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Matthews Asia Dividend Fund
MAPIX

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

3.56%

YTD Return

(as of 06/18/2024)

$14.10

NAV

(as of 06/18/2024)

+0.04

1 Day NAV Change

(as of 06/18/2024)

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 $708.48 million (05/31/2024)
Currency USD
Ticker MAPIX
Cusip 577-125-107
Portfolio Turnover 75.9%
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 1.10%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
  • data_graph_selected Created with Sketch.
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As of 05/31/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund - MAPIX
10/31/2006
MAPIX
2.29% 1.65% 1.58% 6.86% -10.59% 1.09% 2.79% 6.04%
MSCI All Country Asia Pacific Index
1.72% 3.11% 5.43% 14.70% -2.81% 5.79% 5.00% 4.39%
As of 03/31/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund - MAPIX
10/31/2006
MAPIX
1.87% 1.80% 1.80% 3.62% -9.37% -0.12% 3.24% 6.11%
MSCI All Country Asia Pacific Index
2.82% 5.13% 5.13% 12.11% -1.96% 4.80% 5.30% 4.41%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews Asia Dividend Fund - MAPIX
MAPIX
4.69% -29.57% -2.83% 31.25% 11.17% -12.72% 34.69% 4.13% 3.86% -0.32%
MSCI All Country Asia Pacific Index
11.81% -16.92% -1.19% 20.07% 19.74% -13.25% 32.04% 5.21% -1.68% 0.29%

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 03/31/2024)

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.

Yield

(as of 03/31/2024)
1.56% 30-Day SEC Yield
1.56% 30-Day SEC Yield (excluding expense waiver)
2.80% Dividend Yield

30-Day SEC Yield Source: BNY Mellon Investment Servicing (US) Inc.

Ratings

  • OVERALL
  • out of 10 funds
  • 3 YEAR
  • out of 10 funds
  • 5 YEAR
  • out of 10 funds
  • 1 YEAR
  • 4th
  • 101 out of 105 funds
  • 3 YEAR
  • 4th
  • 101 out of 101 funds
  • 5 YEAR
  • 4th
  • 97 out of 100 funds
  • 10 YEAR
  • 3rd
  • 38 out of 67 funds
  • SINCE INCEPTION
  • 1st
  • 1 out of 22 funds

Ratings agency calculation methodology

Portfolio Managers

Robert J. Horrocks, PhD photo
Kenneth  Lowe, CFA photo
Kenneth Lowe, CFA

Lead Manager

Elli  Lee photo
Elli Lee

Co-Manager

Siddharth  Bhargava photo
Siddharth Bhargava

Co-Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Portfolio Characteristics

(as of 03/31/2024)
Fund Benchmark
Number of Positions 54 1,464
Weighted Average Market Cap $91.2 billion $107.5 billion
Active Share 82.7 n.a.
P/E using FY1 estimates 16.2x 14.8x
P/E using FY2 estimates 14.4x 13.3x
Price/Cash Flow 10.4 9.5
Price/Book 2.1 1.7
Return On Equity 17.5 13.8
EPS Growth (3 Yr) 9.0% 13.4%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 03/31/2024)
-7.78%
Alpha
0.93
Beta
81.05%
Upside Capture
116.10%
Downside Capture
-0.73
Sharpe Ratio
-1.44
Information Ratio
5.14%
Tracking Error
90.81

Fund Risk Metrics are reflective of Investor share class.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 05/31/2024)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 5.4
Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.5
Tokio Marine Holdings, Inc. Financials Japan 3.1
ITOCHU Corp. Industrials Japan 3.0
HDFC Bank, Ltd. Financials India 2.9
AIA Group, Ltd. Financials China/Hong Kong 2.9
ORIX Corp. Financials Japan 2.6
Suzuki Motor Corp. Consumer Discretionary Japan 2.4
Macquarie Korea Infrastructure Fund Financials South Korea 2.3
Samsung Electronics Co., Ltd. Information Technology South Korea 2.1
TOTAL 30.2

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 03/31/2024)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 19.5 19.4 0.1
Information Technology 18.1 20.5 -2.4
Consumer Discretionary 13.5 14.9 -1.4
Consumer Staples 9.8 4.7 5.1
Communication Services 9.3 7.6 1.7
Industrials 8.6 12.5 -3.9
Real Estate 4.6 3.2 1.4
Utilities 3.8 2.1 1.7
Health Care 3.5 5.7 -2.2
Materials 3.3 6.5 -3.2
Energy 2.0 3.0 -1.0
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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

Country Fund Benchmark Difference
Japan 31.3 34.9 -3.6
China/Hong Kong 23.0 18.4 4.6
Australia 9.9 10.7 -0.8
Taiwan 9.1 11.0 -1.9
India 7.9 11.1 -3.2
South Korea 6.2 8.1 -1.9
Singapore 3.3 2.0 1.3
Indonesia 1.9 1.2 0.7
Thailand 1.6 1.0 0.6
Vietnam 1.6 0.0 1.6
Malaysia 0.0 0.9 -0.9
Philippines 0.0 0.4 -0.4
New Zealand 0.0 0.3 -0.3
Macau 0.0 0.1 -0.1
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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

Asset Type Fund
Common Equities and ADRs 96.0
Cash and Other Assets, Less Liabilities 4.1
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 51.8 63.2 -11.4
Large Cap ($10B-$25B) 13.3 20.9 -7.6
Mid Cap ($3B-$10B) 20.0 15.4 4.6
Small Cap (under $3B) 10.8 0.5 10.3
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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)
03/26/2024 03/27/2024 $0.08641 $0.00000 $0.00000 $0.08641 0.6% N.A.
12/13/2023 12/14/2023 $0.03653 $0.00000 $0.00000 $0.03653 0.3% N.A.
09/26/2023 09/27/2023 $0.06994 $0.00000 $0.00000 $0.06994 0.5% N.A.
03/28/2023 03/29/2023 $0.04705 $0.00000 $0.00000 $0.04705 0.3% N.A.
12/13/2022 12/14/2022 $0.00642 $0.00000 $0.00000 $0.00642 0.0% 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 March 31, 2024

Market Environment

  • The first quarter of the year was a period of contrast across markets in Asia. In particular, markets linked to technology, communication services and the global supply chains of semiconductors and artificial intelligence (AI) benefited while other interest-rate sensitive areas were held back by a reset in expectations as to the trajectory of U.S. Federal Reserve cuts. In terms of markets, Japan, Taiwan and India were the strongest performing markets while China/Hong Kong struggled. 
  • Japan was the best performing market in Asia as well globally in the first quarter. Larger payouts to minority shareholders and the robust buyback of shares have allowed returns on equity (ROE) to be maintained far above what the country’s GDP growth would imply. The Bank of Japan’s recent decision to end its negative interest rate policy is a key signal that the country’s growth momentum is real while monetary policy is set to remain accommodative.
  • India outperformed the broad emerging markets though there was some consolidation over concerns regarding elevated valuations. Unique characteristics underpinning India’s elevated valuations include having one of the world’s highest nominal GDP growth rates supported by higher-than-market earnings growth and a long runway of powerful demographics and wage growth.
  • Taiwan did well thanks to its exposure to global supply chains in technology. Its strong ties to the rapidly growing contribution of generative AI to economies and world trade helped.
  • Chinese stocks were volatile in the first quarter but rebounded from January’s sell-off as investors weighed positive statements from the Chinese government regarding its 5% GDP growth target, efforts to underpin the local stock markets via ETF purchases and green-shoots of improvement in corporate earnings revisions. Nevertheless, the market still ended the period in negative territory. 

Contributors and Detractors

  • For the quarter ended March 31, 2024, the Asia Dividend Fund returned 1.8%, (Investor Class) and 1.82% (Institutional Class) while its benchmark, the MSCI All Country Asia Pacific Index, returned 5.13% over the same period.
  • The top three contributors to relative performance, on a country basis, were Australia due to stock selection, Vietnam due to an off-benchmark position and Indonesia due to stock selection. The top three detractors to relative performance were Japan and India due to stock selection and China/Hong Kong due to an overweight allocation.
  • The top three contributors to relative performance, on a sector basis, were information technology (IT) due to stock selection, materials due to an underweight allocation and communication services due to stock selection. The top three detractors to relative performance were financials, consumer discretionary and real estate due to stock selection.
  • The largest contributors to absolute performance during the quarter included Taiwan Semiconductor Manufacturing Company, a leading Taiwanese chip manufacturer, Disco, a Japanese semiconductor equipment manufacturer, and Tokio Marine Holdings, a Japanese insurance company. The top three detractors to performance included AIA Group, an insurance services provider, Guangdong Investment, a Chinese infrastructure company and HDFC Bank, a leading Indian bank and financial services company.

Outlook

  • The outlook for the U.S. economy and the Federal Reserve’s pace of interest rate adjustments remains an input in determining the pathway for markets in the near term, particularly with regards to its impact on currencies as inflation appears somewhat sticky and economic data robust. Any weakening of the U.S. dollar may be helpful for risk assets such as emerging markets.
  • Within Asia, we continue to remain concerned around some of the short and medium-term challenges that China faces including private sector and consumer sentiment, the weak property market, and geopolitical tensions. However, market expectations appear downbeat and valuations are reasonable, potentially providing some support.
  • Additionally, while we expect some consolidation in Japanese equities, recent structural improvements in capital allocation should lead to an equal structural re-rating in expected stock multiples in our view.
  • For the region broadly, valuations appear reasonable, and earnings growth is expected to be robust. 

 

Top 10 holdings as of March 31, 2024. Current and future holdings are subject to change and risk. Dividends are not guaranteed and may fluctuate.

Average Annual Total Returns - MAPIX as of 03/31/2024
1YR 3YR 5YR 10YR Since Inception Inception Date
3.62% -9.37% -0.12% 3.24% 6.11% 10/31/2006

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 1.10%
Yields as of 03/31/2024
30-Day SEC Yield 1.56%
30-Day SEC Yield (excluding expense waiver) 1.56%
Dividend Yield 2.80%

The 30-Day SEC Yield represents net investment income earned by the Fund over the 30-day period ended 03/31/2024, 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.

 

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.