Islamic stock funds in Sri Lanka, Thailand and Pakistan provided the biggest returns among global counterparts investing in Shariah-compliant securities as accelerating economic growth pushed shares higher.
Namal Amana Equity Fund, based in Sri Lanka, rose 71 percent in the last 12 months, beating all the other 299 funds tracked by Bloomberg. MFC Islamic Long Term Equity in Thailand increased 55 percent and Al-Meezan Mutual Fund of Pakistan gained 54 percent in the period.
Investor confidence is improving as Sri Lanka emerged from a 26-year civil war, Thailand prepared to lift a state of emergency in Bangkok and Pakistan’s government predicted the fastest pace of economic growth in three years. Sri Lanka and Thailand have yet to sell bonds that comply with the religion’s ban on interest, limiting investment options for Muslims in those countries. Continue reading