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FTSE SET Shariah Index

FTSE SET Index Series is the result of collaboration between the Stock Exchange of Thailand and FTSE Group – one of the leading index expert in the world. This new series of investible and transparent benchmarks is specially designed to measure the performance of Thai capital market and can be used as a basis for attractive index-linked products that appeal to both local and international investors. FTSE SET Index Series comprises indices segmented as below.

 

 by Market Capitalization 
 by Shariah Compliance
 

 FTSE SET Shariah Index

The Stock Exchange of Thailand (SET) and FTSE Group have joined with Yasaar Limited, the leading global Shariah consultancy, to create FTSE SET Shariah Index since 23 April 2009.

Using the FTSE SET All-Share Index as the base universe, companies are screened against Shariah principles. The index is created for both domestic and international investors looking to invest according to Islamic principles.

This index can be used for a wide range of Islamic products including funds, ETFs and other index-linked products. 

Currently there are 2 mutual funds using FTSE SET Shariah Index as their benchmark; MFC Islamic Fund  (MIF) and MFC Islamic Long Term Equity Fund (MIF-LTF).

 

Key summary of FTSE SET Shariah Index (FSTSH)

Screening Methodology

 Based on the FTSE SET All-Share Index , companies are screened against Shariah principles as follow:

Business Activity Screening
Initially, companies involved in any of the following activities will be filtered out as non Shariah-compliant:

  1. Conventional Finance (non-Islamic Banking, Finance and Insurance, etc.)
  2. Alcohol
  3. Pork related product and non-halal food production, packaging and processing or any other activity related to pork and non-halal food
  4. Entertainment (Casinos, Gambling, Cinema, Music, Pornography and Hotels)
  5. Tobacco
  6. Weapons, arms and defence manufacturing

Financial Ratios Screening
The remaining companies are then further screened on a financial basis. The following financial ratios must be met for companies to be considered Shariah-compliant:

  1. Debt is less than 33% of total assets
  2. Cash & Interest bearing items are less than 33% of total assets
  3. Accounts receivable & cash are less than 50% of total assets
  4. Total interest and non compliant activities income should not exceed 5% of total revenue

Base Date

29 February 2008

Base Value

1000 with 2 decimal points
Frequency of Calculation 15 seconds

Index Currency

Thai Baht

Index Review Period

Semi-annually in June and December

 

Disclaimer: 

“The FTSE SET Index Series (“Index Series”) is calculated by FTSE International Limited (“FTSE”) in conjunction with the Stock Exchange of Thailand (“SET”) (collectively the “Licensor Parties”). All rights in the Index Series vest in the Licensor Parties. “FTSE” is a trade mark of the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE under licence. “SET” is a trade mark of SET. Neither the Licensor Parties nor their respective licensors accept any liability (including in negligence) for any loss arising out of use of the Index Series by any person

 

SET Group Websites
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www.set.or.th/contactcenter
+662 009 9999

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