Portfolio Manager Spotlight: Federated Investment Management

In the past three months, we’ve seen bond markets struggle against a backdrop of rising rates and geopolitical tensions. Here’s how Azzad’s fixed-income portfolio manager, Federated Investment Management Company, handles the challenge. In the second quarter of 2018, many bond funds struggled as rates increased. The Federal Reserve raised rates two times in the first half of 2018 and signaled two further hikes to come this year. All of this comes as inflation reached the Fed’s target rate faster than previously forecast and unemployment continued to fall. Given this backdrop of rising rates and geopolitical tensions, many bond funds lost ground over the second quarter, though funds boasting shorter durations and U.S. dollar exposure proved to be the exception to this rule. Not so for the Azzad Wise Capital Fund (ticker: WISEX), which eked out a positive return in a challenging quarter. WISEX is managed by Federated Investment Management Company, a subsidiary of Federated Investors, Inc. Founded in 1955 and based in Pittsburgh, Penn., Federated is widely considered to be a pillar in the money management universe, with $255 billion in assets under management at the end of 2017. Federated took over managing WISEX in 2014. Under its watchful eye,

August 6, 2018 No Comments

First U.S. halal fixed income fund passes $100 million in net assets

FALLS CHURCH, VA, August 31, 2016) – Azzad Asset Management today announced that its flagship mutual fund — the first halal fixed income fund in the United States — crossed the $100 million threshold in August. A socially responsible, interest-free alternative to bond funds, the Azzad Wise Capital Fund (NASDAQ: WISEX) was launched in 2010. In accordance with the internationally recognized standards for halal (Islamically permissible) investing, WISEX aims to produce a return that is comparable to that of bank accounts and other financial instruments without dealing in interest. By investing primarily in sukuk and Islamic bank deposits it provides a viable fixed-income investment option that also contributes to global societal development. “We are grateful to our shareowners who have validated the notion that people and profits can go hand in hand,” said Azzad Vice President Jamal Barmil. “Focused on community development and poverty alleviation, WISEX is an active force for good in the world, in addition to being an important investment option for everyone from impact investors to observant Muslims.” Barmil is also a co-portfolio manager for the fund. In 2014, Azzad hired Federated Investment Management Company, a subsidiary of Federated Investors, Inc., as sub-advisor for the Azzad Wise

August 31, 2016 No Comments

Federated to sub-advise first US halal fixed-income fund

WASHINGTON, D.C., June 17, 2014 — Azzad Asset Management announced today the selection of Federated Investment Management Company, a subsidiary of Federated Investors, Inc., as sub-advisor for the Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first halal, socially responsible fixed-income mutual fund. “We understand the trust given to us as managers of this unique portfolio,” said Ihab Salib, Federated vice president and head of international fixed income, in a statement delivered at the National Press Club. “We look forward to bringing the knowledge and resources of Federated’s global fixed-income team and our firm’s more than half a century of investing experience to this exciting opportunity,” Salib added. Over its four-year history, the Azzad Wise Capital Fund has proven to be an important diversification and income-generating tool for investors who observe the Islamic prohibition on usury, as well as for conventional investors in search of a socially responsible vehicle with exposure to alternatives and emerging market yield. Although it does not deal with debt instruments tied to interest-based lending, the Azzad Wise Capital Fund invests in Sukuk and Islamic bank deposits, which are designed to share profits and generate returns similar to conventional bonds. Azzad representatives noted challenges in the search

June 16, 2014 No Comments

The strategic investor: Using fixed income to meet your financial goals

When evaluating investment performance, investors should consider both return and risk. Unfortunately, many investors stress the importance of the former and neglect the latter. This is particularly true when the markets are recording new highs like we’ve seen lately. The reverse is true when the markets are recording new lows. Investors start to exaggerate their risk tolerance to the potential detriment of reaching their goals. It’s important to understand that return is a marker of gain while risk is the potential for loss. As investors, we get sucked into comparing absolute returns while forgetting how much risk we have to assume in order to get those returns. Investments with different objectives carry different levels of risk. For example, investments in a fixed-income fund, whose objective is income and capital preservation, generally carry less risk than a large-cap growth fund, whose objective is appreciation. When comparing returns, it is important to compare investments to others with similar risks. Risk tolerance versus risk capacity When deciding on how much risk you can take, consider your risk tolerance and risk capacity. Risk tolerance refers to how much risk you want to take. Risk capacity, on the other hand, is how much risk you need to take. Some investors

June 9, 2014 No Comments

First US halal fixed-income mutual fund celebrates 4th anniversary

Shariah-compliant Azzad Wise Capital Fund lets American Muslims ‘invest with faith’ FALLS CHURCH, Va., April 21, 2014 — The Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first halal, socially responsible fixed-income mutual fund turned four years old this month. Falls Church, Virginia-based Azzad Asset Management launched the interest-free fund in 2010. “It wasn’t easy to do, but we were determined to create a fixed-income solution for our clients who wanted to observe the tenets of their faith,” said Bashar Qasem, Azzad president and CEO, on starting the fund. “Today, the Azzad Wise Capital Fund has a following among retail investors and financial advisors alike. They also appreciate the fund’s exposure to emerging markets and an alternative asset class like sukuk.” Over its four-year history, the Azzad Wise Capital Fund has proven to be an important diversification and income-generating tool for investors who observe the Islamic prohibition on the giving and taking of usury, or interest. Although it does not deal with debt instruments created from interest-based lending, the Azzad Wise Capital Fund shares in the gains from its ventures, which include Islamic bank deposits and sukuk. Qasem started Azzad Asset Management in 1997 after discovering a lack of financial solutions

April 21, 2014 No Comments

Azzad Wise Capital Fund Celebrates 3rd Anniversary

FALLS CHURCH, Va., April 23, 2013 — The Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first fixed-income mutual fund that invests in sukuk, turned three years old in April. It is categorized as a short-term bond fund and is designed for capital preservation and income. “We’re pleased to see continued interest in our socially responsible investment approach,” says Bashar Qasem, president and CEO of the fund’s investment advisor, Azzad Asset Management. “And investors are telling us that they appreciate a fund that allows them exposure to both emerging markets and an alternative asset class.” The Azzad Wise Capital Fund invests primarily in notes and certificates issued for payment by international financial institutions and foreign governments in compliance with the investment advisor’s ethical guidelines. Sukuk (Islamic bonds) are among the products held by the Fund. Sukuk are bond-like instruments issued to obtain an up-front payment in exchange for an income stream to be generated from assets held by the issuer. A major distinction between conventional bonds and sukuk is that sukuk are asset-backed and investors hold an equity stake in those assets. “Our shareholders know that we carefully vet each holding before adding it to the fund. This means painstaking research

October 17, 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