With the average China-focused fund rising 36% over the past 12 months, it is no wonder that assets continue to flow to the 16 funds based in North America that focus exclusively on China, currently with more than $14 billion in assets,
But that growth is not sustainable, he says, noting that China funds have lagged emerging markets funds over the past three-, five- and 10-year timeframes.
Rocco is skeptical economic growth will continue to boom in China due to the fact that China is a communist country, and with that comes “political and governmental risks.”
In addition, China’s economy, heavily dependent on exports, would be hurt by protectionist measures by its trading partners in the U.S. and Europe.
