Matin Sharia-Compliant Portfolios Performance

Summary

Matin Digital Wealth came out with some model portfolios for 2025 for conventional and Sharia-compliant portfolio management style. The purpose is not to have them compete but rather understand the benefits of a larger investment universe vs. the benefits of avoiding more leverage and speculative instruments. Both styles share the same view on Global Markets, but the implementation is radically different.

Needless to say (as some expected) Sharia-compliant portfolios significantly surpassed the conventional ones. Today we will only discuss the performance of Sharia Portfolios. The outperformance of Conservative, Balance and Dynamic Portfolios versus their benchmarks was exceptional.

Methodology

The methodology for calculating performance was point to point December 31st, 2024, to January 31st, 2025. We used the latest value available on each security, with some funds having only the 29th of January available.

Portfolio Performance

The Conservative Sharia Portfolio delivered a strong performance in January 2025, achieving a return of 2.84%. This result notably surpassed its benchmark's return of 0.83%, representing a significant outperformance of 2.01%.

The Balanced Sharia Portfolio delivered a compelling performance in January 2025, achieving a return of 4.93%. This outperformed its benchmark, which returned 1.32%, resulting in a substantial outperformance of 3.61%.

The Dynamic Sharia Portfolio demonstrated exceptional performance in January 2025, achieving a remarkable return of 7.20%. This significantly outperformed its benchmark, which posted a return of 2.22%, resulting in a substantial outperformance of 4.98%.

Attribution Analysis

We acknowledge here that the Contributing Factor was Security Selection rather than Asset Allocation.

Sukuks and Equities were correlated, however within the same asset class returns of the DJ Sukuk 1-3 Year Invest Grade Index was positive, where the Franklin Global Sukuk Fund was negative.

The Tech Equity funds or indices were disappointing, but the UAE Domestic Equities and the Infrastructure Funds were stellar in terms of performances.

One outlier was the Sharia Utility Index,

which was stellar, but upon examination the index has only one component in the US. So, we will take our profit, but allocate to a more diversified index: the S&P Global 1200 Sharia Utilities Index.

Conclusion

In summary, January 2025 proved to be a highly successful month for Matin's Sharia-compliant portfolios. The exceptional outperformance across all three risk profiles (Conservative, Balanced, and Dynamic) underscores the effectiveness of our investment strategies and Sharia-compliant approach. While security selection played a significant role in these results, we remain committed to continuous monitoring and refinement of our portfolios to deliver long-term value for our investors. We will continue to provide regular updates on performance and market insights.