Financial data provider Bloomberg has launched a non-ringgit denominated index to serve as a global benchmark for the performance of sukuk bonds and foreign currency issues.
“The Islamic financial marketplace is growing rapidly and there is high demand for more transparency, pricing, risk and return information,” said Gerard Francis, a Bloomberg Professional service executive. “We believe that this latest index will become the instrument of choice to help investors and fund managers maximise their investments in Shariah finance. It is also another sign of our 20 years of experience and commitment to the region.”
The Bloomberg Malaysian Foreign Currency Sukuk Index (BMSSUTR), developed in conjunction with Bank Negara Malaysia, consists of foreign currency sukuk issues listed on Bursa Malaysia or on the Labuan International Financial Exchange. The index gives fund managers the ability to conduct performance attribution, helping to manage their foreign currency exposure. It includes investment-grade Malaysian foreign currency sukuk priced in US dollars.
“The launch of the benchmark index for the Malaysian foreign currency sukuk market is timely given the growth of foreign currency sukuk issuances in the country, and this marks another key milestone that will contribute towards internationalisation of Islamic finance,” commented Muhammad bin Ibrahim, deputy governor of Bank Negara Malaysia.
Bloomberg recently created another index with the Association of Islamic Banks in Malaysia, the Bloomberg-AIBIM-Bursa Malaysia Sovereign Shariah Index, which provides a benchmark of performance for investors seeking exposure to Shariah-compliant Malaysian ringgit-denominated government securities.