Azzad Wise Capital Fund
Income and capital preservation
- 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.
Daily Price (NAV)
|Azzad Wise Capital Fund||WISEX||$10.88||$-0.01|
Daily Price (NAV)
|Azzad Wise Capital Fund||WISEX||$10.91||$0.01|
WISEX Quarterly Performance
|As of 9/30/2020||TOTAL RETURNS||AVERAGE ANNUALIZED RETURNS|
|Quarter||YTD||1 Year||3-Year||5-Year||10-Year||Since Inception*|
|Azzad Wise Capital Fund||1.47%||1.90%||2.84%||2.56%||2.19%||2.19%||2.09%|
|ICE BofAML U.S. Corporate & Government 1-3 Yrs||0.27%||3.11%||3.74%||2.87%||2.11%||1.60%||1.72%|
**This data is presented as supplemental information as it is used as a general market indicator and is not used for this composite’s strategy implementation.
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 9/30/2020)*
|Saudi Electricity Global Sukuk Company||3.77%|
|QIB Sukuk Ltd.||2.93%|
|APICORP Sukuk Limited||2.69%|
|EQUATE SUKUK SPC LTD.||2.08%|
|Al Hilal Bank PJSC||2.06%|
|Perusahaan Penerbit SBSN Indonesia III||1.95%|
|KSA Sukuk Limited||1.84%|
|Perusahaan Penerbit SBSN Indonesia III||1.72%|
|Oman Sovereign Sukuk S.A.O.C||1.66%|
Allocation* (as of 9/30/20)
*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.
Socially Responsible Investment Philosophy
The Fund’s investment advisor does not believe in charging or paying interest from lending, or in trading debt, money market instruments, futures contracts, and currency.
The Azzad Wise Capital Fund follows an investment philosophy that is faith-based and believes that financial transactions should be conducted in a fair and equitable basis for both the borrower and financier.
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.
Inception Date: April 1, 2010
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
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.
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.
The performance data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain recent month end performance, call 888-350-3369.
Azzad Asset Management (the “Adviser”) has contractually agreed to limit the total operating expenses of the Azzad Ethical Fund to 0.99% through 12/1/2023 and Azzad Wise Capital Fund to 1.29% through 12/01/2023, excluding indirect expenses. The gross expense ratio for the previous fiscal year ending 6/30/2018 was 1.15% for Azzad Ethical Fund and 1.44% for Azzad Wise Capital Fund. Absent this arrangement, the performance shown would have been lower. For more detailed information on fund expenses, please see the fund’s prospectus.
The Russell MidCap© Growth Index measures the performance of the mid cap growth segment of the U.S. equity universe. It includes those Russell MidCap® Index companies with higher price to book ratios and higher forecasted growth values. Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Azzad Asset Management’s presentation thereof.
The Dow Jones Islamic Market U.S. Mid-Cap Growth Index is designed to measure the performance of mid-cap U.S. equity securities that are screened for adherence to Shariah investment guidelines and are classified as “growth” based on a multi-factor analysis. The Dow Jones Islamic Market Target Risk Indices were launched Dec. 27, 2017. All information presented prior to an index’s Launch Date is hypothetical (back-tested), not actual performance. The back-test calculations are based on the same methodology that was in effect on the index Launch Date. Complete index methodology details are available at www.spdji.com.
The Bank of America Merrill Lynch US Corporate and Government 1-3 Year Index tracks the performance of US dollar-denominated investment grade government and corporate public debt issued in the US domestic bond market, excluding collateralized products. The index does not reflect the deduction of expenses, which have been deducted from the Fund’s returns. The index’s returns assume reinvestment of all distributions and dividends; you cannot invest directly in an index.
The Dow Jones Sukuk Index is designed to track the performance of global Islamic fixed income securities, also known as sukuk. The index measures an investment (excluding reinvestment) in U.S. dollar-denominated, investment-grade sukuk that have been screened for Shariah compliance. The Dow Jones Islamic Market Target Risk Indices were launched Dec. 27, 2017. All information presented prior to an index’s launch date is hypothetical (back-tested), not actual performance. The back-test calculations are based on the same methodology that was in effect on the index launch date. Complete index methodology details are available at www.spdji.com.
The hypothetical charts above do not imply any future performance. They illustrate the performance of a hypothetical $10,000 investment made in each Fund since inception and assume reinvestment of dividends and capital gains. They do not reflect the effect of any redemption fees, which would lower these figures. The initial investment used in the above charts may be higher or lower than the initial minimum amount required to invest in each fund. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Past performance cannot be used to predict future returns. Before making an investment decision, it’s important to check the fund’s prospectus for factors such as investment objectives, costs and expenses, liquidity, fluctuation of principal or return, and tax features.