GLOBAL: Islamic money market funds in the Asia Pacific region demonstrated resilience in Q1 2025 despite ongoing economic headwinds triggered by the US announcing sweeping tariffs. During this quarter, total assets under management (AuM) tracked by the IFN Investor Funds Database showed a modest 1.69% decline, slipping from US$13.64 billion to US$13.41 billion. Overall, these Islamic funds posted a solid average three-month average return of 3.3% during the quarter.
Among key markets, Malaysia recorded a modest three-month return of 0.9%, alongside a quarter-on-quarter AuM increase from US$8.61 billion to US$8.75 billion. Indonesia and Sri Lanka followed with returns of 1.01% and 1.66%, together with respective AuM changes of +5.03% and –1.04%.
Pakistan stood out with the region’s highest three-month return of 8.45%, despite a significant drop in AuM of 10.11% from US$4.16 billion to US$3.74 billion. Pakistan’s strong performance was underpinned by improving domestic inflation trends, elevated yields and a steady policy rate.
