Resilience of the Australian Islamic and Shariah compliant funds after the global market turbulence
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The first 10 days of July 2015 witnessed a bloodbath on the global financial markets due to fears of a Grexit from the EU and a Chinese market meltdown. The Thomson Reuters Global Index lost 0.74% of its value in these fi rst ten days, with the Dow Jones Industrial Average losing 0.19% of its value by comparison to 9.90% lost on the Shanghai Composite Index. The Australian All Ordinaries Index lost about 1.96% of its value due to the impact of the Chinese market on the Australian resources sector. Islamic and Shariah compliant funds were certainly not immune from the global onslaught, with the Thomson Reuters IdealRatings Islamic Global Index losing 2.44% of its value. However, the Australian Islamic and Shari'ah compliant funds were more resilient than their global counterparts with the Thomson Reuters IdealRatings Islamic Australia Index losing only 2.04% by comparison to the global index.