Magni Islamic Stewardship Index

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1. Magni Islamic Stewardship Index B E C A U S E G O V E R N A N C E M A T T E R S TM Magni Islamic Stewardship Index combines Islamic guidance for businesses from Maqasid with a best-practice model for corporate governance to screen Shariah-compliant largecap US companies . Islamic guidance for good corporate governance provides a valuable, practical and business-relevant moral compass. When a business incorporates Maqasid values into its conduct, we believe there will be a better outcome. WHY IS CORPORATE GOVERNANCE IMPORTANT? 1. Good Governance = Honesty and regulations are in place does not Transparency mean that they are enforced. A key factor in determining good The more honest and transparent governance is behavior versus selfa company is with its shareholders, described intent. customers, suppliers, employees, competitors, and communities 3. Insightful Approach to ESG in which the company operates, Investing the greater the opportunity We evaluate both the governance for a positive impact on equity and the social aspects of ESG valuations. investing for the index. Currently, 2. Behavior More Accurately companies are assessed on what Reflects Intent Than Words they are willing to disclose, but not their behavior or actual impact. Measuring good governance is not easy. Just because rules and THE MAGNI DIFFERENCE–LOOKING BELOW THE SURFACE FOR THE BIG PICTURE Traditional investment analysis focuses on surface-level data reported by the company instead of actual behavior of employees and management. Magni’s Corporate Governance Assessment takes the research methods used on good country-level governance and applies them to a best-practices model for corporate governance. This provides a more accurate and complete analysis of governance that aligns with Islamic guidance. OVERVIEW Ticker . . . . . . . . . . . . . . . . . . MAGISLM Inception Date . . . . . . . . . . . 2/28/18 Index Calculation/ Publication . . . . . . . . . . . . . . . . INDXX Holdings . . . . . All stocks in S&P 500 that are considered Shariah compliant Rebalance . . . . . . . . . Semi annually (Feb/Aug) Weighting Scheme . . . . . Modified, Magni Corporate Governance Score LICENSING INFORMATION Magni Global Asset Management LLC licenses its indexes to firms involved in the issuance of Exchange Traded Products (ETPs). If you are interested in licensing an index from Magni, contact us at info@magniglobal.com Provided by Magni Global Asset Management LLC. This is not investment advice or a recommendation to buy or sell securities. Investors may not invest directly in an index.
2. B E C A U S E G O V E R N A N C E M A T T E R S TM WHY MAGNI ? 1. Quality and depth of research— Magni’s research database analyzes 316 factors based on the Sustainable Value Creation principles. We assess the company’s relationship with not only its shareholders and employees, but also its customers, suppliers, and competitors along with the communities in which the company operates. 2. Repeatable process—Our research results in a score for each company and that score determines the company’s weight in the index. INDEX BACK-TEST RESULTS TOTAL RETURN MAGISLM 225 208.4 S&P 500 Shariah TR 207.6 200 175 150 S&P 500 NR 201.7 125 100 3. Experienced Manager—Magni has used this approach in their country governance research to run Magni Model Portfolios since 2003 and to manage money for clients in Magni Global Portfolios since 2012. TOP 10 HOLDINGS As of 2/28/2018 in alphabetical order Archer-Daniels-Midland Co. Eli Lilly & Co. Fedex Corp. Garmin LTD HP Inc. Intel Corp. Kimberly-Clark Corp. Mastercard Inc. Southwest Airlines Co. Visa Inc. CONSTITUENT REQUIREMENTS 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 Magni’s index back-tested returns reflect results from 12/31/2012 to 12/31/2017 using large capitalization securities listed on the NYSE and NASDAQ. Results do not include transaction costs or imputed commissions. The Magni Islamic Stewardship Index (MAGISLM) typically contains the Shariah-compliant subset of the 500 companies considered to be large cap. To be eligible for inclusion in the index, companies must be in the S&P 500 Index and be considered Shariah compliant. Magni Global Asset Management LLC Email: info@magniglobal.com Website: www.magniglobal.com © 2018 Magni Global Asset Management FSIV_0318 75