Message to Shareholders

August 24, 2015

Dear Valued Shareholder,

We are pleased to announce the re-opening of the Matthews Pacific Tiger Fund to new investors on August 24, 2015. The Fund had been closed to most new investors on October 24, 2013 in order to maintain the integrity of the investment process and ensure there was sufficient capacity for existing investors. This followed relatively high inflows into the Fund that, if left open, could have impeded the investment team’s ability to generate strong long-term returns for shareholders. 

We believe that with the subsequent deepening of Asia’s capital markets together with the opening of new ones—such as China’s domestic A-share market through the QFII (Qualified Foreign Institutional Investor) Scheme or the Shanghai – Hong Kong Stock Connect Scheme—present new investment opportunities, particularly as valuations have declined despite an environment of ongoing growth in the region. By re-opening the Fund, we can also better balance subscription and redemption activity, and pursue new opportunities while maintaining existing ones that remain attractive.

The Matthews Pacific Tiger Fund was launched in 1994, and seeks to benefit from the ongoing economic evolution we have watched unfold in Asia. We believe the best opportunities for wealth creation arise when market reforms, enhanced competition and rising household incomes combine to spur new and growing markets. In our view, despite recent volatility, this is an ongoing trend in Asia. The Fund is a diversified, all-cap strategy that seeks long-term capital appreciation by investing in companies capable of sustained, long-term growth.

For additional information on all our Funds, please visit our website, Should you have any questions, please contact your financial advisor or call us at 800.789.ASIA. Thank you for your continued investment in the Matthews Asia Funds. We appreciate the opportunity to serve you. 

Best Regards,

Robert Horrocks, PhD
Chief Investment Officer
Matthews Asia 
  Sharat Shroff
Portfolio Manager
Matthews Asia