The ITSS ETF’s investment strategy is to replicate the holdings and the performance of the ITS Shariah index as closely as possible. All the companies included in the ITSS ETF are Shariah-compliant; they are selected and monitored daily by an independent company, Sahih Invest.
Each share of the ITSS ETF represents an equal stake in the Shariah-compliant fund, which is registered as a separate legal entity within the Astana International Financial Centre (AIFC) in the Republic of Kazakhstan, in accordance with the principles of Islamic finance.
Companies included in Shariah indexes – for example, the S&P Shariah index, the FTSE Shariah index or the ITS Sharia index – are secular companies, investments in which are permitted in accordance with the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
All the companies included in the ITSS ETF’s investment portfolio comply with the AAOIFI’s international principles and are selected and monitored daily by an independent company, Sahih Invest, which is accredited by the AIFC. The Shariah compliance of the ITSS ETF’s basket of securities has been verified by the Shariah Supervisory Board of Sahih Invest, an external Shariah advisor and auditor certified by the AAOIFI
The ITSS ETF is Islamic, which is confirmed by a consent letter and a Shariah compliance certificate from Alhamd Shariah Advisory Services and by the fact that the ITSS ETF is registered as Islamic with the AIFC. The fund is managed by IPS Capital, which is licensed to operate as an Islamic window and has a special Shariah Supervisory Board headed by the respected Mufti Muhammad Ibrahim Essa (Pakistan)
|
Type |
Passive following The ITS Shariah index |
|
Fund's underlying assets |
Shares of large capitalization companies |
|
Benchmark index |
ITS Shariah INDEX |
|
Ticker |
ITSS |
|
Management company |
IPS Capital Ltd.(Kazakhstan) |
|
Number of components in the benchmark index |
Shares of 30 companies |
|
Asset structure |
Stocks of companies from key sectors of the global economy (technology, finance, healthcare, industrials, consumer goods, etc.) |
|
Management style |
Passive management (following the ITS World index) |
|
Allocation limits |
The share of each security in the fund corresponds to its weight in the index and is capped at 10% |
|
Management fee (Total Expense Ratio, TER) |
0,5% per year |
|
Dividends |
Dividends paid by shares in the fund's portfolio are capitalized (i.e., not paid out but reinvested to increase the value of the ETF). |
|
Currency |
US Dollar (USD) |
|
Exchanges where the fund's shares are traded |
ITS, AIX |
|
Exchange/MTF |
Listing Date |
Trading Currency |
Ticker |
CFI code, ISO 10962:2015 |
ISIN |
|
AIX |
10.01.2024 |
USD |
ITSS |
CMOXES |
KZX000003256 |
|
ITS |
14.01.2024 |
USD |
ITSS |
CMOXES |
KZX000003256 |
|
Trading venues |
ITS, AIX |
|
Stock ticker |
ITSS |
|
Trading hours |
10-00 – 03-45 Astana time |
|
Lot |
1 lot = 1 share |
|
Minimum price step (tick) |
0,0001 |
|
Price currency |
USD |
|
Delivery currency |
USD |
The value of an ETF can both rise and fall in line with the movement of the index. ETF shares are typically bought and sold on a stock exchange through a broker; they cannot be individually presented to the management company for sale or exchanged for the corresponding shares. For more on this subject, please see the Fund Constitution and offering materials.
The value of ITSS shares may fluctuate and could decrease considerably as a result of the operations of the respective issuers as well as changes in the overall market or economic environment.
As a passively managed fund, the ITSS ETF invests assets in accordance with the ITS Shariah index, replicating the index’s holdings, risk factors and other features as closely as possible. However, any passively managed index fund will deviate slightly from the underlying index, which is based on a mathematical model, due to temporary causes, the need to round the number of securities in the portfolio and other factors. These deviations constitute the so-called tracking error, which fund managers try to minimise but are unable to eliminate entirely.
Although ITSS shares are highly liquid securities traded on the global market, during periods of severe market downturns they may trade with significant spreads and discounts relative to the model values underlying the index. This can impact the tracking error, the net asset value (NAV) per share and the market value of the ETF’s shares.
ETF shares are traded like other stocks and share the same characteristics, such as investment risk and fluctuations in market value, which means they can trade at prices both above and below the net asset value per share. Brokerage commissions are not taken into account in the calculation of the total expense ratio, which can reduce the performance of the investment.
Before making an investment decision, please review the ITSS ETF’s investment objectives, holdings, risks, and the fees charged by the management company and your broker (exchange or MTF). Please read the offering materials and other fund documents on the management company’s website carefully.
Investments in the ITSS ETF may be affected by the overall economic environment, market fluctuations and objective risks associated with investments in securities markets. The prices of investment instruments may change considerably for a large number of reasons, including economic growth or recession, changes in interest and exchange rates, changes in the objective or perceived credit quality of issuers, overall market liquidity, geopolitical events, as well as other factors. Local, regional and global events such as wars, terrorist attacks, pandemics, etc. can have a significant impact on the ITSS ETF and related investments.