Islamic Indices

Shariah compliant indices for countries, regions and sectors key to Islamic finance

Highlights

  • Multiple Islamic asset coverage
  • Built by Islamic finance experts
  • Accepted in all Islamic markets

Intended for

  • Fund Manager
  • Research Analyst
  • Shari'a Advisor

Description

Thomson Reuters/IdealRatings Indices cover the most popular Islamic investment destinations, such as BRIC, MENA, Malaysia, UAE and Global Healthcare. The indices are accepted under all interpretations of Islam and combine Thomson Reuters' unparalleled coverage and consistent, rules based methodology with IdealRatings' expertise and research-based approach to Shariah-compliant screening.

Sukuk Indices have been developed with Bond Pricing Agency Malaysia (BPAM), which has extensive experience of independently valuing bonds and sukuk. Sukuk indices are available for both Malaysian and global markets, covering a wide range of bond classes and maturities.  

Features

Benefits

Thomson Reuters/IdealRatings Indices:

Ratings utilize an AAOIFI adherent screening process which is approved by Shariah scholars
  • Guarantees broadest acceptance across countries and different enterpretations of islamic law
Characterized by quarterly, research-based Shariah compliance screening performed by a dedicated research team, compared to the automated approaches used in other Islamic benchmarks.
  • Ensures most accurate, up to date Shariah screening of index constituents

The Thomson Reuters Global Sukuk Index:

Covers US Dollar denominated, long term sukuk for both government and corporate sectors
  • Acts as a highly representative indicator of global USD sukuk

The Thomson Reuters BPA Malaysia Index:

Covers all Malaysian Sukuk, with 36 different variants available, including indices for only the most liquid Sukuk
  • Ability to benchmark the performance of Malaysian Sukuk funds, or build liquid investment products tracking Malaysian Sukuk

Press Release

Thomson Reuters Launches New Global Islamic Index to Monitor Sukuk Market

Thomson Reuters announced the launch of the Thomson Reuters Global Sukuk Index, an independent and transparent benchmark for investors seeking exposure to sukuk (Shariah-compliant) fixed-income investments, to be used to monitor the performance of the sukuk market. The announcement of the launch of the index was made today at the Global Islamic Finance Forum (GIFF) 2012 in Kuala Lumpur, Malaysia.

Press Release

Thomson Reuters Named Best Islamic Index Provider in the Asset Triple A Islamic Finance Awards 2013

Thomson Reuters honoured for Islamic Finance and Index provision expertise

Press Release

Thomson Reuters and Crescent Wealth Launch Islamic Investment Index for the Australian Market

Thomson Reuters and Crescent Wealth open up emerging Islamic finance market, expanding investment opportunities and strengthening Australia’s position as a destination for Islamic investment

Thomson Reuters IdealRatings Islamic Indices

Thomson Reuters/IdealRatings indices are characterized by quarterly, research-based Shariah compliance screening performed by IdealRatings compared to the automated approaches used in other Islamic benchmarks. This results in a more reliable and accurate index that ensures the most recent Shariah compliance and  which is AAOIFI adherent.
Thomson Reuters IdealRatings Islamic indices use the same free float, market capitalization weighting methodology as all other Thomson Reuters Global Equity Indices and employ the Thomson Reuters proprietary liquidity filter. This ensures that all index constituents, including those in frontier markets are liquid and therefore investable.  

IdealRatings has been providing Shariah fund management services for financial institutions since 2006. It is the market leader in helping asset managers in more than 10 countries approach, launch and manage Shariah compliant funds with the ability to generate the highest alpha available given the tight compliance and purification process.IdealRatings' proprietary algorithms and software initially search all public information and news available on potential index constituents for non-compliance. A dedicated research team then analyzes the output for accuracy checks by using over 30 revenue streams of interest for each company.
Shariah compliance screening occurs on a quarterly basis. Explanations of constituent deletions due to non-compliance are provided to clients in addition to index returns and constituent weights.
For more information about the Thomson Reuters Shariah mandate, including sector and financial screens, download the fact sheet.

Thomson Reuters BPA Malaysia Bond and Sukuk Indices

Thomson Reuters Indices has teamed up with Bond Pricing Agency Malaysia to provide the most comprehensive range of Malaysian Fixed Income and Sukuk benchmarks available. The indices combine BPA Malaysia’s extensive experience of consistent and market neutral valuations with years of index calculation experience at Thomson Reuters.
The new family of indices include 108 Malaysian Ringgit Sukuk and bond indices comprising 36 Thomson Reuters-BPAM Malaysian Sukuk Indices, 36 Thomson Reuters-BPAM Malaysian Bond Indices and 36 Thomson Reuters-BPAM All Bond and Sukuk Indices covering 778 issues. The Indices cover six bond classes, are archived back to 2007 and have total market capitalization of MYR583,624 million (US$182 billion).
Highly liquid index variants which feature only the top 5 bonds by volume are also available, making them ideal for use as investment products.
To view the indices on Thomson Reuters Eikon on Reuters 3000 Xtra, please use the RIC: 0#BPAMINDEX

Thomson Reuters Global Sukuk Index

The Thomson Reuters Global Sukuk Index is an independent and transparent benchmark for investors seeking exposure to sukuk (Shariah-compliant) fixed-income investments, to be used to monitor the performance of the sukuk market.
Pricing evaluations are produced using two primary methodologies: Model and Dollar Pricing. Most issues priced by the model approach incorporate a benchmark for each market, credit spreads and other variables. Dollar pricing is applied mainly to issues that are unique in their structure or to high –yield securities particularly when the issuer of those securities has defaulted on a bond or has fallen below investment grade. All issues are individually priced and inputs include quotes from the primary dealer and other market makers, and traded prices in the security.
The index is dollar denominated and rules for inclusion will be sukuk with amount outstanding of not less than $100 million and above.

Custom Islamic Indices

Thomson Reuters Crescent Wealth Islamic Australia Index

Thomson Reuters and Crescent Wealth, the Australian Islamic investment manager, have launched an Islamic investment index for Australia to help open up this resource-rich market to Islamic finance investors globally. The Thomson Reuters Crescent Wealth Islamic Australia Index is the first benchmark index to screen ASX-listed companies for compliance with Islamic investment principles using Thomson Reuters unique research-based approach.

  • Lucas Garland

    Head of Product Management, Indices

  • Sayd Farooq

    Head of Islamic Finance, MENA

Download Fact Sheet

Fact Sheets