MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, March 28, 2001 Azzad Plans Islamic Income Fund The constraints on Islamic investment options will often surrender Muslim savings to a spot under the mattress, but Azzad Asset Management, amid competition from Citigroup and HSBC, is eager to relocate the unused cash to an income fund under development. The scramble for the Islamic investment market has been spurred by current estimates of an untapped $150 to 200 billion which is expected to grow to $1 trillion within eight years. Opening in the next six to eight months, the tentatively-named Azzad Income Fund comes on the heels of the Azzad/Dow Jones Ethical Market Fund. "This is new money that's not disintermediated," said Scott Valpey, executive vice president, explaining worldwide Muslim assets. "We recognize the market is there." The indexed fund, launched in October with $1 million in seed money, sweeps the percentage of income generated by interest and other unacceptable revenues into charities, thereby "purifying" assets for Muslim investors. This percentage is insignificant to performance, according to Valpey. The branding effort underway emphasizes the fund's appeal to any socially responsible investor. The new income fund will also be anomalous: the Koran prohibits usury income, eliminating coupons as a fund component. Instead, investments will rely on a proprietary technology screen to pick out ethically-acceptable dividend, rental, and lease income sources. Plans to heavily market the technology screen used for picking stocks will target everyone from institutions to advisors. The Falls Church, Virginia-based fund firm is dicussing with a number of large companies the option to permit employees to self-direct 401k funds into Azzad vehicles. Valpey declined to name names. The income fund is not yet registered with the Securities and Exchange Commission and is still in its planning stages. Azzad's existing backoffice relationship with American Data Services will continue with the new fund. Printed from: MFWire.com/story.asp?s=26480 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |