Australia launches first Islamic superannuation fund

Australia launches first Islamic superannuation fund

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AUSTRALIA: Crescent Wealth, Australia’s first Islamic wealth manager, this week launched the country’s first Shariah compliant superannuation fund in collaboration with the Association of Independently Owned Financial Professionals (AIOFP). The fund will be offered through AIOFP’s ‘Personal Choice, Private eWrap’ account, which offers investors access to a range of investments, managed funds, cash, securities, pensions and term deposits as well as ‘supers’. The deal allows Australian retail investors to transfer all or part of their superannuation savings to Shariah compliant investments managed by Crescent Wealth. Talal Yassine, the managing director of Crescent Wealth, said in a statement that: “We envisage this new investment option will be very appealing not only to Australians of the Islamic faith but to all Australians who are seeking conservative, value-based investments.” The new fund is the first step towards developing the tiny Islamic finance industry in Australia, which has been slow to take off. However, the country’s Muslim population has increased by 40% since 2006 and Crescent Wealth estimates a potential for AU$22 billion (US$23.1 billion) in assets under management in Islamic funds by 2020. Although Muslims make up just 2% of the total population, Australia’s location next to Asia, which is home to two thirds of the world’s Muslims, make Islamic finance a key tool in its bid to become relevant in the regional finance space.