FTSE Russell Factsheet
FTSE Shariah Hong Kong and China Indices
Data as at: 31 May 2017
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The FTSE Shariah Global Equity Index Series has been designed to be used as the basis of
FEATURES
Shariah compliant investment products that meet the requirements of Islamic investors globally.
Coverage
Using the Large and Mid Cap stocks from the FTSE Global Equity Index Series as a base
universe, constituents are then screened against a clear set of Shariah principles. Shariah
screening is undertaken by Yasaar Limited, to create a Shariah compliant index series. The FTSE
Shariah Hong Kong and China indices contain Hong Kong and China stocks that meet these
criteria. Their approach is described below.
The FTSE Shariah Global Equity Index Series
covers all regions across both developed and
emerging markets, to create a
comprehensive Shariah indexing solution.
Impartial
By partnering with Yasaar Ltd, an impartial
Business Activity Screening
Initially, companies involved in any of the following activities will be filtered out as non Shariahcompliant:
consultancy and leading authority on
Shariah, FTSE remains neutral and fully up
to date with latest practices. See
www.yasaar.org for more information.
• Conventional finance (non-Islamic banking, finance and insurance, etc.);
• Alcohol;
• Pork related products and non-halal food production, packaging and processing or any other
Fatwa-certified
activity related to pork and non-halal food;
The FTSE Shariah Global Equity Index Series
• Entertainment (casinos, gambling and pornography);
has been fully certified as Shariah-compliant
• Tobacco; weapons, arms and defence manufacturing.
through the issue of a Fatwa (Islamic legal
opinion) by Yasaar's principals.
Asset-based debt screening
Financial Ratios Screening
Unlike other competitor methodologies, a
The remaining companies are then further screened on a financial basis. The following financial
more conservative approach to Shariah
ratios must be met for companies to be considered Shariah-compliant:
compliance is ensured by rating debt ratio
limits that are measured as a percentage of
• Debt is less than 33.333% of total assets;
total assets, rather than more volatile
• Cash and interest bearing items are less than 33.333% of total assets;
measures that use 12 month trailing market
• Accounts receivable and cash are less than 50% of total assets;
• Total interest and non compliant activities income should not exceed 5% of total revenue.
capitalisation. This ensures companies do
not pass the screening criteria due to market
price fluctuation, allowing the methodology
5-Year Performance - Total Return
to be less speculative and more in keeping
(USD)
with Shariah principles.
160
150
School-neutral
140
Yasaar Limited scholars represent all of the
130
major Shariah schools of thought, creating a
120
best practices approach that has credibility
110
across the Islamic world.
100
90
May-2012
Industry Classification Benchmark
May-2013
May-2014
May-2015
May-2016
Data as at month end
May-2017
Index constituents are categorised in
accordance with the Industry Classification
FTSE Shariah Hong Kong
FTSE Shariah China
Benchmark (ICB), the global standard for
industry sector analysis.
Source: FTSE Russell as at 31 May 2017. Past performance is no guarantee of future results.
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
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Data as at: 31 May 2017
FTSE Shariah Hong Kong and China Indices
INFORMATION
Performance and Volatility - Total Return
Index (USD)
Return %
FTSE Shariah Hong Kong
FTSE Shariah China
Return pa %*
Volatility %**
Index Universe
3M
6M
YTD
12M
3YR
5YR
3YR
5YR
1YR
3YR
5YR
9.0
12.6
17.1
21.9
13.3
46.2
4.3
7.9
10.4
13.5
12.0
12.1
19.0
22.6
30.7
19.9
32.1
6.2
5.7
14.7
23.1
19.8
* Compound annual returns measured over 3 and 5 years respectively
Kong and China indices from the FTSE AllWorld Series (Large and Mid Cap)
Index Launch
** Volatility – 1YR based on 12 months daily data. 3YR based on weekly data (Wednesday to Wednesday). 5YR based on monthly data
29 October 2007
Year-on-Year Performance - Total Return
Index % (USD)
Shariah-compliant stocks in the FTSE Hong
Base Date
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
FTSE Shariah Hong Kong
64.5
-49.8
63.0
12.5
-22.9
31.0
-0.6
1.7
-5.6
4.0
22 September 2003
FTSE Shariah China
84.6
-58.1
74.4
13.8
-16.0
18.6
-3.0
-0.1
-12.2
5.2
Base Value
FTSE Shariah Hong Kong - 988.57
Return/Risk Ratio and Drawdown - Total Return
Index (USD)
Return/Risk Ratio
FTSE Shariah China - 1000
Drawdown (%)
Investability Screen
1YR
3YR
5YR
10YR
1YR
3YR
5YR
10YR
FTSE Shariah Hong Kong
2.0
0.3
0.7
0.2
-10.4
-25.1
-25.1
-65.5
Actual free float applied and liquidity
FTSE Shariah China
2.0
0.3
0.3
0.1
-12.1
-45.5
-45.5
-80.0
screened
Index Calculation
Return/Risk Ratio – based on compound annual returns and volatility in Performance and Volatility table
End-of-day
Drawdown - based on daily data
Top 10 Constituents - FTSE Shariah Hong Kong
Constituent
ICB Sector
CK Hutchison Holdings
End-of-Day-Distribution
Net MCap (USDm)
Wgt %
General Industrials
36,736
22.37
CLP Holdings
Electricity
16,850
10.26
Hong Kong & China Gas
Gas Water & Multiutilities
16,050
9.78
Hongkong Land Holdings
Real Estate Investment & Services
8,874
5.40
MTR Corp
Travel & Leisure
7,998
4.87
Currency
AAC Technologies Holdings
Electronic & Electrical Equipment
7,420
4.52
EUR, GBP, USD, Yen and Local
Henderson Land Dev
Real Estate Investment & Services
7,272
4.43
Techtronic Industries
Household Goods & Home Construction
5,947
3.62
China Mengniu Dairy
Food Producers
5,465
3.33
Samsonite International
Household Goods & Home Construction
5,168
3.15
117,779
71.73
Totals
Via FTP and email
Review Dates
Quarterly in March, June, September,
December
Top 10 Constituents - FTSE Shariah China
Constituent
ICB Sector
Tencent Holdings (P Chip)
Software & Computer Services
China Mobile (Red Chip)
Mobile Telecommunications
Net MCap (USDm)
Wgt %
185,310
33.71
59,059
10.74
China Petroleum & Chemical (H)
Oil & Gas Producers
20,922
3.81
CNOOC (Red Chip)
Oil & Gas Producers
18,367
3.34
Petrochina (H)
Oil & Gas Producers
14,052
2.56
China Overseas Land & Inv (Red Chip)
Real Estate Investment & Services
11,515
2.09
China Shenhua Energy (H)
Mining
8,278
1.51
China Unicom Hong Kong Ltd (Red Chip)
Mobile Telecommunications
8,246
1.50
Country Garden Holdings (P Chip)
Real Estate Investment & Services
8,132
1.48
China Telecom (H)
Fixed Line Telecommunications
8,039
1.46
341,919
62.21
Totals
Source: FTSE Russell as at 31 May 2017. Past performance is no guarantee of future results.
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
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Data as at: 31 May 2017
FTSE Shariah Hong Kong and China Indices
ICB Supersector Breakdown
FTSE Shariah Hong Kong
ICB Code ICB Supersector
FTSE Shariah China
No. of
Cons
Net MCap (USDm)
Wgt %
No. of
Cons
Net MCap (USDm)
Wgt %
11.57
0500
Oil & Gas
2
1,797
1.09
8
63,607
1300
Chemicals
-
-
-
7
7,111
1.29
1700
Basic Resources
-
-
-
6
14,735
2.68
2300
Construction & Materials
-
-
-
9
23,282
4.24
2700
Industrial Goods & Services
6
52,510
31.98
28
40,002
7.28
3300
Automobiles & Parts
2
4,091
2.49
12
33,858
6.16
3500
Food & Beverage
4
10,564
6.43
1
410
0.07
3700
Personal & Household Goods
6
19,308
11.76
6
10,915
1.99
4500
Health Care
-
-
-
9
21,437
3.90
5300
Retail
2
2,455
1.50
2
1,850
0.34
5700
Travel & Leisure
1
7,998
4.87
2
1,711
0.31
6500
Telecommunications
1
381
0.23
3
75,344
13.71
7500
Utilities
3
33,523
20.42
3
6,552
1.19
8600
Real Estate
5
22,440
13.67
18
54,496
9.91
9500
Technology
Totals
3
9,127
5.56
6
194,351
35.36
35
164,193
100.00
120
549,662
100.00
Index Characteristics
Attributes
FTSE Shariah Hong Kong
Number of constituents
FTSE Shariah China
35
120
164,193
549,662
2.48
1.68
Average
4,691
4,581
Largest
36,736
185,310
Net MCap (USDm)
Dividend Yield %
Constituent Sizes (Net MCap USDm)
Smallest
381
114
2,321
1,457
Weight of Largest Constituent (%)
22.37
33.71
Top 10 Holdings (% Index MCap)
71.73
62.21
Median
31 May 2017
Data definitions available from
[email protected]
To learn more, visit www.ftserussell.com;
email [email protected]; or
call your regional Client Services Team office:
EMEA
+44 (0) 20 7866 1810
North America
+1 877 503 6437
Asia-Pacific
Hong Kong +852 2164 3333
Tokyo +81 3 3581 2764
Sydney +61 (0) 2 8823 3521
Source: FTSE Russell as at 31 May 2017. Past performance is no guarantee of future results.
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
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Data as at: 31 May 2017
FTSE Shariah Hong Kong and China Indices
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whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Global Shariah Index Series or the fitness or suitability of
the FTSE Global Shariah Index Series for any particular purpose to which they might be put.
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Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent
the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the
index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are
based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the
index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the
underlying economic data used in the calculation of the index.
Source: FTSE Russell as at 31 May 2017. Past performance is no guarantee of future results.
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
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