Smart beta strategies (SBs) are quite popular in passive investing due to their ability to outperform conventional market capitalization-weighted (MCW) portfolios. This paper investigates the impact of SBs in the case of constrained portfolios such as Shariah-compliant equity portfolios (SCEPs)...

Shariah-compliant investment guidelines, while explicit on screening criteria for stock selection, are silent on the weighting methods to be used in the construction of Shariah-compliant equity portfolios. The market capitalization-weighted strategy and smart beta strategies (fundamental...

Shariah-compliant equity investors have the freedom to choose an investment style provided their selection of equities follows approved Shariah screening guidelines. This study proposes the Markov Regime Driven Style allocation (MRDS) strategy for portfolio construction, a forward-looking...

This paper evaluates the perceived stability‐enhancing role of the net stable funding ratio (NSFR) requirement under Basel III and its impact on the balance sheets of banks. Using data from 647 banks located in 47 countries from 2003 to 2013, we find that the NSFR would have played a financial...