What criteria are used to select companies for the fund?

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Criteria for Company Selection in the Eastspring Investments Islamic China A-Shares Fund

The Eastspring Investments Islamic China A-Shares Fund employs specific criteria to identify investment opportunities within the China A-Shares market. The fund prioritises companies demonstrating a consistent history of earnings growth or positive revisions to their earnings forecasts. Additionally, it focuses on Shariah-compliant equities that offer attractive dividend yields.
Focus on Earnings Growth and Revisions

A primary selection criterion for the fund is a company's financial performance, specifically looking for entities that have consistently grown their earnings. This includes companies that have shown a steady upward trend in profitability over time. Furthermore, the fund considers companies that have experienced upward revisions to their earnings estimates by financial analysts, indicating a positive outlook for their future financial performance.
Emphasis on High Dividend Yielding Equities

Beyond earnings, the fund also targets Shariah-compliant equities that provide a high dividend yield. This suggests an investment strategy aimed at generating income for investors through dividend payouts, in addition to potential capital appreciation. The inclusion of high dividend yields aligns with a focus on established and financially sound companies that are able to distribute a portion of their profits to shareholders.
Shariah Compliance in the China A-Shares Market

All equity selections for the fund must adhere to Shariah principles. This means that the companies chosen will have undergone screening to ensure their business activities and financial structures are compliant with Islamic law. The fund's objective is to provide access to the China A-Shares market specifically through investments that meet these ethical and religious guidelines, alongside the financial performance metrics.

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What criteria are used to select companies for the fund?

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