On October 28, the third-quarter reports of funds managed by Zhang Kun of E Fund were disclosed. Portfolio adjustments showed a continued emphasis on domestic consumption and technology sectors, with increased holdings in Focus Media Information Technology Co., Ltd. (002027.SZ), Yum China (09987), and Alphabet Inc. (GOOGL.US). Some funds further boosted positions in Kweichow Moutai Co., Ltd. (600519.SH) and Wuliangye Yibin Co., Ltd. (000858.SZ).

Zhang Kun’s longest-managed fund, E Fund Quality Select Mixed (QDII), reported a net asset value per share of RMB 5.7973 by the end of the period, with a growth rate of 17.58%, outperforming its benchmark return of 13.57%. Holdings saw Prada (01913) exit the top ten, replaced by JD Health (06618) and Focus Media (002027.SZ). The fund also increased stakes in Kweichow Moutai and Wuliangye while reducing positions in Alibaba-W (09988) and Luzhou Laojiao Co., Ltd. (000568.SZ).

E Fund Blue Chip Select, the largest fund under Zhang’s management, posted a net asset value per share of RMB 2.0449, growing 16.37% against a benchmark return of 13.25%. Tencent Holdings, Alibaba-W, and Luzhou Laojiao saw reduced holdings, while Kweichow Moutai and Yum China were added, with Focus Media entering the top ten.

E Fund Quality Enterprise Three-Year Hold reported a net asset value per share of RMB 1.0393, up 15.81%, matching its benchmark. Most holdings, including Alibaba, were trimmed, except for a notable increase in Yum China. Top holdings remained Tencent, Alibaba, and Kweichow Moutai.

The QDII product E Fund Asia Select grew 17.63%, with ASML (ASML.US) and SK Hynix exiting its top ten, replaced by Alphabet and Prada. Reductions were made in Trip.com-S (09961) and TSMC (TSM.US).

Zhang Kun emphasized a bottom-up investment approach, targeting companies with strong business models, competitive advantages, and sustainable growth. He noted short-term market volatility often overlooks long-term structural factors. Despite recent economic headwinds, China’s domestic consumption market remains promising, with low valuations offering a margin of safety. Zhang expects China’s GDP and consumption growth to outpace global averages, supported by its vast unified market’s scale advantages. He remains confident that intrinsic value growth will eventually reflect in market capitalization.

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