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.
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Shariah All Share (J143)
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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 -
Shariah Top 40 (J140)
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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 -
Capped Shariah Top 40 (J141)
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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 -
Shariah 40 Net TRI (JNS4)
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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