Takaful Investment Portfolios

A groundbreaking study of the investment portfolios of takaful companies, their general investment patterns, and their future investments

The Islamic finance industry has witnessed remarkable growth over the last decade, and one of the most successful segments--poised for even greater expansion--is the Islamic insurance (takaful) industry. In Takaful Investment Portfolios, distinguished takaful scholar Abdulrahman Khalil Tolefat explores the investment portfolios of takaful companies in both the GCC countries and Malaysia, the tip of Islamic finance industry. Investigating the trends and patterns of investment of takaful companies, the book looks at shareholders as well as general and family funds to determine where these companies are investing today, and where they are likely to invest in the future.

Presenting new and novel research on the investment patterns of takaful companies, Takaful Investment Portfolios covers the history of the industry and takaful models and how they work, and presents in-depth studies of both their real-world and desired portfolio investments.
* Presents unique new research into the investment portfolios of takaful companies in the GCC and Malaysia
* Examines the gap between desired and actual investment portfolios of takaful companies
* Explores expected areas for future investment

Groundbreaking in its depth, Takaful Investment Portfolios is an unprecedented study of the investments of takaful companies.

Preface ix
Acknowledgments xiii
List of Abbreviations xv
Chapter 1 Introduction 1
Rationale for Researching Investment Portfolio Composition of Takaful Companies 1
Aims and Objectives 4
Scope and Delimitation 5
Research Methodology 6
Overview of the Book 6
Chapter 2 Insurance and Islamic Law: An Introduction to Takaful 9
The Concept of Insurance in Islamic Sources 9
Views of Contemporary Jurists on the Insurance Contract 13
Arguments Regarding the Validity or Invalidity of Commercial Insurance 15
Conclusion 27
Notes 28
Chapter 3 Takaful Models and Implementations, Trends, and Developments 31
Takaful Undertaking Principles 31
Islamic Insurance Operational Models 32
Differences Between Takaful and Other Forms of Insurance 44
Trends and Developments in the Takaful Industry 45
Conclusion 52
Notes 53
Chapter 4 Research Methodology 55
Methodological Shortcomings of the Literature 56
Research Strategy 56
Research Questions, Objectives, and Hypotheses 57
Research Design 58
Sampling Strategy 59
Research Methods 61
Quantitative Data Analysis 68
Qualitative Data Analysis 70
Conclusion 70
Notes 71
Chapter 5 Exploring Investment Behaviours and Investment Portfolios of Takaful
Operating Companies in the GCC and Malaysia 73
Total Investment Portfolio of Takaful Operating Companies for All Funds 74
Investments in Shareholders' Fund 75
General Fund 86
Family Funds 94
Conclusion 97
Chapter 6 Locating the Differences Between Actual and Desired Investment Portfolios 99
Shareholders' Fund 101
General Fund 106
Family Funds 111
Conclusion 114
Chapter 7 Contextualising the Findings 117
Overall Portfolio Compositions 117
Investment Accounts 125
Investment in Sukuks 129
Investment in Equities 134
Return on Investment (ROI) 138
Mutual Funds/Unit Trusts 140
Real Estate Investments 141
Conclusion 142
Notes 143
Chapter 8 Conclusion and Recommendations 145
Main Findings of the Study 145
Recommendations of the Study 149
Research Limitations 153
Recommendations for Future Research 153
Conclusion 154
Note 155
Appendix A 157
Appendix B 163
Appendix C 215
Bibliography 217
About the Authors 223
Index 225