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3) U.S. Halal Fixed Income Fund Tops $100 Million in Assets

Azzad Asset Management says the first halal (Islamically accepted) fixed income fund in the United States crossed the $100 million threshold in August. The interest-free alternative to bond funds, the Azzad Wise Capital Fund (WISEX) was launched in 2010.

In accordance with the internationally recognized standards for halal investing, WISEX aims to produce a return that is comparable to that of bank accounts and other financial instruments without dealing in interest. By investing primarily in sukuk and Islamic bank deposits it provides a viable fixed-income investment option that also contributes to global societal development, according to Azzad.

"We are grateful to our shareowners who have validated the notion that people and profits can go hand in hand," said Azzad Vice President Jamal Barmil, in a statement "Focused on community development and poverty alleviation, WISEX is an active force for good in the world, in addition to being an important investment option for everyone from impact investors to observant Muslims." Barmil is also a co-portfolio manager for the fund.

In 2 014, Azzad hired Federated Investment Management Company, a unit of Federated Investors, to serve as a sub-advisor for the Azzad Wise Capital Fund. In February of 2016, Azzad said WISEX would participate in a series of syndicated ethical trade finance deals arranged by the International Islamic Trade Finance Corporation (ITFC).

The Azzad Wise Capital Fund also invests in Islamic banks and U.S.-dollar denominated investment grade sukuk or "Islamic bonds," financial instruments issued to obtain an upfront payment in exchange for an income stream generated from tangible assets or services, often through leasing.

According to Azzad, a major distinction between conventional bonds and sukuk is that the latter are linked to an asset, allowing investors to be equity stakeholders. In July, it was reported that JP Morgan would include sukuk in its emerging market indices beginning in the fourth quarter of 2016.

Read the Aug. 29 Portfolio Products Roundup at ThinkAdvisor.