July 19, 2013
Dear Valued Shareholder,
We are writing to inform you that effective July 19, 2013, portfolio management responsibilities for the Matthews Asia Dividend Fund have been assumed by Yu Zhang, CFA, and Matthews’ Chief Investment Officer, Robert Horrocks, PhD. Yu and Robert will serve as Co-Lead Managers of the Fund. Former Lead Manager, Jesper Madsen, CFA, has decided to leave Matthews Asia as of October 31, 2013 to pursue personal interests outside of finance. In the interim period, Jesper has become Co-Manager on the Matthews Asia Dividend Fund and remains as Co-Manager on the China Dividend Fund.
Yu Zhang has worked on the Matthews Asia Dividend strategy for six years, first as an analyst and later as Co-Manager of the Fund, working closely with Jesper on the day-to-day management of the portfolio. This has included conducting company research and analyzing the overall structure of, and position sizes implemented in, the portfolio. He has also had a hands-on role in risk monitoring and ensuring that the portfolio meets its investment objective, and has in-depth knowledge of the companies in the portfolio. Robert Horrocks is the Lead Manager of the Matthews Asian Growth and Income Fund, which aims to deliver long-term capital appreciation while providing some current income. This income generating strategy provided the foundation for Matthews Asia to launch the Matthews Asia Dividend Fund in 2006, which has a greater focus on total return through a combination of dividend income and growth in dividends. Given these synergies, we anticipate a seamless transition of portfolio management responsibilities and we believe that Yu and Robert are well-equipped to guide the Fund in its pursuit of its investment objective.
We would like to take this opportunity to thank Jesper for his contribution to Matthews Asia over the past nine years and for providing a significant amount of lead time to ensure that the changes announced today will not affect the management of our portfolios.
We are very proud of the depth and diversity of the investment team that we have built at Matthews Asia over the last 20 years. Asia’s financial markets continue to evolve at a rapid pace and we remain optimistic about the long-term growth opportunities that we see in Asia.
William J. Hackett
Chief Executive Officer
Matthews International Capital Management, LLC