Absa Capital and Vunani Capital recently joined forces to launch South Africa’s second Shari’ah compliant Exchange Traded Fund (ETF). NewFunds Shari’ah Top 40 tracks the Shari’ah Top 40 jointly established by London’s FTSE International Limited (FTSE) and Johannesburg’s JSE Limited (JSE).
This FTSE/JSE Shari’ah Top 40 is designed to reflect the Shari’ah compliant companies identified from the top 40 companies listed on the main board of the JSE as measured by market capitalisation. A dual step Yasaar Ltd (Yasaar) approved screening process is undertaken by the FTSE and the JSE and verified by Yasaar to ensure that all companies included in the index are Shari'ah complaint. Yasaar Research Inc scholars represent all of the major Shari'ah schools of thought, creating a best practise approach that has credibility across all regions of the Islamic world.
The Shari'ah Top 40 ETF has been certified Shari'ah compliant by Absa Bank's Shari'ah Board. For more information on the screening methodology and Yasaar, read the brochures contained in the 'Download' section of this page.
The Shari’ah Top 40 is structured as a Financial Services Board (FSB)-approved Collective Investment Scheme Portfolio, issued under the NewFunds CIS umbrella. Listed on the JSE Limited, the Shari’ah ETF provides investors with a daily disclosed, low-cost, and easy-to-access investment product that conforms to Shari’ah principles.
This product is long overdue in a South African market that urgently needs more local Islamic investment products to service the estimated 350 000 to 400 000 Muslim households in South Africa.
Benefits of investing in Shari’ah Top 40 securities
- Islamic and other investors are able to invest in a financial product that conforms strictly to Shari’ah standards and principles
- Islamic and other investors can invest in Shari’ah compliant companies identified from the FTSE/JSE Africa Top 40 Index
- Investing and withdrawing funds is straightforward
- Investment values can be determined at any time