Our research indicates that professionally constructed sharia-compliant global portfolios would have outperformed their conventional peers, and by a wide margin over the last 10 years.
This is due to the more prudent nature of sharia-compliant investing. Cash and Fixed Income securities are backed by true cash-flowing assets. Equity investments are in companies with low or no debt. Alternative investments equally meet sharia standards and avoid leverage and require true fixed assets.
Below we illustrate a model Islamic portfolio’s performance since 1 January 2008, specifically a Global USD Balanced investment strategy. We compare it to the global USD Balanced strategy from some of the leading names in asset management.
For professionals with knowledge of portfolio performance measurements, we assemble below key metrics showing the results of the Global USD Balanced Islamic investment strategy and compare them to their conventional peers.
Past performance is not a guarantee of future performance.
However, we also believe history repeats itself. What is clear is that Islamic portfolios stand equal to their conventional cousins, in many ways superior to them.