The Islamic system of financial management is faith-based, underpinned by the Qur'anic proscription on riba (interest) and gharar (intentional incomplete disclosure).  As such, a core component of the Islamic system of financial management is Shariah compliance.  Typically Shariah compliance is determined by a Shariah Board, a committee of Islamic financial and legal experts established to ensure that the financial institution’s practices and products offered are in compliance with Islamic Law.  The Shariah screening for the FTSE/JSE Shariah indices is done by Yasaar Ltd.

Index Details

The Shariah All Share Index is designed to reflect the Shariah compliant companies, as screened by Yasaar, from the All Share Index (J203).
Name  Shariah All Share
Index Code           J143
Alpha Code SALS
Index Category Shariah
Universe All Share Index (J203)
Fixed No. of Companies No
Liquidity Screening             Yes
Free Float Screening Minimum of 5% 
Other Screening Shariah Compliance
Weighting Methodology Free Float Market Cap Weighted
Ranking Methodology Ranked by net market cap
Capping Methodology N/A
Index Review Quarterly in March, June, September and December
Buffer Size            N/A
Dissemination 60 seconds
Live Date               2007/11/12

The Shariah Top 40 Index is designed to reflect the Shariah compliant companies, as screened by Yasaar, from the Top 40 Index (J200).  Therefore, this index comprises Top 40 Index companies that are Shariah compliant. 

Characteristics Description
Name

Shariah Top 40

Index Code J140
Alpha Code STOP
Index Category Shariah
Universe Top 40 Index (J200)
Fixed No. of Companies No
Liquidity Screening Yes
Free Float Screening Minimum of 5%
Other Screening Shariah Compliance
Weighting Methodology Free Float Market Cap Weighted
Ranking Methodology Ranked by Net Market Cap
Capping Methodology N/A
Index Review Quarterly in March,June,September and December
Buffer Size N/A 
Dissemination 60 Seconds
Live Date 2008/07/21

 

The Capped Shariah Top 40 Index is designed to reflect the Shariah compliant companies, as screened by Yasaar, from the Top 40 Index (J200).  Therefore, this index comprises Top 40 Index companies which are Shariah compliant.  All constituents with a weight larger than 10% in the index will be capped at a level of 10% at each quarterly review.

Characteristics Description
Name Capped Shariah Top 40
Index Code J141
Alpha Code SCTP
Index Category Shariah
Universe Top 40 Index (J200)
Fixed no. of Companies No 
Liquidity Screening Yes
Free Float Screening Minimum of 5%
Other Screening Shariah Compliance
Weighting Methodology Free Float Market Cap Weighted
Ranking Methodology Ranked by net market cap
Capping Methodology 10% Quarterly
Index Review Quarterly in March,June,September and December
Buffer Size N/A
Dissemination 15 Seconds
Live Date 2011/07/04

 

An alternate valuation for the Shariah Top 40 Index (J140), whereby the Total Return Index (TRI) is calculated using net dividend rates (“net in the hands of the SA investor”).  Dividend withholding tax is deducted from the declared dividend with the resulting net dividend used in the XD adjustment.

Characteristics Description
Name Shariah Top 40 Net TRI
Index Code JNS4
Alpha Code STON
Index Category Shariah
Universe Shariah Top 40 Index (J140)
Fixed no. of Companies No 
Liquidity Screening Yes
Free Float Screening Minimum of 5%
Other Screening Shariah Compliance
Weighting Methodology Free Float Market Cap Weighted
Ranking Methodology Ranked by net market cap
Capping Methodology 10% Quarterly
Index Review Quarterly in March,June,September and December
Buffer Size N/A
Dissemination End of day
Live Date 2012/04/16