Large Cap Value Portfolio
Azzad’s large cap value portfolio is managed by SKBA Capital Management.
Part of the Azzad Ethical Wrap Program
A comprehensive halal wealth management solution for high net worth clients, organizations, and business owners.
PERFORMANCE
Quarter and year-to-date returns are not annualized.
Performance inception date is 3/1/2004.
Performance inception date is 4/1/2011. The performance is reported in U.S. dollars. The performance quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Net returns are reduced by all fees, transaction costs and are gross of foreign withholding taxes. Performance includes reinvestment of dividends and other earnings. Gross returns are gross of all fees and transaction costs. For more recent quarter-end performance information, call 888.862.9923. The Russell 1000® Value Index measures the performance of the large cap value segment of the U.S. equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values. The index is unmanaged, and does not reflect the deduction of expenses, which have been deducted from the portfolio’s returns. The index’s return assumes reinvestment of all distributions and dividends; you cannot invest directly in an index.
TOP 5 LARGE CAP VALUE HOLDINGS
as a percentage of the total portfolio
| ConocoPhillips | 5.91 |
| Johnson & Johnson | 4.77 |
| Merck & Co Inc | 4.68 |
| Becton Dickinson & Co | 3.99 |
| Eaton Corp PLC | 3.80 |
As of 9/30/2023. For illustrative purposes only; subject to change. Model portfolio holdings and allocations are subject to change and are not a recommendation to buy or sell any security.
SECTOR WEIGHTS
as a percentage of the total portfolio
As of 9/30/2023. For illustrative purposes only; subject to change. Figures may not equal 100% due to rounding.
WHAT ARE LARGE CAP VALUE STOCKS?
Large cap stocks are shares of companies with large market capitalization (the total market value of all their shares), usually defined as more than $10 billion.
Most of the U.S. equity market is made up of large cap stocks, so they are often considered to be a core investment.
Because of their size and stability, large cap stocks tend to be more stable than their smaller counterparts, though they may not offer the same growth opportunities.
Large cap value companies are believed to have a stock price lower than the actual value of shares of the company.
MEET THE MANAGER
SKBA Capital Management, LLC is the portfolio manager for Azzad’s large cap value strategy. The company was founded in 1989 by a team from the Bank of California’s trust investment department.
SKBA is an investment advisor registered with the SEC and is affiliated with Convergent Capital Management.
As of December 31, 2017, SKBA managed approximately $900 million in assets for pensions, mutual funds, and socially responsible institutional investors.
The firm employs a team approach to investing that brings together more than three decades of experience in investment management.
SKBA’s investment goal is to emphasize long-term wealth accumulation while avoiding risk of a permanent loss of capital. They are disciplined, value managers.
History of the manager was provided by SKBA.
SKBA’s portfolio management team includes:
Andrew W. Bischel, CFA®
Chief Executive Officer, Chief Investment Officer
Kenneth J. Kaplan, CFA®
Chairman
Joshua J. Rothé
President, Director of Research
OBJECTIVE & STRATEGY
Azzad’s large cap value portfolio seeks to achieve a rate of return equal to or greater than the Russell 1000® Value Index after screening for Azzad’s ethical screens.
The manager seeks to achieve long-term capital appreciation by investing in undervalued equity securities that meet Azzad’s ethical values screening criteria.
The strategy uses a bottom-up, fundamental research process and invests in large cap stocks (generally having a market capitalization of greater than $2 billion at the time of purchase) identified by the manager’s relative dividend yield valuation discipline.
Only companies that pay a dividend and have a dividend yield greater than that of the S&P 500 are considered for possible inclusion in the portfolio.
Portfolio Facts
Inception date: April 1, 2011
Asset class: Large cap value
Portfolio manager: SKBA Capital Management
Investment approach: Bottom-up
Benchmark: Russell 1000® Value Index
Azzad Ethical Wrap Program minimum investment: $500,000
For more information: 888-862-9923
INVESTMENT PROCESS
Azzad’s large cap growth portfolio invests primarily in companies valued at $10 billion or higher at the time of investment. Investments are chosen from a universe of securities that pass Azzad’s ethical screens.
Ziegler’s strategy is relatively sector neutral. Its managers seeks to identify undervalued stocks that have already traded at a discount to their fair value. They combine a quantitative model with discounted cash flow analysis to score and rank stocks within the universe.
They then apply a fundamental evaluation to confirm a stock’s attractiveness.
ACCESS THIS STRATEGY
Our large cap value portfolio is offered through the Azzad Ethical Wrap Program.
The minimum initial investment for the program is $500,000.
If you’d like to learn more, please contact us and one of our financial advisors can help you decide if the wrap program is a good fit for your needs.
IMPORTANT INFORMATION
Investing involves risk, including the possible loss of principal. Please read the following important disclosures.
Investing in large cap stocks could fall out of favor and returns would subsequently trail returns from the overall stock market. Investing in dividend yielding stocks could fall out of favor and returns would subsequently trail returns from the overall stock market.
Moreover, to the extent that a portfolio favors a growth style, the risk is that the values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities. To the extent a portfolio uses a value style, the risk is that the market will not recognize a security’s intrinsic value for a long time, or that a stock judged to be undervalued may actually be appropriately priced.
Investments in securities involve risks and there is no guarantee that a strategy will achieve its objectives. As with all stock investments, you may lose money investing in a portfolio. Azzad’s portfolios generally avoid companies in certain economic sectors and businesses due to Azzad’s socially responsible investment restrictions. Therefore, their performance may suffer if these sectors and/or businesses outperform the overall stock market.
Each portfolio is nondiversified and may invest a larger percentage of its assets in fewer companies exposing it to more volatility and/or market risk than a diversified portfolio. Each portfolio is generally available only through one of Azzad’s asset allocation strategies and is not designed by itself to be a comprehensive, diversified investment plan.
All of Azzad’s models are actively managed. Active trading of securities may increase your account’s short-term capital gains or losses, which may affect the taxes you pay. Short-term capital gains are taxed as ordinary income under federal income tax laws. When reviewing your actual performance, holdings and asset allocation, note that different accounts, even though they are traded pursuant to the same strategy, can have varying results. The reasons for this include: i) the period of time in which the accounts are active; ii) the timing of contributions and withdrawals; iii) the account size; iv) the minimum investment requirements and/or withdrawal restrictions; and v) the actual fees charged to an account. There can be no assurance that an account opened by any person will achieve performance returns similar to those provided on this page.
You should consider investing in the Ethical Wrap Program if you are looking for long-term returns and are willing to accept the associated risks. The Ethical Wrap Program is made available through a Wrap Brochure which contains important information about our firm, strategies, risks and conflicts of interest. Please request a copy of our Wrap Brochure, Part 2A of the firm’s Form ADV and your representative’s Part 2B by calling 888.862.9923 before investing in the Wrap Program or opening an account with us.
Azzad Asset Management is an independently registered investment adviser. Azzad Asset Management claims compliance with the Global Investment Performance Standards (GIPS®). To obtain GIPS-compliant performance information including a GIPS Composite Report for the firm’s strategies and products, please call 888.862.9923 or send an email to info@azzad.net.