Islamic Fund Management
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launched in 2003 by Takaful South Africa, the only firm offering Islamic insurance in Africa’s
biggest economy. In 2011, it was acquired by Absa Group.
Share of Domestic Islamic Funds against Total Funds Managed
As at end-2017, South Africa accounted for 2.4% of global AuM (IFSB, 2018) under 22 Islamic
funds, including 1 ETF. The dominance of South Africa in this segment is not surprising given
the high level of financial sector development and the conducive environment it offers to
investors. As depicted in the total AuM of CIS has achieved a CAGR of 13.3% since
2010, amounting to ZAR 2.25 trillion as at end-2017.
Chart 4.21: South Africa’s AuM of CIS (2010-2017)
Source: ASISA
As illustrated i the AuM of CIS is further divided into asset allocations, where the
biggest share is taken up by multi assets (48%). This is followed by equity, fixed income and
real estate.
Chart 4.22: Asset Allocation of CIS (end- 2017)
Source: ASISA
In 2014, South Africa registered 49 asset managers of CIS, many of which were also registered
to manage funds in other African countries. Not surprisingly, for a market with such large
players, the institutional sector is somewhat concentrated; the top ten asset managers handle