Posted inHead To Head

HEAD-TO-HEAD: E Fund vs CMS

FSA compares the E Fund RMB Fixed Income Fund and the CMS China Opportunities Flexifund, the best and the worst performer in the Chinese RMB fixed income category.
by Fund Selector Asia
Manager review

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Both E Fund Management (HK) and CMS Asset Management (HK) are subsidiaries of mainland China institutions. “Both teams have investment personnel in Hong Kong, but they also are able to rely on the resources of the parent company in China, which is one of their advantages,” said Ng. “They have the local knowledge.”

Chinese asset management companies tend to be opaque about the structure, style, and even personnel of the management team. In particular, CMS Asset Management (HK) names itself as the fund manager, without providing more detail.

E Fund is more transparent, naming as co-managers Sabrina Wang, based in China, and Jeffrey Qi, based in Hong Kong. The key personnel, responsible for investment research and trading, is based in China, according to Ng.

In Ng’s opinion, E Fund surpasses most Chinese fixed income asset managers based on the strength of their credit analysis team. “They are probably the first [firm] that began to build credit analysis research in China and dedicated quite a lot of resources to it to assist their [bond selection],” he said. “This is E Fund’s core advantage among Chinese fund managers.”

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