San Francisco, CA, June 1, 2011—
Matthews International Capital Management, LLC, advisor to the Matthews Asia Funds, announced the expansion of its fund lineup today to include a new portfolio dedicated to investing in Chinese small companies.
“While large state-owned enterprises have long dominated China’s investment universe, we are seeing small companies benefiting from the country’s shift to a market economy,” said Richard Gao, the Fund’s lead manager. “Matthews has a long history of investing in China and in our experience, investing in the initial stages of a company’s growth can be very rewarding. Small companies often provide opportunities for higher growth at lower valuations.”
The Matthews China Small Companies Fund (MCSMX
) will seek long-term capital appreciation by investing in the stocks of companies in China, Hong Kong and Taiwan with market capitalizations generally under US$3 billion. Managed by Richard Gao, and co-managed by Henry Zhang, CFA, the Fund represents the firm’s third dedicated China strategy.
The firm’s China offerings also include the Matthews China and Matthews China Dividend Funds. “In our view, the world’s most populous country is an asset class in itself and affords the opportunity to pursue a variety of strategies,” said Matthews Chief Investment Officer, Robert Horrocks, PhD. “We are excited to be able to offer a new strategy with which investors can access China’s rapidly expanding universe of small companies.” The number of publicly listed small Chinese companies (excluding A shares, which are generally not available to foreign investors) has nearly doubled in the past five years and now exceeds 1,000.
Investing in small companies is more risky and volatile than investing in large companies. Investing in international markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation.
Matthews is an independent, privately owned investment management firm and the largest dedicated Asia investment specialist in the United States. Founded in 1991, Matthews believes in the long-term growth of Asia and has focused its efforts and expertise within the region, investing through a variety of market environments. Its investment offerings provide a broad range of choices for building a global portfolio that includes exposure to one of the world’s fastest-growing regions. With $18.8 billion in assets under management as of April 30, 2011, Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information about Matthews, please visit matthewsasia.com
You should consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds carefully before making an investment decision. A prospectus with this information and other information about the Funds may be obtained by calling 1-800-789-ASIA or by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international markets.
Investing in foreign securities may involve certain additional risks, including exchange-rate fluctuations, less liquidity, greater volatility and less regulation. Single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific sector or geographic region. In addition, there is no guarantee that the Matthews Asia Funds or the companies in their portfolios will pay or continue to pay dividends.
Matthews Asia Funds are distributed in the United States by BNY Mellon Distributors Inc.
Matthews Asia Funds are distributed in Latin America by HMC Partners