The 27four Shari'ah Income Fund delivered a return of 2.02% in the last quarter of 2024, closely aligning with its benchmark return of 2.01%. The fund benefited from its exposure to gold which gained 7.92% during the quarter as well as strong results from the offshore sukuk manager, Franklin Templeton Global Sukuk Fund (+7.24%).

However, gains were partially offset by the underperformance of Shari'ah Protector Plus instruments, which came under pressure due to a sharp sell-off in resources a significant component of the underlying investments in the reference benchmark of the Shari'ah Protector Plus.

In November 2024, the South African Reserve Bank reduced interest rates by 25 basis points to 7.75%, marking the lowest borrowing costs since April 2023. Despite this rate cut, short-term yields are expected to remain favourable for income-focused funds. The fund continues to adhere to its policy objective.