Request to add the Azzad Funds to your 401(k)
8/15/2013 10:13:53 AM
Dear Benefits Director,
Money managers are increasingly incorporating social, environmental, corporate governance, and faith-based screens in their investment decisions. According to the US Social Investment Forum, nearly one out of every nine dollars under professional management in the United States was involved in some form of sustainable and responsible investing—that’s 11.3% of the $33.3 trillion in total assets under professional management in the U.S.*
In keeping with this trend, I would like to request that our company include the Azzad Ethical Fund (NASDAQ: ADJEX) and the Azzad Wise Capital Fund (NASDAQ: WISEX) as investment options in our retirement plan. These mutual funds invest in line with socially responsible principles. Both the equity Azzad Ethical Fund and the fixed-income Azzad Wise Capital Fund avoid investing in companies that profit from alcohol, tobacco, meat products, pornography, gambling, and weapons of mass destruction. The Funds also avoid investing in financial companies—and businesses with significant debt. In addition, the international income-focused Azzad Wise Capital Fund avoids investing in debt of any kind. Instead, it uses a combination of alternative investments and dividend-paying stocks to create a stream of fixed-income payments for shareholders.
I believe that the inclusion of the Azzad Fund’s in our plan would likely make a significant difference in the retirement that I can look forward to. Currently, none of our plan’s choices offer me an investment option that reflects my religious and ethical beliefs, preventing me from fully participating. Both Azzad Funds incorporate socially responsible, faith-based screens in their investment process. They reflect my values and would allow me the opportunity to take advantage our company’s retirement plan.
The Funds are already available through several brokerage platforms, making it easier to add to our company’s investment options. I believe it is a fiduciary obligation of our plan’s trustees to ensure that the available investment options provide for a reasonable accommodation of participants’ faith-based investment guidelines.
I am happy to provide more information, if needed. Thank you for your attention to this matter.
* 2012 Report on Sustainable and Responsible Investing Trends in the United States. US SIF, the Forum for Sustainable and Responsible Investment, is the nonprofit membership association for the responsible investment industry in the U.S. (www.ussif.org).
Opinions expressed are those of the author or fund manager, are subject to change, are not guaranteed and should not be considered recommendations to buy or sell any security and should not be considered investment advice.
Fund holdings and sector allocations are subject to change and are not a recommendation to buy or sell any security. Click here for Azzad Ethical Fund current top 10 holdings. Click here for the Azzad Wise Capital Fund current top 10 holdings.
Past performance does not guarantee future results.
The Azzad Ethical 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 that 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.
The Azzad Wise Capital Fund is non-diversified with a high concentration of securities in the financial sector which can expose the Fund 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. The Fund mainly invests in securities issues by foreign entities which expose the Fund to country specific risks such as market, economic, political, regulatory, geographical, and other risks. The Fund intends to invest in certain instruments that may be illiquid. As a result, if the Fund receives large amount of redemptions, the Fund may be forced to sell such illiquid investments at a significant loss to be able to meet such redemption requests. See the prospectus for more details about risks.