• Ainulashikin Marzuki Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia.
  • Anas Ahmad Bani Atta Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia.
  • Andrew Worthington Department of Accounting, Finance and Economic, Griffith University, Nathan, Queensland, 4111, Australia


Background and Purpose: The study examines the effect of fund management companies’ (FMCs) attributes on FMC performance in the four countries with the largest number of Islamic funds from 2007 to 2018.


Methodology: The study uses pooled regression analysis on 70 FMCs, comprising Saudi Arabia (25), Malaysia (20), Indonesia (14) and Pakistan (11). The sample is further divided into FMC with Islamic funds focused (IFFMC) and conventional funds focused (CFFMC).


Findings: Only past flows are insignificantly related to performance. Both proxies for size positively relate to returns, but only in the case of Saudi Arabia. In Pakistan, performance improves with assets under management (AUM), while in Malaysia and Indonesia, an increasing number of funds negatively relate to performance. A relatively high number of better performing funds positively affect FMC and vice versa. Additionally, there are significant differences in the factors determining IFFMC and CFFMC performance, with the number of funds and AUM positively affecting the performance of IFFMC but not CFFMC. Poorly performing funds adversely affect CFFMC but not IFFMC.


Contributions: This study provides useful information for investors using a top-down approach to FMC then fund selection, and for managers in evaluating the impact of factors like FMC scale and scope on performance. The impact of these attributes differs between CFFMCs and IFFMCs which lies in the performance differences commonly observed, at the FMC and fund level.


Keywords: Islamic funds management industries, Islamic mutual fund, fund performance, Islamic finance.


Cite as: Marzuki, A., Bani Atta, A. A., & Worthington, A. (2022). Attributes and performance of fund management companies: Evidence from the largest Shariah-compliant fund markets. Journal of Nusantara Studies, 7(1), 114-141.

Author Biographies

Ainulashikin Marzuki, Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia.

Ainulashikin Marzuki is an associate professor at the Faculty of Economics and Muamalat at the Universiti Sains Islam Malaysia. She holds Bachelor of Accountancy with Honours and Master in Business Administration (MBA) from Universiti Teknologi MARA, and obtained her doctorate from the Griffith University in 2013. Her current research interest are in the fields of Islamic finance, fund management, social responsibility, disclosure and reporting and corporate finance.

Anas Ahmad Bani Atta, Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia.

Anas Ahmad Bani Atta is a Phd student at the Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia. His research interests are in fund management and Islamic finance.

Andrew Worthington, Department of Accounting, Finance and Economic, Griffith University, Nathan, Queensland, 4111, Australia

Andrew Worthington is Professor of Finance at the Department of Accounting, Finance and Economics at the Griffith University. He holds masters’ degrees from the University of New South Wales and the University of New England, and obtained his doctorate from the University of Queensland. His published research includes alternative investments, Islamic finance and household finance.


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