FTSE Group (“FTSE”), the global index provider, and the Stock Exchange of Thailand (“SET”) expand the FTSE SET Index Series with the addition of the FTSE SET Shariah Index. The index aims to open up the Thai capital market to a new investor class, allowing both domestic and international investors to invest according to Islamic principles. The new index is suitable for benchmarking and can be used for a wide range of Islamic products including ETFs, funds and other index-linked products.
Using the FTSE SET All-Share Index as the base universe, the index is screened by Yasaar Limited (Yasaar), a global leading Shariah consultancy. Unlike other methodologies, the FTSE SET Shariah Index uses asset-based debt screening, the same that is used for the FTSE Shariah Global Equity Index Series. This is a more conservative approach to Shariah compliance. The resulting methodology is less speculative and more in keeping with Shariah principles ensuring companies do not pass the criteria due to market cap fluctuation.
SET President Mrs. Patareeya Benjapolchai added “The launch of this index is a positive step forward into a growing Shariah-related market. This new index will serve both domestic and international investors looking to invest in a transparent and Shariah-compliant manner, as well as help issuers create structured investment products tailored to the global Islamic market.”
Paul Hoff, Managing Director, Asia Pacific of FTSE Group said “FTSE is pleased to be working with SET to continue to expand the FTSE SET Index Series with a new Shariah index that opens up the Thai capital market to Shariah compliant investors.”
To educate the market on the FTSE SET Shariah Index as an underlying index for the creation of investment products, SET is cooperating with FTSE and Yasaar to hold a seminar for the Association of Investment Management Companies, asset management companies, Islamic Bank of Thailand, potential issuers, Thai Shariah scholars and media on 25 May, 2009, at SET building, Bangkok.
Full details of the FTSE SET Shariah Index Series including methodology, vendor codes, and factsheets can found at www.ftse.com/thailand.
FOR MORE INFORMATION PLEASE CONTACT:
The Stock Exchange of Thailand
Ladawan Kantawong – Head, Corporate Communications Department, Tel: +662-2292036 or
Kanokwan Khemmalai– Deputy Head, Corporate Communications Department, Tel: + 662-2292048 Fax: 662-3591005-6
FTSE Group
Meredith Blakemore or Emily Mok, Tel: +852 2230 5800 Email:
[email protected]
If you are not a member of the press, please contact your local Client Services team.
Notes to Editors
About The Stock Exchange of Thailand
The Stock Exchange of Thailand (SET) was established in 1975 under 1974 Securities Exchange Act of Thailand and officially began securities trading on April 30, 1975. The Stock Exchange of Thailand stands at the center of Thailand’s capital market, and is a thriving and dynamic exchange offering a full range of products, services and trading infrastructure for investors, listed companies and other participants.
About FTSE Group
FTSE Group (“FTSE”) is a world-leader in the creation and management of indexes. With offices in Boston, Beijing, London, Frankfurt, Hong Kong, Madrid, New York, Paris, San Francisco, Sydney, Shanghai and Tokyo, FTSE works with investors in 77 countries globally. It calculates and manages a comprehensive range of equity, fixed income, real estate and investment strategy indices, on both a standard and custom basis. The company has collaborative arrangements with a number of stock exchanges, trade bodies and asset class specialists around the world.
FTSE indexes are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds.