Australia ’s leading Islamic finance house, MCCA, has just revealed financial results for the MCCA Income Fund – the country’s first Shari’ah compliant investment fund registered with ASIC – which achieved a return of 5.31% for the year.
Dr. Akhtar Kalam, chairman of MCCA, said: “The professionally managed fund established in 2009 will soon surpass A$15m ($15.3m) and invests mainly in residential mortgage investments in Victoria (49%) and New South Wales (46%). (source)
Dr. Akhtar Kalam, chairman of MCCA, said: “The professionally managed fund established in 2009 will soon surpass A$15m ($15.3m) and invests mainly in residential mortgage investments in Victoria (49%) and New South Wales (46%). (source)
The key components of the fund that have been the catalyst for its growth are the low minimum investment threshold of A$500 ($509); no entry fees; and no exit or withdrawal fees subject to a minimum investment
period of six months.” While the fund provides for investment in the commercial and retail property, 94% of the portfolio is in residential real estate.
The charges for the fund are 1.75% and the fund manager is Sandhurst Trustees, part of Bendigo Wealth, Bendigo and Adelaide Banks wealth division.
Kalam stresses that conservation of capital is of critical importance, which is why Sandhurst was chosen: “We want to make sure that our money stays intact.”
Kalam told The Islamic Globe that whilst the majority of marketing of the fund takes place: “at grass roots level through religious centers, religious festivals and community engagement fairs.” MCCA also markets through Islamic finance symposiums and through direct government interaction.
Total AUM for MCCA are around A$22m ($22.4m) with an immediate target of increasing this to A$30m
($30.5m) although the ultimate goal is to increase this to between A$100-A$200m. This is a tall order with Australia’s
Muslim population only 500,000 but according to Kalam the target is within reach because: “we also aim to capture the ethical market as well as the Muslim market.”
Australia has been largely unaffected by the global financial crisis, in large part because of its dependence on China, but w that the steam seems to be leaving the Chinese growth engine, there is increasing talk of an Australian property bubble forming.
Mandala keeps motoring on Saudi Sukuk analysis Saudi Arabia is the somewhat reclusive economic superpower of the MENA region. It has the largest population, GDP and oil reserves in the GCC region and is strategically and militarily important on both a regional and global scale.
However, unlike its neighbors the UAE or Bahrain, Saudi Arabia is not a culturally or economically-welcoming place for international business and as such much of Saudi Arabia’s non-oil related business is an
internal market.
The country has embraced its own version of Islamic finance, and as we can see from Zawya’s Sukuk Monitor [see opposite] the issue of Sukuk has been warmly embraced across the economic spectrum. The
country has given birth to some monumental Sukuk over the last few years, such as the 20-year
$2.1bn Saudi Basic Industries Corporation issue of 2007.
Most of the Sukuk issued have been for internal consumption – hence the issuing currency of Saudi Arabia riyal.
However, a few companies – most notably Dar Al-Arkan – have experimented with US dollar issues for the international market. Despite the local flavor of Sukuk, the busiest bank in Saudi Arabia has been
the UK’s HSBC, ably abetted by local subsidiary SABB.
Next week: Shari’ah compliant Global Equity funds Slo w-moving scholars have been blamed for delaying the historic launch of the Middle East’s first Shari’ah carbon trading platform, The Islamic Globe has learned.
Advanced Global Trading (AGT), a London-based carbon brokerage, was due to open its Islamic trading business in November, but says Islamic scholars are dragging their heels over final approval.
The launch will now be pushed back to March, according to Omar al-Jaddou, director for special projects at AGT.
He told The Islamic Globe: “The Shari’ah compliance procedure is relatively archaic so it’s still in the initial stages. We have some eminent scholars on it, so it will probably reach final approval by the end of the first quarter and be live shortly after that.”
The delay will irk AGT, which had hoped to secure firstmover advantage for Islamic services in the $144bn global carbon trading market.
“As Muslims, we have a covenant from God to look after the world. You have to look after it better than you would look after your own possessions. Carbon trading is a vehicle that allows Muslims to fulfill their duty to
God,” said al-Jaddou.
Carbon credits are traded around the world by corporate and private investors looking to profit from the carbon market boom. In the Middle East, the market is growing fast as firms move to improve their corporate social responsibility policies. One Shari’ah scholar closely involved in AGT’s plans said: “There are two things to clarify in the approval process. One is whether it’s being done to keep the environment clean and well-preserved and the other is whether it’s for the carbon image of the firms. Our Shari’ah scholars are unable to understand the detail in English, so AGT have to sit down face-to-face and explain their case in Arabic.”
There is demand from Islamic insurance companies to offer clients the opportunity to offset their emissions, while Islamic banks will look to structure Shari’ah carbon trading investment products. RH
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