FNB ISLAMIC BALANCED FUND OFFERS THE IDEAL SOLUTION TO DELIVER GROWTH AS RETURNS ON TERM DEPOSITS ARE EXPECTED TO DECLINE
As profit rates on term deposits are set to decline in the coming months, many investors in South Africa find themselves facing a conundrum. While Islamic Banking deposits, have offered favourable returns as market rates remained high, the anticipated decrease in rates may lead to lower growth in these accounts. With limited Shari’ah compliant investment offerings in the market, FNB is well positioned with a solution in the form of the FNB Islamic Balanced Fund.
Established in January 2021, the FNB Islamic Balanced Fund has quickly established itself as a reliable investment option with a three-year track record. The fund’s objective is to deliver long-term positive returns and growth through a balanced and diversified approach, within a predetermined risk budget. This makes the fund an attractive risk-managed option for those looking to maintain and grow their investments.
According to FNB Multi Management portfolio manager Nazmiya Ebrahim, with a call account you have a known outcome but limited upside. Although the outcome with a unit trust is not known it has the ability to outperform significantly. “Our FNB Islamic Balanced Fund is designed to provide investors with a balanced, multi-asset portfolio that is diversified, liquid and convenient,” she says, “ensuring they can maximise their potential returns even in a lower-interest rate environment.”
The fund is characterised by a moderate risk profile and follows a multi-managed approach. Two of South Africa’s most well-known asset managers of Shari’ah compliant mandates have been appointed to manage the assets; Camissa Asset Management and Sentio Capital. The manager selection is done by an experienced multi manager team at FNB, ensuring effective diversification and a smooth return profile – which is particularly valuable during volatile market periods.
The FNB Islamic Balanced Fund is managed to be compliant with Regulation 28 of the Pension Fund Act, with additional checks and balances done by the First Rand Group Shari’ah Advisory Committee.
Ebrahim points to the convenience and ease of accessibility of the investment. “The fund strips out all non-permissible income (NPI) at the fund level, she explains, “and this convenience ensures that investors can trust their portfolio to remain Shari’ah-compliant without additional effort.”
“Whether you’re including it in a personal investment portfolio, a retirement portfolio, or as part of a tax-free investment strategy, the fund is designed to align with Shari’ah principles while offering strong governance, transparency, and ethical investments.”
The FNB Islamic Balanced Fund is not exclusive to those who want to invest in line with their faith. The ethical investment approach, which excludes stocks related to alcohol, tobacco, gambling, and other non-compliant industries, makes it an ideal choice for anyone in South Africa seeking a reliable investment or a fund that aligns with their personal values.
Investing in the FNB Islamic Balanced Fund is a straightforward process. You can invest via the FNB Investor Services Platform, directly on the FNB App, or speak to your Private Adviser for more personalised assistance.
“In today’s shifting financial landscape, the FNB Islamic Balanced Fund offers more than just an investment; it’s a gateway to ethical, Shariah-compliant growth,” Ebrahim emphasises. “As interest rates decline, our fund stands ready to help investors not just preserve the growth they’ve achieved to date, but also potentially grow their wealth, all while staying true to their values.”
For more information on this fund, please visit our website on https://www.fnb.co.za/invest/growth-fund-unit-fund.html or contact our client service suite on 087 346 8378.
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