National and Global Islamic Financial Architecture:
Problems and Possible Solutions for the OIC Member Countries
36
2.5.2. Islamic Financial Markets
Islamic Funds
After providing information on various aspects of the Islamic funds segment of capital markets,
this section presents the initiatives taken in 2014. There were a total of 1,181 Islamic funds
with a total value of USD 60.65 billion in 2014. Table 2.20 shows the distribution of the Islamic
funds according to their types. Mutual funds constitute the bulk (87.7%) of the Islamic funds
valued at USD 53.17 billion, and this is followed by ETFs worth USD 6.33 billion which
constitute 10.4% of total Islamic funds. Insurance funds and pensions funds are still very small
with the former having assets of just over USD 1 billion and the latter having a minuscule
amount of only USD 0.15 billion.
Chart ‎2.20: Global Islamic Funds: Fund Types (2014)
Source: Calculated from Thomson Reuters Global Islamic Asset Management Outlook 2015
Table 2.21 shows the asset classes of different Islamic funds. Equity based funds equal USD
24.26 billion (constituting 40% of the total) followed by money market funds of USD 21.83
billion constituting 36% of the total Islamic funds. Commodity funds and sukuk funds are
valued at USD 6.07 and USD 3.64 billion and together are 16% of the total. The remaining
Islamic funds are in the form of real estate funds (USD 1.82 billion) and mixed funds (3.03
billion).
53,17
6,33 1,01 0,15
87,7
10,4 1,7 0,2
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
Mutual funds
(bn).
ETFs Insurance
funds
Pension funds
Percentage USD (bn.)
AuM (US$, bn.) Percentage of Total