Constructing a resilient Islamic portfolio: Strategies for modern HNW investors

Elevated geopolitical uncertainty, volatile profit rate cycles, and structural shifts in global trade and technology are all reshaping how high-net-worth (HNW) investors think about capital preservation and growth. Islamic investors face the additional challenge of building a portfolio that is not only resilient but also Shariah compliant. We explore how Islamic investors can build a robust Shariah compliant portfolio beyond the traditional 60/40 strategy.

In Islamic investing, diversification matters for the same reason it matters in conventional portfolios: no single asset class performs well in every environment.

For affluent investors, the practical question is not whether to diversify, but how to diversify well. That means looking beyond a single region, sector, or asset type, and instead building exposure across geographies and market themes that can behave differently under stress.

A robust portfolio typically includes a combination of four anchors. Shariah compliant global equities with thematic exposures intended to drive long-term capital growth. Income-generating instruments such as Sukuk for potential income and a degree of diversification benefit. Alternative and defensive allocations such as gold, which in Maybank’s house view is increasingly relevant in a multi-polar world where some investors are diversifying away from reliance on a single reserve currency, along with private markets for lower correlation to public markets. Cash and liquidity buffers to navigate volatility and capture opportunistic entry points as they emerge. In this way, a resilient Islamic portfolio moves beyond the traditional 60/40 equity-bond split toward a broader, multi-asset mix designed to perform across a wider range of conditions.

“In today’s environment, resilience is not about avoiding risk — it is about constructing portfolios that can adapt across cycles, balance growth and income, and remain anchored to disciplined asset allocation. This is where multi-asset, CIO-led strategies play a critical role for Islamic investors,” Maybank Group Wealth Management Chief Investment Officer Eddy Loh explains.

Diagram 1: Illustrative Islamic SAA allocation for a balanced risk profile under Maybank’s CIO framework

Note: The allocation above is a simplified illustration for information purposes only and does not represent an actual or recommended portfolio. It does not depict every anchor discussed in this article (for example, private markets and other alternatives), and does not constitute investment advice.

The multi-asset advantage

Diversification matters and, in a volatile market when rates, geopolitics, and macro conditions shift quickly, multi-asset strategies are better placed to absorb market shocks due to their broader exposure and regular rebalancing.

According to a manager research by Morningstar in 2024, titled Assessing Multi-Asset Funds Beyond the Morningstar Medalist Rating, multi-asset funds can help investors manage risk by combining equities, bonds and cash in one professionally managed portfolio. Morningstar identified diversification, professional portfolio construction and implementation simplicity as the principal advantages of multi-asset strategies.

Meanwhile, Research Affiliates’ January 2024 Harnessing Volatility Targeting in Multi-Asset Portfolios analysis of its 5%-volatility-targeted Global Multi-Asset Index (RAGMAE), a futures-based strategy spanning 22 global equity markets, government bonds and commodities, found that applying a dynamic volatility overlay reduced portfolio risk and improved risk-adjusted outcomes in its historical modelling; a 10% allocation to RAGMAE increased the Sharpe ratio of a conventional 60/40 portfolio by approximately 15%. The index went live only in November 2023, and therefore most of the history used in the analysis is simulated. Research Affiliates’ findings should therefore be interpreted as illustrative rather than as evidence of assured future performance.

“A resilient portfolio is not static — it is adaptive, forward-looking and globally diversified,” Eddy emphasized.

In practice, Maybank may adjust portfolio exposures and implement tactical tilts in response to evolving market conditions. Eddy shares that Maybank’s CIO has, on a house views basis and for illustrative purposes, identified several areas of interest: AI and technology-driven sectors, underpinned by long-term structural growth; quality Sukuk, which may benefit from income stability and the profit rate cycle; and alternatives such as gold which can enhance portfolio diversification.

Nevertheless, exposure to overvalued growth stocks had been moderated from time to time in the past; with the capital re-allocated to Asian equities that offer better risk reward as well as energy stocks as a hedge against oil supply risks. These views reflect the house view as at the time of writing, are provided for information only, are subject to change, and do not constitute investment advice or a recommendation.

Such flexibility can be particularly important in Shariah investing, where the eligible investment universe may differ from conventional markets and requires disciplined portfolio construction.

Shariah premium myth

This is where active portfolio construction adds value. With centralized investment views, ongoing market monitoring, and disciplined allocation shifts, multi-asset portfolios can adapt to changing conditions while keeping the overall structure aligned with the investor’s goals and preferences.

“Shariah portfolios can be built to pursue competitive risk-adjusted returns, not compliance alone,” affirms Eddy.

Maybank’s Shariah compliant multi-asset strategies illustrate how this philosophy can be translated into practice.

Strategies of this kind are constructed to pursue competitive, risk-adjusted returns within a Shariah compliant framework, reinforcing that Shariah compliance need not come at the expense of financial objectives. They are built to address a challenge many investors face today: generating consistent income in an uncertain environment without compromising on Shariah principles or concentrating risk in a single asset.

This challenges the ‘Shariah premium’ myth — the misconception that Shariah compliant financial products are inherently more costly or must necessarily underperform their conventional counterparts.

A “dual-engine” framework is central to that proposition. Maybank Group Wealth Management’s Chief Investment Office sets the high-conviction macro and asset allocation strategy, also behind the group’s wealth advisory approach. In parallel, such strategies may draw on Maybank’s global sub-advisory partnerships to source opportunities across international markets through their global multi-asset capabilities. Structures of this type may also use target fund arrangements and multiple currency classes to provide additional flexibility.

This model is also quietly democratizing institutional portfolio construction. Historically, CIO-led, multi-asset solutions with global research backbones were reserved for large institutions or ultra-HNW clients; today, structures of this kind extend those disciplines to a wider base of affluent investors.

According to the IFN Investor Fund Database, global Islamic funds AuM stood at approximately US$416 billion as at 14th September 2026. Scalable, professionally managed solutions are likely to play a larger role in how individual investors access Shariah compliant opportunities.

For HNW Islamic investors, resilience is about building globally diversified, multi-asset portfolios that can adapt across cycles — anchored in Shariah, informed by institutional-quality views, and implemented through structures that prioritize transparency, liquidity and disciplined risk management.

To learn more about Maybank’s Islamic wealth management offerings, click one of the following: Malaysia, Singapore, Indonesia.

Disclaimer: This article is editorial commentary prepared for general information only. It does not constitute financial, investment, legal, tax or Shariah advice, nor an offer, invitation, solicitation or recommendation to buy, sell or subscribe to any product, fund or strategy, and it is not an advertisement for any specific product. Any reference to strategies, structures or allocations is illustrative and generic, and does not describe or promote any named fund. Past performance is not indicative of future results, and the value of investments and any income from them may rise or fall. Any product referred to generically would be subject to its own terms, offering documents, eligibility criteria and applicable Shariah approvals, and may not be available or authorized in every jurisdiction. This article is not directed at, and must not be distributed to or relied upon by, any person in any jurisdiction where such distribution would be contrary to local law or regulation. Readers should seek independent professional advice, having regard to their own objectives, financial situation and needs, before making any investment decision.