Exchange-traded fund (ETF) specialist asset manager Satrix has launched the Satrix MSCI World Islamic Feeder ETF, South Africa’s first Shariah-compliant ETF with global exposure.
Listed on the JSE, the fund tracks the MSCI World Islamic Index, which measures the performance of large- and mid-cap Shariah-compliant companies across 23 developed-market countries.
The MSCI World Islamic Index represents an investment option that complies with Islamic finance principles by tracking the overall returns of a portfolio made up of compliant companies. It ensures that any dividends paid to shareholders are "purified" by donating portions of dividends generated from prohibited activities to charity rather than distributing to shareholders.
Yusuf Wadee, the head of exchange traded products at Satrix, said: “We are proud to provide investors with a unique opportunity to access a globally diversified portfolio while adhering to Islamic investment principles. This ETF represents a significant milestone for Satrix and the broader South African investment community.”
The portfolio excludes companies engaged in prohibited activities such as adult entertainment, alcohol, arms, conventional financial services dealing in interest-bearing assets, gambling, pork-related products and tobacco.
Adèle Hattingh, Business Development and Exchange Traded Products Manager at the JSE, has welcomed the listing of the Satrix MSCI World Islamic Feeder ETF on the Main Board of the JSE, highlighting that it will enable South African investors to further diversify their portfolios and provide more inclusive investing opportunities. - Martin Hesse