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Asia Growth

Matthews Asia Innovative Growth Fund

  • High-conviction, concentrated equity portfolio of innovative companies in Asia ex Japan
  • All-cap fundamental approach focused on companies with unique offerings that create or expand markets
  • Capitalizing on the new economy and the rising disposable income in Asia

23/03/2021

Inception Date

n.a.

YTD Return (USD)

(as of 13/04/2021)

$9.69

Price (USD)

(as of 13/04/2021)

$9.79 million

Fund Assets

(as of 31/03/2021)

Objective

Long-term capital appreciation

Strategy

The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets in companies Asia ex Japan that Matthews Asia believes are capable of growth based on innovation, which could be innovation in products or services or in other areas, such as processes, business models, management, use of technology, or approach to creating, expanding or servicing their markets.

Risks

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.

The risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 23/03/2021
Fund Assets $9.79 million (31/03/2021)
Base Currency USD
ISIN: LU2298459939 (USD) LU2298460192 (GBP)
Bloomberg Symbol MAIGIUA:LX (USD) MAIGIAG:LX (GBP)
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia - Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region
Fees & Expenses
Management Fee 0.75%

Performance

  • Monthly
  • Quarterly
As of 31/03/2021
  Average Annual Total Returns  
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Innovative Growth Fund (USD)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23/03/2021
MSCI All Country Asia ex Japan Index (USD)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.  
Matthews Asia Innovative Growth Fund (GBP)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23/03/2021
MSCI All Country Asia ex Japan Index (GBP)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.  
As of 31/03/2021
  Average Annual Total Returns  
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Innovative Growth Fund (USD)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23/03/2021
MSCI All Country Asia ex Japan Index (USD)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.  
Matthews Asia Innovative Growth Fund (GBP)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23/03/2021
MSCI All Country Asia ex Japan Index (GBP)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.  

Asia Innovative Growth Fund has commenced operations from 23 March 2021 and performance will not be shown until the fund has reached one year since inception.

Strategy Performance

  • Monthly
  • Quarterly
  • Rolling Returns
As of 31/03/2021
  Average Annual Total Returns  
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Innovators Strategy (USD)
-7.89% -0.71% -0.71% 102.51% 23.36% 23.76% 14.69% 6.93% 27/12/1999
MSCI All Country Asia ex Japan Index (USD)
-2.52% 2.75% 2.75% 57.77% 9.20% 14.12% 6.96% 7.32%  
 
 
 
 
 
 
As of 31/03/2021
          Average Annual Total Returns  
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Innovators Strategy (USD)
-7.89% -0.71% -0.71% 102.51% 23.36% 23.76% 14.69% 6.93% 27/12/1999
MSCI All Country Asia ex Japan Index (USD)
-2.52% 2.75% 2.75% 57.77% 9.20% 14.12% 6.96% 7.32%  
 
 
 
 
 
 
1 Month3 MonthsYTD1 Year3 Year5 Year10 YearSince Inception
Date Matthews Asia Innovators Fund MSCI All Country Asia ex Japan Index
1 Month 12.08% 6.84%
3 Months 29.06% 18.66%
YTD 86.72% 25.36%
1 Year 86.72% 25.36%
3 Year 25.35% 8.46%
5 Year 22.31% 13.90%
10 Year 14.87% 6.80%
Since Inception 7.05% 7.27%
 
For the years ended March 31st
Name 2021 2020 2019 2018 2017
Matthews Asia Innovators Strategy (USD)
102.51% 1.29% -8.48% 39.01% 11.27%
MSCI All Country Asia ex Japan Index (USD)
57.77% -13.18% -4.95% 26.16% 17.82%
 
 
 
 
 
 

An investment in Matthews Asia Funds is subject to risks. 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. All performance is in US$ and includes all dividends and interest accrued income, realized and unrealized gains or losses, accrued expenses, and are net of all brokerage commissions and execution costs and advisory and other fees. Individual account performance will vary.

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-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.

Index since inception value calculated from 31/12/1999.

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

Portfolio Characteristics

(as of 31/03/2021)
34
Number of Securities

Source: Brown Brothers Harriman (Luxembourg) S.C.A

30.2x
P/E using FY1 estimates
24.7x
P/E using FY2 estimates
$158.4 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 31/03/2021)
Name Sector Country % Net Assets
Bilibili, Inc. Communication Services China/Hong Kong 7.1
Sea, Ltd. Communication Services Singapore 5.3
Meituan Consumer Discretionary China/Hong Kong 5.2
HDFC Bank, Ltd. Financials India 5.2
Wuxi Biologics Cayman, Inc. Health Care China/Hong Kong 4.9
Tencent Holdings, Ltd. Communication Services China/Hong Kong 4.3
JD.com, Inc. Consumer Discretionary China/Hong Kong 4.3
Trip.com Group, Ltd. Consumer Discretionary China/Hong Kong 4.0
TAL Education Group Consumer Discretionary China/Hong Kong 3.9
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 3.8
TOTAL 48.0

Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.

Source: Brown Brothers Harriman (Luxembourg) S.C.A

Portfolio Breakdown (%)

(as of 31/03/2021)
  • Sector Allocation
  • Country Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Consumer Discretionary 28.5 18.2 10.3
Communication Services 17.8 11.6 6.2
Financials 14.9 18.3 -3.4
Health Care 12.4 4.7 7.7
Information Technology 7.9 23.5 -15.6
Consumer Staples 7.3 4.8 2.5
Energy 1.8 2.5 -0.7
Real Estate 1.7 4.1 -2.4
Industrials 1.4 5.4 -4.0
Materials 1.3 4.5 -3.2
Utilities 0.0 2.2 -2.2
Cash and Other Assets, Less Liabilities 5.0 0.0 5.0

Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.

Country Fund Benchmark Difference
China/Hong Kong 57.6 50.4 7.2
India 14.3 10.9 3.4
South Korea 6.0 15.0 -9.0
Singapore 5.3 2.5 2.8
Taiwan 3.8 15.4 -11.6
France 2.4 0.0 2.4
Thailand 2.2 2.1 0.1
Indonesia 2.0 1.4 0.6
Australia 1.5 0.0 1.5
Malaysia 0.0 1.5 -1.5
Philippines 0.0 0.7 -0.7
Cash and Other Assets, Less Liabilities 5.0 0.0 5.0

Not all countries are included in the benchmark index(es).

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 73.1 64.8 8.3
Large Cap ($10B-$25B) 17.8 19.1 -1.3
Mid Cap ($3B-$10B) 4.1 15.1 -11.0
Small Cap (under $3B) 0.0 1.0 -1.0
Cash and Other Assets, Less Liabilities 5.0 0.0 5.0

Source: FactSet Research Systems unless otherwise noted.
Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Portfolio Manager

Michael J. Oh, CFA photo
Michael J. Oh, CFA

Portfolio Manager

 

Performance figures discussed in the Fund Manager Commentary above reflect that of the Institutional Accumulation Class Shares and has been calculated in USD. Performance details provided for the Fund are based on a NAV-to-NAV basis, with any dividends reinvested, and are net of management fees and other expenses. Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information.

Information contained herein is sourced from Matthews Asia unless otherwise stated. The views and opinions in this commentary were as of the report date, subject to change and may not reflect the writer’s current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.

Investors should not invest in the Fund solely based on the information in this material alone. Please refer to the Prospectus for further details of the risk factors. 

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