April 2015 S&P Dow Jones Indices: Index Methodology

Dow Jones Sukuk Index

Methodology

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 1

Table of Contents

Introduction 3

Highlights 3

Eligibility Criteria 4

Eligibility Factors 4

Timing of Changes 5

Sub-Indices 6

The Dow Jones Sukuk Index 6

The Dow Jones Sukuk Investment Grade Total Return Index 6

The Dow Jones Sukuk Higher Quality Investment Grade Total Return Index 7

The S&P MENA Sukuk Index 7

Index Construction 8

Index Calculations 8

Index Maintenance 9

Monthly Rebalancing 9

Currency of Calculation 9

Exchange Rate 9

Base Dates and History Availability 9

Index Governance 11

Index Committee 11

Index Policy 12

Announcements 12

Holiday Schedule 12

End-of-Day Calculation 12

Index Releases 12

Recalculation Policy 12

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 2

Index Dissemination 14

Tickers 14

FTP 15

Web site 15

Appendix 16

Calculation of Index Bond Market Values 16

Calculation of Index Bond Returns 16

Daily Index Returns 18

Daily Index Values 19

Reinvestment Returns from Monthly Cash Flows 19

Currency Hedged Indices 19

S&P Dow Jones Indices’ Contact Information 21

Index Management 21

Product Management 21

Media Relations 21

Client Services 21

Disclaimer 22

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 3

Introduction

The Dow Jones Sukuk Index is designed to provide exposure to global Islamic fixed income securities - also known as sukuk. The index includes U.S. dollar-denominated investment-grade sukuk issued in the global market that have been screened for Shariah compliance according to the index methodology.

Highlights

The Dow Jones Sukuk Index intends to measure the performance of dollar-denominated sukuk with a maturity greater than one year and that have an investment grade rating from either S&P, Moody’s, or Fitch. The structure of the Dow Jones Sukuk Family currently consists of:

This methodology was created by S&P Dow Jones Indices to achieve the aforementioned objective of measuring the underlying interest of each index governed by this methodology document. Any changes to or deviations from this methodology are made in the sole judgment and discretion of S&P Dow Jones Indices so that the index continues to achieve its objective.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 4

Eligibility Criteria

Eligibility Factors

The universe of U.S. dollar-denominated sukuk is evaluated monthly. Instruments that satisfy the criteria below are eligible for inclusion in the index:

Currency Denomination. The index includes instruments denominated in U.S. dollars. Instrument Type. The index includes fixed rate and floating rate coupon instruments. Optionality. The index includes bullet bonds and bonds with make-whole provisions. Shariah Compliance. The index screens for Shariah compliance use the following criteria:

• Certification by a recognized Shariah Supervisory Board. The first criterion for considering sukuk is to ensure that the issuance is certified by a reputable Shariah Supervisory Board. In many cases, sukuk will be certified not only by the issuer’s Shariah Supervisory Board, or the arranger, but also by the investor’s Shariah Supervisory Board as well. To address the potential problem of differing Shariah Supervisory Board interpretations, the screen will be passed only if sukuk have been certified by a Shariah Supervisory Board with international membership or if more than one Shariah Supervisory Board from different geographic regions have certified sukuk.

• Compliance with AAOIFI Standards for Tradeable Sukuk. Because of the standards for sukuk issued by the AAOIFI, a diverse range of instruments has been identified, and their acceptance by Islamic banks and financial institutions has been universal.

• Compliance of the underlying assets with Shariah principles. In the same way that stocks are screened for compliance of the primary business so as not to permit companies engaged in any of the so-called prohibited industries, the underlying assets to be securitized in sukuk must be screened for Shariah principles. The industry-based screening criteria are similar to those established for the Dow Jones Islamic Market™ (DJIM) Indices.

Issue size (Amount Outstanding). The issue size must be US$ 200 million or greater.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 5

Maturity. The minimum maturity is one year. In order to enter a maturity-based index, a bond’s remaining time to maturity must be at least three months longer than the minimum maturity horizon for that index. A bond already in one of the maturity-based indices may remain until the end of the month prior to the month its maturity would fall below the index minimum. Pricing. All pricing is provided by Interactive Data Corporation (IDC). Rating. Securities must be rated at least BBB-/Baa3 by S&P, Moody’s, or Fitch. In order to enter a quality-based index, the security must possess a rating consistent with the appropriate band. For the Dow Jones Sukuk Index, if a security is rated by more than one rating agency, the highest rating is used to determine eligibility in the appropriate quality based index. For the Dow Jones Sukuk Investment Grade Total Return Index and the Dow Jones Sukuk Higher Quality Investment Grade Total Return Index, if a security is rated by more than one rating agency, the lowest rating is used to determine eligibility in the appropriate quality based index.

Timing of Changes

Additions. No securities are added between rebalancings. Deletions. No security is deleted from the index between rebalancings. If a bond’s price becomes unavailable, the last available price is used for index calculations. Rebalancing Reference Date. The rebalancing reference date is three business days prior to month end. Rebalancing Date. The rebalancing date is the last business day of each month.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 6

Sub-Indices

The Dow Jones Sukuk Index

The Dow Jones Sukuk Index includes four maturity-based indices and four quality-based indices:

• Dow Jones Sukuk 1-3 Year Total Return Index

• Dow Jones Sukuk 3-5 Year Total Return Index

• Dow Jones Sukuk 5-7 Year Total Return Index

• Dow Jones Sukuk 7-10 Year Total Return Index

• Dow Jones Sukuk AAA Rated Total Return Index

• Dow Jones Sukuk AA Rated Total Return Index

• Dow Jones Sukuk A Rated Total Return Index

• Dow Jones Sukuk BBB Rated Total Return Index

The Dow Jones Sukuk Investment Grade Total Return Index

The Dow Jones Sukuk Investment Grade Total Return Index intends to measure the performance of dollar-denominated sukuk with a maturity greater than one year and with an investment grade rating from either S&P, Moody’s, or Fitch. The Dow Jones Sukuk Investment Grade Total Return Index includes four maturity-based indices and four quality-based indices:

• Dow Jones Sukuk 1-3 Year Investment Grade Total Return Index

• Dow Jones Sukuk 3-5 Year Investment Grade Total Return Index

• Dow Jones Sukuk 5-7 Year Investment Grade Total Return Index

• Dow Jones Sukuk 7-10 Year Investment Grade Total Return Index

• Dow Jones Sukuk AAA Rated Investment Grade Total Return Index

• Dow Jones Sukuk AA Rated Investment Grade Total Return Index

• Dow Jones Sukuk A Rated Investment Grade Total Return Index

• Dow Jones Sukuk BBB Rated Investment Grade Total Return Index

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 7

The Dow Jones Sukuk Higher Quality Investment Grade Total Return Index

The Dow Jones Sukuk Higher Quality Investment Grade Total Return Index intends to measure the performance of dollar-denominated sukuk with a maturity greater than one year and that have an investment grade rating from either S&P, Moody’s, or Fitch that is BBB/Baa2 and above.

The S&P MENA Sukuk Index

The S&P MENA Sukuk Index intends to measure the performance of dollar-denominated sukuk with a maturity greater than one year and with an investment grade rating from either S&P, Moody’s, or Fitch. Security Type. Domestic Sukuk, International Sukuk, Sukuk Al Ijara, Sukuk Al Mudarabah, Sukuk Al Murabaha, and Sukuk Al Musharakah are eligible. 144a securities are not eligible.

Country of Risk. Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, or Yemen.

Maturity Type. Callable securities are not eligible.

Rating. The minimum credit rating for inclusion in investment grade indices is BBB- / Baa3 / BBB-. For an issue rated by S&P, Moody’s, and Fitch, the lowest of the three ratings is used as the issue's credit rating. When there are two ratings, the lower of the two ratings must be considered investment grade. When there is only one rating, that rating must be considered investment grade. New issues must be rated by at least one rating agency to be considered at the next rebalancing. Bonds that are not rated are removed at the first rebalancing. Defaulted securities are removed at the first rebalancing.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 8

Index Construction

Index Calculations

The Dow Jones Sukuk Index is a market-value-weighted index. The weight for each eligible issue is the market value of the issue as a percent of total index market value. The total return is calculated by aggregating the interest return, reflecting the return due to paid and accrued interest, and price return, reflecting the gains or losses due to changes end-of-day price and principal repayments. For further details regarding Index Calculations, please refer to the Appendix.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 9

Index Maintenance

Monthly Rebalancing

Based on eligibility criteria, new issuance, size, maturity and pricing rules, the index is rebalanced monthly effective after the close of the last U.S. trading day of the month. Using data as of each monthly rebalancing reference date, all eligible bonds are added to the index at the monthly rebalancing. Additions to, deletions from and other changes to the index arising from the monthly rebalancing are published after the close of business three business days prior to the last business day of the month.

Currency of Calculation

The Dow Jones Sukuk Index and related sub-indices are calculated in U.S. dollars. The Dow Jones Sukuk Higher Quality Investment Grade Total Return Index is also available in British pounds, Canadian dollars, Chinese yuan, euros, Japanese yen, Singapore dollars and Swiss francs. Currency hedged versions are also available.

Exchange Rate

WM/Reuters foreign exchange rates are taken daily at 04:00 PM London time and used in the calculation of the non-U.S. dollar versions of the Dow Jones Sukuk Higher Quality Investment Grade Total Return Index. These mid-market fixings are calculated by the WM Company based on Reuters' data and appear on Reuters pages WMRA.

Base Dates and History Availability

Index history availability, base dates and base values are shown in the table below.

Index

Launch Date

First Value Date (Base Date)

Base Value

Dow Jones Sukuk Index 04/28/2006 09/30/2005 100 Dow Jones Sukuk 1-3 Year Total Return Index 04/28/2006 09/30/2005 100 Dow Jones Sukuk 3-5 Year Total Return Index 04/28/2006 09/30/2005 100 Dow Jones Sukuk 5-7 Year Total Return Index 04/30/2010 04/30/2010 100 Dow Jones Sukuk 7-10 Year Total Return Index 07/31/2007 07/31/2007 100 Dow Jones Sukuk AAA Rated Total Return Index 04/28/2006 09/30/2005 100 Dow Jones Sukuk AA Rated Total Return Index 02/28/2007 02/28/2007 100 Dow Jones Sukuk A Rated Total Return Index 04/28/2006 09/30/2005 100 Dow Jones Sukuk BBB Rated Total Return Index 08/31/2007 08/31/2007 100 Dow Jones Sukuk Investment Grade Total Return Index 04/18/2013 12/31/2012 100

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 10

Index

Launch Date

First Value Date (Base Date)

Base Value

Dow Jones Sukuk 1-3 Year Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk 3-5 Year Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk 5-7 Year Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk 7-10 Year Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk AAA Rated Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk AA Rated Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk A Rated Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk BBB Rated Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index 04/18/2013 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index SGD 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CAD 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CHF 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index EUR 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index GBP 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index JPY 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CNY 04/21/2015 12/31/2012 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index SGD Hedged 04/21/2015 01/31/2013 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CAD Hedged 04/21/2015 01/31/2013 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CHF Hedged 04/21/2015 01/31/2013 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index EUR Hedged 04/21/2015 01/31/2013 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index GBP Hedged 04/21/2015 01/31/2013 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index JPY Hedged 04/21/2015 01/31/2013 100

Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CNY Hedged 04/21/2015 01/31/2013 100

S&P MENA Sukuk Index 09/20/2013 07/31/2013 100

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 11

Index Governance

Index Committee

S&P Dow Jones Indices’ Fixed Income Index Committee maintains the indices. All committee members are full-time professionals at S&P Dow Jones Indices. Meetings are held quarterly, but interim meetings may be held whenever deemed appropriate. The Index Committee oversees the management of the indices, including maintenance and inclusion policies, and other matters affecting the maintenance and calculation of the indices. In fulfilling its responsibilities, the Index Committee has full and complete discretion to (i) amend, apply, or exempt the application of index rules and policies as circumstances may require and (ii) add, remove, or by-pass any issue in determining the composition of an index. The Index Committee may rely on any information or documentation submitted to it or gathered by it that the Index Committee believes to be accurate. The Index Committee reserves the right to reinterpret publicly available information and to make changes to the indices based on a new interpretation of that information at its sole discretion. All Index Committee discussions are confidential. For information on Quality Assurance and Internal Reviews of Methodology, please refer to S&P Dow Jones Indices’ Fixed Income Policies & Practices document located on our Web site, www.spdji.com.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 12

Index Policy

Announcements

Announcements of any relevant information pertaining to the Dow Jones Sukuk Index and related sub-indices are made at approximately 06:00 PM New York Time. Press releases are posted on the S&P Dow Jones Indices Web site at www.spdji.com.

Holiday Schedule

The Dow Jones Sukuk Index and related sub-indices are calculated Monday through Friday, with the exception of December 25th (Christmas Day) and January 1st (New Year’s Day). A complete holiday schedule for the year is available at www.spdji.com.

End-of-Day Calculation

Index levels are calculated at the end of each business day, at approximately 06:00 PM New York Time, via S&P Dow Jones Indices’ Web site. This may be subject to change.

Index Releases

Releases are issued by S&P Dow Jones Indices at the end of the business day. The release time is generally 06:00 PM New York Time.

Recalculation Policy

S&P Dow Jones Indices reserves the right to recalculate an index under certain limited circumstances. S&P Dow Jones Indices may choose to recalculate and republish an index if it is found to be incorrect or inconsistent within two trading days of the publication of the index level in question for one of the following reasons:

1. Index methodology event

2. Late announcement

3. Revised source data Any other restatement or recalculation of an index is only done under extraordinary circumstances to reduce or avoid possible market impact or disruption as solely determined by the Index Committee.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 13

For more information on the recalculation policy please refer to S&P Dow Jones Indices’ Fixed Income Policies & Practices document located on our Web site, www.spdji.com. For information on Calculations and Pricing Disruptions, Expert Judgment and Data Hierarchy, please refer to S&P Dow Jones Indices’ Fixed Income Policies & Practices document located on our Web site, www.spdji.com.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 14

Index Dissemination

Index levels are available through S&P Dow Jones Indices’ Web site at www.spdji.com, major quote vendors (see codes below), numerous investment-oriented Web sites, and various print and electronic media.

Tickers

Index Bloomberg Dow Jones Sukuk Total Return Index DJSUKTXR Dow Jones Sukuk Price Return Index DJSUKUK Dow Jones Sukuk AAA Rated Total Return Index DJSUK3AT Dow Jones Sukuk AA Rated Total Return Index DJSUK2AT Dow Jones Sukuk A Rated Total Return Index DJSUK1AT Dow Jones Sukuk BBB Rated Total Return Index DJSUK3BT Dow Jones Sukuk 1-3 Year Total Return Index DJSUK3T Dow Jones Sukuk 3-5Year Total Return Index DJSUK5T Dow Jones Sukuk 5-7 Year Total Return Index DJSUK7T Dow Jones Sukuk 7-10 Year Total Return Index DJSUK10T Dow Jones Sukuk Investment Grade Total Return Index DJSIKGT Dow Jones Sukuk Investment Grade AAA Rated Total Return Index DJSIK3AT Dow Jones Sukuk Investment Grade AA Rated Total Return Index DJSIK2AT Dow Jones Sukuk Investment Grade A Rated Total Return Index DJSIK1AT Dow Jones Sukuk Investment Grade BBB Rated Total Return Index DJSIK3BT Dow Jones Sukuk Investment Grade 1-3 Year Total Return Index DJSIK3T Dow Jones Sukuk Investment Grade 3-5Year Total Return Index DJSIK5T Dow Jones Sukuk Investment Grade 5-7 Year Total Return Index DJSIK7T Dow Jones Sukuk Investment Grade 7-10 Year Total Return Index DJSIK10T Dow Jones Sukuk Higher Quality Investment Grade Total Return Index DJSHKT Dow Jones Sukuk Higher Quality Investment Grade Total Return Index SGD DJSHKTS Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CAD DJSHKTC Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CHF DJSHKTF Dow Jones Sukuk Higher Quality Investment Grade Total Return Index EUR DJSHKTE Dow Jones Sukuk Higher Quality Investment Grade Total Return Index GBP DJSHKTG Dow Jones Sukuk Higher Quality Investment Grade Total Return Index JPY DJSHKTJ Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CNY DJSHKTN Dow Jones Sukuk Higher Quality Investment Grade Total Return Index SGD Hedged DJSHKTSH Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CAD Hedged DJSHKTCH Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CHF Hedged DJSHKTFH Dow Jones Sukuk Higher Quality Investment Grade Total Return Index EUR Hedged DJSHKTEH Dow Jones Sukuk Higher Quality Investment Grade Total Return Index GBP Hedged DJSHKTGH Dow Jones Sukuk Higher Quality Investment Grade Total Return Index JPY Hedged DJSHKTJH Dow Jones Sukuk Higher Quality Investment Grade Total Return Index CNY Hedged DJSHKTNH S&P MENA Sukuk Index SPBDSMNT

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 15

FTP

Daily index levels and index data are available via FTP subscription. For product information, please contact S&P Dow Jones Indices, www.spdji.com/contact-us.

Web site

For further information, please refer to S&P Dow Jones Indices’ Web site at www.spdji.com.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 16

Appendix

Calculation of Index Bond Market Values

A market value is calculated for each Index Bond as of the close on each day, as follows:

100)( tt

ttAIPPARMV +

∗= (1)

where:

MVt = Market value of the Index Bond on day t.

PARt = Par Amount of the Index Bond as of the last monthly rebalancing, adjusted for principal pre-payments up to and including day t.

Pt = Price of the Index Bond on day t.

AIt = Accrued interest1 on the Index Bond up to and including day t. If the valuation date is not a trading day, the market value is based on the price as of the immediate prior trading day, plus interest accrued to the valuation date.

Calculation of Index Bond Returns

Total Return The month-to-date (MTD) total return (TR) of an Index Bond on day t is the sum of the MTD interest return and the MTD price return:

ttt PRIRTR += (2)

where:

IRt = MTD interest return on day t.

PRt = MTD market price return on day t.

Price return measures the return due to the change in the market price of the bond. Interest return (or coupon return) includes the return due to the interest earned on that bond. 1 AIt in (1) is calculated on a calendar date basis and uses the conventions for calculating

settlement accrued. Accordingly, accrued interest is zero on a coupon payment date.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 17

Interest Return The MTD interest return on an individual Index Bond on day t is as follows:

( )RB

t,RBRBtRBt

MVIntAIAIPARIR +−∗

= (3)

where:

IRt = MTD interest return at time t.

AIt = Accrued interest, up to and including day t.

AIRB = Accrued interest as of the last monthly rebalancing.

PARRB = Par amount of the index bond as of the last monthly rebalancing.

Int RB,t = Interest payment occurring after the prior rebalancing and up to and including day t.

MVRB = Market value as of the last monthly rebalancing.

Daily interest return at time t.

1)1(

)1(1−

++

=−t

tt

IRIRir (4)

Price Return The formula for the price return for an Index Bond at time t is as follows:

RB

RBt

ttRB

tMV

PRPPrinPPPARPR 100100

1 −∗+

−

∗=

−

(5)

where:

PRt = MTD price return on day t.

PARRB = Par amount of the index bond as of the last monthly rebalancing.

Pt = Bond price on day t.

PRB = Bond price as of the last monthly rebalancing.

Print = Principal prepayments on day t.

MVRB = Market value as of the last monthly rebalancing.

RP = Redemption price.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 18

Daily price return at time t.

1)1(

)1(1−

++

=−t

tt

PRPRpr (6)

Daily Index Returns

The individual index bonds returns are aggregated to calculate returns for the index. Specifically, on a given day, the total return, interest return and price return for the index are equal to a weighted average of the returns of the index bonds that constitute the index. The weight of each index bond return is equal to the relative weight of that index bond in the index as of the previous calendar day (adjusted for principal pre-payments, etc.). The formulas are as follows:

∑∑∑

−−

−−

−−

−

++

+

∗

itt

itt

itt

ii

ti

ti

tCASHMV

CASHRateCASHMV

trMVIndexTR

11

11

11

1*= (7)

∑∑

−−

−

+

∗

itt

ii

ti

ti

tCASHMV

irMVIndexIR

11

1

= (8)

∑∑

−−

−

+

∗

itt

ii

ti

ti

tCASHMV

prMVIndexPR

11

1

= (9)

where:

IndexTRt = Index total return on day t.

IndexIRt = Index interest return on day t.

IndexPRt = Index price return on day t.

trit = Total return of index bond i on day t.

irit = Interest return of index bond i on day t.

prit = Price return of index bond i on day t.

MVit-1 = Market value of index bond i, at the close of day t-1.

CASHt-1 = Cumulative cash received in the index from the rebalancing date up to the close of day t-1.

Ratet-1 = Daily cash reinvestment rate on day t-1.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 19

Daily Index Values

Index values are calculated each day by applying the current day’s index return to the previous day’s index value, as follows:

( )ttt IndexTRTRIVTRIV +∗= − 11 (10)

( )ttt IndexPRPRIVPRIV +∗= − 11 (11)

( )ttt IndexIRIRIVIRIV +∗= − 11 (12) where:

TRIVt = Total return index value on day t.

PRIVt = Price return index value on day t.

IRIVt = Interest return index value on day t.

tIndexTR = Index total return on day t.

tIndexIR = Index interest return on day t.

tIndexPR = Index price return on day t.

Reinvestment Returns from Monthly Cash Flows

The Dow Jones Sukuk Index and its sub-indices are rebalanced monthly. All cash, including interest payments and principal prepayments, are kept in cash until the next rebalance date. In other words, Ratet-1 is zero in the equation (7).

Currency Hedged Indices

A currency-hedged index is designed to represent returns for those global index investment strategies that involve hedging currency risk2, but not the underlying constituent risk. Investors employing a currency-hedged strategy seek to eliminate the risk of currency fluctuations and are willing to sacrifice potential currency gains. By selling foreign exchange forward contracts, global investors are able to lock in current exchange forward rates and manage their currency risk. Profits (losses) from the forward contracts are offset by losses (profits) in the value of the currency, thereby negating exposure to the currency.

2 By currency risk, we simply mean the risk attributable to the security trading in a currency

different from the investor’s home currency. This definition does not incorporate risks that exchange rate changes can have on an underlying security’s price performance.

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 20

Return Definitions S&P Dow Jones Indices’ standard currency hedged indices are calculated by hedging beginning-of-period balances using rolling one-month forward contracts. The amount hedged is adjusted on a monthly basis.

Hedge Ratio = (1 + Index Yield to MaturityBG / 2) ^ (1/6)

End of Month FX Forward Interpolated (EFFI) = Spottoday + (One-month forwardtoday – Spottoday) * (Nmonth total – Nsince prev month) / 30

where:

Nmonth total = Number of days in current month.

Nsince prev month = Number of days since previous month end.

Projected MTD Hedge Value (PMHV) = Hedge Ratio ^ (Nsince prev month / Nmonth total )

Hedged Returntoday = PMHVtoday * (1 + (SpotBG / EFFIBG – Spottoday / EFFItoday) Where:

SpotBG = Spot rate at the beginning of the month (or end of previous month).

Residual Value = (MTD return of unhedged Index – PMHVtoday) * SpotBG / Spottoday

Hedge Index Returntoday = Hedged Return + Residual value

Hedge Index Valuetoday = Hedge Index Valuetoday-1 * (1 + Hedge Index returntoday)

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 21

S&P Dow Jones Indices’ Contact Information

Index Management

David M. Blitzer, Ph.D. – Managing Director & Chairman of the Index Committee david.blitzer@spdji.com +1.212.438.3907 Way King – Director, Fixed Income Indices way.king@spdji.com +1.212.438.4924

Product Management

J.R. Rieger – Vice President, Fixed Income Indices james.rieger@spdji.com +1.212.438.5266 Kevin Horan – Director, Fixed Income Indices kevin.horan@spdji.com +1.212.438.8814 Michele Leung – Associate Director, Fixed Income Indices michele.leung@spdji.com +1.852.2532.8030

Media Relations

David Guarino – Communications dave.guarino@spdji.com +1.212.438.1471

Client Services

index_services@spdji.com Beijing +86.10.6569.2770 Dubai +971.4.371.7131 Hong Kong +852.2532.8000 London +44.20.7176.8888 New York +1.212.438.2046 or +1.877.325.5415 Sydney +61.2.9255.9802 Tokyo +81.3.4550.8564

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 22

Disclaimer

© S&P Dow Jones Indices LLC, a part of McGraw Hill Financial 2015. All rights reserved. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) a part of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Trademarks have been licensed to S&P Dow Jones Indices LLC. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates (collectively “S&P Dow Jones Indices”) do not have the necessary licenses. All information provided by S&P Dow Jones Indices is impersonal and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. Past performance of an index is not a guarantee of future results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. S&P Dow Jones Indices makes no assurance that investment products based on the index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor, and S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle. A decision to invest in any such investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this document. Prospective investors are advised to make an investment in any such fund or other vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or other investment vehicle. S&P Dow Jones Indices LLC is not a tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. These materials have been prepared solely for informational purposes based upon information generally available to the public from sources believed to be reliable. No content contained in these materials (including index data, ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse-engineered, reproduced or distributed in any form by

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 23

any means, or stored in a database or retrieval system, without the prior written permission of S&P Dow Jones Indices. The Content shall not be used for any unlawful or unauthorized purposes. S&P Dow Jones Indices and its third-party data providers and licensors (collectively “S&P Dow Jones Indices Parties”) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Dow Jones Indices Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content. THE CONTENT IS PROVIDED ON AN “AS IS” BASIS. S&P DOW JONES INDICES PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Dow Jones Indices Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the Content even if advised of the possibility of such damages. Credit-related and other analyses, including ratings, research and valuations are generally provided by affiliates of S&P Dow Jones Indices, including but not limited to Standard & Poor’s Financial Services LLC and Capital IQ, Inc. Such analyses and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. Any opinion, analyses and rating acknowledgement decisions are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P Dow Jones Indices does not assume any obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P Dow Jones Indices LLC does not act as a fiduciary or an investment advisor. While S&P Dow Jones Indices has obtained information from sources they believe to be reliable, S&P Dow Jones Indices does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P Ratings Services reserves the right to assign, withdraw or suspend such acknowledgement at any time and in its sole discretion. S&P Dow Jones Indices, including S&P Ratings Services disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgement as well as any liability for any damage alleged to have been suffered on account thereof. Affiliates of S&P Dow Jones Indices LLC may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. Such affiliates of S&P Dow Jones Indices LLC reserve the right to disseminate its opinions and analyses. Public ratings and analyses from S&P Ratings Services are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be

S&P Dow Jones Indices: Dow Jones Sukuk Index Methodology 24

distributed through other means, including via S&P Rating Services publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. S&P Dow Jones Indices keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P Dow Jones Indices may have information that is not available to other business units. S&P Dow Jones Indices has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. In addition, S&P Dow Jones Indices provides a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.