What is Hejaz Equities Fund?

The Hejaz Equities Fund (HEF) is a Shariah-compliant, professionally managed investment fund created to align with Islamic principles while striving for competitive returns relative to the global market. HEF is designed to balance Shariah considerations with financial growth, making it an appealing choice for investors looking to achieve their financial goals while adhering to Islamic values.  

With a focus on diversified equities, the fund aims to achieve performance in line with or comparable to the iShares MSCI World Islamic UCITS ETF over a rolling 5 to 7-year timeframe, though past performance is not indicative of future results. 

Key Features of Hejaz Equities Fund 

The Hejaz Equities Fund offers an approach focused on investing by integrating Shariah-compliant and Shariah guidelines with financial performance. Here’s what sets it apart: 

• Islamic Compliance: Adheres to established Shariah-compliant standards to ensure investments align with Islamic values. 
• Diversified Portfolio: The fund provides exposure to a mix of both domestic and international stocks, balancing risk across various sectors and geographic locations. 
• Shariah Screening: All investments undergo rigorous screening processes set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Global Islamic Financial Services (GIFS). 
• Listed on ASX: Available for trading on the Australian Securities Exchange (ASX: ISLM), making it one of the first Islamic ETF in Australia. 

Long-Term Financial Planning in Islam

Islamic finance emphasises long-term wealth building, prudence, and a commitment to responsible financial growth. HEF offers a structured approach to long-term financial planning that integrates Islamic values, ensuring that investments align with an individual’s faith and financial goals. 

Halal Investment Opportunities within Hejaz Equities Fund 

HEF provides a range of halal investment opportunities through carefully selected stocks that comply with Shariah standards. These include industries that benefit society, such as healthcare, technology, and sustainable infrastructure, while avoiding sectors like alcohol, gambling, tobacco, and weapons manufacturing. 

Diversification within a Shariah-Compliant Portfolio

Diversification is critical in Islamic finance, as it allows investors to balance risk across different asset classes and industries. HEF offers a diversified portfolio that spans domestic and international markets, reducing the impact of any single economic downturn and creating a resilient investment strategy. 

Risk Management According to Islamic Finance 

In Islamic finance, managing risk responsibly is a priority. The Hejaz Equities Fund uses a robust investment approach that includes both quantitative and qualitative analysis to ensure sound investments. This careful risk management aligns with the Islamic principle of prudence, minimising unnecessary exposure while aiming for steady growth. 

Financial Independence and Wealth Building in Islam 

Islamic finance promotes financial independence and the responsible stewardship of wealth. By offering a compliant investment option that focuses on sustainable growth, the Hejaz Equities Fund support investors to working towards financial independence while staying true to their Islamic beliefs. 

The Role of Islamic Financial Advisors

Investing in Shariah-compliant funds often requires expert guidance to ensure both compliance and performance. Hejaz Financial Advisers are available to assist clients in aligning their investment strategy with Islamic principles and personal financial goals, providing insights and support for a fulfilling investment journey. 

Historical Performance and Future Projections

The Hejaz Equities Fund leverages an adaptive investment approach, considering value, quality, and growth across the short, medium, and long term. While historical performance shows positive results, the fund’s structure aims to provide competitive returns and foster resilience to market fluctuations. The future outlook is optimistic, subject to market condition remains strong as Islamic finance gains prominence globally, driven by the demand for Shariah investment options. 

Who Manages the Hejaz Equities Fund?

The HEF is managed by a dedicated team of professionals, each contributing specialised expertise: 

1. Responsible Entity – Equity Trustees Ltd
   Manages and governs the fund, ensuring compliance with regulatory standards. 
2. Fund Manager – Hejaz Financial Advisers Pty Limited
   Supports the oversight of investments and promotes the fund within the market. 
3. Investment Manager – Hejaz Asset Management Pty Limited
   Analyses investments to maintain a Shariah-compliant and sustainable portfolio, applying quantitative and qualitative assessments. 
4. Custodian and Administrator – Mainstream Fund Services Pty Limited
   Manages financial records, calculates the Net Asset Value (NAV), and provides administrative support. 

Benefits of Investing in the Hejaz Equities Fund

1. Diversified Exposure: Offers balanced growth across Australian and international markets, to reduce risk. 
2. Shariah Compliance: Ensures alignment with Islamic principles, suitable for Muslim investors. 
3. Professional Management: The fund is managed by experienced professionals who prioritise compliance, performance, and sustainability. 
4. Exclusion of Harmful Industries: Avoids sectors that conflict with Islamic values, fostering a portfolio free from industries like alcohol, tobacco, and gambling. 

Aligning Wealth with Values

The Hejaz Equities Fund offers a unique opportunity for investors to build wealth in alignment with Islamic principles. With a focus on diversified and Shariah-compliant investments, HEF provides a pathway for investors to financial growth that reflects both personal and spiritual values. 

To explore more about the Hejaz Equities Fund or to get started with Australia’s first Islamic ETFs, visit Hejaz Investments or contact us at 1300 043 529. Invest with the knowledge that your financial goals align with your values. 

Disclaimer: 

The information contained in this material is for informational purposes only and does not constitute financial advice. It is not intended to be relied upon as a substitute for professional advice specific to your individual circumstances.