Global Islamic Fund Assets Level at US$ 52 billion in 2009: Ernst & Young
The 4th annual Ernst & Young Islamic Funds & Investment Report (IFIR 2010) released at the World Islamic Funds and Capital Markets Conference states that global Islamic fund assets stagnated at US$ 52.3 Bn in 2009, remaining at almost the same level as the US$ 51.4 Bn posted in 2008.
In contrast, the global conventional mutual fund assets under management (AuM) exhibited signs of recovery from their lows of US$ 19 trillion in 2008, reaching $22 trillion in 2009.
According to Sameer Abdi, Middle East Head of Ernst & Young’s Islamic Financial Services Group, “This trend is reflective of a distinct shift in investors’ preferences, and requires Islamic fund managers to adapt their strategies and operating models accordingly to meet the new levels of expectations.”
The research reveals that only 29 new Islamic funds were launched in 2009, almost offsetting the 27 Islamic funds that were liquidated during the same period. New Islamic funds launched were at their highest number ever at 173 in 2007. Since then, this number has declined dramatically.
