Mixed assets: The all-weather Shariah engine

• Global mixed assets total AuM grew 4.36% to US$13.64 billion
• Europe led regional growth with a 35.22% AuM increase
• Al Rajhi Growth Fund remains the largest by valuation

The global Shariah compliant mixed assets sector has evolved into much more than a defensive niche; it is now the "all-weather" engine of Islamic finance.

By balancing the aggressive growth potential of equities with the structural stability of Sukuk and dynamism of commodities, these funds serve as a live barometer for the modern Muslim investor’s appetite – one that increasingly demands principled returns without sacrificing resilience in volatile markets.

The IFN Investor Funds Database showed this segment tracking US$13.64 billion across 397 funds as of Q4 2025, up from US$13.07 billion in Q3 2025, as it expanded its reach into new territories while maintaining deep roots in traditional strongholds.

Asset spread

Middle East: This region maintains the highest regional AuM at US$5.16 billion across 48 funds, largely driven by massive institutional and sovereign wealth mandates in GCC hubs. Saudi Arabia alone accounts for US$4.65 billion of this total, anchored by 36 specialized funds. The region as a whole saw AuM for Shariah mixed assets grow by 3.42% in Q4 2025.

Asia Pacific: The Asian region, in contrast, leads in sheer volume with 219 funds, signaling a highly democratized and retail-focused market. While its total AuM of US$5.31 billion is comparable to the Middle East, the higher fund count reflects a landscape tailored to individual investors and smaller institutional requirements. Malaysia remains the cornerstone of this region, hosting 148 funds with a combined value of US$3.98 billion. Asia Pacific’s AuM for Shariah mixed assets expanded by 4.78% in Q4 2025.

Europe: A significant narrative in the Q4 2025 data is the steady integration of Shariah compliant mixed assets into Western capital markets. Europe has emerged as a major player, with 97 funds managing US$2.36 billion. This growth is spearheaded by Turkiye, which bridges the gap between East and West with 81 funds totaling US$2.22 billion. Furthermore, Luxembourg is carving out a niche as a sophisticated hub for these vehicles, currently hosting four funds with US$417.95 million in AuM. European Shariah mixed assets AuM, as a whole, rose 35.22% in Q4 2025, the most for any region.

Americas: The combination of the US and Canada remain a nascent but strategically vital frontier. While currently represented by only four funds with a modest US$11.68 million in AuM, the region represents a massive, untapped opportunity for fund managers aiming to engage with the world’s deepest capital markets and a growing diaspora seeking ethical alternatives. The Americas’ AuM for Shariah mixed assets grew by 19.18% in Q4 2025.

Africa: Africa continues to serve as an essential growth vector for this asset class, mobilizing local liquidity through regional financial centers. This is despite it being the only region where the AuM for Shariah mixed assets dwindled in Q4 2025 – by 36.51%, to represent a virtual flip of Europe’s 36.51% growth.

That drop left some US$799.43 million across 29 mixed asset funds. South Africa leads the African contingent with 17 funds worth US$765.53 million.

Table 1: Quarterly AuM change in global Shariah mixed assets by region

Chart 1: Global Shariah mixed assets by region, AuM and fund count

Chart 2: Global Shariah mixed assets by country, AuM and fund count

Largest mixed asset funds

The Al Rajhi Growth Fund was the world’s largest Shariah mixed asset fund as of Q4 2025, ringing in an AuM just shy of US$2 billion. 

Managed by Al Rajhi Capital, the fund serves as the primary benchmark for institutional scale in the industry and represents more than half of the AuM of the entire Saudi mixed assets industry, which stands at US$4.65 billion. In terms of asset composition, the fund strategically blends equities, Sukuk, real estate and commodities.

The Al Rajhi fund was also more than four times that of the next largest fund in the global mixed asset category – outflanking Prudential BSN Takaful's Takafulink Dana Ekuiti in Malaysia, capitalized at around US$713 million.

Table 2: Leading Shariah mixed asset funds by AuM

Top-performing mixed asset funds

The BNP Paribas Cardif Variable Retirement Investment Fund, managed by Turkiye’s BNP Paribas Cardif Emeklilik, was the best performing Shariah mixed asset in Q4 2025 with a return of 29.04%.

As an "aggressive participation" vehicle, it is designed for long-term investors seeking high-growth potential. Heavily weighted toward equities, the fund also invests in Sukuk issued by the public or private sector and participation accounts in Islamic banks. It maintains the flexibility to allocate up to 50% of its holdings in foreign currency-denominated Shariah assets, though it generally maintains a lower threshold for foreign-issued securities.

Table 3: Top Shariah mixed asset funds by returns

Outlook

As the global economy faces continued volatility, the moderate risk profile of mixed assets provides an indispensable bridge between the high-growth potential of equities and the defensive stability of Sukuk.

The sector is poised for further evolution through tech-enabled distribution and innovative product structures such as target-date funds, which are increasingly cementing the mixed asset class as the bedrock of global Islamic wealth management.