Azzad Ethical Fund
(Ticker: ADJEX) Mid-cap Stock Fund
Fund Overview
Objective
The Azzad Ethical Fund seeks total return, which includes income from dividends and Growth of capital appreciation of stocks. The Fund invests in mid-cap companies included in the Russell Midcap® Growth Index and screened for compliance with the firm’s ethical investment restrictions.
Strategy
The Fund invests in U.S. mid-cap growth companies passing the Adviser’s Islamic screens and that, according to the portfolio managers, demonstrate profitability, balance sheet strength and attractive valuations.
Why Invest in Mid-Cap Stocks?
US mid-sized companies typically possess the innovation and growth potential of small-cap companies, but with the capital structure of large-cap companies. We believe mid-cap companies are an investment “sweet spot” in the U.S. economy. Whereas most Islamic funds focus on large-cap stocks, the Azzad Ethical Fund provides exposure to this sometimes underutilized asset class.
Top Holdings
as of 9/30/2024
COSTAR GROUP, INC. | 3.66% | ||
CADENCE DESIGN SYSTEMS, INC. | 3.31% | ||
QUANTA SERVICES, INC. | 2.92% | ||
HEICO CORPORATION | 2.65% | ||
THE TRADE DESK, INC. CLASS A | 2.65% | ||
TYLER TECHNOLOGIES, INC. | 2.57% | ||
FLOOR & DECOR HOLDINGS, INC. | 2.52% | ||
MONOLITHIC POWER SYSTEMS, INC. | 2.52% | ||
PINTEREST, INC. | 2.44% | ||
IDEXX LABORATORIES, INC. | 2.26% | ||
% OF TOTAL NET ASSETS | TOP 10 | 27.50% | |
TOP 20 | 47.35% | ||
TOP 30 | 64.05% | ||
The top 10 holdings and sector diversification may not be representative of the fund’s current or future investments and may change without notice. | |||
Number of Securities | 61 | ||
The top 10 holdings and sector diversification may not be representative
of the fund’s current or future investments and may change without notice.
EQUITY STYLE MAP
Style Maps estimate characteristics of a fund’s equity holdings over two dimensions: market capitalization and valuation.
Fund Information
Ticker Symbol
ADJEX
CUSIP
055060206
Inception Date
12/22/2000
Minimum Initial Investment
$1,000 ($500 for IRAs)
Net Expense Ratio
0.99%*
Gross
1.14%
Turnover Rate* (6/30/24)
24.49%
Maximum Sales Charge
None
Investment Style
U.S, Mid-Cap Growth
Average Market Cap
$22.321 Billion
Number of Holdings
63
Risk of this Category
Source: Fund prospectus. Net expense ratio reflects a contractual expense reimbursement that continues through 12/01/2029. Without the reimbursement, performance would have been lower. Gross expense ratio as of 6/30/2024 was 1.14%.
* Turnover Rate is the lesser of amounts of purchases or sales of long-term portfolio securities divided by the monthly average value of long-term securities owned by the fund.
Azzad Ethical Fund Year 2024
Payout Per Share | Long Term Capital Gain Record Date | Long Term Capital Gain Payable Date |
0.866 | 10/31/2024 | 12/13/2024 |
AVERAGE ANNUAL TOTAL RETURNS (%)
AVERAGE ANNUAL TOTAL RETURNS |
| |
| FUND | BENCHMARK |
3 Month | 3.35% | 6.54% |
YTD | 5.90% | 12.91% |
1 Year | 20.43% | 29.33% |
3 Year | 0.17% | 2.32% |
5 Year | 9.40% | 11.48% |
10 Year | 8.43% | 11.30% |
Since Inception | 6.72% | 8.30% |
Current performance may be higher or lower than that quoted. Visit azzadasset.com or call your investment professional for most recent month- end performance. Performance data shown represents past performance and is no guarantee of future results. Returns are net of fees and assume the reinvestment of all dividends and income. Returns for less than one year are cumulative (not annualized).
SECTOR DIVERSIFICATION (AS % OF TOTAL PORTFOLIO)
| FUND | BENCHMARK |
Consumer Defensive | 0.00% | 2.43% |
Healthcare | 22.80% | 13.79% |
Utilities | 0.00% | 1.74% |
Communication Services | 2.66% | 2.63% |
Energy | 0.00% | 3.89% |
Industrials | 21.25% | 16.38% |
Technology | 35.00% | 30.71% |
Basic Materials | 1.43% | 0.99% |
Consumer Cyclical | 11.82% | 15.37% |
Financial Services | 1.05% | 10.61% |
Real Estate | 3.99% | 1.45% |
VOLATILITY MEASURES (%)
VS BENCHMARK 1 | 3 YEAR | 5 YEAR | 10 YEAR |
Beta | 1.03% | 0.98% | 0.98% |
R2 | 95.72% | 96.18% | 95.97% |
Standard Deviation | 22.29% | 21.54% | 18.02% |
Sharpe Ratio | -0.17% | 0.32% | 0.37% |
Management
Socially Responsible Islamic Investment Philosophy
Investment Adviser & Portfolio Management
Azzad Asset Management, an investment advisory firm established in 1997, is investment adviser to the Azzad Funds. The firm is committed to helping clients manage their money according to a disciplined, socially responsible investment philosophy based on faith-based values. Kimberly Scott, CFA® and Bradley Halverson, CFA® from Delaware Funds by Macquarie provide portfolio management for the Azzad Ethical Fund. The portfolio management team uses a time-tested process to identify Greenfield Growth, Stable Growth and Unrecognized Growth companies it believes can provide opportunities for long-term outperformance.
Invest Today
To purchase the Fund, contact your financial professional or call us at 888.86.AZZAD. The Fund is available on many brokerage platforms including Schwab and Fidelity.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and summary prospectus. Investors should read the prospectus and summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. The risks of investing in securities of foreign issuers, including emerging markets, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues. Although the Fund does not invest in interest-bearing debt securities found in conventional bonds, the fund may still be affected by the movement of interest rates, may be subjected to credit, prepayment, and extension risks. The fund’s holdings may also be affected by changes in the creditworthiness of the issuer and are subject to the risk of non-payment of principal and profits. The fund also invests a small portion in trade finance contracts which are subject to illiquidity risks. Investing primarily in Islamically permissible fixed income securities carries the risk that, under certain market conditions, the Fund may underperform funds that do not utilize an Islamic finance investment strategy. Please read the fund’s prospectus for more information about these and other risks.
Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. The Index’s returns assume reinvestment of all distributions and dividends. The ICE BofAML US Corp & Govt 1-3 Yr Index tracks the performance of U.S. dollar-denominated investment grade government and corporate public debt issued in the U.S. domestic bond market, excluding collateralized products.
