MSCI Global Islamic Indices

The MSCI Global Islamic Indices reflect Sharia investment principles to provide an innovative and relevant opportunity set for Islamic investors. An independent Sharia Board has granted a Fatwa on the MSCI Islamic Index Series Methodology, concluding that the methodology is in compliance with generally accepted Sharia guidelines. The Sharia Supervisory Committee comprises of some of the most widely respected and distinguished scholars from the world of Islamic Finance.

Dr Hussain Hamid Hassan Dr Ali AlQaradaghi Dr Abdul Sattar Abu Ghuddah Dr Mohd. Daud Bakar Dr Aznan Bin Hasan

Stringent Screens for Business Activities and Financial Ratios: The MSCI Islamic Index Series Methodology includes stringent screens of business activities and financial ratios based on total assets. Using total assets rather than market capitalization for the three financial ratio screens results in lower index volatility and lower index turnover, as market capitalization can be more volatile than total assets.

Incorporates Dividend Purification: In addition, the application of a dividend adjustment factor in the creation of the MSCI Islamic Index Series results in more relevant benchmarks, as they reflect the total return to an Islamic portfolio net of dividend purification.

Broad Country Coverage: The MSCI Islamic Index Series are constructed from applicable MSCI country indices and cover over 50 developed and emerging countries including regions such as the Gulf Cooperation Council (GCC) countries and Arabian markets. A complete list of eligible countries for the MSCI Global Islamic Indices may be found along with the MSCI Islamic Index Series Methodology on the Methodology section.

MSCI Global Islamic Indices enable you to:

• Use a relevant benchmark that reflect Sharia investment principles
• Obtain insights for stock screening related to Sharia investment principles
• Help evaluate, select and monitor managers and their performance
• Provide effective research and asset allocation tools
• Construct and issue index-linked products such as listed and OTC derivatives, ETFs, and institutional and retail funds.

To find out more about the MSCI Global Islamic Indices, download the MSCI Global Islamic Index Summary and product fact sheet or contact us.