Participants
Q: The Islamic fund management industry remains in its infancy. Global sharia funds constitute roughly $52.3bn worldwide compared to $22,000bn for conventional funds, according to Ernst & Young. Since more than 70% of fund managers fall below the estimated break-even assets under management (AUM) level of $100m, do you think the key challenge is in growing the size of Islamic funds?
John Sandwick: First, let’s talk about market size. We at Safa Investment Services have what I think is the world’s only database of sharia-compliant mutual funds and exchange-traded funds. Total assets are now nearly $100bn among close to 850 products. Yes, that is miniscule compared to 70,000 conventional funds with $22,000bn, but it’s a start.
