Powered by healthcare and IT, Islamic indices outperform

Islamic_bankingSharia-compliant indices have mostly outperformed conventional benchmarks this year thanks to their heavy exposure to information technology and healthcare stocks. The S&P Global BMI Shariah index gained more than 17% between the start of the year and September 27. The performance exceeded the return on S&P Global BMI index, which is not sharia-compliant, by nearly three percentage points. “Information technology and healthcare, which tend to be overweight in Islamic Indices, have been sector leaders this year,” said Michael Orzano, head of equity indices, S&P Dow Jones Indices. “Financials, which are under-represented in Islamic indices, have experienced some weakness.” The Middle East region has lagged behind the rest of the globe. The S&P Pan Arab Composite Shariah index has fallen so far this year, due in part to a steep decline in the S&P Qatar index. Because relatively few IT or healthcare companies are listed in the Middle East, sharia-compliant indices in the region did not achieve the kind of outperformance relative to conventional indices that was seen elsewhere, Orzano said. ©2017 funds global mena

Executive Interviews

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

We’ll launch our first equity fund next year

Dec 08, 2016

Not many banks plant olive trees, but the Bank of Palestine has a social mission. It also has ambitious expansion plans, says chairman Hashim Shawa. He talks to George Mitton.

Roundtables

SOUTH AFRICAN ROUNDTABLE: Spirit of Ubuntu

Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.

ROUNDTABLE: Growing pains

Mar 08, 2017

Our panel in Qatar spoke about frustration with regulators, a shortage of listed companies and plans for a new financial city in Doha. Chaired by George Mitton.