S&P launches three new global Shariah indices

The three indices launched today are S&P Global Infrastructure Shariah, S&P Global Healthcare Shariah, and S&P/IFCI Large-MidCap Shariah.

'Muslim investors around the world have growing appetite for investable sector and thematic solutions that have been screened for Shariah compliance,' says Alka Banerjee, vice president of Index Services at Standard & Poor's.

'The launch of these three global indices is another example of Standard & Poor's commitment to meeting the increasingly sophisticated needs of Muslim investors.'

The S&P Global Infrastructure Shariah Index is designed to provide liquid and tradable exposure to 20 companies from around the world that represent the listed infrastructure universe while adopting explicit selection criteria defined by Islamic law. The universe is drawn from the S&P Global Infrastructure Index, and has three distinct infrastructure clusters: energy, transportation, and utilities.

The S&P Global Healthcare Shariah is comprised of companies in the S&P 500, S&P Europe 350, and S&P Japan 500 Shariah-compliant indices sit in the GICS Health Care sector. As of September 30, 2007, there are 72 companies in the index with an adjusted market capitalization of $2.1 trillion.

The S&P/IFCI Large-MidCap Shariah index, Standard & Poor's emerging market Shariah index, currently includes stocks from the following emerging market countries: Argentina, Brazil, Chile, China, the Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand and Turkey. The Shariah index is a subset of the S&P/IFCI Composite Index, and includes 90% of the market capitalization of the parent S&P/IFCI Composite Index.

Also launched today are 5 Arab Shariah country indices: Egypt, Jordan, Lebanon, Morocco, and Tunisia. These underlying country indices are part of the S&P/IFCG emerging market series. The stocks listed in each underlying country are individually screened for Shariah compliance before inclusion in the Pan Arab Shariah Index.

All S&P Shariah Indices are screened by Ratings Intelligence Partners, a Kuwait-based consulting company specialising in the Islamic investment market. Ratings Intelligence Partners researchers interface directly with a dedicated Shariah Supervisory Board. The Board is comprised of a group of Islamic scholars whose role is to interpret business issues as well as financial practices and recommend actions in relation to Shariah index management.

S&P Shariah Indices exclude businesses that offer products and services which are considered unacceptable or non-compliant according to Shariah-law, such as advertising and media (newspapers are allowed, sub-industries are analyzed individually), alcohol, financials, gambling, pork, pornography, tobacco, and the trading of gold and silver as cash on a deferred basis. All S&P Shariah Index constituents are monitored on a daily basis to ensure that the indices maintain strict Shariah compliance.