Islamic ESG funds climb 10.65% in Q2 2025 to US$1.09 billion

GLOBAL: Islamic ESG funds tracked by the IFN Investor Funds Database expanded 10.65% in Q2 2025, with total AuM rising to US$1.09 billion from US$985.19 million in the first quarter, across 41 funds.

By asset class, equity funds recorded the strongest growth – rising 17.57% to US$523.24 million from US$445.05 million before. Sukuk funds increased 5.93%, reaching US$512.6 million from US$483.88 million previously. Mixed allocation funds gained 4.23%, moving to US$56.7 million from US$54.4 million in the earlier quarter.

By domicile, Luxembourg posted the sharpest increase, up 23.67% to US$176.58 million from US$142.79 million, followed by Ireland with a 21.47% rise to US$239.45 million from US$197.14 million.

In terms of AuM total volume, Malaysia was the largest domicile - which grew 5.83% to US$555.73 million from US$525.1 million. Germany and Saudi Arabia, with the next largest AuM totals, saw smaller gains of 3.78% and 3.45%, respectively.

Indonesia was the only market to contract, falling 6.01% to US$14.7 million from US$15.64 million previously.

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