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 14/04/2021)


Price (USD)

(as of 14/04/2021)

$29.01 million

Fund Assets

(as of 31/03/2021)


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 $29.01 million (31/03/2021)
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 31/03/2020 1.25% ( USD ) 1.25% ( GBP )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/03/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-0.05% 4.82% 4.82% 86.27% 5.87% 10.28% n.a. 6.88% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
2.04% 5.54% 5.54% 78.72% 9.40% 12.85% n.a. 6.36%
Matthews India Fund (GBP)
1.18% 3.97% 3.97% 67.12% 6.65% 11.27% n.a. 8.55% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
3.11% 4.39% 4.39% 60.56% 10.21% 13.81% n.a. 8.03%
As of 31/03/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-0.05% 4.82% 4.82% 86.27% 5.87% 10.28% n.a. 6.88% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
2.04% 5.54% 5.54% 78.72% 9.40% 12.85% n.a. 6.36%
Matthews India Fund (GBP)
1.18% 3.97% 3.97% 67.12% 6.65% 11.27% n.a. 8.55% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
3.11% 4.39% 4.39% 60.56% 10.21% 13.81% n.a. 8.03%
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 31/03/2021
Name 2021 2020 2019 2018 2017 Inception Date
Matthews India Fund (USD)
86.27% -35.65% -0.99% 12.18% 22.51% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
78.72% -31.53% 7.00% 11.64% 25.21%
Matthews India Fund (GBP)
67.12% -31.83% 6.49% -0.49% 41.30% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
60.56% -28.25% 16.20% -0.74% 43.71%

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 31/03/2021)
Number of Securities

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

P/E using FY1 estimates
P/E using FY2 estimates
$46.4 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 31/03/2021)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 8.3
Reliance Industries, Ltd. Energy 7.1
Infosys, Ltd. Information Technology 5.6
ICICI Bank, Ltd. Financials 5.3
Housing Development Finance Corp., Ltd. Financials 4.2
Kotak Mahindra Bank, Ltd. Financials 3.5
Tata Consultancy Services, Ltd. Information Technology 3.2
Info Edge India, Ltd. Communication Services 3.2
Bajaj Finance, Ltd. Financials 2.7
Bandhan Bank, Ltd. Financials 2.6
TOTAL 45.7

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
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 35.4 34.7 0.7
Information Technology 16.4 14.4 2.0
Consumer Staples 10.6 9.5 1.1
Consumer Discretionary 9.2 7.5 1.7
Health Care 8.4 4.3 4.1
Energy 7.4 11.0 -3.6
Industrials 6.7 4.6 2.1
Communication Services 3.9 2.7 1.2
Materials 1.4 8.4 -7.0
Utilities 0.0 2.7 -2.7
Real Estate 0.0 0.2 -0.2
Cash and Other Assets, Less Liabilities 0.6 0.0 0.6

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 48.9 65.8 -16.9
Large Cap ($10B-$25B) 7.4 19.5 -12.1
Mid Cap ($3B-$10B) 16.1 14.0 2.1
Small Cap (under $3B) 26.9 0.6 26.3
Cash and Other Assets, Less Liabilities 0.6 0.0 0.6

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

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

Overall Morningstar RatingTM is reflective of the USD Accumulation 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 December 2020

For the year ending 31 December 2020, the Matthews India Fund returned 18.20%, while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned 13.92%. For the fourth quarter, the Fund returned 23.73%, while its benchmark returned 24.97%.

Market Environment:

Indian equities suffered large drawdowns early in the year, then rebounded quickly. Markets were down sharply in March amid fears about the pandemic’s economic impact. The government took unprecedented steps to slow the spread of the virus by ordering a nationwide lockdown for 21-days starting on March 25. In addition, the Finance Minister announced significant stimulus early in the year in hopes of aiding low-income households while in lockdown. The Reserve Bank of India took significant steps as well to lower the cost of capital by reducing repurchase agreement (repo) rates and by injecting surplus liquidity to keep the strength of the financial system intact. In the second and third quarters of 2020, Indian shares soared as lockdown restrictions were gradually eased and economic activity started to normalize.

Although its economy has been slow to recover, India’s latest economic data suggests that activity has returned to near pre-pandemic levels. Local sentiment is improving. Economic restrictions in large urban sectors are gradually easing and we are seeing near-normalization of mobility and economic activity. For example, restaurants and bars in Mumbai were allowed to open in early October. Government fiscal accounts are outperforming estimates as tax receipts are coming in higher than expected. In addition, economic output as measured by Purchasing Managers’ Index (PMI) composite data seems well placed in expansionary territory. Rural India has done substantially better in the last 12 months on back of robust rainfall in the last two monsoons, helping to cushion the negative impact of COVID on India as a whole.

Performance Contributors and Detractors:

Stock selection and an overweight to small-cap stocks was a notable contributor to performance in the year. India has a large, rich universe of small companies with low analyst coverage, creating opportunities to generate alpha via active stock selection. What’s more, as economic recovery began to broaden out, smaller companies began to participate more in the market rally. On the other hand, stock selection and allocation effects among mega-cap stocks was neutral to performance in the year. But we continue to see long-term opportunity among select mega-cap companies, particularly as India continues to move toward a more innovation-based economy, where size and scale are often rewarded in terms of digital platforms and connectivity.

From a sector perspective, stock selection in health care, communication services and industrials contributed to performance, while stock selection in financials, consumer staples and consumer discretionary detracted.

Among individual stocks, a contributor was Larsen & Toubro Infotech (LTI). LTI provides information technology related services and solutions to global clients. Given business disruption  caused by the pandemic, there has been a rapid adoption of technology by corporations globally to make their businesses more digital and increase their online operations. Reduced revenues have put tremendous pressure to cut cost again by adopting more productive and efficient ways of doing business, all of which require greater use of technology in day to day operations. Consequently, we expect technology spending to accelerate, benefitting providers like LTI. LTI is also much smaller in size compared to industry peers, hence our expectation is that they may continue to grow faster than the industry. Meanwhile, Shriram City Union Finance, a non-banking financial that is dependent on capital markets and on banks for funding, detracted. Shriram was negatively impacted as liquidity in small and micro-cap companies dried up during March and April. We continue to like this name given management continued to improve their financial performance on back of a notable improvement in credit quality. The company is well capitalized, with enough liquidity on the balance sheet, and it is one of the lowest valuation financial service names in the portfolio.

Notable Portfolio Changes:

We made a few changes to the portfolio across different sectors, including health care, consumer discretionary, financials and IT services.

Within consumer discretionary, we added Bosch India Limited, a supplier of fuel ignition systems to commercial and passenger vehicles in India. Bosch’s business is likely to be positively impacted in our view on back of a cyclical upturn expected in the auto segment in the country. Bosch has been undergoing a restructuring, limiting its margins, but we think it is almost complete and thus believe its revenue growth may lead to substantially higher growth in earnings.

We exited Syngene, a Contract Research Organization (CRO), which we held in the portfolio for over two years. While we believe there is substantial opportunity for growth for many years to come, its stock outperformed sharply during the last 12 months and became excessively overpriced. As we do not think the company’s revenue growth will change substantially, we exited our position as we deemed the risk reward was adverse to continue to remain invested.


Entering into 2021, India’s financial system is seeing signs of reopening with loan growth rebounding and credit quality improving. The stronger current account and overall balance of payments bodes well for the Indian rupee and a potential tailwind for foreign investors. Equity valuations are at or slightly above historical averages; however, we believe that current valuations may not fairly incorporate a lower cost of capital making seemingly high valuations actually much more reasonable. In our view, India is sitting at the cusp of an earnings recovery. The overwhelming majority of companies are delivering earnings in excess of expectations; too many companies to count have taken prudent cost-cutting measures to shore up margins.

India’s central government is taking substantial steps to create more manufacturing jobs in the country. It is offering financial incentives to global corporates for setting up factories in the country, as well as changing its legal framework that governs labor laws in the country to make it much easier to do business in India. Corporates across different sectors are also reporting heightened interest in procuring raw materials and finished products from India as part of an increasing wave of China-plus-India supply chain strategy being considered by corporates globally. We believe the change in external environment combined with steps taken by the government has the potential to create positive surprise on India’s economic growth over the next 24-36 months.

Rolling 12 Month Returns For the period ended 31/03/2021 - I (Acc)
Name 2021 2020 2019 2018 2017 Inception Date
Matthews India Fund (USD)
86.27% -35.65% -0.99% 12.18% 22.51% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
78.72% -31.53% 7.00% 11.64% 25.21%
Matthews India Fund (GBP)
67.12% -31.83% 6.49% -0.49% 41.30% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
60.56% -28.25% 16.20% -0.74% 43.71%

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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