It is understood that the fund invests in a wide range of stocks related to national defense and military industry, not limited to the constituent stocks of the CSI Military Industry Index, including both the pure military industry, the transformation of military enterprises or the private sector, and private enterprises newly involved in military construction. The fund will invest in multi-dimensional selected defense stocks. In terms of industry allocation strategy, the Fund will grasp the direction of government policies through the analysis and research, and focus on investing in sub-sectors that benefit from government policies, especially high-quality private military enterprises that meet the policy direction.
In the selection of individual stocks, the defense and military E Fund mainly evaluates the investment value of listed companies in the defense and military industry by considering six factors, and chooses listed companies with strong competitive advantages to invest. These six factors include R&D capability, management capability, operational efficiency, growth potential, profitability and financial structure.