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Matthews Pacific Tiger Fund
MAPTX

Snapshot
  • Seeks alpha in Asia’s emerging economies by capitalizing on the rising Asia consumer
  • High-conviction equity portfolio focused on sustainable growth companies
  • All-cap fundamental approach driven by on-the-ground, proprietary research

09/12/1994

Inception Date

9.02%

YTD Return

(as of 11/08/2024)

$20.30

NAV

(as of 11/08/2024)

-0.46

1 Day NAV Change

(as of 11/08/2024)

Objective

Long-term capital appreciation

Strategy

Under normal circumstances, the Matthews Pacific Tiger 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 Ex Japan. 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 09/12/1994
Fund Assets $980.96 million (10/31/2024)
Currency USD
Ticker MAPTX
Cusip 577-130-107
Portfolio Turnover 14.8%
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia Ex Japan - Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region, excluding Japan
Fees & Expenses
Gross Expense Ratio 1.12%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
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As of 10/31/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund - MAPTX
09/12/1994
MAPTX
-3.82% 2.79% 6.93% 13.05% -7.85% 1.04% 2.78% 7.05%
MSCI All Country Asia ex Japan Index
-4.46% 5.68% 16.10% 28.58% -0.99% 4.99% 5.02% 4.53%
As of 09/30/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund - MAPTX
09/12/1994
MAPTX
7.09% 4.97% 11.17% 13.23% -5.77% 2.03% 3.31% 7.21%
MSCI All Country Asia ex Japan Index
8.47% 10.55% 21.52% 29.39% 0.98% 6.90% 5.71% 4.70%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews Pacific Tiger Fund - MAPTX
MAPTX
-4.87% -20.73% -4.41% 28.83% 10.72% -11.11% 39.96% -0.16% -1.30% 11.79%
MSCI All Country Asia ex Japan Index (USD)
6.34% -19.36% -4.46% 25.36% 18.52% -14.12% 42.08% 5.76% -8.90% 5.11%

MSCI AC Asia ex Japan Index since inception value calculated from 08/31/94.

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 06/30/2024)

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 43 funds
  • 3 YEAR
  • out of 43 funds
  • 5 YEAR
  • out of 39 funds
  • 10 YEAR
  • out of 29 funds
  • 1 YEAR
  • 4th
  • 28 out of 33 funds
  • 3 YEAR
  • 4th
  • 27 out of 31 funds
  • 5 YEAR
  • 4th
  • 28 out of 30 funds
  • 10 YEAR
  • 4th
  • 16 out of 20 funds
  • SINCE INCEPTION
  • 2nd
  • 2 out of 4 funds

Ratings agency calculation methodology

Portfolio Managers

Sean  Taylor photo
Sean Taylor

Lead Manager

Inbok  Song photo
Inbok Song

Lead Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Andrew  Mattock, CFA photo
Andrew Mattock, CFA

Co-Manager

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Co-Manager

Jeremy  Sutch, CFA photo
Jeremy Sutch, CFA

Co-Manager

Portfolio Characteristics

(as of 09/30/2024)
Fund Benchmark
Number of Positions 78 1,070
Weighted Average Market Cap $184.2 billion $170.6 billion
Active Share 57.4 n.a.
P/E using FY1 estimates 14.9x 14.2x
P/E using FY2 estimates 13.0x 12.7x
Price/Cash Flow 11.4 9.5
Price/Book 2.5 1.9
Return On Equity 16.5 15.0
EPS Growth (3 Yr) 14.4% 12.9%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 06/30/2024)
-4.67%
Alpha
1.03
Beta
91.72%
Upside Capture
109.53%
Downside Capture
-0.65
Sharpe Ratio
-0.99
Information Ratio
4.87%
Tracking Error
94.53

Fund Risk Metrics are reflective of Investor share class.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 10/31/2024)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 11.0
Tencent Holdings, Ltd. Communication Services China/Hong Kong 4.8
Alibaba Group Holding, Ltd. Consumer Discretionary China/Hong Kong 3.6
Meituan Class B Consumer Discretionary China/Hong Kong 3.4
ICICI Bank, Ltd. Financials India 2.7
Samsung Electronics Co., Ltd. Information Technology South Korea 2.5
China Merchants Bank Co., Ltd. Financials China/Hong Kong 2.5
Hon Hai Precision Industry Co., Ltd. Information Technology Taiwan 2.3
Quanta Computer, Inc. Information Technology Taiwan 2.2
HDFC Bank, Ltd. Financials India 2.1
TOTAL 37.1

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 09/30/2024)
  • Sector Allocation
  • Country Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Information Technology 25.7 25.1 0.6
Financials 23.7 21.1 2.6
Consumer Discretionary 22.6 15.0 7.6
Communication Services 10.3 10.1 0.2
Industrials 5.6 7.5 -1.9
Real Estate 4.4 2.4 2.0
Health Care 2.9 3.7 -0.8
Consumer Staples 2.7 4.3 -1.6
Utilities 1.0 2.8 -1.8
Energy 0.3 3.6 -3.3
Materials 0.2 4.5 -4.3
Cash and Other Assets, Less Liabilities 0.7 0.0 0.7

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

Country Fund Benchmark Difference
China/Hong Kong 38.5 36.5 2.0
India 19.0 22.2 -3.2
Taiwan 18.5 19.8 -1.3
South Korea 9.9 11.9 -2.0
Singapore 3.8 3.6 0.2
Vietnam 2.4 0.0 2.4
Malaysia 2.3 1.7 0.6
Philippines 2.1 0.6 1.5
Indonesia 1.8 1.9 -0.1
Thailand 1.1 1.7 -0.6
Macau 0.0 0.2 -0.2
Cash and Other Assets, Less Liabilities 0.7 0.0 0.7

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 75.4 63.8 11.6
Large Cap ($10B-$25B) 11.7 21.7 -10.0
Mid Cap ($3B-$10B) 10.8 14.3 -3.5
Small Cap (under $3B) 1.4 0.2 1.2
Cash and Other Assets, Less Liabilities 0.7 0.0 0.7

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)
12/13/2023 12/14/2023 $0.54465 $0.00000 $0.00000 $0.54465 3.0% N.A.
12/13/2022 12/14/2022 $0.00000 $0.09181 $1.62570 $1.71751 7.7% N.A.
12/14/2021 12/15/2021 $0.00000 $0.50110 $5.35902 $5.86012 17.4% N.A.
12/15/2020 12/16/2020 $0.08242 $0.42745 $1.49657 $2.00644 6.0% N.A.
12/16/2019 12/17/2019 $0.14835 $0.00000 $0.84096 $0.98931 3.5% 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 September 30, 2024

Market Environment

  • Many markets in Asia performed strongly despite volatility generated by concerns over a U.S. slowdown, China’s economy and rising interest rates in Japan. Toward the end of the quarter, the Federal Reserve’s 50 basis point (O.50%) interest rate cut, and expectations of further cuts, boosted markets.
  • India’s equity market delivered a robust performance supported by earnings growth. The market is expensive but economic growth rates remain high. Following the formation of a coalition government after the election there were also signs that growth is becoming more balanced to include services and consumption as well as infrastructure and industry.
  • In North Asia, Taiwan’s technology-heavy market was challenged despite the potential growth opportunities that artificial intelligence (AI)-linked segments offer, in part as prior performance had been strong and as questions arose over valuations. South Korea’s market was a weak performer with semiconductor stocks particularly soft.
  • China’s economy continued to struggle with weak consumer sentiment and declining property prices. Toward the end of the quarter its markets rallied after the central bank launched a broad stimulus package with measures to add liquidity, aid the property market, and boost equity markets.

Contributors and Detractors

  • For the quarter ended September 30, 2024, the Matthews Pacific Tiger Fund returned 4.97%, (Investor Class) and 5.02% (Institutional Class) while its benchmark, the MSCI All Country Asia ex Japan Index, returned 10.55% over the same period.
  • On a country basis, the top contributors to relative performance were Singapore due to stock selection and Macau due to zero allocation. The top detractors were China/Hong Kong, Taiwan and South Korea due to stock selection.
  • On a sector basis, the top three contributors to relative performance were health care and communication services due to an overweight allocation and materials due to an underweight allocation. The top three detractors were financials, consumer discretionary and information technology (IT) due to stock selection.
  • The largest contributors to absolute performance included Alibaba Group, the largest e-commerce platform company in China, Ping An Insurance Group Co. of China, a Chinese insurance company, and Tencent Holdings, a Chinese online gaming and social media conglomerate. The top three detractors included Samsung Electronics, a South Korean semiconductor and consumer electronics maker, SK Hynix, a Korean semiconductor company, and Hyundai Motor, a South Korean automotive manufacturer.

Outlook

  • The Fed’s rate cut will, we think, provide an impetus for a number of central banks in Asia to cut their own rates which should be favorable for businesses and economies. We think this is a significant turning point particularly for economies in the region. Fed rate cuts typically also bring downward pressure on the U.S. dollar which is often also a tailwind.
  • For some markets, U.S. rates cuts will have less of an impact, in our view. Taiwanese equities, for example, have already benefitted from the AI boom and valuations are now a little stretched. In China, it will take time to see if the stimulus measures provide a sustainable catalyst for recovery. Many companies are showing resilience but earnings projections are changeable and some stocks may become attractive while others become expensive.
  • We expect volatility to continue across the region, particularly as we approach and pass through the U.S. election. Further out, we see opportunities for broader geographical growth especially in Southeast Asia where we believe economies and markets will benefit from U.S. rate cuts.

 

View the Fund’s Top 10 holdings as of June 30, 2024. Current and future holdings are subject to change and risk.

Average Annual Total Returns - MAPTX as of 09/30/2024
1YR 3YR 5YR 10YR Since Inception Inception Date
13.23% -5.77% 2.03% 3.31% 7.21% 09/12/1994

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 1.12%

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.