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Fullgoal opens to Hong Kong’s retail market

The firm intends to launch an equity product that was formerly only available to professional investors.
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Fullgoal Asset Management has received approval from the Securities and Futures Commission (SFC) to offer the Fullgoal China Small-Mid Cap Growth Fund to Hong Kong’s retail investors, according to records from the regulator.

This will be the firm’s first retail fund in Hong Kong, the records show.

The China Small-Mid Cap Growth Fund is a Luxembourg-domiciled Ucits Sicav product and was launched in 2016 to professional investors, according to the firm’s website.

The product is co-managed by chief investment officer Zhang Feng and fund manager Ning Jun, both of whom are based in Hong Kong, according to the fund factsheet.

At least two-thirds of the fund invests in Hong Kong- and US-listed stocks of companies with operations mainly in China, Hong Kong or Macau, according to the product’s key facts statement.

The top three holdings — Shanghai Fudan Microelectronics, New Oriental Education and Alibaba — make up almost 20% of the entire portfolio (chart below).

The managers may also invest up to 30% of its assets in China A-shares via the Hong Kong-China connect schemes or through the renminbi qualified foreign institutional investor (RQFII) programme.

As of the end of May, the fund had $12.62m in assets.

FSA sought more information, but the firm was not able to provide more details in time for publication.

Fullgoal AM is a wholly-owned subsidiary of Shanghai-based Fullgoal Fund Management, which was established in 1999. As of the end of December, the parent group managed RMB 430.8bn ($62.8bn) in assets, on- and offshore.

Within China, excluding money-market funds, Fullgoal is the tenth-largest mutual fund company with RMB 150bn in assets, according to data from Morningstar Direct.

The firm also has a cross-border asset management venture with Canada’s BMO, which holds a 28% stake.

The Hong Kong office, which has eight investment team members, was set up in 2012, according to the firm’s website. It manages segregated accounts on behalf of global institutions and manages two private funds – the China Opportunities Fund, which takes long and short positions, and the  China Islamic Equity SP Fund, which invests in shariah-compliant equities listed in Hong Kong and China.

The Fullgoal China Small-Mid Cap Growth Fund

Top 10 holdings

Source: fund factsheet. As of the end of May.


Sector allocation

Source: fund factsheet. As of the end of May.



The Fullgoal China Small-Mid Cap Growth Fund versus the MSCI China Index

Source: FE Analytics. In US dollars. Note: Shown is the 3-year performance of the institutional share class, which is an offshore fund. The benchmark index, the MSCI China Free SMID Index yield (95%) + the HK three-month interbank lending rate (5%), is not available on FE.


Part of the Mark Allen Group.