Two Sharia-compliant ETFs - the Hejaz Equities Fund and the Hejaz Property Fund - have listed on the Australian Stock Exchange. The ETFs are listed versions of two managed funds launched earlier this year by Islamic investment manager, Hejaz Asset Management.
The equity fund aims to track the MSCI World Islamic Index (hedged into AUD), while the property ETF seeks to replicate the MSCI World REITs Index (hedged into AUD) via exposure to a diversified portfolio of Sharia compliant Real Estate Investment Trust (REIT) investments.
Hejaz Asset Management chief operating officer, Muzzammil Dhedhy, said that although Islamic ETF products are widely available overseas, these two ETFs are the first Islamic Finance products to be 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," he said.
The fund manager hopes the ETFs will increase accessibility to 'positive impact' benefits above and beyond returns by incorporating ethical foundations based on achieving prosperity.
Equity Trustees has been appointed responsible entity for the two ETFs.
"Equity Trustees was instrumental in helping us to set up the two managed funds for Australian investors earlier this year. Their expertise in funds governance and the preparation and issuing of compliant product disclosure statements meant they were perfectly placed to help us list them," Dhedhy said.