Islamic Fund Management
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1.3 Overview of the Study
The study is organised as follows:
Executive Summary: It summarises the key discussions, findings and recommendations of the
study.
Chapter 1 – Introduction: This chapter introduces the study, stipulates its aim and objectives,
delineates the research methodology adopted, and provides a brief overview of the study
content.
Chapter 2 – Review of the Global Islamic Fund Management Industry: This chapter
provides an overview of the development of the global fund management industry, including
Islamic funds. In particular, it explains the workings of a fund, examines its role in the capital
markets and overall economy, differentiates between conventional and Islamic funds, and
provides an overview of current trends, sizes, types, asset classes, investors, vehicles and other
aspects. The chapter also focuses on Islamic fund management, examining the Shariah
requirements in setting up an Islamic fund, the contractual obligations in an Islamic fund
structure and the roles of the various parties involved in Islamic fund management. In
addition, the chapter discusses the evolution of the fund management industry against the
backdrop of new trends such as sustainable and responsible investment (SRI) and financial
technology (fintech).
Chapter 3 – Comprehensive Analysis of Islamic Fund Management: Infrastructure
Development, Investment and Commercial Considerations: This chapter provides a
comprehensive and detailed analysis of the various types of Islamic funds by focusing on the
establishment, the structure, Shariah guidelines, as well as legal and regulatory requirements.
It also analyses the investment and commercial considerations of fund set-up, including the
type of fund, investment strategies, asset allocation, portfolio monitoring and periodic
rebalancing, operational costs, target investors and geographical distribution. Lastly, it
discusses the critical success factors and challenges when developing the Islamic fund
management industry.
Chapter 4 – Country-Specific Case Studies: This chapter first introduces the methodology
and selection criteria of the country-specific case studies, the policies and practices in Islamic
fund management which have been examined in this study. It then presents an analysis of the
Islamic fund management market in four countries, i.e. Malaysia, Pakistan, Morocco and South
Africa. The case studies involve the examination of the domestic and global market shares of
the different segments of the Islamic finance market in the respective countries, the evolution
of Islamic fund management, the infrastructure development of Islamic funds, investment and
commercial considerations, the key factors underpinning the overall growth and development
of Islamic fund management, the lessons learned and country-level recommendations.
Chapter 5 – General Policy Recommendations for Implementation by OIC Countries: This
chapter offers general policy recommendations on the setting up and development of Islamic
funds within the context of their working mechanisms, legal and regulatory framework,
Shariah governance, market and infrastructure development, commercial issues and other
challenges that affect the progression of the Islamic fund management industry. It then