IslamicFinance.de

New York-based Wahed Invest has launched two sharia compliant index-tracking funds under its robo-adviser platform. According to CEO Junaid Wahedna, the company's goal is to make every asset class available to Muslim investors. The new equity funds launched by Wahed will track indices that are screened by Standard & Poor's. The funds have no lockup period and only charge an advisory fee rather than a management fee. Wahedna added that a recurring deposits tool has proven to be popular among clients, most of whom are first-time investors. Wahed raised $5 million in seed capital last year. The investment firm is backed by Gulf investors and venture firms including Boston-based Cue Ball Capital and Dubai-based BECO Capital.

Robo-advisers are opening up investment advice to the masses. They can provide sound investment advice for a fraction of the cost of their human counterparts, making it affordable enough for those with as little as US$100 to invest. Junaid Wahedna has taken the robo-investment concept a step further, making it available for those looking for Sharia-compliant investment options. Wahed Invest charges far lower fees than those charged by a conventional wealth manager. The robo-advisor Betterment has accrued over $10 billion worth of assets under management in the US since its launch in 2008. Currently, all of Wahed’s clients are from the US and Mr Wahedna says it plans to start accepting international customers. The company has 50 full-time employees and it has offices in New York, London, Dubai and Mumbai. The company sees a lot of potential in India, having seen strong demand for Islamic investing in the country from its pre-registered clients.

The first Sharia-compliant robo advisers plans to start operations in the UAE soon, as it looks to a US$2 million funding boost this week from the Dubai venture capital firm Beco Capital. The digitally automated investment adviser Wahed Invest launched in the USA five months ago. CEO Junaid Wahedna said the company was in the process of moving to a new office in Dubai which will become the company’s new global headquarters. Wahed Invest expects to start regional operations by mid-Nov­ember, focusing initially on the UAE. According to Wahedna, the target for ethical, Sharia robo-advisory is the younger demographic, 25-35 years old, digitally savvy and educated millennials. The minimum investment of $100 enables it to tap into a broader customer base.

The 2016 HUMA Islamic Finance Conference was held at Harvard University on October 14 and 15 on the role of Islamic finance in sustainable development goals. CEO of Wahed Invest, Mr. Junaid Wahedna spoke about the future of the industry and the impact of Robo-advising on Islamic financing and sustainable development goals. He said that Wahed Invest brings the latest technology into the world of ethical financing and the feedback from attendees was extremely encouraging. The two-day event included sessions to discuss the functions of Islamic finance, while also critically probing the institutional constraints and the product limitations that may challenge the Islamic finance industry in making a meaningful impact.

Wahed Invest announces the launch of Wahed, the first automated Islamic investment platform, to provide access to halal portfolio management for 2 billion Muslims around the world. The Wahed platform analyzes thousands of securities worldwide to create portfolio allocations with the highest growth potential for its clients. According to CEO Junaid Wahedna, the platform democratizes access to the best financial advice for investors. Wahed offers portfolio management for investments as little as $7,500, as opposed to the usual $500,000 minimum required by most wealth management firms. Wahed Invest is currently accessible in the United States and will be available in more than 100 countries by 2017.