Islamic mortgage originator launches retail investment fund
MCCA Asset Management, a subsidiary of Islamic mortgage originator MCCA, has launched a shariah-compliant retail managed investment mortgage fund, designed to attract Muslim, as well as generally ethical investors.
The fund, to be known as the MCCA Income Fund, has been registered with the Australian Securities and Investments Commission (ASIC), with a Product Disclosure Statement and official launches scheduled for September.
Chaaban Omran, managing director of MCCA, said retail clients will be allowed to invest as little as $500, with funds being used to invest in shariah-compliant financing for residential and commercial purposes.
Omran believes this is the first of its kind, saying he knows of only one other shariah-compliant property fund in the wholesale sector.
The creation of the fund is a departure from MCCA’s central business, with the company offering mortgage origination services for the past 20 years. Omran said MCCA aims for steady growth of the fund over the first three years.
MCCA’s members will likely be targeted to transfer existing investments to the new fund. However, Omran believes the fund will be attractive to institutional investors locally and overseas in countries dealing in shariah-compliant investments, as well as financial planners.
The fund will be primarily directed to investments compliant with Islamic law, meaning products involving alcohol or gambling, among others, will be prohibited.
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