Islamic Finance
  • The new realities of risk sharing: Network effects and big data machine learning

    Source: Adam Ng, Ginanjar Dewandaru, Abbas Mirakhor
    Date Submitted: 20 Jun 2019
    Views: 843
    Downloads: 31
    Risk-sharing contracts are often believed to be more costly and to demand more information than debt-based contracts. In reality, they are an incentive-compatible contract that elicits truth-telling, trust, cooperation, hard work. and efficiency.
  • Risk sharing and social impact partnerships

    Source: Adam Ng
    Date Submitted: 19 Jun 2019
    Views: 68
    Downloads: 5
    The Islamic concept of risk sharing may curb speculative risk shifting and result in greater financial stability with the intent of creating a more stable and accessible financial markets.
  • Doing well while doing good: Islamic and sustainability equity investing

    Source: Wajahat Azmi, Adam Ng, Ginanjar Dewandaru, Ruslan Nagayev
    Date Submitted: 15 Jul 2019
    Views: 796
    Downloads: 0
    Investors do not have to pay a price for Islamic or sustainable investing. Combining Islamic and sustainability investing strategies offers more rewards, particularly during the economic boom, bullish equity markets and subprime crisis periods.

    This article qualifies for 1 CE credit under the guidelines of the CFA Institute Continuing Education Program. 
    We encourage CFA Institute members to log in to the CE tracking tool to self-document these credits.
  • Banking for sustainability: The policy, regulatory and financial case for action

    Source: Adam Ng
    Date Submitted: 12 Jun 2019
    Views: 105
    Downloads: 8
    What are the opportunities for Islamic banks to invest in sustainable companies? How can regulators address environmental risks? Does the financial ecosystem need a new fourth sector to offer sustainable advisory and services?
  • Changing geography of aviation finance funding

    Source: David Yu
    Date Submitted: 22 Oct 2018
    Views: 378
    Downloads: 25
    New players in the aircraft leasing business, such as commercial banks and insurance companies are adding to the geographic diversity of funding sources. This paper analyses new trends and the roles of the newcomers in the sector.
  • An Overview of Islamic Banking and Finance in Asia

    Source: Akbar Komijani, Farhad Taghizadeh-Hesary
    Date Submitted: 05 Nov 2018
    Views: 1997
    Downloads: 0
    This article qualifies for 0.5 CE under the guidelines of the CFA Institute Continuing Education Program. 
    We encourage CFA Institute members to login to the CE tracking tool to self-document these credits. 

    The Islamic finance industry has grown substantially in Asia over the last 2 decades. The Muslim populations in different Asian countries, especially in Southeast Asia, are increasing. Rapid Muslim population growth and improving living standards may enhance the popularity of Islamic finance as a keen alternative to conventional financing mechanisms. In addition, investors from the Middle East and Asia are increasingly seeking to invest in products that are in line with their religious beliefs. The governments and financial authorities in several Asian countries have played active roles in promoting the development of Islamic financial markets in line with the efforts to boost investments and achieve sustainable funding to enhance economic growth by tapping the huge liquidity from oil- and commodity-producing countries. The ethical character and financial stability of Islamic financial products may increase their attraction. Islamic financial products have an ethical focus (notably excluding investment in alcohol and gambling) with a risk profile that appeals to wider ethically conscious investors. Given that in Islamic banking returns on investments are based on underlying economic activities and/or assets that structure the contractual relationship between transacting parties, it is possible to use the asset-based nature and risk-sharing aspects of Islamic finance for greater integration with the real economy and to improve the overall economic balance between the real and the finance sector.
  • S&P Dow Jones Indices Quarterly Islamic Market Review

    Source: Michael Orzano
    Date Submitted: 22 Sep 2018
    Views: 392
    Downloads: 0
    Most S&P and Dow Jones Islamic indices have outperformed conventional benchmarks through the first half of 2018 driven by underweight to financials.
  • Most S&P and Dow Jones Islamic Indices Outperformed Conventional Benchmarks in Q1 Driven by Strength in the Technology Sector

    Source: Michael Orzano
    Date Submitted: 22 Sep 2018
    Views: 1334
    Downloads: 0
    Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts in Q1 2018, as the information technology sector led the market by a wide margin, and financials matched the returns of the broad market.
  • Religion based investing and illusion of Islamic Alpha and Beta

    Source: Naqvi, Bushra, Rizvi, Syed Kumail Abbas, Mirza, Nawazish, Reddy, Krishna,
    Date Submitted: 22 Sep 2018
    Views: 465
    Downloads: 0

    Risk hedging in Islamic funds is more stable trait than Alpha generation.

    Style Analysis yielded no superiority of Islamic funds in Alpha generation or Beta reduction.

    Islamic funds in Pakistan generate high returns with low risk offering better risk return trade-off.

    Malaysian Islamic funds exhibit low risk but at the cost of low returns.

    Fama French five-factor model confirms the robustness of results.

  • AAM-CAMRI-CFA Institute Prize - Does the Application of Smart Beta Strategies Enhance Portfolio Performance? The Case of Islamic Equity Investments      

    Source: Muhammad Wajid Raza, Dawood Ashraf
    Date Submitted: 22 Sep 2018
    Views: 613
    Downloads: 0
    Paper Submission for AAM-CAMRI-CFA Institute Prize in Asset Management
  • Islamic Finance: Ethics, Concepts, Practice

    Source: Usman Hayat, CFA, Adeel Malik, PhD
    Date Submitted: 22 Sep 2018
    Views: 768
    Downloads: 34
    Islamic economic thought and finance are rooted in Islamic ethics. Their ideals and means are not, however, exclusive to Islam. The principles of Islamic finance emphasize market-based risk-sharing modes of financing that promote assets and enterprise, deploy finance in service of the real economy, and facilitate redistribution of wealth and opportunity. Modern Islamic financial practices, however, privilege legal form over economic substance, which creates an expectations gap between Islamic finance’s theory and practice. In the wake of the global financial crisis of 2007–2008, the ideas underlying Islamic finance appeal to those more concerned with the broader impact of finance on society.