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Islamic index shares surpass FTSE 100

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    Islamic index shares surpass FTSE 100

    I look forward to peoples comments

    By Lina Saigol, European M&A Correspondent
    Published: May 13 2005 03:00 | Last updated: May 13 2005 03:00

    Investments in UK-listed shariah-compliant shares, that meet Islamic law, have outperformed the FTSE 100 during the past year, as well as in the previous three and five years, in spite of the fact that shariah-compliant shares are limited in number.

    The Dow Jones UK Islamic Index produced total returns of 15.2 per cent during the past 12 months - more than twice those of the FTSE 100, according to Trowers & Hamlins, the law firm.

    Companies excluded by Islamic law from the Islamic Index include those that produce alcohol and pork-related products, providers of financial services and entertainment services such as gambling. Although not strictly forbidden, tobacco manufacturers and defence and weapons companies are also excluded.

    As a result, the UK Islamic Index has a relatively high exposure to mining and energy shares, which have performed relatively well over the past few years.

    The index also invested in companies such as Vodafone, the telecommunications group; Boots, the high street chemist; and Hays, the recruitment company.

    The popularity of funds based on Islamic share indices has been growing rapidly to meet the demands of the UK's 2m Muslims.

    The Financial Services Authority, the City regulator, estimates that the Islamic banking and finance market has grown by 10-15 per cent a year since 1993 and is worth between $200bn (107bn) and $500bn worldwide. Mainstream financial services companies such as HSBC have recently added Islamic equity funds to their product portfolios.
    Financial Times
    How can a man die better than facing fearful odds for the ashes of his fathers and the Temple of his Gods?

    Re: Islamic index shares surpass FTSE 100

    ANd my fund posted 27% returns y/y for the last 3. SO what is your point?
    Now repeat after me...."Jeter is the prophet and Rivera is the savior"