Matthews Asia Announces Launch of an Emerging Markets Fund
Matthews Asia announces the launch of the Matthews Emerging Markets Equity Fund.
SAN FRANCISCO, APRIL 30, 2020—Matthews Asia has today announced the launch of the Matthews Emerging Markets Equity Fund. The launch of this Fund represents an important milestone in the firm's history, as this will be the first Matthews Asia strategy to invest in broad emerging markets.
For 29 years, Matthews Asia has focused its research and investment capabilities within a region that now dominates the emerging markets. Asia's representation within the MSCI Emerging Market Index has risen to over 75%, with the increasing inclusion of China's domestically listed A-shares driving recent changes in benchmark weightings. The firm believes that the ascendance of Asia, and the long-term potential of China in particular, makes it increasingly important for emerging market investors to have an investment manager with deep experience of the region. As an Asia investment specialist, Matthews Asia has significant experience investing in the complex and diverse range of countries and economies that comprise the largest segment of emerging markets. The firm believes it can leverage this expertise in other emerging markets and apply the same established fundamental investment process in order to evaluate a company, its management team, corporate governance and valuation.
While Matthews Asia continues to believe that a dedicated allocation to Asia is the most effective approach to gain exposure to the region, the firm also recognizes that many investors manage their asset allocation to Asia using a broader emerging markets investment solution. With Asia comprising the core of emerging markets, the distinction between dedicated Asia and emerging markets is not as distinct as it was when the firm was founded in 1991. Matthews Asia recognizes that investors may want a portfolio with exposure to broad emerging markets opportunities.
Using a fundamental, bottom-up investment approach, the Matthews Emerging Markets Equity Fund seeks to provide investors with a core, quality-growth portfolio. The investment team typically look for companies that have higher growth metrics, as well as higher quality metrics, than the broader market. The Fund also tends to focus on companies that generally can serve the growing needs of domestic consumers within their market, exhibit less cyclicality and have long-term structural growth potential.
Lead Managers on the Fund are John Paul Lech and Beini Zhou. Before joining Matthews Asia, John Paul spent 10 years at OppenheimerFunds (subsequently acquired by Invesco) as an Analyst and Portfolio Manager on a diversified emerging market equity strategy. Beini Zhou joined Matthews 2013 from Artisan Partners and has extensive experience researching companies in Asia.
William Hackett, CEO comments, “At Matthews Asia, our mission has always been to provide our clients with Asia investment solutions that can generate attractive returns and build wealth over the long term. With Asia's growing prominence in emerging markets, I believe this is the right time for an Asia specialist to launch an emerging market strategy that takes advantage of our 29 years of investment experience in the region and apply that to markets outside of Asia. We are excited to be broadening our Asia investment solutions for our investors that I believe will enable them to benefit from our distinctive long-term investment perspectives.”
About Matthews Asia
At Matthews Asia, 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 Asia is the largest dedicated Asia investment specialist in the United States. With approximately US$19.1 billion in assets under management as of March 31, 2020, Matthews Asia employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit matthewsasia.com.
+703 534 3735
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.
Investing in international and emerging markets, including frontier markets, may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in small- and mid-size companies is more risky than investing in larger companies as they may be more volatile and less liquid than large companies. 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. Additionally investing in emerging and frontier securities involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed countries. Pandemics and other public health emergencies can result in market volatility and have an adverse impact on the value of an investment in the fund. Less developed countries and their health systems may be more vulnerable to these impacts all of which could be significant and result in losses.