Snapshot
- Seeks alpha in Asia’s emerging economies by capitalizing on the rising Asia consumer
- High-conviction equity portfolio focused on sustainable growth companies
- All-cap fundamental approach driven by on-the-ground, proprietary research
30/04/2010
Inception Date
-16.48%
YTD Return (USD)
(as of 28/06/2022)
$20.27
Price (USD)
(as of 28/06/2022)
$366.72 million
Fund Assets
(as of 31/05/2022)
Objective
Seeks to achieve 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 equities of companies located in Asia, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, Asia includes China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.
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, 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 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.
These and other risks associated with investing in the Fund can be found in the prospectus.
Fund Facts
| Inception Date | 30/04/2010 | |
| Fund Assets | $366.72 million (31/05/2022) | |
| Base Currency | USD | |
| ISIN: | LU0491816475 (USD) LU0594555756 (GBP) LU0491816129 (EUR) LU1576347550 (JPY) | |
| Bloomberg Symbol | MATAPTI:LX (USD) MATAPGI:LX (GBP) MAPTFIE:LX (EUR) MPACTIJ:LX (JPY) | |
| Benchmark | MSCI All Country Asia ex Japan Index | |
| Geographic Focus | Asia Ex Japan: Consists of all countries and markets in Asia, excluding Japan but including all developed, emerging and frontier countries and markets in Asia | |
Fees & Expenses
| Management Fee | 0.75% | |
| Total Expense Ratio As of 31/03/2022 | 0.90% ( USD ) 0.90% ( GBP ) 0.90% ( EUR ) 0.90% ( JPY ) | |
| Objective | Seeks to achieve 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 equities of companies located in Asia, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, Asia includes China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. |
| 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, 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 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 |
Performance
- Monthly
- Quarterly
- Calendar Year
- Rolling 12 Month
Returns
As of 31/05/2022
As of 31/03/2022
For the years ended December 31st
For the period ended 31/03/2022
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)Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 31/05/2022)-0.56%
Alpha
1.06
Beta
99.85%
Upside Capture
101.55%
Downside Capture
0.28
Sharpe Ratio
-0.09
Information Ratio
4.99%
Tracking Error
93.01
R²
Fund Risk Metrics are reflective of Class I USD ACC shares.
Sources: Zephyr StyleADVISOR
Top 10 Holdings
(as of 31/05/2022)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
- Country Allocation
- Asset Type Breakdown
- Market Cap Exposure
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Not all countries are included in the benchmark index(es).
Source: FactSet Research Systems.
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.
Ratings
(as of 31/05/2022)
CATEGORY: Asia ex-Japan Equity
| OVERALL | 4 stars |
| 3 YEAR | 3 stars |
| 5 YEAR | 4 stars |
| 10 YEAR | 4 stars |
Morningstar Analyst Rating
SquareMile Rating Report
FundCalibre.com
Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.
The Elite RatingTMsystem is proprietary to FundCalibre Ltd, but should not be taken as a recommendation.
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.
The Morningstar Analyst Rating™ is subjective in nature and reflects Morningstar's current expectations of future behavior of the fund. Morningstar does not guarantee that a fund will perform in line with its Rating. Likewise, the Rating should not be seen as a guarantee/assessment of the creditworthiness of a fund or its underlying securities and should not be used as the sole basis for making any investment decisions.
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
Sharat Shroff, CFA
Lead Manager
Sharat Shroff, CFA
Portfolio Manager
Sharat Shroff is a Portfolio Manager at Matthews Asia and manages the firm’s Pacific Tiger Strategy and co-manages the India Strategy. Prior to joining Matthews Asia in 2005, Sharat worked in the San Francisco and Hong Kong offices of Morgan Stanley as an Equity Research Associate. Sharat received a Bachelor of Technology from the Institute of Technology in Varanasi, India and an MBA from the Indian Institute of Management, in Calcutta, India. He is fluent in Hindi and Bengali.
Inbok Song
Lead Manager
Inbok Song
Portfolio Manager
Inbok Song is a Portfolio Manager at Matthews Asia and manages the firm’s Pacific Tiger Strategy. Prior to rejoining the firm in 2019, Inbok spent three years at Seafarer Capital Partners as a portfolio manager, the firm’s Director of Research and chief data scientist. Previously she was at Thornburg Investment Management as an associate portfolio manager. From 2007 to 2015, she was at Matthews Asia, most recently as a portfolio manager. From 2005 to 2006, Inbok served as an Analyst and Technology Specialist at T. Stone Corp., a private equity firm in Seoul, South Korea. From 2004 to 2005, she was a research engineer for Samsung SDI in Seoul. Inbok received both a B.A. and Masters in Materials Science and Engineering from Seoul National University. She received a Masters in International Management from the University of London, King’s College, and also an M.A. in Management Science and Engineering, with a concentration in finance from Stanford University. Inbok is fluent in Korean.
Winnie Chwang
Co-Manager
Winnie Chwang
Portfolio Manager
Winnie Chwang is a Portfolio Manager at Matthews Asia and manages the firm’s China Small Strategy and co-manages the China and Pacific Tiger Strategies. She joined the firm in 2004 and has built her investment career at the firm. Winnie earned an MBA from the Haas School of Business and received her B.A. in Economics with a minor in Business Administration from the University of California, Berkeley. She is fluent in Mandarin and conversational in Cantonese.
Andrew Mattock, CFA
Co-Manager
Andrew Mattock, CFA
Portfolio Manager
Andrew Mattock is a Portfolio Manager at Matthews Asia and manages the firm’s China and China Small Companies Strategies and co-manages the firm’s Pacific Tiger Strategy. Prior to joining the firm in 2015, he was a Fund Manager at Henderson Global Investors for 15 years, first in London and then in Singapore, managing Asia Pacific equities. Andrew holds a Bachelor of Business majoring in Accounting from ACU. He began his career at PricewaterhouseCoopers and qualified as a Chartered Accountant.
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.
The Markit iBoxx Asian Local Bond Index tracks the total return performance of a bond portfolio consisting of local-currency denominated, high quality and liquid bonds in Asia ex-Japan. The Markit iBoxx Asian Local Bond Index includes bonds from the following countries: China (on- and offshore markets), Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.
The J.P. Morgan Asia Credit Index (JACI) tracks the total return performance of the Asia fixed-rate dollar bond market. JACI is a market cap-weighted index comprising sovereign, quasi-sovereign and corporate bonds and is partitioned by country, sector and credit rating. JACI includes bonds from the following countries: China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
Commentary
Period ended 31 March 2022
For the quarter ending 31 March 2022, the Matthews Pacific Tiger Fund returned -10.51%, while its benchmark, the MSCI All Country Asia ex Japan Index, returned -7.95% over the same period.
Market Environment:
2022 got off to a choppy start in Asian markets, led by North Asian equities. The confluence of a spike in Covid cases and resulting policy of enforced lockdowns and uncertainties around ADR delisting dragged down Chinese equities which were the worst performing in the region. On the flip side, rate sensitive stocks powered the Singaporean and Indonesian financials to deliver strong absolute returns in the first quarter, while Energy was the best performing sector in the region.
Small caps managed to provide a bit of shelter although the returns were still negative during the quarter. Asian currencies remained somewhat resilient in the face of geopolitical concerns, rising rates in the US, and spiking energy prices.
Meanwhile, tourism- and consumption-oriented economies like Indonesia and Thailand are attracting foreign investor (FII) flows as the recovery from COVID-19 is starting to gain hold, and equity valuations in those countries remain relatively attractive. However, other countries like India have experienced FII outflows offset by increasing allocation to equities by domestic entities.
Performance Contributors and Detractors:
During the quarter, allocation and stock selection in India and Southeast Asia countries such as the Philippines and Indonesia contributed to relative performance, where we see sustained recovery signs in the domestic economy from the COVID-19. The largest contributor, PVR Limited, a leading film exhibition player in India, saw its share price surge after the company announced it is set to merge with Inox Leisure Limited to create the largest multiplex chain in India. Indonesia's largest automotive group, PT Astra International Tbk was another top contributor. PT Astra International Tbk continues to post strong earnings growth as demand for the automotive are recovered from the pandemic shock.
On the other hand, a combination of factors drove the negative stock selection effect during the quarter. In particular, the continued rotation from growth towards value stocks impacted IT related holdings like Tencent and Taiwan Semiconductor Manufacturing Company. Furthermore, the continuation of stringent COVID containment policies in China are hurting the earnings and cash flow prospects for several holdings in the portfolio like Meituan which was one of the leading detractors from relative performance. Meituan is a high-conviction holding and we believe that the recent increase in regulatory and compliance costs within the industry will increase the moat around their delivery business, while their offerings in travel, in-store marketing continue to strengthen.
The ongoing uncertainty around Chinese ADR’s also created volatility for several of the internet-oriented holdings in the portfolio causing an absolute decline in the net asset value of the portfolio. Post the quarter-end, there were some signs that US and Chinese authorities are looking to resolve their outstanding differences on the issue of auditing process.
Notable Portfolio Changes:
Over the quarter, we made a few changes as part of their efforts to position the portfolio for sustainable growth and at the same time to manage risks proactively, exiting a few positions by balancing between the progress in companies’ operational milestones and valuation. Kakaopay and Krafton are two examples. Compared to the demanding valuation, Kakaopay’s expected profitability path and Krafton’s newly launched game progress were delayed with weak visibility. In addition, we exited a solar glass maker, Xinyi Solar, due to its capital allocation decision. Corporate governance is the one of the most important criteria for the strategy and we believed that the capital allocation decision was unfavorable for the interest of the minority shareholders.
With some of the regulatory headwinds easing for internet platform companies in China, the team is looking to take advantage of the cheaper valuation for stocks like Meituan which have a dominant presence in their sector.
On the flip side, some of the Indian holdings were trimmed during the quarter as valuation multiples continue to expand.
Outlook:
Since the start of the year, fresh set of challenges are testing consumers and companies across Asia. Higher energy prices may start impacting corporate profitability and eroding consumer spending power if energy prices remain elevated for an extended period. In China, the uneven recovery from COVID-19 has delayed a recovery in consumption although the health of the consumer balance sheet remains strong, and the government is starting to offer subsidies to rejuvenate domestic spending. In other parts of Asia, the recovery from COVID-19 is continuing to gain traction and portfolio managers believe earnings may post strong growth in coming periods. Considering the volatility in stock prices, portfolio managers are encouraged by the combination of attractive valuations, and the prospects of steady growth across many parts of the region.
Rolling 12 Month Returns For the period ended 31/03/2022 - I (Acc)
Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg