Matthews Asia Announces Launch of Asia Small Companies Fund
Matthews Asia has announced the expansion of its Luxembourg-domiciled UCITS fund range today with the launch of the Matthews Asia Small Companies Fund.
San Francisco, CA, April 30, 2013—Matthews Asia has announced the expansion of its Luxembourg-domiciled UCITS fund range today with the launch of the Matthews Asia Small Companies Fund (Class I Acc. ISIN: LU0871674296; Class A Acc. ISIN: LU0871673728). The Fund provides investors exposure to a portfolio of equities of small capitalization companies located in Asia excluding Japan.
The Matthews Asia Small Companies Fund will seek to generate long-term capital appreciation through investments primarily in companies with a market capitalization between US$100 million to US$3 billion at the time of purchase. Matthews Asia notes that the investment universe for small companies has widened in recent years, resulting in approximately 3,800 small companies listed on the stock markets of Asia ex Japan today—compared with less than 3,400 of comparable market cap in the U.S. Matthews believes that supportive regulation and improving access to capital markets in Asia, a region known for its strong entrepreneurial spirit, will ensure that small companies continue to play an important part in the region’s growing economies.
The Matthews Asia Small Companies strategy has been available to investors in the U.S. since 2008, and delivered a three-year annualized return of 10.39% versus a benchmark return of 4.45%1. The UCITS fund will follow the same investment approach and is managed by the same Lead Portfolio Manager, Lydia So, CFA.
Lydia So, Lead Manager comments:
“Small companies in Asia have always been an integral part of the region’s economy and as capital markets have deepened, the investment universe has grown considerably. This provides new opportunities for investors to gain exposure to companies that, in our view, are typically under-researched and often under-valued compared to large companies. Our strategy seeks growth opportunities among companies that are poised to benefit from Asia’s increasing domestic demand and secular economic trends.”
Jonathan Schuman, Head of Global Business Development adds:
“We believe that this is an opportune time for those considering investing in Asia’s small-cap companies. In a region known for its entrepreneurship, smaller firms can provide direct exposure to emerging business models that have the potential to drive Asia’s growth over the coming decades. In addition, this portfolio provides investors exposure to companies that typically have a deep understanding of their customer base and the flexibility to quickly adapt to local market needs. Small companies also provide investors with an opportunity to complement and diversify their existing large-cap Asian equity exposure.
We have been investing in smaller-cap companies throughout Matthews Asia’s 22-year history and we believe that our fundamental, bottom-up investment process lends itself to finding attractive investment opportunities. The launch of this Fund also demonstrates our broader strategic commitment to delivering our specialist capabilities to retail and institutional investors globally.”
1Performance for the U.S.-domiciled Matthews Asia Small Companies Fund as of 31/03/2013.
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 the original cost. Current performance may be lower or higher than performance shown. 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. Performance details are in U.S. dollar, based on a NAV-to-NAV basis and are net of management fees and other expenses. Performance results, portfolio characteristics and holdings information for the Luxembourg-domiciled UCITS Matthews Asia Small Companies Fund may vary from the U.S.-domiciled Matthews Asia Small Companies Fund.
At Matthews, 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 is the largest dedicated Asia-only investment specialist in the United States. With US$23.8 billion in assets under management as of 31 March 2013, Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit global.matthewsasia.com.
U.S. Dollar Share Class Information
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.