Mr Kirkman noted that while emerging market consumption still looked promising, spending patterns were changing, with luxury sales now stronger in Europe than in China.
In one year the Global Equity fund is in line with the benchmark rising 21.9 per cent compared to 22 per cent for the MSCI All County World index, although in three and five years it has underperformed.
Backing China’s transition to a consumption-led economy
Peter Kirkman, JPMorgan Asset Management’s global equities manager, said of all the emerging markets: “I am the most positive about China”.
He argued that while Chinese growth has slowed, this was a natural part of a country’s economic cycle, and that structural reforms, while slow moving, were a positive step.
China’s economic rebalancing is an epic project. The boom in activity that made it the world’s newest superpower was largely driven by infrastructure that has proved an unsustainable growth model.
The Chinese government is now trying to shift the economy towards consumption, fuelled by an increase in disposable income and a stronger renminbi.
GDP growth in the third quarter suggested the country was on its way to achieving this, recording a 7.7 per cent annualised expansion , which was more angled towards the consumer growth in Q3, with a greater proportion driven by consumption than before.