GLOBAL: Islamic balanced funds recorded diverse performance across regions in Q1 2025, according to the IFN Investor Funds Database. Overall, the AuM for balanced funds grew by 12.96%, rising from US$10.65 billion to US$12.03 billion.
Europe led all regions in growth rate, with AuM increasing more than 16-fold, from US$45.83 million to US$806.71 million – mainly driven by the addition of four new Shariah compliant balanced funds in Luxembourg, which significantly boosted the region’s total AuM. In the Middle East, Saudi Arabia was the key contributor, driving regional AuM up from US$6.64 billion to US$7.30 billion, reflecting a 9.94% growth rate – supported by favorable performance in local equity and Sukuk markets during the quarter.
In contrast, Africa experienced a 13.79% decline, where AuM fell by 14.03%, from US$858.20 million to US$737.77 million. This was attributed to investor outflows and weaker market performance, likely driven by currency depreciation and a shift in sentiment away from balanced fund allocations.
Meanwhile, Asia Pacific saw a modest increase of 2.5% in AuM, from US$3.1 billion to US$3.12 billion. Malaysia remained the largest contributor in the region with US$2.8 billion, followed by Indonesia at US$167.85 million, which recorded a 5.74% return over the three-month period. The region’s overall growth was supported by stable investor confidence and consistent returns from these major markets.
