Islamic fund receives first rating
Hejaz Financial Services has become the first firm to have an Islamic managed fund rated by an Australian ratings agency, as the firm applies for a banking licence.
The Hejaz Global Ethical fund received a 3.75/5 rating by SQM, it was characterised by its Sharia principles and ethical foundations which were based on the fair distribution of income among members of the fund.
It aimed to invest in a diversified portfolio including global and Australian shares, Sharia-compliant income securities, alternatives, property and cash.
SQM commented on the management experience in the fund and described it as being investment-grade quality.
Hejaz chief executive, Hakan Ozyon, said: “The performance of our Global Ethical fund and SQM’s rating show that investing in an ethical way does not mean that performance has to take a hit”.
The firm was currently in the process of applying for a banking licence and had completed discussions with the Australian Prudential Regulation Authority. It expected to submit the final documents for a Restricted Authorised Deposit-Taker Institution (RADI) licence to the regulator within the next month.
According to FE Analytics, the fund returned 13% over one year to 31 August, 2021, versus returns of 9.1% by the mixed asset-moderate sector within the Australian Core Strategies universe.
AUTHOR
Laura Dew
Recommended for you
Outflows have doubled in the property and infrastructure space to $1.3 billion with advisers instead favouring private markets as Morningstar data finds active property funds are struggling to outperform.
Fund manager HMC Capital is seeking to expand fundraising for its private equity vehicle into wholesale platforms now that it has achieved a three-year track record, while scrapping plans for a second fund.
Former Platinum co-founder James Simpson will take up a non-executive role at Income Asset Management as two directors retire.
Bell Financial Group has announced a 44 per cent decline in half-year net profit after tax but record funds under advice as it transitions into a diverse wealth management business.
