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Products July 5, 2007
SGAM to Offer S&P Shariah-compliant Funds
July 5, 2007 (PLANSPONSOR.com) - SGAM Alternative
Investments (SGAM AI) has announced plans to offer
Shariah-compliant index funds linked to Standard & Poor's
Shariah indexes.
Reported by Adrien Martin
According to a SGAM press release, the funds will track the S&P US Shariah Index, S&P 350 Europe Shariah Index, S&P 500 Japan Shariah Index , S&P BRIC Shariah Index and S&P GCC Shariah Index.
SGAM AI plans to use various local distribution networks to market the funds, particularly in the Middle East. The funds will be sold in a Luxembourg-based SICAV UCITS III format, the release said.
The investment company’s launch of the Shariah products follows its release in July 2006 of the SGAM AI Baraka Index, based on a selection of global Shariah equities.
S&P Shariah Indices exclude businesses that offer products and services which are considered unacceptable or non-compliant according to Shariah law, such as advertising and media (newspapers are allowed, sub-industries are analyzed individually), alcohol, financials, gambling, pork, pornography, tobacco, and the trading of gold and silver as cash on a deferred basis. S&P’s compliance with Shariah principles is validated by Ratings Intelligence Partners (RI).
S&P began opening its Shariah-compliant
indices in April (See
S&P Unveils Shariah-Compliant Indexes
).
More information can be found at www.globalindices.standardandpoors.com .