Matthews Asia Announces Launch of Asia Ex Japan Dividend Fund
San Francisco, CA, 30 November 2015—Matthews Asia has announced the expansion of its Luxembourg-domiciled UCITS fund range today with the launch of the Matthews Asia ex Japan Dividend Fund (Class I Dis. ISIN: LU1311311432; Class A Dis. ISIN: LU1311310624).
The Fund will be co-led by Yu Zhang, CFA, and Robert Horrocks, PhD, CIO, the same experienced investment team that manages the firm’s flagship Asia Dividend strategy. The Matthews Asia ex Japan Dividend Fund will seek to generate an attractive total return by investing in companies that provide stable dividend income as well as companies that are positioned to grow future dividends.
The Fund aims to take advantage of both the size of the dividend pool in Asia as well as its attractive dividend growth rate. The size of dividends paid by companies in Asia ex Japan has expanded significantly in recent years, totaling about US$220 billion. Additionally, dividend growth in Asia ex Japan continues to outpace growth rates in developed markets at approximately 12.2% annually.
The Matthews Asia ex Japan Dividend strategy will follow the same investment approach as the Matthews Asia Dividend strategy, which Matthews Asia launched in 2006 as a U.S. mutual fund and has managed since 2010 as a Luxembourg-based UCITS fund.
Yu Zhang, CFA, Lead Manager comments, “Asia’s capital markets have traditionally attracted investors for their earnings growth potential but Asia is also among the largest and fastest-growing markets globally in terms of dividend payments. Compared to many Asian equity income funds that predominantly focus on high-yielding stocks, our approach is to invest in companies that offer both attractive current yields as well as companies that offer the potential for future dividend growth. Based on our experience managing dividend portfolios in Asia for the past decade, we believe this approach is an effective way to generate income while providing the potential for consistent returns with reduced volatility.”
Jonathan Schuman, Head of Global Business Development added, “Asia’s equity markets continue to play a meaningful role in meeting investors’ ongoing need for income solutions. We have experienced great success with our flagship Asia Dividend strategy since its inception in 2006, but we also recognize that many investors distinguish Japan from the rest of Asia in their portfolio construction. The Matthews Asia ex Japan Dividend Fund meets the market demand for an Asia ex-Japan income product through an investment approach that has served our clients well over the course of multiple market cycles.”
About Matthews Asia
At Matthews Asia, we believe in the long-term growth of Asia. Since 1991, we have focused our efforts and expertise within the region, investing through a variety of market environments. As an independent, privately owned firm, Matthews Asia is the largest dedicated Asia-only investment specialist in the United States. With US$26.4 billion in assets under management as of 31 October 2015, Matthews Asia employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit global.matthewsasia.com.
Sam Emery / Marina Fraser Harris
Tel. + 20 7466 5050
This release does not constitute or contain an offer, solicitation, recommendation or investment advice with respect to the purchase of the Funds described herein or any security and such document has not been approved in any jurisdiction. Prospective investors should carefully review the information contained in the prospectus and any related offering document and consult their professional legal, tax and financial advisers as to the suitability of any investment in light of their particular circumstances and applicable citizenship, residence or domicile, including any tax or foreign exchange control restrictions. No securities commission or regulatory authority has in any way passed upon the merits of an investment in the Funds or the accuracy or adequacy of this information or the material contained herein or otherwise. Neither the prospectus nor any related offering document has been approved in any jurisdiction where the Funds have not been registered for public offer and sale. This information is not, and under no circumstances is to be construed as, a prospectus, a public offering or an offering memorandum as defined under applicable securities legislation. Application for shares may only be made by way of the Funds’ most recent prospectus which is available from Matthews International Capital Management, LLC. The Funds’ shares may not be sold to citizens or residents of the United States or in any other state, country or jurisdiction where it would be unlawful to offer, solicit an offer for, or sell the shares. Performance quoted represents past performance and is no guarantee of future results. There is no guarantee that the Matthews Asia ex Japan Dividend Fund or the companies in its portfolio will pay or continue to pay dividends.