Filippo Addarii

3,184 views

Published on

Filippo Addarii's presentation at the TBLI Conference London 2010

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
3,184
On SlideShare
0
From Embeds
0
Number of Embeds
178
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Filippo Addarii

  1. 1. Similarities and Divergences between Shariah Compliant and SRI Equity Universes MIA / Afkar Consulting Ltd TBLI CONFERENCE EUROPE 11-12 November 2010 Grange St Paul’s Hotel, London
  2. 2. Overview <ul><li>Investment and Ethics </li></ul><ul><li>SRI and Ethical Funds </li></ul><ul><ul><ul><li>History </li></ul></ul></ul><ul><ul><ul><li>Methodology – SRI & Ethical Funds </li></ul></ul></ul><ul><ul><ul><li>Issues for SRI & Ethical Funds </li></ul></ul></ul><ul><li>Shariah Funds </li></ul><ul><ul><ul><li>History </li></ul></ul></ul><ul><ul><ul><li>Methodology – Shariah Funds </li></ul></ul></ul><ul><ul><ul><li>Changing market Dynamics </li></ul></ul></ul><ul><ul><ul><li>Issues for Shariah Scholars </li></ul></ul></ul><ul><li>The Way Forward </li></ul>
  3. 3. Investment and Ethics <ul><li>Fundamentals & Rationale </li></ul><ul><ul><ul><li>Shariah, Ethical, SRI Screens / Funds </li></ul></ul></ul><ul><li>SRI / Ethical </li></ul><ul><ul><ul><li>Utilisation of Funds </li></ul></ul></ul><ul><li>Shariah </li></ul><ul><ul><ul><li>Utilisation of Funds and Leverage </li></ul></ul></ul><ul><ul><ul><li>Source of Funds (?) </li></ul></ul></ul><ul><li>Methodology </li></ul><ul><ul><ul><li>Screening </li></ul></ul></ul><ul><ul><ul><li>Engagement </li></ul></ul></ul>
  4. 4. SRI / Ethical Funds <ul><li>History </li></ul><ul><ul><ul><li>Church Inspirations </li></ul></ul></ul><ul><ul><ul><li>Church Commissioners </li></ul></ul></ul><ul><ul><ul><li>Stewardship and Quaker Movements </li></ul></ul></ul><ul><li>Awareness </li></ul><ul><ul><ul><li>Increased Institutional Investments – Pension Funds </li></ul></ul></ul><ul><ul><ul><li>Ethical Awareness </li></ul></ul></ul><ul><ul><ul><li>Environment and Sustainability Issues </li></ul></ul></ul><ul><ul><ul><li>Climate Change </li></ul></ul></ul><ul><li>SRI / Ethical </li></ul><ul><ul><ul><li>Emphasis on Utilisation of Funds </li></ul></ul></ul>
  5. 5. Methodology SRI / Ethical Funds <ul><li>Screening </li></ul><ul><ul><ul><li>SRI </li></ul></ul></ul><ul><ul><ul><li>Ethical </li></ul></ul></ul><ul><li>Engagement </li></ul><ul><li>Issues </li></ul><ul><ul><ul><li>Tolerance Parameters </li></ul></ul></ul><ul><ul><ul><li>Universal / Regional Values(?) </li></ul></ul></ul>
  6. 6. Issues for SRI / Ethical Funds <ul><li>Scope and Methodology </li></ul><ul><ul><ul><li>Impact of Credit Crisis </li></ul></ul></ul><ul><li>Incorporating Financial Criteria </li></ul><ul><li>Globalisation </li></ul><ul><ul><ul><li>Universal Values (?) </li></ul></ul></ul><ul><ul><ul><li>Impact on Criteria </li></ul></ul></ul><ul><li>Convergence of SRI and Shariah Criteria(?) </li></ul>
  7. 7. Shariah Funds - History <ul><li>Desire to Invest in Halaal Activities </li></ul><ul><ul><ul><li>Promotion of Wholesome Activities </li></ul></ul></ul><ul><ul><ul><li>Discouragement of Unlawful Activities </li></ul></ul></ul><ul><li>Shari’ah Interpretations </li></ul><ul><ul><ul><li>Screening Criteria </li></ul></ul></ul><ul><ul><ul><li>Mostly Negative Screening </li></ul></ul></ul><ul><li>Growth in Funds and Benchmarks </li></ul><ul><li>Tolerance Levels </li></ul><ul><li>Issues </li></ul>
  8. 8. Methodology Islamic Funds <ul><li>Business Compliance </li></ul><ul><li>Financial Ratios </li></ul><ul><li>Dividend Cleansing </li></ul><ul><li>Other Issues </li></ul>
  9. 9. Changing Market Dynamics Islamic Funds <ul><li>Provider Driven Market </li></ul><ul><li>Negative Screening Sufficient (?) </li></ul><ul><li>Growth in Institutional Funds </li></ul><ul><li>Demand Driven Investments </li></ul><ul><li>Positive Screening </li></ul><ul><li>Demand for Ethical and SRI Screens </li></ul><ul><li>Engagement </li></ul>
  10. 10. Issues for Shariah Scholars <ul><li>Scope and Methodology </li></ul><ul><ul><ul><li>Text based prohibitions – Alcohol, Gambling </li></ul></ul></ul><ul><ul><ul><li>Derived prohibitions - Tobacco and Defence </li></ul></ul></ul><ul><li>Incorporating Sustainability Criteria </li></ul><ul><ul><ul><li>Shariah Rationale </li></ul></ul></ul><ul><li>Engagement & Contact with Corporations </li></ul><ul><li>Dynamic Screens </li></ul><ul><li>Transparency </li></ul><ul><li>On-Going Monitoring and Audit </li></ul>
  11. 11. The Way Forward <ul><li>Convergence of SRI and Shariah Criteria(?) </li></ul><ul><li>Leverage / Sustainability / Ethics </li></ul><ul><li>Faith and Ethical Communities </li></ul><ul><li>Universal Criteria (?) </li></ul><ul><li>SRI / Shariah Composite Screens </li></ul>
  12. 12. Contact: M Iqbal Asaria Afkar Consulting Ltd 0208 861 2012 [email_address]

×