How Wholesale Investors Can Grow Differently

Wholesale investors understand that every investment has a purpose. Yet conventional interest-based products often remain a default allocation, even when their underlying structures conflict with Islamic principles.

Moving beyond that default does not mean compromising investment discipline. It means applying the same scrutiny to how returns are generated as to the returns themselves.

For sophisticated Muslim investors, Sharia-compliant wholesale investment funds provide an avenue to explore professionally managed strategies without abandoning their long-term wealth objectives. The opportunity lies in understanding which strategies belong in their portfolio.

What Wholesale Investors Need to Consider

Access to private markets can broaden an investment portfolio beyond publicly traded assets. Wholesale investment funds may provide exposure to opportunities that are generally unavailable through conventional retail products.

For Muslim investors, the evaluation goes further. The underlying investments and financing arrangements need to align with Sharia principles, while the fund's investment strategy needs to serve a clear financial objective. That makes the distinction between income and growth particularly important.

Exploring the Three Hejaz Wholesale Funds

Through Hejaz Privia, eligible investors can explore three Sharia-compliant wholesale funds, each taking a different approach to building wealth.

Hejaz Enhanced Income Fund (HEIF)

For investors prioritising regular income, the Hejaz Enhanced Income Fund focuses on Sharia-compliant financing opportunities, including structured financing and private credit. The Fund targets a 9% annual return, net of fees but before tax, with quarterly income distributions.

Its income-focused strategy may appeal to investors seeking periodic distributions from an actively managed portfolio. Investors also need to consider its minimum 30-month lock-in period when assessing their liquidity requirements.

Hejaz Private Credit Fund (HPCF)

The Hejaz Private Credit Fund provides exposure to Sharia-compliant financing activities through structured arrangements involving three special purpose vehicles.

With a target annual return of 10–13%, net of fees and expenses, and monthly income distributions, HPCF offers a different approach to income generation. Its private credit exposure warrants careful consideration of financing risks, underlying asset quality and capital commitments.

Hejaz Private Equity Fund (HPEF)

Investors pursuing long-term capital appreciation may explore the Hejaz Private Equity Fund. Rather than focusing on regular income distributions, HPEF invests indirectly in Sharia-compliant unlisted businesses operating in sectors with high growth potential.

The Fund targets CPI +10% annually and applies a seven-step investment evaluation process, including financial analysis and Investment Committee approval. Its growth-oriented strategy carries higher risk and is more relevant to investors comfortable with the uncertainties of private equity.

Look Beyond the Return Target

The highest target return is not necessarily the strongest fit for an investor's portfolio. An income-focused allocation serves a different purpose from capital committed to private business growth. Even funds with similar underlying exposures can differ in their distribution schedules and liquidity arrangements.

Wholesale investors benefit from assessing these distinctions alongside their existing holdings. Investment horizons, valuation methods and the potential for capital loss deserve particular attention before committing funds. Return targets are not guarantees, and Sharia compliance does not eliminate investment risk.

Explore Your Next Investment with Hejaz

Building a Sharia-compliant portfolio begins with understanding where each investment fits. Through Hejaz Privia, eligible wholesale investors can explore professionally managed funds aligned with different investment objectives.

If you are considering your next allocation, Book an Appointment with the Hejaz team to discuss the available wholesale funds and how their strategies relate to your investment goals.

Disclaimer:

Hejaz Asset Management Pty Ltd (ABN 69 613 618 821, AFSL 550009) is the Investment Manager for Hejaz investment funds. Information on the Hejaz website, in product documents, or promotional materials is general in nature and does not consider your personal circumstances. You should read the relevant PDS or offer document before making an investment decision. Investments carry risk, and past performance is not an indicator of future results. Sharia compliance is based on the interpretation of our appointed Sharia advisers.

Hejaz wholesale investment funds are offered to qualifying investors only, in accordance with the Corporations Act 2001 (Cth). These funds are issued and managed by Hejaz Funds Management Ltd (ABN 87 138 165 901, AFSL 339583). They are not available to retail investors. The information provided on the Hejaz website, in any offer documents, or promotional material is intended solely for professional, sophisticated, or wholesale investors as defined by the Corporations Act and is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation.

The information is general in nature, does not take into account your investment objectives, financial situation, or needs, and does not constitute financial product advice. You should seek independent professional advice before making any investment decision. Investment in these funds carries risk, and you may lose some or all of your investment. Past performance is not a reliable indicator of future performance. Product features, fees, and charges may change without notice.

References to “Islamic” or “Sharia-compliant” products relate to compliance with Islamic finance principles as interpreted by our appointed Sharia advisers. These interpretations may differ from those of other scholars or organisations.

By accessing the Hejaz website, materials, or products relating to these wholesale funds, you confirm that you are a wholesale investor and agree to the terms of this disclaimer.