Crescent Wealth targets ultra-ethical investors with Shariah-compliant super fund

Crescent Wealth has launched a new ultra-ethical, Shariah-compliant superannuation fund.

The wealth management firm has developed its own platform and appointed Corporate Combined Superannuation (CCSL) as trustee to host its Australian equities, international equities, income, and Australian property and infrastructure funds as a stand-alone superannuation option, regulated by the Australian Prudential Regulation Authority (APRA).

The investment option is now also available as a white-labelled ultra-ethical product for Australian superannuation funds and through Crescent Wealth direct.

Crescent Wealth managing director Talal Yassine said that although the product followed Islamic finance principles, the company expected the majority of its clients to be attracted to its ultra-ethical investment philosophy.

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"There's going to be a significant flight of superannuation flows over a period of time as people realise where their money's invested," he said.

"Especially women as they zero in and focus on their superannuation — they tend to not only want a good return but also to know how their money is invested and if it is invested on an ethical basis."

The fund based its investments on strict qualitative guidelines with a quantitative overlay.

Yassine said Crescent did not invest in organisations that gave or took interest such as banks and other financial institutions, and also refrained from investing in pornography, tobacco, weapons and gambling.

The quantitative filter focused on a company's financials and includes taking into account levels of debt, liquid assets and accounts receivable in line with Islamic finance.

Yassine said Crescent Wealth had a three-year strategy focused on giving Australian's Muslims investment choice and also promoting the ultra-ethical investment space.

"If a superannuation fund is looking for an ethical component, and one that is not only high quality but aims to beat market, then they should consider us," he said.

Yassine said Crescent Wealth was currently in discussions with industry funds about adding the ultra-ethical investment option to their platforms.

Crescent Wealth's Australian equities product was seeded by Aon Hewitt and is also available via the Asgard platform. Its super product was initially launched last December on the Association of Independently Owned Financial Planners' Personal Choice Private e-wrap platform.