Investment Strategies
We offer a full range of mutual funds and equity strategies managed by institutional portfolio managers specialized in their asset classes.
Large Cap Growth Portfolio | Managed by Ziegler Capital Management
The Large Cap Growth Portfolio seeks to achieve a rate of return equal to or greater than the Russell 1000® Growth Index.
Historically, large cap stocks have achieved a rate of return higher than bonds, money market accounts and certificates of deposits with less volatility than small or mid cap stocks.
The Large Cap Growth Portfolio invests primarily in companies valued at $10 billion or higher at the time of investment.
Investments are chosen from a universe of securities passing Azzad’s ethical screens. Ziegler Capital Management’s (ZCM) strategy is relatively sector neutral. They seek to identify undervalued stocks that have already traded at a discount to their fair value.
They combine a quantitative model with discounted cash flow analysis to score and rank stocks within the universe. They then apply a fundamental evaluation to confirm a stock’s attractiveness.
Large Cap Value Portfolio | Managed by SKBA Capital Management
The Large Cap Value Portfolio seeks to achieve a rate of return equal to or greater than the Russell 1000 Value Index.
The portfolio was created on April 1, 2011. The Manager seeks to achieve long-term capital appreciation by investing in undervalued equity securities, which meet Azzad’s ethical values screening criteria.
The strategy uses a bottom-up, fundamental research process and invests in large cap stocks (generally having a market capitalization of greater than $1 billion at the time of purchase) identified by the manager’s Relative Dividend Yield valuation discipline.
Only companies that pay a dividend and have a dividend yield greater than that of the S&P 500 are considered for possible inclusion in the portfolio.
Mid Cap Growth Portfolio | Managed by D.F. Dent and Company
The Mid Cap Growth Portfolio seeks to achieve a rate of return equal to or greater than the Russell MidCap® Growth Index.
Historically, mid cap stocks have offered higher rates of return than large cap stocks but lower rates of return than small cap securities.
Mid cap stocks have also been more volatile than large cap stocks but less volatile than small cap stocks.
Mid Cap Value Portfolio | Managed by Delaware Funds by Macquarie
Delaware Funds by Macquarie provides investment sub-advisory services, including portfolio management, investment research and analysis, to registered investment companies.
It is a subsidiary, and subject to the ultimate control, of Macquarie Group Limited (“Macquarie”). Macquarie is a Sydney, Australia-headquartered global provider of banking, financial, advisory, investment and funds management services.
As of December 31, 2020, the public investments divisions of Macquarie’s asset management business had total assets under management of approximately $268.1 billion.
Mid Cap Value Portfolio | Managed by Azzad Asset Management
The Mid Cap Value Portfolio seeks to achieve a rate of return equal to or greater than the Russell MidCap® Value Index. The portfolio was created on March 1, 2009.
From 3/1/2009 to 1/15/2015, the model was managed by Pekin Singer Straus Asset Management. From 1/15/2015 to the present, it is managed by Azzad Asset Management.
Between 1/15/2015 and 1/1/2017, the model was managed as part of Azzad’s Dividend Model. Historically, mid cap stocks have offered higher rates of return than large cap stocks but lower rates of return than small cap securities. Mid cap stocks have also been more volatile than large cap stocks but less volatile than small cap stocks. The portfolio generally holds fewer than 40 stocks.
Small Cap Growth Portfolio | Managed by Kayne Anderson Rudnick Investment Management
The Small Cap Growth Portfolio seeks to achieve a return equal to or greater than the Russell 2000 Growth Index.
The Portfolio was created on August 1, 2013. Kayne, Anderson Rudnick Investment Management (“KAR”) has been the manager of the Small Cap Growth Portfolio since its inception.
KAR’s investment philosophy focuses on the “high-quality” subset of the small cap asset class.
The Manager believes that this emphasis on high-quality businesses, anchored by fundamental, bottom-up research, will achieve attractive risk-adjusted returns for its clients over a complete market cycle.
KAR defines “high quality” as a business characteristic that represents a company’s ability to control its market. This investment philosophy leads KAR to companies which it believes have low business risk as identified by certain financial characteristics, such as consistent and profitable growth, high returns on capital, strong free cash flow, and low organic need for external financing.
KAR applies a business analyst approach to its research as they strive toward developing deep conviction in each of the portfolio holdings and, over time, an information advantage.
KAR believes that owning a focused, yet diversified, portfolio of companies with low business risk, purchased at attractive valuations, and prudently managed as dictated by changes in fundamentals or valuation, will lead to repeatable and successful investment results.
Small Cap Value Portfolio | Managed by Tributary Capital Management
The Small-Cap Value Portfolio seeks to achieve a return equal to or greater than the Russell 2000® Value index.
The Portfolio was created on August 14, 2012 with the objective to achieve long-term, above-average performance with below-average risk (as measured by standard deviation).
The managers try to identify quality companies that they believe will enhance shareholder value over time. Using a fundamentally, research-driven process, their focus is primarily on stock selection.
They analyze and value stocks as partial ownership interests in businesses and their long-term investment time horizon reflects this mindset. They believe that a bottom-up stock selection is the highest quality source of excess return.
Dividend Portfolio | Managed by Azzad Asset Management
The Dividend Portfolio seeks to achieve investment returns that correspond to the S&P 500® Dividend Aristocrats® index.
The S&P 500® Dividend Aristocrats® index captures sustainable dividend income and capital appreciation potential, which are both key factors in investors’ total return expectations. Since 1926, dividends have produced roughly a third of total equity return whereas capital gains have contributed the remaining two thirds.
Companies included in the portfolio have increased their dividends annually for the last 25 consecutive years, demonstrating their commitment to shareholders.
They have a market capitalization of at least $3 billion and have an average daily value traded of at least $5 million over the last 3 months.
They must also pass Azzad’s socially responsible investment criteria. The portfolio is sought after by investors who are looking for investment income in the stock market.
It generally holds fewer than 40 U.S. domestic stocks and is designed to have a relatively low turnover of less than 30%. The Portfolio was created on January 1, 2013.
Real Estate Investment Trusts (REIT) Portfolio | Managed by Azzad Asset Management
The REIT (Real Estate Investment Trust) Portfolio seeks to achieve a return equal to or greater than the Dow Jones US Select REIT Index.
Historically, real estate investment trusts have done well when interest rates were low and occupancy rates at commercial and residential properties were high.
They also historically have been uncorrelated to the broader stock market, and, therefore, provide a valuable contribution to a diversified investment plan.
REIT securities tend to pay high dividends because the majority of earnings must be distributed—by law—to shareholders.
The portfolio generally holds less than 25 stocks and, therefore, is highly concentrated with low leveraged stocks.
The portfolio was created on March 24, 2004. It is managed by an internal investment team at Azzad. After screening the entire universe for Azzad’s ethical screens, 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. Non REIT stocks that are concentrated in the real estate industry may also be added to the portfolio where the managers believe they may potentially provide alpha and greater diversification.
Short-term Fixed Income Mutual Fund (Wisex) | Managed By Federated Investment Management Company
The Azzad Wise Capital Fund (WISEX) pursues long-term income and capital preservation by investing primarily in Islamic bonds (sukuk), interest-free bank deposits and notes issued primarily by overseas banks in developing countries, 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 Adviser’s investment philosophy. [Summary prospectus]