E Fund’s Zhang Kun Steps Down from Flagship Fund
TREE NEWS reports: In a regulatory filing early on September 30, E Fund Management announced a change in fund manager for its E Fund Quality Enterprise 3-Year Holding Period Mixed Securities Investment Fund. Zhang Kun, one of China’s most prominent mutual fund managers, has officially stepped down from managing the fund. Going forward, the fund will be solely managed by Zhang Qi.
This follows a June 27 announcement that Zhang Qi was added as a co-manager. The latest move makes Zhang Qi the sole manager of the fund, which has a three-year holding period.
Who is Zhang Qi?
Zhang Qi holds a Ph.D. in engineering and joined E Fund in July 2017. He previously served as an investment manager and industry researcher, and became a fund manager in April 2022. His investment philosophy focuses on technological change and social transformation, preferring a top-down approach to select growth companies. Since taking charge, his funds have generally outperformed their benchmarks.
Industry sources describe Zhang Qi as a core equity investment talent cultivated internally at E Fund, with a style driven by fundamental research. His independent stewardship of the E Fund Quality Enterprise 3-Year fund is seen as a structured arrangement for succession planning and style continuity.
Zhang Kun Remains with E Fund
Zhang Kun will continue to serve as Senior Managing Director and a member of the Equity Investment Decision Committee at E Fund. His other funds remain unchanged. He currently co-manages E Fund Blue Chip Select Mixed, E Fund Asia Select Stock, and E Fund Quality Select Mixed (QDII). Specifically, E Fund Blue Chip Select is co-managed with Yang Siliang and He Yicheng; E Fund Quality Select Mixed (QDII) is co-managed with Peng Ke; and Zhang Kun solely manages E Fund Asia Select Stock.
In recent years, top public fund managers have voluntarily reduced their assets under management to focus on core products. The adjustment to Zhang Kun’s management structure is reportedly part of this trend, allowing him to concentrate his efforts.
Market Implications
The departure of a star manager from a flagship fund can have ripple effects across Chinese equity markets. Zhang Kun is known for his large-cap growth and consumer-focused investment style, and his funds have significant holdings in sectors like liquor, healthcare, and technology. A change in management could lead to portfolio repositioning, potentially affecting stock prices of companies heavily held by his funds.
However, the transition appears orderly, with Zhang Qi having been co-manager since June. This may reduce sudden portfolio turnover. Still, investors in the fund may reassess their holdings, leading to potential redemption pressures. The broader mutual fund industry in China is undergoing a shift toward team-based management and reducing reliance on star managers, which could lead to more stable, research-driven strategies over the long term.
For the market, this event is a reminder of the growing maturity of China’s asset management industry. It also highlights the importance of succession planning and the move away from individual-centric fund management. While Zhang Kun remains influential in his other roles, his reduced direct management may signal a gradual transition in his career.
Key Takeaways for Investors
- Portfolio repositioning risk: Watch for changes in the fund’s holdings as the new manager may adjust sector allocations.
- Redemption pressure: Some investors may redeem shares due to the manager change, potentially impacting fund performance and related stocks.
- Long-term stability: The shift to a team-based approach could lead to more consistent, research-driven investment decisions.
- Monitor Zhang Kun’s other funds: His continued management of other funds may see increased focus and potential outperformance.
Overall, this is a notable event in China’s fund industry, reflecting broader trends of professionalization and risk management. Investors should stay informed about further developments and assess their exposure accordingly.
