Islamic Investment Management: Analysis and Performance

Running Head: ISLAMIC FINANCE
ISLAMIC FINANCE
Name of the Student
Name of the University
Author Note

1ISLAMIC FINANCE
Executive Summary
The aim of this report is to do the analysis on the Islamic Investment Management. It is
concerned with the professionally management of the investments of the securities which is
Sharia’a-complaint. Under this report, discussion will be based on the introduction of the
Islamic finance and Islamic finance investments. In addition, discussion will also be based on
the performance of the Islamic fund, liquidity strategy, origination and distribution
challenges, components of the Islamic Mutual fund structure and role of Sharia’s board in
relation with the conventional finance system. Therefore, it has been concluded that Islamic
Investment management has experienced the growth rate and it has become the permanent
feature of global financial system.

2ISLAMIC FINANCE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Islamic Finance......................................................................................................................3
Islamic Investment.................................................................................................................4
Performance of the Islamic Fund.........................................................................................10
Strategy of Liquidity............................................................................................................10
Origination and Distribution challenges..............................................................................11
Components of the Islamic Mutual fund structure...............................................................12
Role of Sharia’a Board.........................................................................................................12
Conclusion................................................................................................................................12
Reference..................................................................................................................................13

3ISLAMIC FINANCE
Introduction
The aim of this report is to understand the Islamic investment management. It is the
concise guide of the important characteristic and working of the Islamic investment system
and fund management in relation with the conventional management system of investments.
It is concerned with the offering of the holistic approach to the Islamic asset management
with the end-to-end process in accordance with the principles of the Sharia’a. For the
discussion of this topic, discussion will be done on the Islamic investments, its importance,
and their performance. In addition, liquidity strategy, origination and distribution challenges,
components of the Islamic mutual fund structure and role of Sharia’a board in relation with
Islamic investment management will be discussed.
This report will provide the analysis on the theory behind the concept and process of
Islamic Investment Management. The industry perseverance has resulted in the growth of
innovative financial instrument of Islamic, which is in accordance with the Sharia principles.
Discussion
Islamic Finance
Islamic finance is concerned with that banking system that is non-interest banking and
the principles of it is based on Islamic and Sharia law, guided by economics of Islamic. The
Islamic banking has been originated from the beginning of Islam at seventh century. The
Prophet Muhammad had used many principles of the contemporary Islamic banking
(Kammer et al.). The business activities during the Middle Ages in the Muslims world were
relied on the principles of the Islamic banking. These principles provided the basis for the
principles of the western banking that was throughout spread in the Mediterranean, Spain and
the Baltic states. Islamic banking has been reappeared in the modern era from the year 1960
to 1970 (Kammer et al.).