Here are some answers to the questions we hear most often. If you don't find what you are looking for, please contact us.
Cost Basis Reporting
Understanding the 1099-B Form
IRAs and Retirement Plans
Q: How do I open a new account?
Investing with Matthews is easy. To open an account, you may apply online or download application forms to send by mail.
Q: How do I make a change to the personal information or password on my account?
If you would like to change your password or any personal information associated with your account, you may log into your account and update the information. For assistance by phone, you may also contact Shareholder Services.
Q: What are the minimum requirements for initial and subsequent investments?
|Investor Class (non-retirement accounts)
|Investor Class (retirement accounts)
|Q: If I hold shares longer than 90 days, am I subject to redemption fees?
A shareholder who redeems shares that have been held longer than 90 calendar days is not subject to the 2% redemption fee. A redemption fee of 2% of the total redemption proceeds, applies to the redemption of shares held less than 90 calendar days. Details regarding the redemption fee policy can be found in the prospectus.
To determine whether the redemption fee applies to you, the Funds do not count the day that you purchased your shares, and first redeem the shares that you have held the longest. The redemption fee does not apply to shares purchased through reinvested dividends or capital gains. If you purchase shares through an intermediary, consult your intermediary to determine how the 90-calendar-day holding period will be applied. A redemption fee will be assessed on any exchange of your shares from one Matthews Asia Fund to another within 90 days of purchase. In addition, following an exchange, the 90-calendar-day holding period begins anew.
Q: How do I wire funds?
Please call us at 800.789.ASIA (2742) between 9:00 AM–7:00 PM ET, Monday through Friday, and inform us that you will be wiring funds. Please also be sure to inform your bank of your Matthews account number as part of the instructions. Your bank should then transmit the funds by wire to:
Bank of New York Mellon
Credit: [name of specific Matthews Asia Fund]
FBO: [your name and account number]
Note that wire fees are charged by most banks.
Cost Basis Reporting
Q: What's changing?
As part of the Emergency Economic Stabilization Act of 2008, new requirements for cost basis reporting were enacted that require mutual funds companies to report cost basis information to both investors and the Internal Revenue Service (IRS) on the sale or exchange of fund shares that were acquired on or after January 1, 2012—called "covered" shares.
The new regulations apply only to taxable accounts. As a result, cost basis is not required for tax-deferred accounts, including education savings and individual retirement accounts.
Q: What is cost basis?
Cost basis is the cost of the shares you purchased, including reinvested dividends and capital gains distributions. Where applicable, the cost is adjusted for any applicable sales charges or transaction fees. When you sell shares in a taxable account, the cost basis accounting method you choose determines how your gain or loss is calculated.
Q: What are covered vs. noncovered shares?
The new regulations make a distinction between covered and non-covered shares in a taxable account:
- Covered shares are any shares acquired on or after January 1, 2012. We are required to report the cost basis for any sales or exchanges of covered shares to you and the IRS.
- Noncovered shares are any shares acquired before January 1, 2012. Because they are not covered by the new rules, we are not required to report cost basis for these shares to the IRS. As a service to you, we will continue to report any cost basis information we have on noncovered shares for informational purposes only using the Average Cost method.
Q: What cost basis accounting methods are available?
Matthews’ default cost basis accounting method for our mutual fund investors is Average Cost. You have the ability to select a preferred cost basis method for determining your cost basis on covered shares—each with different tax implications. Establishing your preferred method in advance helps facilitate future sales of shares.
Please consult your tax professional to determine which method should be considered for your individual tax situation.
- Average Cost: Calculates your gains or losses on shares sold based on the average purchase price of all the shares you own.
- FIFO (First In, First Out): The shares purchased first are sold first.
- LIFO (Last In, First Out): The shares purchased last are sold first.
- HIFO (Highest Cost, First Out): The highest-cost shares are sold first.
- Specific Lot Identification: You specify the share lots in your account to be redeemed or exchanged, each time shares are sold. Note: For systematic redemptions, your shares will be sold using FIFO (First In, First Out).
Q: How do I select a cost basis method?
Your action is required by December 31, 2011. If you do not designate the cost basis method to be used prior to or at the time of your redemption, the trade will be processed using our default method of Average Cost. To select your cost basis method, you may:
- BY MAIL: Complete the election form and return it to:
- Matthews Asia Funds
- P.O. Box 9791
- Providence, RI 02940-9791
- BY PHONE: Call us at 800.789.2742, Monday through Friday, 9 a.m. to 7 p.m. ET
- ONLINE: Log onto your account online
- When you redeem covered shares (shares acquired on or after January 1, 2012) from your account, we will calculate the cost basis on those shares according to your cost basis method election.
For more information, please consult your tax professional. You may also refer to IRS publication 550, Investment Income and Expenses.
Q: What’s changing in my tax reporting?
If you redeem covered shares (shares acquired on or after January 1, 2012) from your account during 2012, the Form 1099-B that you will receive in 2013 will provide cost basis and gain or loss information specific to the covered shares redeemed.
Q: If I hold both covered and noncovered shares in my account, how will Matthews determine which shares are sold first?
Noncovered shares for which Matthews Asia does not have cost basis information will be sold first regardless of your chosen cost basis method. The order of sale for your remaining shares—both covered and noncovered—will be determined by your cost basis method. Please note, where the order in which shares are sold is based upon the cost of those shares (HIFO), the cost of noncovered shares will be fixed at their average cost.
Q: What are wash sales and does Matthews track them?
Under current IRS regulations, a wash sale occurs when a shareholder attempts to claim a loss on the sale of an investment and a substantially identical investment is purchased within 30 days before or after the sale; this loss would be disallowed. For shares covered by the new legislation effective January 1, 2012, Matthews is only required to track wash sales where both the sale and the purchase resulting in the wash sale are from identical securities traded in the same account.
Q: Can I change my cost basis method?
Yes, you have the option to change your cost basis method at any time. However, please note that if a redemption is processed under the average cost method, then the cost of all shares remaining in the account after the redemption must be fixed at their average cost. Please call our shareholder services representatives at 800.789.2742 to discuss your individual situation.
The information, including all linked pages and documents, is not intended to be tax advice and cannot be used to avoid any tax penalties.
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Q: What is Form 1099-B?
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
, is the federal information form used to report gross proceeds received from redemptions, exchanges and applicable fees of fund shares during the current reporting year to the Internal Revenue Service (IRS). What’s new on Form 1099-B?
For the 2012 tax year, the IRS expanded Form 1099-B to include new boxes in order to accommodate cost basis reporting on:
(acquired on or after January 1, 2012 and subsequently sold; basis reported to IRS)
— Short-term transactions
— Long-term transactions
January 1, 2012 and subsequently sold; basis not
reported to the IRS)
— Short-term transactions
— Long-term transactions
Short-term or long-term transactions where the cost basis is not
known (basis not
reported to the IRS)
The sale of covered shares, the sale of noncovered shares and the sale of shares for which the cost basis cannot be determined or is unknown, will be reported on Form 1099-B for each account you hold with us, where applicable.
When you redeem or exchange mutual fund shares, it may result in a taxable gain or a deductible loss, which must be reported to the IRS. The information captured in these new boxes is for your reference to complete IRS Form 8949 and Schedule D.
The sale of shares in tax-deferred retirement accounts is not subject to annual capital gains reporting requirements.
Q: When will it be available?
Form 1099-B for tax year 2012 will be mailed by February 15, 2013.
Q: Will the cost basis method be displayed on the new Form 1099-B?
The IRS does not require us to report or display the cost basis method on Form 1099-B. However, we provide the cost basis method for the transaction on confirmations and quarterly statements.
Q: How is a redemption that is comprised of both covered and noncovered shares presented?
A transaction can include both covered and noncovered shares because the redemption can be comprised of multiple purchases. The redemption transaction will be divided into the appropriate category by covered and noncovered security. A transaction where the cost basis is undetermined or unknown will be reported in the undetermined category.
Q: I exchanged shares between two Matthews Asia Funds but I did not receive a check for the proceeds. Why did I receive Form 1099-B for the Fund I exchanged from?
With an exchange you are selling shares of one fund and buying shares of another. Form 1099-B was issued to report the sale.If you have additional questions, please visit matthewsasia.com/costbasis
or call us at 800.789.2742.
This website is not meant to be a substitute for professional tax advice. Please consult your tax advisor to determine your individual tax situation.
Q: Where can I find information on a Fund's expense ratio?
First select the Fund of interest. The expense ratio is located on the Overview tab for the Fund.
Q: Where can I find a list of holdings for the Funds?
For a list of holdings, first select the Fund of interest then click on the Composition tab.
Q: Are the Matthews Asia Funds managed for tax efficiency?
No, the Funds are not specifically managed for tax efficiency. The Funds are designed for investors with long-term horizons, and seek to invest in companies that will benefit from the long-term evolution of Asia.
Q: What's the difference between the Matthews Asia Dividend Fund (MAPIX) and the Matthews Asian Growth and Income Fund (MACSX)?
The objective of the Matthews Asian Growth and Income Fund is to provide long-term capital appreciation. The Fund also seeks to provide some current income. It is designed to permit investors to participate in Asia's long-term growth with some mitigation of volatility. The Fund's portfolio typically includes a variety of fixed-income securities such as convertible bonds, corporate bonds, and high-yielding equities.
In contrast, the Matthews Asia Dividend Fund is a total return fund with an emphasis on providing current income. It seeks to achieve its investment objective by investing in income-paying common stocks and other equity-related instruments.
Q: How does the Matthews China Dividend Fund (MCDFX) differ from the Matthews China Fund (MCHFX) and other China fund offerings in the market?
The Matthews China Dividend Fund focuses on higher-yielding equities with more conservative business models. Compared to the Matthews China Fund and other China-specific offerings, we expect the Matthews China Dividend Fund to offer a unique risk/return profile that may be well suited for those seeking an income-focused strategy from China's deepening equity markets.
Q: How do I redeem funds from an IRA?
You may redeem shares from your account by completing, signing and dating an IRA Distribution Form.
Please send your completed form to the following address:
Matthews Asia Funds
P.O. Box 9791
Providence, RI 02940-5207
Q: I'd like to transfer funds from my 401K account from another firm into a Matthews Asia Funds Individual Retirement Account (IRA). How do I do this?
To transfer funds from another Custodian to the Matthews Asia Funds, you will need an established Individual Retirement Account (IRA) with the Matthews Asia Funds. To open an IRA account with the Matthews Asia Funds, please complete a Roth or Traditional IRA Application. You will also need to complete the Transfer of Assets/Direct Rollover Form, which can be found within the IRA application forms.
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Q: How often do your Funds pay distributions?
All of the Matthews Asia Funds except the Matthews Asian Growth and Income Fund, Matthews Asia Dividend Fund and Matthews China Dividend Fund generally distribute their net investment income once annually in December. The Matthews Asian Growth and Income Fund and the Matthews China Dividend Fund generally distribute net investment income semi-annually in June and December. The Matthews Asia Dividend Fund generally distributes net investment income quarterly in March, June, September and December.
For additional information, you may refer to the Fund Distributions section of the website or the prospectus.
Q: Where can I find Fund distribution details?
You may find distribution details on the Fund Distributions page or by clicking on the Distributions tab for each Fund.
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Q: How do I sign up to receive email communications?
First, go to our Email Sign Up page and select the communications you would like to receive. Fill out the requested information and click on “Sign Up”. You will begin receiving the email communications for which you subscribed.
Q: How do I change my current email communications subscriptions?
First, go to our Email Sign Up page and select the “Manage Subscriptions” link on the left side of the page. Enter the email address where you currently receive email communications and click on “Lookup Email Account”. Select the communications you would like to receive, or unselect the communications you would no longer like to receive, and click “Update”.
Please note that if you click the “Remove” button you will be removed from the Matthews email database and will no longer receive any of our email communications. You will have to re-subscribe if you would like to start receiving any of these communications in the future.
Q: How do I unsubscribe from Matthews email lists?
First, go to our Email Sign Up page and select the “Manage Subscriptions” link on the left side of the page. Enter the email address where you currently receive email communications and click on “Lookup Email Account”. While on the “Confirm your email address page” select the “Remove” button. You will no longer receive Matthews email communications.
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