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

Health care investing in a ‘post-Obamacare’ world

President Trump announced on October 16 that the Affordable Care Act, commonly known as Obamacare, is “dead.” How should investors interpret this new level of uncertainty introduced into the health care system? First, it’s important to clarify that Obamacare is still the law of the land and that taxpayers will pay a penalty if they do not have insurance as the law mandates. But the law has been thrown into disarray, to be sure. Here’s how. Last week, Trump signed an executive order bolstering short-term insurance policies, and later that day announced the end of $7 billion in cost-sharing subsidy payments to health insurance companies. Bipartisan congressional efforts to fix the subsidy program notwithstanding, this is expected to raise premiums in the individual insurance market and have untold effects on industries in the health care sector, which makes up one sixth of the U.S. economy. Hospitals and insurers could take a hit On a structural basis, this news looks bad for hospitals first. Hospital groups could see their bad debts go up if more people opt for “skinny” plans, and traffic could be driven lower very quickly. If behavioral health, substance abuse care, and other essential health benefits are not

October 20, 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

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

Azzad Welcomes Greiner as Lead Portfolio Manager for Azzad Ethical Fund

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