Fintech financial services provider OpenInvest has formed a new partnership enabling it to include an offering from Islamic fund manager Meezan Wealth Management on its investment platform.
The move will allow clients of Islamic faith access to the product Meezan Invest, which provides investment portfolios certified as being sharia compliant.
Meezan Invest will provide a significantly more affordable investment avenue for the Islamic community, requiring a minimum initial amount of $5000 and charging fees considerably lower than its competitors.
Until now, individuals looking to make an allocation to a sharia-compliant offering needed at least $50,000 to do so and were often charged an annual fee of 2.5 per cent while also being restricted to limited redemption opportunities.
The product has been developed as a result of demand from Australian Muslims for a simple investment solution that honoured their religious values, Meezan Wealth Management founding director Rokibul Islam noted.
“At the moment those with smaller lump sums are shut out from investing in Islamic-compliant portfolios. And because putting money in interest-generating accounts is forbidden for Muslims, they have limited options apart from just letting money sit there and be eroded by inflation,” Islam said.
“Our new solution is designed to open up investment opportunities to all Australian Muslims whether they have small or large amounts to invest and who believe they do not require personal financial advice.”
The Meezan Islamic Growth model portfolio will be made up of 10 to 30 Australian and global shares covering mid to large-cap companies and alternative investments and will aim to deliver a yearly return of the consumer price index plus 4.5 per cent.
The investment committee of Lifespan Financial Planning has the responsibility of managing the portfolio.
OpenInvest head of distribution Ravi Verma expressed pride in partnering with an organisation that is widely respected within the Islamic community.
“We believe all Australians deserve access to the benefits of professional investing and are excited that this is now being made available to Australian Muslims in a way that is consistent with their religious principles,” Verma said.
The news comes shortly after OpenInvest announced its working relationship with thematic manager Investor Desk in January.
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