You are previewing Investing In Islamic Funds: A Practitioner's Perspective.
O'Reilly logo
Investing In Islamic Funds: A Practitioner's Perspective

Book Description

A guide to Islamic investment opportunities from the CEO of the world's leading Islamic finance bank

Offering an insider's perspective on a rapidly growing sector of the financial industry, Investing in Islamic Funds details the basic principles of Islamic investing for Muslims and non-Muslims alike. It explains how Islamic equity and fixed-income products differ from traditional funds, and how they deliver excellent results while still conforming to Sharia principles. Using hard data from the last six years, the book also reveals how Islamic funds have offered predictable, reliable returns in volatile markets and turbulent financial times. For institutional investors as well as sophisticated individual investors, the book serves as an excellent introduction to the subject and surveys the full range of products available. Additionally, the book will arm financial services professionals with the knowledge they need to explain this new investment opportunity to clients.

  • One of the few books available that offers comprehensive data on the performance of Islamic funds in addition to the underlying theory that governs them

  • Written by the CEO of CIMB-Principal Islamic Asset Management, the world's leading Islamic finance bank

  • Features charts, case studies, comparative analysis, and a tabular data format

  • Debunks the misconceptions traditional investors may have about the profitability Islamic funds

For professional and institutional investors, as well as private investors looking for new opportunities, Investing in Islamic Funds offers a much-needed primer on this fast-growing market.

Table of Contents

  1. Cover
  2. Praise
  3. Series
  4. Title Page
  5. Copyright
  6. Dedication
  7. List of Tables and Figures
  8. Foreword
  9. Preface by Tan Sri Zarinah Anwar
  10. Preface by Mohammad Faiz Azmi
  11. Acknowledgments
  12. Introduction
    1. WITNESSING THE RISE
    2. THE PULL OF PETRODOLLARS
    3. THE LONG-TERM OPPORTUNITIES: FINANCIAL CENTERS
    4. FAIR DISTRIBUTION OF WEALTH: THE NEXT GENERATION
    5. MOVING FORWARD: CHANGE IN MIND-SET
    6. NOTES
  13. Chapter 1: The Growth of Shariah Investments
    1. INTRODUCTION
    2. THE GLOBAL ISLAMIC FUNDS INDUSTRY: WHERE IS IT NOW?
    3. GLOBAL PRODUCT INNOVATION OF ISLAMIC INVESTMENT PRODUCTS
    4. PROGNOSIS FOR ISLAMIC FINANCIAL MARKETS: WHERE ARE THEY GOING?
    5. CONCLUSION
    6. NOTES
  14. Helpful Hints
  15. Chapter 2: Fund Management within Shariah-Compliant Investment Guidelines
    1. INTRODUCTION
    2. THE APPLICATION OF ISLAMIC ETHICS TO ASSET MANAGEMENT
    3. BENEFITS OF SHARIAH VIS-Ă€-VIS CONVENTIONAL INVESTING
    4. CONCLUSION
    5. NOTES
  16. Helpful Hints
  17. Chapter 3: Uncovering the Driving Principles of Islamic Finance
    1. INTRODUCTION
    2. THE FIVE BASIC PRINCIPLES OF ISLAMIC FINANCE
    3. CONCLUSION
    4. NOTES
  18. Helpful Hints
  19. Chapter 4: Investing Responsibly
    1. INTRODUCTION
    2. SCREENING CRITERIA
    3. SCREENING PROCESS FOR ETHICAL FORM OF INVESTING
    4. SOCIALLY RESPONSIBLE INVESTMENT VERSUS SHARIAH-COMPLIANT INVESTMENT
    5. A SIMILAR APPROACH TO YOUR INVESTMENT?
    6. AVAILABILITY OF CHOICE FOR INVESTORS
    7. BROADER PORTFOLIO DIVERSIFICATION
    8. CONCLUSION
    9. NOTES
  20. Helpful Hints
  21. Appendix
    1. ETHICAL INVESTMENT SCREENING BASED ON NEGATIVE SCREENING
  22. Chapter 5: Broad Choices of Islamic Investment Funds
    1. INTRODUCTION
    2. EQUITY FUNDS
    3. SUKUK FUNDS
    4. EXCHANGE-TRADED FUNDS (ETFS)
    5. MONEY MARKET FUNDS
    6. ALTERNATIVE FUNDS
    7. REAL ESTATE INVESTMENT TRUST FUNDS (REITS)
    8. PRIVATE EQUITY FUNDS
    9. HEDGE FUNDS
    10. LEASE FUNDS
    11. CONCLUSION
    12. NOTES
  23. Helpful Hints
  24. Chapter 6: Mitigating the Myths
    1. INTRODUCTION
    2. ISLAMIC PRINCIPLES COME WITH BUILT-IN FINANCIAL ETHICS
    3. THE MYTHS OF SHARIAH INVESTING
    4. BENEFITS OF SHARIAH INVESTING
    5. CONCLUSION
    6. NOTES
  25. Helpful Hints
  26. Chapter 7: Comparative Analysis with Conventional Investing
    1. INTRODUCTION
    2. ISLAMIC INDICES OUTPERFORMED CONVENTIONAL INDICES
    3. QUALITATIVE COMPARISON OF ISLAMIC INDEX SCREENING PROCESSES
    4. PERFORMANCE ANALYSIS OF THREE DOW JONES SHARIAH INDICES AND THEIR COUNTERPARTS
    5. VALUE-ADDED OPTIMIZATION FOR SHARIAH PERFORMANCE
    6. CONCLUSION
    7. NOTES
  27. Helpful Hints
  28. Chapter 8: Using Performance Characteristics to Build Wealth
    1. INTRODUCTION
    2. THE IMPACT OF BLACK SWAN EVENTS
    3. WHY SHARIAH INVESTING IS RESILIENT
    4. CONCLUSION
    5. NOTES
  29. Helpful Hints
  30. Chapter 9: A Broader Investment Universe for Mainstream Investors
    1. INTRODUCTION
    2. EMERGENCE OF DIFFERENT SUKUK STRUCTURES
    3. EXAMINING SUKUK INVESTMENT RESULTS
    4. CASE STUDY: SUKUK INVESTING AS A DIVERSIFICATION STRATEGY
    5. CONCLUSION
    6. NOTES
  31. Helpful Hints
  32. Chapter 10: Shariah-Compliant UCITS Funds
    1. INTRODUCTION
    2. SOLUTION AT YOUR DOORSTEP
    3. PROVIDING EASE OF TRANSACTION TO INTERNATIONAL INVESTORS
    4. BRINGING SHARIAH INVESTMENT TO A GLOBAL AUDIENCE
    5. NOTES
  33. Helpful Hints
  34. Chapter 11: Legal, Regulatory, Risk, and Operational Framework
    1. INTRODUCTION
    2. THE ISLAMIC FINANCIAL INSTITUTIONS’ REGULATORY FRAMEWORK
    3. COUNTRY EXAMPLES
    4. CONCLUSION
    5. NOTES
  35. Helpful Hints
  36. Epilogue
  37. About the Author
  38. About the Contributors
  39. Glossary to the Quotations
    1. Introduction
    2. Chapter 1: The Growth of Shariah Investments
    3. Chapter 2: Fund Management within Shariah-Compliant Investment Guidelines
    4. Chapter 3: Uncovering the Driving Principles of Islamic Finance
    5. Chapter 4: Investing Responsibly
    6. Chapter 5: Broad Choices of Islamic Investment Funds
    7. Chapter 6: Mitigating the Myths
    8. Chapter 7: Comparative Analysis with Conventional Investing
    9. Chapter 8: Using Performance Characteristics to Build Wealth
    10. Chapter 9: The Sukuk Portfolio
    11. Chapter 10: Shariah-Compliant UCITS Funds
    12. Chapter 11: Legal, Regulatory, Risk, and Operational Framework
  40. Glossary of Islamic Finance
  41. Global Islamic Finance Education Centers
    1. PROFESSIONAL CERTIFICATIONS
    2. UNIVERSITIES/COLLEGES/INSTITUTES
  42. Global Islamic Finance Conferences/Summits/Seminars
  43. Islamic Investment and Finance Readings
    1. ISLAMIC FINANCE JOURNALS
    2. ISLAMIC FINANCE MAGAZINES AND SUPPLEMENTS
  44. Recommended Reading
  45. Index