(Ahlul Bayt News Agency) - A Muslim wealth manager has begun the process of opening Australia to Islamic investment with the launch of the first Shariah compliant equity fund in Australia.
The goal of Crescent Wealth, Australia's only Islamic wealth manager, is to establish a raft of investment products, including superannuation, that will give Australians access to the previously untapped $1.4 trillion Islamic investment market.
They say the equity fund, Crescent Australian Equity Fund (CAEF), will also give Australians a socially responsible investment option.
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Crescent Wealth managing director Talal Yassine said he believed there was a lot of "pent up demand" for Islamic investment opportunities.
"As Australians we have zero of that market," Mr Yassine said.
Islamic funds need to comply with Sharia law so will not invest in industries related to alcohol, weapons, pornography and gambling.
The major banks are also out, because, in accordance with Shariah principals, Crescent Wealth cannot invest in anything to do with interest.
Islamic law bans the charging of interest, so investors need to make returns that are linked to the profits of an enterprise.
"At least 40 per cent of the investment universe is not included in out investment universe," Mr Yassine said.
But Mr Yassine is expecting opportunities to grow with the industry.
"As the market grows we'll have more and more companies to invest in," he said.
The equity fund is the first in a raft of products Crescent Wealth plans to introduce in the next year.
They expect to launch property and international equity funds by the end of this year, followed by a fixed income fund in the first quarter of 2012 and a superannuation retail product at the same time.
Mr Yassine said Crescent Wealth has the support of three of the 10 wealth creation firms working with them to bring "grunt" to their products.
"We are hopefully giving birth to an elephant."
He expects engagement with the global Islamic finance industry to lead to job creation in Australia.
Mr Yassine said until now Australia didn't have an Shariah compliant instruments to enable Islamic investment.
"If somebody in Abu Dhabi says `I have this fund, it has to be Shariah compliant,' there is no instrument for them to invest (in Australia) other than directly," Mr Yassine said.
The fund is being marketed to local investors as a socially-responsible option.
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The goal of Crescent Wealth, Australia's only Islamic wealth manager, is to establish a raft of investment products, including superannuation, that will give Australians access to the previously untapped $1.4 trillion Islamic investment market.
They say the equity fund, Crescent Australian Equity Fund (CAEF), will also give Australians a socially responsible investment option.
Advertisement: Story continues below
Crescent Wealth managing director Talal Yassine said he believed there was a lot of "pent up demand" for Islamic investment opportunities.
"As Australians we have zero of that market," Mr Yassine said.
Islamic funds need to comply with Sharia law so will not invest in industries related to alcohol, weapons, pornography and gambling.
The major banks are also out, because, in accordance with Shariah principals, Crescent Wealth cannot invest in anything to do with interest.
Islamic law bans the charging of interest, so investors need to make returns that are linked to the profits of an enterprise.
"At least 40 per cent of the investment universe is not included in out investment universe," Mr Yassine said.
But Mr Yassine is expecting opportunities to grow with the industry.
"As the market grows we'll have more and more companies to invest in," he said.
The equity fund is the first in a raft of products Crescent Wealth plans to introduce in the next year.
They expect to launch property and international equity funds by the end of this year, followed by a fixed income fund in the first quarter of 2012 and a superannuation retail product at the same time.
Mr Yassine said Crescent Wealth has the support of three of the 10 wealth creation firms working with them to bring "grunt" to their products.
"We are hopefully giving birth to an elephant."
He expects engagement with the global Islamic finance industry to lead to job creation in Australia.
Mr Yassine said until now Australia didn't have an Shariah compliant instruments to enable Islamic investment.
"If somebody in Abu Dhabi says `I have this fund, it has to be Shariah compliant,' there is no instrument for them to invest (in Australia) other than directly," Mr Yassine said.
The fund is being marketed to local investors as a socially-responsible option.
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