Kirchliche Zusatzversorgungskasse des Verbandes der Diözesen Deutschlands (KZVK), the €36bn occupational pension fund serving employees of the Catholic Church and charitable organisations in Germany, has selected Fullgoal Asset Management to run a $50m Chinese equities mandate.
According to Bloomberg, which cited sources familiar with the matter, the mandate will be invested across Chinese equities listed in Hong Kong, the mainland and the US. Fullgoal Asset Management, based in Hong Kong, is a subsidiary of Shanghai-headquartered Fullgoal Fund Management.
The appointment comes amid signs of renewed investor interest in Chinese markets. Improved market liquidity and rising international demand for Chinese assets drove a rebound in Hong Kong’s IPO market, which ranked as the world’s leading fundraising venue in the first half of 2025, according to PwC, despite ongoing geopolitical tensions and trade barriers.
KZVK has historically maintained a strategic underweight to China relative to its GDP and market capitalisation, reflecting its cautious approach to market-specific risks, board member Oliver Lang said at an event in May.
The pension fund has also started investing in India through a smaller mandate as it evaluates managers for a potential expansion in the market, Lang said.
KZVK currently allocates 8.52% of its assets to Asia, but targets an allocation of 10-25%, depending on the asset class.
Lang said the pension fund would continue to allocate capital to regions offering real economy and productivity growth in order to meet long-term return targets.
“Asia is expected to generate 50% of global GDP, underpinned by strong consumer demand from the middle class,” he said.
He added that large German pension funds increasingly allocate to Asia based on the economic weight of the region, viewing it as a core component of a diversified portfolio.
“From this perspective, it is necessary to invest in Asia. We started to systematically diversify our asset allocation globally in 2018, and Asia is in every asset class part of our [overall] strategic goals, but the vehicles and the partners used are different according to the asset class,” he said.
KZVK began investing in public and private equity in Asia following its 2018 strategy overhaul and has since expanded exposure to infrastructure and real estate across the region.
In real estate, the pension fund has increased allocations to residential and logistics assets in Asia and the US, primarily through pan-regional funds.
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