Sydney: Hejaz Financial Services has today launched two of its leading funds – the Hejaz Equities Fund (ASX:ISLM) and Hejaz Property Fund (ASX:HJZP)— as Exchange Traded Funds (ETFs) on the Australian Securities Exchange (ASX). Units in the two funds commenced trading on the ASX at midday today.

 In an Australian first, Hejaz is providing Muslims and other ethically conscious investors greater access to two of its Sharia-compliant funds in a popular investing format they are already familiar with. Both Funds refrain from investing in activities which are considered to be morally or socially injurious and in companies which primarily operate in such sectors (i.e. tobacco, gambling, adult entertainment, conventional banking and insurance, pork, and weapons).

The Hejaz Equities Fund (ASX:ISLM) is a growth fund with exposure to a diversified global equities portfolio of Sharia Compliant investments. It invests primarily in developed markets around the world, primarily Europe, North America and selected Asian markets, including Australia. The Hejaz Equities Fund aims to achieve a total return equal to movements in the MSCI World Islamic Index Benchmark. The Fund targets a 15% p.a. return net of fees and currently has $70m under management.

The Hejaz Property Fund (ASX:HJZP) applies an ethical overlay to invest in  globally listed REITs. Like the Equities Fund, Sharia investment principles are applied as negative screens to exclude investment assets based upon the nature of their business activities and their failure to meet financial thresholds relating to debt, liquidity, and income. The Fund targets a 10% p.a. return net of fees and is benchmarked to the MSCI World REITs Index. The Hejaz Property Fund currently has $10m under management.  

The two funds are aimed at creating a positive impact and building wealth for members without negatively impacting society.

Muzzammil Dhedhy, COO at Hejaz Financial Services commented on the launch: “While Islamic ETF products are widely available overseas, this will be the first time Islamic Finance products are listed on the ASX. By making it simple for retail investors to access our award-winning funds, we are taking an important step towards our goal of providing high-performing, ethical financial products to Australian Muslims. Hejaz is also planning to launch a third ETF before the end of the year, providing retail investors with greater access to the Hejaz Income Fund, Australia’s highest returning Islamic Income Fund.”

Equity Trustees has been appointed Responsible Entity (RE) for the two ETFs, while Macquarie Securities Limited is involved in the launch as the market making agent.

Russell Beasley, Executive General Manager, Corporate Trustee Services at Equity Trustees said:

“We are excited to be involved in the creation of Australia’s first Sharia Compliant ETFs and look forward to applying our funds governance expertise to both. We congratulate Hejaz Financial Services on delivering this milestone, and for their initiative in servicing an important, growing segment of the market.”

Hejaz’s total funds under management (FUM) stand at over $285 million, as at July 1 2022.