Praemium will launch an Australian Sharia-compliant service in the next quarter after working with the Islamic Bank of Britain to introduce the UK's only Sharia-compliant retail Discretionary Portfolio Service.
Praemium, a financial portfolio administration provider, said it hopes to introduce a Sharia-compliant product in Australia in the new year with discussions already under way.
"There is interest in Sharia investments globally, and separately managed accounts (SMA) are particularly well suited due to their transparency," said Arthur Naoumidis, managing director of Praemium.
This transparency is an important feature for investors to ensure Sharia compliance, according to Naoumidis.
The Australian fund will have the same features as the UK version, but controlled by a committee of Islamic scholars that determine whether investments are compliant, which will be done by an Australian or Asian group.
"It will certainly have an Australia and Asian focus," said Naoumidis, "Although we have also now received interest from New Zealand as they have a need for us too."
The UK service will be based on Praemium's DPS Select service, offering investors the opportunity to invest in Sharia-compliant investment options.
Praemium supplies administration services, SMAs and wrap technology to over 500 financial institutions and intermediaries and has $42.2 billion of assets in Australia.