Equity Trustees super exit sparks Hejaz Islamic Super and Pension closure

Hejaz's Islamic Super and Pension products will be terminated as a fallout from Equity Trustees ditching the superannuation trustee business. The latter, however, says otherwise.

Hejaz Islamic Super had 2600 members and more than $98 million in retirement savings at the end of March, based on APRA's most recent statistics.

On June 12, members' money was moved to cash and investment switching ceased.

Hejaz Islamic Super will cease accepting any contributions or transfers on September 30.

The Hejaz Islamic Division, which operates the pension and super accounts, is set to cease as soon as practicable after underlying investments have been redeemed and members' benefit entitlements have been paid or transferred to another fund as nominated by each member.

Hejaz Islamic Super and Pension are a division of AMG Super or what is now known as Acclaim Super.

As trustee, Equity Trustees is responsible for managing and operating AMG Super including the Hejaz Islamic Division and its investment options.

The super and pension products were invested in the Hejaz Income Fund and the Hejaz Global Ethical Fund. The Hejaz Property Fund was wound up on June 30.

In 2023, Hejaz introduced the first-ever Islamic pension product, alongside a new super offering, advancing its commitment to offer comprehensive wealth services tailored for the Muslim community in Australia.

Hejaz chief executive Hakan Ozyon wrote to members, stressing the decision does not affect the broader business and the group's investment, lending and international expansion plans remain on track.

Furthermore, he said closing the products was a "consequence of circumstances outside Hejaz's control" and was specifically due to the strategic decision by trustee, Equity Trustees, to exit the superannuation sector.

"This is not a decision Hejaz sought, nor is it reflective of the performance, strength or viability of the broader Hejaz Group," he said.

In June, Equity Trustees announced it is ditching the super trusteeship business via its subsidiary Equity Trustees Superannuation Limited (ETSL), after facing continued scrutiny over the Shield and First Guardian collapses.

ASIC is going after Equity Trustees on a number of fronts, which include alleged failures of care, skill and diligence concerning the decision to allow members to invest in First Guardian and Shield.

Equity Trustees contests Ozyon's reasoning."The decision as trustee of AMG Super to close the Hejaz Islamic Super and Pension division was taken to protect the financial interests of members and followed ongoing oversight and review of the governance and operational framework of the Hejaz Division, in line with our responsibilities. The review commenced in August last year and the decision to close those funds to new members has no connection to Equity Trustees' proposed exit from its Super Trustee Services business," an Equity Trustees spokesperson said in a statement to Financial Standard.

Equity Trustees recently concluded a  review of the Hejaz Islamic Division, including its investment options and promoter arrangements.

"At the time this review commenced (on or around August 2025) the division has been closed to new members and the Hejaz Islamic Super and Pension PDS has not been available. However, existing members have been able to keep using the member portal, make contributions, and access other services as usual (as this was considered to be in the best financial interests of existing members). The trustee has determined this is no longer in the best financial interests of existing members," a significant event notice read.

In a statement to Financial Standard, Ozyon said: "Importantly, Mercer also conducted an independent governance review of Hejaz, which was completed approximately seven weeks ago. That review did not identify any major governance issues. It was following the completion of the Mercer review that EQT advised us that the Hejaz superannuation funds would be closed."

"The sequence of events is important. We had recently undergone an independent governance review without any major governance concerns being identified, yet shortly afterwards EQT determined that our superannuation funds would be closed. The timing of EQT's decision also created a significant commercial and operational issue for Hejaz because it did not provide us with sufficient time to identify, undertake due diligence on, negotiate with and transition to an alternative trustee. Had adequate notice been provided, we would have had considerably greater opportunity to protect continuity for our funds and members."

Hejaz's 10 other investment funds, such as the High Income Active ETF, Sukuk Active ETF and Global Ethical Fund, are not affected, as is its lending division.

Furthermore, Ozyon said the group is expanding.

In April 2025, the company announced it received $181.8 million (€100m) in funding from an unnamed UAE-based private wealth group to scale its Sharia-compliant offerings with the cash injection supporting growth in property, auto, commercial and development loans.

"Through Hejaz B.S.C., we have been granted a Category 1 Investment Business Licence (Asset Management) by the Central Bank of Bahrain, providing Hejaz with an important, regulated platform from which to develop investment products and services for the Gulf and broader international Muslim market," he said.

The Halal Money platform is set to expand, while Wahda, an app that brings together communication, social interaction, communities, Islamic tools, events and entertainment, will progressively include payments, games and other digital services.

Ozyon went on to write: "For more than a decade, Hejaz has been committed to providing the Muslim community with high-quality, Sharia-compliant investment and financial solutions. We have built our business around a simple principle: Muslims should have access to sophisticated financial products without having to compromise their faith or values. That commitment has not changed, and it will not change."

"Our community has worked too hard to build credible Islamic financial institutions for misinformation to undermine that progress," Ozyon said.

"Hejaz will always be transparent with our investors and our community. Where there is genuine criticism, we will listen to it. Where improvements are required, we will make them."

Editor's note: This article was updated at 3pm.