Matthews Asia Announces Launch of China Dividend Fund
Matthews Asia has announced the expansion of its Luxembourg-domiciled UCITS fund range today with the launch of the Matthews China Dividend Fund.
San Francisco, CA, January 31, 2013—Matthews Asia (“Matthews”) has announced the expansion of its Luxembourg-domiciled UCITS fund range today with the launch of the Matthews China Dividend Fund (Class A Acc. ISIN: LU0871673132). The Fund provides investors with an opportunity to gain exposure to a portfolio dedicated exclusively to investing in Chinese dividend-paying companies.
The Matthews China Dividend Fund will seek to invest in companies that are well-positioned to grow future dividends while providing an attractive dividend yield. In designing the Fund, Matthews noted that Asia Pacific has evolved into one of the premier regions for investors seeking growing dividends and yield. The universe of dividend-paying companies in Asia Pacific—and in particular China—has expanded significantly. Over 840 Chinese companies paid dividends in 2011, compared with about 240 companies in 1998. Total dividend payment increased from about US$8 billion in 1998 to more than US$72 billion.
The Matthews China Dividend strategy has been available to investors in the U.S. since 2009, and delivered a 3-year annualized return of 10.24% versus a benchmark return of 1.80%1. The UCITS- fund will follow the same investment approach and is managed by the same team of Yu Zhang, CFA, and Jesper Madsen, CFA. The same team also oversees the Matthews Asia Dividend strategy, which launched in 2006 in the U.S. and in 2010 as a Luxembourg-based UCITS- fund.
Yu Zhang, Lead Portfolio Manager comments:
“China’s capital markets initially attracted investors for the growth potential but the country’s equity markets have evolved significantly over the past 10 years such that they have become among the largest and fastest-growing markets in Asia in terms of dividend payments. We now have the ability to invest in a growing universe of dividend-paying companies offering both attractive current yields as well as the potential for future dividend growth.”
Jonathan Schuman, Head of Global Business Development adds:
“We believe dividends represent an important part of an investor’s total return and in today’s low yielding environment, there continues to be strong demand for funds that can deliver a higher level of income. We are therefore pleased to offer this new Fund which will invest in Chinese companies that have attractive dividend yields and the potential to grow their dividends over the long term. The expanding universe of Chinese dividend-paying companies presents new investment opportunities for those seeking to benefit not only from the potential of capital appreciation but also current and future income.
Matthews Asia has over 20 years of experience investing in Asia and we believe this focus gives us the ability to identify companies with strong business models and good growth prospects that can deliver sustainable dividend growth. The launch of the Matthews China Dividend Fund forms part of a broader strategic initiative to deliver our core capabilities to retail and institutional investors outside of the U.S.”
1Performance for the U.S.-domiciled Matthews China Dividend Fund as of 31/12/2012.
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 China Dividend Fund may vary from the U.S.-domiciled Matthews China Dividend 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$20.9 billion in assets under management as of December 31, 2012 and 13 investment strategies, Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit global.matthewsasia.com.
Emma Wallis / Marina Fraser
Tel. +20 7466 5050
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.