Consumer focus remains key to Chinese returns

China/Greater China only became a separate IMA fund sector at the start of this year, recognising the growing number of vehicles focusing on this part of the world.

This recent surge in popularity is shown by the fact eight of the 26 funds in the sector have launched in the last three years – long-term track records are still relatively rare. Yet, while China remains the world’s dominant macro story, economic prevalence does not necessarily translate into returns, as can be seen by poor performance from some China-focused funds. Of the vehicles performing well in the region, growing domestic demand and consumerism are dominant themes. Heading the sector over 12 months to 31 January is Neptune China, with Doug Turnbull highlighting his overweight ...