Azzad’s real estate strategy ranked #1
We’d like to share some good news we received recently about one of the strategies in the Azzad Ethical Wrap Program.
Last week, Azzad’s real estate investment trust (REIT) strategy was ranked #1 out of 52 REIT products for performance in the one-year period ending September 30, 2015.
Informa Investment Solutions, the longest running investment manager database in North America, has recognized Azzad as a “Top Guns” manager for the performance of our REIT portfolio in the last three years.
In addition to its #1 ranking in the REIT category, our REIT strategy ranked in the top 10 for the broader U.S. equity category for the one-year period ending September 30. This means it was among the top 10 best performers out of the 3,124 U.S. stock portfolios that Informa tracks.
A highly concentrated portfolio, our REIT portfolio generally holds fewer than 25 stocks and is managed by an internal investment team at Azzad. After screening the REIT universe according to Azzad’s ethical criteria, the investment team employs quantitative criteria to assess a company’s future earnings growth potential. The portfolio is constructed with a bias to large cap REITs and was launched in 2004. I recommend that most people consider investing in a REIT rather than buying real estate.
Azzad manages eight investment portfolios and two mutual funds. All potential investments are screened in accordance with our halal, socially responsible investing guidelines, which exclude companies whose business practices are deemed harmful to society.
We are pleased to see that our REIT strategy has delivered competitive risk-adjusted returns, not just in its asset class but also when compared to the U.S. stock market as a whole. Recognition like this reminds us that we can achieve results for our clients without compromising our shared values.
Azzad is GIPS® compliant and is verified by a third party auditor. GIPS® holds portfolio managers to ethical standards for fair representation and full disclosure of a firm’s investment performance.
For more information about our REIT strategy including fees and performance, please contact us at (703) 207-7005 or email firstname.lastname@example.org
Here is the technical background on how Informa calculates its rankings:
PSN and Informa Investment Solutions have no affiliation with Azzad Asset Management, but rather evaluate investment managers’ performance on an objective basis. Products must have an R-squared of .80 or greater relative to the style benchmark for the latest five year period ending September 30, 2015. Moreover, products must have returns greater than the style benchmark for the three latest 3-year rolling periods ending September 30, 2015. Products are then selected that have a standard deviation for the five year period equal or less than the median standard deviation for the peer group. At this point, the top 10 information ratios for the latest 5-year period ending September 30, 2015 then become the 6 Star TOP GUNS. This is a highly anticipated quarterly ranking and is widely used by institutional asset managers and investors.
Past performance does not guarantee future results. All investments carry risks, including possible loss of principal.
Standardized rules for reporting investment performance: Azzad Asset Management, Inc., claims compliance with the Global Investment Performance Standards (GIPS). For the periods November 28, 2003 through December 31, 2014, the firm has been verified by Ashland Partners. A copy of the verification report is available upon request.
Azzad Asset Management, investment advisor to the Azzad Funds, is committed to providing investment services designed to help people enjoy optimum performance without compromising their values. Azzad believes that companies operating in ethical lines of business offer relatively less business risk and are in a better position to thrive in the long-term. The firm’s proprietary screening process allows the manager to prudently manage client assets in a manner consistent with their values.
Azzad is a member of the Forum for Sustainable and Responsible Investment, the Interfaith Center on Corporate Responsibility, and the Accounting and Auditing Organization for Islamic Financial Institutions. Based outside Washington, D.C., the firm is a registered investment advisor with the U.S. Securities and Exchange Commission.
Mutual fund investments, including the Azzad Funds, are not FDIC-insured, so you may lose money. The Azzad Funds are available by prospectus only, which includes more information about the Funds’ objectives, risks, charges, and expenses. Please read the prospectus before sending any money. To request a free copy, please call 888-862-9923 or visit azzadfunds.com. Azzad Asset Management is investment advisor to the Azzad Funds, which are self-distributed. Before becoming a client, please read our firm’s ADV Part 2a and wrap brochure. You may request your free copy by calling us at (703) 207-7005.