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 24/06/2021)


Price (USD)

(as of 24/06/2021)

$546.76 million

Fund Assets

(as of 31/05/2021)


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 $546.76 million (31/05/2021)
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 31/05/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
2.01% 1.19% 5.15% 60.94% 11.86% 13.48% 8.26% 9.13% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
1.23% 1.13% 6.61% 51.96% 10.77% 15.47% 7.10% 8.16%
Matthews Pacific Tiger Fund (GBP)
0.00% -0.53% 1.30% 40.27% 9.61% 14.22% 9.90% 10.55% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-1.40% -0.53% 2.51% 32.16% 8.36% 16.02% 8.68% 9.23%
Matthews Pacific Tiger Fund (JPY)
2.72% 4.45% 11.88% 64.72% 12.13% n.a. n.a. 13.45% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
1.32% 3.84% 12.96% 54.30% 11.02% n.a. n.a. 13.32%
Matthews Pacific Tiger Fund (EUR)
1.01% 0.47% 5.80% 46.94% n.a. n.a. n.a. 13.24% 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
-0.33% 0.40% 6.68% 38.25% n.a. n.a. n.a. 12.50%
As of 31/03/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
-3.11% 0.68% 0.68% 66.84% 9.96% 12.66% 8.22% 8.84% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-2.52% 2.75% 2.75% 57.77% 9.20% 14.12% 6.96% 7.93%
Matthews Pacific Tiger Fund (GBP)
-1.88% -0.07% -0.07% 49.70% 10.77% 13.67% 9.91% 10.59% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-1.22% 1.80% 1.80% 41.79% 9.80% 15.05% 8.58% 9.32%
Matthews Pacific Tiger Fund (JPY)
1.00% 8.18% 8.18% 70.21% 11.41% n.a. n.a. 13.10% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
1.10% 9.97% 9.97% 61.49% 10.60% n.a. n.a. 13.15%
Matthews Pacific Tiger Fund (EUR)
0.00% 5.31% 5.31% 55.80% n.a. n.a. n.a. 14.20% 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
0.67% 6.97% 6.97% 47.29% n.a. n.a. n.a. 13.82%
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 31/03/2021
Name 2021 2020 2019 2018 2017 Inception Date
Matthews Pacific Tiger Fund (USD)
66.84% -18.68% -2.00% 21.93% 11.95% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
57.77% -13.18% -4.95% 26.16% 17.82%
Matthews Pacific Tiger Fund (GBP)
49.70% -13.80% 5.32% 8.15% 29.09% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
41.79% -8.76% 2.33% 12.45% 35.42%
Matthews Pacific Tiger Fund (JPY)
70.21% -20.32% 1.97% 16.12% n.a. 27/03/2017
MSCI All Country Asia ex Japan (JPY)
61.49% -15.32% -1.07% 20.40% n.a.
Matthews Pacific Tiger Fund (EUR)
55.80% n.a. n.a. n.a. n.a. 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
47.29% n.a. 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 31/05/2021)
Number of Securities

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

P/E using FY1 estimates
P/E using FY2 estimates
$163.7 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 31/05/2021)
Name Sector Country % Net Assets
Tencent Holdings, Ltd. Communication Services China/Hong Kong 5.6
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 5.5
Samsung Electronics Co., Ltd. Information Technology South Korea 5.2
Alibaba Group Holding, Ltd. Consumer Discretionary China/Hong Kong 3.8
AIA Group, Ltd. Financials China/Hong Kong 2.9
Wuxi Biologics Cayman, Inc. Health Care China/Hong Kong 2.2
ENN Energy Holdings, Ltd. Utilities China/Hong Kong 2.2
Hong Kong Exchanges & Clearing, Ltd. Financials China/Hong Kong 2.2
MediaTek, Inc. Information Technology Taiwan 2.1
Central Pattana Public Co., Ltd. Real Estate Thailand 2.0
TOTAL 33.7

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 31/05/2021)
  • 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 97.5
Cash and Other Assets, Less Liabilities 2.5

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 22/01/2021)

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 31 March 2021

For the quarter ending 31 March 2021, the Matthews Pacific Tiger Fund returned 0.68%, while its benchmark, the MSCI All Country Asia ex Japan Index, returned 2.75%.

Market Environment

Asia’s equity markets started the year on a strong note continuing the trends experienced last year. However, the initial gains were nearly eroded as fears of a spike in inflation triggered a rotation among Asian equities from growth stocks toward more value-oriented stocks.

The rotation was driven by the relative attractiveness of valuations in sectors that were severely affected by the pandemic last year, as investors expect that there will be earnings recovery to be had. In particular, growth companies in China that experienced significant run ups in valuations last year saw their earlier gains reversed. Furthermore, investors continue to try to assess the potential impact of some regulatory proposals in China that seek to balance free flow of data and consumer privacy. Consumer discretionary was one of the weakest sectors during the sell-off as it is vulnerable to both these trends.

On a positive note, Taiwan’s equity markets held up well in the quarter. With significant exposure to the semiconductor technology, Taiwan benefited from continued strong demand for computer chips. As the global economy continues to get back on its feet, the outlook for semiconductors remains favorable. In addition, some of the worst performing markets, including Thailand, are starting to attract investor attention as the prospects for tourism is starting to look a bit better. With the economic recovery starting to gain pace and breadth, many small-cap companies may be well placed to benefit from more favorable economic conditions. Consequently, small caps outperformed large caps quite handily.

Performance Contributors and Detractors

Stock selection in South Korea was a contributor to performance. Container shipping company HMM Co., Internet services provider Naver Corp. and beauty product manufacturer Amore Pacific are three examples of positive stock selection in South Korea in the quarter. HMM is a new position and Amore Pacific is a newly re-initiated position. Naver remains a steady performer with attractive long-term growth potential. Internet services in general got a boost from the pandemic and Naver’s e-commerce business continued to demonstrate strong market share gain.

On the other hand, stock selection in China was a detractor. Solar producer Xinyi Solar Holdings, power semiconductor producer StarPower Semiconductor Ltd. and health care company Jiangsu Hengrui Medicine each saw share price weakness in the quarter. In the case of Xinyi and StarPower, we have added to the positions as the risk-reward looks more favorable, and we look to build the weight in the portfolio. We exited Jiangsu Hengrui Medicine.

Notable Portfolio Changes

During the quarter, we initiated a new position in Shandong Sinocera Functional Material Co., a Chinese specialty chemical company. In addition to making chemicals that are used for key components of autos and electric vehicles (EVs), the company also makes materials that go in to dental and orthopedic materials. Shandong Sinocera is the type of specialized company that might be more common in mature markets such as South Korea or Japan but we are increasingly starting to see this type of innovative company emerge out of China. While the company is classified in materials sector, the underlying exposure of the company’s business model is toward consumer-focused areas such as health care, which are very hard to get exposure to in China without paying high premiums on the valuations.

As mentioned earlier, South Korean container shipping company HMM was a new addition in the quarter. HMM is a unique business turnaround case as they went through cost rationalization exercise in recent years while going through the industry’s consolidation. HMM has emerged as a leading shipping company in South Korea and we believe that there will be more improvement to be delivered for the shareholders. Additionally, strong demand for physical goods during the pandemic, together with reduced supply of the shipping vessels, accelerated its earnings improvement. We also reinitiated a position in South Korean cosmetics company Amore Pacific in the fourth quarter of 2020, and continued to build the position in the first quarter of 2021. This consumer focused company is continuing to restructure, with improvements to the management team and a focus on contemporizing their brands to better meet the needs of sophisticated consumers.


Across the region, we see a return to normalcy, leading to better economic prospects for businesses. Parts of Asia have progressed from recovery to expansion, while others like India and Indonesia are still getting back to pre-pandemic levels of activity. Some of the economic indicators in India are pointing to a steady improvement but we await confirmation of the trend in stronger credit activity.

While there are some signs of an uptick in inflation, it remains to be seen if these pressures will persist. Some of the inflationary pressures may have been driven by supply chain disruption and, hence may be shorter-term in nature. Major central banks in Asia have opted to leave interest rates largely unchanged in the quarter.

There is some concern that Asian economies may suffer a liquidity crunch as interest rates start to rise in the U.S. It is worth noting that a change to interest rates is being driven by favorable growth expectations. Furthermore, compared to prior periods of an increase in interest rates, foreign exchange reserves have grown noticeably and current account deficits have switched from deficit to surplus for countries like India. Both India and Indonesia continue to receive inflows into equities from foreign institutional investors during recent periods of volatility.

Looking ahead, earnings growth, liquidity and valuations all appear supportive of Asia’s equity markets. We expect strong corporate earnings across Asia in 2021 as the global recovery continues to expand. Across the region we see sufficient liquidity. While we have not seen as much uptake in credit, any pick up in credit issuance should further support economic growth. And valuations, which started the year slightly elevated in parts of the market, have become more reasonable.

Rolling 12 Month Returns For the period ended 31/03/2021 - I (Acc)
Name 2021 2020 2019 2018 2017 Inception Date
Matthews Pacific Tiger Fund (USD)
66.84% -18.68% -2.00% 21.93% 11.95% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
57.77% -13.18% -4.95% 26.16% 17.82%
Matthews Pacific Tiger Fund (GBP)
49.70% -13.80% 5.32% 8.15% 29.09% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
41.79% -8.76% 2.33% 12.45% 35.42%
Matthews Pacific Tiger Fund (JPY)
70.21% -20.32% 1.97% 16.12% N.A. 27/03/2017
MSCI All Country Asia ex Japan (JPY)
61.49% -15.32% -1.07% 20.40% N.A.
Matthews Pacific Tiger Fund (EUR)
55.80% N.A. N.A. N.A. N.A. 30/04/2019
MSCI All Country Asia ex Japan Index (EUR)
47.29% N.A. 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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