E Fund Management has launched the E Fund China A Enhanced Equity Fund* – a RQFII active mutual fund – targeting US institutional and retail markets.
The fund is designed to provide an alternative to current passive offerings in the market.
The Chinese equity market is known for its potential investment opportunities. Even with the selloff in June, A share's return in 2015 still beats many developed markets. The E Fund China A Enhanced Equity Fund could be regarded as one of new ways to diversify investors' portfolio and gain exposure to the Chinese equity market. The Stock Fund's stock selection strategy incorporates quantitative, fundamental and technical analysis to identify different dimensions that influence a stock's valuation. The Fund normally invests at least 80% of its assets in China A-Shares, which are equity securities of issuers located in the People's Republic of China that trade in renminbi ("RMB") on the Shanghai or Shenzhen Stock Exchanges.
Zhang Qiang (David), Managing Director and Head of E Fund US, says: "As one of the largest asset manager in China, E Fund is the first Chinese firm to launch 40 Act mutual funds in US. The launch of the Stock Fund marks the start of a new era that Chinese asset managers move from just offering passive products to active products in overseas markets. Going forward, performance and active investment capacity will become the key differentiating players and products in the field. We believe that A-share shall play an increasingly important role in global investors' asset allocation next year. By launching in 2015, the Fund will be able to gain a full year's of track record by the end of 2016. As part of our global expansion strategy, E Fund opened US office in August 2015. We expect to launch more products in 2016." He added, "This is not a recommendation to invest in the Fund, investors should read the prospectus carefully before deciding to invest."
*E Fund China A Enhanced Equity Fund is not an SFC authorised fund and is not available to retail investors in Hong Kong.
