Hakan Ozyon

Australia’s largest Islamic financial institution, Hejaz, and OnePath Network, a global Islamic production company, join forces in a groundbreaking partnership. This collaboration aims to empower Muslim communities worldwide through engaging content and events, focusing on spreading the true word of Islam, strengthening the Deen globally, and promoting financial literacy.

Hakan Ozyon, Founder & CEO of Hejaz, expressed his enthusiasm, “Hejaz is excited to announce a pioneering partnership with OnePath Network. Our goal is to establish trust and credibility among our Muslim audience. We will create engaging resources that empower Muslims and cultivate a stronger connection with Islamic principles, especially in finance.”

This partnership combines Hejaz’s extensive knowledge of Islamic finance with OnePath Network’s exceptional skill in producing captivating and educational content. “We are excited to share our new partnership with Hejaz, a renowned Australian Islamic financial institution.” OnePath Network said, “The goal of this collaboration is to instil a deep understanding of Shariah-compliant finance among Muslim communities. We empower them to not only navigate their financial journeys with confidence but also actively contribute to the growth of an Islamic economic ecosystem.

Ali Ozyon, Chief Marketing Officer of Hejaz, said, ” OnePath Network’s content transcend boundaries, and anyone can attest to how impressive their production values are. We at Hejaz are delighted to be working with OnePath Network to produce the best-in-class content that will entertain and inform the world about Islamic finance and the religion.”

This groundbreaking partnership between Hejaz and OnePath Network promises a significant impact on Muslim communities worldwide.

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Hakan Ozyon

Hejaz Group, a leading global Islamic Finance provider, has launched Australia’s first ever Sukuk active exchange-traded fund (active ETF), enabling investors to access a Shariah-compliant bond alternative product for the first time.

The Hejaz Sukuk Active ETF (Managed Fund), will be available on the ASX from 2 November 2023. The Hejaz Sukuk Active ETF (Managed Fund) (ASX:SKUK) will enable retail, wholesale and institutional investors in Australia and New Zealand to invest in a shariah-compliant fixed-income asset that is comparable to a traditional bond ETF.

Unlike traditional bonds which derive yield from debt interest, Sukuk are financial certificates that appreciate as the value of the underlying asset grows. Sukuk are issued in global markets and structured to comply with Islamic law, with investor returns considered to be profit sharing rather interest. Under shariah principles, the earning or payment of interest is not permitted.

Managed by Hejaz Asset Management, the Hejaz Sukuk Active ETF (Managed Fund) is comprised of a diversified portfolio of Shariah-compliant Sukuk investments from the Bloomberg Global Aggregate USD Sukuk Index. Hejaz Asset Management is targeting a return of 8 per cent per annum, after fees.

Hakan Ozyon, CEO, Hejaz Group said: “Hejaz was founded to give Australian Muslims the opportunity to grow their wealth without compromising their beliefs, by giving them access to world-class halal financial products. The Hejaz Sukuk Active ETF (Managed Fund) fills a substantial gap in the market by enabling Muslims and non-Muslims to access an ultra-ethical fixed-income product – considered a defensive asset – for the first time. Alongside our equities and property ETFs, and new account-based pension offering, our Sukuk Active ETF shows Hejaz is fulfilling our promise to a support Muslims financial needs with first and best-in-class products.”

The global Sukuk market was valued at USD 915 billion in 2022 and is expected to reach a value of USD 2.3 trillion by 2028, based on a predicted cumulative annual growth rate (CAGR) of 16.2% from 2023 to 2028.i

Equity Trustees will be trustee for the Hejaz Sukuk Active ETF (Managed Fund), with Apex Financial Services Group acting as administrator and custodian, and Nine Mile as the market maker.

Andrew Godfrey, Executive General Manager, Superannuation Trustee Services, Equity Trustees said: “This is another example of the Hejaz team developing innovative financial solutions that solve real-world needs for a community with specific requirements and preferences. We’re pleased our specialist trustee and governance expertise can facilitate the launch of this purpose-built product.”

Andrew Campion, GM, Investment Products, ASX, said “Our vision is to ensure that there are a broad range Investment Products available on ASX that enable investors and their advisers to construct quality portfolios. The Hejaz Sukuk ETF is an excellent example of broadening the choice that investors have in the Australian market”.

Hejaz currently has $1.3 billion in funds under management and advice. Its Global Ethical Fund is Australia’s largest standalone Islamic fund, while the Hejaz Equities Fund (Managed Fund) (ASX:ISLM) and Hejaz Property Fund (Managed Fund) (ASX:HJZP) were the first Islamic finance products to be quoted on the ASX.  In September 2023 it launched the Hejaz Islamic Super and Pension, the first Islamic account-based pension to be offered to Australian consumers directly.

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Muzzammil Dhedhy

Hejaz Group, Australia’s leading Islamic Finance provider, has announced the launch of its new product, Hejaz Islamic Super and Pension. This marks the first time an Islamic account-based pension has been offered to Australian consumers directly.

Hejaz Islamic Super and Pension offers three investment options—growth, balanced and conservative—through a streamlined application process. Customers can apply and be onboarded via the online member portal in approximately two minutes, with greater flexibility and control over investment options during different life stages (including during accumulation and pension phases). Hejaz Group previously offered access to its Sharia-compliant superannuation products as advised products only.

Following Hejaz Group’s recent $10 million strategic investment in Islamic Bank of Australia, the availability of the new Hejaz Islamic Super and Pension product furthers the company’s ambition to provide an end-to-end wealth service for all Australian Muslims and other customers with shared ethical values.

Muzzammil Dhedhy, COO at Hejaz Group commented on the launch: “Superannuation is fundamental to ensuring a comfortable retirement but we realised that there wasn’t a Sharia account-based pension fund available to Australian Muslims. This can be particularly frustrating for large organisations that want to do the right thing and make sure all of their employees have access to ethical superannuation options.”

“We’ve made it easy and hassle-free to set up an Islamic super account and account-based pension that aligns with members’ beliefs and values. Under each of the three investment options on offer, we’re targeting returns which match industry benchmarks. We emphasise the importance of not disadvantaging those who choose to align their investments with their faith and values.”

With an average 120 members being onboarded to Hejaz’s existing superannuation products via advisers per month, many customers have already expressed interest in the new direct-to-consumer Hejaz Islamic Super and Pension offer. Equity Trustees will be trustee for the Hejaz Islamic Super and Pension offer, while Acclaim Management Group is the Administrator; and AIA Australia Limited is the Insurer.

Andrew Godfrey, Executive General Manager, Superannuation Trustee Services, Equity Trustees said: “It’s clear the Hejaz team is committed to developing innovative, faith-based customer-led financial solutions and they have created the Hejaz Super and Pension offer to meet a need in the Australian Muslim community. We’re pleased to facilitate the launch of this new product by applying our specialist trustee and governance expertise.”

Hejaz currently has $1.3 billion in funds under management and advice. Its Global Ethical Fund is Australia’s largest standalone Islamic fund, while the Hejaz Equities Fund (ASX:ISLM) and Hejaz Property Fund (ASX:HJZP) were the first Islamic finance products to be listed on the ASX.

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Hakan Ozyon

Hejaz Group, Australia’s leading Islamic finance provider, today announced it has made a $10m investment in a strategic stake in Islamic Bank Australia.

Hejaz Group and Islamic Bank Australia share the goal of enabling Australia’s 800,000 Muslims to access world-leading financial services which they are typically excluded from because of their faith. The investment is in line with Hejaz Group’s ambition to offer a holistic wealth service to Muslim customers in Australia, working in partnership with other Islamic and non-Islamic organisations to give customers access to Shariah-compliant fund management, financial planning, accounting, property finance, super, tax and insurance services.

The size of Hejaz Group’s stake in the bank is undisclosed. Hejaz Group is funding the investment through internal capital though is also currently raising externally to fund expansion efforts, including into overseas markets.

Islamic Bank’s CEO Dean Gillespie and other members of the executive leadership team will continue to lead the bank.

Hejaz currently has $1.3 billion in funds under management and advice. Its Global Ethical Fund is Australia’s largest single standalone Islamic fund, while the Hejaz Equities Fund (ASX:ISLM) and Hejaz Property Fund (ASX:HJZP) were the first Islamic finance products to be listed on the ASX.

Hejaz distributes its market-leading products direct to consumers as well as through intermediaries, including the Hejaz Financial Advisers Network and mortgage brokers licensed under aggregators including Finsure, Outsource Financial, and Purple Circle Financial Solutions.

Islamic Bank Australia was founded to provide Australian Muslims with retail banking services. It is currently testing its systems and products under a Restricted ADI with over 12,500 future customers already waiting to open banking services.

“Hejaz’s ambition is to provide best-in-class financial services that enable Muslims to grow their wealth in a way that is compliant with their faith. Traditionally, Muslims have been disenfranchised from financial services because they do not adhere to Shariah principles. However, this is an Australian community that is young and well educated and are demanding more from financial service providers. Islamic Bank Australia has already established itself as a prominent Islamic brand and we’re looking forward to partnering with them to deliver much needed banking and financial services to Australia’s Muslim community.” said Hakan Ozyon, CEO at Hejaz Financial Services

“Islamic Bank Australia and Hejaz share the same mission – to enable Australian Muslims to access financial services that align with their faith and values. This investment from Hejaz will enable us to expand our customer acquisition while we work towards a full ADI licence, a key step to providing Australian Muslims with Islamic-compliant banking services for the first time.” said Dean Gillespie, CEO, Islamic Bank Australia

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Muzzammil Dhedhy

Hejaz Financial Services, Australia’s leading Islamic finance provider, has announced that four of its funds have been certified by the Responsible Investment Association Australasia (RIAA).

RIAA’s Responsible Investment Certification Program is the leading initiative for distinguishing quality responsible, ethical and impact investment products in Australia and New Zealand. RIAA sets strict criteria for certifying investment products, helping provide consumers with the assurance that an ethical or responsible investment product is doing what it claims to do.

Regardless of their faith, retail investors increasingly want to see a reflection of themselves in their investments. RIAA consumer research shows that 89% of Australians and 83% of New Zealanders expect their investments to be made responsibly and ethically, while 4 in 5 Australians are now expecting investment products to be verified as delivering on their promise by an independent certifier.^[1]

The certification of Hejaz’s funds cements its position as one of Australia’s leading ultra-ethical fund managers and investment product providers. While Hejaz’s mission is to enable Australian Muslims to access traditional financial services that they are typically excluded from, it also wants its products to be taken up by non-Muslim investors seeking to avoid greenwashed products.

The four funds certified by the RIAA are:

• Hejaz Global Ethical Fund – Hejaz’s flagship fund and Australia’s largest single standalone Islamic fund
• Hejaz Equities Fund – A Halal equities fund targeting 15% p.a. return net of fees. Now available as an ETF (ASX:ISLM)
• Hejaz Property Fund – A fund that applies Shariah investment principles to globally listed REITs, targeting 10% p.a. net return of fees. Now available as an ETF (ASX:HJZP)
• Hejaz Income Fund – Australia’s highest returning Islamic Income Fund

Muzzammil Dhedhy, COO at Hejaz Financial Services commented “Australians want to see themselves reflected in their choices, whether it be their investments, their clothing manufacturers, or food suppliers, social responsibility and values-based living is become increasingly prevalent. But there are a lot of imposters out there that are labelling their products ethical when in fact they are anything but.

“Hejaz’s mission is to not just enable financial access for Muslims but also provide non-Muslims with ultra-ethical products that they can trust. That’s why it was so imperative for Hejaz to gain certification from the RIAA, Australia’s leading responsible investing certification body, to ensure that our investors know that when they invest in a Hejaz product, they can count on not being a victim of greenwashing.”

In order to become RIAA certified, financial products must adhere to strict criteria, set out in the RIAA’s Certification Program. The eight requirements are:

• investment strategies are formal, disclosed, consistent, auditable and fit for purpose
• labels are clear, honest and not misleading
• product avoids significant harm
• product accounts for environmental, social and governance factors
• discloses full holdings, performance, sustainability outcomes and engagement and voting practices
• managed by active stewards, and managers can detail the stewardship practices and outcomes
• organisation has formal commitment to responsible investment
• organisation provides educational information to members and customers about responsible investment strategies and investment outcomes

Simon O’Connor, CEO of RIAA, commented: “RIAA’s Responsible Investment Certification Program differentiates quality, true to label responsible investment products which meet the Responsible Investment Standard. We congratulate Hejaz Financial Services for meeting the high benchmark set for Certification for four of its funds.”

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[1] https://responsibleinvestment.org/wp-content/uploads/2020/09/RI-Certification-Program-Quick-Guide.pdf

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Muzzammil Dhedhy

Hejaz Financial Services has launched two of its leading funds – the Hejaz Equities Fund (ASX:ISLM) and Hejaz Property Fund (ASX:HJZP)— as Exchange Traded Funds (ETFs) on the Australian Securities Exchange (ASX). Units in the two funds commenced trading on the ASX yesterday.

In an Australian first, Hejaz is providing Muslims and other ethically conscious investors greater access to two of its Sharia-compliant funds in a popular investing format they are already familiar with. Both Funds refrain from investing in activities which are considered to be morally or socially injurious and in companies which primarily operate in such sectors (i.e. tobacco, gambling, adult entertainment, conventional banking and insurance, pork, and weapons).

The Hejaz Equities Fund (ASX:ISLM) is a growth fund with exposure to a diversified global equities portfolio of Sharia Compliant investments. It invests primarily in developed markets around the world, primarily Europe, North America and selected Asian markets, including Australia. The Hejaz Equities Fund aims to achieve a total return equal to movements in the MSCI World Islamic Index Benchmark. The Fund targets a 15% p.a. return net of fees and currently has $70m under management.

The Hejaz Property Fund (ASX:HJZP) applies an ethical overlay to invest in globally listed REITs. Like the Equities Fund, Sharia investment principles are applied as negative screens to exclude investment assets based upon the nature of their business activities and their failure to meet financial thresholds relating to debt, liquidity, and income. The Fund targets a 10% p.a. return net of fees and is benchmarked to the MSCI World REITs Index. The Hejaz Property Fund currently has $10m under management.

The two funds are aimed at creating a positive impact and building wealth for members without negatively impacting society.

Muzzammil Dhedhy, COO at Hejaz Financial Services commented on the launch: “While Islamic ETF products are widely available overseas, this will be the first time Islamic Finance products are listed on the ASX. By making it simple for retail investors to access our award-winning funds, we are taking an important step towards our goal of providing high-performing, ethical financial products to Australian Muslims. Hejaz is also planning to launch a third ETF before the end of the year, providing retail investors with greater access to the Hejaz Income Fund, Australia’s highest returning Islamic Income Fund.”

Equity Trustees has been appointed Responsible Entity (RE) for the two ETFs, while Macquarie Securities Limited is involved in the launch as the market making agent.

Russell Beasley, Executive General Manager, Corporate Trustee Services at Equity Trustees said: “We are excited to be involved in the creation of Australia’s first Sharia Compliant ETFs and look forward to applying our funds governance expertise to both. We congratulate Hejaz Financial Services on delivering this milestone, and for their initiative in servicing an important, growing segment of the market.”

Hejaz’s total funds under management (FUM) stand at over $285 million, as at July 1 2022.

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Muzzammil Dhedhy

Hejaz Financial Services’ Global Ethical Fund is now available on HUB24, making it the first ever Islamic superannuation product to be available on both HUB24’s IDPS and Super investment menus.

This comes at a time when consumer demand for Sharia-compliant financial products and services is rising. Recent research from Hejaz found that 36 per cent of Australian Muslims store considerable cash savings at home due to a lack of financial products that fit with their faith. This large addressable market is compounded by broad consumer demand for ethical investment products.

Though Hejaz’s Global Ethical Fund, advisers will be able to connect customers with an ultra-ethical product that has returned an average of 12.10% p.a. gross over the last 3-years.

“Our vision is to provide world-leading financial products to Australian Muslims to help them grow their wealth in a way that doesn’t compromise their faith. Because many lack access to Islamic finance products, or are completely unaware of them, making the fund available on HUB24 is a major step towards giving Australian Muslims the tools to suitably manage their wealth.” said Muzzammil Dhedhy, COO at Hejaz Financial Services

“Furthermore, accessing Hejaz’s Global Ethical Fund via HUB24 enables advisers to better serve a community of 1.2 million people who are traditionally great savers and will be looking to access a range of services, from superannuation to personal or commercial property purchases.” he added.

Hejaz Finance already has around 6,500 customers directly or through intermediaries, with 400 accredited mortgage brokers. It is working with the Australian Prudential Regulation Authority towards its goal of becoming the first Islamic financial service provider to obtain a banking license.

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Chris Deakin

Hejaz Financial Services, a leading Australian Islamic financial services provider, has today announced the appointment of Chris Deakin to the newly created role of Sales Director. With immediate effect, she is responsible for leading the sales practice and overseeing the company’s anticipated growth to $100 million funds under management as Australian Muslims take up the opportunity of sharia-compliant financial products in 2022.

Chris joins Hejaz Financial Services from LUCRF Super where she was most recently Executive Manager, Distribution. She brings more than 30 years of financial and business development experience to the Hejaz leadership team, having previously worked at IOOF, First State Super, Health Super and Superpartners. Chris engages with workplaces, platforms and Licensees, community organisations, Islamic schools and businesses to educate the market about the holistic Sharia-compliant financial products and services on offer.

A passionate advocate for diversity and inclusion, Chris contributes to the advancement of the wider financial services industry. She has served as the National Board Director of the Victorian branch of Women in Super (WIS), a national advocacy and networking group for women employed in the superannuation and financial services industries, as well as an Expert Advisory Committee member at Superfriend, supporting the organisation’s contribution to the mental health and wellbeing of Australia’s workforce.

Chris is currently the Chair of Board of Directors at Banyule Community Health—a not-for-profit community health organisation that services some of the most disadvantaged people in the community. She is now using her financial services and social justice experience to improve the financial wellbeing of the community.

“While Chris’ commercial acumen and background is nothing short of impressive, it was her values and passion for social inclusion that stood out to us. A significant portion of Muslim Australians do not engage with the financial system because traditional banking products fail to address their religious needs, so we want to get the word out that alternatives exist.”

“Hejaz has doubled in size over the past 12 months fuelled by demand from Muslim Australians for sharia-compliant investment products. At our current growth rate, we’re expecting to add more than $100 million to our funds under management in 2022. We are delighted for Chris to join the team and continue to build towards our goal of becoming the country’s first Islamic bank – helping overlooked and often unbanked Australians grow wealth and accomplish their goals through best-in-class financial products,” said Muzzammil Dhedhy, Chief Operating Officer at Hejaz Financial Services.

“Demand for financial products that are tailored to people’s values is rising. Hejaz is at the forefront of this movement, creating first-of-their-kind Sharia banking alternatives that enable Muslim Australians to achieve their aspirations without compromising their faith. I am excited to be joining an organisation that is both helping customers and shifting the industry conversation forward,” said Chris Deakin, Sales Director at Hejaz Financial Services.

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Hakan Ozyon

In an Australian first, Hejaz Financial Services, Australia’s leading diversified provider of Islamic financial products and services, has announced the launch of the Hejaz Financial Advisers network dedicated to advising clients on Islamic-compliant investments.

Advisers joining the network will operate under Hejaz’s master license (AFSL) to give Australian Muslims access, for the first time, to a professional financial adviser to help them secure and grow their wealth in a Sharia compliant way.

The network, which will comprise both Islamic and non-Islamic financial specialists, will advise clients on investment products that are aligned to Islamic investment principles and tailored to their individual financial needs.

Hakan Ozyon, Chief Executive Officer at Hejaz Financial Services said, “Muslims are a growing but underserved financial services market in Australia. To date, they have not been able to access specialist advice or products designed to help them achieve their financial goals in a way that reflects their religious faith.

“By establishing a network of advisers who deeply understand the customers they serve, Hejaz is helping to make wealth management more accessible to Islamic communities. We believe we are also setting an example at a time when questions have been raised about how aligned advisers are to their clients’ needs.”

Hejaz expects to recruit up to 50 advisers to the network within 12 months and is seeking to eventually license between 150 and 200 specialist financial advisers.

Among other investments, Hejaz-affiliated advisers will be equipped to advise clients on Hejaz’s flagship Islamic investment products, the Global Ethical Fund and Ethical Income Fund.

The Global Ethical Fund is a multi-asset balanced fund applying a Sharia-compliant strategy that aims to achieve CPI plus a 3% total return per annum. Since inception in 2017, it has returned 6.0% per annum. Established in 2019, Hejaz’s Ethical Income Fund is designed to generate a steady, Sharia-compliant income stream. It has a target return of between 5% and 7% per annum.

Hejaz’s total funds under management (FUM) currently stand at $170 million.

Susan Wolff, an experienced CFO, Operations and Governance Manager, has been appointed to lead the development and growth of the financial adviser network. Ms Wolff has worked previously at Challenger International, IOOF Holdings, Capstone Financial Planning, AMP and most recently, as Chief Operating Officer at MSC Group.

“Hejaz is taking steps to make wealth creation more customer-centric. The market potential here is enormous – Muslim Australians are diligent savers and, given the choice, will always gravitate to financial products that align with their faith and values,” said Ms Wolff, General Manager – Wealth Management at Hejaz Financial Services.

“I am pleased to be joining Hakan and the leadership team as Hejaz continues to create innovative new funds and solutions to everyday problems. A laser focus on what our Muslim and non-Muslim customers are actually looking for is exactly what the industry needs.”

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