariah Supervisory Board, comprising four eminent globally renowned scholars.

According to LM Chief Executive Peter Drake, the LM Australian Alif Fund benefits from "Australian only" assets, and the soundness of the underlying fundamentals of the Australian property market.

"Unlike the rest of the world, Australia has not, and is not, experiencing large declines in values across its property markets.  There has been minimal movement up or down, thus presenting attractive, alternative investment opportunities for global investors."

According to Drake, the fund’s global appeal is further supported by the fund’s "uniqueness" and "untapped" global demand.

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Shari’ah-compliant stock index in Canada launched

Shari’ah-compliant stock index in Canada launched

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Turns out, the Canadian stock market is a good place for Islamic investors.

On Wednesday, Standard & Poor’s launched the S&P/TSX 60 Shariah Index, which is essentially the S&P/TSX 60 index stripped of companies that do not meet Shariah principles that keep investors away from interest-charging companies (banks), pork producers, alcohol producers, casinos and tobacco companies.

The good thing about the Canadian blue chip index is that, apart from banks, there isn’t a whole lot of these no-no companies around. No tobacco. No casinos. No alcohol. No pork.

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Shariah-compliant water fund set to launch

Shariah-compliant water fund set to launch


Bahrain-based Robeco Middle East has announced that it will be launching one of the world’s first Islamic water funds.

The launch will be in association with their boutique SAM, one of the world’s leading asset managers in the field of sustainability investments, and in conjunction with Gatehouse Bank, one of the leading Islamic banks.

It will offer, on a global basis, the first-ever Sharia-compliant investment strategy in the area of water.

This investment strategy offers professional investors with a long-term investment horizon the opportunity to participate in the worldwide growth of forward-looking, sustainability-oriented companies involved in the entire value chain of water, while adhering to Sharia norms.

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Dow Jones indexes named best Shari’ah-compliant index provider

Dow Jones indexes named best Shari’ah-compliant index provider


Dow Jones Indexes, a leading global index provider, today announced that it has been named “Best Shari’ah-Compliant Index Provider” by Global Finance magazine for the second consecutive year.

The Global Finance awards for World’s Best Islamic Financial Institutions honor those financial institutions that make significant contributions to the growth of Islamic finance and successfully meet their clients’ needs for Shari’ah-compliant products, while creating the foundation for continued fast growth in the future.

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