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Matthews Asia Growth Fund
MPACX

Snapshot
  • Unconstrained growth strategy investing across Asia Pacific’s developed, emerging and frontier markets
  • Focus on the most profitable and attractive growth opportunities in Asia
  • Highly-differentiated portfolio offers exposure to names often under-represented in broader global equity strategies

10/31/2003

Inception Date

13.09%

YTD Return

(as of 07/24/2025)

$25.32

NAV

(as of 07/24/2025)

-0.07

1 Day NAV Change

(as of 07/24/2025)

Objective

Long-term capital appreciation.

Strategy

Under normal circumstances, the Matthews Asia Growth Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia. The Fund may also invest in the convertible securities, of any duration or quality, of Asian companies. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.

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. Investing in emerging and frontier markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 10/31/2003
Fund Assets $209.15 million (06/30/2025)
Currency USD
Ticker MPACX
Cusip 577-130-867
Benchmark MSCI All Country Asia Pacific Index
Geographic Focus Asia - Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region
Fees & Expenses
Gross Expense Ratio 1.25%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
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As of 06/30/2025
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Growth Fund - MPACX
10/31/2003
MPACX
4.12% 9.03% 8.35% 7.11% 5.69% -1.29% 3.75% 6.90%
MSCI All Country Asia Pacific Index
4.48% 12.49% 13.58% 15.75% 11.82% 8.00% 6.15% 6.90%
As of 06/30/2025
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Growth Fund - MPACX
10/31/2003
MPACX
4.12% 9.03% 8.35% 7.11% 5.69% -1.29% 3.75% 6.90%
MSCI All Country Asia Pacific Index
4.48% 12.49% 13.58% 15.75% 11.82% 8.00% 6.15% 6.90%
For the years ended December 31st
Name 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Matthews Asia Growth Fund - MPACX
MPACX
8.14% 3.53% -33.12% -14.65% 46.76% 26.18% -16.25% 39.39% 0.92% -0.05%
MSCI All Country Asia Pacific Index (USD)
10.01% 11.81% -16.92% -1.19% 20.07% 19.74% -13.25% 32.04% 5.21% -1.68%

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate with market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived. Performance differences between the Institutional class and the Investor class may arise due to differences in fees charged to each class.

Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.

Growth of a Hypothetical $10,000 Investment Since Inception

(as of 06/30/2025)

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares.

Ratings

  • OVERALL
  • out of 10 funds
  • 3 YEAR
  • out of 10 funds
  • 5 YEAR
  • out of 10 funds
  • 10 YEAR
  • out of 10 funds

Ratings agency calculation methodology

Portfolio Managers

Michael J. Oh, CFA photo
Shuntaro  Takeuchi photo

Portfolio Characteristics

(as of 06/30/2025)
Fund Benchmark
Number of Positions 79 1,244
Weighted Average Market Cap $167.6 billion $150.2 billion
Active Share 63.4 n.a.
P/E using FY1 estimates 18.0x 15.0x
P/E using FY2 estimates 15.6x 13.5x
Price/Cash Flow 13.3 9.3
Price/Book 2.8 1.8
Return On Equity 16.7 16.0
EPS Growth (3 Yr) 19.5% 7.0%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 06/30/2025)
-5.11%
Alpha
0.95
Beta
85.69%
Upside Capture
0.94%
Downside Capture
0.06
Sharpe Ratio
-1.14
Information Ratio
5.38%
Tracking Error

Fund Risk Metrics are reflective of Investor share class.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 06/30/2025)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 7.1
Tencent Holdings, Ltd. Communication Services China/Hong Kong 4.2
Sea, Ltd. Communication Services Singapore 3.8
Eternal, Ltd. Consumer Discretionary India 3.0
Sony Group Corp. Consumer Discretionary Japan 2.9
Hitachi, Ltd. Industrials Japan 2.8
Mitsubishi UFJ Financial Group, Inc. Financials Japan 2.2
Samsung Electronics Co., Ltd. Information Technology South Korea 2.1
MakeMyTrip, Ltd. Consumer Discretionary India 1.9
Tokyo Electron, Ltd. Information Technology Japan 1.9
TOTAL 31.9

Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.

Source: BNY Mellon Investment Servicing (US) Inc.

Portfolio Breakdown (%)

(as of 06/30/2025)
  • Sector Allocation
  • Country Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Consumer Discretionary 22.3 14.0 8.3
Information Technology 21.7 20.5 1.2
Financials 18.5 22.5 -4.0
Industrials 14.7 12.7 2.0
Communication Services 12.2 9.4 2.8
Health Care 5.7 5.2 0.5
Materials 1.6 4.9 -3.3
Consumer Staples 1.5 4.1 -2.6
Energy 1.0 2.4 -1.4
Real Estate 0.8 2.5 -1.7
Utilities 0.0 1.9 -1.9
Cash and Other Assets, Less Liabilities 0.1 0.0 0.1

Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.

Country Fund Benchmark Difference
Japan 29.3 31.1 -1.8
China/Hong Kong 28.2 21.8 6.4
India 15.9 12.1 3.8
Taiwan 9.6 12.6 -3.0
South Korea 8.1 7.2 0.9
Singapore 4.8 2.5 2.3
Australia 2.7 9.9 -7.2
Indonesia 0.8 0.8 0.0
Vietnam 0.5 0.0 0.5
Malaysia 0.0 0.9 -0.9
Thailand 0.0 0.7 -0.7
New Zealand 0.0 0.3 -0.3
Philippines 0.0 0.3 -0.3
Macau 0.0 0.1 -0.1
Cash and Other Assets, Less Liabilities 0.1 0.0 0.1

Not all countries are included in the benchmark index(es).

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 81.3 68.0 13.3
Large Cap ($10B-$25B) 13.7 21.6 -7.9
Mid Cap ($3B-$10B) 4.8 10.3 -5.5
Small Cap (under $3B) 0.0 0.1 -0.1
Cash and Other Assets, Less Liabilities 0.1 0.0 0.1

Source: FactSet Research Systems.

Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Distributions

Record Date Ex, Pay and
Reinvest Date
Ordinary
Income
Short Term
Capital Gains
Long Term
Capital Gains
Total Distributions
Per Share
% of NAV Nondividend Distribution (Return of Capital)
12/17/2024 12/18/2024 $0.52880 $0.00000 $0.00000 $0.52880 2.2% N.A.
12/13/2023 12/14/2023 $0.37967 $0.00000 $0.00000 $0.37967 1.8% N.A.
12/13/2022 12/14/2022 $0.00000 $0.00000 $0.57757 $0.57757 2.6% N.A.
12/14/2021 12/15/2021 $0.00000 $0.47969 $1.17413 $1.65382 4.8% N.A.
12/15/2020 12/16/2020 $0.15061 $0.16831 $1.39495 $1.71387 4.6% N.A.

 

There is no guarantee that the Fund will pay or continue to pay distributions. 

Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.

Commentary

Period ended June 30, 2025

Market Environment

  • Asia markets had a positive quarter as concerns over U.S. tariffs eased amid potential trade deals while growth in the artificial intelligence (AI) supply chain remained strong. A temporarily weakened U.S. dollar, caused by concerns over U.S. trade policy and debt levels, also provided a tailwind. The region overall gained 12.5%.
  • South Korea was the top performing market in the region, buoyed by the election of President Lee Jae Myung who is seen as a progressive and market friendly leader. India’s performance improved as the central bank cut rates to try and boost consumer spending while in China, performance was impacted by a tit-for-tat escalation of tariffs with the U.S.
  • Markets in Southeast Asia were affected by domestic political issues and concerns over U.S. tariffs. A major source of uncertainty in the period was the Israel-Iran conflict and the implications it may have for the wider region and global economy.
  • Japanese equities experienced an increase in overseas investor inflows as interest increased in developed markets beyond the U.S. There were several areas of robust performance including insurance, and capital efficiency reforms remain a key market attraction.

Contributors and Detractors

  • For the quarter ended June 30, 2025, the Matthews Asia Growth Fund returned 9.03%, (Investor Class) and 9.05% (Institutional Class) while its benchmark, the MSCI All Country Asia Pacific Index, returned 12.49% over the same period.
  • On a country basis, the top three contributors to relative performance were Singapore and India due to stock selection and Thailand due to zero allocation. The top three detractors were Japan due to stock selection, China/Hong Kong due to an overweight allocation and stock selection and Taiwan due to an underweight allocation and stock selection.
  • On a sector basis, the top three contributors to relative performance were materials and consumer staples due to an underweight allocation and health care due to stock selection. The top three detractors were information technology (IT) due to stock selection, consumer discretionary due to an overweight allocation and financials due to stock selection.
  • The largest contributors to absolute performance included Taiwan Semiconductor Manufacturing Co. (TSMC), a globally leading chipmaker, Eternal Ltd., operator of Zomato, a leading Indian online restaurant booking and food delivery company, and Sea, a Singapore-based provider of PC and mobile digital content. The top three detractors included Alibaba Group, the largest e-commerce platform company in China, Pinduoduo (PDD), one of China's largest e-commerce platforms that started its businesses with a focus on lower-tier city, price sensitive consumers, and Meituan, China's largest food delivery service and internet platform company.

Outlook

  • With President Trump’s July 9 tariff deadline for reaching trade agreements approaching, more market volatility is to be expected. However, we believe the peak fear of tariffs has passed—barring any significant escalation in duties on countries where agreements are not reached.
  • We also think that earnings growth improvements in Asia could potentially offer significant upside pressure to investment returns. During the quarter, a large proportion of returns were tied to increasing valuations and currency movements with limited impact from improving financial results.
  • A potential loosening of U.S. monetary policy and a weaker dollar would also be favorable for the region especially those economies exposed to global trade. In China, while a meaningful pickup in property and general consumption has yet to be seen, we anticipate some progress later in the year and into 2026.
  • As summer headwinds ease, in terms of seasonality Middle East conflicts, trade and the U.S. economy, we believe there will be greater clarity on the prospects for global markets. This should allow the drivers of Asian markets—earnings recovery, diversification, a weaker dollar, and cheap valuations—to gain traction in our view.

View the Fund's Top 10 holdings as of June 30, 2025. Current and future holdings are subject to change and risk.

Average Annual Total Returns - MPACX as of 06/30/2025
1YR 3YR 5YR 10YR Since Inception Inception Date
7.11% 5.69% -1.29% 3.75% 6.90% 10/31/2003

All performance quoted is past performance and is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund's fees and expenses had not been waived. For the Fund's most recent month-end performance visit matthewsasia.com

Fees & Expenses
Gross Expense Ratio 1.25%

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. Investing in emerging and frontier markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.

 

Visit our Glossary of Terms page for definitions and additional information.

Index Definitions

The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Neither the funds nor the Investment Advisor accept any liability for losses either direct or consequential caused by the use of this information.

The views and opinions in the commentary were as of the report date, subject to change and may not reflect current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.