Income and capital preservation

AZZAD WISE CAPITAL FUND

  • The Azzad Wise Capital Fund is the first halal, socially responsible fixed income fund in the United States. By investing primarily in sukuk and Islamic bank deposits, it provides a viable fixed-income investment option that also contributes to global societal development.
  • It trades on the NASDAQ exchange under the ticker symbol WISEX. WISEX is categorized by Morningstar as a short-term bond fund.
  • WISEX is sub-advised by Federated Investment Management Company, one of the largest investment managers in the United States.
  • The Fund’s objective is long-term fixed income and capital preservation. It aims to produce a return that is comparable to the return on bank accounts and other financial instruments without dealing in interest.

What does WISEX invest in?

The fund pursues long-term income and capital preservation by investing primarily in sukuk (Islamic bonds) and interest-free bank deposits and notes issued primarily by Islamic banks in emerging markets. A small portion of the fund’s assets may be invested in dividend-yielding stocks. Using a thorough due diligence process, the investment team seeks to identify fixed-income investments that are suitable for more conservative investors and in line with the advisor’s investment philosophy.

PORTFOLIO: Largest Holdings (as of 09/30/2016)*

Deposits and Notes

Kuveyt Turk Bank 6.2%
Turkiye Finans Bank 6.0%
ABC Bank NY 5.9%
May Bank 4.9%
Albaraka Turk Bank 2.4%
QIB (UK) 2.0%
Mashreq Bank 1.1%

Sukuk

ADCB Sukuk 4.1%
DIP Sukuk 2.9%
Aldar Properties Sukuk 2.8%
Indonesia Sukuk 2.7%
Majid Al Futtaim Sukuk 2.7%

Allocation*

 

*Fund holdings and allocations are subject to change and are not a recommendation to buy or sell any security. Figures may not equal 100 due to rounding.

Allocation*

*Fund holdings and allocations are subject to change and are not a recommendation to buy or sell any security. Figures may not equal 100 due to rounding.

Credit Quality/Maturities

Quality* % Maturity* %
AAA 5% Equal or less than 3 months 22%
AA 0% Between 3 months-1 yr 32%
A 24% Between 1-2 yrs 8%
BBB 56% Between 2-5 yrs 24%
Not rated 6% Between 5-10 yrs 14%
Below investment grade 9% Between 10-12 yrs 0%
Total 100% Total: 100%

*Fixed income and cash. Adjusted weights.

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Fund Facts

Inception Date: April 1, 2010
CUSIP: 055060305
Ticker Symbol: WISEX
Asset Allocation: Fixed Income
AUM as of 9/30/16: $102,532,190.41

Benchmark: BofAML US Corp & Gov 1-3 yr
Minimum Investment: $4,000
Retirement & College Accounts: $4,000
Add’l automated min. investments*: $300

Shareholder Services: 888-350-3369

2016 Distributions

As a shareholder, you are entitled to your share of a Fund’s net income and capital gains on its investments. A Fund is required to pass through substantially all of its earnings along to its investors as distributions. When a Fund earns dividends from stocks and distributes these earnings to shareholders, it is called a dividend distribution. A Fund realizes capital gains when it sells securities for a higher price than it paid. When net long-term capital gains are distributed to shareholders, it is called a capital gain distribution. Net short-term capital gains are considered ordinary income and are included in dividend distributions.

The Funds distribute capital gains, if any, annually. The Azzad Wise Capital Fund (WISEX) distributes dividends, if any, monthly, and the Azzad Ethical Fund (ADJEX) distributes dividends, if any, annually.

Month $/Share
January 0.00419
February 0.00377
March 0.01606
April 0.00604
May 0.00453
June 0.01138
July 0.00742
August 0.01003
September 0.01023
IMPORTANT INFORMATION

Before investing, carefully consider the Fund’s investment goals, risks, charges and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or download them from our literature center. Read them carefully before investing.

Investments carry risks, including possible loss of principal. Portfolios investing in sukuk have the same interest rate, inflation, and credit risks that are associated with bonds. The value of sukuk will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Unlike sukuk, sukuk funds have ongoing fees and expenses. Investments in the Fund are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity. Investments in equity securities are subject to additional risks, such as greater market fluctuations. Additional risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks.

Credit quality ratings for Azzad Wise Capital Fund used ratings from Moody’s Investors Service. Where Moody’s ratings are not available, we have used Standard & Poor’s ratings. Where neither rating is available, we have used ratings from other NRSROs.

A bond credit rating assesses the financial ability of a debt issuer to make timely payments of principal and interest. Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality. Ratings of BB, B, CCC, CC, C and D (the lowest) are considered below investment grade, speculative grade, or junk bonds.

There is no guarantee that the Fund will meet its investment objectives. Funds invested in a limited number of holdings may expose an investor to greater volatility.

Please see our glossary for a definition of terms.

Azzad Asset Management is the investment advisor to the Azzad Funds. The Azzad Funds are self-distributed.