Azzad Asset Management hired Federated Investors to subadvise the Azzad Wise Capital Fund, said Azzad spokesman Joshua Brockwell.
The $67.7 million socially responsible fixed-income mutual fund invests primarily in Islamic bonds and interest-free bank deposits and notes issued primarily by overseas banks in developing countries.
Azzad issued an RFP in October. The other two finalists were Standish Mellon Asset Management and Brandywine Global Investment Management.
Federated is the sole subadviser for the fund, said Federated spokeswoman Ashley Buse.
As subadviser, Federated will replace Azzad's internal portfolio management team with regard to the fixed-income portion of the fund. Azzad's internal portfolio management team will continue to manage less than 10% of the fund.