About the Fund
OBJECTIVE/STRATEGY
The Azzad Ethical Fund pursues long-term capital appreciation by investing primarily in the common stocks of mid cap companies. It may invest up to 20% in international companies located in emerging markets or developing countries. Using quantitative and fundamental analysis, the investment team seeks to identify fast growing companies with strong business models. These are companies with products or services in high demand, above average and sustainable earnings growth and selling at attractive valuations.
INVESTMENT PROCESS
We believe stock prices follow earnings growth, and that mid-cap companies can grow faster and more aggressively than large ones. Using quantitative and fundamental analysis, our investment process is designed to be disciplined, repeatable and focused on selecting companies with optimal risk/reward profiles.
Read more about our investment process.
PORTFOLIO
Largest Holdings (as of 03/31/2013)*
|
Valmont Industries, Inc. |
2.1 % |
|
Genuine Parts Company |
1.9 % |
|
Timken Company |
1.9 % |
|
Jacobs Engineering Group |
1.8 % |
|
Fluor Corporation |
1.8 % |
|
Green Mountain Coffee Roasters, Inc. |
1.8 % |
|
Nu Skin Enterprises, Inc. Class A |
1.8 % |
|
Mead Johnson Nutrition Company |
1.8 % |
|
Henry Schein, Inc. |
1.8 % |
|
O'Reilly Automotive Inc |
1.7 % |
Sectors*
*Fund holdings and sector allocations are subject to change and are not a recommendation to buy or sell any security.
Risk Measures vs. Benchmark
|
Benchmark |
Russell Midcap Growth TR USD Index |
|
Beta |
0.91 |
|
R-Squared |
94.29 |
|
3-Year Annualized Standard Deviation |
17.07% versus 17.78% |
IMPORTANT FUND DISCLOSURES
The Fund is non-diversified and may invest a larger percentage of its assets in fewer companies exposing it to more volatility and/or market risk than diversified funds. The Fund may not achieve its objective and/or could lose money on your investment in the Fund. Stock markets and investments in individual stocks can decline significantly in response to issuer, market, economic, political, regulatory, geographical, and other conditions. Investments in mid-cap companies can be more volatile than investments in larger companies. Investments in growth companies can be more sensitive to the company’s earnings and more volatile than the stock market in general. Because the portfolio may invest substantial amount of its asset in issuers located in a single country or in a limited number of countries, it may be more volatile than a portfolio that is more geographically diversified. See the prospectus for more details about risks.
Investments in smaller and medium sized companies involve additional risks such as limited liquidity and greater volatility. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower rated and non-rated securities present a great risk of loss to principal and interest than higher rated securities.
Securities of medium-sized companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies. Growth securities may underperform other asset types during a given period. International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. The Fund may not achieve its objective and/or could lose money on your investment in the Fund. Stock markets and investments in individual stocks can decline significantly in response to issuer, market, economic, political, regulatory, geographical and other conditions.
* Previously known as Azzad Ethical Mid Cap Fund.
Portfolio characteristics including holdings, sector allocation, and risk measurements are for illustrative purposes only and may change without prior notification. Portfolio characteristics are intended to provide a general view of the entire portfolio at a certain point in time. Characteristics are calculated using information obtained from various data sources.
The Midcap Growth Index measures the performance of the mid cap growth segment of the U.S. equity universe. It includes those Russell Mid Cap Index companies with higher price to book ratios and higher forecasted growth values. The index is unmanaged and an investment cannot be made directly in this or any other index.
The services and products described on this website are intended to be made available only to persons in the United States. This website should not be considered a solicitation or an offering of any of the Azzad Funds to investors residing outside the United States or where prohibited. Azzad only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements.
Azzad Asset Management is an independent investment advisory firm and adviser to the Azzad Funds. The Azzad Funds are described in a prospectus which contains more complete information about the Funds, including management fees and other charges and expenses.