Australian fund manager Crescent Wealth launched the country's first Islamic pension fund, through a deal with the Association of Independently Owned Financial Professionals (AIOFP), the company said on Monday. Crescent Wealth aims to tap Australia's large pension industry, which had A$1.3 trillion ($1.4 trillion) in assets at the end of 2011, according to the Australian Prudential Regulation Authority. The potential for Islamic funds in Australia is estimated by the firm to grow to A$22 billion in funds under management by 2020. In June, the firm said it hoped to build its pension fund to between A$4 billion and A$6 billion in five years. "We envisage this new investment option will be very appealing not only to Australians of the Islamic faith but to all Australians who are seeking conservative, value-based investments," said Talal Yassine, managing director of Crescent Wealth, who co-founded the company last year. Crescent Wealth, established last year, currently has an Australian equities fund and a cash fund, while it also plans to launch international equities and property funds. Personal Choice Management, majority owned by AIOFP members, will act as promoter of the pension fund and offer Crescent's investment products through a private-label structure. AIOFP says it has over 2,500 advisors with more than A$35 billion of funds under administration and advice. Crescent is training advisors in both product and Islamic finance principles, aiming to have a few hundred trained advisors who would focus on the Sydney and Brisbane communities and later move on to Melbourne, Yassine added. Reuters
