San Francisco, CA, April 30, 2013
—Matthews Asia (“Matthews”) has today announced the launch of two new funds, the Matthews Asia Focus Fund (Investor Class: MAFSX, Institutional Class: MIFSX) and the Matthews Emerging Asia Fund (Investor Class: MEASX, Institutional Class: MIASX). The Matthews Asia Focus Fund provides investors with an opportunity to gain exposure to a high conviction portfolio investing in what we believe are high quality Asian companies. The Matthews Emerging Asia Fund invests primarily in companies located in the emerging and frontier Asia equity markets.
Matthews Asia Focus Fund
The Matthews Asia Focus Fund seeks long-term capital appreciation by investing in companies capable of sustainable growth based on fundamental research. While the Fund is unconstrained by sector, geographic area or market capitalization, it is designed to primarily invest in medium or large-capitalization companies with a concentrated portfolio of 25 to 35 high conviction holdings. Each company that is added to the portfolio will have undergone a thorough due diligence of their business by the investment team to support our high-conviction approach.
The Matthews Asia Focus strategy is managed by Kenneth Lowe, CFA, who has been the Co-Manager for the Matthews Growth and Income Fund since 2011. He is supported by Co-Manager Sharat Shroff, CFA, Portfolio Manager on the Matthews Pacific Tiger, Matthews Asia Growth and the Matthews India Funds since 2008, 2007 and 2006, respectively, and Co-Manager Michael Oh, CFA, Portfolio Manager on the Korea and the Asia Science and Technology Funds since 2007 and 2006, respectively.
Kenneth Lowe, Lead Manager comments:
“Given the economic developments over the past decade, Asia now provides investors with a growing pool of established companies with good corporate governance, strong management teams, medium to long operating histories and that are recognized as global or regional leaders in their industry. We believe these companies would meet the high standards required for inclusion within a high-conviction portfolio that would appeal to more risk-tolerant investors looking to gain exposure to an active Asian equity strategy.”
Jodi Morris, Senior Vice President, U.S. Client Services and Sales adds:
“For more than 20 years, Matthews Asia has been witness to Asia’s extraordinary pace of change, modernization and economic growth. As markets have evolved, we have aimed to provide investors with a range of Asia strategies across the risk-reward spectrum that take advantage of our stock-picking ability and offer exposure to compelling investment opportunities in the region. We believe this new high-conviction strategy is an extension of our long-term investment approach and builds on our experience managing concentrated portfolios that are supported by deep fundamental analysis.”
Matthews Emerging Asia Fund
The Matthews Emerging Asia Fund seeks long-term capital appreciation by investing in growth-oriented companies in much smaller but rapidly developing Asian economies such as Bangladesh, Cambodia, Indonesia, Malaysia, Myanmar, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam. The Fund will also gain exposure to companies in more established Asia ex-Japan countries, such as India, China and Taiwan. In constructing the portfolio of 60 to 100 holdings across the market-cap spectrum, the investment team also considers diversification, absolute risk and valuations.
The Matthews Emerging Asia strategy is managed by Taizo Ishida, who has been managing the Asia Growth and Japan Funds since 2007 and 2006, respectively. He is supported by Robert Harvey, CFA, who joined Matthews in 2012. Both managers have considerable experience investing in emerging and frontier markets.
Taizo Ishida, Lead Manager comments:
“The fast-growing economies of Emerging Asia are underpinned by strong foreign direct investment, governments committed to liberalizing their economies and populations that are benefiting from rising employment and standards of living. In recent years, their capital markets have deepened and they now offer a bigger universe of publicly traded firms that provide new investment opportunities. Relatively inefficient capital markets also make this an attractive region for fundamental investors such as Mathews Asia to consider.”
Jodi Morris adds:
“The launch of this Fund comes at an opportune time as the significant developments occurring in emerging Asian economies present a growing number of investment opportunities. Given the growing size of the universe, together with rising corporate governance standards, we believe we can now offer investors a more focused strategy that takes advantage of our 20 years of experience investing in developed, emerging and frontier markets in order to access these small but fast-growing Asian economies.”
At Matthews, we believe in the long-term growth of Asia. Since 1991, we have focused our efforts and expertise within the region, investing through a variety of market environments. As an independent, privately owned firm, Matthews is the largest dedicated Asia-only investment specialist in the United States with US$23.8 billion in assets under management as of March 31, 2013. Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit matthewsasia.com
You should consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds carefully before making an investment decision. A prospectus or summary prospectus with this information and other information about the Funds may be obtained by calling 1-800-789-ASIA or by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international markets.
Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Fixed income investments are subject to additional risks, including, but not limited to, interest rate, credit and inflations risks. In addition, single-country and sector strategies may be subject to a higher degree of market risk than diversified strategies because of concentration in a specific industry, sector or geographic location. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies. Focused funds may invest a larger portion of assets in the securities of a single issuer compared to diversified funds, which may subject them to greater share price volatility.
The Matthews Asia Focus and Matthews Emerging Asia Funds are new, and have a limited history of operations. There can be no guarantee that the Funds will achieve their investment objectives.
Jodi Morris is a registered representative of Foreside Funds Distributors LLC.