07.11.2012 - The alchemy of Islamic asset allocation
The Islamic asset management industry has experienced remarkable growth over the past decade. From the structuring and launching of funds it has evolved towards a more comprehensive wealth management service. Despite the growth, the industry hasn't focused yet on defining a proper asset allocation framework for Islamic investments. Historically, the Islamic portfolio approach has been mainly "return driven", paying less attention to the risk and liquidity profile. The lack of some clusters may have justified this. Increasing allocation to sukuk, the selected use of Shariah-compliant derivatives and a risk parity approach to asset allocation can represent the base for a more effective Islamic portfolio management...............................................Full Article: Source
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