Genertec Investment Managers (GIM), a highly experienced onshore asset manager in China with $1.6 billion in assets under management, is looking to attract more institutional flows into its various investment products, including its sunshine fund – which have delivered robust returns to high-net-worth investors in recent years.
The Shanghai-based manager is backed by the powerful state-owned enterprise, China General Technology (Group) Holding Company, which is directly administered by the central government.
GIM manages a portfolio of CNY9 billion ($1.47 billion) on behalf of its parent, as well as at least CNY1 billion in a fund raised from the employees of China General Technology and a third (sunshine fund) raised from external high-net-worth individuals. This brings total assets under management for GIM to more than CNY10 billion.
Qi Song, CEO for GIM, said that the firm’s biggest strength is its long-term experience of investing over the market cycles in China, as well as its solid investment team. Many of GIM’s investment team members have been with the group for 10-15 years, and have developed strong allocation skills managing the firm’s parent company’s vast portfolio.
“Unlike most domestic asset managers, the GIM team has demonstrated excellent stock-picking skills and is highly experienced in allocating to various asset classes including listed equities, private equity as well as fixed-income and convertible bonds,” noted Qi.
The firm plans to eventually offer long/short funds to high-net-worth and institutional investors. GIM has been proactive in creating a global presence, too, having already established a Hong Kong office to invest in pre-IPO stocks that have generated significant profits for the group.
Qi, one of the most celebrated asset management professionals in China, has been the CEO of GIM since 2009 and has more than 18 years of experience working with the Genertec asset management subsidiary since it was established.
Under his stewardship, GIM has created a spectrum of investment products for institutional and high-net-worth individuals, including the Dinxin series of alternative products. The team is set to launch its fourth Dinxin product soon.
Qi noted that a key edge for GIM’s investment team comes from the parent’s company’s presence in core sectors in China including pharmaceutical, equipment and manufacturing, trade and engineering integration, technical and consulting, construction and real estate.
China General Technology (Group) Holding is also one of the largest technology-focused firms in China and one of the largest importers and exporters of light industrial products, as well as being the largest distributor and service provider of mobile communication terminal products in the country.
“The market intelligence and deep understanding of the industries in China that we get because of our parent company add a completely different dimension to our investment process and team,” explained Qi.
Qi’s team at GIM has managed to deliver positive returns to its parent portfolio for nearly two decades. The firm, which employs 52 staff, has about 30 people in its investment team.