Chatham, N.J.-based DriveWealth is partnering with Aghaz Investments, a Seattle-based robo-advisor specializing in helping users invest in companies that align with the values of Islam.
Like most robo-advisors, users input financial goals and information about themselves, and Aghaz designs optimized portfolios suited to their needs. The difference, in Aghaz’s case, is that these portfolios are also designed to align with Islamic beliefs—for example, screening out companies or ETFs that deal with alcohol.
“At Aghaz, we are passionate about understanding Muslims’ relationship with money and enabling them to save for their financial goals according to their beliefs,” said Khurram Agha, founder and CEO of Aghaz Investments, in released comments. “DriveWealth provides a robust and comprehensive API platform that Aghaz leveraged to launch goal-based investment strategies for our customers in a secure and effective manner.”
Aghaz will also automatically screen based on parameters founded in Islamic law, like screening companies based on the percentage of debt on their balance sheet.
DriveWealth’s portfolio management system, Autopilot, enables Aghaz to offer customized portfolios and allow planning for goals oriented around the practice of Islam, like saving for Hajj and Umrah, the traditional pilgrimages to Mecca, as well as goals like buying a house or a vehicle.
“Autopilot gives our partners the ability to customize the investing experience based on their customers’ investing goals and preferences and rebalance automatically,” said Bob Cortright, founder and CEO of DriveWealth, in released comments. “Aghaz Investments presents consumers with a unique opportunity to reach their financial goals in a way that is personal to them without compromising their values.”
Aghaz will initially target U.S-based Muslim consumers, but the company plans to eventually offer customized, values-based portfolios or anyone wishing to invest on their personal values, including climate change and equal rights.