GLOBAL: Africa emerged as the top-performing region in Q1 2025 for Islamic mixed asset funds tracked by the IFN Investor Funds Database. Total AuM doubled on a quarter-to-quarter basis – rising from US$606.85 million to US$1.22 billion as at the 31st March 2025. The top national holdings are South Africa with US$686.93 million and Kenya following with US$515.69 million. While the bulk of assets in mixed funds comprise of equities, the quarterly performance indicates growing interest in diversified Islamic fund products across the continent.
In the Americas, where the AuM base remains small, Islamic mixed asset funds achieved a 86.66% growth from US$3.72 million to US$6.94 million across four active funds. Europe’s AuM increased 16.6% from US$1.22 billion to US$1.42 billion, supported by modest three-month average returns of 2.1% – suggesting stable investor appetite for balanced Shariah compliant strategies.
The Middle East remained the largest regional market by total AuM, growing by 12.13% to reach US$5.2 billion. Saudi Arabia was the dominant contributor, with US$4.2 billion in AuM – marking a 12.93% increase and reaffirming its position as a hub for Islamic capital allocation.
On the flip side, Asia Pacific recorded a 5.47% decline, with AuM dropping from US$4.48 billion to US$4.23 billion. This contraction is attributed to investor caution amid regional market volatility, reallocation toward more specialized equities or Sukuk funds and reduced retail inflows in markets like Malaysia and Indonesia.
