LONDON, Feb. 22, 2011 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced it will expand its Dow Jones Islamic Market Indexes series by launching the Dow Jones Islamic Market Global Finance & Takaful Index, which measures the performance of financial services stocks that pass rules-based screens for Shari'ah compliance. (Insurance stocks that pass such screens are known as Takaful.)
The index, designed to provide broader coverage of the Shari'ah-compliant financial services sector, will serve as a benchmark and an underlying instrument for investment products such as mutual funds and exchange-traded funds (ETFs).
"The Dow Jones Islamic Market Indexes is a unique series that combines faith-based principles and benchmarking," said Michael A. Petronella, president, Dow Jones Indexes. "Our index family was the first to market and has clearly set the standards of Islamic indexing around the world. And, once again, with the launch of the Dow Jones Islamic Market Global Finance & Takaful Index, we are providing the market with the first benchmark of its kind for these combined sectors."
Eligible companies are banks, insurance and financial services companies. Included in the index are those stocks that pass financial ratio screens that are less than 33% in total debt, divided by trailing 24-month average market capitalization; cash plus interest-bearing securities, divided by trailing 24-month average market capitalization; and accounts receivables, divided by trailing 24-month average market capitalization.
The US dollar-denominated Dow Jones Islamic Market Global Finance & Takaful Index is weighted based on float-adjusted market capitalization, with the weight of individual stocks restricted to 15%. The index composition is reviewed quarterly in March, June, September and December; it is also regularly reviewed to account for corporate actions such as mergers, de-listings or bankruptcies.
Dow Jones Indexes was the pioneer in Islamic indexes, launching the first Shari'ah-compliant indexes in 1999. With thousands of indexes, the series is the most comprehensive family of Islamic market measures with regional, country, and industry indexes, all of which are subsets of the Dow Jones Islamic Market Index. An independent Shari'ah Supervisory Board regularly counsels Dow Jones Indexes on the current and potential eligibility of index companies.
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About Dow Jones Indexes
Dow Jones Indexes () is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. () and 10 percent by Dow Jones & Company, Inc. (), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) ().
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"Dow Jones®", "Dow Jones Indexes", "Dow Jones Islamic Market Global Finance & TakafulIndex" and all other index names listed above are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Group Index Services LLC ("CME Indexes"). Investment products based on the Dow Jones Islamic Market Global Finance & TakafulIndex are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the Dow Jones Islamic Market Global Finance & TakafulIndex does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
CONTACT: Dow Jones Indexes' press offices: New York: +1-212-597-5720 London: +44-20-7796-7247