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 16/09/2021)


Price (USD)

(as of 16/09/2021)

$35.97 million

Fund Assets

(as of 31/08/2021)


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 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 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.

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

Fund Facts
Inception Date 30/06/2011
Fund Assets $35.97 million (31/08/2021)
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 31/03/2021 1.17% ( USD ) 1.11% ( GBP )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/08/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
8.69% 12.28% 26.79% 60.03% 12.37% 11.78% 9.88% 8.60% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
9.96% 9.60% 24.45% 53.95% 13.38% 13.49% 9.55% 7.82%
Matthews India Fund (GBP)
9.98% 15.51% 25.60% 54.72% 10.15% 10.71% 11.75% 10.22% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
11.13% 13.22% 23.53% 49.76% 11.16% 12.47% 11.42% 9.48%
As of 30/06/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
1.55% 9.41% 14.68% 68.93% 10.04% 11.11% 7.67% 7.67% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-1.12% 6.39% 12.28% 58.46% 11.73% 12.96% 6.86% 6.85%
Matthews India Fund (GBP)
3.87% 8.63% 12.94% 49.44% 8.10% 10.39% 9.23% 9.23% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
1.79% 6.39% 11.06% 42.15% 10.07% 12.08% 8.49% 8.49%
For the years ended December 31st
Name 2020 2019 2018 2017 2016 2015 2014 2013 2012
Matthews India Fund (USD)
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)
13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40% -4.70% 28.62%
Matthews India Fund (GBP)
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)
10.68% 4.30% -0.23% 29.51% 22.13% -1.02% 39.60% -6.59% 22.36%
For the period ended 30/06/2021
Name 2021 2020 2019 2018 2017 Inception Date
Matthews India Fund (USD)
68.93% -21.38% 0.32% 6.01% 19.90% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
58.46% -19.28% 9.04% 6.58% 23.73%
Matthews India Fund (GBP)
49.44% -18.65% 3.92% 4.65% 24.00% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
42.15% -17.23% 13.35% 5.08% 26.21%

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 31/08/2021)
Fund Benchmark
Number of Positions 57 101
Weighted Average Market Cap $53.8 billion $68.0 billion
Active Share 50.3 n.a.
P/E using FY1 estimates 30.9x 23.8x
P/E using FY2 estimates 23.9x 20.4x
Price/Cash Flow n.a. 16.4
Price/Book 4.6 3.6
Return On Equity 18.0 16.3
EPS Growth (3 Yr) 17.2% 12.9%

Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Factset Research Systems, Inc., Zephyr StyleADVISOR, Matthews Asia

Top 10 Holdings

(as of 31/08/2021)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 7.5
Reliance Industries, Ltd. Energy 6.5
Infosys, Ltd. Information Technology 6.1
ICICI Bank, Ltd. Financials 5.2
Bajaj Finance, Ltd. Financials 4.5
Housing Development Finance Corp., Ltd. Financials 3.5
Tata Consultancy Services, Ltd. Information Technology 3.4
Kotak Mahindra Bank, Ltd. Financials 2.9
Info Edge India, Ltd. Communication Services 2.9
Axis Bank, Ltd. Financials 2.8
TOTAL 45.3

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 31/08/2021)
  • 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 30 June 2021

For the first half of 2021, the Matthews India Fund returned 14.68% while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned 12.28%. For the quarter ending 30 June, the Fund returned 9.41%, while its benchmark returned 6.39%.

Market Environment:

Indian equity markets have been fairly resilient despite a vicious second COVID wave, punchy equity valuations and higher-than-normal inflation outlook. Overall economic sentiment at the start of the year was very robust, as consumer demand and industrial activity continued to recover from last year’s COVID-induced slowdown. Additionally, a pro-growth budget presented by India’s central government, with an emphasis on higher infrastructure spending in the coming years, helped boost consumer confidence. India’s central bank also continued with its accommodative monetary policy, despite inflationary pressures being visible across sectors. However, economic recovery was impaired as a second wave of COVID infections began to engulf India in April. The health impact of this second wave was far worse than the first wave, as it exposed the country’s inadequate health infrastructure, and consequently fatalities were much greater. The crisis began to ease somewhat after many state governments imposed localized lockdowns in the most affected cities and towns. While lockdowns in some parts of the country have continued, the month of June has seen a return to normalcy in mobility across the country.

Indian equities have provided positive returns over the last six months despite many adverse economic events. In part, this is because many Indians are diverting their financial savings from fixed deposits to equity markets given the low interest rates prevailing in the economy despite high inflation. As a result, the number of individual brokerage accounts have doubled in last 12 months.

Performance Contributors and Detractors:

For the first six months of the year, our strong stock selection in health care, information technology and consumer staples sectors contributed to performance. On the other hand, stock selection in financials, communication services and materials sectors detracted.

Security selection within the health care sector continued to be a bright spot. Laurus Labs, a mid-cap pharmaceutical company focused on producing medication targeting HIV disease treatment in poor countries in Africa, was a notable contributor to the Fund’s absolute and relative performance during the first half of the year. From being an API (active pharmaceutical ingredient) manufacturer, Laurus Labs has evolved into a fully vertically integrated manufacturer, which has helped it gain market share and improve its margins. Laurus Labs is also diversifying into other types of therapies in an effort to reduce its reliance on anti-virals, which we think is a much larger market and will likely allow the company to scale its business beyond current levels.

On the other hand, Bandhan Bank Ltd., a financial services company providing full service banking including microfinance products to traditionally underserved markets, detracted the most during the period. Bandhan Bank has had many external headwinds negatively impact its business in the last few years. However, despite the headwinds, Bandhan Bank continues to be a very well capitalized, profitable company. We expect the business will begin to normalize as COVID vaccination efforts gather steam and the impact of the pandemic starts to recede.

Notable Portfolio Changes:

We made a few changes to the portfolio in the second quarter, including initiating a position in Ramco Cements Ltd., one of southern India’s largest cement producers. Ramco Cements is expected to increase its capacity in the next three to six months. We believe the large capacity expansion makes the company very well positioned to benefit from the pick up in infrastructure spending and construction activity, which we anticipate will focus slightly more in southern India as compared to previous years. We expect the additional cash flow generated would be used to de-lever the balance sheet and to positively benefit its equity shareholders.

Given the negative impact the second wave of COVID has had on India’s economy in general, and many households in particular, we have taken a more conservative approach to portfolio positioning. We have opted to remain in liquid and cash-rich businesses rather than more levered businesses. As a consequence, we decided to exit some of our smaller financial holdings, including DCB Bank Ltd., where we believe credit quality has likely deteriorated and the road to recovery would be long.


While the second wave of COVID infections seems to have abated in India, there is already some indications of the potential for a third wave to start soon. It is also likely that in the near term, discretionary consumption may be reduced as household savings of many have been negatively impacted due to higher health care spending in recent months. However, as vaccination efforts in India continue to gather pace, we believe COVID’s impact on human health and India’s economy will continue to recede in the coming months.

Despite near-term COVID challenges, we remain optimistic about India’s cyclical recovery, aided by increased infrastructure spending and a likely pick up in private sector capital spending. We are also seeing signs of increased manufacturing activity in India and greater acceptance of the governments’ ”Make in India” initiative. We also anticipate that India’s central bank will continue with its accommodating monetary policy, even if inflation remains elevated.

Given the existing conditions, we will continue with our conservative approach to portfolio construction, which includes investing in businesses with strong balance sheets and cash flows, and that will benefit from cyclical economic recovery ahead.

Rolling 12 Month Returns For the period ended 30/06/2021 - I (Acc)
Name 2021 2020 2019 2018 2017 Inception Date
Matthews India Fund (USD)
68.93% -21.38% 0.32% 6.01% 19.90% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
58.46% -19.28% 9.04% 6.58% 23.73%
Matthews India Fund (GBP)
49.44% -18.65% 3.92% 4.65% 24.00% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
42.15% -17.23% 13.35% 5.08% 26.21%

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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