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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

6.57%

YTD Return

(as of 07/17/2024)

$14.48

NAV

(as of 07/17/2024)

-0.15

1 Day NAV Change

(as of 07/17/2024)

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.

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

Fund Facts
Inception Date 10/31/2006
Fund Assets $700.31 million (06/30/2024)
Currency USD
Ticker MAPIX
Cusip 577-125-107
Portfolio Turnover 75.9%
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 1.10%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
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As of 06/30/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund - MAPIX
10/31/2006
MAPIX
2.16% 1.94% 3.77% 5.55% -10.17% 0.50% 2.70% 6.13%
MSCI All Country Asia Pacific Index
2.39% 2.68% 7.94% 13.49% -1.96% 5.17% 4.93% 4.51%
As of 06/30/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund - MAPIX
10/31/2006
MAPIX
2.16% 1.94% 3.77% 5.55% -10.17% 0.50% 2.70% 6.13%
MSCI All Country Asia Pacific Index
2.39% 2.68% 7.94% 13.49% -1.96% 5.17% 4.93% 4.51%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews Asia Dividend Fund - MAPIX
MAPIX
4.69% -29.57% -2.83% 31.25% 11.17% -12.72% 34.69% 4.13% 3.86% -0.32%
MSCI All Country Asia Pacific Index
11.81% -16.92% -1.19% 20.07% 19.74% -13.25% 32.04% 5.21% -1.68% 0.29%

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 06/30/2024)

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.

Yield

(as of 06/30/2024)
1.72% 30-Day SEC Yield
1.72% 30-Day SEC Yield (excluding expense waiver)
2.80% Dividend Yield

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

Ratings

  • OVERALL
  • out of 10 funds
  • 3 YEAR
  • out of 10 funds
  • 5 YEAR
  • out of 10 funds
  • 10 YEAR
  • out of 10 funds
  • 1 YEAR
  • 4th
  • 89 out of 2 funds
  • 3 YEAR
  • 4th
  • 99 out of 2 funds
  • 5 YEAR
  • 4th
  • 93 out of 2 funds
  • 10 YEAR
  • 3rd
  • 42 out of 2 funds
  • SINCE INCEPTION
  • 1st
  • 1 out of 21 funds

Ratings agency calculation methodology

Portfolio Managers

Robert J. Horrocks, PhD photo
Kenneth  Lowe, CFA photo
Kenneth Lowe, CFA

Lead Manager

Elli  Lee photo
Elli Lee

Co-Manager

Siddharth  Bhargava photo
Siddharth Bhargava

Co-Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Portfolio Characteristics

(as of 06/30/2024)
Fund Benchmark
Number of Positions 54 1,397
Weighted Average Market Cap $113.4 billion $124.3 billion
Active Share 80.9 n.a.
P/E using FY1 estimates 15.9x 14.8x
P/E using FY2 estimates 14.3x 13.2x
Price/Cash Flow 10.2 9.5
Price/Book 2.3 1.7
Return On Equity 17.9 14.1
EPS Growth (3 Yr) 10.7% 13.1%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 06/30/2024)
-8.63%
Alpha
0.93
Beta
80.16%
Upside Capture
117.97%
Downside Capture
-0.80
Sharpe Ratio
-1.64
Information Ratio
5.01%
Tracking Error
91.32

Fund Risk Metrics are reflective of Investor share class.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 06/30/2024)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 6.4
Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.6
HDFC Bank, Ltd. Financials India 3.3
ITOCHU Corp. Industrials Japan 3.2
Tokio Marine Holdings, Inc. Financials Japan 2.6
AIA Group, Ltd. Financials China/Hong Kong 2.6
ORIX Corp. Financials Japan 2.5
Suzuki Motor Corp. Consumer Discretionary Japan 2.4
Macquarie Korea Infrastructure Fund Financials South Korea 2.3
Delta Electronics, Inc. Information Technology Taiwan 2.3
TOTAL 31.2

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 06/30/2024)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 19.6 20.2 -0.6
Information Technology 18.0 21.4 -3.4
Consumer Discretionary 15.0 14.0 1.0
Industrials 10.7 12.3 -1.6
Communication Services 9.9 7.9 2.0
Consumer Staples 8.5 4.4 4.1
Health Care 5.0 5.5 -0.5
Real Estate 4.0 2.7 1.3
Utilities 3.5 2.3 1.2
Materials 1.8 6.2 -4.4
Energy 1.7 3.1 -1.4
Cash and Other Assets, Less Liabilities 2.2 0.0 2.2

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

Country Fund Benchmark Difference
Japan 32.7 32.3 0.4
China/Hong Kong 22.7 18.8 3.9
Australia 10.5 10.7 -0.2
Taiwan 10.2 12.5 -2.3
India 9.1 12.4 -3.3
South Korea 6.2 7.9 -1.7
Singapore 3.0 1.9 1.1
Indonesia 1.6 1.0 0.6
Thailand 1.6 0.9 0.7
Vietnam 0.2 0.0 0.2
Malaysia 0.0 0.9 -0.9
New Zealand 0.0 0.3 -0.3
Philippines 0.0 0.3 -0.3
Macau 0.0 0.1 -0.1
Cash and Other Assets, Less Liabilities 2.2 0.0 2.2

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

Asset Type Fund
Common Equities and ADRs 97.8
Cash and Other Assets, Less Liabilities 2.2
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 55.9 64.5 -8.6
Large Cap ($10B-$25B) 12.7 20.3 -7.6
Mid Cap ($3B-$10B) 15.8 14.8 1.0
Small Cap (under $3B) 13.4 0.3 13.1
Cash and Other Assets, Less Liabilities 2.2 0.0 2.2

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)
06/25/2024 06/26/2024 $0.02868 $0.00000 $0.00000 $0.02868 0.2% N.A.
03/26/2024 03/27/2024 $0.08641 $0.00000 $0.00000 $0.08641 0.6% N.A.
12/13/2023 12/14/2023 $0.03653 $0.00000 $0.00000 $0.03653 0.3% N.A.
09/26/2023 09/27/2023 $0.06994 $0.00000 $0.00000 $0.06994 0.5% N.A.
03/28/2023 03/29/2023 $0.04705 $0.00000 $0.00000 $0.04705 0.3% 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 June 30, 2024

Market Environment

  • Markets in Asia performed largely in line with our expectations in the second quarter, with Taiwan, India and China delivering positive performances. Inflation on the whole is not as high as in most developed markets and in the absence of rate cuts from the U.S. Federal Reserve, a lot of positive performance was driven by fundamentals and earnings growth.
  • The expansion of the artificial intelligence (AI) supply chain, led by large U.S. tech firms, was another supportive theme, particularly for semiconductor hubs in Asia. The last quarter also saw volatility in India’s market triggered by Prime Minister Modi’s failure to win a majority in the national elections which sparked worries that the economic strategy of the country could be challenged.
  • Looking more closely at the region, Japan’s market was provided support by large-cap stocks as they sold down cross holdings and bought back shares to comply with regulator demands for capital efficiencies. Taiwan was driven by demand for hardware from the U.S. while South Korea experienced weakness in cyclical sectors, and in certain areas—including electric vehicles (EV) and EV battery making—oversupply has hurt prices and equity performance.
  • Indian equities recovered from the market’s negative reaction to the election result when it became clear that Modi would form a coalition with allies. Indian local bonds also had their inaugural inclusion in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) index, which is expected to add significant foreign investor inflows in coming quarters. Chinese equities, meanwhile, performed well despite ongoing economic challenges, helped by the government’s attempts to stabilize the real estate market and a cyclical pickup in some sectors.

Contributors and Detractors

  • For the quarter ended June 30, 2024, the Matthews Asia Dividend Fund returned 1.94%, (Investor Class) and 1.97% (Institutional Class) while its benchmark, the MSCI All Country Asia Pacific Index, returned 2.68% over the same period.
  • On a country basis, the top three contributors to relative performance were Japan due to stock selection, Vietnam due to an off-benchmark allocation and Philippines due to zero allocation. The top three detractors were China/Hong Kong and Indonesia due to stock selection and Taiwan due to an underweight allocation.
  • On a sector basis, the top three contributors to relative performance were industrials, information technology (IT) and communication services due to stock selection. The top three detractors were financials, consumer staples and energy due to stock selection.
  • The largest contributors to absolute performance included Taiwan Semiconductor Manufacturing Co. (TSMC), a leading Taiwanese chipmaker, Tencent Holdings, a Chinese online gaming and social media conglomerate, and Tokio Marine Holdings, a Japanese insurance company. The top three detractors to performance included PT Bank Rakyat Indonesia (Persero), an Indonesian microfinance company, Yum China Holdings, a Chinese operator of fast-food chains, and Ampol, a Petroleum refinery company operating in Australia.

Outlook

  • Post-COVID growth in Asia is starting to come through and broaden out and we think this will pave the way for consistent earnings growth over the next few years. We also see more upside to equity performance driven by North Asia and underpinned by earnings growth and a widening of AI-related adoption. In South Korea, capital reform initiatives are welcome though we see them having more of a longer-term impact on values.
  • Markets in Asia should also benefit from the onset of a monetary easing cycle in the U.S. and the decline in the value of the U.S. dollar that would likely bring, in our view. In India, we think the market will continue to progress though it is still expensive. Under the new coalition government, we may see spending on growth spread out beyond infrastructure and CapEx which could yield more opportunities in consumption.
  • In Japan, we are constructive for three reasons: resilient earnings; capital efficiency gains; and positioning—global investors remain underweight to Japan which leaves valuations at a relatively reasonable level, in our view.
  • In China, we are cognizant to potential catalysts for growth and to potential headwinds, such as increased volatility as we approach the U.S. president election in November.

 

Top 10 holdings as of June 30, 2024. Current and future holdings are subject to change and risk. Dividends are not guaranteed and may fluctuate.

Average Annual Total Returns - MAPIX as of 06/30/2024
1YR 3YR 5YR 10YR Since Inception Inception Date
5.55% -10.17% 0.50% 2.70% 6.13% 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. For the Fund's most recent month-end performance visit matthewsasia.com

Fees & Expenses
Gross Expense Ratio 1.10%
Yields as of 06/30/2024
30-Day SEC Yield 1.72%
30-Day SEC Yield (excluding expense waiver) 1.72%
Dividend Yield 2.80%

The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-day period ended 06/30/2024, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-day period. The 30-Day SEC 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.

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.

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

 

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.