Hejaz Financial Services announced its flagship fund, the Global Ethical Fund, has outperformed Australia’s other Islamic investment funds during FY19.
It achieved gross returns of 6.82% per annum, while Crescent Wealth generated 4.56% per annum.
The Sharia-compliant fund invests across multiple asset classes including domestic and global equities, property, infrastructure and fixed income assets.
In line with Sharia principles, its portfolio excludes banks, pig products, alcohol, media, weaponry, tobacco and gambling, making the screening process more stringent than traditional ESG investments, it said.
Companies it invests in must have debt-to-market-cap ratio debt below 30%, and tangible assets above 50%.
Senior portfolio manager and chief executive Hakan Ozyon said the strong results were due to the fund’s global exposure and the hyperactive approach to portfolio management.
More than a quarter of the fund’s investments are in overseas markets, with about 55% of those in the US, predominantly in IT, healthcare and FMCG sectors, he said.
“Our highly active approach matches economic cycles to geographies, and is tailored for each market and each sector.”
Ozyon projected Hejaz Financial Services will expand despite a global volatile market, expecting funds under management – currently at $60 million – to double in the next 12 months.
“Our track record of strong results, growing investor interest, and increasing market demand for Islamic investment products – reflective of Muslim population growth in Australia – gives us confidence that we will meet our growth targets for the new fiscal year.”
Hejaz also provides Islamic compliant financial advice, accounting, estate planning and tax services.
The company is set to expand their offering in the next 12 months to include real estate, insurance and legal services.
According to a report by the Malaysia Islamic International Financial Centre, total global Islamic assets under management were US$70.8 billion at the end of the first quarter of 2017, up from US$47 billion in 2008.