Snapshot
- Total return strategy seeks to access the growth of Asia Pacific with lower volatility
- Unconstrained all-cap portfolio with a quality bias
- Flexible approach offers participation in both growth and value markets
10/31/2006
Inception Date
14.41%
YTD Return
(as of 10/16/2026)
$19.75
NAV
(as of 10/16/2026)
-0.24
1 Day NAV Change
(as of 10/16/2026)
Objective
Total return with an emphasis on providing current income.
Strategy
Under normal circumstances, the Matthews Asia Dividend Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. The Fund may also invest in convertible debt and equity securities. The Fund seeks to provide a level of current income that is higher than the yield generally available in Asian equity markets over the long term.
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. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends.
These and other risks associated with investing in the Fund can be found in the prospectus.
Fund Facts
| Inception Date | 10/31/2006 | |
| Fund Assets | $698.10 million (09/30/2026) | |
| Currency | USD | |
| Ticker | MAPIX | |
| Cusip | 577-125-107 | |
| Benchmark | MSCI All Country Asia Pacific Index | |
| Geographic Focus | Asia - Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region | |
Fees & Expenses
| Gross Expense Ratio | 1.21% | |
| Objective | Total return with an emphasis on providing current income. |
| Strategy | Under normal circumstances, the Matthews Asia Dividend Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. The Fund may also invest in convertible debt and equity securities. The Fund seeks to provide a level of current income that is higher than the yield generally available in Asian equity markets over the long term. |
| Risks |
Investments in Asian securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging and frontier markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends.
The risks associated with investing in the Fund can be found in the prospectus |
Performance
- Monthly
- Quarterly
- Calendar Year
As of 09/30/2026
As of 09/30/2026
For the years ended December 31st
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
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 $10,000 Investment Since Inception
(as of 09/30/2026)Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
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.
Yield
(as of 09/30/2026)
1.62%
30-Day SEC Yield
The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-day period ended 09/30/2026, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-day period. The 30-Day SEC Yield should be regarded as an estimate of the Fund’s rate of investment income, and it may not equal the Fund’s actual income distribution rate.
2.94%
Dividend Yield
<p data-pm-slice="1 1 []">Dividend Yield (trailing) is the weighted average sum of the dividends paid by each equity security held by the Fund over the last 12 months divided by the current price as of report date. The annualised dividend yield is for the equity-only portion of the Fund and does not reflect the actual yield an investor in the Fund would receive. There can be no guarantee that companies that the Fund invests in, and which have historically paid dividends, will continue to pay them or to pay them at the current rates in the future. A positive distribution yield does not imply positive return, and past yields are no guarantee of future yields.</p>
| 30-Day SEC Yield | 1.62% |
| Dividend Yield | 2.94% |
30-Day SEC Yield Source: BNY Mellon Investment Servicing (US) Inc.
Portfolio Managers
Sean Taylor
Chief Investment Officer and Portfolio Manager
Sean Taylor is Chief Investment Officer and Portfolio Manager at Matthews. As Chief Investment Officer, Sean oversees the firm’s investment process and investment professionals and sets the research agenda for the investment team. Prior to joining the firm in October 2023, he was Chief Investment Officer APAC, Global Head of Emerging Markets Equity at DWS Group based in Hong Kong since he joined the company in 2013. From 2004 to 2011, he was an Investment Director at GAM, based in London and Dubai. From 1997 to 2004, he was at Societe Generale as Head of International and Emerging Markets. Sean has 30 years of experience, including more than a decade as CIO. He oversaw a number of emerging markets active strategies, including Latin America, India, China, Brazil, Russia as well as international and global strategies. He received his MBA from Manchester Business School and is a graduate of the Royal Military Academy, Sandhurst.
Sojung Park
Portfolio Manager
Sojung Park is a Portfolio Manager. Prior to joining the firm in 2016, she earned an MBA from the University of Chicago’s Booth School of Business. From 2010 to 2013, Sojung worked as an Equity Research Analyst at HSBC Securities as primary analyst for mid-cap companies in the Korean financial services sector, and from 2009 to 2010, was an Equity Research Associate at E*Trade Securities. She received a Bachelor of Business Administration from Seoul National University and is fluent in Korean.
Portfolio Characteristics
(as of 09/30/2026)Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 09/30/2026)1.28%
Alpha
0.75
Beta
79.10%
Upside Capture
78.24%
Downside Capture
1.25
Sharpe Ratio
-0.55
Information Ratio
6.19%
Tracking Error
85.70
R²
Fund Risk Metrics are reflective of Investor share class.
Source: FactSet Research Systems
Top 10 Holdings
(as of 09/30/2026)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 09/30/2026)- Sector Allocation
- Country Allocation
- Asset Type Breakdown
- Market Cap Exposure
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Not all countries are included in the benchmark index(es).
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
LATEST RESEARCH & INSIGHTS
Visit our Glossary of Terms page for definitions and additional information.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock markets of China, India, Indonesia, Malaysia, Pakistan, Philippines, South Korea, Taiwan and Thailand. The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization weighted small cap index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungry, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan Thailand, Turkey and United Arab Emirates.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The Korea Composite Stock Price Index (KOSPI) is a market capitalization–weighted index of all common stocks listed on the Korea Stock Exchange.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
The MSCI Korea Index is a free float-adjusted market capitalization-weighted index of Korean equities listed in Korea.
The MSCI Korea 25/50 Index is designed to measure the performance of the large and mid cap segments of the Korean market. It applies certain investment limits that are imposed on regulated investment companies, or RICs, under the current US Internal Revenue Code.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.
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.
Commentary
Period ended September 30, 2026
Summary
Market Review
Asia region’s performance varied across regions and sectors, with market leadership broadening beyond the AI-related companies that had driven earlier gains. Technology-heavy markets faced valuation and positioning pressures.
South Korean equities were weighed down by a pullback in technology shares, despite continued semiconductor demand and export growth. Taiwan remained supported by AI infrastructure and semiconductor exports. China faced softer consumer demand, lower property prices, and slower industrial profits; however, equity markets responded positively to incremental policy support, with investor interest shifting toward Chinese internet platforms, financials, and Hong Kong-listed equities. Indian equities underperformed global markets during the quarter, with a sharp decline in September amid continued foreign institutional investor (FII) outflows, rupee weakness, elevated oil prices, and a hawkish tone from India’s central bank.
In Japan, market leadership broadened as investors placed greater emphasis on earnings delivery, capital returns and company-specific fundamentals. Financial companies continued to benefit from a higher-rate environment and improving shareholder-return policies, while select industrial and service-oriented businesses were supported by digitalization, infrastructure investment and efforts to improve productivity.
Performance
For the quarter ended September 30, 2026, the Matthews Asia Dividend Fund returned 1.94% (Investor Class) and 2.00% (Institutional Class), while its benchmark, the MSCI All Country Asia Pacific Index, returned 1.76% over the same period. Country allocation contributed, while stock selection partly offset that benefit.
Asia Pacific
Asia Pacific results were led by South Korea, China/Hong Kong, India and Singapore. Japan and Taiwan were the primary country detractors and Australia detracted modestly.
South Korea
South Korea was the largest contributor to relative performance, with both the portfolio’s overweight allocation and stock selection both added value. Within Information Technology, the absence of SK Hynix was the largest positive driver as the memory-chip producer fell -23%. Hana Financial Group, a diversified Korean banking and financial-services company, rose 29%, supported by expectations for stronger margins and investment income amid rising rate expectations. Within Financials, Samsung Fire & Marine Insurance, the country’s largest non-life, also contributed, benefiting from improved underwriting and investment results and a sound capital position.
Industrials also contributed with Samsung E&A, a global engineering and project-management company serving energy, petrochemical, power and industrial customers, whose shares rose 30% on expectations for stronger order intake, improving free cash flow and increased shareholder returns. SK Square, an investment holding company with exposure to SK Hynix, also added. These gains were partly offset by Samsung Electronics, which declined -11%. Samsung, the world’s largest memory-chip producer came under pressure as investors questioned the sustainability of AI spending and intensifying memory-chip competition, despite a constructive longer-term demand outlook.
China and Hong Kong
China and Hong Kong contributed, led by Financials and select Industrial holdings. China Construction Bank rose approximately 24%, while Industrial and Commercial Bank of China gained approximately 19%. Both are large state-owned commercial banks with broad deposit and lending franchises. Their shares were supported by stable asset quality, solid earnings, improving shareholder distributions and renewed investor demand for income-oriented financial holdings. Swire Pacific, a diversified group with property, aviation and beverage businesses, advanced 27% as operating trends improved across its core divisions and the company raised its interim dividend. BOC Hong Kong also contributed, benefiting from stable net interest income, wealth-management activity and cross-border financial flows.
Japan
Japan detracted, as the portfolio’s underweight allocation and stock selection offset gains from several holdings. Within Financials, Mitsubishi UFJ Financial Group and Tokio Marine Holdings benefited from higher domestic yields and capital-return prospects. We believe ongoing corporate should support Japan’s Financials sector over the long term. Within Industrials, Sumitomo Corporation, a trading and investment company engaged in global product and service sales, import/export and multi-sector business investments, gained on continued operating progress across its diversified businesses.
Taiwan
Taiwan detracted, primarily within information technology. Taiwan Semiconductor Manufacturing Company, the world’s largest dedicated semiconductor foundry, was broadly flat and held up better than South Korean memory-chip companies, but its large portfolio weight still reduced absolute return.
Other Markets
Singapore added through DBS Group, a banking and financial services company, whose shares rose 21% as wealth-management fees, deposit strength and resilient margins supported earnings. India and Australia detracted modestly.
Positioning
During the quarter, we increased the portfolio’s allocation to South Korea, moving from an underweight to an overweight through additions in Industrials and Information Technology, while maintaining a preference for Korean Financials. The Fund remained overweight Hong Kong/China and underweight in Taiwan and India.
Samsung E&A, a global engineering and project-management company, was added for exposure to its growing order pipeline across energy security, petrochemical, power and industrial projects. The investment case is supported by expectations for higher order intake, improving free cash flow and a rising payout ratio. SK Square was also added, offering indirect exposure to SK Hynix and other technology investments through a holding-company structure. Its appeal reflects long-term demand for high-bandwidth memory and the potential value of the discount to its underlying assets.
Hong Kong remained an overweight, although the allocation declined after the sale of AIA Group, as the pan-Asian life insurer lagged the broader rally in Hong Kong financials and conglomerates. Capital was redirected toward opportunities with more attractive income profiles, valuation and company-specific catalysts. China, Taiwan and India remained underweights. Cash and other unassigned exposure ended the quarter near 8%.
Outlook
We remain constructive on the medium-term outlook for Asia Pacific equities, while recognizing that markets may remain sensitive to U.S. monetary policy, energy prices, geopolitical developments and trade policy. Recent company meetings across semiconductors, automation, renewable energy, artificial intelligence and consumer businesses reinforce our view that the opportunity set is broadening beyond a narrow group of market leaders.
AI infrastructure remains an important demand driver for semiconductors, industrial computing, networking and advanced materials in our view. We also see Industrials as a structural earnings opportunity, supported by re-shoring, supply-chain diversification and geopolitical realignment. Select Asian banks and insurers remain attractive where resilient earnings, capital-return programs and expanding wealth-management franchises may support shareholder returns.
We remain focused on companies with durable franchises, improving returns on capital and exposure to long-term themes including AI infrastructure, advanced manufacturing and Asian financial services. Country and position sizes will continue to reflect our assessment of company fundamentals, valuation and the balance between income and capital appreciation.
View the Fund's Top 10 holdings as of September 30, 2026. Current and future holdings are subject to change and risk. Dividends are not guaranteed and may fluctuate
Average Annual Total Returns - MAPIX as of 09/30/2026
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
Yields as of 09/30/2026
The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-day period ended 09/30/2026, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-day period. The 30-Day SEC Yield should be regarded as an estimate of the Fund’s rate of investment income, and it may not equal the Fund’s actual income distribution rate. Source: BNY Mellon Investment Servicing (US) Inc.
Dividend Yield (trailing) is the weighted average sum of the dividends paid by each equity security held by the Fund over the last 12 months divided by the current price as of report date. The annualised dividend yield is for the equity-only portion of the Fund and does not reflect the actual yield an investor in the Fund would receive. There can be no guarantee that companies that the Fund invests in, and which have historically paid dividends, will continue to pay them or to pay them at the current rates in the future. A positive distribution yield does not imply positive return, and past yields are no guarantee of future yields.
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. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends.
There is no guarantee that a company will pay or continue to increase dividends. Past performance is no guarantee of future results.