Why did the price of my mutual fund drop in December?

For 2019: The Azzad Ethical Fund (ADJEX) will distribute capital gains to its shareholders on December 18, 2019. Shareholders may see the fund’s share price drop for a couple of days while the capital gains are processed and distributed. The post below should help explain this standard procedure of capital gains distributions for mutual funds in the U.S. What are mutual fund capital gains distributions? When a mutual fund realizes capital gains, such as from stock dividends or from selling holdings that had increased in value, the fund must distribute those gains periodically among all fund shareholders. If you own shares in a mutual fund, you will receive a portion of those gains for each share of the fund you own. While the capital gains are being distributed to the fund shareholders, the fund’s net asset value (NAV) — sometimes called the share price — will be lower. But this NAV drop doesn’t mean that the funds lost money because of this event, so there’s no need to worry. Pooled investments like mutual funds are supposed to work this way. When a distribution occurs, a fund’s share price drops by the per-share amount of the distribution. If you’re like most

November 19, 2019 No Comments

Why your mutual fund dropped on a day the market was up

On Monday, December 18, the Azzad Ethical Fund (ADJEX) made a capital gains distribution to all shareholders, which resulted in an adjusted net asset value (share price) that is lower than it was as of market close on Friday. This is something that all mutual funds do. ADJEX didn’t “tank,” so there’s no need to worry; pooled investments are supposed to work this way. When a fund distributes gains, its share price drops by the per share amount of the distribution–but it’s to your benefit. If you’re like most ADJEX shareholders who have their accounts set to reinvest gains and dividends, you just got more shares of the fund, but your account value remains steady. Why did this happen? Mutual funds are required to work this way to qualify for special tax rules available for registered investment companies. They must pay net income and realized capital gains to their shareholders at least annually. Sometimes this happens monthly or quarterly, but it’s often once a year during December. The reason that distributions occur is because the fund has made money for investors, which is a good thing. Do I have to pay taxes on this? A mutual fund’s distribution of capital

December 19, 2017 No Comments

Azzad Ethical Fund becomes first halal enhanced index fund in U.S.

(Falls Church, VA, May 15, 2017) — Investment advisor Azzad Asset Management has announced a new investment strategy for its mid-cap growth Azzad Ethical Fund (ticker: ADJEX) that makes it the first halal mid-cap enhanced index fund in the United States. Launched in 2000, ADJEX is an ethically screened mid-cap growth mutual fund sub-advised by Chicago-based Ziegler Capital Management. Last month, Ziegler and Azzad implemented an adjusted investment strategy for the fund that increases the number of stocks in the fund and reduces its expected tracking error. “We still hold more of stocks we believe have the potential to outperform, but in smaller increments and with greater diversification,” said ADJEX Portfolio Manager Christian Greiner, CFA, of Ziegler Capital Management. “We believe this will result in lower day-to-day variation in the fund’s performance from the benchmark without sacrificing the potential to outperform the benchmark over time.” “We wanted the primary driver of the fund’s returns to be the firm’s ethical screening criteria rather than larger positions in individual stocks,” said Azzad Vice President Jamal Barmil. “An enhanced indexing strategy allows us to do that. As a result, the fund’s exposure is now spread across a larger number of ethically-screened stocks with

May 15, 2017 No Comments

Azzad Welcomes Greiner as Lead Portfolio Manager for Azzad Ethical Fund

(Falls Church, Virginia, 6/5/13) Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Ethical Wrap Program, announced that Christian Greiner has assumed day-to-day portfolio manager duties for the Azzad Ethical Fund (NASDAQ: ADJEX). Greiner’s promotion to lead portfolio manager comes after former manager Joseph Pappo retired from the fund’s sub-advisory firm, Ziegler Lotsoff Capital Management (ZLCM), in May. Greiner, who has been with ZLCM since 2003, has a long history with the fund, providing fundamental research for the portfolio management team and participating in the stock selection decision making process. He has also worked on the quantitative side, contributing to stock scoring model research. Previously, Greiner held positions with Checkfree Investment Services and Northern Trust. At ZLCM, he developed a proprietary system aggregating investment community sentiment for individual stocks, worked on quantitative tax-effective investment strategies, and managed long-short equity and other specialized equity products. Greiner holds a B.S. in Finance from DePaul University and an M.B.A from the University of Chicago. He has earned the Chartered Financial Analyst (CFA®) designation and is a member of the CFA® Society of Chicago. Greiner will be assisted on the portfolio by Donald Reid, Ph.D., in addition to a new research

June 5, 2013 No Comments