Islamic Fund Management
45
SAC of SC
(Malaysia)
S&P Dow
Jones Shariah
Indices
MSCI Islamic Index
FTSE
Shariah
Global
Equity Index
Series
Series M-Series
capitalisation
= < 33%
 Non-
permissible
income other
than interest
income/Total
revenue
= < 5%
receivables +
Cash/Average
market
capitalisation
= < 49.00%
= < 33.333%
 Total interest
and non-
compliant
activities/
Total revenue
= < 5%
Dividend
Purification
Ratio
n.a  Dividend x
(Non-
permissible
revenue/Total
revenue)
 (Total earnings – (Income from
prohibited activities + Interest
income))/Total earnings
Purification of
dividends at
5%
Sources: SC (2013), S&P Dow Jones Shariah Indices Methodology (2017, Dec), MSCI Islamic Index Series
Methodology (2017, Sep), FTSE Shariah Global Equity Index Series January (2018)
Figure 3.2: Example of Islamic Equity Fund Screening Process in Malaysia
Sources: CIMB-Principal Islamic Asset Management, SC, RAM