Shari’ah Strategy

Rexiter’s Global Emerging Markets Shari’ah Strategy seeks to capture the exciting growth prospects of emerging markets equities, whilst abiding by Shari’ah investment guidelines.  The strategy is managed by Rexiter’s investment team selecting their best ideas from a list of Shari’ah compliant investments provided by Dow Jones and Rexiter’s proprietary research.  As at the end of December 2007, the strategy had outperformed its benchmark by almost 3% per annum since launch in 2003.

The investment process is primarily stock driven with an over-ride from top down country and sector risk controls. The team select their best stock ideas from a list of Shari’ah compliant investments, provided by Dow Jones and Rexiter’s proprietary research. The aim is to construct a diversified portfolio, sufficient to ensure diversification whilst also allowing gains from stock selection to be reflected in overall returns. 

• Exposure to countries, sectors and stocks are controlled by absolute limits and limits relative to DJIEM benchmark weights, designed to avoid excessive concentration of the portfolio in any single risk area.
• Rexiter meets with company management teams on a regular basis. This further allows up-to-date verification of companies compliance with Shari’ah guidelines.
• Stock decisions are the responsibility of the country fund managers. This approach gives each person "ownership" of his or her work.