The No 1 US fund with exposure to Chinese stocks is making a big bet on the country's transition to a new economy, boosting holdings of consumer and technology companies.

The Invesco Greater China Equity Fund, which has a total return of 1.54 percent this year through June 16, was the best performer among 47 US-listed global funds tracked by Bloomberg with at least a 25 percent exposure to China. Goldman Sachs Group Inc's Emerging Market Equity Insights Fund ranked second with a 0.94 percent return. These managers sidestepped a 19 percent drop in the Shanghai Composite Index and a 13 percent retreat in the Hang Seng China Enterprises Index.

"We haven't done any magic," Mike Shiao, who manages $2.1 billion as chief investment officer for Asia ex-Japan at Invesco Hong Kong Ltd, told Bloomberg in a phone interview. "The out-performance is really based on our long-term investment approach, rather than a one-year surprise."