Islamic Finance provider Hejaz Group has launched Australia’s first Sukuk active ETF, enabling investors to access a Shariah-compliant bond alternative product.

The Hejaz Sukuk Active ETF (Managed Fund) (SKUK) will enable retail, wholesale, and institutional investors in Australia and New Zealand to invest in a shariah-compliant fixed-income asset that is comparable to a traditional bond ETF.

SKUK is also comprised of a diversified portfolio of Shariah-compliant Sukuk investments from the Bloomberg Global Aggregate USD Sukuk Index. Hejaz Asset Management is targeting a return of 8 per cent per annum, after fees.

Equity Trustees will be trustee for SKUK, with Apex Financial Services Group acting as administrator and custodian, and Nine Mile as the market maker.