PowerWordChill (@PowerWordChill) en getquin

7Lun·

Yesterday and today I spent some time looking into the methodology behind shariah screening for Islamic financial products.

I noticed a small detail.

As a rule, a company is screened for how much debt / interest-bearing securities it has (up to 33% is OK) and how much of its turnover is generated by:

Alcohol, Adult Entertainment, Cinema, Conventional Financial Services, Defense / Weapons, Gambling / Casino, Hotels, Music, Online Dating, Pork related products and Tobacco. (up to 5% is OK)

So there is no country screening... but you will not find a company from a specific country. Since the MSCI Islamic Index only recognizes 22 and not 23 developed countries...

Why all other MSCI indices that have "World" in their name have 23 countries, but not this one index, I can't say. Do you have any ideas? 🤔

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35 Comentarios

Goldener S.@Sindscheddin

7Lun

I just looked it up. In the normal MSCI World, the proportion of Israeli positions is 0.11% - and mainly banks. This means that all stocks actually fall through the screening.

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Soprano@Soprano

7Lun

Muslims do not recognize the existence of the country they are looking for, which is why they cannot invest there. They would ask you: How can we invest in something that doesn't exist?

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Memo0606@Memo0606

7Lun

MSCI world islamic 😍 will be bought on reset

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KingC@RaphGM

7Lun

Perhaps because potential investors for such products would not invest their money in Israeli companies.

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Bugs@herrdoc

7Lun

Anyone can invest and "boycott" as they wish. 🤷‍♂️

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devnerd_daddy@devnerd_daddy

7Lun

MSCI is a company that makes money from financial products. So if they can make more money by offering a product tailored to extremists, then of course they will.

There is also an MSCI World Catholic Values if you prefer to be a Catholic extremist.

Why extremist? I'm a relatively strict Christian myself, but if you sort that heavily when investing, where do you stop? Then I would also have to withdraw my money from the bank so that they don't lend it to a nasty Satanist.

But hey, as long as MSCI is making money by double standards, why not? Maybe it makes the investors happy? Who am I to judge them?

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