ShariaPortfolio has seen a significant rise in Shariah compliant investments recently across its operations in North America, with its assets under management (AuM) of just below US$1 billion as of September 2023 growing to around US$1.3 billion by early June 2024.
Apart from this roughly 30% AuM growth for the group during this period, the Canadian operations alone saw AuM growth of around 50-60%, shared ShariaPortfolio Canada Associate Portfolio Manager Zeeshan Janmohamed.
Zeeshan told IFN Investor this trend in recent months was in line with what ShariaPortfolio had tracked on the global front – where it saw the Islamic finance market in general growing at a rapid pace of 15-20% annually, being one of the highest since the firm was established in 2003.
With the Muslim population in Canada seen to be doubling almost every decade – from both immigration influx and births – the firm forecasts continued demand for Shariah investment services spanning retail to high net-worth (HNW) clients.
Hence, ShariaPortfolio operates as a wealth management advisory that also runs investment funds, where retail investors can be passive clients. But Zeeshan said financial planning services are available on request to smaller investors and those just starting on their investing journey.
“HNW clients have more complex needs and we help them on their entire finance journey, in a Shariah compliant manner.” Services to HNW extend from financial planning related to retirement, taxes and succession to optimization of their portfolios.
While the bulk of the firm’s clients are Canadian residents, the firm also gets clients from around the world. Many are passed on by the main US-based ShariaPortfolio outfit – due to restrictions imposed by the US Securities and Exchange Commission for all non-resident investors.
Overseas clients handled by the Canadian operations include those from the UK, UAE, Oman, Pakistan and Nigeria.
Zeeshan said the firm had received more queries after the recent Canadian national budget announcement referred to Halal mortgages – although ShariaPortfolio does not offer such financing.
“It does raise eyebrows that people are very curious to learn more about what we’re doing. Some accountants and lawyers, who are non-Muslims, but were asked by their Muslim clients about avenues for investments that are Shariah compliant.”
