.jpg)
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.”
“We believe that the DaiwaETF will be well-received as it provides Islamic investors with a time-efficient, cost-effective and low risk investment avenue, based on the use of an indexing investment approach for a basket of reputable Japan companies.”
Mr Chew Sutat, SGX Executive Vice President and Head of Development said, “As Singapore’s first Shariah-compliant ETF, the DaiwaETF offers investors easy and affordable access to the largest and most liquid Japanese listed companies that comply with Islamic legal principles. This product launch is timely as demand for Shariah-compliant funds in Asia has been rising strongly on the back of increasing interest from Islamic investors from the Middle East. It brings the total number of SGX-listed ETFs to 19 and expands on our current suite of comprehensive Asian products offering investors convenient access to Asian markets.”
“The launch of the DaiwaETF is a positive direction in so many ways, being the first Islamic ETF to be launched by Daiwa and also the first one to be listed on SGX. We are very enthusiastic about our continued involvement with SGX and its pioneering offerings to cater to the requirements of the Shariah-compliant market. The cost-effective, broad-based access to the market through the means of the ETF for investors, giving exposure to the Shariah compliant Japanese stocks, is a major step forward,” said Mr Majid Dawood, CEO of Yasaar Limited.
While the DaiwaETF was created to cater to the expanding needs of Islamic investors for greater investment alternatives, Daiwa AM expects it will also appeal to non-Islamic investors internationally. Besides offering exposure to top-tier companies in Japan, the ETF’s excellent sector diversification is an attractive proposition for professional and retail investors seeking to participate in Japan’s stock market.
Daiwa Asset Management Co. Ltd. of Japan has been appointed as the Investment Adviser for the DaiwaETF and will leverage on its proven track record in managing ETFs to provide assistance and advice to Daiwa AM with respect to the management of the investments and operational processes of the DaiwaETF.
Daiwa AM has also appointed DBS Trustee Limited as the Trustee, Custodian and Registrar for the DaiwaETF.
Details of the Daiwa FTSE Shariah Japan 100
| Listing Date | 27 May 2008 |
| Trading Name | Daiwa FTSE Shariah Japan 100 |
| Board Lot | 100 Units |
| Trading Currency | USD |
| SGX Trading Code | F1F |
| Bloomberg Fund Ticker | DSFJ SP EQUITY |
| Benchmark | FTSE Shariah Japan 100 Index |
| Bloomberg Index Ticker | SJPN INDEX |
FTSE Shariah Japan 100 Index Top 10 Holdings
Rank | Constituent | Index Weight (%) |
1 | Toyota Motor | 10.59% |
2 | Canon | 5.14% |
3 | Nintendo | 4.50% |
4 | Matsushita Electric Ind | 4.44% |
5 | Takeda Pharmaceutical | 2.72% |
6 | Mitsui & Co | 2.43% |
7 | Komatsu | 2.36% |
8 | Mitsubishi Electric | 2.31% |
9 | Nippon Steel | 2.21% |
10 | NTT Docomo | 2.08% |
 | | 38.78% |
Source : FTSE Group; data as at 30 April 2008; Index is reviewed on quarterly basis and subject to changes
Performance of the FTSE Shariah Japan 100 index
Notes:
Daiwa Asset Management (Singapore) Ltd.
Daiwa Asset Management (Singapore) Ltd. is a wholly-owned subsidiary of Daiwa Asset Management Co. Ltd. Since its establishment in Singapore in 1994, Daiwa Asset Management (Singapore) Ltd has been involved in fund management activities, including managing funds and providing investment advisory services. As of 31 December 2007, it is managing approximately JPY46.0 billion (approximately USD412 million) of funds and providing various investment advisory services to funds domiciled in Japan which are established and managed by the Daiwa Asset Management Co. Ltd.
Daiwa Asset Management Co. Ltd.
Daiwa Asset Management Co. Ltd. is a wholly owned subsidiary of Daiwa Securities Group Inc. (the “Daiwa Group”). As at end December 2007, Daiwa Asset Management Co. Ltd. is the second largest asset management company in Japan with a total asset under management (“AUM”) of approximately JPY11,340 billion (approximately USD101.5 billion) (including publicly listed and privately managed funds). Daiwa Asset Management Co. Ltd. launched its first ETF in Japan in July 2001 and is managing five ETFs with total ETF AUM of approximately JPY 856.7 billion (approximately USD 7.7 billion) as at 31 December 2007. Currently, Daiwa Asset Management Co. Ltd. has five overseas offices in New York, London, Hong Kong, Singapore and Shanghai.
Singapore Exchange Limited
Singapore Exchange Ltd (SGX) was inaugurated on 1 December 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). SGX is Asia-Pacific's first demutualised and integrated securities and derivatives exchange and is listed on its own bourse. The exchange's stock is a component of benchmark indices such as the MSCI Singapore's Free Index and the Straits Times Index (STI).
SGX aims to offer a highly trusted, comprehensive and efficient securities and derivatives marketplace for raising capital, risk transfer, trading, clearing and settlement. SGX facilitates the trading and clearing of commodity futures and over-the-counter (OTC) derivatives such as forward freight agreements and oil swaps. Through strategic alliances and partnerships with other exchanges around the world, SGX is firmly positioned as an Asian Gateway.
For more information, please visit SGX website: www.sgx.com
Yasaar Limited
Yasaar Limited is a global Shariah (Islamic Law) consultancy offering financial institutional clients Shariah compliance services including: Reviews of financial product structures and advice on amendments to achieve compliance where possible, the provision of support to integrate the amendments proposed to attain Shariah compliant financial product/transaction and the provision of a Shariah Supervisory Board/Panel.
Yasaar issues Fatwa/Fatawa (Shariah ruling) Certification of a financial product/transaction's Shariah compliance, Shariah audit/s and certification of compliance. Yasaar is also responsible for initiating Shariah compliant concepts for investment products and developing innovative Shariah solutions, such as equity stock screening.
Yasaar's Shariah Principals are experts in Fiqh al Maumalat (Shariah law relating to Financial transactions) and have been established on the Shariah Supervisory Boards of a number of well known major financial institutions and have invaluable experience in advising on Shariah related issues in the international Islamic Banking and finance sector. Board members can be viewed at Yasaar's website: www.yasaar.org
DBS Trustee Limited
DBS Trustee Limited, the Trustee of DaiwaETF, is a wholly owned subsidiary of DBS Group Holdings Ltd. DBS is one of the largest financial services groups in Asia with operations in 16 markets. Headquartered in Singapore, DBS is the largest bank in the country as measured by assets, and a leading bank in Hong Kong. DBS' "AA-" and "Aa1" credit ratings are among the highest in the Asia-Pacific region.
As a bank that specialises in Asia, DBS leverages its deep understanding of the region, local culture and insights to serve and build lasting relationships with its clients. DBS provides the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. The bank is committed to expand its pan-Asia franchise by leveraging its growing presence in mainland China, Hong Kong and Taiwan to intermediate the increasing trade and investment flows between these markets. Likewise, DBS is focused on extending its end-to-end services to facilitate capital within fast-growing countries in Indonesia and India.
