S&P Pan Arab Shari’ah Balanced Index Family launched

15/06/2015 18:16 AST

S&P Dow Jones Indices (S&P DJI) announced today that is has launched the S&P Pan Arab Shari’ah Balanced Index Family which is a family of three indices that combine the S&P Pan Arab Composite Shari’ah and Dow Jones Sukuk Index at various fixed weights depending on the desired allocation of the user. The new indices are designed as benchmarks for multi-asset Shari’ah-compliant funds, and can serve as the potential basis for investment products.

The three indices within the S&P Pan Arab Shari’ah Balanced Index Family are:

S&P Pan Arab Shariah Balanced – Conservative Index – the Index takes a long position in the S&P Pan Arab Composite Shari’ah Total Return Index with a 25 per cent weight, and a long psition in the Dow Jones Sukuk Total Return Index with a 75 per cent weight

S&P Pan Arab Shariah Balanced – Moderate Index – the Index takes a long position in the S&P Pan Arab Composite Shariah Total Return Index with 60 per cent weight, and a long position in the Dow Jones Sukuk Total Return Index with a 40 per cent weight

S&P Pan Arab Shariah Balanced – Growth Index – the Index takes a long position in the S&P Pan Arab Composite Shari’ah Total Return Index with a 75 per cent weight, and a long position in the Dow Jones Total Return Sukuk Index with a 25 per cent weight.

“The S&P Pan Arab Shariah Balanced Indices represent the first multi-asset Shari’ah-compliant indices introduced by S&P DJI,” says Michael Orzano, Director, Global Equity Indices, S&P Dow Jones Indices. “The methodology for the index family is straight forward, in that it combines the core equity and Sukuk benchmarks: the S&P Pan Arab Composite Shari’ah and Dow Jones Sukuk Indices, into one index. Offering three indices with differing equity and Sukuk weights allows investors to utilize an index that best reflects their investment style.”

CPI Financial