Modeling the Performance of Bulk-Carriers for Islamic Equity Investors

Adam Abdullah, Rusni Hassan, Salina Kassim
2017 Journal of Islamic Economics Banking and Finance  
This paper investigates the performance of bulk-carriers as a primary shipping segment for Islamic equity investors. Shipping is a strong growth industry with 84% of global trade carried by the shipping industry, although 75% of ship lending is debt-based. Moreover, many Islamic investors have minimal exposure to ship-finance and investment. We adopt an investment analysis of a full population of historical data over 20 years, to evaluate performance involving a maritime return on investment,
more » ... rn on investment, IRR, net yield and standard deviation measures of risk and return. Our findings reveal that whilst earnings are volatile in comparison to capital market expectations, unlevered, tax-free returns on bulk-
doi:10.12816/0051003 fatcat:sicey4buiffathpkizctyv3kki