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Year One: Outperforming in Emerging Markets

Portfolio Manager John Paul Lech looks back at the types of companies that led to a successful inaugural year for the Matthews Emerging Markets Equity Fund. He provides his insight into what’s worked and hasn’t worked and discusses how Matthews Asia’s expertise and experience in Asia equates to a depth of knowledge regarding companies in other parts of the world.

  • Update on equity performance and valuation (00:53m)
  • Constructing an emerging markets portfolio (02:22m)
  • Research and idea generation during a pandemic (04:08m)
  • What worked and didn’t work (06:43m)
  • Why underweight China and Taiwan (08:50m)
  • Approaching non Asian companies in other parts of the world (12:33m)
  • The outlook for emerging markets in the next 12-24 months (14:54m)

 

IMPORTANT INFORMATION

The views and information discussed in this report are as of the date of publication, are subject to change and may not reflect current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. Investment involves risk. Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies. Past performance is no guarantee of future results. 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. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information.

 

TSMC = Taiwan Semiconductor Manufacturing Company

View the most recent holdings under each Fund's Composition page. Current and future portfolio holdings are subject to change and risk.

Performance assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance a nd is no guarantee of future results. Investment return and principal value will fluctuate with market conditions so that when redeeme d, 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 bee n lower if certain of the Fund's fees and expenses had not been waived. For the Fund's most recent month end performance, please click here.

Past performance is no guarantee of future results. The views and opinions in this 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 mark ets 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 an y investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recomm end ation to buy or sell any securities mentioned.

Morningstar rankings are based on a fund's average annual total return relative to all funds in the same Morningstar category. Fund performance used within the rankings, reflects certain fee waivers, without which, returns and Morningstar rankings would have been lower. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.

As of 4/30/21, the Matthews Emerging Markets Equity fund ranked in the 8th percentile out of 218 funds in the US Fund Diversified Emerging Mkts Morningstar Category based on total returns.

A high ranking does not assure favorable performance. The Fund experienced negative performance during some of the time periods shown.

Investing in international and emerging markets may involve additional risks, such as social and political instability, marke t i lliquidity, exchange rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. These and other r isk s associated with investing in the Fund can be found in the prospectus.

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