More Shariah fund offerings adopt quant investment strategies

Quantitative analysis or quant fund strategies are in high appeal again as their underlying models and algorithms used to select investments – reducing the need for human judgment in decision-making – seem to mimic the results of AI systems developed with large language training.

This lure has spread to Shariah compliant funds, with the IFN Investor Funds Database tracing at least three new quant fund strategies launched in 2025 – by the US-based Sabr Investment Technologies plus Saudi Arabia-based WinVeston Capital and SAB Invest, a fully-owned investment subsidiary of Saudi Awwal Bank.

What makes quant funds attractive would be the lower operating costs because they need fewer traditional analysts and managers. However, this can be offset by volumetric cost of algorithmic trading based on big historical data – resulting in increased turnover of securities.

Another bunch of quant strategies include those by Saudi-based Jadwa Investment, Ontario’s Mackenzie, Washington-domiciled Saturna Capital and New York’s BlackRock – plus TIW Capital, with funds domiciled in Mauritius, while operating out of Dubai, London, Mumbai and Singapore.

This asset management firm is hungry for global expansion, having already secured high-net-worth individuals and family office clients from 31 countries. Partner Chandan Kumar told IFN Investor the firm has launched four funds for affluent investors since it began operations in 2014, and the track record of these funds help highlight the bespoke portfolio experience the firm can provide to its clientele.

“Our custom asset management services now handle over US$750 million worth of AuM while our funds are valued at around US$250 million in total.”

As only one of the firm’s four funds is Islamic – the TCG Shariah Compliant Fund – Chandan said TIW Capital is giving extra attention to growing this Muslim-aligned investment service, especially for its bespoke portfolio via the TCG QCAM offering.

“We already have clients within the GCC region and parts of Africa. We are now reaching out to Asia because we see significant opportunities to better serve Muslim clients there with our quant-powered investment strategies.”

Entry into TIW Capital’s bespoke services is set at a minimum of US$2 million – where trading is conducted using the client’s own broking account and powered by the TCG quant architecture plus trading algorithms.

Chandan explained this global portfolio will combine listed large-cap stocks in major markets including the US, Europe, Japan, Hong Kong, Australia and GCC countries along with currencies and other listed securities.

Being an actively-managed portfolio, TIW Capital aims to deliver at least 15% annualized returns for bespoke clients that range from Canada and the US to Australia, with Africa represented by Angola, Egypt, Ghana, Kenya, Nigeria, Seychelles, South Africa and Uganda, plus those from China, Indonesia and Thailand in Asia.

For its Shariah fund, operational since May 2023, the minimum subscription is US$100,000 and capped at US$25 million, aiming for 10% annualized returns. This fund, also available in the British pound equivalent, is invested globally in listed stocks that are constituents of prominent global Shariah indices published by S&P, MSCI and FTSE.