At Matthews, we believe in the long-term growth of Asia. Since 1991, we have focused our efforts and expertise within the region, investing through a variety of market environments. As an independent, privately owned firm, Matthews is the largest dedicated Asia-only investment specialist in the United States.
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Matthews Asia Strategic Income Fund


Inception Date

November 30, 2011

Fund Assets

$65.84 million (8/31/2014)

Symbol

MAINX

CUSIP

577-125-503

Benchmark

HSBC Asian Local Bond Index

Geographic Focus

Asia
Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region


Investment Objective

Seeks total return over the long term with an emphasis on income.

Strategy

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, supra-national institutions, and companies in Asia. 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.

Distributions

The Matthews Asia Strategic Income Fund intends to distribute its income quarterly. Third Quarter 2014 distributions were paid on September 18, 2014 to shareholders of record as of September 17, 2014. Distribution information is now available.

Risks

Investments in Asian securities may involve 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. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
 
The risks associated with investing in the Fund can be found in the prospectus.

Portfolio Managers

Lead Manager

Teresa Kong, CFA

Co-Manager

Gerald M. Hwang, CFA
Satya Patel

Fees & Expenses

Gross Expense Ratio1

1.28%
After fee waiver and expense reimbursement: 1.10% 2

Portfolio Turnover 3

48.71%

Yield

As of 6/30/2014

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.
1Matthews 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 The lesser of fiscal year 2013 long-term purchase costs or sales proceeds divided by the average monthly market value of longterm securities.