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 .