What should you do now that the Fed has raised rates again?

In mid-December, the Federal Reserve raised interest rates again, contributing to some of the whipsaw volatility we saw at the end of the year. As an investor, you may be wondering what you should do now. Consider these three things: Review your portfolio Does your asset allocation still match your time horizon, risk tolerance, and investment goals? If so, you might consider leaving things unchanged. It might not sound like a special strategy, but most people miss out on the long-term gains of the market by making moves at the wrong time. Keep on keeping on There will probably be more volatility in store. Embrace it. The S&P 500 stock index has become more turbulent in 12 of the last 14 tightening cycles, including this one. But that shouldn’t mean a whole lot to a long-term investor. Ride the market’s ups and downs, and you could be rewarded for your patience. Diversify Treasury bonds are most sensitive to movements in interest rates. As an alternative form of fixed income investment, consider high-quality trade finance investments and sukuk, both of which offer liquidity and diversification benefits in a rising rate environment. And for some serious diversification, it’s hard to beat participation

January 4, 2019 No Comments

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

In yield-starved world, emerging market debt attracts assets

When Moody’s downgraded Turkey’s credit rating to below investment grade on Friday, September 23, few were surprised when the country’s debt and equity markets sold off the following Monday. More surprising, however, were the results of an auction of new government 10-year notes: the debt offering received the most bids in nearly two years. Turkey’s most successful local bond sale since 2014 indicates what many are calling the bottom of a recent selloff, which began after the attempted military coup in July sent protestors into the streets and bond yields up nearly a full percentage point. Today, with Turkish debt yields near 10 percent, investors are looking at the emerging market nation with new eyes in light of near zero to negative rates in parts of the developed world. This year, more than $4.37 billion has flowed into Turkish sovereign bonds, according to central bank data. The Turkish trend isn’t isolated. Fund data provider Morningstar reports that investors poured $4.2 billion into all emerging market debt funds in July and August. What’s the reason? In a word: yield. “Everyone is looking for yield,” says Jamal Elbarmil, who is the co-portfolio manager of the Azzad Wise Capital Fund, an alternative international

September 28, 2016 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

Azzad Wise Capital Fund increases social impact with trade finance investments

(FALLS CHURCH, Va., February 23, 2016) – Azzad Asset Management today announced that it has further magnified the social impact of its flagship mutual fund by adding investments in ethical trade finance deals. These investments may provide returns for investors while helping underserved populations in Asia and Africa obtain reasonable financing to grow businesses and cooperatives. The Azzad Wise Capital Fund (WISEX) is the first halal fixed-income fund in the United States. By investing primarily in sukuk and community development banks, it can provide an alternative fixed-income investment option that contributes to social development without dealing in interest-based transactions. Through WISEX, the Virginia-based investment firm is participating in a group of syndicated ethical trade finance deals arranged by the International Islamic Trade Finance Corporation (ITFC), an unaffiliated entity. The ITFC, an organization under the auspices of the Islamic Development Bank Group, is charged with advancing trade and improving the economic conditions of people around the world. See: Global Community Investing as an Asset Class (YouTube) The ITFC helps businesses gain better access to trade finance without exorbitant rates of interest or fraud and provides them with the necessary trade-related capacity building tools to help them compete successfully in the global

February 23, 2016 46 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

Azzad Wise Capital Fund wins 2014 Lipper Fund Award

FALLS CHURCH, Va., June 2, 2014 /PRNewswire/ — The Azzad Wise Capital Fund (NASDAQ: WISEX), America’s first halal, socially responsible fixed-income mutual fund, has won the 2014 Lipper Fund Award in the Global Bond (Sukuk) category for the one-year period ending 12/31/13. The Fund’s investment advisor, Azzad Asset Management, made the announcement at their offices in Falls Church, Virginia. In a statement, Azzad said: First, we would like to thank Lipper for this important recognition. Next, we accept this award on behalf of the Fund’s shareholders—those who have not wavered in their commitment to the Azzad mission. As part of that mission to help investors grow their wealth in accordance with their values, the Azzad team will continue to seek out opportunities that reward principled investing. We remain committed to generating returns while managing risks for Azzad Wise Capital Fund shareholders. Over its history, the Azzad Wise Capital Fund has proven to be an important diversification and income-generating tool for investors in search of alternative investments and emerging market yield. It is the first and only halal, socially responsible fixed-income investment option for those who observe the Islamic prohibition on the giving and taking of usury, or interest. Although it

June 2, 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 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