Mahaana Wealth has rolled out Pakistan’s first Islamic money market fund under the Securities and Exchange Commission of Pakistan (SECP)’s Digital Asset Management Company (AMC) framework, making it the Republic’s first digital wealth manager to go live.
The money market fund aims to achieve a potential return of up to 20% to retail investors, according to a press statement.
Regulated by the SECP as a non-banking financial company and digital AMC, Mahaana was founded in 2021 by Muhammad Shamoon Tariq, previously a partner in a Swedish investment management firm.
“Our vision is to create a seamless digital investment experience that is both accessible and affordable for all Pakistanis,” shared Muhammad, who added: “With this launch, we aim to revolutionize the asset management industry in Pakistan by offering a comprehensive, automated, and user-friendly platform to investors.”
While not fully-fledged Islamic, Mahaana’s decision to mark its debut with a Halal fixed income fund is a strong signal to the deep potential of Shariah investments in the Muslim nation of over 231 million-strong.
The Islamabad-based firm in August last year raised US$2.1 million in pre-seed funding from Sweden’s Vostok Emerging Finance, SparksLabs Group (out of South Korea and Hong Kong) and IGI Holdings based in Pakistan. In March, IGI Life Insurance appointed Mahaana as its investment advisor to launch a voluntary pension fund, subject to regulatory approvals.
The launch comes in the backdrop of SECP aggressively pushing to develop technology-led investment avenues. To encourage digital investment management, the regulator last year lowered the barrier of entry for digital AMCs. It also issued guidelines for mutual fund digital distribution.
Pakistan is home to an active Islamic non-banking finance institution (NBFI) industry. As at the end of 2022, 34.6% of NBFI assets were Shariah compliant. These include assets across mutual funds, pension funds, real estate investment trust schemes and Modarabas.
As at the 27th April 2023, there are at least 11 fintech start-ups offering Islamic products in Pakistan, according to the IFN Islamic Fintech Landscape.