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, Islamic bank deposits, and trade finance contracts, 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), interest-free bank deposits and notes issued primarily by Islamic banks in emerging markets, and trade finance contracts. 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 9/30/2018)*

Deposits and Notes

QIB (UK) 6.18%
Qatar National Bank (UK) 5.85%
Gulf International Bank (UK) 5.80%
May Bank 5.02%
ABC Bank NY 4.57%

Sukuk

Qatar Telecom Sukuk 3.29%
Goldman Sachs Sukuk 3.28%
Petronas Global Sukuk 3.25%
Emaar Sukuk 2.95%
Aldar Properties Sukuk 2.80%

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 4.3% Three months or less 31.9%
AA 9.4% Between 3 months – 1 yr 29.60%
A 29.8% Between 1-2 yrs 12.30%
BBB 34.4% Between 2-5 yrs 7.60%
High yield 13.8% Between 5-10 yrs 8.40%
NR 8.5% Between 10-12 yrs 10.10%
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
Benchmark: BofAML US Corp & Govt 1-3 yr
Minimum investment: $4,000
Retirement and college accounts: $4,000
Add’l automated min. investments*: $300

Shareholder Services: 888-350-3369

2018 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 0.009957
February 0.007314
March 0.010273
April  0.007175
May  0.00942
June  0.010397
July  0.025186
August  0.011626
September  0.012847
October  0.0141650
November  0.0129320
December  

Estimated for December: 

Dividend ST capital gains LT capital gains 
0.01417  0  0.04429

The Azzad Funds will pay year-end income and/or capital gain distributions on December 19, 2018. We are providing you with information regarding the expected distribution dates and estimated rates for your planning purposes. The rates reflected below are estimates that were calculated as of November 29, 2018 and are subject to change based on market movements, fund cash flows, ongoing portfolio transactions and other factors between now and the anticipated distribution date.

Shareholders will have the exact amount on the distribution date. Thank you.

IMPORTANT INFORMATION

Before investing, carefully consider the Funds’ investment goals, risks, charges and expenses. For a prospectus or summary prospectus containing this and other information, call 888-862-9923 or read them on this website. Read them carefully before investing. Investing carries risks, including possible loss of principal. The Azzad Funds are not FDIC insured, nor are they bank deposits or guaranteed by a bank or any other entity. Azzad Asset Management is the investment adviser to the Azzad Funds.

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.

Please see our glossary for a definition of terms.