Risk Management

E Fund has built and maintained a highly effective risk management system. A combination of qualitative and quantitative approaches is used towards the risk management of portfolios. VAR models, multi-factor models, credit risk evaluation and stress testing are among other approaches that we use. Everyone in the decision-making process has the responsibility for risk identification and risk control. We provide a rigid management infrastructure to support this process. Employees are encouraged to identify risks before making business decisions and to take the appropriate measures to control such risks.

Complete System

Our Profile

E Fund is one of the largest asset managers in China with over USD 189 billion AUM and over 67 million investors, as of December 31, 2017.


Effective System Tools

Compliance Risk Monitoring

 Hangseng Investment Management System

 Compliance Monitoring System

Portfolio Risk Contro

 ERISK System (E Fund's proprietary performance and risk evaluation system)

 Barra-Aegis Risk Management System

Our Proven Strengths

E fund operates a proprietary integrated analytical platform - ERISK, through which we transferred the function of risk management from the middle office to the front office. ERISK is also directly used by our investment and research team, thus improving the efficiency of risk management. Our proprietary risk models are frequently taken as reference in the development of industry standards, and many of the models have subsequently been adopted as industry standards.

Our Investment Risk Management is divided into three levels:

 Our ERISK platform provides reference data and support for the analysis and assessment of portfolio management and risk performance information. Hence it covers the asset allocation analysis of various asset classes, a detailed holdings analysis, a transaction analysis, as well as performance analysis, including efficient trading measures.

 A regular performance risk assessment report is provided for active public offering rights, index investments, fixed income products, financial planning, QDII strategies, RQFII and quantitative hedge strategies.

 Provision of early warning of portfolio risk: monitoring across the index system and warning mechanism per investment portfolio, with daily monitoring and action when triggered.

Complete Disaster Recovery System

E Fund is one of the companies within the asset management industry of China with the most complete IT system, disaster recovery center and disaster drilling system. E Fund is also the first company in the industry to use the disaster recovery center to conduct actual business operation on a trading day. E Fund has developed appropriate risk control and prevention measures in aspect of technology and business. We perform drills on a regular basis, so that to ensure the continuous and non-disruption operation of key business and achieve the purpose of reducing risks and losses.