Description
Book SynopsisThis original book examines how investment theory and regulatory constraints are linked to the professional processes of portfolio investments, and how the principles of Islam as defined by sharia fit into these processes. It also explores the measures required to create and grow a global Islamic asset management industry.
Established on a foundation of Modern Portfolio Theory, the book extends the theory to include asset management based on sharia. Chapters also consider how ethical investing is quickly becoming the driving force of the $100 trillion asset management industry. Taking a practical approach, John A. Sandwick, M. Kabir Hassan and Pablo Collazzo compare conventional and sharia portfolio performance and risk through measurement tools commonly used in asset management, including Sharpe ratio, standard deviation, Value at Risk, annualized mean return, and correlation. They map conventional portfolio construction and optimization, then reproduce the same processes with real-world, sharia-compliant portfolios.
This book will be critical reading for scholars and students of Islamic economics and finance, Islamic studies, and financial regulation. Considering Islamic asset management as a unique function of Islamic finance, this book will also be a useful resource for practitioners and finance professionals.
Trade Review’It is a timely guide to further contribute to this heavily debated claim that Islamic investments perform better in adverse economic situations. This is an excellent book as a guide on performance of Islamic finance investments versus conventional portfolios and fills the gaps on performance of Islamic asset management in the real markets. It is an excellent reference for scholars, practitioners and researchers in Islamic finance markets.’- Shamsher Mohamad, International Centre for Education in Islamic Finance, Malaysia
Table of ContentsContents: Foreword by Zeti Aziz Preface Introduction to A Guide to Islamic Asset Management 1. Literature review, research gap, industry and theoretical summaries 2. Research design and finding data 3. Results, relevance and limitations 4. Empirical analysis, research design and methodology 5. Discussion of findings 6. Implications for theory and practice 7. Limitations, and future research Annex: survey questions for major asset management banks References Index
