FTSE Yasaar Global Equity Shariah Index Series

The FTSE Yasaar Global Equity Shariah Index Series is based on the FTSE Global Equity Index Series universe. Screening is undertaken by Shariah consultants, Yasaar Limited, against a set of guiding principles. The series has been fully certified as Shariah-compliant through the issue of a Fatwa (Islamic legal opinion) by Yasaar's principals. The screening approach is briefly as follows:

Initially, companies involved in any of the following activities will be filtered out as non-Shariah compliant (exceeding 5% of total revenue):

• Conventional finance (non-Islamic banking, finance and insurance, etc.)
• Alcohol and Intoxicants: All forms of Alcohol or Alcohol based products and other intoxicants including, but not limited to, those participating in the alcohol/intoxicants trade businesses and offerings including the entire process chain
• Pork-related products and non-halal food production, packaging and processing or any other activity related to pork and non-halal food
• Entertainment (casinos, gambling, cinema, music, pornography and hotels)
• Tobacco in all its forms, processors, vendors and manufacturers including but not limited to raw or treated tobacco, electronic cigarettes and vapes, cigarettes, cigars, Shisha and other water pipes using tobacco
• Weapons, arms and defence manufacturing.

The remaining companies are then screened on a financial basis. The following financial ratios must be met for companies to be considered Shariah-compliant:

• Debt is less than 33.333% of total assets
• Cash and interest-bearing items are less than 33.333% of total assets
• Accounts receivable and cash are less than 50% of total assets
• Total interest and non-compliant activities income should not exceed 5% of total revenue.

Yasaar Limited scholars represent all of the major Shariah schools of thought, creating a best practices approach that has credibility across the Islamic world. More information on Yasaar Limited is provided below or visit their website.