Posted inHead To Head

HEAD-TO-HEAD: China Universal Value Selected versus E Fund Kexiang

FSA compares two China equity products: the China Universal Value Selected Fund and the E Fund Kexiang Fund.
by Fund Selector Asia

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Performance

Given these two funds’ growth-oriented investment styles, they are generally expected to outperform when growth stocks rally, but lag when more defensive and value stocks are in favour, according to Qu.

That being said, investors might also see divergence in performance of these two offerings in different growth market environments.

“We expect E Fund Kexiang to outperform when growth sectors and small- and mid-cap stocks lead the market, such as in 2021. Given its more diversified sector allocation and quality focus, China Universal Value Selected appears to be more downside resilient than E Fund Kexiang, as evident in the bear market of 2018,” she said.

The China Universal Value Selected fund has generated a 75.91% three-year cumulative return, in renminbi, according to Morningstar, outperforming its benchmark CSI 300 Index (42.88%), but the sector average (107.8%) performed better in the same period. Its annualised volatility is 17.73% during the same period.

E Fund Kexiang has generated a 188.64% three-year cumulative return, in renminbi, according to Morningstar, outperforming its benchmark CSI 300 Index (42.88%) as well as its sector average (107.8%). Its annualised volatility is 21.85% during the same period.

Discrete calendar year performance

Fund/Sector

YTD*

2021

2020

2019

2018

2017
China Universal Value Selected

-7.37%

-4.95%

47.58%

40.12%

-13.86%

28.37%
E Fund Kexiang

-12%

27.61%

64.83%

60.73%

-25.49%

25.21%
Sector average

-9.88%

8.18%

41%

33.57%

-13.93%

10.54%
Benchmark- CSI 300 Index

-6.08%

-5.20%

27.21%

36.07%

-25.31%

21.78%
Source: fund.eastmoney.com. Annual returns in RMB. *31 Dec 2021 – 10 February 2022

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