News Column

IdealRatings releases Sukuk screening solution and Sukuk indicies

September 2, 2014

IdealRatings, Inc. has announced the launch of the first Sukuk Shari'ah Screening Solution. The research-based online screening service is designed to serve Islamic investors and treasuries aiming to balance their portfolios with low risk fixed income instruments yet conform to the mandates defined by their Shari'ah boards.

Despite its infancy, Sukuk has succeeded to attract a broad range of Islamic and non-Islamic investors worldwide; however one of the challenges facing Sukuk is their compliance risk due to the disparity in Shariah opinions and acceptance of Sukuk structures and terms. Investor's drift away from investing in Sukuk primary due to lack of transparency of the acceptability or not of the structure deployed by the issuer.

IdealRatings Sukuk Screening Solution has been designed principally to help overcome the compliance risk; the recently launched solution enables investors to screen Sukuk against different Shari'ah guidelines in the market such as AAOIFI, OIC, Malaysia Securities Commission (SC) as well as defining their own custom composite Shari'ah guidelines. The solution screens hundreds of Shari'ah standards pertaining to the different investment modes and varying Shari'ah views. Through the new solution, investors have the capacity to screen global Sukuk universe and construct a portfolio of Sukuk that conforms to both their Shari'ah mandate as well as their Investment financial standards.

IdealRatings has also designed and launched a series of Sukuk indexes, to empower the Sukuk service clients with benchmarks essential for Islamic fixed income portfolio management. With the launch of the Sukuk indexes, IdealRatings aims to provide an optimally comprehensive Sukuk Offering to Islamic treasuries and institutional investors worldwide. The Index Family constitutes Five US Dollar indices with different segmentations.

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Source: CPI Financial

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