MANAMA: An assets management firm yesterday announced it will launch a series of Sharia-compliant index funds linked to Standard & Poor's (S&P) Sharia indices.

SociŽtŽŽ GŽnŽrale Asset Management Alternative Investments (SGAM AI) said the S&P Sharia Index series is designed to offer investors a group of indices that comply with Islamic law.

The funds will track the S&P US Sharia Index, the S&P 350 Europe Sharia Index, S&P 500 Japan Sharia Index, S&P BRIC Sharia Index and S&P GCC Sharia Index.

The S&P Index Committee has signed an agreement with Ratings Intelligence (RI) Partners to ensure that the day-to-day management of each of the Sharia indices adheres to a series of independent and objective guidelines.

SGAM AI said collaboration with RI has enabled it to obtain a specific agreement for its range of Sharia products and said RI's Sharia Committee is made up of figures who are authorities on the matter.

To market the index funds, SGAM AI plans to use various local distribution networks, particularly in the Middle East. The funds will be sold in a Luxembourg-based SICAV UCITS III format.

In addition, SGAM AI said it will make use of teams of experts to offer clients different risk profiles and added the planned products will provide exposure to the markets covered by these indices, along with capital protection which conforms to Sharia principles.

The launch of these Sharia Index products is a new step in the diversification of SGAM AI's product offer per market. In line with SGAM's position as a global player, they are another addition to the wide range of products and investment solutions that enable SGAM Group to satisfy the specific requirements of its clients.

SGAM AI currently manages 7.8 billion euros ($10.6bn) in index funds and 19.2bn euros in structured products.