Basic Pension Insurance
In December 2016, E Fund was awarded the qualification as the investment manager for Basic Pension Insurance Funds, thus becoming one
of the first fund managers to obtain such qualification. This meaningful achievement represents E Fund has become the full license asset manager for the pension business.
Major clients of corporate pension business
Strong Awareness and Deep Understanding of Pension Characteristics
While legal compliance is guaranteed, E Fund aims to harvest absolute returns and outperform inflation and performance benchmark so that
the long-term steady appreciation of assets is made possible for pension funds.
Five Features of Pension Fund
Long duration, profitability, volatility and liquidity, and most importantly, safety.
Five Relations in Pension Investment
Active Exploration into the Investment Management Model of Corporate Pension
in Line with Pension Characteristic
Based on the strong awareness and deep understanding of pension fund characteristics, E Fund tightens the investment management for corporate pension fund and completes major changes in 7 ways as follows:
Long-term Steady Investment Performance
According to the statistics of the Ministry of Human Resources and Social Security, E Fund, which started the corporate pension investment
management business in 2006, achieved an annualized return of 5.06% from 2006 to 2011, ranking third in the industry; cumulative return from 2012 to 2016 reached 37.72%, ranking fourth among eleven investment managers and second among all fund managers with corporate pension AUM over
RMB 40 billion (USD 5.8 billion). With the long-term steady investment performance, the Company attained its goal of maintaining and appreciating the values of corporate pension.
Returns for the last five years is detailed as follows:
Note: A portfolio refers to a single strategy that operates no less than a year under statistical standard of Ministry of Human Resources and Social Security.
Rapid Expansion of Investment Scale
With E Fund’s vigorous support and outstanding investment performance, the corporate pension business enjoyed a rapid growth in AUM, implying an industry-leading growth rate.
Improved Line of Pension Products
Currently, E Fund has a complete line of 7 pension products including balanced, equity and fixed income strategies. E Fund Steady Allocation and Steady Allocation II, two balanced pension products launched on June 4, 2014 and November 18, 2014 respectively, are well received by many clients. E Fund Steady Allocation II, a balanced pension product, ranked top in 2015, and in the first three quarters of 2017 among all comparable pension products in the market in terms of investment performance.
Long and Mid-term Development Plan of Pension Business
Pension business, which still remains at early development period, will boast tremendous growth potential. E Fund positions pension business
as one of its key operations, and strategically attaches great importance to this business development. When huge resources are allocated to
pension business, the Company pursues the long-term benefits and strives for steady development. The Company has reaped much
confidence from clients and gradually expanded its AUM of pension business through its continuous, steady and outstanding performance,
rigorous risk management and high-quality service.
Note: 1 USD = 6.6369 RMB