GLOBAL: Shariah compliant passive investment strategy funds recorded a defining shift in Q3 2025, with the IFN Investor Funds Database showing this category’s total AuM rising to US$75.24 billion from US$40.88 billion in Q2 2025 – almost doubling over the quarter.
This surge brings the passive strategy portfolio to nearly half the size of active investments, which grew more moderately from US$139.16 billion to US$160.17 billion over the same period.
The acceleration in passive allocations was broad across asset classes, led by commodities – which climbed from US$9.88 billion to US$40.45 billion during the quarter. Lesser increases were also charted by equities, money market products and mixed assets – reflecting heightened interest in transparent, index-linked strategies. The pivot toward passive strategy funds is consistent with global investment behavior, where investors increasingly prioritize lower cost structures that reduce long-term performance drag – particularly during periods of market uncertainty.
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