Fact Sheet - Matthews Asia

Matthews Asia Dividend Fund
ASIA Growth and
Income strategies
March 31, 2015
Closed to most new investors. See Prospectus for details.
Investment Objective
Total return with an emphasis on providing current income.
Strategy
FUND FACTS
Investor Class Institutional Class
Ticker
CUSIP
Inception
NAV
Initial Investment
Gross Expense Ratio1
MAPIX
577125107
10/31/06
$16.56
$2,500
1.06%
Portfolio Statistics
Total # of Positions
Net Assets
Weighted Average Market Cap
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
2% within first 90 calendar days of purchase
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
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. There is
no guarantee that the Fund or the companies in its portfolio will pay or continue to pay
dividends.
PERFORMANCE AS OF MARCH 31, 2015
Average Annual Total Returns
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
GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
$25,000
Matthews Asia Dividend Fund
$22,547
MSCI AC Asia Pacific Index4
$20,000
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.
$15,000
$14,468
Lipper Pacific Region Funds Category
Average4,5
$13,783
$10,000
$5,000
10/06
02/08
06/09
10/10
02/12
06/13
03/15
The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital
gain distributions or redemption of fund shares. Values are in US$.
1 Matthews Asia Funds does not charge 12b-1 fees.
2 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 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.
4 Calculated from 10/31/06.
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.
FS002_MAPIX_1Q15
Matthews Asia Dividend Fund
Portfolio Management
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%
% OF ASSETS IN TOP TEN
28.8%
COUNTRY ALLOCATION (%) 7
Fund
SECTOR ALLOCATION (%) 7
Benchmark Difference
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
Benchmark Difference
Consumer Staples
24.4
6.2
18.2
Consumer Discretionary
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
Information Technology
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
Cash and Other Assets,
Less Liabilities
0.0
0.3
-0.3
2.1
0.0
2.1
Source: FactSet Research Systems
Sector data based on MSCI’s revised Global Industry
Classification Standards. For more details,
visit www.msci.com.
Source: FactSet Research Systems
MARKET CAP EXPOSURE (%) 7,8
ASSET TYPE BREAKDOWN (%) 7
Fund
Robert J. Horrocks, PhD
Lead Manager
Vivek Tanneeru
Co-Manager
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
Matthews Asia Funds are distributed in Latin America
by HMC Partners
Benchmark Difference
Mega Cap (over $25B)
26.0
47.8
-21.8
Large Cap ($10B-$25B)
22.3
25.4
-3.1
Mid Cap ($3B-$10B)
31.3
24.0
7.3
Small Cap (under $3B)
Cash and Other Assets,
Less Liabilities
18.3
2.8
15.5
2.1
0.0
2.1
Source: FactSet Research Systems
Common Equities and ADRs
95.8
Preferred Equities
2.1
Cash and Other Assets, Less Liabilities
2.1
Source: FactSet Research Systems
P/E RATIOS 9
P/E Using FY1 Estimates
15.3x
P/E Using FY2 Estimates
13.8x
Source: Factset Research Systems (P/E est. as of 03/31/15)
6
7
8
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.
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.
©2015 Matthews International Capital Management, LLC
800.789.ASIA | matthewsasia.com