DB x-trackers list first regional Shariah compliant ETFS in London
DB x-trackers, Deutsche Bank’s ETF platform, has listed the first ever regional Shariah compliant ETFs on the London Stock Exchange (LSE). The three ETFs are:
• db x-trackers S&P 500 Shariah ETF
• db x-trackers S&P Europe 350 Shariah ETF
• db x-trackers S&P Japan 500 Shariah ETF
To complement the three new regional Shariah ETFs, db x-trackers is also listing a global Shariah compliant ETF on Dow Jones Islamic Market Titans 100 ETF.
db x-trackers’ new range of Shariah ETFs provide institutional and retail investors access to investments based on Islamic principles, which exclude any activities challenging Shariah law. The principle exclusions from the investment range are pork-related substances, alcohol, gambling, financials, advertising & media, pornography, tobacco and the trading of gold and silver as cash on a deferred basis.
The new Shariah ETFs will allow investors access to a wide range of sectors and markets including utilities, industrials, energy, technology and healthcare via ETFs characterised as being highly liquid and transparent. Over three and five years the three Shariah indices have outperformed their standard counterparts (see table below).
Returns S&P 500 Shariah S&P 500 S&P Europe 350 Shariah S&P Europe 350 S&P Japan 500 Shariah S&P Japan 500
3 Year 9.10% 4.41% 18.08% 14.07% 8.58% 7.04%
5 Year 10.44% 7.58% 19.80% 17.36% 10.43% 10.34%
Source: Standard & Poors – 30 June 2008
Manooj Mistry, head of db x-trackers UK, commenting on the launches, said:
“The levels of financial sophistication among Muslim investors are growing and with them, the demand for investment products that are compliant with religious norms. The Shariah compliant ETF market is largely untapped and by offering these products to investors we have continued to show-case our innovative and forward thinking capabilities, whilst capitalising on fast growing markets. As well as being an excellent option for those investors wanting investment tools in line with their beliefs and principles, these new ETFs may also provide a new way of accessing certain markets for the conventional investor looking for an alternative investment approach.”
Alex Matturri, Executive Managing Director of Standard & Poor's Portfolio Services, comments:
"Shariah-compliant investing has been growing at an exponential pace over the past several years, as investors continue to increase their exposure to Islamic-compliant equities.”
“Starting with the launch of the S&P 500 Shariah, S&P Europe 350 Shariah and S&P Japan 500 Shariah in 2006, Standard & Poor’s has been at the forefront of offering indices that meet the investing needs of Islamic investors throughout the world. Today, Standard & Poor's Shariah Indices screen approximately $44 trillion of the world’s market capitalisation."
Deutsche Bank is a leader in the development of structured Islamic financing products and in 2005 it completed the first-ever principal-protected commodities transaction compliant with Islamic law. Last year the bank launched a series of Islamic funds through its global mutual funds arm, DWS Investments. In October 2007 it closed an Islamic profit rate collar structure with Dubai Islamic Bank for more than $500 million in notional value, the largest such structure done in the Islamic markets. Deutsche Bank was a founding member of the Dubai International Financial Exchange and the first to list products when the DIFX opened in September 2005.
Deutsche Bank’s Islamic platform has been recognised as three years running by the Euromoney Islamic Finance Awards, and achievements include: the best Islamic Structured Products House, the Best Islamic Advisory House, Most Innovative Islamic Finance House, most improved in Islamic Finance and the Best Islamic Assurance and Advisory service. Deutsche Bank has also been recognisd by Islamic Finance News (2007): emeafinance Awards (2008): London Sukuk Summit Awards (2008) for excellence in relation to Islamic finance.
Further information can be found at www.dbxtrackers.com
If you have questions please call Polhill Communications on: 020 7655 0540
