Message to Shareholders

October 11, 2013
Dear Valued Shareholder,

The Matthews Pacific Tiger Fund will close to most new investors, effective at the close of the New York Stock Exchange on Friday, October 25, 2013. Matthews Asia and the Board of Trustees believe continued unlimited sales may adversely affect the Fund’s ability to achieve its investment objective.

The Matthews Pacific Tiger Fund is a concentrated, all-cap strategy and, as such, it invests in 60–75 stocks across the market-cap spectrum. Considering the portfolio construction and the allocation to some of the more emerging parts of Asia, we believe this is an appropriate time to begin taking prudent steps to protect the integrity of the investment approach while ensuring there remains sufficient capacity for existing share­holders. Importantly, we believe soft-closing the Fund will also allow the investment team to retain the flexibility of investing based on the hallmarks of the Matthews Pacific Tiger Fund that have been in place since it was launched in 1994: 
Relatively concentrated portfolio
An all-cap portfolio with a particular focus on mid-capitalized companies, which we believe offer the best long-term opportunities for steady and sustainable growth
Investments in emerging Asia that typically have lower liquidity (companies in ASEAN and India have long been components of the portfolio) compared to other parts of Asia’s capital markets like Japan or Hong Kong

By soft closing the Fund, we aim to reduce inflows into the portfolio and manage the overall size of the Fund such that our investment process is not compromised. We believe this is in the best interests of our existing shareholders.

The Matthews Pacific Tiger 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 Asia, 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, or Frequently Asked Questions for additional information.

Should you have any questions or would like to request further information, please contact your financial advisor or call us at 800.789.ASIA (2742).

Matthews Asia Funds