Islamic Finance

Canadian fund distribution platform launches first Islamic investment product

Canadian fund distribution platform NEO Connect has onboarded its first Islamic investment product.

The Shariah-compliant Manzil Mortgage Investment Fund, from Islamic mortgage lender Manzil, is on NEO Connect and is also listed on DealSquare, Canada’s first centralised platform for private placement offerings, NEO said in a statement on Tuesday (Nov 26).

NEO Connect is Canada’s first distribution platform to allow investment products not listed on an exchange to be purchased and redeemed. It was launched in 2016 and has helped fund providers raise nearly $1 billion across 70 PTFs, it said.

Manzil Co-founder & CEO Mohamad Sawwaf said Manzil’s partnerships with NEO and DealSquare will give investors “the most efficient access” to the company’s fund.

 “The Canadian value of Shariah-compliant mortgages in 2017 was estimated at $2 billion, of which we have captured $300 million on our waitlist, and growing at $5 million per week, proving there is a significant demand for Halal financing and investment products,” said Mohamad.

Manzil was established in 2017 and has raised 1.2 million Canadian dollars ($900,000) in one pre-seed funding round so far, according to Crunchbase data. It uses murabahah mortgage contracts.

Toronto-based Manzil’s mortgage products are certified Shariah-compliant by the Islamic Finance Advisory & Assurance Services following Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI) standards.

© 2019 All Rights Reserved