Kayne Anderson Rudnick to Manage Strategy for Azzad Ethical Wrap Program
8/14/2013 11:05:13 AM
(Falls Church, Virginia, 8/14/13) Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Ethical Wrap Program, today announced an agreement with Kayne Anderson Rudnick Investment Management (KAR) to add the Los Angeles-based company to its lineup of institutional money managers. KAR serves as portfolio manager for the small-cap growth strategy in the Azzad Ethical Wrap Program effective August 1st.
The firm’s selection of KAR comes after an exhaustive due diligence and talent search process. Azzad ensures that all prospective managers agree to comply with their socially responsible Islamic investment process, in addition to confirming that they are able to meet strict performance and stock selection criteria. Azzad’s analysts back test and run their proprietary ISFA screening criteria on portfolios to gauge any potential impact on returns before entering into a business relationship. KAR both met and exceeded Azzad’s due diligence requirements for small-cap growth.
In a statement, Azzad said:
We are proud to include Kayne Anderson Rudnick in our lineup of world-class portfolio managers. Their experience, combined with a stellar investment process and solid team, give us every confidence that they will be a great fit for our wealth management clients. Today’s announcement shows our dedication to aligning Azzad Asset Management with some of Wall Street’s most reputable institutional investment managers to manage specific asset classes used in our portfolios. We look forward to working with them as we seek to deliver superior service and results for our clients.
Azzad’s Ethical Wrap Program portfolio managers are renowned industry professionals, each specializing in a particular strategy. In addition to managing outside portfolio managers, Azzad’s internal investment team also runs portfolios in the Ethical Wrap Program, including the real estate investment trust (REIT) portfolio and the halal fixed-income Azzad Wise Capital Fund (NASDAQ: WISEX). All portfolios in the Ethical Wrap Program are constructed using ISFA screens and are monitored for compliance with Islamic investment criteria.
Kayne Anderson Rudnick, one of the boutique investment managers that comprise Virtus Investment Partners, believes that superior risk-adjusted returns may be achieved through investment in high-quality companies with market dominance, excellent management, financial strength, and consistent growth, purchased at reasonable prices. The company, which has nearly three decades of experience, manages a range of portfolios having a common disciplined, high-quality investment philosophy for clients that include corporate and public pension plans, foundations, endowments, brokerage firms, and high-net-worth individuals. The company had more than $7.5 billion of assets under management at June 30, 2013.
Azzad Asset Management, advisor to the Azzad Funds and sponsor of the Ethical Wrap Program, has been committed since 1997 to providing investment services designed to help clients enjoy optimum performance without compromising their values. The firm, based outside Washington, DC, is a registered investment advisor with the SEC.
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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.