www.businessislamica.com - German bank WestLB rolled out a new “Islam-compliant” investment product named the Islamic Strategy Index Certificate. T
he value of the certificate is based on the value of the WestLB Islamic Deutschland Index, consisting of shares of ten German firms “whose business activities are consistent with the ethical rules of Islam.” The prospectus explains that “for the selection [of stocks] it is in principle not permitted that the business activity of the chosen firms involve interest-bearing financial services or derivatives, insurance, alcohol, tobacco, pork, armaments, gambling, gold and silver hedging transactions, or the entertainment industry.” (source)
The firms making up the Islamic Deutschland Index are some of the biggest names in German industry, including Adidas, Siemens, SAP, BASF, Bayer, and the energy companies E.ON and RWE and Deutsche Post. The investment also involves a charitable component: whereas 95 percent of yearly dividends are to be reinvested, five percent are to be donated by WestLB to a charitable organization. According to the Islamische Zeitung, citing WestLB’s Haak, the beneficiary is to be chosen by the Central Council of Muslims in Germany.
Source: German bank WestLB rolled out a new “Islam-compliant” investment product named the Islamic Strategy Index Certificate. The value of the certificate is based on the value of the WestLB Islamic Deutschland Index, consisting of shares of ten German firms “whose business activities are consistent with the ethical rules of Islam.” The prospectus explains that “for the selection [of stocks] it is in principle not permitted that the business activity of the chosen firms involve interest-bearing financial services or derivatives, insurance, alcohol, tobacco, pork, armaments, gambling, gold and silver hedging transactions, or the entertainment industry.” The firms making up the Islamic Deutschland Index are some of the biggest names in German industry, including Adidas, Siemens, SAP, BASF, Bayer, and the energy companies E.ON and RWE and Deutsche Post. The investment also involves a charitable component: whereas 95 percent of yearly dividends are to be reinvested, five percent are to be donated by WestLB to a charitable organization. According to the Islamische Zeitung, citing WestLB’s Haak, the beneficiary is to be chosen by the Central Council of Muslims in Germany. - April 6, 2012
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