Daiwa Launches Singapore’s first sharia-compliant ETF

Daiwa Asset Management (Singapore) has launched Singapore’s debut sharia-compliant exchange-traded fund (ETF) on the Singapore Exchange (SGX) (see Structured Products magazine, August 2007). The Daiwa FTSE Sharia Japan 100 (Daiwa ETF) offers exposure to the top 100 sharia-compliant companies in Japan by market capitalisation.

“The Daiwa ETF is the first sharia-compliant ETF in Singapore and also our first ETF in Singapore,” says Michihito Higuchi, president and chief executive officer of Daiwa Asset Management. “Islamic investors can be assured that this ETF is in full compliance with the sharia investment principles at all times as Yasaar Limited will be undertaking the sharia screening at the fund level.”

The ETF provides sector diversification as well as exposure to the top companies in Japan and is expected to appeal to both Islamic and non-Islamic investors on an international scale. The ETF bolsters the total number of SGX-listed ETFs to 19.

Yasaar is a global sharia consultancy offering financial institutional clients sharia compliance services.