Wafra has emerged as the standout performer in Islamic asset management over the past year, delivering strong growth, exceptional risk-adjusted returns and market-shaping innovation in the global sukuk space. For its differentiated investment strategy, technical sophistication, and commitment to Shariah-compliant asset development, Wafra is a clear standout among international Islamic fund managers.
Wafra’s Global Sukuk Strategy – launched in 2018 – has become a benchmark for quality, consistency and performance in the Islamic fixed income universe. In 2024, the strategy outperformed the Dow Jones Sukuk Total Return Index and its peer group by a comfortable margin. Since inception, the strategy has delivered strong outperformance while maintaining minimal high-yield exposure and a Sharpe ratio that consistently ranks in the top percentile of its category.
A core differentiator is Wafra’s systematic investment approach, which blends machine learning techniques with traditional fixed income analysis. The team has introduced advanced long short-term memory models to enhance time-series forecasting and improve the allocation of capital in its Global Sukuk Strategy. These models, combined with a focus on idiosyncratic risk capture and real-time trade optimisation, have contributed to the durability and efficiency of the strategy’s performance. Notably, Wafra executes a high-turnover model that remains low risk – with less than 3% exposure to non-rated or high-yield names as of early 2025.
“We’re able to produce strong results in a differentiated manner without having to carry excess risk,” says Ron Solenske, director and co-portfolio manager at Wafra. “We’re very intentional in our opportunity selection as a result of the implementation of our quantitative strategies.”
Wafra is not only delivering value for stakeholders but also expanding access to Islamic investment strategies globally
The firm’s Shariah-compliance framework is equally robust. Wafra retains a dedicated Shariah board, which provides strategic oversight and approvals. A formal annual Shariah audit is also conducted.
Beyond performance, Wafra is a key liquidity provider in the sukuk market. The firm’s average sukuk trading volume nearly tripled between 2021 and 2024, with Wafra ranked second in terms of trading volume last year on a leading global platform. It also played a significant role in the successful issuance of over $82 billion in sukuk across 14 countries in 2024. Wafra is an active participant in both primary and secondary markets, including inaugural sukuk issuances, reinforcing its ability to support new issuers and expand the investable universe.
Wafra’s ESG approach to evaluating assets is guided by a clear emphasis on governance, which it considers the most predictive of long-term financial performance. The firm supplements third-party research with in-house analysis, identifying issuers with opaque disclosures or material related-party risks.
With a significant increase in Shariah-compliant assets under management as of September 2024, Wafra is not only delivering value for stakeholders but also expanding access to Islamic investment strategies globally. Its blend of innovation, risk discipline and liquidity leadership sets a new standard for what Islamic fund management can achieve.
