Matthews Asia Credit Opportunities Fund


Inception Date

29 April 2016

Fund Assets

$43.22 million  (6/30/2018)

Symbol

MCRDX

CUSIP

577-130-677

Benchmark

J.P. Morgan Asia Credit Index

Geographic Focus

Asia
Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region

Investment Objective

Seeks total return over the long term.

Strategy

Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in debt and debt-related instruments issued by companies as well as governments, quasi-governmental entities, and supranational institutions in Asia. Debt and debt-related instruments typically include bonds, debentures, bills, securitized instruments (which are vehicles backed by pools of assets such as loans or other receivables), notes, certificates of deposit and other bank obligations, bank loans, senior secured bank debt, convertible debt securities, credit-linked notes, inflation-linked instruments, repurchase agreements, payment-in-kind securities and derivative instruments with fixed income characteristics.

Distributions

The Matthews Asia Credit Opportunities Fund intends to distribute its income quarterly. Second quarter 2018 distributions were paid on June 19, 2018 to shareholders of record as of June 18, 2018. Second quarter 2018 distribution information are now available.

Risks

Investments in Asian securities may involve 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 inflation risks. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
 
The risks associated with investing in the Fund can be found in the prospectus.

Portfolio Managers

Lead Managers

Teresa Kong, CFA
Satya Patel

Fees & Expenses

Gross Expense Ratio

1.86%
After fee waiver and expense reimbursement:  1.15% 1

Portfolio Turnover 2

27.86%

Yield

6/30/2018 As of 06/30/2018


1 Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 0.90% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 0.90%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2019 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days' written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date.             
2 The lesser of fiscal year 2017 long-term purchase costs or sales proceeds divided by the average monthly market value of long term securities.