Islamic or conventional mutual funds: who has the upper hand? Evidence from Malaysia

Contradictory results are documented in the literature regarding which type of mutual fund has superior performance; an Islamic or conventional mutual fund. Due to the relative short history of the Islamic mutual funds' industry, prior literature has inevitably relied on a small sample size with a short sample period. With the longest applicable sample period, this study represents one of the most recent attempts to address this conflicting evidence. We find there is no clear cut over performance by Islamic mutual funds against their conventional peers across the three financial crises in our sample period, with the exception of the most recent global financial crisis, where Islamic mutual funds generally outperformed their conventional counterparts. We further find that Islamic funds significantly outperformed conventional funds in the riskiest asset class, equity, one year before and during the global financial crisis. We further reveal that the modified value at risk for Islamic mutual funds was significantly lower than their conventional peers during the global financial crisis. This seems to indicate that Islamic mutual funds have better risk management compared to conventional peers.

Examining Islamic religiosity and civic engagement in Melbourne

With geopolitical concerns surrounding the rise of militant, transnational groups who draw on Islamic texts for legitimacy, the place of Islam in western societies has become a source of anxiety, fear and suspicion. The central concern is whether Muslims living in the West have the capacity to become fully active citizens. This article uses quantitative and qualitative methods to examine whether Islamic religiosity is a predictor for civic engagement and active citizenship among Muslims living in Melbourne, Australia. The findings show that organized religiosity can be a strong predictor of civic engagement, countering the discourses that demonize Islam as a source of radicalization and social disengagement. While the findings show that suspicion of divisive forces and lack of trust in public institutions might prevent some young Muslims from engaging in formal political participation, grassroots civic engagement enables Muslims to demonstrate care and feel like active citizens of the Australian community without compromising core religious values.

Sectarianism and the prevalence of ‘othering’ in Islamic thought

The current sectarian conflicts in the Middle East did not arise solely from renewed geopolitical rivalries between regional powers. They are also rooted in a solid, theological articulation proposed by classic Islamic political theology. The exclusivist approach, which is a decisive part of the political, social and religious reality of today’s Middle East, benefits from a formidable theological legacy. Coining the notion of ‘othering theology’, this paper not only explores the ideas of leading classical theologians who have articulated a puritanical understanding of faith, but also explicates the politico-historical context in which these theologians rationalised their quarrels. Given the pervasive presence of these theologies in the contemporary sectarian polemics, the study of classical othering theology is highly relevant and, indeed, crucial to any attempt to overcome sectarianism in the region.

When Catholics turn right: the effects of the Islamic terrorism threat on the fragmented Catholic Italian voters

Italy, as well as most European countries, has been hit by a wave of anxiety arising from groups such as ISIS and Al Qaeda, whose effects on political attitudes are still under-examined. This article investigates the effect of the perceived threat of Islamic terrorism as a potential driver for a ‘right turn’ in the Catholic Italian electorate with open-ended interviews and an Internet-based experiment in which voters were randomly assigned to a terrorism threat manipulation and to a control condition (N = 138). The results show that the Islamic terroristic threat significantly increased the support for centre-right leaders who promoted in-group identity and out-group hostility towards Muslims. Implications for the debate about the effects of perceived threat on political opinions and the relevance of the findings beyond the Italian case are discussed at the end of the article.

'This is not our country': Declining diversity in the Islamic Republic of Iran

The expulsion of Christians from Mosul by the Islamic State (IS) in the summer of 2014 marked the first time in nearly 2000 years that the Iraqi city lacked a Christian population.1 Along with the conflict in Syria and the other upheavals that have accompanied the phenomenon variously known as the Arab Spring, al-thawra or the Islamic Awakening, the emigration of Christians from their homes has accelerated in recent years. The Roman Catholic Pope Francis mentioned this during his visit to the region in May 2014, noting that these historic communities, among the oldest in the world, are decreasing to the point where their long-term existence is uncertain. This is because Christians in more stable parts of the Middle East are also leaving. This paper discusses one such example: the continuing emigration of Armenian Christians from Iran. For Iranian Armenians, the main incentive for emigration is the feeling of exclusion and alienation from the wider society. This has largely come about by the Islamic Republic’s promotion of a Shi’a-based Iranian identity which does not count minorities as full citizens. This in turn has led to the development of a sense of foreignness in Iranian society among Armenian youth. The lack of belonging makes their ties to Iran much less solid, and therefore makes migration a much less painful process. Furthermore, their parents, who were raised in the more pluralistic Iran of the last Shah, find it easier to identify as Iranians than their children.

Does financial news predict stock returns? New evidence from Islamic and Non-Islamic stocks

The paper extends the time-series financial news data set constructed by Garcia (2013) and uses it to examine whether financial news predicts returns of Islamic stocks differently compared to non-Islamic (conventional) stocks. We find that they do. First, while both positive and negative worded news predict most Islamic and conventional stock returns, positive words have a larger impact on both types of stock returns. Second, shock to returns from financial news reverses only in part for some stocks. Third, for a mean-variance investor, investing in Islamic stocks is relatively more profitable than investing in the corresponding conventional stocks. Fourth, we show that profits are robust to a range of time-series risk factors, namely, market risk, size-based risk, and momentum-induced risk.

Momentum strategies for Islamic stocks

We estimate momentum profits for a large portfolio of Islamic stocks, control for stock characteristics and the state-of-the-market, explore seasonal patterns, and examine the determinants of profits. We discover ample evidence that momentum strategies work for Islamic stocks, but are stock characteristic-dependent, that up and down phases of the market offer different profits, and that there is a January effect on profits. We also find that the market risk factors - namely, excess market returns, value, size, and betting-against-beta factors - and macroeconomic risk factors do explain profits. We conclude that the profitability of Islamic stocks is merely compensation for risks and is not due to mispricing.

The new Anti-Semitism in Europe: the Islamic dimension of, and Jewish belonging in, the EU

This article examines the sense of Jewish vulnerability and exclusion in Europe that has resulted from manifestations, and Jewish perceptions, of the “new anti-Semitism,” and the role of Islamic communities in Europe in propagating this form of hatred of Jews. First emerging in 2000 with the outbreak of the second Palestinian Intifada, and tied in with the Middle East conflict, anger at Israel is directed at Diaspora Jewish communities. This “new anti-Semitism” targets the Jewish collective with the characteristics of anti-Semitism previously aimed at individual Jews. The article focuses on the wave of anti-Semitism that erupted as a result of the 2014 Israeli–Hamas War. Based on an analysis of European Jewish communities, it considers the active part played by European Muslim communities in perpetrating the new anti-Semitism. Using an analysis of survey data, emigration statistics and newspaper opinion articles by leading European Jewish intellectuals, the article considers how the new anti-Semitism is adversely affecting Jewish–Muslim relations and the concomitant sense of “belonging” of European Jewry. The article considers what is required to overcome the new anti-Semitism propagated by Muslim communities to restore a greater sense of Jewish belonging to, and identification with, Europe.

Credit quality implied momentum profits for Islamic stocks

Using a sample of Asia-Pacific Islamic stocks we show that momentum profits exist regardless of the credit quality of stocks. A portfolio of low credit quality stocks earns 4.68% per annum more than a portfolio of high credit quality stocks. Market risk factors explain all momentum profits, suggesting that profits are compensation for risks. Post-holding period analysis suggests strong evidence of return reversal, consistent with the behavioral hypothesis. Our main results are also robust to sub-samples of data characterized by the recent global financial crisis and to Islamic and non-Islamic based market risk factors.

Women's rights in the Islamic Republic of Iran: the contribution of secular-oriented feminism

A cornerstone of the conservative gender ideology of Iran’s clerical eliteis the conviction that biological differences between men and women arecause for them to have different roles and functions in society. Differentroles and functions translate to different (read unequal) legal rights.Notwithstanding the discriminatory gender policies of the state, Iranianwomen have refused to renege on their claims to equal rights. In the faceof intense political pressure to withdraw from the public arena, women inthe Islamic Republic have maintained a foothold in the political, socialand legal realms.

Funding the ‘Islamic State’: looting antiquities and the international black market

A key revenue stream for various militant groups across the Middle East, including the Islamic State in Iraq and Syria (ISIS), is the illicit looting and trafficking of antiquities which are sold on the international black market. Various heritage sites are being looted by ISIS and others with devastating efficiency and on an industrial scale. While exact figures are difficult to ascertain, the profits from these looting operations are estimated to be the second largest revenue stream for ISIS after the illegal sale of crude oil. The illicit trafficking of antiquities is therefore financing the devastating advance of ISIS and any effort, including that by the Australian Department of Defence, to defeat ISIS must address this significant issue. More research is urgently needed to understand the precise nature, scope and variety of antiquities looting across the Middle East, the extent to which it is funding groups like ISIS, and to consider Australia’s role in international strategies to stanch this ongoing problem.

Are Islamic stock returns predictable? : a global perspective

Using the sharia-compliant measures, we compile a data set that spans January 1981 to December 2014 and contains 2577 Islamic stocks. Using as many as 12 financial and macroeconomic predictors, we discover strong evidence of both in-sample and out-of-sample return predictability. There is robust evidence of predictability only when U.S. stock returns are used as a predictor. We find that investing in regional (industry) portfolios offers on average, across the 12 predictors, meaningful profits of 6.16% (6.03%) per annum. Investing in a portfolio of Islamic stocks belonging to emerging markets (9.89% per annum) and a portfolio of Islamic stocks belonging to the consumer goods sector (6.37% per annum) offers the most returns amongst regions and industries, respectively.