talal yassine - 2015 aicd conference - islamic finance

Crescent WealthAustralia’s leading Islamic super and investment company

Crescent Wealth Institutions

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• Australia’s Islamic superannuation and investment company

• We partner with leading investment managers in Australia and abroad to

develop products for retail and institutional investors

• Offices in Sydney, Melbourne and Kuala Lumpur

• A$100 million in funds and assets under management, aiming for over $250 million in FUM & AUM by end of CY 2015.

“The world’s first private Islamic pension fund”

Five Pillars of Islamic Finance

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1. The ban on interest

2. The ban on uncertainty or speculation

3. The ban on financing certain economic sectors

4. The profit- and loss-sharing principle

5. The asset-backing principle

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Qualitative filters

Financial Services

(conventional/leverage)Weapons

Tobacco Pork

Alcohol Gambling

Adult Material Morally hazardous media

Quantitative filters

Gearing 30% of Assets

Cash& STI 30% of Assets

Receivables 70% of Assets

Tainted Income 5% of Income

Investment GuidelinesInternationally accepted Islamic standards

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2015 2022 2030

Billions

Global Muslim Population Growth

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5.4%OIC

3.6%ROW

3.9%BRIC

Rate of growth 2015 - 2019

GDP (current US$)

Source: Standard & Poor’s (S&P), Ernst & Young7

$1.8trillion

Total size of Islamic banking market in 2014*

Why does Islamic finance matter?

Growing rapidly in volume and geographical coverage…

Source: ABS 2012, Pew Research 20119

2.0

The Australia Story

$TRILLION

0.5MILLION

80PERCENT

The size of Australia’s funds management market

Muslims in Australia Growth in Australian Muslim population to 2030

Source: ABS 2012, Pew Research 201110

Value of pensions held by Australian Muslims in

2020

$20Value of pensions held by Australian Muslims in

2013

BILLION

$35BILLION

Value of Australia Islamic super and investment market

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Up to 40% of the total assets of a ‘balanced’ superannuation fund can be invested in assets prohibited by Islamic investment principles1

Source: Association of Superannuation Funds of Australia and Crescent Wealth estimates.

Point of difference

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Malaysia case study: Islamic finance sector

10-12%(2020 forecast contribution)

Source: Islamic Banking and Finance Institute Malaysia (IBFIM) / Nominal GDP calculation

8.6%(2010 contribution to Nominal GDP)

76%

24%

ISLAMIC BANKING MARKET SHARE

Conventional Islamic

$148b

Crescent Wealth Institutions 13

Relationship building blocks

Progress strong, yet significant opportunities remain untapped…

Education

Malaysian students

in Australia

9th

Australia’s 10th most

important trade partner

3,600 Aussie companies

exporting to Malaysia

300,000

Islamic finance Security

AgricultureResources

The opportunity for you

� Large growth market (~20% p.a. growth)

� Market maturing in depth and sophistication

� The majors are jumping on board…

Questions