San Francisco & Sydney – Hejaz Financial Services (“Hejaz FS”) has licensed the IdealRatings Equity Screening solution to act as the stock screening service provider for its first Shariah-compliant, Australian fund, named Global Ethical Fund. IdealRatings will perform the screening of market data for Shariah compliance, which will assist with the construction of the investment universe and ongoing compliance with Islamic principles in accordance with the AAOIFI guidelines.

IdealRatings is incorporated in San Francisco and is a global leader in screening market data solutions for Faith-based, Ethical, ESG/SRI and capital market products for the Asset Management industry. It provides various solutions to global and leading asset management companies by providing them with accurate, up-to-date market data accompanied by the state of the art solution platform.

IdealRatings solution was selected since it provided as a single solution to the selection of Equities and REITs for Shariah compliance. Hejaz FS will be able to select the Australian and Developed Market equities which pass the AAOIFI rulebook for shariah compliance.  Hejaz FS intends to rollout a portfolio strategy solution for its clients and this Shariah fund fits into this strategy.

Global Ethical Fund’s investment approach is to research, screen, and then select quality investments, across multiple sectors including Australian equities, international equities, REITs, alternative assets, compliant bonds (Sukuk) and Islamic Term Deposits.

The Fund applies a rigorous and robust investment approach which encompasses an analysis of both quantitative and quantitative factors. It adopts an adaptive investment style by considering investments in terms of value, quality, and growth, across the short, medium and long term.

Global Ethical Fund applies an ethical over-lay to ensure compliance with Shariah ethical investment principles. These principles create negative screens which exclude investment assets based upon the nature of their business activities and their failure to meet financial thresholds relating to debt, liquidity, and income.

Mr. Mohammad Donia, CEO, IdealRatings Inc., comments: “IdealRatings is pleased to be the selected vendor for Hejaz FS’s first Australian, Shariah-compliant, Global Ethical Fund. We have a good record of providing superior solutions to pension fund providers and the IdealRatings Equity solution has the functionalities to meet the Australian Fund Management requirements.  We are extremely excited to partner with Hejaz FS and we believe that their foray into this space is a great development for the Islamic finance industry in Australia and Pacific countries as they join the league of global asset fund managers providing Shariah-compliant funds, with a portfolio strategy, for their investors.”

Mr. Hakan Ozyon, CEO of Hejaz Financial Services and Chairman of the Islamic Financial Services Council of Australia, comments: “The Australian Muslim community has experienced rapid growth since the 1990s, both in number and wealth. We are very well positioned as pioneers of the Australian Islamic Financial Services Industry, offering a comprehensive suite of financial products and services which are not only Shariah compliant, but deliver on performance and positive outcomes.

The Global Ethical Fund is the first of a series of funds and products that we will be launching in next 24 months. These funds and products will further revolutionise the Australian Islamic Financial Services landscape and cement our position as leaders of this industry. We have our sights firmly set on expansion beyond the Australian shores, into the Asia Pacific and beyond.

We are pleased to partner with a fellow industry leader, IdealRatings, who provide Sharia Ethical Screening to our investments. As the Senior Portfolio manager of Global Ethical Fund, it simplifies my investment selection process and ensures the Sharia compliance of our fund.”