Thomson Reuters produces Shariah compliant indices for countries, regions and sectors key to Islamic Finance. The Thomson Reuters IdealRatings Islamic indices complement the wide range of Islamic financial content available on Thomson Reuters products and services, such as the Islamic Finance Gateway.

The 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 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.

For more information, download the Thomson Reuters IdealRatings Islamic indices fact sheet.

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 IdealRatings Indices are available on Thomson Reuters desktop products including Thomson Reuters Eikon; Datastream and Reuters 3000 Xtra. 

Download a complete list of Islamic indices.

Learn more about licensing Thomson Reuters IdealRatings Islamic Indices.