Daiwa Asset Management To Launch Singapore’s First Shariah-Compliant ETF

Daiwa Asset Management (Singapore) Ltd. (Daiwa AM) and Singapore Exchange Limited (SGX) recently announced that Daiwa AM will launch Singapore’s first Shariah-compliant Exchange Traded Fund (ETF) on SGX. The Daiwa FTSE Shariah Japan 100 (DaiwaETF) will offer Islamic investors instant access to the top 100 Shariah-compliant companies in Japan by market capitalisation.

Shariah is the divine Islamic law that governs the practical aspects of a Muslim’s daily life. The DaiwaETF seeks to track the performance of the FTSE Shariah Japan 100 Index, which is designed to represent the return of the largest and most liquid listed companies in Japan that comply with Islamic legal principles.

Said Mr Michihito Higuchi, President & Chief Executive Officer of Daiwa Asset Management Co. Ltd, the parent company of Daiwa AM, “The DaiwaETF is the first Shariah-compliant ETF in Singapore and also our first ETF in Singapore. This ETF serves as an excellent proxy to the growth prospects of some of the best listed companies in Japan. Islamic investors can be assured that this ETF is in full compliance with the Shariah investment principles at all times as Yasaar Limited will be undertaking the Shariah screening at the fund level.”