Asia Growth

Matthews India Fund

  • Unconstrained all-cap strategy focused on companies with a sustainable competitive edge and pricing power, which are able to perform throughout economic cycles
  • Fundamental bottom-up approach to seek well-run entrepreneurial companies with sustainable organic growth and trustworthy managements


Inception Date


YTD Return (USD)

(as of 28/06/2022)


Price (USD)

(as of 28/06/2022)

$25.26 million

Fund Assets

(as of 31/05/2022)


Seeks to achieve long term capital appreciation.


The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in publicly traded common stocks, preferred stocks and convertible securities of companies located in India, and may invest the remainder of its net assets in other permitted assets on a worldwide basis.


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, emerging and frontier market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation, which may adversely affect the value of the Fund's assets. The Fund invests in holdings denominated in foreign currency, 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. Investments in a single-country fund may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 30/06/2011
Fund Assets $25.26 million (31/05/2022)
Base Currency USD
ISIN: LU0594557885 (USD) LU0594558263 (GBP)
Benchmark S&P Bombay Stock Exchange 100 Index
Geographic Focus India
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2022 1.00% ( USD ) 1.00% ( GBP )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/05/2022
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-4.60% -5.69% -12.11% -3.49% 8.30% 6.29% 10.74% 6.50% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-4.87% -3.11% -7.45% 1.14% 9.39% 8.61% 11.07% 6.48%
Matthews India Fund (GBP)
-4.85% 0.32% -5.84% 8.76% 8.23% 6.72% 13.09% 8.88% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-5.18% 2.82% -0.72% 13.87% 9.42% 9.08% 13.31% 8.86%
As of 31/03/2022
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
0.09% -6.72% -6.72% 10.35% 9.77% 8.00% 9.77% 7.20% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
3.53% -1.10% -1.10% 16.28% 12.48% 11.19% 9.91% 7.24%
Matthews India Fund (GBP)
2.10% -4.17% -4.17% 15.77% 9.66% 6.92% 11.98% 9.20% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
5.52% 1.88% 1.88% 22.14% 12.06% 10.17% 12.09% 9.27%
For the years ended December 31st
Name 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Matthews India Fund (USD)
24.00% 18.20% 2.66% -9.78% 37.88% -3.05% -2.73% 54.46% -4.82% 28.80%
S&P Bombay Stock Exchange 100 Index (USD)
24.08% 13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40% -4.70% 28.62%
Matthews India Fund (GBP)
25.60% 14.19% -0.37% -4.76% 25.78% 16.54% 2.28% 63.93% -6.94% 23.43%
S&P Bombay Stock Exchange 100 Index (GBP)
25.15% 10.68% 4.30% -0.23% 29.51% 22.13% -1.02% 39.60% -6.59% 22.36%
For the period ended 31/03/2022
Name 2022 2021 2020 2019 2018 Inception Date
Matthews India Fund (USD)
10.35% 86.27% -35.65% -0.99% 12.18% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
16.28% 78.72% -31.53% 7.00% 11.64%
Matthews India Fund (GBP)
15.77% 67.12% -31.83% 6.49% -0.49% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
22.14% 60.56% -28.25% 16.20% -0.74%

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

Since inception performance for share classes with less than one year of history represents actual performance, not annualised. In addition, for share classes less than a year old, Year to Date Return is calculated since inception. Where no past performance is shown there was insufficient data available in that year to provide performance.

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.

Portfolio Characteristics

(as of 31/05/2022)
Fund Benchmark
Number of Positions 51 101
Weighted Average Market Cap $49.7 billion $65.6 billion
Active Share 50.2 n.a.
P/E using FY1 estimates 22.4x 19.8x
P/E using FY2 estimates 18.3x 17.2x
Price/Cash Flow n.a. 15.9
Price/Book 3.8 3.4
Return On Equity 15.5 17.2
EPS Growth (3 Yr) 3.3% 21.1%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 31/05/2022)
Upside Capture
Downside Capture
Sharpe Ratio
Information Ratio
Tracking Error

Fund Risk Metrics are reflective of Class I USD ACC shares.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 31/05/2022)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 6.7
Infosys, Ltd. Information Technology 6.1
ICICI Bank, Ltd. Financials 6.0
Reliance Industries, Ltd. Energy 5.8
Tata Consultancy Services, Ltd. Information Technology 4.3
Kotak Mahindra Bank, Ltd. Financials 3.7
Bandhan Bank, Ltd. Financials 3.7
Shriram City Union Finance, Ltd. Financials 3.4
Hindustan Unilever, Ltd. Consumer Staples 3.2
Bajaj Finance, Ltd. Financials 3.1
TOTAL 46.0

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 31/05/2022)
  • Sector Allocation
  • Market Cap Exposure

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

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.


  • 3 YEAR
  • 5 YEAR
  • 10 YEAR

Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.

Overall Morningstar RatingTM is reflective of the noted share class. Fund ratings represent an opinion only and are not a recommendation to buy or sell any fund. Copyright ©2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is provided for reference purposes only.

The Overall Morningstar®️ Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.

Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Portfolio Managers

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Lead Manager

Sharat  Shroff, CFA photo
Sharat Shroff, CFA



Period ended 31 March 2022

For the first quarter of the year, the Fund returned -6.72%, while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned -1.10% over the same period.

Market Environment:

India is enduring an acceleration of headwinds most notably related to rising global inflation and the U.S. Federal Reserve’s monetary tightening in response to it. So far India’s central bank has maintained its accommodative policy but we anticipate that will have to change. With China’s COVID lockdowns continuing to impact supply chains, inflation for now seems to be on the front foot. More directly for a major energy importer like India, the surge in oil prices resulting from Russia’s invasion of Ukraine, is a material negative. Higher energy prices feed into higher inflation which in turn creates a drag on consumption and growth.

While the environment is challenging, India has two positives in its favor. One is the recovery in its banking sector, which is now well capitalized to deal with any adverse credit issues. The other is the fast growth of high-value items like engineering goods within India’s exports. This is helping India to diversify away from services and commodities exports and counter current account-deficit pressures from the high oil-price environment.

Performance Contributors and Detractors:

The portfolio’s lack of exposure to utilities and underweight in energy and materials sectors were among the biggest detractors to relative performance. We have historically not focused on these sectors given our growth-orientated strategy and all three areas benefited from the upswing in commodity prices.

Our allocation and stock selection within health care also detracted from performance. More specifically, Neuland Laboratories Limited, a small-cap active pharmaceutical ingredient (API) manufacturer, declined the most, leading to a drag experienced in the sector. The company’s customers are generally small biotech firms. Neuland’s clients destocked inventory last year, leading to slower-than-expected growth for the company. Further, high inflation in certain chemicals has meant pressure on gross margins for Neuland. We expect both of these headwinds to be transitory and still view Neuland as a fundamentally sound business.

On the other hand, the financials sector contributed the most to the portfolio’s relative performance and our stock selection within financials partly offset the negative attribution from other sectors. Consumer discretionary was also a significant contributor, helped by our stock selection. Among individual holdings, Shankara Building Products and Lemon Tree Hotels were among the top performers, aided by recovering consumer demand. In financials, Bandhan Bank delivered strong gains.  

Notable Portfolio Changes:

During the quarter, we reduced our holdings in information technology. Companies in the IT sector were generally insulated from supply chain challenges faced by other sectors. Revenue growth has been robust in the sector amid mass adoption of digital services and valuations have substantially moved past long-term averages, particularly among mid-caps. We believe accelerated monetary policy tightening is going to have a negative impact on technology spend globally and this in turn makes risk-reward less enticing in IT. Positions we closed in the quarter included Mindtree Ltd., an IT and consulting company, and IndiaMART InterMESH Ltd., an e-commerce platform.

After spending the past couple of years replenishing provisions to withstand credit quality issues emanating from COVID-related disruption to businesses and retail borrowers, we think the underlying profitability of the financial services sector is set to emerge. Given current valuations, we think risk-reward is highly favorable in the sector. Consequently, we added to our holdings in Bandhan Bank and Axis Bank. We also initiated a new position in Cholamandalam Investment and . Cholamandalam is part of Murugappa Group which has a reputation for strong corporate governance. Earlier this year, the Group disclosed a strategy to diversify Cholamandalam’s lending business into newer verticals and Cholamandalam also announced it was acquiring a payments player. Both of these strategic initiatives position the firm well for sustained growth in coming years.


Higher oil prices will mean inflation is going to edge up in India and this could lead to a worse than anticipated current account shortfall. Historically, such an environment has led to heightened rupee volatility. We don’t expect that to happen this time as India has adequate foreign reserves to meet external payments and inflation is more of a global issue compared to being more India specific in the past. However, the Reserve Bank of India is behind the monetary policy-normalization policies of other major emerging markets, including Brazil and Mexico, and we expect the central bank to begin to tighten. As a result, we think cost of capital in India is going to move higher in the coming 12 months which doesn’t bode well for equity valuations.

Amid macro headwinds, we remain confident in the opportunities that exist among Indian corporates. We think capital goods and the industrials sector will see a significant uptick in activity in the coming 12 months, driven by a recovery in government infrastructure spending and private capital expenditure. We also see an improving outlook for manufactured exports from India.


Rolling 12 Month Returns For the period ended 31/03/2022 - I (Acc)
Name 2022 2021 2020 2019 2018 Inception Date
Matthews India Fund (USD)
10.35% 86.27% -35.65% -0.99% 12.18% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
16.28% 78.72% -31.53% 7.00% 11.64%
Matthews India Fund (GBP)
15.77% 67.12% -31.83% 6.49% -0.49% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
22.14% 60.56% -28.25% 16.20% -0.74%

Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg


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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