Matthews Asia Announces Launch of Matthews Asia Innovative Growth Fund

London, March 23, 2021—Matthews Asia announced today that it will make available its US$2 billion Matthews Asia Innovators Strategy in UCITS format through the launch of the Matthews Asia Innovative Growth Fund (Class I ACC GBP ISIN: LU2298460192; Class I ACC USD ISIN: LU2298459939).

Managed by 20-year veteran Michael Oh, CFA, the Fund seeks to invest in innovative, high-quality companies that can capitalize on structural growth trends and large addressable markets across Asia.

Matthews Asia believes that the next generation of leading innovation-driven businesses will come from Asia because the region has the key ingredients for innovation-led economic growth: large addressable markets; substantial entrepreneurial talent; and sustainable sources of capital.  The firm now finds five broad types of innovation driving long-term growth for business in Asia: business model innovation; product and services innovation; business strategy innovation; marketing innovation; and organizational design innovation.

Using bottom-up fundamental research, the Fund will seek to invest in quality growth companies that demonstrate innovation in their businesses, whether through their product offerings,  services or disruptive business models and that allow them to build strong market leading positions. The high-conviction all-cap portfolio is expected to consist of 30-50 stocks and will invest across the Asia ex Japan region. 

Matthews Asia has a long track record of investing in innovative companies in Asia. The Matthews Asia Innovators Strategy, also managed by Michael Oh, has been available to investors in the U.S. since 1999, and delivered a five-year annualized return of 27.45% versus a benchmark return of 17.17%. ¹

Michael Oh, CFA, Lead Manager: “We believe Asia represents a significant opportunity for investors seeking innovative companies that offer the potential for long-term capital appreciation. Asia as a region now has three key essentials for innovation: a large addressable market size, entrepreneurs and abundant human capital, and a vibrant venture capital industry. This means that there is now an entire ecosystem of innovative growth companies for investors to invest in as they turn their attention to Asia.”

Robert Horrocks, PhD, Chief Investment Officer: “Matthews Asia has been investing in companies across Asia for nearly three decades and we understand what it takes for companies to be successful in this region. This Strategy has been an early investor in some of today’s most well-known Asian companies, and continues to seek to identify many smaller ‘game changing’ and innovative companies. Our bottom-up fundamental approach is well-suited to identifying the most attractive innovative companies in the region.”

Jonathan Schuman, Global Head of Sales and Client Service: “The strategy behind the Asia Innovative Growth Fund has been a highly successful approach for investing in growth companies in Asia since 1999, and it is an approach that we believe will enable us to identify attractive growth companies in an innovation-inspired world.  The Fund provides exposure to structural trends that have caught the attention of global investors including: health care; education; fintech; internet services; and online entertainment.”

ROLLING 12 MONTH RETURNS (for the period ended 31 December 2020)

¹ Data as of 28 February 2021. Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses.

The performance information above is for a representative portfolio in the Matthews Asia Innovators strategy, based on the largest AUM managed by Matthews International Capital Management, LLC. This performance information does not, and it is not intended to, represent performance of the Matthews Asia Innovative Growth Fund, which commenced operations on 23 March 2021. The performance information of the representative portfolio is shown for the purpose of indicating a longer past track record and for reference only. While the Matthews Asia Innovative Growth Fund is managed in a substantially similar manner as the Matthews Asia Innovators strategy, performance results for the Matthews Innovative Growth Fund may vary from the representative portfolio for the Matthews Asia Innovators strategy. Individual account performance will vary.

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 fees and expenses had not been waived. Investors investing in Funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.

Source: BNY Mellon Investment Servicing (US) Inc.

Risk Considerations

The value of an investment in the Fund can go down as well as up and possible loss of principal is a risk of investing. Investments in international and emerging market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. The Fund invests in holdings denominated in foreign currencies, and is exposed to the risk that the value of the foreign currency will increase or decrease. The Fund invests primarily in equity securities, which may result in increased volatility. Pandemics and other public health emergencies can result in market volatility and disruption. These and other risks associated with investing in the Fund can be found in the Prospectus

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NOTES TO EDITORS

About Matthews Asia

Matthews Asia is an independent, privately owned firm headquartered in San Francisco with offices in London, Hong Kong, Shanghai and Singapore. Founded in 1991, the firm specializes in investing in Asia’s equity and fixed income markets for institutions, intermediaries and retail investors worldwide. With US$30.9 billion in assets under management as of 28 February 2021, 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

Media Contact:

Sam Emery
Quill PR
Tel. +44 (0) 20 7466 5050

Disclosure

This announcement is for informational purposes only and does not, in any way, constitute investment advice or an offer to sell or a solicitation of an offer to buy any security or product mentioned herein. 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.

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.      

Matthews Asia is the brand for Matthews International Capital Management, LLC and its direct and indirect subsidiaries. Matthews International Capital Management, LLC is the Investment Manager to the Matthews Asia Funds, and is a U.S.-based investment adviser registered with the U.S. Securities and Exchange Commission who has not represented and will not represent that it is otherwise registered with any other regulator or regulatory body. 

In the UK, this document is only made available to professional clients and eligible counterparties as defined by the Financial Conduct Authority (“FCA”). Under no circumstances should this document be forwarded to anyone in the UK who is not a professional client or eligible counterparty as defined by the FCA. Issued in the UK by Matthews Global Investors (UK) Limited, which is authorised and regulated by the FCA, FRN 667893.