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Matthews Asia Renames Fund to Matthews Asia ex Japan Total Return Equity Fund

Matthews Asia announces the renaming of the US$565.94m Matthews Asia ex Japan Dividend Article 8 UCITS Fund––reflecting the Fund’s track record in generating total return over the long term.

Matthews Asia announces the renaming of the US$565.94m Matthews Asia ex Japan Dividend Article 8 UCITS Fund––reflecting the Fund’s track record in generating total return over the long term.

London, 17th February 2023: Matthews Asia has announced the renaming of the Matthews Asia ex Japan Dividend Fund (LU1311311358 (USD), LU1311311515 (GBP), LU1311311788 (EUR)) to the Matthews Asia ex Japan Total Return Equity Fund. The new name better reflects the total return objective of the strategy. Run by Lead Portfolio Managers Kenneth Lowe, CFA, and Sharat Shroff, CFA, the Fund’s investment philosophy and process remain unchanged. Management fees will also remain the same.

Since inception in November 2015, the Fund has sought to deliver attractive total return through capital appreciation and current income with a portfolio of Asian growth companies that pay a steady or growing dividend. The team use active, on-the-ground research to find dividend-paying companies across a broad range of sectors and countries, including the fast-growing markets in emerging Asia.

The Fund balances dividend yield and growth based on market conditions. It invests in companies in their early stages of growth with low payout ratios to leading quality companies with strong cash flow generation, as well as cyclical companies. This flexible exposure has offered investors participation in both growth and value markets and has been key to smoothing portfolio returns over the long term.

Since inception to 31 January 2023, the Fund generated an average annual return of 10.52%, outperforming the MSCI All Country Asia ex Japan Index on average by 3.82% per year.1 Capital appreciation accounted for 83% of the cumulative total return, with the remaining 41% deriving from income (see Figure 1).  The biggest driver of returns was stock selection, and within this around 67% of the Fund’s total return can be attributed to stock selection within small- and mid-caps. 

Kenneth Lowe, CFA, Co-Lead Manager: “Dividends continue to comprise a significant portion of long-term total return in Asian equities. With a benchmark-agnostic philosophy and an active, bottom-up approach to stock picking, we aim to offer investors a core Asia portfolio that can capture the region’s growth while also potentially mitigating some of its volatility.”

Neil Steedman, Head of EMEA and Asia Distribution: “We are pleased that the new Fund name reflects its impressive track record of generating attractive total return. The Matthews Asia ex Japan Total Return Equity Fund offers differentiated exposure to one of the world’s fastest growing regions.  Many of our existing clients use the Fund as their core Asia equity solution and we believe the name change better reflects this.”

Asia ex Japan Total Return Equity Fund vs. MSCI All Country Asia ex Japan Index Return Breakout



ROLLING 12 Months Returns
For the period ended 31/12/2022

Name

2022

2021

2020

2019

2018

INCEPTION DATE

Matthews Asia ex Japan Total Return Equity Fund (USD)

-26.05%

3.96%

51.86%

16.73%

-12.37%

30/11/2015

MSCI All Country Asia ex Japan Index (USD)

-19.36%

-4.46%

25.36%

18.52%

-14.12%

 

 

Source: Brown Brothers Harriman (Luxembourg) S.C.A.
Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. Performance data has been calculated in the respective currencies stated above, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. All performance quoted represents past performance and is not indicative of future performance. Investors may not get back the full amount invested. 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. Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.

Media Contacts: 

Quill PR
Andreea Caraveteanu 
Tel. +44 07902 142 991  


1 Data as of 31 January 2023, in USD, I (Acc) for the Fund. 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 the original cost. Current performance may be lower or higher than performance shown. Investors investing in Funds denominated in non-USD should be aware of the risk of currency exchange fluctuations that may cause a loss of principal. Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. Source: Brown Brothers Harriman (Luxembourg) S.C.

 

About Matthews Asia

Since 1991, we have focused our efforts and expertise within Asia and the emerging markets, investing through a variety of market environments. As an independent, privately owned firm, Matthews Asia is the largest dedicated Asia investment specialist in the United States. With approximately US$14.2 billion in assets under management as of January 31, 2023, 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. 

 

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.