Message to Shareholders

May 30, 2013

Dear Valued Shareholder,

In an effort to curtail the pace of inflows, the Matthews Asia Dividend Fund will close to most new investors, effective at the close of the New York Stock Exchange on Friday, June 14, 2013. Matthews Asia and the Board of Trustees of the Matthews Asia Funds believe continued unlimited sales may adversely affect the Fund and its shareholders.  We also believe that restricting access to the Fund at this time is a prudent step toward maintaining the integrity of our investment process.

The Matthews Asia Dividend Fund will continue to accept investments from existing shareholders of the Fund. However, once an account in the Fund is closed, the shareholder will no longer be able to make additional investments in the Fund. The following categories of investors may continue to invest in the closed Fund:

Financial advisors and discretionary programs with existing clients in the Fund
Retirement plans or platforms with participants that currently invest in the Fund
Model-based programs with existing accounts in the Fund
Trustees, officers and employees of the Funds and Matthews, and their family members

Please note that some intermediaries may not be able to operationally accommodate additional investments in a closed fund. The Fund’s closure applies to both Investor and Institutional Class shares. Please refer to the Investor or the Institutional Share Class Supplement to the Prospectus and Frequently Asked Questions for additional information.

Should you have any additional questions or would like to request further information, please contact us.

Matthews Asia