Dow Jones Indexes, a leading global index provider, and SAM Group, a pioneer in sustainability investing, today launched the worlds first index that merges Islamic investing principles and sustainability criteria by combining the methodology of the well-established Dow Jones Islamic Market Indexes and Dow Jones Sustainability Indexes.
The Dow Jones Islamic Market Sustainability Index represents companies that are compatible with Islamic investment guidelines, while at the same time are determined to be corporate sustainability leaders. To be included in the index, companies must be components of both the Dow Jones Islamic Market Index and the Dow Jones Sustainability World Index. Currently, 105 companies are included in the index and are thus suitable for investors who want to apply stringent Islamic screens as well as bestin-
class sustainability criteria.
This new index is another innovative product that Dow Jones Indexes created to respond to market demand, said Mike Petronella, president, Dow Jones Indexes. The Dow Jones Islamic Market Sustainability Index was developed in cooperation with SAM Group to meet the growing demand for compliant equity indexes based on internationally acknowledged Islamic finance standards and sustainability criteria.
SAM has repeatedly received inquiries from asset managers who want to combine Islamic investment principles with a thorough selection of leading companies in terms of economic, environmental and social criteria, said Alexander Barkawi, managing director, SAM Indexes. We are excited to meet this demand with this new offering and to provide a solid platform for sustainability-driven investments within the growing market for Islamic finance products.
Dow Jones Indexes launched its Islamic index family in 1999. Today, the Dow Jones Islamic Market Index is used by asset managers in 16 countries for a variety of financial products that screen out activities that are incompatible with Islamic investment guidelines. Excluded from the index are stocks of companies in these lines of business: alcohol, tobacco, pork-related products, financial services, defense/weapons, and entertainment. Also excluded are companies that fail any of three financial ratios: total debt divided by trailing 12-month average market capitalization is greater than or equal to 33% or more; cash plus interest-bearing securities divided by trailing 12-month average market capitalization is greater than or equal to 33%; and accounts receivables divided by total assets is greater than or equal to 33% or more.
The DJSI family was launched in 1999 to provide the worlds first global sustainability index. It is provided through the cooperation of Dow Jones Indexes, STOXX Limited and SAM Group and comprises the leading companies in terms of long-term economic, environmental and social criteria. Today, the DJSI family is licensed to investment firms in 14 countries as underlying and benchmark for a variety of financial products including mutual funds, separate accounts, structured products and an exchangetraded
fund listed on Euronext. In total, well over $US4 billion are presently managed in DJSI-based investment vehicles.