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Asia Growth & Income

Matthews Asia Dividend Fund MAPIX

Snapshot
  • Total return strategy seeks to access the growth of Asia Pacific with lower volatility
  • Unconstrained all-cap portfolio with a quality bias
  • Flexible approach offers participation in both growth and value markets

10/31/2006

Inception Date

3.09%

YTD Return

(as of 01/15/2021)

$23.33

Price

(as of 01/15/2021)

$5.20 billion

Fund Assets

(as of 12/31/2020)

Objective

Total return with an emphasis on providing current income.

Strategy

Under normal circumstances, the Matthews Asia Dividend Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. 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

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. Investing in emerging and frontier markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends.

The risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 10/31/2006
Fund Assets $5.20 billion (12/31/2020)
Currency USD
Ticker MAPIX
Cusip 577-125-107
Portfolio Turnover 30.32%
Benchmark MSCI All Country Asia Pacific Index
Geographic Focus Asia - Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region
Fees & Expenses
Gross Expense Ratio 1.03%
Net Expense Ratio 1.02%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
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As of 12/31/2020
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund
MAPIX
5.16% 14.52% 31.25% 31.25% 8.39% 12.30% 8.46% 9.98% 10/31/2006
MSCI All Country Asia Pacific Index
5.84% 17.88% 20.07% 20.07% 7.64% 11.62% 6.68% 5.72%
As of 12/31/2020
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund
MAPIX
5.16% 14.52% 31.25% 31.25% 8.39% 12.30% 8.46% 9.98% 10/31/2006
MSCI All Country Asia Pacific Index
5.84% 17.88% 20.07% 20.07% 7.64% 11.62% 6.68% 5.72%
For the years ended December 31st
Name 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Matthews Asia Dividend Fund
MAPIX
31.25% 11.17% -12.72% 34.69% 4.13% 3.86% -0.32% 11.27% 21.63% -10.02%
MSCI All Country Asia Pacific Index
20.07% 19.74% -13.25% 32.04% 5.21% -1.68% 0.29% 12.19% 17.05% -14.92%

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

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. Performance differences between the Institutional class and the Investor class may arise due to differences in fees charged to each class.

Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.

Growth of a Hypothetical $10,000 Investment Since Inception

(as of 12/31/2020)

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

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.

Yield

(as of 12/31/2020)
0.86% 30-Day Yield
0.86% 30-Day Yield (excluding expense waiver)
1.80% Dividend Yield

30-Day Yield Source: BNY Mellon Investment Servicing (US) Inc.

Ratings

  • OVERALL
  • out of 19 funds
  • 3 YEAR
  • out of 19 funds
  • 5 YEAR
  • out of 17 funds
  • 10 YEAR
  • out of 14 funds
  • 1 YEAR
  • 1st
  • 2 out of 98 funds
  • 3 YEAR
  • 1st
  • 5 out of 91 funds
  • 5 YEAR
  • 1st
  • 2 out of 78 funds
  • 10 YEAR
  • 1st
  • 2 out of 44 funds
  • SINCE INCEPTION
  • 1st
  • 1 out of 22 funds

Ratings agency calculation methodology

Portfolio Managers

Yu  Zhang, CFA photo
Yu Zhang, CFA

Lead Manager

Robert J. Horrocks, PhD photo
Sherwood  Zhang, CFA photo
Sherwood Zhang, CFA

Co-Manager

S. Joyce Li, CFA photo
S. Joyce Li, CFA

Co-Manager

Portfolio Characteristics

(as of 12/31/2020)
55
Number of Securities

Source: BNY Mellon Investment Servicing (US) Inc.

23.6x
P/E using FY1 estimates
18.9x
P/E using FY2 estimates
$81.7 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 12/31/2020)
Name Sector Country % Net Assets
Minth Group, Ltd. Consumer Discretionary China/Hong Kong 6.2
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 4.8
LG Chem, Ltd., Pfd. Materials South Korea 3.3
Breville Group, Ltd. Consumer Discretionary Australia 2.9
Chongqing Brewery Co., Ltd. Consumer Staples China/Hong Kong 2.8
KATITAS Co., Ltd. Real Estate Japan 2.6
Hoya Corp. Health Care Japan 2.6
MISUMI Group, Inc. Industrials Japan 2.4
Anritsu Corp. Information Technology Japan 2.3
Tencent Holdings, Ltd. Communication Services China/Hong Kong 2.2
TOTAL 32.1

Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: BNY Mellon Investment Servicing (US) Inc.

Portfolio Breakdown (%)

(as of 12/31/2020)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Consumer Discretionary 26.7 17.6 9.1
Information Technology 14.1 18.2 -4.1
Industrials 12.3 10.3 2.0
Financials 9.5 16.0 -6.5
Communication Services 9.5 10.1 -0.6
Consumer Staples 8.6 6.0 2.6
Health Care 6.5 7.8 -1.3
Real Estate 5.3 4.0 1.3
Materials 3.3 6.0 -2.7
Energy 1.1 2.1 -1.0
Utilities 0.0 1.9 -1.9
Cash and Other Assets, Less Liabilities 3.1 0.0 3.1

Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.

Country Fund Benchmark Difference
Japan 30.7 33.0 -2.3
China/Hong Kong 30.7 29.6 1.1
South Korea 9.5 8.7 0.8
Australia 8.1 9.2 -1.1
Taiwan 6.2 8.2 -2.0
Singapore 5.3 1.4 3.9
India 2.5 6.0 -3.5
Philippines 1.5 0.5 1.0
Thailand 1.2 1.2 0.0
Bangladesh 1.1 0.0 1.1
Malaysia 0.0 1.0 -1.0
Indonesia 0.0 0.9 -0.9
New Zealand 0.0 0.4 -0.4
Cash and Other Assets, Less Liabilities 3.1 0.0 3.1

Not all countries are included in the benchmark index(es).

Asset Type Fund
Common Equities and ADRs 91.4
Preferred Equities 5.5
Cash and Other Assets, Less Liabilities 3.1
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 34.3 62.2 -27.9
Large Cap ($10B-$25B) 19.2 20.2 -1.0
Mid Cap ($3B-$10B) 27.5 16.7 10.8
Small Cap (under $3B) 15.9 0.9 15.0
Cash and Other Assets, Less Liabilities 3.1 0.0 3.1

Source: FactSet Research Systems.

Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Distributions

Record Date Ex, Pay and
Reinvest Date
Ordinary
Income
Short Term
Capital Gains
Long Term
Capital Gains
Total Distributions
Per Share
% of NAV Nondividend Distribution (Return of Capital)
09/28/2020 09/29/2020 $0.05819 $0.00000 $0.00000 $0.05819 0.3% N.A.
06/24/2020 06/25/2020 $0.12004 $0.00000 $0.00000 $0.12004 0.7% N.A.
03/25/2020 03/26/2020 $0.04406 $0.00000 $0.00000 $0.04406 0.3% N.A.
12/16/2019 12/17/2019 $0.09398 $0.00000 $0.00000 $0.09398 0.5% N.A.
09/16/2019 09/17/2019 $0.11168 $0.00000 $0.00000 $0.11168 N.A. N.A.
06/17/2019 06/18/2019 $0.11691 $0.00000 $0.00000 $0.11691 N.A. N.A.
03/15/2019 03/18/2019 $0.03403 $0.00000 $0.00000 $0.03403 N.A. N.A.
View History

 

There is no guarantee that the Fund will pay or continue to pay distributions. 

Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.

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For the quarter ending September 30, 2020, the Matthews Asia Dividend Fund returned 17.69% (Investor Class) and 17.71% (Institutional Class), while its benchmark, the MSCI All Country Asia Pacific Index, returned 8.69%.

Market Environment:

Asian equity markets further extended its strong rebound during the quarter. The broad MSCI Asia Pacific Index fully recovered the losses it suffered from the earlier COVID-19 market meltdown, finishing the third quarter with a positive year-to-date return. With an effective control of the pandemic, China has seen its economic recovery pace gain speed. Elsewhere in Asia, a combination of continued monetary easing policy and fiscal stimulus measures provided the much needed backstop to the real economy and bolstered market sentiment. In addition, the U.S. dollar weakened markedly during the quarter against most Asian currencies, another tailwind for emerging markets equity performance.

Performance Contributors and Detractors:

During the third quarter, the Fund posted strong performance driven mainly by positive stock selection and sector allocation. By country, China/Hong Kong and Japan were the top contributors to performance. By sector, consumer discretionary and consumer staples added most to the performance. Minth Group, our largest holding in the Fund, appreciated 52% in the quarter and was among the top performers in the quarter. A leading auto parts manufacturer from China, Minth Group navigated pandemic-related disruptions well and further established its foothold in the global electric vehicle supply chain by gaining key industry leaders as clients. Another top contributor was LIXIL Group, a global supplier of housing fixtures listed in Japan. Under the leadership of CEO Kinya Seto, the company has been refocusing on its core businesses, streamlining cost structure and improving capital allocation. We are optimistic on the company’s strategic directions and believe its reforms will boost shareholder returns over the long run.

On the other hand, an underweight in the Philippines and India were slight detractors from relative performance. Additionally, our underweight in the information technology sector also detracted moderately. By individual securities Yuexiu Transport Infrastructure was the top performance detractor. A toll road asset owner in mainland China, Yuexiu's earnings for the first-half of the year were severely impacted by the COVID-19 outbreak. Despite the near-term headwind, Yuexiu’s underlying toll road operations started to recover during the third quarter with an improving traffic data. With a cash-generative business model, we believe Yuexiu should be able to restore its earnings power and its dividend growth going into 2021.

Notable Portfolio Changes:

Among the new positions we initiated during the quarter were several regional insurance businesses, namely Dai-ichi Life in Japan, Cathay Financials in Taiwan, and QBE in Australia. As these insurance businesses generally maintain a large fixed-income investment portfolio, their share performance is often sensitive towards a steepening yield curve. From a portfolio construction standpoint, we believe these interest-rate sensitive financial stocks collectively could be used as a "portfolio hedge" against a sudden change of forward-looking inflation expectation and a steepening yield curve, triggered by a potential medical breakthrough of COVID-19 treatment and vaccine and the global economic recovery gaining firm footing.

We exited a few holdings in the consumer staples sector during the quarter, which we either believe the "stay-home" benefits from COVID-19 pandemic have been fully reflected into the company’s share price, or the underlying business has deteriorated, making our initial investment thesis no longer valid. These included Sun Art Retail, BGF Retail, and WH Group. We decided to re-deploy capital elsewhere, including funding some of the new positions.

Outlook:

Within the Asian region, while North Asia has been leading the economic recovery effort, Southeast Asia and India are still struggling with an effective control of the virus, making their recovery picture still elusive at this moment.

Externally, the Nov. U.S. election outcome will also undoubtedly influence the post-pandemic economic and geopolitical conditions for Asia. Notwithstanding, corporate earnings in Asia this year have been resilient so far. We see considerable resilience in Asia’s dividends, providing global investors with the potential for diversification and growth.


As of September 30, 2020, the securities mentioned comprised the Matthews Asia Dividend Fund in the following percentages: Minth Group Ltd., 6.1%; LIXIL Group Corp., 2.1%; Yuexiu Transport Infrastructure Ltd., 1.2%; Dai-ichi Life Holdings, Inc., 1.4%; Cathay Financial Holding Co., Ltd., 1.5%; QBE Insurance Group, Ltd., 1.4%. The Fund held no positions in Sun Art Retail Group, Ltd., BGF Retail Co. Ltd., or WH Group. Current and future portfolio holdings are subject to change and risk.

Average Annual Total Returns - MAPIX as of 12/31/2020
1YR 3YR 5YR 10YR Since Inception Inception Date
31.25% 8.39% 12.30% 8.46% 9.98% 10/31/2006

All performance quoted is past performance and is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, 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. Please see the Fund's most recent month-end performance.

Fees & Expenses
Gross Expense Ratio 1.03%
Net Expense Ratio 1.02%

Matthews has contractually agreed to waive a portion of its advisory fee and administrative and shareholder services fee if the Fund's average daily net assets are over $3 billion, as follows: for every $2.5 billion average daily net assets of the Fund that are over $3 billion, the advisory fee rate and the administrative and shareholder services fee rate for the Fund with respect to such excess average daily net assets will be each reduced by 0.01%, in each case without reducing such fee rate below 0.00%. Any amount waived by Matthews pursuant to this agreement may not be recouped by Matthews. This agreement will remain in place until April 30, 2021 and may be terminated (i) at any time by the Board of Trustees upon 60 days' prior written notice to Matthews; or (ii) by Matthews at the annual expiration date of the agreement upon 60 days' prior written notice to the Trust, in each case without payment of any penalty.

Yields as of 12/31/2020
30-Day Yield 0.86%
30-Day Yield (excluding expense waiver) 0.86%
Dividend Yield 1.80%

The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ended 12/31/2020, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-day period. The 30-Day Yield should be regarded as an estimate of the Fund’s rate of investment income, and it may not equal the Fund’s actual income distribution rate. Source: BNY Mellon Investment Servicing (US) Inc.

Dividend Yield (trailing) is the weighted average sum of the dividends paid by each equity security held by the Fund over the last 12 months divided by the current price as of report date. The annualised dividend yield is for the equity-only portion of the Fund and does not reflect the actual yield an investor in the Fund would receive. There can be no guarantee that companies that the Fund invests in, and which have historically paid dividends, will continue to pay them or to pay them at the current rates in the future. A positive distribution yield does not imply positive return, and past yields are no guarantee of future yields.

There is no guarantee that a company will pay or continue to increase dividends. Past performance is no guarantee of future results.

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Visit our Glossary of Terms page for definitions and additional information.

Index Definitions

The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Neither the funds nor the Investment Advisor accept any liability for losses either direct or consequential caused by the use of this information.

The views and opinions in the commentary were as of the report date, subject to change and may not reflect current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.