Azzad Asset Management is a faith-based socially responsible investment firm offering Islamic investment portfolios and mutual funds, financial planning, and retirement plans for individuals and businesses operating in the US.[1]
Azzad’s socially responsible investment policy states that the company “screen[s] all potential investments to exclude companies that profit from (…) weapons, prisons, war and international conflict (…) and other areas that cause societal or environmental harm.“[2] Companies that derive significant income (defined as more than 5% of their total income) from the processing or sale of weapons of mass destruction are excluded from investment. This also covers companies involved in the production, development, trade or maintenance of nuclear weapons or specially designed delivery systems. Companies involved in a joint venture that is involved in the production of nuclear weapons or key components thereof are not excluded.[3]
The policy applies to all types of investments, both managed internally and externally.[4]
Azzad Asset Management makes use of an exclusion list to implement the policy, but this list is not publicly available.[5]
Azzad Asset Management was found to hold shares in the US-based nuclear weapon producer BWX Technologies. It clarified that this was based on a mistake and the shareholding has since been sold.[6]
We commend Azzad for adopting a nuclear weapon policy. We recommend Azzad to apply the policy to all nuclear weapon producers, regardless of the percentage of their turnover that is related to nuclear weapons.
[1] Azzad Asset Management, “Ethical Investing”, Azzad Asset Management website (http://www.azzadfunds.com/), viewed 23 January 2018.
[2] Azzad Asset Management, “Ethical Investing Philosophy”, Azzad Asset Management website (http://www.azzadfunds.com/philosophy-process/), viewed 23 January 2018.
[3] Azzad Asset Management, written response to PAX, 10 November 2017.
[4] Azzad Asset Management, written response to PAX, 10 November 2017.
[5] Azzad Asset Management, written response to PAX, 10 November 2017.
[6] Azzad Asset Management, written response to PAX, 6 December 2017.