SGAM to Offer S&P Shariah-compliant Funds

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 .