Fund Fact Sheet

Transcription

Fund Fact Sheet

Matthews Asia Funds | First Quarter 2015
Quarterly Fact Sheets
ASIA FIXED INCOME STRATEGY
Matthews Asia Strategic Income Fund
ASIA GROWTH AND INCOME STRATEGIES
Matthews Asian Growth and Income Fund
Matthews Asia Dividend Fund
Matthews China Dividend Fund
ASIA GROWTH STRATEGIES
Matthews Asia Focus Fund
Matthews Asia Growth Fund
Matthews Pacific Tiger Fund
Matthews Emerging Asia Fund
Matthews China Fund
Matthews India Fund
Matthews Japan Fund
Matthews Korea Fund
ASIA SMALL COMPANY STRATEGIES
Matthews Asia Small Companies Fund
Matthews China Small Companies Fund
ASIA SPECIALTY STRATEGY
Matthews Asia Science and Technology Fund
1Q
Our Approach to Investing in Asia
Active management
We believe many of the region’s widely used equity indices
are backward looking and are not representative of the
industries and companies that will be successful in the future.
With respect to the region’s debt indices, we believe they are
representative of the most indebted countries as opposed to
the most creditworthy.
STRATEGIES FOR INVESTING IN ASIA
ASIA FIXED INCOME
❁ Asia Strategic Income
Long-term focus on Asia
We believe a long-term approach is the most effective way to
capitalize on Asia’s evolution.
Matthews has been investing in Asia since 1991 and we draw
on our experience to identify investment opportunities that
stand to benefit from the growth and development of
markets throughout the region.
ASIA GROWTH AND
INCOME
ASIA GROWTH
❁ Asian Growth
❁ Asia Focus
❁ Asia Growth
❁ Pacific Tiger*
❁ China Dividend
❁ Emerging Asia
❁ China
❁ India
❁ Japan
❁ Korea
ASIA SPECIALTY
ASIA SMALL COMPANY
❁ Asia Science and
❁ Asia Small Companies
❁ China Small Companies
and Income
❁ Asia Dividend*
Bottom-up research
We employ a fundamental, bottom-up investment process.
For equities, we seek to identify companies with sustainable
long-term growth prospects, strong business models, quality
management teams and reasonable valuations. For debt
securities, we look for issuers that demonstrate strength in
credit, currencies and interest rates.
Technology
This research process involves more than 2,500 company
meetings each year.
Defining Asia’s investment strategies
We strive to provide investors a range of Asia strategies across
the risk-reward spectrum and launch new strategies when
there are compelling investment opportunities in the region.
❁ Regional fund designed for use as a core portfolio holding
❁ Asian fund designed to complement core portfolio holdings
* Closed to most new investors.
Matthews Asia Funds
We provide the broadest range of Asia funds available for building a portfolio that includes exposure
to one of the world’s fastest-growing regions.
matthewsasia.com
Cover Image: Matsumoto, Japan
Matthews Asia Funds
Quarterly Fact Sheets
Contents
ASIA FIXED INCOME STRATEGY
2
ASIA GROWTH AND INCOME STRATEGIES
4
6
8
10
12
14
16
Matthews China Fund
18
Matthews India Fund
20
Matthews Japan Fund
22
Matthews Korea Fund
24
ASIA SMALL COMPANY STRATEGIES
26
28
30
ASIA FIXED
INCOME STRATEGY
March 31, 2015
Investment Objective
Seeks total return over the long term with an emphasis on income.
Strategy
FUND FACTS
Investor Class Institutional Class
Ticker
CUSIP
Inception
NAV
Initial Investment
Gross Expense Ratio1
After Fee Waiver
and Expense
Reimbursement2
MAINX
577125503
11/30/11
$10.38
$2,500
1.28%
MINCX
577125602
11/30/11
$10.37
$3 million
1.09%
1.10%
0.90%
Portfolio Statistics
Total # of Positions
Net Assets
Modified Duration3
Portfolio Turnover
Under normal market conditions, the Fund seeks to achieve its investment objective by
investing at least 80% of its total assets, which include borrowings for investment
purposes, in income-producing securities including, but not limited to, debt and
debt-related instruments issued by governments, quasi-governmental entities,
supranational institutions, and companies in Asia, which consists of all countries and
markets in Asia, including developed, emerging, and frontier countries and markets in
the Asian region. Investments may be denominated in any currency, and may represent
any part of a company’s capital structure from debt to equity or with features of both.
Risks
All investments involve risks, including possible loss of principal. Investing in international and
emerging markets may involve additional risks, such as social and political instability, market
illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation.
PERFORMANCE AS OF MARCH 31, 2015
Average Annual Total Returns
51
$69.3 million
3.9
34.28%4
Benchmark
HSBC Asian Local Bond Index
Redemption Fee
2% within first 90 calendar days of purchase
3 Months
1 Year
3 Years
5 Years
10 Years
Since
Inception
Investor Class (MAINX)
0.69%
0.69%
1.34%
4.06%
n.a.
n.a.
4.58%
Institutional Class (MINCX)
0.74%
0.74%
1.45%
4.25%
n.a.
n.a.
4.76%
0.32%
0.32%
2.77%
1.51%
n.a.
n.a.
2.43%
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
$12,500
$12,000
$11,612
$11,500
$11,554
$11,000
Risks
An investment in the Fund is subject to credit,
currency and interest rate risks. Credit risk is the
change in the value of debt securities reflecting
the ability and willingness of issuers to make
principal and interest payments. Currency risk is
a decline in value of a foreign currency relative
to the U.S. dollar which reduces the value of the
foreign currency and investments denominated
in that currency. Interest rate risk is the possibility
that a Fund’s yield will decline due to falling
interest rates and the potential for bond prices
to fall as interest rates rise. The Fund may
invest in the following: derivatives which can
be volatile and affect Fund performance; high
yield bonds (junk bonds) which can subject the
Fund to substantial risk of loss; and structured
investments which can change the risk or return,
or replicate the risk or return of an underlying
asset. The Fund is subject to risks associated
with investing in a concentrated fund, and the
value of the Fund will be greatly affected by the
fluctuations in the value of a single security.
YTD
$10,834
$10,500
Lipper Emerging Markets Hard
Currency Debt Funds Category
Average 5
$10,000
$9,500
11/11
11/12
11/13
03/15
The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital
gain distributions or redemption of fund shares. Values are in US$.
1 Matthews Asia Funds does not charge 12b-1 fees.
2 Matthews has contractually agreed to waive fees and reimburse expenses until August 31, 2015 to the extent needed
to limit Total Annual Fund Operating Expenses to 0.90% by waiving class specific and non-class specific expenses for
the Institutional Class and agreed to reduce the expense ratio by waiving an equal amount of non-class specific
expenses for the Investor Class. Because certain expenses of the Investor Class may be higher than the Institutional
Class and class specific expenses may be waived solely for the Institutional Class, the Total Annual Fund Operating
Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may exceed 0.90%. If the expenses fall
below the expense limitation in a year within three years after Matthews has made such a waiver or reimbursement, the
Fund may reimburse Matthews up to an amount not to cause the expenses for that year to exceed the expense
limitation. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the
Trust on behalf of the Fund on 60 days’ written notice.
3 Modified duration measures the percent change in value of the fixed income portion of the portfolio in response to a
1% change in interest rates. In a multi-currency denominated portfolio with sensitivities to different interest rate
regimes, modified duration will not accurately reflect the change in value of the overall portfolio from a change in any
one interest rate regime. Source: FactSet Research Systems, Bloomberg, BNY Mellon Investment Servicing (US) Inc. For
detailed modified duration exposures by currency, please see the next page.
4 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value
of long-term securities. 5 The Lipper Category Average does not reflect sales charges and is based on total return, including reinvestment of
dividends and capital gains for the stated periods.
Performance assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance and is no guarantee of future results. Investment
return and principal value will fluctuate with market conditions so that when redeemed, shares may
be worth more or less than their original cost. Current performance may be lower or higher than the
return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses had
not been waived. For the Fund’s most recent month-end performance visit matthewsasia.com.
FS017_MAINX_1Q15
2
PORTFOLIO MANAGEMENT
March 31, 2015
TOP TEN POSITIONS
% of Net
Assets
Sector
Currency
DFCC Bank PLC, 9.625%, 10/31/2018
Financials
USD
4.1%
Homeinns Hotel Group, Cnv., 2.000%, 12/15/2015
Consumer Discretionary
USD
3.9%
PT Perusahaan Listrik Negara, 5.250%, 10/24/2042
Utilities
USD
3.5%
Housing Development Finance Corp., Ltd., 9.580%, 08/29/2015
Financials
INR
3.5%
Yum! Brands, Inc., 5.350%, 11/01/2043
USD
3.2%
TML Holdings Pte, Ltd., 5.750%, 05/07/2021
USD
3.1%
Bank of Baroda, 6.625%, 05/25/2022
Financials
USD
3.0%
ICICI Bank, Ltd., 6.375%, 04/30/2022
Financials
USD
3.0%
Longfor Properties Co., Ltd., 6.875%, 10/18/2019
Financials
USD
3.0%
PT Bank Rakyat Indonesia Persero, 2.950%, 03/28/2018
Financials
USD
% OF ASSETS IN TOP TEN
2.9%
33.2%
COUNTRY ALLOCATION (%) 6,7*
CURRENCY (%) 6,7
By Issuer's country of risk
Weight
Modified
Duration*
China/Hong Kong
29.1
U.S. Dollar
58.2
4.6
India
21.3
Indian Rupee
11.8
2.1
Indonesia
18.7
China Renminbi
7.7
2.1
Sri Lanka
13.1
Indonesian Rupiah
5.8
5.7
Singapore
2.8
Sri Lanka Rupee
5.5
2.7
South Korea
2.7
Hong Kong Dollar
2.9
1.7
Philippines
2.3
Korean Won
2.7
2.4
Japan
2.2
Thai Baht
0.8
0.0
Australia
1.9
0.0
1.2
Thailand
0.8
Philippines Peso
Cash and Other Assets, Less
Liabilities
0.7
Supranational
3.9
0.0
Cash and Other Assets, Less Liabilities
3.9
*A supranational is an international organization in which
member states transcend national boundaries, (ex. IMF).
Source: FactSet Research Systems
*Fixed income portion of the portfolio
QUALITY DISTRIBUTION (%) 8
SECTOR ALLOCATION (%) 6,7
Rating
Financials
45.7
17.0
Foreign Government Bonds*
14.7
AAA
1.2
AA
0.6
AA-
2.1
A+
0.4
BBB
4.7
BBB-
14.9
BB+
2.2
BB
11.0
BB-
7.8
B+
14.8
B
4.1
Not Rated
30.3
Source: FactSet, Moody’s, S&P and Fitch
Gerald M. Hwang, CFA
Co-Manager
Satya Patel
Co-Manager
INVESTMENT APPROACH
Matthews International Capital Management,
LLC, the advisor to Matthews Asia Funds, believes
in the long-term growth of Asia, one of the
world’s fastest-growing regions. Since 1991,
we have focused our efforts and expertise in
these countries, investing through a variety of
market environments. Matthews is the largest
dedicated Asia-only investment specialist in the
United States. With $30.0 billion in assets under
management as of March 31, 2015 Matthews
employs a bottom-up, fundamental investment
philosophy with a focus on long-term investment
performance.
You should carefully consider the investment
objectives, risks, charges and expenses of
the Matthews Asia Funds before making an
investment decision. A prospectus or summary
prospectus with this and other information
about the Funds may be obtained by visiting
matthewsasia.com. Please read the prospectus
carefully before investing as it explains the
risks associated with investing in international
and emerging markets.
INDEX DEFINITIONS
Utilities
7.1
Telecom Services
4.5
Industrials
4.3
Consumer Staples
2.4
Information Technology
0.4
3.9
The HSBC Asian Local Bond Index (ALBI) tracks the total
return performance of a bond portfolio consisting of
local-currency denominated, high quality and liquid
bonds in Asia ex-Japan. The ALBI includes bonds from the
following countries: Korea, Hong Kong, India, Singapore,
Taiwan, Malaysia, Thailand, Philippines, Indonesia and
China.
Matthews Asia Funds are distributed in the United
States by Foreside Funds Distributors LLC
Matthews Asia Funds are distributed in Latin America
by HMC Partners
*Foreign Government Bonds includes supranationals
ASSET TYPE BREAKDOWN (%) 6,7
Corporate Bonds
69.5
Government Bonds
14.7
Convertible Bonds
9.9
Common Equities and ADRs
2.0
3.9
6 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to
rounding.
7 Cash and Other Assets may include the mark-to-market value of forward currency exchange contracts and certain derivative
instruments.
8 Credit quality is provided for the underlying bond holdings of the Fund and does not include common equities, cash and
other assets and percentage values will not total 100%. Credit quality rating symbols reflect that of S&P and generally credit
ratings range from AAA (highest) to D (lowest). When ratings from Moody’s, S&P and Fitch are available for a bond in the
Fund, the middle rating of the three is used. When two ratings are available, the lowest rating is used. When only one rating
is provided, that one is used. Foreign government bonds without a specific rating are assigned the country rating provided
by one of the three agencies. Securities that are not rated by any one of the three agencies are reflected as such.
©2015 Matthews International Capital Management, LLC
Teresa Kong, CFA
Lead Manager
800.789.ASIA | matthewsasia.com
3
ASIA GROWTH AND
INCOME STRATEGIES
March 31, 2015
Long-term capital appreciation with some current income.
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MACSX
577130206
09/12/94
$18.37
$2,500
1.08%
Net Assets
Weighted Average Market Cap
Portfolio Turnover
MICSX
577130842
10/29/10
$18.36
$3 million
0.93%
61
$4.1 billion
$35.3 billion
16.79%2
Under normal market conditions, the Matthews Asian Growth and Income Fund seeks to
achieve its investment objective by investing at least 80% of its total net assets, which
include borrowings for investment purposes, in dividend-paying common stock,
preferred stock and other equity securities, and convertible securities as well as fixedincome securities, of any duration or quality, of companies located in Asia, which
consists of all countries and markets in Asia, including developed, emerging, and frontier
countries and markets in the Asian region. The Fund attempts to offer investors a
relatively stable means of participating in a portion of the Asian region’s growth
prospects, while providing some downside protection, in comparison to a portfolio that
invests purely in common stocks. The strategy of owning convertible bonds and
dividend-paying equities is designed to help the Fund to meet its investment objective
while helping to reduce the volatility of its portfolio.
Risks
3 Months
Benchmark
MSCI AC Asia ex Japan Index3
Redemption Fee
YTD
1 Year
Investor Class (MACSX)
2.00%
2.00%
0.86%
6.69%
6.64%
2.00%
2.00%
1.03%
6.85%
n.a.
MSCI AC Asia ex Japan Index
4.90%
4.90% 11.02%
7.11%
10 Years
Since
Inception
9.06% 10.13%
n.a.
5.04%
6.53% 10.08% 4.35%4
$72,647
performance.
5 Years
Institutional Class (MICSX)
$80,000
INVESTMENT APPROACH
3 Years
$60,000
Lipper Pacific Region Funds Category
Average4,5
$40,000
$25,244
$20,000
$0
Matthews Asian Growth and Income
Fund
$24,002
09/94
05/98
01/02
09/05
05/09
03/15
of long-term securities.
3 The MSCI All Country Asia ex Japan Index is a free float-adjusted market capitalization-weighted index of the stock
markets of China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.
The Matthews Asian Growth and Income Fund invests in countries that are not included in the MSCI All Country Asia
ex Japan Index. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital
International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc.
4 Calculated from 8/31/94.
5 The Lipper Category Average does not reflect sales charges and is based on total return, including reinvestment of
FS004_MACSX_1Q15
4
March 31, 2015
Robert J. Horrocks, PhD
Lead Manager
Kenneth Lowe, CFA
Lead Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
AIA Group, Ltd.
China/Hong Kong
3.7%
Jardine Matheson Holdings, Ltd.
China/Hong Kong
3.7%
Taiwan Semiconductor Manufacturing Co., Ltd.
Hong Kong Exchanges and Clearing, Ltd., Cnv., 0.500%,
10/23/2017
Taiwan
3.6%
China/Hong Kong
2.9%
Japan Tobacco, Inc.
Japan
2.9%
Singapore Technologies Engineering, Ltd.
Singapore
2.7%
Ascendas REIT
Singapore
2.5%
Yum! Brands, Inc.
China/Hong Kong
2.4%
United Overseas Bank, Ltd.
Singapore
2.4%
Globe Telecom, Inc.
Philippines
2.3%
29.1%
COUNTRY ALLOCATION (%) 7
Fund
SECTOR ALLOCATION (%) 7
Benchmark Difference
Fund
China/Hong Kong
36.2
40.0
-3.8
Financials
20.3
33.2
Singapore
15.0
5.8
9.2
Industrials
17.3
8.5
8.8
South Korea
9.4
17.9
-8.5
Consumer Staples
15.7
5.3
10.4
Malaysia
7.9
4.2
3.7
15.4
8.3
7.1
Japan
6.3
0.0
6.3
Telecom Services
13.4
6.7
6.7
Taiwan
5.0
15.3
-10.3
7.5
22.5
-15.0
Thailand
4.9
2.9
2.0
Utilities
4.9
4.1
0.8
Australia
3.8
0.0
3.8
Materials
2.0
4.6
-2.6
New Zealand
3.2
0.0
3.2
Energy
1.8
4.8
-3.0
Indonesia
3.1
3.3
-0.2
1.8
2.0
-0.2
Philippines
2.3
1.7
0.6
Vietnam
1.6
0.0
1.6
Health Care
Liabilities in Excess of
Cash and Other Assets
-0.1
0.0
-0.1
United Kingdom
1.4
0.0
1.4
India
0.0
8.9
-8.9
-0.1
0.0
-0.1
Sector data based on MSCI’s revised Global Industry
Classification Standards. For more details,
visit www.msci.com.
MARKET CAP EXPOSURE (%) 7,8
ASSET TYPE BREAKDOWN (%) 7,9
Fund
37.2
47.2
-10.0
Large Cap ($10B-$25B)
24.0
25.7
-1.7
Mid Cap ($3B-$10B)
25.7
23.0
2.7
Small Cap (under $3B)
13.2
4.1
9.1
-0.1
0.0
-0.1
8
9
investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by
visiting matthewsasia.com. Please read the
prospectus carefully before investing as it
explains the risks associated with investing in
international and emerging markets.
by HMC Partners
-12.9
Mega Cap (over $25B)
6
7
87.6
Convertible Bonds
9.2
Preferred Equities
Liabilities in Excess of Cash and Other
Assets
3.3
-0.1
Holdings may combine more than one security from the same issuer and related depositary receipts.
Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due
to rounding.
Equity market cap of issuer.
Bonds are not included in the MSCI All Country Asia ex Japan Index.
5
ASIA GROWTH AND
INCOME STRATEGIES
March 31, 2015
Closed to most new investors. See Prospectus for details.
Total return with an emphasis on providing current income.
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MAPIX
577125107
10/31/06
$16.56
$2,500
1.06%
Net Assets
Portfolio Turnover
MIPIX
577130750
10/29/10
$16.56
$3 million
0.93%
71
$5.5 billion
$31.4 billion
20.06%2
Benchmark
MSCI AC Asia Pacific Index3
Redemption Fee
Under normal market conditions, the Matthews Asia Dividend Fund seeks to achieve its
investment objective by investing at least 80% of its total net assets, which include
borrowings for investment purposes, in income-paying equity securities of companies
located in Asia, which consists of all countries and markets in Asia, including developed,
emerging, and frontier countries and markets in the Asian region. The Fund may also
invest in convertible debt and equity securities. The Fund seeks to provide a level of
current income that is higher than the yield generally available in Asian equity markets
over the long term.
Risks
illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. There is
no guarantee that the Fund or the companies in its portfolio will pay or continue to pay
dividends.
3 Months
YTD
1 Year
3 Years
5 Years
Investor Class (MAPIX)
8.64%
8.64% 10.50%
9.53%
8.15%
Institutional Class (MIPIX)
8.68%
8.68% 10.61%
9.68%
n.a.
MSCI AC Asia Pacific Index
6.79%
6.79%
7.86%
6.05%
8.89%
10 Years
Since
Inception
n.a. 10.15%
n.a.
7.28%
n.a. 3.89%4
$25,000
$22,547
$20,000
INVESTMENT APPROACH
performance.
$15,000
$14,468
Average4,5
$13,783
$10,000
$5,000
10/06
02/08
06/09
10/10
02/12
06/13
03/15
3 The MSCI All Country Asia Pacific Index is a free float-adjusted market capitalization-weighted index of the stock
markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South
Korea, Taiwan and Thailand. The Matthews Asia Dividend Fund invests in countries that are not included in the MSCI
All Country Asia Pacific Index. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley
Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc.
FS002_MAPIX_1Q15
6
March 31, 2015
Yu Zhang, CFA
Lead Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
Japan Tobacco, Inc.
Japan
4.1%
Pigeon Corp.
Japan
3.6%
Suntory Beverage & Food, Ltd.
Japan
3.2%
Shenzhou International Group Holdings, Ltd.
China/Hong Kong
3.0%
Hoya Corp.
Japan
3.0%
Toyota Motor Corp.
Japan
2.9%
Bridgestone Corp.
Japan
2.4%
Yum! Brands, Inc.
China/Hong Kong
2.3%
KT&G Corp.
South Korea
2.2%
Minth Group, Ltd.
China/Hong Kong
2.1%
28.8%
Fund
China/Hong Kong
29.3
18.3
11.0
Japan
29.1
40.6
-11.5
Singapore
6.4
2.7
3.7
South Korea
6.0
8.2
-2.2
Indonesia
5.4
1.5
3.9
Australia
5.0
13.3
Taiwan
5.0
7.0
India
4.5
4.1
Thailand
3.1
Luxembourg
1.9
Philippines
Fund
Consumer Staples
24.4
6.2
18.2
22.4
13.2
9.2
Industrials
12.8
12.6
0.2
Telecom Services
11.4
5.5
5.9
Financials
8.0
30.1
-22.1
-8.3
7.8
15.0
-7.2
-2.0
Utilities
4.0
3.1
0.9
0.4
Health Care
3.9
4.5
-0.6
1.3
1.8
Materials
3.2
6.7
-3.5
0.0
1.9
0.0
3.1
-3.1
1.2
0.8
0.4
Vietnam
1.0
0.0
1.0
Energy
Cash and Other Assets,
Less Liabilities
2.1
0.0
2.1
Malaysia
0.0
1.9
-1.9
New Zealand
Less Liabilities
0.0
0.3
-0.3
2.1
0.0
2.1
visit www.msci.com.
ASSET TYPE BREAKDOWN (%) 7
Fund
Robert J. Horrocks, PhD
Lead Manager
Vivek Tanneeru
Co-Manager
by HMC Partners
26.0
47.8
-21.8
22.3
25.4
-3.1
Mid Cap ($3B-$10B)
31.3
24.0
7.3
Less Liabilities
18.3
2.8
15.5
2.1
0.0
2.1
95.8
Preferred Equities
2.1
2.1
P/E RATIOS 9
P/E Using FY1 Estimates
15.3x
13.8x
Source: Factset Research Systems (P/E est. as of 03/31/15)
6
7
8
Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding.
9
The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire
portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates
are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be
achieved.
7
ASIA GROWTH AND
INCOME STRATEGIES
March 31, 2015
Total return with an emphasis on providing current income.
Strategy
Under normal market conditions, the Matthews China Dividend Fund seeks to achieve
its investment objective by investing at least 80% of its total net assets, which include
borrowings for investment purposes, in income-paying equity securities of companies
located in China. China includes its administrative and other districts, such as Hong
Kong. The Fund may also invest in convertible debt and equity securities. The Fund
seeks to provide a level of current income that is higher than the yield generally
available in Chinese equity markets over the long term.
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MCDFX
577125305
11/30/09
$14.31
$2,500
1.24%
Net Assets
Portfolio Turnover
MICDX
577130735
10/29/10
$14.31
$3 million
1.08%
44
$163.1 million
$33.7 billion
25.43%2
Risks
All investments involve risks, including possible loss of principal. Investing in international
and emerging markets may involve additional risks, such as social and political instability,
market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation.
In addition, single-country and sector funds may be subject to a higher degree of market risk
than diversified funds because of concentration in a specific industry, sector or geographic
region. There is no guarantee that the Fund or the companies in its portfolio will pay or
continue to pay dividends.
3 Months
Benchmark
MSCI China Index3
Redemption Fee
YTD
1 Year
Investor Class (MCDFX)
7.03%
7.03% 13.14% 11.04%
9.83%
7.03%
7.03% 13.34% 11.25%
n.a.
MSCI China Index
8.12%
8.12% 24.34% 10.87%
5.46%
10 Years
Since
Inception
n.a. 10.10%
n.a.
7.97%
n.a. 4.89%4
$16,703
$16,000
performance.
5 Years
Institutional Class (MICDX)
$18,000
INVESTMENT APPROACH
3 Years
$14,000
$13,002
$12,000
MSCI China Index4
Lipper China Region Funds Category
Average4,5
$12,898
$10,000
$8,000
$6,000
11/09
11/10
11/11
11/12
11/13
03/15
1 Matthews Asia Funds do not charge 12b-1 fees.
2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of
long-term securities.
3 The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes Chinaaffiliated corporations and H shares listed on the Hong Kong exchange, and B shares listed on the Shanghai and Shenzhen
exchanges. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and
Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc.
5 The Lipper Category Average does not reflect sales charges and is based on total return, including reinvestment of dividends and
capital gains for the stated period.
FS014_MCDFX_1Q15
8
March 31, 2015
Yu Zhang, CFA
Lead Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Sector
3.6%
China Construction Bank Corp.
Financials
3.4%
Boer Power Holdings, Ltd.
Industrials
3.4%
Yantai Changyu Pioneer Wine Co., Ltd.
Consumer Staples
3.3%
Yum! Brands, Inc.
2.8%
Shanghai Baosight Software Co., Ltd.
2.8%
Greatview Aseptic Packaging Co., Ltd.
Materials
2.8%
2.8%
Far East Horizon, Ltd.
Financials
Minth Group, Ltd.
2.7%
Vitasoy International Holdings, Ltd.
Consumer Staples
2.7%
30.3%
Sherwood Zhang, CFA
Co-Manager
by HMC Partners
Fund
Fund
Industrials
23.3
7.1
16.2
17.0
68.3
-51.3
19.6
4.9
14.7
1.6
14.0
-12.4
Financials
18.0
39.8
-21.8
Mid Cap ($3B-$10B)
35.8
16.4
19.4
11.2
14.7
-3.5
43.1
1.3
41.8
Consumer Staples
6.0
4.0
2.0
Health Care
4.9
2.1
2.8
Less Liabilities
2.5
0.0
2.5
Telecom Services
4.7
11.2
-6.5
Utilities
4.7
3.8
0.9
Materials
2.8
2.5
0.3
Energy
Less Liabilities
2.3
9.9
-7.6
2.5
0.0
2.5
visit www.msci.com.
CHINA EXPOSURE (%) 9
SAR (Hong Kong)
33.3
Overseas Limited companies (OL)
20.9
China-affiliated corporations (CAC)
14.3
H Shares
14.0
B Shares
Liabilities
13.4
2.5
ASSET TYPE BREAKDOWN (%) 7
P/E RATIOS 10
95.9
12.5x
Convertible Bonds
1.6
11.0x
2.5
6
7
8
9
Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding.
SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated
Corporations [CAC], also known as “Red Chips,” are mainland China companies with partial state ownership listed in Hong
Kong, and incorporated in Hong Kong. H Shares are mainland Chinese companies listed on the Hong Kong exchange but
incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock
exchanges, available to both Chinese and non-Chinese investors. Overseas Listed [OL] companies are companies that
conduct business in mainland China but listed in overseas markets such as Japan, Singapore, Taiwan and the United States.
10 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s
entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E
estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates
will be achieved.
9
March 31, 2015
Long-term capital appreciation.
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
After Fee Waiver
and Expense
Reimbursement2
MAFSX
577125701
04/30/13
$10.35
$2,500
3.50%
MIFSX
577125800
04/30/13
$10.38
$3 million
3.32%
1.46%
1.25%
Net Assets
Portfolio Turnover
Under normal market conditions, the Matthews Asia Focus Fund seeks to achieve its
investment objective by investing at least 80% of its total assets, which include
borrowings for investment purposes, in the common and preferred stocks of companies
located in Asia Ex Japan, which consists of all countries and markets in Asia excluding
Japan but including all other developed, emerging and frontier countries and markets in
the Asian region. The Fund seeks to invest in companies capable of sustainable growth
based on fundamental characteristics. Companies in which the Fund invests typically
possess, in the portfolio managers’ judgment, such attributes as a high quality
management team, strong corporate governance standards, sustainable return on capital
over an extended period, strong free cash flow generation and an attractive valuation in
relation to growth prospects and intrinsic value. Once fully invested, the Fund is
currently expected to hold stocks of between 25 and 35 companies under normal market
conditions.
Risks
illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. In
addition, focused funds may be subject to a greater risk of loss because a single security’s increase
or decrease in value may have a greater impact on the Fund’s value and total return.
28
$15.6 million
$45.1 billion
24.12%3
Benchmark
Redemption Fee
3 Months
YTD
1 Year
10 Years
Since
Inception
Investor Class (MAFSX)
3.40%
3.40%
6.17%
n.a.
n.a.
n.a.
2.62%
3.39%
3.39%
6.44%
n.a.
n.a.
n.a.
2.90%
4.90%
4.90% 11.02%
n.a.
n.a.
n.a.
6.30%
$11,500
$11,244
$11,000
$10,757
$10,509
$10,000
performance.
5 Years
Institutional Class (MIFSX)
$10,500
INVESTMENT APPROACH
3 Years
Lipper Pacific ex Japan Funds Category
Average4,5
$9,500
$9,000
$8,500
03/13
09/13
03/14
09/14
03/15
to limit Total Annual Fund Operating Expenses to 1.75% for the Institutional Class and agreed to reduce the expense
ratio by an equal amount for the Investor Class. Because certain expenses of the Investor Class are higher than the
Institutional Class, the Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the
Investor Class may exceed 1.75%. The amounts of the waivers and reimbursements are based on estimated Fund
expenses. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the
3 The lesser fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of
4 The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock of
dividends and capital gains for the stated periods. Calculated from 4/30/13.
FS020_MAFSX_1Q15
10
March 31, 2015
Kenneth Lowe, CFA
Lead Manager
J. Michael Oh, CFA
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
AIA Group, Ltd.
China/Hong Kong
7.1%
Jardine Matheson Holdings, Ltd.
China/Hong Kong
6.1%
Samsonite International SA
China/Hong Kong
4.4%
Yum! Brands, Inc.
China/Hong Kong
4.4%
Singapore Telecommunications, Ltd.
Singapore
4.0%
Taiwan
3.7%
Ansell, Ltd.
Australia
3.7%
Hutchison Whampoa, Ltd.
China/Hong Kong
3.6%
Samsung Electronics Co., Ltd.
South Korea
3.6%
Mead Johnson Nutrition Co.
USA
3.5%
44.1%
Fund
China/Hong Kong
37.5
40.0
-2.5
Malaysia
Fund
Financials
26.5
33.2
-6.7
11.2
4.2
7.0
17.8
8.3
9.5
Singapore
9.2
5.8
3.4
13.8
22.5
-8.7
Australia
8.0
0.0
8.0
Industrials
12.3
8.5
3.8
Indonesia
6.1
3.3
2.8
Consumer Staples
9.2
5.3
3.9
Taiwan
3.7
15.3
-11.6
Telecom Services
6.8
6.7
0.1
South Korea
3.6
17.9
-14.3
Materials
3.7
4.6
-0.9
United States
3.5
0.0
3.5
Health Care
3.7
2.0
1.7
Switzerland
3.2
0.0
3.2
Energy
0.0
4.8
-4.8
Thailand
3.0
2.9
0.1
4.1
-4.1
2.9
8.9
-6.0
Utilities
Less Liabilities
0.0
India
6.2
0.0
6.2
United Kingdom
1.9
0.0
1.9
Philippines
Less Liabilities
0.0
1.7
-1.7
6.2
0.0
6.2
visit www.msci.com.
P/E RATIOS 9
Fund
Matthews Asia Funds are distributed in Latin
America by HMC Partners
52.5
47.2
5.3
15.1x
14.3
25.7
-11.4
13.9x
Mid Cap ($3B-$10B)
24.1
23.0
1.1
2.9
4.1
-1.2
6.2
0.0
6.2
Less Liabilities
You should carefully consider the investment objectives, risks, charges and
expenses of the Matthews Asia Funds
before making an investment decision.
A prospectus or summary prospectus
with this and other information about
the Funds may be obtained by visiting matthewsasia.com. Please read the
prospectus carefully before investing
as it explains the risks associated with
investing in international and emerging
markets.
Matthews Asia Funds are distributed in the
United States by Foreside Funds Distributors LLC
Sharat Shroff, CFA
Co-Manager
6 Holdings may combine more than one security from the same issuer and related depositary receipts.
rounding.
8 Equity market cap of issuer.
9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire
portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are
forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved.
11
March 31, 2015
Long-term capital appreciation
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MPACX
577130867
10/31/03
$22.51
$2,500
1.12%
Net Assets
Portfolio Turnover
MIAPX
577130776
10/29/10
$22.62
$3 million
0.93%
64
$958.9 million
$27.1 billion
22.24%2
Under normal market conditions, the Matthews Asia Growth Fund seeks to achieve its
located in Asia, which consists of all countries and markets in Asia, including developed,
emerging, and frontier countries and markets in the Asian region. The Fund may also
invest in the convertible securities, of any duration or quality, of Asian companies. The
Fund seeks to invest in companies capable of sustainable growth based on the
fundamental characteristics of those companies, including balance sheet information;
number of employees; size and stability of cash flow; management’s depth, adaptability
and integrity; product lines; marketing strategies; corporate governance; and financial
health.
Risks
3 Months
Benchmark
Redemption Fee
YTD
1 Year
performance.
5 Years
Investor Class (MPACX)
6.68%
6.68% 10.83% 10.71%
9.38%
Institutional Class (MIAPX)
6.75%
6.75% 11.05% 10.91%
n.a.
MSCI AC Asia Pacific Index
6.79%
6.79%
8.89%
7.86%
6.05%
10 Years
Since
Inception
9.06% 10.11%
n.a.
7.41%
6.55% 7.66%4
$35,000
INVESTMENT APPROACH
3 Years
$30,019
$30,000
$25,000
$23,567
$23,221
$20,000
Average5
$15,000
$10,000
$5,000
10/03
10/05
10/07
10/09
10/11
10/13 03/15
3 The MSCI All Country Asia Pacific Index is a free float-adjusted market capitalization-weighted index of the stock
markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South
Korea, Taiwan and Thailand. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley
FS001_MPACX_1Q15
12
March 31, 2015
Taizo Ishida
Lead Manager
Sharat Shroff, CFA
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
Baidu, Inc.
China/Hong Kong
Omron Corp.
Japan
4.0%
3.8%
ORIX Corp.
Japan
3.5%
Sysmex Corp.
Japan
3.3%
PT Bank Rakyat Indonesia Persero
Indonesia
3.0%
PT Astra International
Indonesia
2.9%
Emami, Ltd.
India
2.6%
SoftBank Corp.
Japan
2.4%
Vista Land & Lifescapes, Inc.
Philippines
2.3%
China/Hong Kong
2.3%
30.1%
Fund
Japan
Fund
37.9
40.6
-2.7
Consumer Staples
18.3
6.2
12.1
China/Hong Kong
16.1
18.3
-2.2
16.0
15.0
1.0
India
10.8
4.1
6.7
15.1
13.2
1.9
Indonesia
9.7
1.5
8.2
Industrials
14.4
12.6
1.8
Philippines
5.9
0.8
5.1
Financials
14.3
30.1
-15.8
Australia
3.4
13.3
-9.9
Health Care
11.5
4.5
7.0
Sri Lanka
3.1
0.0
3.1
Telecom Services
2.4
5.5
-3.1
South Korea
2.5
8.2
-5.7
Energy
2.0
3.1
-1.1
Taiwan
2.4
7.0
-4.6
Materials
1.5
6.7
-5.2
Malaysia
1.5
1.9
-0.4
0.0
3.1
-3.1
Thailand
1.3
1.3
0.0
Vietnam
0.9
0.0
0.9
Utilities
Less Liabilities
4.5
0.0
4.5
Singapore
0.0
2.7
-2.7
New Zealand
Less Liabilities
0.0
0.3
-0.3
4.5
0.0
4.5
visit www.msci.com.
P/E RATIOS 9
Fund
markets.
29.2
47.8
-18.6
19.6x
21.3
25.4
-4.1
17.5x
Mid Cap ($3B-$10B)
25.7
24.0
1.7
Less Liabilities
19.3
2.8
16.5
4.5
0.0
4.5
rounding.
13
March 31, 2015
Closed to most new investors. See Prospectus for details.
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MAPTX
577130107
09/12/94
$28.57
$2,500
1.09%
Net Assets
Portfolio Turnover
MIPTX
577130834
10/29/10
$28.56
$3 million
0.92%
69
$9.1 billion
$33.1 billion
11.38%2
Benchmark
Redemption Fee
Under normal market conditions, the Matthews Pacific Tiger Fund seeks to achieve its
located in Asia Ex Japan, which consists of all countries and markets in Asia excluding
Japan but including all other developed, emerging and frontier countries and markets in
the Asian region. The Fund seeks to invest in companies capable of sustainable growth
based on the fundamental characteristics of those companies, including balance sheet
information; number of employees; size and stability of cash flow; management’s depth,
adaptability and integrity; product lines; marketing strategies; corporate governance; and
financial health.
Risks
3 Months
YTD
1 Year
Investor Class (MAPTX)
7.53%
7.53% 17.47% 10.76%
Institutional Class (MIPTX)
7.53%
7.53% 17.64% 10.93%
4.90%
4.90% 11.02%
$70,000
$62,174
10 Years
9.75% 12.39%
n.a.
n.a.
Since
Inception
9.30%
7.09%
6.53% 10.08% 4.35%4
$50,000
performance.
7.11%
5 Years
$60,000
INVESTMENT APPROACH
3 Years
Average5
$40,000
$30,000
$25,244
$20,000
$24,002
$10,000
$0
09/94
05/98
01/02
09/05
05/09
03/15
3 The MSCI All Country Asia ex Japan Index is a free float-adjusted market capitalization-weighted index of the stock
The Matthews Pacific Tiger Fund invests in countries that are not in the MSCI All Country Asia ex Japan Index. It is not
possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg;
total return calculations performed by BNY Mellon Investment Servicing (US) Inc.
FS003_MAPTX_1Q15
14
March 31, 2015
Sharat Shroff, CFA
Lead Manager
Richard Gao
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
Amorepacific Corp.
South Korea
3.6%
Ping An Insurance Group Co. of China, Ltd.
China/Hong Kong
2.9%
Sinopharm Group Co., Ltd.
China/Hong Kong
2.5%
DKSH Holding, Ltd.
Switzerland
2.5%
Kotak Mahindra Bank, Ltd.
India
2.4%
Hengan International Group Co., Ltd.
China/Hong Kong
2.4%
Naver Corp.
South Korea
2.3%
Tata Power Co., Ltd.
India
2.3%
President Chain Store Corp.
Taiwan
2.2%
Orion Corp.
South Korea
2.2%
25.3%
Fund
China/Hong Kong
30.6
40.0
-9.4
India
18.8
8.9
9.9
South Korea
Fund
Financials
26.3
33.2
-6.9
Consumer Staples
19.8
5.3
14.5
15.9
17.9
-2.0
16.3
22.5
-6.2
Indonesia
7.2
3.3
3.9
8.8
8.3
0.5
Taiwan
6.8
15.3
-8.5
Health Care
8.6
2.0
6.6
Thailand
5.0
2.9
2.1
Utilities
5.5
4.1
1.4
Malaysia
3.6
4.2
-0.6
Industrials
5.4
8.5
-3.1
Philippines
2.8
1.7
1.1
Telecom Services
3.3
6.7
-3.4
Switzerland
2.5
0.0
2.5
Materials
1.9
4.6
-2.7
Vietnam
1.3
0.0
1.3
4.8
-4.8
0.9
0.0
0.9
Singapore
Less Liabilities
0.5
5.8
-5.3
Energy
Less Liabilities
0.0
United States
4.1
0.0
4.1
4.1
0.0
4.1
visit www.msci.com.
P/E RATIOS 9
Fund
markets.
25.8
47.2
-21.4
19.2x
32.6
25.7
6.9
16.9x
Mid Cap ($3B-$10B)
29.6
23.0
6.6
7.9
4.1
3.8
4.1
0.0
4.1
Less Liabilities
In-Bok Song
Co-Manager
7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due
to rounding.
estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will
be achieved.
15
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
After Fee Waiver
and Expense
Reimbursement2
MEASX
577125883
04/30/13
$11.52
$2,500
2.39%
MIASX
577125875
04/30/13
$11.53
$3 million
2.21%
1.48%
1.25%
Net Assets
Portfolio Turnover
Under normal market conditions, the Matthews Emerging Asia Fund seeks to achieve its
located in Asia excluding Japan, South Korea, Hong Kong and Singapore. The Fund may
also invest in the convertible securities, of any duration or quality of companies located
in Asia excluding Japan, South Korea, Hong Kong and Singapore. The Fund is expected
to invest a substantial portion of its net assets in the emerging countries and markets in
the Asian region, including but not limited to, Bangladesh, Cambodia, China (including
Taiwan, but excluding Hong Kong), India, Indonesia, Laos, Malaysia, Mongolia,
Myanmar, Pakistan, Papua New Guinea, Philippines, Sri Lanka, Thailand and Vietnam
(“Emerging Asian Countries”). The Fund seeks to invest in companies capable of
sustainable growth based on the fundamental characteristics of those companies,
including balance sheet information; number of employees; size and stability of cash
flow; management’s depth, adaptability and integrity; product lines; marketing
strategies; corporate governance; and financial health.
Risks
81
$160.4 million
$7.6 billion
8.21%3
Benchmark
MSCI Emerging Markets Asia Index4
Redemption Fee
3 Months
YTD
1 Year
3 Years
5 Years
Since
Inception
10 Years
Investor Class (MEASX)
-0.69% -0.69%
9.62%
n.a.
n.a.
n.a.
7.98%
Institutional Class (MIASX)
-0.60% -0.60%
9.88%
n.a.
n.a.
n.a.
8.21%
5.26% 11.08%
n.a.
n.a.
n.a.
6.66%
MSCI Emerging Markets Asia Index
5.26%
$12,000
$11,587
$11,500
$11,316
$11,000
MSCI Emerging Markets Asia Index4
Lipper Emerging Markets Funds
Category Average5
$10,500
$10,000
INVESTMENT APPROACH
performance.
$9,654
$9,500
$9,000
$8,500
03/13
09/13
03/14
09/14
03/15
to limit Total Annual Fund Operating Expenses to 1.25% by waiving class specific and non-class specific expenses for
the Institutional Class and agreed to reduce the expense ratio by waiving an equal amount of non-class specific
expenses for the Investor Class. Because certain expenses of the Investor Class may be higher than the Institutional
Class and class specific expenses may be waived solely for the Institutional Class, the Total Annual Fund Operating
Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may exceed 1.25%. If the expenses fall
below the expense limitation in a year within three years after Matthews has made such a waiver or reimbursement,
the Fund may reimburse Matthews up to an amount not to cause the expenses for that year to exceed the expense
limitation. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the
3 The lesser fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of
4 The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock
markets of China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.
FS021_MEASX_1Q15
16
March 31, 2015
Taizo Ishida
Lead Manager
Robert Harvey, CFA
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
CIMC Enric Holdings, Ltd.
China/Hong Kong
British American Tobacco Bangladesh Co., Ltd.
Bangladesh
3.4%
3.2%
National Development Bank PLC
Sri Lanka
2.9%
Sampath Bank PLC
Sri Lanka
2.9%
PT Matahari Department Store
Indonesia
2.8%
Square Pharmaceuticals, Ltd.
Bangladesh
2.7%
PT Gudang Garam
Indonesia
2.6%
PC Jeweller, Ltd.
India
2.5%
Puregold Price Club, Inc.
Philippines
2.4%
The Searle Pakistan, Ltd.
Pakistan
2.4%
27.8%
Fund
Bangladesh
13.7
0.0
13.7
Fund
Consumer Staples
26.9
6.1
20.8
China/Hong Kong
13.3
33.8
-20.5
19.3
8.2
11.1
India
12.0
10.9
1.1
Financials
18.2
26.8
-8.6
Pakistan
12.0
0.0
12.0
Industrials
10.3
7.5
2.8
Indonesia
10.5
4.0
6.5
Health Care
8.3
2.5
5.8
Vietnam
9.9
0.0
9.9
Materials
4.3
5.7
-1.4
Philippines
9.3
2.0
7.3
3.6
27.4
-23.8
Sri Lanka
9.1
0.0
9.1
Energy
3.3
5.8
-2.5
Thailand
3.0
3.5
-0.5
Utilities
1.7
3.1
-1.4
Australia
1.2
0.0
1.2
0.0
6.9
-6.9
Cambodia
1.2
0.0
1.2
Singapore
0.5
0.0
0.5
Telecom Services
Less Liabilities
4.1
0.0
4.1
Malaysia
0.2
5.2
-5.0
South Korea
0.0
21.9
-21.9
Taiwan
Less Liabilities
0.0
18.7
-18.7
4.1
0.0
4.1
visit www.msci.com.
P/E RATIOS 9
Fund
markets.
2.6
45.5
-42.9
14.0x
4.5
25.3
-20.8
12.2x
Mid Cap ($3B-$10B)
15.7
24.1
-8.4
Less Liabilities
73.1
5.1
68.0
4.1
0.0
4.1
rounding.
17
Matthews China Fund
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MCHFX
577130701
02/19/98
$22.94
$2,500
1.09%
Net Assets
Portfolio Turnover
MICFX
577130818
10/29/10
$22.92
$3 million
0.92%
58
$994.0 million
$45.8 billion
10.23%2
Benchmark
MSCI China Index3
Redemption Fee
Under normal market conditions, the Matthews China Fund seeks to achieve its
investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located
in China. China includes its administrative and other districts, such as Hong Kong. The
Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number
of employees; size and stability of cash flow; management’s depth, adaptability and
integrity; product lines; marketing strategies; corporate governance; and financial health.
Risks
addition, single-country and sector funds may be subject to a higher degree of market risk than
diversified funds because of concentration in a specific industry, sector or geographic region.
3 Months
YTD
1 Year
Investor Class (MCHFX)
6.90%
6.90% 11.65%
3.89%
Institutional Class (MICFX)
6.90%
6.90% 11.80%
4.08%
MSCI China Index
8.12%
8.12% 24.34% 10.87%
10 Years
Since
Inception
2.20% 11.97% 10.08%
n.a.
n.a. -0.41%
5.46% 14.13% 4.37%4
Matthews China Fund
$51,686
$50,000
performance.
5 Years
$60,000
INVESTMENT APPROACH
3 Years
$41,854
$40,000
MSCI China Index4
Average4,5
$30,000
$20,767
$20,000
$10,000
$0
02/98
02/01
02/04
02/07
02/10
02/13 03/15
3 The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes
China-affiliated corporations and H shares listed on the Hong Kong exchange, and B shares listed on the Shanghai and
Shenzhen exchanges. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital
FS006_MCHFX_1Q15
18
Matthews China Fund
March 31, 2015
Richard H. Gao
Lead Manager
Henry Zhang, CFA
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Sector
Tencent Holdings, Ltd.
5.3%
Ping An Insurance Group Co. of China, Ltd.
Financials
3.7%
China Mobile, Ltd.
Telecom Services
3.6%
China Resources Land, Ltd.
Financials
3.5%
China Vanke Co., Ltd.
Financials
3.2%
Sinopharm Group Co., Ltd.
Health Care
3.1%
China Merchants Bank Co., Ltd.
Financials
2.6%
Café de Coral Holdings, Ltd.
2.6%
China Longyuan Power Group Corp.
Utilities
2.5%
Cheung Kong Infrastructure Holdings, Ltd.
Utilities
2.4%
32.5%
Fund
Financials
-18.6
Fund
21.2
39.8
20.8
14.7
6.1
Industrials
13.6
7.1
6.5
Mid Cap ($3B-$10B)
Less Liabilities
11.9
4.9
7.0
Health Care
10.2
2.1
8.1
Consumer Staples
8.3
4.0
4.3
Utilities
5.9
3.8
2.1
Telecom Services
4.4
11.2
-6.8
Energy
2.4
9.9
-7.5
Materials
Less Liabilities
0.0
2.5
-2.5
1.3
0.0
1.3
visit www.msci.com.
32.0
68.3
-36.3
35.7
14.0
21.7
15.9
16.4
-0.5
15.1
1.3
13.8
1.3
0.0
1.3
Winnie Chwang
Co-Manager
markets.
P/E RATIOS 9
14.7x
12.8x
SAR (Hong Kong)
36.8
H Shares
27.3
14.3
14.0
A Shares
Liabilities
6.3
1.3
rounding.
10 SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated
Corporations [CAC], also known as “Red Chips,” are mainland China companies with partial state ownership listed in Hong
Kong, and incorporated in Hong Kong. China A Shares are Mainland Chinese companies incorporated in China and listed
on the Shanghai or Shenzhen exchanges, available mostly to local Chinese investors and qualified institutional investors. H
Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. B Shares
are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and
non-Chinese investors. Overseas Listed [OL] companies are companies that conduct business in mainland China but listed
in overseas markets such as Japan, Singapore, Taiwan and the United States.
19
Matthews India Fund
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MINDX
577130859
10/31/05
$29.20
$2,500
1.13%
Net Assets
Portfolio Turnover
MIDNX
577130768
10/29/10
$29.25
$3 million
0.95%
48
$1.7 billion
$9.6 billion
14.86%2
Under normal market conditions, the Matthews India Fund seeks to achieve its
borrowings for investment purposes, in publicly traded common stocks, preferred stocks
and convertible securities of companies located in India. The Fund seeks to invest in
companies capable of sustainable growth based on the fundamental characteristics of
those companies, including balance sheet information; number of employees; size and
stability of cash flow; management’s depth, adaptability and integrity; product lines;
marketing strategies; corporate governance; and financial health.
Risks
All investments involve risks, including possible loss of principal. Inveting in international and
3 Months
Benchmark
S&P Bombay Stock Exchange 100 Index3
Redemption Fee
YTD
1 Year
performance.
5 Years
10 Years
Since
Inception
Investor Class (MINDX)
10.36% 10.36% 57.70% 21.77% 11.48%
n.a.
14.40%
Institutional Class (MIDNX)
S&P Bombay Stock Exchange 100
Index
10.42% 10.42% 58.01% 21.97%
n.a.
7.94%
4.55%
4.55% 25.08% 11.56%
n.a.
4.41%
n.a. 12.10%4
$40,000
INVESTMENT APPROACH
3 Years
Matthews India Fund
$35,000
$35,485
$30,000
$29,308
$25,000
$25,718
S&P Bombay Stock Exchange 100
Index4
Lipper India Region Funds Category
Average4,5
$20,000
$15,000
$10,000
$5,000
10/05
02/07
06/08
10/09
02/11
06/12
10/13
03/15
3 The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index
of 100 stocks listed on the Bombay Stock Exchange.
FS007_MINDX_1Q15
20
Matthews India Fund
March 31, 2015
Sunil Asnani
Lead Manager
Sharat Shroff, CFA
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Sector
Shriram City Union Finance, Ltd.
Financials
ITC, Ltd.
Consumer Staples
5.1%
4.9%
Taro Pharmaceutical Industries, Ltd.
Health Care
4.4%
IndusInd Bank, Ltd.
Financials
4.1%
Cognizant Technology Solutions Corp.
4.1%
Ajanta Pharma, Ltd.
Health Care
3.7%
Housing Development Finance Corp.
Financials
3.7%
Emami, Ltd.
Consumer Staples
3.6%
eClerx Services, Ltd.
3.6%
Kotak Mahindra Bank, Ltd.
Financials
3.5%
40.7%
Fund
Financials
25.5
30.7
Consumer Staples
17.3
13.9
Health Care
Industrials
Fund
-5.2
10.1
7.2
14.0
-0.1
13.6
7.1
6.5
12.3
7.6
4.7
9.3
9.4
-0.1
Materials
7.0
7.0
0.0
Energy
0.0
8.5
-8.5
Utilities
0.0
3.2
-3.2
Telecom Services
Less Liabilities
0.0
2.4
-2.4
1.1
0.0
1.1
visit www.msci.com.
16.8
54.9
-38.1
4.8
18.1
-13.3
Mid Cap ($3B-$10B)
28.0
24.0
4.0
Less Liabilities
49.3
3.0
46.3
1.1
0.0
1.1
markets.
P/E RATIOS 9
26.0x
22.2x
rounding.
will be achieved.
21
Matthews Japan Fund
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MJFOX
577130800
12/31/98
$18.43
$2,500
1.10%
Net Assets
Portfolio Turnover
MIJFX
577130792
10/29/10
$18.44
$3 million
0.96%
Under normal market conditions, the Matthews Japan Fund seeks to achieve its
located in Japan. The Fund seeks to invest in companies capable of sustainable growth
based on the fundamental characteristics of those companies, including balance sheet
information; number of employees; size and stability of cash flow; management’s depth,
adaptability and integrity; product lines; marketing strategies; corporate governance; and
financial health.
Risks
104
$778.1 million
$21.4 billion
42.52%2
Benchmark
MSCI Japan Index3
Tokyo Stock Price Index (TOPIX)4
Redemption Fee
INVESTMENT APPROACH
performance.
3 Months
YTD
1 Year
3 Years
5 Years
10 Years
Since
Inception
3.40%
5.97%
Investor Class (MJFOX)
17.39% 17.39% 16.94% 15.52% 12.04%
Institutional Class (MIJFX)
17.38% 17.38% 17.08% 15.66%
MSCI Japan Index
10.34% 10.34% 12.39%
Tokyo Stock Price Index (TOPIX)
9.96%
9.96% 12.09%
n.a.
n.a. 12.92%
9.60%
6.08%
3.70% 3.09%5
9.69%
6.38%
3.42% 3.46%5
$30,000
Matthews Japan Fund
$25,000
$25,648
$20,000
$19,783
$17,366
$15,000
$16,400
MSCI Japan Index5
Tokyo Stock Price Index (TOPIX)5
Lipper Japanese Funds Category
Average5,6
$10,000
$5,000
12/98
12/01
12/04
12/07
12/10
03/15
3 The MSCI Japan Index is a free float-adjusted market capitalization-weighted index of Japanese equities listed in Japan.
It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and
Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc.
4 The Tokyo Stock Price Index (TOPIX) is a market capitalization-weighted index of all companies listed on the First Section
of the Tokyo Stock Exchange. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley
FS008_MJFOX_1Q15
22
Matthews Japan Fund
March 31, 2015
Taizo Ishida
Lead Manager
Kenichi Amaki
Co-Manager
TOP TEN HOLDINGS 7
% of Net
Assets
Sector
Toyota Motor Corp.
Kao Corp.
Consumer Staples
3.1%
3.0%
Seven & I Holdings Co., Ltd.
Consumer Staples
2.6%
M3, Inc.
Health Care
2.5%
ORIX Corp.
Financials
2.5%
Sysmex Corp.
Health Care
2.4%
Asahi Intecc Co., Ltd.
Health Care
2.3%
Keyence Corp.
2.2%
SoftBank Corp.
Telecom Services
2.2%
Pigeon Corp.
Consumer Staples
2.1%
24.9%
Fund
Fund
Industrials
25.0
19.4
5.6
16.1
11.5
4.6
19.9
27.8
-7.9
Consumer Staples
14.5
6.9
7.6
Mid Cap ($3B-$10B)
19.3
25.6
-6.3
13.9
22.6
-8.7
1.9
31.1
12.3
6.9
5.4
Financials
9.5
18.5
-9.0
Less Liabilities
33.0
Health Care
3.8
0.0
3.8
Telecom Services
2.8
5.0
-2.2
Materials
2.1
6.1
-4.0
Utilities
0.0
2.3
-2.3
Energy
Less Liabilities
0.0
0.8
-0.8
3.8
0.0
3.8
visit www.msci.com.
24.0
44.7
markets.
-20.7
P/E RATIOS 10
21.3x
19.4x
rounding.
will be achieved.
23
Matthews Korea Fund
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MAKOX
577130305
01/03/95
$6.14
$2,500
1.13%
Net Assets
Portfolio Turnover
MIKOX
577130826
10/29/10
$6.17
$3 million
0.97%
50
$192.6 million
$25.7 billion
17.37%2
Benchmark
Korea Composite Stock Price Index (KOSPI)3
Redemption Fee
Under normal market conditions, the Matthews Korea Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for
investment purposes, in the common and preferred stocks of companies located in South
Korea. The Fund seeks to invest in companies capable of sustainable growth based on the
fundamental characteristics of those companies, including balance sheet information;
number of employees; size and stability of cash flow; management’s depth, adaptability
and integrity; product lines; marketing strategies; corporate governance; and financial
health.
Risks
3 Months
YTD
1 Year
performance.
10 Years
9.84%
6.23%
n.a.
9.69%
Investor Class (MAKOX)
8.67%
8.67%
8.98% 10.30% 10.62%
8.63%
8.63%
9.12% 10.38%
5.38%
5.38% -0.20%
2.40%
Since
Inception
5 Years
Institutional Class (MIKOX)
Korea Composite Stock Price Index
(KOSPI)
n.a.
5.58%
8.46% 3.25%4
$50,000
INVESTMENT APPROACH
3 Years
Matthews Korea Fund
$39,926
$40,000
$33,985
$30,000
$20,000
Korea Composite Stock Price Index
(KOSPI)4
Average5
$19,106
$10,000
$0
01/95
09/98
05/02
01/06
09/09
03/15
3 The Korea Composite Stock Price Index (KOSPI) is a market capitalization-weighted index of all common stocks listed on
the Korea Stock Exchange. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley
FS009_MAKOX_1Q15
24
Matthews Korea Fund
March 31, 2015
J. Michael Oh, CFA
Lead Manager
Michael Han, CFA
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Sector
Samsung Electronics Co., Ltd.
BGF Retail Co., Ltd.
Consumer Staples
4.9%
4.0%
Shinhan Financial Group Co., Ltd.
Financials
3.9%
Samsung Fire & Marine Insurance Co., Ltd., Pfd.
Financials
3.3%
Orion Corp.
Consumer Staples
3.1%
LG Household & Health Care, Ltd., Pfd.
Consumer Staples
3.0%
Samsung Electronics Co., Ltd., Pfd.
3.0%
Amorepacific Corp., Pfd.
Consumer Staples
2.9%
E-Mart Co., Ltd.
Consumer Staples
2.8%
SK Hynix, Inc.
2.6%
33.5%
Fund
Consumer Staples
25.9
9.3
Fund
16.6
13.0
25.4
-12.4
23.0
15.7
7.3
32.0
25.3
6.7
Financials
17.3
12.6
4.7
Mid Cap ($3B-$10B)
23.7
24.6
-0.9
13.3
28.0
-14.7
24.7
3.8
15.6
-11.4
Less Liabilities
28.5
4.2
2.8
0.0
2.8
Industrials
Telecom Services
4.1
2.8
1.3
Materials
3.8
9.2
-5.4
Health Care
3.0
1.9
1.1
Energy
2.6
1.8
0.8
Utilities
Less Liabilities
0.0
3.1
-3.1
2.8
0.0
2.8
visit www.msci.com.
markets.
P/E RATIOS 9
11.7x
10.5x
rounding.
will be achieved.
25
ASIA SMALL COMPANY
STRATEGIES
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MSMLX
577125206
09/15/08
$21.96
$2,500
1.47%
Net Assets
Portfolio Turnover
MISMX
577125867
04/30/13
$21.97
$3 million
1.25%
79
$747.8 million
$1.2 billion
21.70%2
Benchmark
MSCI AC Asia ex Japan Small Cap Index3
Redemption Fee
Under normal market conditions, the Matthews Asia Small Companies Fund seeks to
achieve its investment objective by investing at least 80% of its total assets, which
include borrowings for investment purposes, in the common and preferred stocks of
Small Companies located in Asia Ex Japan, which consists of all countries and markets in
Asia excluding Japan but including all other developed, emerging and frontier countries
and markets in the Asian region. The Fund seeks to invest in smaller companies capable
of sustainable growth based on the fundamental characteristics of those companies,
including balance sheet information; number of employees; size and stability of cash
flow; management’s depth, adaptability and integrity; product lines; marketing
Risks
All investments involve risks, including possible loss of principal. Investing in small companies is
more risky and volatile than investing in large companies. Investing in international and
3 Months
YTD
1 Year
3 Years
5 Years
performance.
Since
Inception
Investor Class (MSMLX)
2.33%
2.33%
9.29%
9.85%
9.33%
n.a.
15.94%
Institutional Class (MISMX)
MSCI AC Asia ex Japan Small Cap
Index
2.38%
2.38%
9.54%
n.a.
n.a.
n.a.
7.29%
5.57%
5.57%
4.95%
7.25%
4.52%
n.a. 10.37%4
$30,000
INVESTMENT APPROACH
10 Years
$26,307
$25,000
MSCI AC Asia ex Japan Small Cap Index
$20,000
$19,065
$18,558
$15,000
Average5
$10,000
$5,000
09/08
01/10
05/11
09/12
01/14
03/15
3 The MSCI All Country Asia ex Japan Small Cap Index is a free float-adjusted market capitalization-weighted small cap
index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea,
Taiwan and Thailand. It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital
FS012_MSMLX_1Q15
26
March 31, 2015
Lydia So, CFA
Lead Manager
Kenichi Amaki
Co-Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Country
PChome Online, Inc.
Taiwan
2.6%
Sunny Optical Technology Group Co., Ltd.
China/Hong Kong
2.1%
Vitasoy International Holdings, Ltd.
China/Hong Kong
2.0%
Kerry Logistics Network, Ltd.
China/Hong Kong
2.0%
Lee's Pharmaceutical Holdings, Ltd.
China/Hong Kong
1.9%
Security Bank Corp.
Philippines
1.9%
Towngas China Co., Ltd.
China/Hong Kong
1.9%
China Biologic Products, Inc.
China/Hong Kong
1.8%
Vista Land & Lifescapes, Inc.
Philippines
1.8%
ARA Asset Management, Ltd.
Singapore
1.7%
19.7%
Fund
Fund
21.3
China/Hong Kong
25.5
30.8
-5.3
Industrials
14.9
6.4
Taiwan
15.0
19.7
-4.7
Consumer Staples
India
13.4
10.2
3.2
Financials
18.8
6.2
12.6
13.2
20.7
-7.5
South Korea
8.8
18.3
-9.5
Health Care
13.1
7.1
6.0
Singapore
8.0
7.5
0.5
13.0
18.5
-5.5
Indonesia
7.9
3.4
4.5
12.6
17.8
-5.2
Malaysia
6.5
4.2
2.3
Materials
2.3
9.3
-7.0
Philippines
5.5
1.8
3.7
Utilities
1.9
2.5
-0.6
Thailand
5.1
4.1
1.0
Energy
0.0
2.0
-2.0
Japan
0.4
0.0
0.4
0.0
1.0
-1.0
Vietnam
Less Liabilities
0.1
0.0
0.1
Telecom Services
Less Liabilities
3.8
0.0
3.8
3.8
0.0
3.8
visit www.msci.com.
P/E RATIOS 9
Fund
markets.
0.0
0.0
0.0
18.2x
0.0
0.0
0.0
15.5x
Mid Cap ($3B-$10B)
1.4
5.1
-3.7
94.8
94.9
-0.1
3.8
0.0
3.8
Less Liabilities
Beini Zhou, CFA
Co-Manager
rounding.
8 Equity market cap of issuer. The Fund defines Small Companies as companies with market capitalization generally between
$100 million and $3 billion or the largest company included in the Fund’s primary benchmark, the MSCI All Country Asia
ex Japan Small Cap Index. The Portfolio’s market cap exposure breakdown presented is used for comparison purpose and
the definition of the capitalization breakdown is from MSCI.
will be achieved.
27
ASIA SMALL COMPANY
STRATEGIES
March 31, 2015
Strategy
FUND FACTS
Investor Class
Ticker
CUSIP
Inception
NAV
Initial Investment
After Fee Waiver and Expense
Reimbursement2
Net Assets
Portfolio Turnover
MCSMX
577125404
05/31/11
$9.39
$2,500
2.04%
1.50%
Under normal market conditions, the Fund seeks to achieve its investment objective by
investing at least 80% of its total assets, which include borrowings for investment
purposes, in the common and preferred stocks of Small Companies located in China.
China includes its administrative and other districts, such as Hong Kong. The Fund seeks
to invest in smaller companies capable of sustainable growth based on the fundamental
characteristics of those companies, including balance sheet information; number of
employees; size and stability of cash flow; management’s depth, adaptability and integrity;
product lines; marketing strategies; corporate governance; and financial health.
Risks
All investments involve risks, including possible loss of principal. Investing in small companies is
more risky and volatile than investing in large companies. Investing in international and emerging
markets may involve additional risks, such as social and political instability, market illiquidity,
exchange-rate fluctuations, a high level of volatility and limited regulation. In addition,
single-country and sector funds may be subject to a higher degree of market risk than diversified
funds because of concentration in a specific industry, sector or geographic region.
43
$21.1 million
$1.8 billion
32.42%3
Benchmark
MSCI China Small Cap Index4
Redemption Fee
3 Months
YTD
1 Year
3 Years
performance.
10 Years
Since
Inception
Investor Class (MCSMX)
1.96%
1.96%
0.29%
8.67%
n.a.
n.a.
-0.28%
MSCI China Small Cap Index
6.61%
6.61%
6.41% 11.97%
n.a.
n.a.
0.21%
$11,000
$10,921
$10,000
$10,080
$9,894
MSCI China Small Cap Index
Average5
$9,000
INVESTMENT APPROACH
5 Years
$8,000
$7,000
$6,000
05/11
05/12
05/13
05/14
03/15
to limit Total Annual Fund Operating Expenses to 1.50%. If the expenses fall below the expense limitation in a year
within three years after Matthews has made such a waiver or reimbursement, the Fund may reimburse Matthews up to
an amount not to cause the expenses for that year to exceed the expense limitation. The fee waiver and expense
reimbursement may be terminated at any time by the Board of Trustees or the Trust on behalf of the Fund on 60 days’
written notice.
4 The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese
equity securities markets, including H shares listed on the Hong Kong Exchange, B shares listed on the Shanghai and
Shenzhen exchanges, and Hong Kong-listed securities known as Red Chips (issued by entities owned by national or
local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving
substantial revenues in China). It is not possible to invest directly in an index. Source: Index data from Morgan Stanley
5 The Lipper Category Average does not reflect sales charges and is based on total return, including investment of dividends
and capital gains for the stated period.
FS015_MCSMX_1Q15
28
March 31, 2015
Richard H. Gao
Lead Manager
TOP TEN HOLDINGS 6
% of Net
Assets
Sector
Towngas China Co., Ltd.
Utilities
6.1%
Sino Biopharmaceutical, Ltd.
Health Care
5.5%
Lee's Pharmaceutical Holdings, Ltd.
Health Care
5.5%
PAX Global Technology, Ltd.
4.7%
Sunny Optical Technology Group Co., Ltd.
4.6%
Shenzhen Chiwan Petroleum
Industrials
4.0%
Boer Power Holdings, Ltd.
Industrials
4.0%
Franshion Properties China, Ltd.
Financials
4.0%
Lijun International Pharmaceutical Holding Co., Ltd.
Health Care
3.4%
China Distance Education Holdings, Ltd.
3.4%
45.2%
SECTOR ALLOCATION (%) 6,7
Fund
Industrials
25.8
Health Care
Fund
16.6
9.2
24.5
6.8
17.7
0.0
0.0
0.0
18.2
20.5
-2.3
Mid Cap ($3B-$10B)
11.4
6.0
5.4
Financials
10.3
18.2
-7.9
94.0
-8.4
10.2
14.3
-4.1
6.1
5.1
1.0
Less Liabilities
85.6
3.0
0.0
3.0
Utilities
Consumer Staples
1.0
5.0
-4.0
Energy
0.5
2.0
-1.5
Materials
0.4
11.3
-10.9
Telecom Services
Less Liabilities
0.0
0.2
-0.2
3.0
0.0
3.0
visit www.msci.com.
0.0
0.0
0.0
Henry Zhang, CFA
Co-Manager
markets.
P/E RATIOS 9
13.6x
11.4x
SAR (Hong Kong)
50.9
31.9
10.2
B Shares
4.0
H Shares
0.0
3.0
rounding.
8 Equity market cap of issuer. The Fund defines Small Companies as companies with market capitalization generally between
$100 million and $3 billion or the largest company included in the Fund’s primary benchmark, the MSCI China Small Cap
Index. The Portfolio’s market cap exposure breakdown presented is used for comparison purposes and the definition of
the capitalization breakdown is from MSCI.
will be achieved.
10 SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. Chinaaffiliated Corporations [CAC], also known as “Red Chips,” are mainland China companies with partial state ownership
listed in Hong Kong, and incorporated in Hong Kong. H Shares are mainland Chinese companies listed on the Hong
Kong exchange but incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai
and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. Overseas Listed [OL] companies
are companies that conduct business in mainland China but listed in overseas markets such as Japan, Singapore, Taiwan
and the United States.
29
March 31, 2015
Strategy
FUND FACTS
Ticker
CUSIP
Inception
NAV
Initial Investment
MATFX
577130883
12/27/99
$14.27
$2,500
1.18%
Net Assets
Portfolio Turnover
MITEX
577125859
04/30/13
$14.27
$3 million
1.00%
51
$195.6 million
$37.5 billion
62.99%2
Under normal market conditions, the Matthews Asia Science and Technology Fund seeks
to achieve its investment objective by investing at least 80% of its total assets, which
include borrowings for investment purposes, in the common and preferred stocks of
companies located in Asia, which consists of all countries and markets in Asia, including
developed, emerging, and frontier countries and markets in the Asian region, that derive
more than 50% of their revenues from the sale of products or services in science- and
technology-related industries and services. The Fund seeks to invest in companies
capable of sustainable growth based on the fundamental characteristics of those
companies, including balance sheet information; number of employees; size and stability
of cash flow; management’s depth, adaptability and integrity; product lines; marketing
Risks
diversified funds because of concentration in a specific industry, sector or geographic region. The
fund’s value may be affected by changes in the science and technology-related industries.
3 Months
YTD
1 Year
3 Years
5 Years
Since
Inception
10 Years
Benchmark
MSCI AC Asia Index3
MSCI AC Asia Information Technology Index4
Investor Class (MATFX)
4.85%
4.85% 15.17% 15.85% 11.56% 10.51%
Institutional Class (MITEX)
4.85%
4.85% 15.40%
n.a.
n.a.
n.a.
20.74%
7.41%
7.41% 11.66%
8.24%
6.25%
6.17%
2.35%5
Redemption Fee
MSCI AC Asia Index
MSCI AC Asia Information
Technology Index
9.57%
9.57% 15.55% 11.30%
8.21%
6.91% -0.86%5
INVESTMENT APPROACH
performance.
2 The lesser of fiscal year 2014 long-term purchase costs or sales
proceeds divided by the average monthly market value of long-term
securities.
3 The MSCI All Country Asia Index is a free float–adjusted market
capitalization–weighted index of the stock markets of China, Hong
Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan and Thailand.
4 The MSCI All Country Asia Information Technology Index is a free
float–adjusted market capitalization–weighted index designed to
measure the combined equity market performance of companies in
the information technology sector of developed and emerging
markets countries in Asia. Component companies include those of
software and services, technology hardware and equipment, and
semiconductors and semiconductor equipment. It is not possible to
invest directly in an index. Source: Index data from Morgan Stanley
Capital International and Bloomberg; total return calculations
performed by BNY Mellon Investment Servicing (US) Inc.
2.85%
$17,500
$15,000
$12,500
$15,351
Matthews Asia Science and Technology
Fund
$14,241
MSCI AC Asia Index3,5
$13,303
MSCI AC Asia Information Technology
Index4,5
$10,000
$8,766
$7,500
Lipper Global Science and Technology
Funds Category Average5,6
$5,000
$2,500
12/99
08/02
04/05
12/07
08/10
04/13 03/15
FS005_MATFX_1Q15
30
March 31, 2015
J. Michael Oh, CFA
Lead Manager
Lydia So, CFA
Co-Manager
TOP TEN HOLDINGS 7
% of Net
Assets
Country
Baidu, Inc.
China/Hong Kong
9.9%
Samsung Electronics Co., Ltd., Pfd.
South Korea
3.0%
Info Edge India, Ltd.
India
2.8%
SK Hynix, Inc.
South Korea
2.7%
JD.com, Inc.
China/Hong Kong
2.6%
Alibaba Group Holding, Ltd.
China/Hong Kong
2.4%
Cognizant Technology Solutions Corp.
USA
2.4%
WuXi PharmaTech Cayman, Inc.
China/Hong Kong
2.4%
Naver Corp.
South Korea
2.4%
Taiwan
2.3%
32.9%
Fund
Fund
36.7
21.2
15.5
58.9
Japan
15.5
47.0
-31.5
South Korea
14.4
9.5
4.9
Health Care
Taiwan
12.4
8.1
4.3
India
10.1
4.7
Singapore
2.5
3.1
United States
2.4
0.0
Malaysia
1.2
2.2
Vietnam
0.9
0.0
0.9
Indonesia
0.6
1.8
-1.2
Thailand
0.0
1.5
-1.5
Philippines
Less Liabilities
0.0
0.9
-0.9
3.3
0.0
3.3
17.3
41.6
14.8
4.3
10.5
9.0
15.0
-6.0
Industrials
7.5
13.6
-6.1
5.4
Telecom Services
4.6
5.9
-1.3
-0.6
Consumer Staples
1.9
6.0
-4.1
2.4
Financials
0.0
26.5
-26.5
-1.0
Materials
0.0
5.3
-5.3
Utilities
0.0
3.2
-3.2
Energy
Less Liabilities
0.0
2.9
-2.9
3.3
0.0
3.3
visit www.msci.com.
MARKET CAP EXPOSURE(%) 8,9
P/E RATIOS 10
Fund
36.6
46.0
-9.4
19.2x
19.0
26.7
-7.7
16.9x
6.4
24.2
-17.8
34.7
3.1
31.6
3.3
0.0
3.3
Mid Cap ($3B-$10B)
markets.
China/Hong Kong
Less Liabilities
rounding.
31
Contact Matthews Asia
To learn more about Matthews or the
Matthews Asia Funds, contact us at:
Phone: 800.789.ASIA
Web: matthewsasia.com
ABOUT THE ADVISOR
Matthews International Capital Management, LLC,
the advisor to Matthews Asia Funds, believes in the
long-term growth of Asia, concentrating our efforts
and expertise within the region. Matthews employs
a bottom-up, fundamental investment philosophy
with a focus on long-term investment performance.
❁ Largest dedicated Asia investment specialist in
the United States
❁ Investing in Asia since 1991 through a variety of
market environments
❁ An independent, privately owned firm with
significant employee ownership
❁ Range of Asia investment strategies across
the risk-reward spectrum
❁ Offering a unique investment perspective from a
strategic location in San Francisco
You should carefully consider the investment objectives, risks, charges and expenses of the Matthews
Asia Funds before making an investment decision. A prospectus or summary prospectus with this and
other information about the Funds may be obtained by visiting matthewsasia.com. Please read the
prospectus carefully before investing as it explains the risks associated with investing in international
markets.
Investing in international and emerging markets may involve additional risks, such as social and political instability,
market illiquidity, exchange-rate fluctuations, a high-level of volatility and limited regulation. Fixed income investments
are subject to additional risks, including, but not limited to, interest rate, credit and inflation risks. In addition,
single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of
concentration in a specific industry, sector or geographic location. Investing in small companies is more risky and more
volatile than investing in large companies.
Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC, Berwyn, PA
Matthews Asia Funds are distributed in Latin America by HMC Partners
matthewsasia.com
FS013-1Q15

Fund Fact Sheet

Transcription

Similar documents

Flyer - Century 21 The Moore Group Orangeburg SC Real Estate

Independent Directors for Private Equity Owned and to be Selected

Matthews Station Retail 6.6.16.pub

dave matthews band

Buttylicious - Expert Agent

jacob sebastian sophia mommy dad grandma isabella

PDF - Programmer`s Page

Cyclelogical - Expert Agent

BIG LOTS!