China funds deliver best returns for UK investors

Funds investing in China delivered the best returns to UK investors in the first half of 2017 as riskier parts of global stock markets paid off. Funds investing in China returned nearly 19% to investors on average over the six months to June 30, according to data from Morningstar. Returns from China were closely followed by funds investing in the Asia Pacific region, which returned 15%, and those buying small-cap companies in both Europe and the UK, which returned the same. “Investor sentiment has remained incredibly positive in 2017 and this is reflected in the returns from high-risk sectors like Asia and emerging markets and smaller company equities,” Patrick Connolly, financial adviser at Chase de Vere, told the Financial Times. Ben Yearsley, director at Shore Financial, said China in particular was still a cheap market and that its growth story was attracting investors.