04/30/2020
Inception Date
19.34%
YTD Return
(as of 10/14/2026)
$19.56
NAV
(as of 10/14/2026)
-0.49
1 Day NAV Change
(as of 10/14/2026)
Long-term capital appreciation
Under normal circumstances, the Matthews Emerging Markets Equity Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. The Fund may also invest in companies located in developed countries; however, the Fund may not invest in any company located in a developed country if, at the time of purchase, more than 20% of the Fund’s assets are invested in developed market companies.
Investments in emerging and frontier securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier markets countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
These and other risks associated with investing in the Fund can be found in the prospectus.
| Inception Date | 04/30/2020 | |
| Fund Assets | $308.97 million (09/30/2026) | |
| Currency | USD | |
| Ticker | MEGMX | |
| Cusip | 577-130-651 | |
| Benchmark | MSCI Emerging Markets Index | |
| Geographic Focus | Emerging Markets - Countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe | |
| Gross Expense Ratio | 1.28% | |
| Net Expense Ratio | 1.09% | |
| Objective | Long-term capital appreciation |
| Strategy | Under normal circumstances, the Matthews Emerging Markets Equity Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. The Fund may also invest in companies located in developed countries; however, the Fund may not invest in any company located in a developed country if, at the time of purchase, more than 20% of the Fund’s assets are invested in developed market companies. |
| Risks |
Investments in emerging and frontier securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier markets 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 |
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
Year to Date and Since Inception performance with less than one year of history represents actual performance, not annualized.
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.
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.
(as of 09/30/2026)
CATEGORY: Diversified Emerging Mkts
| OVERALL | 3 stars | out of 689 funds |
| 3 YEAR | 4 stars | out of 689 funds |
| 5 YEAR | 3 stars | out of 629 funds |
Ratings agency calculation methodology
Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.
The Overall Morningstar® Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.
Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Chief Investment Officer and Portfolio Manager
Sean Taylor is Chief Investment Officer and Portfolio Manager at Matthews. As Chief Investment Officer, Sean oversees the firm’s investment process and investment professionals and sets the research agenda for the investment team. Prior to joining the firm in October 2023, he was Chief Investment Officer APAC, Global Head of Emerging Markets Equity at DWS Group based in Hong Kong since he joined the company in 2013. From 2004 to 2011, he was an Investment Director at GAM, based in London and Dubai. From 1997 to 2004, he was at Societe Generale as Head of International and Emerging Markets. Sean has 30 years of experience, including more than a decade as CIO. He oversaw a number of emerging markets active strategies, including Latin America, India, China, Brazil, Russia as well as international and global strategies. He received his MBA from Manchester Business School and is a graduate of the Royal Military Academy, Sandhurst.
Portfolio Manager
Jeremy Sutch is a Portfolio Manager at Matthews. Prior to joining the firm in 2015, he was Director and Global Head of Emerging Companies at Standard Chartered Bank in Hong Kong from 2012 to 2015, responsible for the fundamental analysis of companies in Asia, with a particular focus on small- and mid-capitalization companies. From 2009 to 2012, he was Managing Director at MJP Capital in Hong Kong, which he co-founded. His prior experience has included managing small-cap equities at Indus Capital Advisors and serving as Head of Hong Kong Research for ABN AMRO Asia Securities. Jeremy earned an M.A. in French and History from the University of Edinburgh.
Sources: Factset Research Systems, Inc.
Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: BNY Mellon Investment Servicing (US) Inc.
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Not all countries are included in the benchmark index(es).
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.
Fund Risk Metrics are reflective of Investor share class.
Source: FactSet Research Systems
Visit our Glossary of Terms page for definitions and additional information.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock markets of China, India, Indonesia, Malaysia, Pakistan, Philippines, South Korea, Taiwan and Thailand. The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization weighted small cap index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungry, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan Thailand, Turkey and United Arab Emirates.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The Korea Composite Stock Price Index (KOSPI) is a market capitalization–weighted index of all common stocks listed on the Korea Stock Exchange.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
The MSCI Korea Index is a free float-adjusted market capitalization-weighted index of Korean equities listed in Korea.
The MSCI Korea 25/50 Index is designed to measure the performance of the large and mid cap segments of the Korean market. It applies certain investment limits that are imposed on regulated investment companies, or RICs, under the current US Internal Revenue Code.
Indexes are for comparative purposes only and it is not possible to invest directly in an 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.
Commentary
Period ended September 30, 2026
Summary
Market Review
Emerging markets experienced a more uneven quarter as higher oil prices, rising U.S. yields, geopolitical tensions, and trade uncertainty influenced investor sentiment. Performance varied across regions and sectors, with market leadership broadening beyond the AI-related companies that had driven earlier gains. Commodity-oriented markets benefited from firmer energy and metals prices, while technology-heavy markets faced valuation and positioning pressures.
Within Asia, South Korean equities were weighed down by a pullback in technology shares, despite continued semiconductor demand and export growth. Taiwan remained supported by AI infrastructure and semiconductor exports. China faced softer consumer demand, lower property prices, and slower industrial profits; however, equity markets responded positively to incremental policy support, with investor interest shifting toward Chinese internet platforms, financials, and Hong Kong-listed equities. Indian equities underperformed global markets during the quarter, with a sharp decline in September amid continued foreign institutional investor (FII) outflows, rupee weakness, elevated oil prices, and a hawkish tone from India’s central bank.
Outside of Asia, several commodity-oriented emerging markets benefited from higher prices, broadening market leadership beyond the narrow group of AI-related stocks that drove returns earlier in the year.
Performance
For the quarter ended September 30, 2026, the Matthews Emerging Markets Equity Fund returned -5.36%, (Investor Class) and -5.27% (Institutional Class) while its benchmark, the MSCI Emerging Markets Index, returned -0.24% over the same period. The relative shortfall was driven primarily by stock selection.
Asia Pacific
Asia Pacific was the main source of relative weakness, driven by losses in South Korea and Taiwan technology holdings. Although a small position, Singapore also detracted due to our overweight there. China and selected Taiwan holdings provided partial offsets.
South Korea
South Korea detracted from performance as technology holdings sold off following strong earlier gains and investors reassessed the pace and valuation of AI-related investment. SK Square, an investment holding company with a principal asset in SK Hynix, fell -14%. Its indirect exposure to SK Hynix increased the Fund’s sensitivity to the Korean memory cycle. We sold the position during the quarter to reduce overlapping technology exposure and reallocated capital to opportunities in consumer and internet businesses with different earnings drivers.
Samsung Electro-Mechanics, a supplier of multilayer ceramic capacitors and semiconductor package substrates, declined -31%. Although quarterly operating trends remained supported by demand for higher-value components used in servers and data centers, the share price declined with the broader technology market in South Korea and we also exited the name to de-risk the portfolio. SK Hynix, a leading producer of memory and high-bandwidth memory for AI systems, pulled back by -27%. Although the holding detracted from absolute performance, the portfolio’s underweight position contributed positively on a relative basis.
Financial holdings partially offset the weakness in technology. Hana Financial Group, one of South Korea’s major diversified financial groups, gained 29% as rising rate expectations supported the outlook for margins and investment income. Within financials, Samsung Fire & Marine Insurance, the country’s largest non-life insurer, rose 15% as underwriting and investment results improved and its capital position remained sound.
Taiwan
Taiwan produced mixed results and was the largest country detractor. MediaTek, Taiwan’s leading fabless semiconductor company, gained 14% and contributed positively as earnings exceeded expectations and investors focused on its developing data-center and custom AI chip opportunities. Elite Material declined -10% as investors took profits across the AI supply chain despite continued growth in demand for high-end materials. The company is a primary beneficiary of AI servers and high-speed switch demand, with higher copper clad laminate (CCL) content in AI servers.
China and Hong Kong
Select holdings in China and Hong Kong helped offset weakness elsewhere in Asia, with financials and materials contributing positively. China Construction Bank, one of China’s largest state-owned commercial banks, gained 24% as investors responded to improving earnings quality, balance-sheet resilience, and its dividend profile. Additionally, the portfolio’s exposure to China consumer and internet businesses increased, where valuations and company-specific prospects appeared more attractive. Alibaba Group, the largest e-commerce platform company in China, also rose 12% on back of the recovery in its cloud division. Overall, our holdings there had a neutral effect on performance.
India
India slightly detracted from performance, led by industrials. Thermax, an energy and environmental solutions company serving industrial customers, fell -35% after quarterly results reflected a provision for a legacy government engineering project, shipment delays and losses in selected renewable-energy activities. We remain patient and continue to monitor the completion of legacy projects, order quality and the company’s developing data-center cooling opportunity.
Africa and the Middle East
South Africa contributed positively, while underweights to several Gulf markets reduced the regional benefit. Valterra Platinum, one of the world’s largest producers of platinum-group metals, gained 21% following stronger first-half earnings, higher metals prices and an increased interim dividend. The company’s net-cash balance sheet and high-quality asset base remain central to the investment case.
Latin America
In Brazil, Petrobras, the integrated oil and gas producer with large low-cost deepwater assets, gained 32% as higher oil prices and quarterly earnings and production exceeded expectations.
Positioning
During the quarter, the portfolio’s exposure to Industrials, Information Technology and Financials was reduced, while increasing Consumer Discretionary and Materials. The largest country-level change was a reduction in South Korea, particularly in technology, alongside increased exposure to China internet and consumer opportunities.
We initiated positions in Sea Limited (Singapore) and Eternal Limited (India) to broaden the portfolio’s exposure to digital consumption. Sea Limited is a Southeast Asian consumer internet company with businesses spanning e-commerce, digital financial services and gaming. Our investment case centers on Shopee’s market position, improving e-commerce profitability and the potential opportunity to deepen monetization through advertising, logistics and financial services. Eternal Limited, formerly Zomato, operates food delivery, quick commerce, going-out services, and restaurant supplies in India. The company provides exposure to the continued formalization of digital commerce, supported by its leading positions in food delivery and quick commerce, a strong balance sheet and improving profitability across its consumer platforms.
Outlook
We remain constructive on the medium-term outlook for emerging markets, while recognizing that markets may remain sensitive to U.S. monetary policy, energy prices, geopolitical developments, and trade policy. Corporate earnings remain healthy in many markets, while valuations continue to trade below developed-market levels. Domestic reforms and structural growth themes also continue to support earnings and economic activity.
In Asia, our recent company meetings across semiconductors, automation, renewable energy, artificial intelligence, and consumer industries reinforced our view that the opportunity set is broadening beyond a small group of market leaders. Continued investment in AI infrastructure, advanced semiconductors, optical communications, and data-center capacity is creating opportunities across the supply chain. Demand in Taiwan and South Korea remains supportive, while efforts to localize technology development in China may create longer-term opportunities despite near-term economic weakness. The Chinese consumer remains under pressure, and we expect to maintain a measured view given still-challenging conditions, while recognizing that sentiment and activity could improve. India offers relative stability, but higher oil prices are a more direct risk given the country’s import needs. We are also seeing opportunities emerge across Southeast Asia but remain selective.
By sector, we view industrials as an important structural earnings driver in the emerging markets, alongside AI and semiconductors, financials and commodities, as they benefit from re-shoring, supply-chain diversification and geopolitical realignment. As part of our diversified approach, we continue to balance AI exposure with financials, commodities and select Latin America opportunities.
Greater variation across countries, sectors, and companies should continue to create opportunities for disciplined security selection and thoughtful country sizing. We remain focused on balance-sheet quality, earnings durability, valuation, and company-specific catalysts, while maintaining flexibility as market leadership evolves.
View the Fund's Top 10 holdings as of September 30, 2026. Current and future holdings are subject to change and risk.
Average Annual Total Returns - MEGMX as of 09/30/2026
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
Matthews has contractually agreed to waive fees and reimburse expenses to limit the Total Annual Fund Operating Expenses until April 30, 2027. Please see the Fund’s prospectus for additional details.
Investments in emerging and frontier securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier markets countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.