About the Fund

OBJECTIVE/STRATEGY

The Azzad Ethical Fund pursues long-term capital appreciation by investing primarily in the common stocks of mid cap companies. Using quantitative and fundamental analysis, the investment team seeks to identify fast growing companies with strong business models. These are companies with products or services in high demand, above average and sustainable earnings growth and selling at attractive valuations.

INVESTMENT PROCESS

We believe stock prices follow earnings growth, and that mid-cap companies can grow faster and more aggressively than large ones. Using quantitative and fundamental analysis, our investment process is designed to be disciplined, repeatable and focused on selecting companies with optimal risk/reward profiles.

Read more about our investment process.

PORTFOLIO

Largest Holdings (as of 12/31/2013)*

Nu Skin Enterprises, Inc 2.4%
Towers Watson & Co. 2.1%
United Natural Foods, Inc. 1.9%
Kennametal, Inc. 1.8%
United Therapeutics Corp. 1.9%
AmerisourceBergen Corp. 1.8%
Deckers Outdoor Corp. 1.8%
CF Industries Holdings, Inc. 1.8%
Henry Schein, Inc. 1.8%
HollyFrontier Corp. 1.7%

Sectors*

Sector Diversification (as a % of total portfolio equities)

*Fund holdings and sector allocations are subject to change and are not a recommendation to buy or sell any security.

Risk Measures vs. Benchmark

Benchmark Russell Midcap Growth TR USD Index
Beta 0.96
R-Squared 92.80
3-Year Annualized Standard Deviation 15.22% versus 14.83%

IMPORTANT FUND DISCLOSURES

The Fund is non-diversified and may invest a larger percentage of its assets in fewer companies exposing it to more volatility and/or market risk than diversified funds. The Fund may not achieve its objective and/or could lose money on your investment in the Fund. Stock markets and investments in individual stocks can decline significantly in response to issuer, market, economic, political, regulatory, geographical, and other conditions. Investments in mid-cap companies can be more volatile than investments in larger companies. Investments in growth companies can be more sensitive to the company’s earnings and more volatile than the stock market in general. Because the portfolio may invest substantial amount of its asset in issuers located in a single country or in a limited number of countries, it may be more volatile than a portfolio that is more geographically diversified. See the prospectus for more details about risks.

Investments in smaller and medium sized companies involve additional risks such as limited liquidity and greater volatility. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower rated and non-rated securities present a great risk of loss to principal and interest than higher rated securities.

Securities of medium-sized companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies. Growth securities may underperform other asset types during a given period. International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. The Fund may not achieve its objective and/or could lose money on your investment in the Fund. Stock markets and investments in individual stocks can decline significantly in response to issuer, market, economic, political, regulatory, geographical and other conditions.

* Previously known as Azzad Ethical Mid Cap Fund.

Portfolio characteristics including holdings, sector allocation, and risk measurements are for illustrative purposes only and may change without prior notification. Portfolio characteristics are intended to provide a general view of the entire portfolio at a certain point in time. Characteristics are calculated using information obtained from various data sources.

The Midcap Growth Index measures the performance of the mid cap growth segment of the U.S. equity universe. It includes those Russell Mid Cap Index companies with higher price to book ratios and higher forecasted growth values. The index is unmanaged and an investment cannot be made directly in this or any other index.

The services and products described on this website are intended to be made available only to persons in the United States. This website should not be considered a solicitation or an offering of any of the Azzad Funds to investors residing outside the United States or where prohibited. Azzad only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements.

Azzad Asset Management is an independent investment advisory firm and adviser to the Azzad Funds. The Azzad Funds are described in a prospectus which contains more complete information about the Funds, including management fees and other charges and expenses.

Fund Facts

Inception Date: December 22, 2000
CUSIP: 055060206
Ticker Symbol: ADJEX
Asset Allocation: Mid-Cap Growth
Benchmark: Russell Mid Cap Growth
Minimum Investment: $1,000
Retirement & College Accounts: $500
> Download Prospectus
> Download Fact Sheet
Shareholder Services: 888-350-3369

2013 Distributions

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.

The Azzad Ethical Fund (ADJEX) will be making its distributions on Tuesday, December 24, 2013. Estimated distributions (dividends, short-term capital gains, and long-term capital gains) are listed below:

Azzad Ethical Fund (ADJEX) 2013 Estimated Distributions

Dividend0.00850
ST Cap Gain0.28201
LT Cap Gain1.24691
Total 1.53742

PLEASE NOTE: On the day the distribution is declared, the amount of the distribution is deducted from fund assets and calculated as a per share amount to be passed through to shareholders. On this day, the fund's share price will decline by the amount of the distribution (plus or minus any share price change related to market activity).