Azzad Funds Group

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    Funds Group: Azzad Funds Group

    Management Company: Advisor:  (1) Azzad Asset Management, Inc. Sub-Advisor: 

    Ziegler Capital Management, LLC (2) Azzad Asset Management, Inc. (3) Azzad Asset Management, Inc. Sub-Advisor: Federated Investment Management Company

    Funds Affected: (1) Azzad Ethical Fund, (2) Azzad Ethical Mid-Cap Fund, Azzad Ethical Income Fund (3) Azzad Wise Capital Fund

    Principal Sustainable Investment Management Strategy: Religious/Ethical, Exclusions, Shareholder Engagement

    Review:

    (1) The fund does not invest in corporations that derive substantial revenue (defined as more than 5% of total revenue) from alcohol, tobacco, pornography, pork, gambling, hydraulic fracturing, private prisons or weapons industries as determined by the adviser. The fund also will not invest in securities or other instruments that derive revenue from the receipt of interest from lending arrangements, preferred stocks and convertible securities or other instruments that pay interest from lending, or from the receipt of gains from futures contracts, trading debt or trades that involve exchanging the same kind of monetary instruments (such as the same type of currency).

    (2) The funds avoid companies with significant revenue from tobacco, alcohol, meat related products, gambling, pornography or other unethical entertainment, and weapons of mass destruction. In addition, the funds will not invest in companies with unacceptable financial ratios. The Funds also do not invest in equity securities of conventional financial service companies such as banks or insurance companies.

    The funds seek to invest in socially responsible companies and may use their shareholder positions to influence corporations to engage in socially and environmentally responsible behavior.

    The funds’ securities holdings, other than equity securities, are limited to securities that the Funds’ investment adviser determines are compliant with the Funds’ ethical investment restrictions.

    (3) The fund invests primarily in fixed income securities issued for payment by international financial institutions, foreign governments, and agencies of foreign governments in transactions structured to be compliant with the Fund’s ethical investment guidelines.  Examples of fixed income securities in which the Fund invests include sukuk and wakala.

    The fund does not invest in corporations that derive substantial revenue (defined as more than 5% of total revenue) from alcohol, tobacco, pornography, pork, gambling, hydraulic fracturing, private prisons, or weapons industries as determined by the adviser. The fund will not invest in securities or other instruments that derive revenue from the receipt of interest from lending arrangements, preferred stocks and convertible securities or other instruments that pay interest from lending, or from the receipt of gains from futures contracts, trading debt, or trades that involve exchanging the same kind of monetary instruments (such as the same type of currency).  The fund will, however, be able to invest in instruments that provide a fixed rate of return in transactions that are structured to be compliant with the fund’s ethical investment restrictions such as sukuk, certificates of deposit, bank notes, and short-term bank deposits.