TOP

Matthews India Fund
MINDX

Snapshot
  • Unconstrained all-cap strategy focused on companies with a sustainable competitive edge and pricing power, which are able to perform throughout economic cycles
  • Fundamental bottom-up approach to seek well-run entrepreneurial companies with sustainable organic growth and trustworthy managements
  • Bias toward businesses that cater to rising domestic consumer demand and to policy-independent sectors

10/31/2005

Inception Date

11.15%

YTD Return

(as of 06/17/2024)

$29.31

NAV

(as of 06/17/2024)

+0.02

1 Day NAV Change

(as of 06/17/2024)

Objective

Long-term capital appreciation

Strategy

Under normal circumstances, the Matthews India Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in publicly traded common stocks, preferred stocks and convertible securities of companies located in India. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.

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 markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified fund, may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 10/31/2005
Fund Assets $862.45 million (05/31/2024)
Currency USD
Ticker MINDX
Cusip 577-130-859
Portfolio Turnover 51.0%
Benchmark MSCI India Index S&P Bombay Stock Exchange 100 Index
Geographic Focus India
Fees & Expenses
Gross Expense Ratio 1.14%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
  • data_graph_selected Created with Sketch.
  • bar_graph_selected Created with Sketch.
As of 05/31/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund - MINDX
10/31/2005
MINDX
-1.20% 0.43% 5.80% 23.47% 8.30% 9.02% 9.40% 10.37%
MSCI India Index
0.76% 3.94% 9.41% 32.01% 11.13% 12.41% 9.32% 10.06%
S&P Bombay Stock Exchange 100 Index
0.36% 3.33% 6.40% 26.19% 10.77% 11.96% 10.15% 10.89%
As of 03/31/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund - MINDX
10/31/2005
MINDX
-0.54% 4.78% 4.78% 30.82% 10.06% 8.47% 10.66% 10.41%
MSCI India Index
0.82% 6.12% 6.12% 37.35% 12.77% 11.90% 9.87% 9.98%
S&P Bombay Stock Exchange 100 Index
1.06% 4.07% 4.07% 32.15% 12.67% 11.84% 11.05% 10.86%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews India Fund - MINDX
MINDX
23.10% -9.92% 18.11% 16.45% -0.88% -10.09% 35.79% -1.23% 0.90% 63.71%
MSCI India Index
21.29% -7.49% 26.66% 15.90% 7.58% -7.30% 38.76% -1.43% -6.12% 23.87%
S&P Bombay Stock Exchange 100 Index
22.44% -4.53% 24.08% 13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40%

Effective April 29, 2024, the primary benchmark changed from the S&P Bombay Stock Exchange 100 Index to the MSCI India Index.

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

MSCI and MICM are the sources of MSCI India Index performance data.

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 03/31/2024)

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.

Ratings

  • OVERALL
  • out of 22 funds
  • 3 YEAR
  • out of 22 funds
  • 5 YEAR
  • out of 20 funds
  • 10 YEAR
  • out of 17 funds
  • 1 YEAR
  • 3rd
  • 13 out of 22 funds
  • 3 YEAR
  • 2nd
  • 9 out of 22 funds
  • 5 YEAR
  • 4th
  • 18 out of 20 funds
  • 10 YEAR
  • 2nd
  • 6 out of 17 funds
  • SINCE INCEPTION
  • 2nd
  • 1 out of 2 funds

Ratings agency calculation methodology

Portfolio Managers

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Lead Manager

Swagato  Ghosh photo
Swagato Ghosh

Co-Manager

Portfolio Characteristics

(as of 03/31/2024)
Fund Benchmark
Number of Positions 66 101
Weighted Average Market Cap $51.4 billion $71.3 billion
Active Share 49.4 n.a.
P/E using FY1 estimates 25.1x 23.9x
P/E using FY2 estimates 22.7x 21.0x
Price/Cash Flow 21.2 16.6
Price/Book 4.3 4.1
Return On Equity 16.8 18.7
EPS Growth (3 Yr) 18.7% 22.8%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 03/31/2024)
-0.58%
Alpha
0.80
Beta
73.98%
Upside Capture
79.49%
Downside Capture
0.57
Sharpe Ratio
-0.49
Information Ratio
5.35%
Tracking Error
87.73

Fund Risk Metrics are reflective of Investor share class.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 05/31/2024)
Name Sector % Net Assets
Reliance Industries, Ltd. Energy 7.2
HDFC Bank, Ltd. Financials 5.3
ICICI Bank, Ltd. Financials 5.3
Shriram Finance, Ltd. Financials 4.5
Infosys, Ltd. Information Technology 4.1
Bharti Airtel, Ltd. Communication Services 2.8
Tata Consultancy Services, Ltd. Information Technology 2.6
Bharat Heavy Electricals, Ltd. Industrials 2.6
IndusInd Bank, Ltd. Financials 2.4
Axis Bank, Ltd. Financials 2.3
TOTAL 39.1

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 03/31/2024)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 31.4 30.7 0.7
Consumer Discretionary 14.9 11.1 3.8
Industrials 11.3 8.1 3.2
Information Technology 10.6 11.0 -0.4
Health Care 9.2 4.5 4.7
Consumer Staples 7.5 9.4 -1.9
Energy 6.8 11.2 -4.4
Materials 2.7 7.3 -4.6
Communication Services 1.3 3.0 -1.7
Real Estate 1.2 0.5 0.7
Utilities 1.0 3.3 -2.3
Cash and Other Assets, Less Liabilities 2.1 0.0 2.1

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 46.8 73.1 -26.3
Large Cap ($10B-$25B) 22.0 20.6 1.4
Mid Cap ($3B-$10B) 16.9 6.2 10.7
Small Cap (under $3B) 12.3 0.1 12.2
Cash and Other Assets, Less Liabilities 2.1 0.0 2.1

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)
12/13/2023 12/14/2023 $0.50513 $0.00000 $0.30493 $0.81006 3.1% N.A.
12/13/2022 12/14/2022 $0.00000 $0.02887 $3.35147 $3.38034 13.0% N.A.
12/14/2021 12/15/2021 $0.00000 $0.26431 $2.55767 $2.82198 9.2% N.A.
12/15/2020 12/16/2020 $0.00000 $0.17084 $0.62672 $0.79756 3.1% N.A.
12/16/2019 12/17/2019 $0.00000 $0.00000 $2.80398 $2.80398 12.1% N.A.

 

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.

Commentary

Period ended March 31, 2024

Market Environment

  • India outperformed the broad emerging markets though there was some consolidation over concerns regarding elevated valuations, particularly among small caps. As a consequence, for now, we are leaning a little more to the large caps where the market is more predictable. 
  •  Infrastructure spending is helping to drive manufacturing expansion and while some consumer market segments are taking time to pick up after the pandemic, they are moving in the right direction and supporting economic activity and better earnings growth particularly in mid-cap areas.
  • Heading into elections in April-May, consensus is building around the Bharatiya Janata Party (BJP) retaining power with a good majority, adding to buoyant market sentiment and offsetting the valuation concerns.

Contributors and Detractors

  • For the quarter ended March 31, 2024, the India Fund returned 4.78%, (Investor Class) and 4.79% (Institutional Class) while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned 4.07% over the same period.
  • The top three contributors to relative performance, on a sector basis, were industrials and financials due to stock selection, and materials due to an underweight allocation. The top three detractors to relative performance were energy due to an underweight allocation, and consumer discretionary and information technology (IT) due to stock selection.
  • The three largest contributors to absolute performance during the quarter included Cummins India, a power equipment manufacturer, Reliance Industries, a multinational conglomerate, and Shriram Finance, a financial services provider. The top three detractors to performance included HDFC Bank, a leading bank and financial services company, Infosys, a consulting services firm, and LTIMindtree, an IT company.

Outlook

  • The summer climate and monsoons are near-term catalysts for the economy and the market. The summer months are expected to be more intense than usual which may help companies with summer-based products, however some crop yields may be impacted. Monsoons are expected to be normal which should help the rural economy in the medium term.   
  • Long term, we are very positive on India’s economic growth and positive that the mechanisms are in place for more infrastructure and more property investment and for a broadening out of the economy.
  • India has one of the world’s highest nominal GDP growth rates supported by higher-than-market earnings growth. In addition, India’s relatively stable political and monetary policy environment and its progress in building out export and manufacturing related infrastructure has been effective in attracting foreign direct investment.
  • While there are some concerns regarding elevated valuations, we believe there are unique characteristics that underpin these, including India’s long runway of powerful demographics and wage growth.
  • Though we expect some consolidation in Indian equities, for active investors like ourselves, we think it may be an opportunity to add exposure.

 

Top 10 holdings as of March 31, 2024. Current and future holdings are subject to change and risk.

Average Annual Total Returns - MINDX as of 03/31/2024
1YR 3YR 5YR 10YR Since Inception Inception Date
30.82% 10.06% 8.47% 10.66% 10.41% 10/31/2005

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. For the Fund's most recent month-end performance visit matthewsasia.com

Fees & Expenses
Gross Expense Ratio 1.14%

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 markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified fund, may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.

 

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

Index Definitions

The Benchmark used for comparison under "Portfolio Breakdown" and "Portfolio Characteristics" is the S&P Bombay Stock Exchange 100 index.

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.