Asia Growth

Matthews Pacific Tiger Fund

  • 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


Inception Date


YTD Return (USD)

(as of 16/09/2021)


Price (USD)

(as of 16/09/2021)

$529.21 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 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.


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 30/04/2010
Fund Assets $529.21 million (31/08/2021)
Base Currency USD
ISIN: LU0491816475 (USD) LU0594555756 (GBP) LU0491816129 (EUR) LU1576347550 (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 31/03/2021 1.04% ( USD ) 1.05% ( GBP ) 0.92% ( EUR ) 1.05% ( JPY )


  • 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 Pacific Tiger Fund (USD)
0.87% -3.08% 1.92% 22.16% 12.01% 10.86% 8.51% 8.61% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
2.32% -5.38% 0.87% 17.92% 10.55% 11.75% 7.73% 7.45%
Matthews Pacific Tiger Fund (GBP)
2.09% -0.29% 1.01% 18.08% 9.80% 9.78% 10.36% 10.26% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
3.37% -2.27% 0.19% 14.72% 8.46% 10.65% 9.56% 8.76%
Matthews Pacific Tiger Fund (JPY)
1.03% -2.91% 8.63% 26.66% 11.70% n.a. n.a. 11.89% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
2.42% -4.98% 7.33% 22.16% 10.21% n.a. n.a. 11.22%
Matthews Pacific Tiger Fund (EUR)
1.25% -0.08% 5.71% 23.22% n.a. n.a. n.a. 11.70% 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
2.78% -2.00% 4.55% 19.47% n.a. n.a. n.a. 10.12%
As of 30/06/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
1.44% 5.95% 6.67% 47.08% 13.60% 13.52% 8.41% 9.20% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-0.09% 3.66% 6.51% 40.03% 12.54% 14.82% 7.34% 8.09%
Matthews Pacific Tiger Fund (GBP)
3.75% 5.18% 5.11% 30.13% 11.60% 12.79% 9.99% 10.86% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
2.81% 3.53% 5.40% 25.25% 10.85% 14.07% 8.96% 9.45%
Matthews Pacific Tiger Fund (JPY)
2.25% 5.75% 14.40% 50.88% 13.56% n.a. n.a. 13.77% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
1.37% 4.12% 14.50% 44.06% 12.62% n.a. n.a. 13.41%
Matthews Pacific Tiger Fund (EUR)
4.09% 4.57% 10.12% 38.50% n.a. n.a. n.a. 14.81% 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
3.01% 2.73% 9.90% 32.62% n.a. n.a. n.a. 13.54%
For the years ended December 31st
Name 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Matthews Pacific Tiger Fund (USD)
30.48% 11.18% -10.71% 39.47% -0.29% -1.91% 11.22% 4.86% 18.65% -12.40%
MSCI All Country Asia ex Japan Index (USD)
25.36% 18.52% -14.12% 42.08% 5.76% -8.90% 5.11% 3.34% 22.70% -17.07%
Matthews Pacific Tiger Fund (GBP)
25.96% 7.87% -5.71% 27.14% 19.96% 3.14% 18.00% 2.56% 13.54% n.a.
MSCI All Country Asia ex Japan Index (GBP)
21.49% 13.94% -8.78% 29.78% 26.15% -3.63% 11.65% 1.42% 17.31% n.a.
Matthews Pacific Tiger Fund (JPY)
23.94% 9.79% -12.83% n.a. n.a. n.a. n.a. n.a. n.a. n.a.
MSCI All Country Asia ex Japan (JPY)
19.10% 17.39% -16.36% n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Matthews Pacific Tiger Fund (EUR)
19.40% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
MSCI All Country Asia ex Japan Index (EUR)
15.01% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
For the period ended 30/06/2021
Name 2021 2020 2019 2018 2017 Inception Date
Matthews Pacific Tiger Fund (USD)
47.08% -2.00% 1.70% 10.76% 16.09% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
40.03% 1.97% -0.18% 10.21% 27.06%
Matthews Pacific Tiger Fund (GBP)
30.13% 1.36% 5.36% 9.32% 20.13% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
25.25% 5.03% 3.55% 8.43% 30.76%
Matthews Pacific Tiger Fund (JPY)
50.88% -1.98% -0.98% 9.41% n.a. 27/03/2017
MSCI All Country Asia ex Japan (JPY)
44.06% 2.11% -2.90% 8.64% n.a.
Matthews Pacific Tiger Fund (EUR)
38.50% -0.61% n.a. n.a. n.a. 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
32.62% 3.39% n.a. n.a. n.a.

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 74 1,199
Weighted Average Market Cap $132.9 billion $157.4 billion
Active Share 67.8 n.a.
P/E using FY1 estimates 20.8x 14.1x
P/E using FY2 estimates 19.8x 13.1x
Price/Cash Flow 17.8 9.9
Price/Book 3.9 1.9
Return On Equity 15.4 13.4
EPS Growth (3 Yr) 17.5% 16.5%

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 Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 6.1
Samsung Electronics Co., Ltd. Information Technology South Korea 4.6
Tencent Holdings, Ltd. Communication Services China/Hong Kong 4.5
Alibaba Group Holding, Ltd. Consumer Discretionary China/Hong Kong 3.1
AIA Group, Ltd. Financials China/Hong Kong 2.8
Hong Kong Exchanges & Clearing, Ltd. Financials China/Hong Kong 2.2
NAVER Corp. Communication Services South Korea 2.2
Central Pattana Public Co., Ltd. Real Estate Thailand 2.1
Tata Power Co., Ltd. Utilities India 2.0
Wuxi Biologics Cayman, Inc. Health Care China/Hong Kong 2.0
TOTAL 31.6

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
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure

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

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

Asset Type Fund
Common Equities and ADRs 98.0
Cash and Other Assets, Less Liabilities 2.0

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.


  • 3 YEAR
  • 5 YEAR
  • 10 YEAR
(as of 03/02/2021)

View the Report

(as of 29/07/2021)

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.

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 photo
Sharat Shroff, CFA

Lead Manager

Inbok  Song photo
Inbok Song

Lead Manager

Winnie  Chwang photo
Winnie Chwang



Period ended 30 June 2021

For the first half of 2021, the Matthews Pacific Tiger Fund returned 6.67%, while its benchmark, the MSCI All Country Asia ex Japan Index, returned 6.51% over the same period. For the quarter ending 30 June, the Fund returned 5.95%, while the benchmark returned 3.66%.

Market Environment:

The debate around pricing pressures manifesting into higher inflationary expectations continues to have an influence on Asian equities along with other factors like regulatory changes, and the evolution of corporate earnings. The regulatory developments in China present some uncertainty even as the government is trying to grapple with a variety of issues like anti-monopoly, data privacy, and welfare rights (especially for workers in the gig economy) that stem from the emergence of platform type business models.

The MSCI Asia ex Japan Growth and Value indices were about neck-and-neck in the second quarter, both gaining about 3% after Value outperformed growth in the first quarter. Small caps outperformed the large caps for the fifth consecutive quarter, reflecting investor optimism towards a broadening in economic recovery.

For the region, earnings have generally been revised upwards since the start of the year led by South Korea and Taiwan, although COVID-impacted regions like Indonesia and Philippines have seen some retracement in forward expectations. Sectors like industrials and materials have been the best performing year to date, as investors anticipate a reflationary environment to favorably impact earnings.

Asian currencies depreciated against the U.S. dollar during the first half but in an orderly way, even as nominal U.S. yields are starting to move higher, reflecting the buildup of foreign reserves albeit weaker fiscal positions stemming from loss of economic activity.

Contributors and Detractors:

Stock selection in South Korea was a contributor to performance, especially within the portfolio’s industrial holdings, such as HMM Co.. South Korean industrial shipping company HMM has performed well throughout the first half of the year given its restructuring efforts during the industry’s consolidation, which set up the company to be well positioned to enjoy a positive operating environment. In addition, stock selection in the IT sector in Taiwan and the utilities sector such as Tata Power Co. in India and ENN Energy Holdings in China contributed positively. Tata Power Co. and ENN Energy Holdings both have leading positions in clean energy utilities such as solar power and natural gas distribution. In particular, China’s ENN Energy benefited from the continued recovery of the industrial demand in the country combined with the government’s efforts to reduce its carbon footprint in the coming decades.

On the other hand, domestically oriented holdings in Southeast Asia, including the Philippines and Indonesia, were detractors. These two countries’ recovery from the pandemic has taken a longer path. Thus, traffic to the Philippines’ SM Prime Holdings’ shopping malls and the loan demand for Bank Central Asia in Indonesia have not fully recovered, and uncertain near term-prospects dragged both stock’s performance. Additionally, the portfolio’s internet holdings in China, including Alibaba Group Holdings and Beijing Kuaishou Technology Co., detracted from performance amid a changing operational environment as competitive and regulatory pressures continue to intensify. While both Alibaba and Kuaishou are delivering strong execution in their own rights, the changing landscape would mean that they need to invest more, and near-term profitability may be impacted.

Notable Portfolio Changes:

As part of our continuous efforts to position the portfolio towards durable earnings growth, we made a few changes, especially in the industrial sector. We rotated capital from Weichai Power Co., a heavy duty truck manufacturer in China, and initiated a new position in Shenzhen Inovance Technology Co., an industrial automation component manufacturer. Although both Weichai and Shenzhen Inovance are leaders in their respective industries, we view the long-term market share gain potential of Inovance with a strong track record of the management team to be better.

We also rotated capital from South Korean utility company Korea Electric Power Corporation (KEPCO) and initiated a position in Doosan Bobcat Inc., a leading construction equipment company in South Korea gaining market share in the U.S. and Europe. In the past, Bobcat has shown strong execution capability in integrating its acquisition and expanded distribution network in developed countries. Compared to KEPCO, where our expected milestone of the electricity tariff faced political challenges, Bobcat’s prospects are expected to be better as they start to display new product development capability in addition to its channel expansion.


Looking ahead, several crosscurrents are likely to have an impact on Asian equities in the near to medium term. These crosscurrents may affect the evolution of earnings across the region, especially as the monetary and fiscal policy environment continues to unfold in China, and as inflationary pressures evolve in coming periods.

One of the biggest unanswered questions concerns pricing pressures, some of which reflect consumer demand that is running ahead of constrained supply chains. While the consumer demand recovery has been impressive, it is quite likely that the pattern of consumption will shift towards personal experiences. As the pandemic continues to abate, it is also possible that labor and other transportation-related bottlenecks will further ease (barring further interruptions from the coronavirus).

That being said, there are structural changes in China’s industrial landscape that might continue to have lasting impact on the global economy. China’s authorities continue to impose stricter environmental regulations on polluting sectors, and are encouraging a shift towards higher value-added production. Furthermore, Chinese entrepreneurs may be hesitant in committing significant CapEx considering the uncertainty from tariffs and duties. While this may present an opportunity for an augmentation in supply chains elsewhere, the process may not be smooth and there could be intermittent mismatch between supply and demand.

We believe the core of the portfolio continues to be invested in businesses capable of delivering durable earnings growth accompanied by solid cash flow. There are many subsectors such as housing in India and digital e-commerce in Southeast Asia which may have long runways for growth. In addition, we continue to look for Chinese businesses that are taking long strides in closing the technology gap with the West, and may start to substitute imports. The opportunity set continues to broaden and widen, and the portfolio team remains focused on finding uncorrelated and diversified long-term growth in Asian equities.

Rolling 12 Month Returns For the period ended 30/06/2021 - I (Acc)
Name 2021 2020 2019 2018 2017 Inception Date
Matthews Pacific Tiger Fund (USD)
47.08% -2.00% 1.70% 10.76% 16.09% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
40.03% 1.97% -0.18% 10.21% 27.06%
Matthews Pacific Tiger Fund (GBP)
30.13% 1.36% 5.36% 9.32% 20.13% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
25.25% 5.03% 3.55% 8.43% 30.76%
Matthews Pacific Tiger Fund (JPY)
50.88% -1.98% -0.98% 9.41% N.A. 27/03/2017
MSCI All Country Asia ex Japan (JPY)
44.06% 2.11% -2.90% 8.64% N.A.
Matthews Pacific Tiger Fund (EUR)
38.50% -0.61% N.A. N.A. N.A. 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
32.62% 3.39% N.A. N.A. N.A.

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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