Nisba Compass | Strong fortnight, uncertain short term
Salam,
Welcome to this edition of the Nisba Compass.
Every two weeks, we break down what’s happening in markets and what it means from a halal investing perspective.
Let’s begin.
Fund Performance Past Month
Emerging Markets led performance this month, with several Islamic EM ETFs delivering double-digit returns. Japan and Shariah-compliant global REIT exposure also performed strongly.
At the other end, precious metals and crypto-related products saw notable pullbacks, with silver and bitcoin ETPs experiencing significant volatility.
As always, short-term performance should be viewed in the context of long-term allocation and risk appetite.
| Fund | Ticker | 1M (GBP) |
|---|---|---|
| HSBC MSCI Emerging Markets Islamic Screened UCITS ETF | HIES | +16.11% |
| HSBC MSCI Emerging Markets Islamic Screened UCITS ETF | HIEM | +13.08% |
| iShares MSCI EM Islamic UCITS ETF | ISDE | +11.83% |
| HSBC MSCI Japan Islamic Screened UCITS ETF | HIJS | +11.01% |
| HSBC FTSE EPRA Nareit Developed Islamic UCITS ETF | HINS | +8.78% |
| HSBC MSCI Japan Islamic Screened UCITS ETF | HIJP | +8.45% |
| HSBC FTSE EPRA Nareit Developed Islamic UCITS ETF | HIND | +6.30% |
| HSBC MSCI Europe Islamic Screened UCITS ETF | HIPS | +4.89% |
| Royal Mint Responsibly Sourced Physical Gold ETC | RMAP | +3.96% |
| iShares Physical Gold ETC | SGLN | +3.75% |
| HSBC International Sukuk UCITS ETF | HBKS | +2.59% |
| iShares MSCI World Islamic UCITS ETF | ISWD | +2.50% |
| HSBC MSCI World Islamic Screened UCITS ETF | HIWS | +2.48% |
| HSBC International Funds ICAV Shariah Multi Asset Fund | HSGSBCG | +2.39% |
| OGM Oasis Crescent International Income Fund | OCGIGFA | +2.35% |
| Schroder Islamic International Equity Fund | SCIGEQG | +2.19% |
| SP Funds S&P Global Technology ETF | SPTE | +1.89% |
| HSBC MSCI Europe Islamic Screened UCITS ETF | HIEU | +1.69% |
| Royal Mint Responsibly Sourced Physical Gold ETC | RMAU | +1.38% |
| iShares MSCI USA Islamic UCITS ETF | ISUS | +1.20% |
| Saturna Al-Kawthar International Focused Equity UCITS ETF | AMAL | +0.55% |
| iShares MSCI World Islamic UCITS ETF | ISDW | +0.32% |
| HSBC MSCI USA Islamic Screened UCITS ETF | HIUS | +0.14% |
| Franklin International Sukuk Fund | FTGSIAU | -0.10% |
| HSBC MSCI World Islamic Screened UCITS ETF | HIWO | -0.27% |
| BNP Paribas Islamic Fund Hilal Income | BPIHIPA | -0.29% |
| Invesco Dow Jones Islamic International Developed Markets UCITS ETF | IGDA | -0.41% |
| Franklin International Sukuk Fund | FRFGSWG | -0.45% |
| HSBC Islamic International Equity Index Fund | HSGEIBG | -0.47% |
| SP Funds S&P 500 Sharia Industry Exclusions ETF | SPUS | -1.27% |
| HSBC International Sukuk UCITS ETF | HBKU | -1.37% |
| iShares $ Sukuk UCITS ETF | SKUK | -1.45% |
| HSBC MSCI USA Islamic Screened UCITS ETF | HIUA | -2.50% |
| HSBC Islamic International Equity Index Fund | HSBAGIC | -3.01% |
| WisdomTree Physical Precious Metals | PHPP | -7.07% |
| WisdomTree Physical Palladium | PPDX | -14.27% |
| WisdomTree Physical Platinum | PHPT | -17.37% |
| Invesco Physical Silver ETC | SLVP | -18.98% |
| Invesco Physical Silver ETC | SSLV | -20.76% |
| iShares Bitcoin ETP | IB1T.L | -21.63% |
Islamic Investing Platforms - Updates
Nester
All investments reported by the Nisba community are paying as expected.
Bayuti
No reported issues. Payments remain on time.
Wahed
No reported issues from the community.
Qardus
Ongoing repayment issues across multiple investments. Caution advised. We are monitoring closely.
Acorn
Currently listed by the FCA as an unauthorised firm (Dec 2025). While this may not impact historical investors, heightened caution is warranted.
FCA notice available via the FCA register. https://register.fca.org.uk/s/unauthorised-firm?id=001Sk00000tjerJIAQ
Recent Bristol Zoo development article has also brought additional scrutiny.
https://www.bristolpost.co.uk/news/bristol-news/bristol-zoo-clifton-site-developers-10824873
No other known issues.
Cur8 Capital
The Rasmala VLF property fund is under review due to underperformance.
Reclassified as the IFG Community Impact Fund following Zakat compliance concerns.
No other known issues.
Asset Class Performance & Expectations
Commodities
Significant volatility recently. This asset class can move aggressively in both directions. Time horizon and position sizing remain critical.
Equities
Emerging markets have outperformed. US equities have faced pressure, particularly in certain AI and technology segments.
Sukuk
Relatively stable overall. FX volatility remains elevated. Currency exposure should be understood carefully, particularly in non-hedged funds.
Property
While there are pockets of concern in parts of the UK property market, diversified Shariah-compliant REIT exposure performed strongly last month.
Savings Accounts
Rates remain steady but are expected by some to trend lower. Fixed-term options may become increasingly relevant depending on rate direction.
Personal Finance News
• Offa has launched Shariah-compliant home purchase plans with competitive positioning in the market.
https://offa.co.uk/home-purchase-plan/
• HMRC has contacted platforms regarding unreported dividend income. Dividend allowance remains £500 per person per tax year. ISA dividends remain tax-free. https://citywire.com/new-model-adviser/news/hmrc-contacts-platforms-over-clients-unreported-dividend-income/a2483724
• The Energy Price Cap is expected to fall in April 2026. Individual impact will vary. https://www.moneysavingexpert.com/news/2026/02/martin-lewis-energy-price-cap-fall-april/
Black Swans Events
These are not predictions, but risk factors worth being aware of:
Middle East Tensions
Escalation risk remains. Historically, geopolitical conflict tends to pressure equities while supporting oil and commodity prices.
AI Acceleration
Rapid advancement may create both extreme winners and structural losers across sectors.
Crypto Volatility
The sector remains highly volatile. Contagion risk cannot be dismissed if sharp declines occur.
Educational Focus - Inheritance Tax
Inheritance Tax (IHT) is 40% on estates above ÂŁ325,000.
This can rise to ÂŁ500,000 when passing a main residence to direct descendants.
For married couples, combined allowances can reach ÂŁ1,000,000.
Gifts fall outside the estate after 7 years, meaning early planning is often more effective than last-minute action.
Assets can pass between spouses without IHT. Given differing life expectancies, sequencing can matter. (e.g. it may be better for the woman to gift to kids as opposed to the husband)
Estate planning is complex and highly personal. Professional advice may be appropriate where estates exceed thresholds.
Islamic Reflection
At the beginning of Ramadan, many of us intend to complete the entire Qur’an. It is a noble goal, yet for some, the scale of it can feel overwhelming. When something feels too big, we sometimes delay starting altogether.
Recently, someone shared a simple approach: instead of focusing on finishing the whole Qur’an, begin with one surah. For example, commit to completing Surah Al-Baqarah. Choose a specific time each day and a specific place where you will read. By narrowing the focus and attaching it to a routine, the goal becomes clearer and more achievable.
There is a parallel here with investing. Goals such as building wealth, preparing for retirement, or securing your children’s future can feel abstract and distant. When the objective is too broad, it can lead to hesitation.
Breaking the journey into structured steps changes everything. Build an emergency fund. Define your goals. Understand your risk. Progress becomes manageable, and consistency replaces overwhelm.
Often, success is not about ambition alone. It is about structure, clarity, and steady action over time.
Compass Reflection
Thank you for reading.
As ever with investing, one of the most powerful things you can do is make a plan and stick to it. Monthly market movements can be interesting to observe, but they rarely require immediate action.
Over the past few months, my own commodities allocation rose beyond its intended weighting due to strong performance. Rather than reacting emotionally, I trimmed it back to bring the portfolio back in line with its original asset allocation. Rebalancing in this way is not exciting, but it is disciplined. And discipline is often what drives long-term results.
Staying aligned with your plan matters more than chasing what performed best last month.
If there is anything you would like to see included in future Compass editions, do let us know. If you have any questions, you can reply to this email or use the WhatsApp chat.
We’ll be back in two weeks, inshaAllah.
Ahmad & Adel
Nisba
This update is for educational purposes only and does not constitute financial advice. Investments can go down as well as up.
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