The Futuregrowth Albaraka Equity Fund has almost doubled assets under management in the past year, climbing to more than R1bn from R546m a year ago.
The Shariah compliant fund, managed by Futuregrowth Asset Management, gave a return of 34.6% in the 12 months to 31 March 2007. The JSE All Share Index performed at 37.7% for the same period. Over five years, the fund returned 31.5% beating the JSE All Share Index by 8% per year.
The fund focuses on low risk, undervalued companies and is committed to Islamic economic principles. It is managed in strict accordance with Shari'ah Law and does not invest in shares that have an association with alcohol, gambling, non-halaal foodstuffs or interest-bearing instruments.
Futuregrowth offers the fund in partnership with Albaraka Bank, pioneers of Islamic banking in South Africa and Channel Islam International, an international media brand that reaches Muslims across the world.
The Fund is unique in that it has a local and international Shari'ah supervisory board chaired by world renowned international scholar and former judge Shaykh Muhammad Taqi Usmani.
Portfolio manager Saliegh Salaam, who invests in the fund alongside Futuregrowth clients, said that the fund had become increasingly popular among Muslim investors, with significant inflows seen into the fund over the last two years.
"We aim to stick to our winning formulae, focusing on capital preservation, investing in quality undervalued companies and ensuring the continued sharia compliance of the fund," he said.
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