Hejaz Property Fund Active ETF (HJZP) Removed from ASX Following Responsible Entity's Request

Revocation of HJZP Trading Admission Effective 1 July 2026

The Hejaz Property Fund Active ETF, listed on the ASX under ticker HJZP, had its trading admission formally revoked as of the close of trading on Wednesday, 1 July 2026. ASX Supervision confirmed that from this date onwards, no further on-market trading of HJZP units will be possible via the Australian Securities Exchange.

This revocation pertains specifically to the fund’s listing status and was issued by ASX Supervision in its role as market operator. For holders of HJZP units, this means the standard exchange-based mechanism for buying or selling units through brokerage accounts will no longer be available. The update did not provide details on any forthcoming wind-up, redemption, or restructuring timeline or process for the fund’s assets.

Equity Trustees Limited’s Role in Initiating the Delisting

The request to revoke HJZP’s trading admission was made by Equity Trustees Limited, acting as the responsible entity for the fund. As responsible entity, Equity Trustees Limited holds legal and regulatory responsibility for managing and administering the fund on behalf of unitholders. Under Australian financial services regulations, the responsible entity has authority to make decisions concerning the ongoing operation of a managed investment scheme, including decisions that may lead to closure or winding up.

The revocation request was submitted pursuant to ASX Operating Rule Schedule 10A.3.1.(g), which governs the removal of exchange-traded managed funds from trading. Notably, the action was driven by the responsible entity rather than the original fund manager. The company did not disclose the reasons behind Equity Trustees Limited’s decision to seek revocation at this time.

Implications of ASX Operating Rule Schedule 10A.3.1.(g) for HJZP Investors

ASX Operating Rule Schedule 10A regulates the admission and quotation of exchange-traded products, including active ETFs like HJZP. Rule 10A.3.1.(g) provides a formal mechanism for revoking trading admission, including upon the responsible entity’s request. This ensures an orderly and compliant removal of a product from the ASX when deemed appropriate by the responsible entity.

For unitholders, this means the delisting is a definitive and regulated removal from the exchange, distinct from a temporary trading suspension. Investors should seek independent financial and legal advice to understand the implications for their holdings, as the update did not specify whether formal redemption or asset distribution processes will follow.

Overview of the Hejaz Property Fund Active ETF and Its Shariah-Compliant Focus

The Hejaz Property Fund Active ETF operated under the Hejaz Financial Services group, known for Islamic finance and Shariah-compliant investment offerings in Australia. The fund provided exposure to property-related assets aligned with Islamic finance principles, which exclude interest-bearing instruments and certain other asset types. Unlike passive ETFs, HJZP was actively managed.

The Shariah-compliant ETF segment is a niche yet growing part of the Australian financial market, catering to Muslim investors and others seeking ethical investments consistent with Islamic law. The removal of HJZP reduces the number of such products accessible via the ASX. The update did not clarify the future of the fund’s underlying property assets or whether a replacement product is planned.

Immediate Effects on HJZP Unitholders Post-Delisting

With trading on the ASX no longer possible, unitholders face challenges regarding liquidity and exiting their positions. Selling units through brokerage platforms is no longer an option after 1 July 2026. Depending on the fund’s constitution and decisions by the responsible entity, unitholders may be able to submit off-market redemption requests, though no such procedures were detailed in the update.

Unitholders are advised to contact Equity Trustees Limited or consult financial advisers to understand available options. Typically, in cases of ETF delisting and wind-up, unitholders receive distributions representing the net asset value of their units after asset liquidation and settlement of fees or liabilities. However, no information on timelines, net asset values, or distribution arrangements was provided.

ASX Supervision’s Formal Role in the Revocation Process

The revocation notice was issued by ASX Supervision, the ASX division responsible for market oversight and enforcement of operating rules. Their involvement indicates the revocation followed a formal regulatory process rather than an informal action by the fund manager. ASX Supervision’s publication of the notice ensures transparency for all market participants, including brokers, custodians, and retail investors.

The public notice specifies the effective date and governing rule for the revocation, providing essential information for administrative and settlement purposes. No further details beyond the revocation, requesting party, and applicable rule were included.

Broader Implications for Australia’s Active ETF Market

The removal of HJZP highlights that not all exchange-traded funds maintain long-term commercial viability on the ASX. The active ETF market in Australia has expanded significantly, with numerous managers launching actively managed products across asset classes and themes. However, funds lacking sufficient assets under management or trading volume may face commercial challenges leading to delisting.

The delisting of a Shariah-compliant property fund is particularly notable for the Islamic finance sector in Australia, given the limited availability of such products. The update does not clarify whether the closure relates to the fund’s mandate, performance, asset base, or other commercial factors. No data on assets under management, unit price, or performance history was disclosed.

Recommended Actions for HJZP Investors Following Trading Halt

With HJZP no longer trading on the ASX, unitholders should promptly contact Equity Trustees Limited to seek information on redemption options, timelines, and potential distributions. Reviewing the fund’s product disclosure statement (PDS) and constitution is also advisable, as these documents outline unitholder rights in wind-up scenarios.

Consulting licensed financial advisers is recommended, especially for investors holding HJZP within broader portfolios or superannuation accounts. Tax implications related to redemptions or distributions may vary based on individual circumstances. Investors should await further official communications from Equity Trustees Limited regarding wind-up procedures and asset distributions, none of which were detailed in the update.

Equity Trustees Limited’s Fiduciary Responsibility to Unitholders

As responsible entity, Equity Trustees Limited has fiduciary duties under the Corporations Act 2001 (Cth) and the fund’s constitution to act in unitholders’ best interests during the fund’s wind-up or closure. This includes ensuring assets are properly liquidated and unitholders receive their proportional share of net assets after costs and liabilities.

Equity Trustees Limited operates independently from Hejaz Financial Services, the group associated with the fund’s investment mandate. It holds primary legal responsibility for the fund’s administration and safeguarding unitholder interests throughout this transition. Investors should closely monitor official communications from Equity Trustees Limited for authoritative guidance on next steps.