Malaysia's First Australian Shariah Compliant Property Fund Launched

  • Crescent Wealth partners with KAF Investment Funds Berhad to launch KAF Australia Islamic Property Fund
  • Aims to generate a 9% – 10% annual return, by targeting 7% in income yield and 2% – 3% in capital appreciation

KUALA LUMPUR, 1 August 2016 – Crescent Wealth, Australia’s leading Islamic investment company, and KAF Investment Funds Berhad, a leading Malaysian investment manager, today announced the launch of the KAF Australia Islamic Property Fund (“KAIPF”) on Monday 1st August 2016.

The KAIPF is Malaysia’s first fund to give non-institutional investors direct access to Australian commercial property. This feeder fund invests into Australia’s leading Islamic property fund, the Crescent Wealth Diversified Property Fund (“CDPF”).

Since its launch in February 2013, the CDPF has delivered an average return of 17.9% per year, a total since inception return of 70.34%, as at 30 June 2016. The CDPF invests in a mix of listed Australian Real Estate Investment Trusts, infrastructure securities and direct property assets. The investment strategy allows the CDPF to deliver investors liquidity, whilst also delivering regular income and capital growth. This fund aims to deliver a 9% – 10% annual return to investors, by targeting 7% in income yield and 2% – 3% in capital appreciation. The CDPF has been awarded a 5-star (30 June 2016) rating by Morningstar Australia.

Talal Yassine OAM, Managing Director of Crescent Wealth, said: “we believe this new and exciting initiative builds a gateway for Malaysian investors in Australia and reaffirms strong ties between Australia and Malaysia. The Australian commercial property market provides investors access to a highly developed and deep property market with global investment grade assets recently valued at US$526 billion across offices, retail, hospitals, and such.”

Major global investors, both private and sovereign, are increasingly entering Australia, due to the quality returns and attractive yields offered by its mature property market. Historically, Malaysians have displayed strong affinity with Australia, as an attractive destination for education, holidays and of course property investment. Recent data from Australia’s Foreign Investment Review Board found that Malaysia was the fourth largest source country for approved Australian property investment, after China, the United States and Canada.
Thariq Usman Ahmad, KAF’s Deputy CEO and Board Member, said “we are excited to announce this latest fund addition to our product offering. In conjunction with Australia’s Crescent Wealth, we are happy to provide Malaysian investors with an opportunity to invest in the fast growing Australian commercial property sector. This sector, has historically outperformed and in the current global low interest rate environment, yields from commercial property are increasing more attractive as an alternative. This fund will provide investors with a stable return, regular distribution payments with the potential upside of investments in a high performing sector.”

Furthermore, the KAIPF is uniquely positioned to provide Malaysian investors with a chance to invest in Australian dollars, and hence provide a natural hedge to those wishing to send children to Australia for studies.

Crescent Wealth established a new office late last year in Kuala Lumpur, Malaysia – indicative of further business expansion, as the firm continues building its networks across South East Asia and the Middle East.

KAF launched the fund in partnership with Crescent Wealth today at the Grand Hyatt, Kuala Lumpur. Attendees included Malaysian Chair Datuk Mohamed Azahari Bin Mohamed Kamil and Thariq Usman Ahmad, the Deputy CEO of KAF Investment Bank; as well as other key Board members and Executives from KAF Investment Funds and Crescent Wealth. In addition, a number of industry participants and Malaysian media will be present.

Omar Khan
Director, Strategy & Development
Crescent Wealth
+61 417 664 114
[email protected]

Mas Johan Harris
Head, Malaysia
Crescent Wealth
+60 12 307 8100
[email protected]

About KAF Investment Funds Berhad

KAF Investment Funds Berhad are a leading investment manager in Malaysia with a strong reputation for providing investors with a steady and consistent dividend income over the medium-term to long-term investment period. It is intended that the returns will be further enhanced through capital appreciation of investments.

About Crescent Wealth

Crescent Wealth is Australia’s leading Islamic investment firm offering a pension fund and a series of managed funds across Australian equities, international equities, diversified property and Islamic cash and fixed income. We invest in accordance with Islamic investment principles and offer all Australians an attractive alternative in socially responsible investing. Crescent Wealth offers a series of investment funds as well as the Crescent Wealth Superannuation (pension) Fund. Crescent Wealth manages all aspects of its funds in accordance with its Australian Financial Services Licence (AFSL 365260) including product development, registration, legal, accounting, auditing, marketing and distribution. Crescent Wealth does not invest in activities prohibited by Sharia’a such as arms production or trade, alcohol, pornography and gambling. Managing Director Talal Yassine also serves as Chairman on the boards of the Department of Foreign Affairs and Trade Council for Australia-Arab Relations, as Member of the Department of Foreign Affairs and Trade Australia-ASEAN Council (AAC), and as a Director of the Whitlam Institute.