Fullgoal, which has around $200 billion in assets under management from mostly Chinese and international institutional investors, with investment teams in Shanghai and Hong Kong, is expanding its distribution to cover the Australian and New Zealand markets.
The company has chosen to be represented by Australian-based third-party distribution company 3PD.
Zhang Feng, chief investment officer of Fullgoal Hong Kong, stated the Chinese investment markets have become “deep, liquid and well-regulated to a level required by institutional investors”.
“We expect to continue delivering strong returns for our investors in areas they have had little access,” Mr Feng said.
“For instance, most global managers rarely stray from benchmark included securities and US managers are becoming more politically constrained. Without these constraints and comprehensive, fundamental coverage of small and mid-cap stocks, we easily differentiate and add value.”
3PD co-founder Robert Harrison commented that Australian investors, unlike their international counterparts, have been “hesitant to invest in country specific strategies”.
“This has been in part due to a perceived lack of return for the added risk and the monitoring costs. As investors continue their quest for superior risk adjusted returns and competitive advantage, they cannot continue to leave this potential source off the table,” Mr Harrison said.
“What is changing and why this is relevant now is that the world is experiencing another economic catastrophe from which there will be long term winners (Asia Pacific 20 per cent of market capitalisation) and losers (the Americas and Europe, 80 per cent of market capitalisation).”
He also weighed in on the political tensions between Australia and China, commenting it is “only one of several analysis factors”.
