The Matthews Asia Growth Fund intends to reorganize into the Matthews Asia Innovators Fund, subject to shareholder approval. If approved, the merger is expected to close in the third quarter of 2026. Read More
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
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.
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
1.30%
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.
The risks associated with investing in the Fund can be found in the prospectus
Performance
Monthly
Quarterly
Calendar Year
As of 06/30/2026
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
1.40%
51.92%
58.56%
76.46%
29.32%
2.91%
9.90%
9.29%
MSCI All Country Asia Pacific Index
-1.11%
21.54%
21.62%
37.70%
21.84%
8.48%
10.68%
8.11%
As of 06/30/2026
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
1.40%
51.92%
58.56%
76.46%
29.32%
2.91%
9.90%
9.29%
MSCI All Country Asia Pacific Index
-1.11%
21.54%
21.62%
37.70%
21.84%
8.48%
10.68%
8.11%
For the years ended December 31st
Name
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Matthews Asia Growth Fund - MPACX
MPACX
20.59%
8.14%
3.53%
-33.12%
-14.65%
46.76%
26.18%
-16.25%
39.39%
0.92%
MSCI All Country Asia Pacific Index (USD)
28.59%
10.01%
11.81%
-16.92%
-1.19%
20.07%
19.74%
-13.25%
32.04%
5.21%
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 $10,000 Investment Since Inception
(as of 06/30/2026)
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
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.
Tiffany Hsiao is a Portfolio Manager at Matthews. She originally joined Matthews in April 2014 and departed in August 2020 to launch a China-focused private fund at Artisan Partners. Prior to her departure, Tiffany managed the firm’s China Small Companies, former Asia Small Companies (now Emerging Markets Small Companies) and Asia Innovators strategies. Previously, she was a Vice President at Goldman Sachs Investment Partners in Hong Kong and Tokyo from 2007 to 2013, responsible for Asia Pacific investments with an emphasis on equities in China. Previous to this, she spent six years at Franklin Templeton Investments, where she managed the firm’s global communications fund. Tiffany earned her Master of Science and Information Technology from Carnegie Mellon University and received a B.A. in Economics from the University of California, Berkeley. She is fluent in Mandarin and Taiwanese, and conversational in Cantonese.
Shuntaro Takeuchi is a Portfolio Manager at Matthews. Prior to joining the firm in 2016, he was an Executive Director for Japan Equity Sales at UBS Securities LLC in New York. Beginning in 2003, he worked on both Japanese Equity and International Equity Sales at UBS Japan Securities, based in Tokyo, and held the position of Special Situations Analyst from 2006 to 2008, and Head of International Equity Sales from 2009 to 2013. Before that, he worked at Merrill Lynch Japan from 2001 to 2003 in U.S. Equity Sales. Shuntaro received a B.A. in Commerce and Management from Hitotsubashi University in Tokyo. He is fluent in Japanese.
Portfolio Characteristics
(as of 06/30/2026)
Fund
Benchmark
Number of Positions
62
1,216
Weighted Average Market Cap
$241.4 billion
$352.2 billion
Active Share
75.0
n.a.
P/E using FY1 estimates
23.0x
14.7x
P/E using FY2 estimates
16.9x
12.2x
Price/Cash Flow
31.6
13.2
Price/Book
6.7
2.4
Return On Equity
20.6
19.5
EPS Growth (3 Yr)
23.5%
22.1%
Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 06/30/2026)
Category
3YR Return Metric
Alpha
3.23%
Beta
1.23
Upside Capture
124.87%
Downside Capture
101.07%
Sharpe Ratio
1.11
Information Ratio
0.69
Tracking Error
10.82%
R²
79.47
3.23%
Alpha
1.23
Beta
124.87%
Upside Capture
101.07%
Downside Capture
1.11
Sharpe Ratio
0.69
Information Ratio
10.82%
Tracking Error
79.47
R²
Fund Risk Metrics are reflective of Investor share class.
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 06/30/2026)
Sector Allocation
Country Allocation
Market Cap Exposure
Sector
Fund
Benchmark
Difference
Information Technology
56.6
38.1
18.5
Industrials
16.5
11.9
4.6
Consumer Discretionary
6.1
9.6
-3.5
Communication Services
2.6
5.7
-3.1
Energy
1.6
1.8
-0.2
Health Care
1.5
3.5
-2.0
Materials
1.4
5.0
-3.6
Financials
0.4
18.6
-18.2
Consumer Staples
0.0
2.5
-2.5
Real Estate
0.0
1.8
-1.8
Utilities
0.0
1.4
-1.4
Cash and Other Assets, Less Liabilities
13.2
0.0
13.2
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Country
Fund
Benchmark
Difference
Taiwan
29.2
19.2
10.0
China/Hong Kong
22.5
15.5
7.0
South Korea
21.5
16.7
4.8
Japan
7.6
28.8
-21.2
India
6.0
7.8
-1.8
Australia
0.0
8.0
-8.0
Singapore
0.0
2.0
-2.0
Thailand
0.0
0.7
-0.7
Malaysia
0.0
0.6
-0.6
Indonesia
0.0
0.3
-0.3
New Zealand
0.0
0.2
-0.2
Philippines
0.0
0.2
-0.2
Cash and Other Assets, Less Liabilities
13.2
0.0
13.2
Not all countries are included in the benchmark index(es).
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
65.5
78.1
-12.6
Large Cap ($10B-$25B)
8.6
16.1
-7.5
Mid Cap ($3B-$10B)
8.9
5.7
3.2
Small Cap (under $3B)
3.8
0.0
3.8
Unassigned
0.0
0.0
0.0
Cash and Other Assets, Less Liabilities
13.2
0.0
13.2
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.
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.
Equities in Asia had a strong, albeit, volatile second quarter, amid concerns over the Iran conflict and the sustainability of the global artificial intelligence (AI) CapEx boom. South Korea and Taiwan markets led gains, supported by earnings growth and positive sentiment generated from the vast spending by U.S. hyperscalers on components and materials used in AI-related hardware.
Chinese equities declined as consumer confidence and spending remained weak. AI and technology, power infrastructure and energy generation are thriving parts of the economy but they remain a narrow pocket of China’s equity market.
India, a major oil importer, posted gains as easing tensions in the Middle East triggered a decline in energy prices. The market, however, continued to face headwinds, including AI disruptions to its key software and IT sectors.
Japan delivered robust returns supported by earnings and overseas inflows as investors sought broader diversification and multiple sources of returns. Toward the end of the quarter, AI-related beneficiaries experienced a pullback, reinforcing the importance of stock selection.
Southeast Asian markets remained peripheral to our approach as they generally faced headwinds from high energy prices. Indonesia fell on concerns over the interventionist policies of the Prabowo government while Singapore, Vietnam and the Philippines posted gains.
Contributors and Detractors
For the quarter ended June 30, 2026, the Matthews Asia Growth Fund returned 51.92%, (Investor Class) and 51.94% (Institutional Class) while its benchmark, the MSCI All Country Asia Pacific Index, returned 21.54% over the same period.
On a country basis, the top three contributors to relative performance were South Korea due to an overweight allocation, China/Hong Kong due to stock selection and Taiwan due to an overweight allocation. There were no detractors to relative performance on a country basis.
On a sector basis, the top three contributors to relative performance were information technology (IT) due to an overweight allocation, financials and consumer discretionary due to an underweight allocation. There were no detractors to relative performance on a sector basis.
The largest contributors to absolute performance included Samsung Electro-Mechanics Co., a South Korean electronic components company, SK Hynix, a South Korean semiconductor company, and Samsung Electronics, a South Korean semiconductor and consumer electronics maker. The top three detractors included Alibaba Group, the largest e-commerce platform company in China, Kingsoft Cloud Holdings Ltd., a Chinese IT company, and Tencent Holdings, a Chinese online gaming and social media conglomerate.
Outlook
We believe the outlook for the second half of the year is reasonably robust. Although interest rate cuts appear unlikely in the near term, growth in the U.S. economy may surprise investors on the upside which could be a tailwind for emerging markets.
We expect the global reindustrialization theme to continue as developed economies invest in defense and modernize their domestic industries and energy and power infrastructure. We believe this could benefit markets with advanced manufacturing resources such as South Korea and Japan.
We also see the continuing rollout of AI capabilities and hardware across industries, including manufacturing and services, and view it as a trend that is somewhere in between structural and cyclical.
Overall, fundamentals appear strong across Asia and we expect earnings growth to improve over the next few quarters. If political risk in the Middle East subsides, this will be an additional positive. While periods of market volatility are likely, any further corrections could present attractive opportunities, offering windows for investors to increase exposure.
Average Annual Total Returns - MPACX as of 06/30/2026
1YR
3YR
5YR
10YR
Since Inception
Inception Date
76.46%
29.32%
2.91%
9.90%
9.29%
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
1.30%
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.
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 June 30, 2026
Market Environment
Contributors and Detractors
Outlook
View the Fund's Top 10 holdings as of June 30, 2026. Current and future holdings are subject to change and risk.
Average Annual Total Returns - MPACX as of 06/30/2026
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
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.