Halal Income Funds in South Africa: Camissa vs Old Mutual Albaraka vs Oasis vs 27four

The most common practical question in South African halal finance is also the hardest: where do I put money that needs to stay stable and earn something, without touching interest? Conventional investors use money market and income funds stuffed with bank paper and bonds. Muslims could not, until a genuine halal income category emerged, built on sukuk, Islamic placements and screened property. Four funds now compete for that money, and the differences between them are worth real rand.

The contenders

• Camissa Islamic High Yield Fund: launched 12 March 2019, R2.73 billion, 0.58% TER (the cheapest actively managed halal fund in SA), benchmarked to STeFI, with a strong sukuk bias, historically over 80% of the book.
• Old Mutual Albaraka Income Fund: launched 31 March 2020, R2.0 billion, 0.59% TER on B1 (0.71% A), STeFI Composite benchmark, quarterly distributions, trailing yield around 6.58% on B1 in early 2026.
• Oasis Crescent Income Fund: launched 31 March 2010, R3.31 billion, 0.70% TER, CPI benchmark, 6.45% trailing twelve-month distribution yield, minimums R33,000 lump sum or R2,750 monthly.
• 27four Shari'ah Income Prescient Fund: launched 1 October 2024, targeting 110% of STeFI with quarterly distributions; 7.95% over its first year to August 2026, but no published TER history yet.

What these funds actually hold

The engine of the category is the sovereign sukuk programme. South Africa issued a USD 500 million international Ijara sukuk in September 2014 and, crucially, a R20.4 billion domestic rand sukuk in November 2023 across four tranches maturing 2028 to 2035. Both were institutional issues; there is no retail purchase channel and no Islamic variant of RSA Retail Savings Bonds. These funds are how ordinary South Africans get exposure. Camissa's team publicly described buying longer-dated government rand sukuk at profit rates around 13.5% in the pre-election yield spike of 2024, one of the best documented trades in SA halal investing. Alongside sukuk sit Islamic bank placements, Murabaha-structure instruments, screened listed property and dividend payers. The full background is in our sukuk in South Africa guide.

The critical caveat: these are not savings accounts

A conventional money market fund holds short paper and barely moves. A sukuk-biased income fund carries duration and sovereign credit exposure, so its unit price can dip when rates move against it. That risk is precisely what generated the category's strong recent yields, and it is why none of these funds is a substitute for an Islamic bank deposit for money you need next month. For genuinely short horizons, a Mudarabah deposit at an Islamic bank (see our bank accounts data) is the better tool; these funds are for the defensive sleeve of a portfolio, income in retirement, or cash you can leave for a year or more. Note also that yields across the category will compress as the rate-cutting cycle feeds through profit rates: the 13.5% paper that powered 2024 and 2025 distributions matures and gets replaced with cheaper issues.

Head to head

On cost, Camissa (0.58%) and Old Mutual Albaraka B1 (0.59%) are effectively tied, with Oasis at 0.70% close behind. On governance, Old Mutual Albaraka leads outright: named scholars, quarterly meetings, external Shariah audit, published annual AAOIFI certificate, purification disclosed per distribution. Camissa's board is named on every document but certificates are not published; Oasis publishes signed certificates from its heavyweight global board. On accessibility, Camissa and Albaraka open at R5,000 and R10,000 lump sums respectively (both take R500 monthly debit orders), while Oasis demands R33,000 direct, the highest entry ticket in the category, though platform and tax-free-account routes soften it. On track record through a full cycle, Oasis's 16 years stand alone.

The 27four fund is the wildcard: its 110% of STeFI target is the most ambitious in the category and the multi-manager construction is sound, but with under two years of live history and no published fee schedule, it is the diversifier's choice rather than the default. Platform performance tables also mix in pre-launch model data, so treat backfilled numbers cautiously.

Verdict

For most investors the shortlist is two funds. Buy the Camissa Islamic High Yield Fund if you want the best yield-to-cost ratio in the market and the deepest sukuk book; it is the smartest product in SA halal finance right now. Buy the Old Mutual Albaraka Income Fund if audited, certificate-published governance is worth one basis point and a slightly more conservative mandate to you. Oasis earns its place for investors already in its ecosystem or using its tax-free account. All four fund providers are graded on our Halal Money Index, and if this money is destined for retirement, read the Regulation 28 guide first, because all the incumbents here are Reg 28 eligible building blocks.

Quick answers

Are halal income fund returns guaranteed?

No. These funds hold sukuk, Islamic placements and screened property whose prices and profit distributions move; they carry more risk than a bank deposit and no compliant guaranteed-return instrument exists in South Africa. Their job is competitive halal income with modest volatility, not capital certainty.

Which income fund has the lowest entry point?

Camissa Islamic High Yield at R5,000 (and 0.58%, the cheapest fee in the category). Oasis Crescent Income requires R33,000 direct, the highest minimum, though tax-free-account and platform routes lower it. Old Mutual Albaraka's B1 class at 0.59% needs platform access.