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The first Shariah-compliant exchange traded funds (ETFs) began trading on the Australian Securities Exchange (ASX) on Monday with the launch of funds by a Melbourne-based financial services company.
The Hejaz Equities Fund (ASX:ISLM) and Hejaz Property Fund (ASX:HJZP) began trading on the ASX at midday, a statement from Hejaz Financial Services said.
The Hejaz Equities Fund is a growth fund with exposure to a diversified global equities portfolio of shariah-compliant investments, while the Hejaz Property Fund invests in globally listed REITs.
Hejaz’s total funds under management was over $285 million, as at July 2022.
There has been a surge in Shariah-compliant ETFs in recent years as investors seek investments that align with faith-based and moral values. Islamic ETFs had had a record year in 2021 with more than 900 new launches worldwide and over $1 trillion in global net inflows, taking assets under management to $9.9 trillion at the end of November, according to Dr. Chris Mellor of Invesco.
(Writing by Brinda Darasha; editing by Seban Scaria)
