E Fund Management and State Street Global Advisors Announce a New Environmental China A Share Strategy

Strong Commitment from Two Leading Asset Managers on Sustainable Investments and Research in the China Market

GUANGZHOU, China and HONG KONG, June 27, 2018 /PRNewswire/ -- E Fund Management, China's largest mutual fund manager, and State Street Global Advisors, the asset management arm of State Street Corporation (NYSE: STT), today announced the co-development of a new environmental China A share strategy, State Street – E Fund Environmental Driven China A Strategy ("the strategy").

State Street Global Advisors and E Fund, both among the largest asset managers in their respective markets, have been supporting their clients to increasingly integrate sustainable and responsible investing in their portfolios. Industry research suggests that companies with higher environmental, social and governance (ESG) scores and ratings can outperform comparable firms in different aspects, offering long term value to investors¹. This new strategy is designed to help investors effectively integrate environmental scoring into their Chinese equity portfolios. The strategy incorporates a bottom-up construction approach by combining sustainability metrics from a number of data providers with a focus on companies which are more carbon-efficient, generate higher green revenues, and have better environmental policies.

"We are delighted to announce a new environmental strategy for the China A-share market with State Street Global Advisors to address the growing investor demand," said Sau Kwan, President of E Fund. "While the concept of green development is embodied in all areas of economic and social development in the 13th Five-Year plan, the idea of environmental investing has recently raised a strong awareness and support from both government authorities and leading corporations in China. As an early adopter of ESG investment, we firmly believe incorporating these factors in our investment processes will bring long-term value to our investors and create sustainable impact to our industry. With increased interest in ESG from Chinese investors, E Fund is keen to continue its fulfillment on ESG principles as a responsible asset manager."

"We are excited about our collaboration with E Fund," James MacNevin, head of Asia Pacific, State Street Global Advisors, said. "ESG investing is central to our mission of investing responsibly to enable economic prosperity and social progress. Over 25% of the world's professionally managed assets came from sustainable investments², reflecting a shifting economic landscape where investors are looking for ways to put their capital to work in a more sustainable way, addressing their financial goals and responsible investing needs. Our heritage in ESG investing dates back to the launch of our first active ESG strategy in 1985. We believe our more than 30 years of experience in ESG investing, combined with E Fund's local expertise, will facilitate the development of sustainable investments in the China market."

State Street Global Advisors and E Fund are signatories to the United Nations Principles for Responsible Investment, sharing the same desire to incorporate ESG principles in their investment approaches.

In January 2017, E Fund Management and State Street Global Advisors signed a memorandum of understanding to jointly explore strategic opportunities across global markets, including China's fast-growing fund management industry.

About E Fund Management

Established on April 17, 2001, E Fund has grown to be a leading asset manager that provides comprehensive asset management services in China. During the past 17 years, the company has formulated competitive advantages with strong capabilities in investment and research, risk management, operations and talent investment. It has won the credibility of its clients through positive investment returns and stable services with market-oriented and professional operations. As of March 31, 2018, E Fund has overseen total AUM over US$ 203 billion/RMB 1.3 trillion, ranking the largest mutual fund manager in China. Headquartered in Guangzhou, China, E Fund has offices in Beijing, Shanghai, Dalian and Hong Kong.

About State Street Global Advisors

For four decades, State Street Global Advisors has served the world's governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world's third largest asset manager with nearly US $2.73 trillion* under our care.

*This figure is presented as of March 31, 2018 and includes approximately $56 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

SOURCE E Fund

Related Links

http://www.efunds.com.cn