Thomson Reuters Islamic Indices
Thomson Reuters provides a global range of Shariah-compliant indices for countries, regions and sectors key to Islamic finance. They complement existing Thomson Reuters Islamic finance content and services and serve as independent, transparent benchmarks for investors seeking exposure to Shariah-compliant equity and fixed income investments.
Thomson Reuters IdealRatings Islamic Indices
Thomson Reuters has developed a range of Shariah compliant benchmark equity indices using the screening capabilities of IdealRatings. The indices combine Thomson Reuters unparalleled coverage of global equity markets and consistent, rules based methodology with IdealRatings expertise and research based approach to Shariah-compliant screening.
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 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.
For more information, download the Thomson Reuters IdealRatings Islamic indices fact sheet.
IdealRatings Shariah Screening
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.
Access and Availability
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.
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.
For more information, download the fact sheet below:
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 369 Malaysian Ringgit Sukuk and bond indices comprising 123 Thomson Reuters-BPAM Malaysian Sukuk Indices, 123 Thomson Reuters-BPAM Malaysian Bond Indices and 123 Thomson Reuters-BPAM All Bond and Sukuk Indices covering 876 issues. The Indices cover six bond classes, are archived back to 2007 and have total market capitalization of MYR709,600 million (US$229 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
For more information, download the factsheets below:
- Thomson Reuters BPA Malaysia Fixed Income and Sukuk Indices Overview 501KB
- Thomson Reuters BPA Malaysia All Bond Index Series 523KB
- Thomson Reuters BPA Malaysia Liquid Index Series 875KB
- Thomson Reuters BPA Malaysia All Bond Index Series and Variants
- Thomson Reuters BPA Malaysia Liquid Index Series and Variants
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.
Learn more about the Thomson Reuters Crescent Wealth Islamic Australia index: