As global sukuk markets continue to mature, the demands placed on Islamic asset managers are changing. Institutional investors increasingly require strategies that combine strict Shariah compliance with the sophistication, risk management and performance consistency expected from conventional global fixed income portfolios.
Wafra has distinguished itself by demonstrating that these objectives are not mutually exclusive. Through a combination of quantitative investment techniques, disciplined portfolio construction and deep expertise in Islamic finance, the firm has built one of the industry’s most differentiated global sukuk platforms.
Founded in 1985, Wafra manages $29 billion in assets globally and has developed a specialist investment model focused on serving the requirements of long-term asset owners. Within this platform, its Shariah-compliant assets under management reached $4.84 billion as of the third quarter of 2025, representing 17% of total assets, compared with $4.6 billion at the end of 2024.
The strategy addresses the need for a systematic, scalable and institutionally robust approach to global sukuk investing
Elias Scheker Da Silva
At the centre of Wafra’s Islamic investment proposition is the Wafra Global Sukuk Strategy, which provides investors with access to a diversified portfolio of Shariah-compliant fixed income securities across sovereign, government-related, corporate and supranational issuers.
“The strategy addresses the need for a systematic, scalable and institutionally robust approach to global sukuk investing,” says Elias Scheker Da Silva, director at Wafra. “We have developed a solution that seeks to provide investors with a disciplined and durable framework capable of delivering consistent risk-adjusted outperformance while adhering to Shariah principles.”
Outperformance alongside rigour
The strategy is built around a systematic investment process designed to generate strong risk-adjusted returns through a combination of duration management, allocation decisions and sukuk selection. Wafra combines quantitative allocation and selection frameworks with traditional fixed income analysis and fundamental review of issuer credit trends, using data-driven tools – including machine-learning-based models – to identify valuation opportunities, improve time-series forecasting and optimise portfolio positioning.
This approach produced strong results during a challenging market environment in 2025. The Wafra Global Sukuk Strategy generated a return of 8.15%, outperforming its benchmark and its peer group.
Demonstrated success in delivering excess returns while maintaining a conservative risk profile has reinforced the strategy’s value proposition within the Islamic investment landscape
Ron Solenske
Importantly, this performance was achieved while maintaining a conservative investment approach. The strategy targets a minimum 90% allocation to investment-grade securities, while exposure to lower-rated segments is tightly controlled. As of end-2025, exposure to non-rated and higher-risk segments remained limited, with securities rated below BB- or unrated capped at 5% of the portfolio
“Demonstrated success in delivering excess returns while maintaining a conservative risk profile has reinforced the strategy’s value proposition within the Islamic investment landscape,” says Ron Solenske, director at Wafra. “The alignment of technological innovation and Shariah principles in a quantitative, systematic and research-driven investment process supports repeatable decision-making and effective volatility management.”
Managing uncertainty
That discipline proved particularly important during a period shaped by persistent inflation pressures, monetary policy uncertainty and geopolitical disruption. The investment team actively adjusted duration and curve exposures, emphasised high-quality issuers amid historically tight credit spreads, and enhanced its systematic investment framework through active stress testing and ongoing model refinement to account for changing market conditions.
Beyond investment performance, Wafra has played an active role in supporting the development of global Islamic capital markets. While the firm does not originate or underwrite sukuk transactions, its scale and trading activity have contributed to market liquidity, particularly in an asset class where secondary-market depth remains an important challenge.
In 2025, Wafra participated in approximately 71 sukuk issuances across 14 countries, representing total issuance volumes of more than $124.5 billion. Its activity across primary and secondary markets, including inaugural sukuk issuances, has supported broader market participation, improved price discovery and helped expand access for Shariah-compliant investors.
Strong governance has been another defining feature of the platform. Wafra works with an independent Shariah board of leading Islamic finance scholars, which reviews investment guidelines and oversees compliance with Islamic principles. The chairman of the board conducts an annual audit of investment compliance, while Shariah guidelines are integrated into Wafra’s internal risk management and compliance systems.
The investment platform is supported by an experienced fixed income team with an average tenure of 11 years at Wafra. The team includes Solenske and Scheker Da Silva, alongside associate Stephanie Yang, combining institutional fixed income expertise with systematic investment capabilities.
As Islamic capital markets become increasingly global and institutional, Wafra’s contribution lies in bringing greater sophistication, liquidity and consistency to Shariah-compliant investing. Its ability to combine technology, risk discipline and Islamic governance has helped establish a model for the next stage of development in global sukuk asset management.
