E Fund was among the first batch of domestic institutions to sign the Principles for Responsible Investment (PRI) in 2017, making a firm-wide commitment to “Be a practitioner of responsible investment and promote sustainable development in society.”
Leading
As one of the earliest asset manager in China to embrace responsible investment, E Fund remains committed to being a practitioner of responsible investment and to advancing sustainable development in society. Since 2017, E Fund has joined the UN Principles for Responsible Investment (PRI) and other responsible investment organizations and initiatives, thereby aligning the Company with international standards for responsible investing. Meanwhile, E Fund actively shares its experience in implementing responsible investment in China through both domestic and international platforms, such as the Asset Management Association of China and the UN PRI, contributing to the development of global green finance.
Long-Term
E Fund has consistently adhered to an investment philosophy of “driven by in-depth research, time will reveal value”, which aligns closely with the core beliefs of responsible investment. From our point of view, companies with sound governance, a commitment to social harmony, and a focus on environmental friendliness tend to possess stronger capabilities for sustainable development and present lower investment risks. By conducting thorough research to identify and invest in such companies – and taking an active approach in our role as shareholders – E Fund aims to deliver long-term, sustainable returns to clients while contributing to broader societal progress.
In-Depth
Integration of In-Depth Research and Investment
Our dedicated ESG team has implemented asset-specific practical approaches to each asset class.
ESG is deeply integrated into the work of investment and research professionals, resulting in a wide range of research and investment initiatives, such as those focused on climate change and carbon neutrality, product safety and user protection, and employee rights and welfare. Building on these efforts, E Fund has developed an ESG evaluation framework tailored to China’s enterprises, effectively incorporating environmental, social, and governance factors into investment processes.
Robust Stewardship
E Fund truly believes that “voting with our hands” supports the high-quality development of listed companies.
As an institutional investor, E Fund places strong emphasis on enhancing the environmental performance of investee companies in the post-investment phase, facilitating the development of a green economy, and encouraging key companies to improve the quality of environmental disclosures, increase dividend payouts to enhance shareholder returns, and strengthen supply chain compliance. Meanwhile, E Fund proactively exercises shareholder rights through voting and has established a systematic voting process that ensures comprehensive analysis, full participation, and complete traceability for all major holdings.
Comprehensive
Top-Down Corporate Alignment
A top-down organizational structure ensures the comprehensive implementation of responsible investment at E Fund. The Investment Management Joint Committee is responsible for guiding the company’s responsible investment strategy and principles, as well as overseeing and supervising responsible investment practices. The committee is chaired by the company’s CEO. E Fund has also established a dedicated ESG team tasked with implementing the firm’s ESG strategy and integrating ESG considerations into investment and research processes. Team members include ESG analysts from each major asset class, along with professionals from other relevant departments.
Professional Coverage across All Asset Classes
E Fund’s dedicated ESG team provides comprehensive coverage across all asset classes, including active equity investment, fixed income investment, quantitative investment, and index investment. Team members consist of ESG analysts from each major asset investment and research department, as well as professionals from other relevant departments.
Comprehensive Integration of ESG Factors
E Fund incorporates ESG factors into investment decisions across different asset classes by leveraging its proprietary platforms, “Ark.James” and “Ark.ESG.” Powered by artificial intelligence and big data technologies, these platforms collect and generate high-quality ESG data to assess the impact of environmental, social, and corporate governance factors, thereby supporting a data-driven and comprehensive ESG investment process.
Rounded Product Matrix for Responsible Investment
On the active investment side, E Fund launched the E Fund Environmental Protection Fund in 2017 to support the development of environmentally related enterprises, and introduced the E Fund ESG Responsibility Investment Equity Launched Fund in 2019, incorporating ESG evaluation into the investment process. On the passive investment side, E Fund has developed a range of products, including the E Fund Carbon Neutral 100 ETF, the E Fund CSI Green Electricity ETF, the E Fund CSI Yangtze River Protection ETF, and the E Fund CSI China Mainland Low Carbon Economy ETF. In addition, E Fund is actively exploring the development of green and sustainable fixed income products, as well as sustainable equity products that comply with Article 8 of the EU SFDR, to meet a wide range of investment needs across multiple layers.
Sharing
Responsible investment is a systematic endeavor that requires the joint efforts and collaboration of asset owners, asset managers, policymakers, international organizations, and other stakeholders. While continuously enhancing our own responsible investment capabilities, E Fund is dedicated to contributing to global sustainable development and the advancement of green finance. We actively engage in communication and cooperation with various institutions both domestically and internationally, fostering the development of the responsible investment ecosystem.
In 2024, E Fund updated its Statement on Responsible Investment. The statement outlines E Fund’s approach to responsible investment, including the organizational and management framework, the responsible investment strategies adopted for different asset classes, and the company’s risk management measures for responsible investment. Given the potential long-term impacts of climate change on the environment, economy, and society, the statement also details E Fund’s consideration of climate change within its investment processes. Furthermore, as a responsible asset manager, E Fund provides comprehensive support for responsible investment across its operations, corporate culture, institutional responsibility, and data systems, thereby advancing sustainable development.
E Fund will continue to review and update its Statement on Responsible Investment to reflect business developments and the evolving landscape of responsible investment. We will also continue to share our leading practices in responsible investment.
Disclaimer: The content of this article is for reference only and is intended to provide information on responsible investment and our company (referring to E Fund Management Co., Ltd., hereinafter referred to as “the Company”). This article serves as a general introduction and does not constitute an offer or invitation to offer, nor any recommendation, commitment, or guarantee regarding any purchase or investment, nor does it imply or promise any return. E Fund makes no express or implied warranty as to the accuracy, reliability, timeliness, or completeness of this material, and shall not be held liable in any form for any consequences arising from the use of or reliance on this material. Without the Company’s prior written consent, no institution or individual may distribute, copy, reprint, or publish this article or any part thereof in any form, or make any deletion or modification contrary to its original intent. Any consequences arising therefrom shall be borne solely by the responsible party. Investment involves risks; investors should exercise caution.