Under normal circumstances, the Matthews Emerging Markets Sustainable Future 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 of any market capitalization located in emerging market countries that satisfy one or more of the Fund’s environmental, social and governance (“ESG”) standards.
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.
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. Matthews Emerging Markets Sustainable Future Fund’s consideration of ESG factors in making its investment decisions may impact the Fund’s relative investment performance positively or negatively.
These and other risks associated with investing in the Fund can be found in the
prospectus.
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
Fees & Expenses
Gross Expense Ratio
1.37%
Net Expense Ratio
1.34%
Objective
Long-term capital appreciation
Strategy
Under normal circumstances, the Matthews Emerging Markets Sustainable Future 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 of any market capitalization located in emerging market countries that satisfy one or more of the Fund’s environmental, social and governance (“ESG”) standards.
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.
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. Matthews Emerging Markets Sustainable Future Fund’s consideration of ESG factors in making its investment decisions may impact the Fund’s relative investment performance positively or negatively.
The risks associated with investing in the Fund can be found in the prospectus
Performance
Monthly
Quarterly
Calendar Year
As of 06/30/2025
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Sustainable Future Fund - MASGX
04/30/2015
MASGX
7.51%
12.22%
11.65%
7.79%
4.50%
9.79%
7.32%
7.03%
MSCI Emerging Markets Index
6.14%
12.20%
15.57%
15.97%
10.23%
7.26%
5.23%
4.46%
As of 06/30/2025
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Sustainable Future Fund - MASGX
04/30/2015
MASGX
7.51%
12.22%
11.65%
7.79%
4.50%
9.79%
7.32%
7.03%
MSCI Emerging Markets Index
6.14%
12.20%
15.57%
15.97%
10.23%
7.26%
5.23%
4.46%
For the years ended December 31st
Name
2024
2023
2022
2021
2020
2019
2018
2017
2016
Matthews Emerging Markets Sustainable Future Fund - MASGX
MASGX
-2.46%
7.83%
-14.38%
11.76%
42.87%
12.55%
-9.73%
33.79%
-1.40%
MSCI Emerging Markets Index (USD)
8.05%
10.27%
-19.74%
-2.22%
18.69%
18.88%
-14.24%
37.75%
11.60%
Before July 29, 2022, the Fund was managed with a different investment strategy and may have achieved different performance results under its current investment strategy from the performance shown for periods before that date.
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 $10,000 Investment Since Inception
(as of 06/30/2025)
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
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.
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.
Vivek Tanneeru is a Portfolio Manager at Matthews. Prior to joining the firm in 2011, Vivek was an Investment Manager on the Global Emerging Markets team of Pictet Asset Management in London. While at Pictet, he also worked on the firm’s Global Equities team, managing Japan and Asia ex-Japan markets. Before earning his MBA from the London Business School in 2006, Vivek was a Business Systems Officer at The World Bank and served as a Consultant at Arthur Andersen Business Consulting and Citicorp Infotech Industries. He interned at Generation Investment Management while studying for his MBA Vivek received his Master’s in Finance from the Birla Institute of Technology & Science in India. He is fluent in Hindi and Telugu.
Portfolio Characteristics
(as of 06/30/2025)
Fund
Benchmark
Number of Positions
60
1,203
Weighted Average Market Cap
$86.8 billion
$190.5 billion
Active Share
88.5
n.a.
P/E using FY1 estimates
14.6x
13.3x
P/E using FY2 estimates
12.4x
11.9x
Price/Cash Flow
9.3
8.4
Price/Book
2.3
1.9
Return On Equity
16.7
18.4
EPS Growth (3 Yr)
32.5%
11.0%
Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 03/31/2025)
Category
3YR Return Metric
Alpha
-0.68%
Beta
1.04
Upside Capture
95.06%
Downside Capture
100.44%
Sharpe Ratio
-0.18
Information Ratio
-0.14
Tracking Error
7.88%
R²
84.17
-0.68%
Alpha
1.04
Beta
95.06%
Upside Capture
100.44%
Downside Capture
-0.18
Sharpe Ratio
-0.14
Information Ratio
7.88%
Tracking Error
84.17
R²
Fund Risk Metrics are reflective of Investor share class.
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 06/30/2025)
Sector Allocation
Country Allocation
Market Cap Exposure
Sector
Fund
Benchmark
Difference
Financials
23.9
24.5
-0.6
Information Technology
19.4
24.1
-4.7
Consumer Discretionary
18.6
12.8
5.8
Industrials
14.3
6.9
7.4
Health Care
7.5
3.2
4.3
Communication Services
5.8
9.8
-4.0
Consumer Staples
5.7
4.5
1.2
Real Estate
3.1
1.6
1.5
Utilities
2.3
2.6
-0.3
Materials
0.0
5.8
-5.8
Energy
0.0
4.3
-4.3
Liabilities in Excess of Cash and Other Assets
-0.5
0.0
-0.5
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Country
Fund
Benchmark
Difference
China/Hong Kong
32.4
28.5
3.9
India
23.7
18.1
5.6
Taiwan
14.4
18.8
-4.4
Brazil
6.0
4.4
1.6
South Korea
5.8
10.7
-4.9
Poland
2.6
1.1
1.5
Turkey
2.1
0.5
1.6
Romania
2.0
0.0
2.0
South Africa
1.9
3.2
-1.3
Greece
1.8
0.6
1.2
United States
1.6
0.0
1.6
Jordan
1.3
0.0
1.3
Vietnam
1.3
0.0
1.3
Indonesia
1.2
1.2
0.0
Philippines
1.0
0.5
0.5
Kazakhstan
0.9
0.0
0.9
Bangladesh
0.5
0.0
0.5
Chile
0.2
0.5
-0.3
Saudi Arabia
0.1
3.5
-3.4
Mexico
0.0
2.0
-2.0
United Arab Emirates
0.0
1.6
-1.6
Malaysia
0.0
1.3
-1.3
Thailand
0.0
1.0
-1.0
Kuwait
0.0
0.8
-0.8
Qatar
0.0
0.7
-0.7
Hungary
0.0
0.3
-0.3
Peru
0.0
0.3
-0.3
Czech Republic
0.0
0.2
-0.2
Colombia
0.0
0.1
-0.1
Egypt
0.0
0.1
-0.1
Liabilities in Excess of Cash and Other Assets
-0.5
0.0
-0.5
Not all countries are included in the benchmark index(es).
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
24.2
62.2
-38.0
Large Cap ($10B-$25B)
28.1
22.6
5.5
Mid Cap ($3B-$10B)
28.9
14.9
14.0
Small Cap (under $3B)
19.4
0.3
19.1
Liabilities in Excess of Cash and Other Assets
-0.5
0.0
-0.5
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.
Portfolio Breakdown benchmark reflects the MSCI Emerging Markets Index as of 6/30/23.
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.
Emerging markets had a positive quarter as concerns over U.S. tariffs eased amid potential trade deals while growth in the artificial intelligence (AI) supply chain remained strong. A temporarily weakened U.S. dollar also provided a tailwind for emerging markets. Emerging markets overall gained 12%.
South Korea was the top performing emerging market buoyed by the election of President Lee Jae Myung who is seen as a progressive and market friendly leader. India’s performance improved as the central bank cut rates to try and boost consumer spending while China’s performance was impacted by a tit-for-tat escalation of tariffs with the U.S. Markets in Southeast Asia were affected by domestic political issues and concerns over U.S. tariffs.
Latin America outperformed the broad emerging markets index. Mexico’s market benefited from alignments to the U.S. economy and Brazil gained amid an improving macro environment. A major source of uncertainty in the period was the Israel-Iran conflict and the implications it may have for the wider region and global economy.
Contributors and Detractors
For the quarter ended June 30, 2025, the Matthews Emerging Markets Sustainable Future Fund returned 12.22%, (Investor Class) and 12.29% (Institutional Class) while its benchmark, the MSCI Emerging Markets Index, returned 12.20% over the same period.
On a country basis, the top three contributors to relative performance were India and Brazil due to stock selection and Saudi Arabia due to an underweight allocation. The top three detractors were China/Hong Kong due to an overweight allocation and stock selection, South Korea and Taiwan due to an underweight allocation.
On a sector basis, the top three contributors to relative performance were consumer staples, financials and consumer discretionary due to stock selection. The top three detractors were industrials and information technology (IT) due to stock selection and health care due to an overweight allocation.
The largest contributors to absolute performance included Bandhan Bank, an Indian commercial bank, YDUQS Participacoes, a Brazilian on-campus and distance-learning education company, and JD Health International, a Chinese online healthcare platform. The top three detractors included Meituan, China’s largest food delivery service and internet platform company, Full Truck Alliance, a Chinese freight marketplace operator, and Astor Enerji A.S., a Turkish industrials company.
Outlook
With President Trump’s July 9 tariff deadline for reaching trade agreements approaching, more market volatility is to be expected. However, we believe the peak fear of tariffs has passed—barring any significant escalation in duties on countries where agreements are not reached.
We also think that earnings growth improvements in emerging markets could potentially offer significant upside pressure to investment returns. During the quarter, a large proportion of returns were tied to rising valuations and currency movements, with limited impact from improving financial results.
A potential loosening of U.S. monetary policy and a weaker dollar would also be favorable for emerging markets, particularly in Latin America. In China, while a meaningful pickup in property and general consumption has yet to be seen, we anticipate some progress later in the year and into 2026.
As summer headwinds ease, in terms of seasonality, Middle East conflicts, trade and the U.S. economy, we believe there will be greater clarity on the prospects for global markets. This should allow the drivers of emerging markets—earnings recovery, diversification, a weaker dollar, and cheap valuations—to gain traction in our view.
Average Annual Total Returns - MASGX as of 06/30/2025
1YR
3YR
5YR
10YR
Since Inception
Inception Date
7.79%
4.50%
9.79%
7.32%
7.03%
04/30/2015
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
1.37%
Net Expense Ratio
1.34%
Matthews has contractually agreed to waive fees and reimburse expenses to limit the Total Annual Fund Operating Expenses until April 30, 2026. 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. Matthews Emerging Markets Sustainable Future Fund’s consideration of ESG factors in making its investment decisions may impact the Fund’s relative investment performance positively or negatively.
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 June 30, 2025
Market Environment
Contributors and Detractors
Outlook
View the Fund's Top 10 holdings as of June 30, 2025. Current and future holdings are subject to change and risk.
Average Annual Total Returns - MASGX as of 06/30/2025
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, 2026. 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. Matthews Emerging Markets Sustainable Future Fund’s consideration of ESG factors in making its investment decisions may impact the Fund’s relative investment performance positively or negatively.