Sukuk bonds: Where the smart money is headed?

In today’s upside-down economic environment, tepid stock markets and negative interest rates in parts of Europe and Asia mean that neither equities nor bonds has provided the kind of performance many would like. Where can one look for an acceptable return? The answer may be sukuk bonds. Global dollar sales of sukuk climbed to $14 billion this year, a record for the period. Issuance over the past several years has grown to meet the demands of not only Muslim investors in Gulf Cooperation Council (GCC) nations and parts of Asia, but also institutional investors in the developed world. This unconventional instrument, which behaves in ways similar to a conventional bond in terms of payment priority but has an Islamic structure, is now basking in the spotlight as more conventional players start to pile in. Commodities help sukuk issuances Increased attention paid to sukuk can be traced back to the recent drop in commodity prices. Export-oriented countries in need of U.S. currency to manage widening current account balances are often forced to borrow in dollars. That means more dollar-denominated sukuk issuances from those countries. Because of a flood of sales, yields have climbed in recent months to entice buyers. According to

August 16, 2016 No Comments

Turkey’s failed coup creates an unlikely winner: Islamic banking

As the Turkish people pick up the pieces following the attempted military takeover of their government on June 15, speculation about the country’s economic future is rampant. From a slump in capital and credit markets to a downgrade in the country’s sovereign credit rating, many pundits are bearish about the long-term prospects for the republic. At least one sector, however, is standing strong after the coup attempt: Islamic banking. As a dual financial system that practices both conventional and Islamic finance, Turkey was introduced to Islamic lenders (or “participation banks,” as they’re known there) at the end of 1980s, and the sector grew rapidly by the beginning of the 2000s. In 2005, the Islamist-oriented government officially recognized them and offered state guarantees on deposits, attracting interest from religious depositors and nearly doubling the industry’s market share by 2013. Growth over the last few years has also been compelling. The Participation Banks Association of Turkey reveals that total assets in five Turkish Islamic lenders grew to 120.3 billion Turkish lira ($33.6 billion) in 2015, an increase of more than 15% from the previous year. And there is more room for expansion, considering the size of Islamic lenders as compared to the

July 27, 2016 No Comments

Azzad participates in US-Saudi investment forum

WASHINGTON, Sept. 4, 2015 — A delegation from Azzad Asset Management joined representatives from the Saudi Arabian and U.S. business communities in Washington, D.C., for a conference designed to foster trade ties between the two nations. Azzad, a leader in socially responsible halal investing in the United States, has investments in Saudi Arabia through its international fixed-income fund. The U.S.-Saudi Investment Forum, organized by the Saudi Arabian General Investment Authority in conjunction with the Council of Saudi Chambers and the U.S.-Saudi Business Council, served as an opportunity for executives and officials to explore investments in energy, transportation, health, education, and financial services. Signing ceremonies between U.S. and Saudi businesses were a feature of the event. “As an interested party that has found ample investment opportunities in the Kingdom of Saudi Arabia, Azzad is pleased to take part in this important gathering of dignitaries and captains of industry,” said Azzad President and CEO Bashar Qasem, who attended the conference. During a morning session, Mr. Qasem signed a memorandum of understanding with Ziad Al-Bassam of the Al-Bassam Investment Group, to formalize an agreement between Azzad and Al-Bassam to share financial expertise and to locate investment opportunities in the Middle East. Azzad is

September 4, 2015 No Comments

Azzad meets with South African ambassador about Islamic finance

(Falls Church, Virginia, 7/24/13) – Representatives from Azzad Asset Management met today with His Excellency Ebrahim Rasool, Ambassador of the Republic of South Africa to the United States, at his offices in Washington, D.C. Azzad requested the meeting to discuss potential investment in South Africa as part of the portfolio held by the Azzad Wise Capital Fund. The Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first halal fixed-income mutual fund, invests in Sukuk, or asset-based Islamic bonds, as well as deposits and notes from Islamic banks that comply with specific socially responsible and halal financial guidelines. In recent years, South Africa has made strides in Islamic finance. The nation has one full-fledged Islamic bank, and its four largest conventional banks offer Islamic financial products, including vehicle and asset financing. In addition, pension funds offer participants Islamically compliant investment options. During the meeting, Ambassador Rasool noted that despite representing only 3% of the population, the Muslim community has leveraged its 300-year history in South Africa to persuade the country’s major financial institutions to open their doors to Islamic finance. He also explained that South Africa’s robust regulatory and legislative structures, strict risk management frameworks, as well as governance and compliance

July 24, 2013 No Comments

Azzad Wise Capital Fund Now on Schwab’s Mutual Fund OneSource® Platform

(Falls Church, Virginia, 5/30/13) – The Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first halal, socially responsible fixed-income mutual fund is now available to investors through the Mutual Fund OneSource® program offered by Charles Schwab and Co., Inc. The fund invests in sukuk, or asset-backed Islamic bonds, as well as deposits and notes from Islamic banks that comply with specific socially responsible and halal financial guidelines. “We continue to work with our strategic partners to make sure the fund is available to everyone who wants it, however they want it,” said Azzad Asset Management President and CEO Bashar Qasem, whose firm serves as investment advisor to the Azzad Wise Capital Fund. “The added reach that Schwab offers is a plus for our investor base, which consists of both individual and institutional investors looking for exposure to emerging markets like Malaysia, Indonesia, Turkey, and the Gulf, in addition to an alternative investment that doesn’t correlate with traditional asset classes.” Adds Qasem, “We’re pleased that Schwab investors can buy the fund through the no-transaction-fee and no-load OneSource program.” Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Ethical Wrap Program, has been committed since 1997 to providing investment services

May 30, 2013 No Comments

Azzad creates opportunities by cutting through red tape

Opening up new markets to investors isn’t easy. If you don’t believe me, just ask Jamal Elbarmil. “No one is willing to cut through all the red tape to invest in Islamic banks,” says the longtime Azzad Wise Capital Fund portfolio manager. “No one except Azzad.” Elbarmil starts his Tuesday with a cup of coffee in one hand and a manila folder in the other. Two computer monitors glow behind him. He’ll turn his attention to those shortly. (As usual, he’s got a long day ahead of him.) Right now, what’s holding his attention is a notarized copy of Azzad Asset Management’s articles of incorporation, not the usual analyst reports, balance sheets, and income statements that take up a lot of his time. But this diversion is a necessary evil, an additional responsibility for the unconventional money manager. He’s making sure everything is in order before the folder is sent to Turkey. Its contents represent one of the many hurdles in a miles-long race to get a piece of the growing Islamic banking market for his fund, which turned three-years old in April. For Elbarmil to invest in an Islamic bank deposit or note, “there’s a lot of red tape,”

May 23, 2013 No Comments

Azzad Hosts Leader in Turkish Finance

(Falls Church, Virginia, 5/6/13) – Azzad Asset Management recently hosted Dr. Mehmet Yesilyaprak of Turkiye Finans Bank at its headquarters in suburban Washington, D.C. Yesilyaprak gave the Azzad staff an update on the banking sector in Turkey and met afterwards with Azzad management to discuss areas of future collaboration. The Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first halal fixed-income mutual fund, invests in deposits and notes from Turkiye Finans Bank, among other Islamic banks that comply with specific socially responsible and halal financial guidelines. The Fund also invests in sukuk, or asset-backed Islamic bonds. As of March 31, 2013, deposits from Turkiye Finans Bank represented approximately 13% of the Fund’s holdings. Welcoming Dr. Yesilyaprak to Azzad, Portfolio Manager Jamal Elbarmil noted the positive impact that Turkish participation (Islamic) banks have on social institutions and small business owners. “Profit and loss sharing accounts are returned to the real sector through investment in land, mortgages and microfinance,” he said. “All parties share in the risk and reward of such endeavors.” In a recent shareholder letter, Elbarmil highlighted the contribution of Turkey’s Islamic banking sector to the Azzad Wise Capital Fund’s first quarter results, stating that exposure to bank deposits from the

May 6, 2013 No Comments