Asia Growth & Income

Matthews Asia ex Japan Dividend Fund

  • Total return strategy seeks to access the growth of Asia Pacific ex Japan with lower volatility
  • Unconstrained all-cap portfolio with a quality bias
  • Flexible approach offers participation in both growth and value markets


Inception Date


YTD Return (USD)

(as of 24/06/2021)


Price (USD)

(as of 24/06/2021)

$460.19 million

Fund Assets

(as of 31/05/2021)


Seeks total return with an emphasis on providing current income.


The Fund pursues its objective by primarily investing in companies that exhibit attractive dividend yields and/or the potential to grow dividends over time. The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in income-paying publicly traded common stocks, preferred stocks, convertible preferred stocks and other equity-related instruments (including, for example, investment trusts and other financial instruments) of companies located in the Asia ex Japan region.


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. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends.

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

Fund Facts
Inception Date 30/11/2015
Fund Assets $460.19 million (31/05/2021)
Base Currency USD
ISIN: LU1311311358 (USD) LU1311311515 (GBP) LU1311311788 (EUR)
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia ex Japan: Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region, excluding Japan
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2021 1.00% ( USD ) 0.99% ( GBP ) 0.90% ( EUR )


  • 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 Asia ex Japan Dividend Fund (USD)
2.22% 4.50% 8.99% 64.08% 19.26% 21.06% n.a. 19.54% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
1.23% 1.13% 6.61% 51.96% 10.77% 15.47% n.a. 13.79%
Matthews Asia ex Japan Dividend Fund (GBP)
0.21% 2.73% 4.98% 43.01% 16.86% 21.85% n.a. 20.77% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
-1.40% -0.53% 2.51% 32.16% 8.36% 16.02% n.a. 14.99%
As of 31/03/2021
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia ex Japan Dividend Fund (USD)
-2.90% 1.27% 1.27% 79.90% 15.71% 19.48% n.a. 18.56% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
-2.52% 2.75% 2.75% 57.77% 9.20% 14.12% n.a. 13.47%
Matthews Asia ex Japan Dividend Fund (GBP)
-1.67% 0.48% 0.48% 61.41% 16.57% 20.56% n.a. 20.49% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
-1.22% 1.80% 1.80% 41.79% 9.80% 15.05% n.a. 15.34%
For the years ended December 31st
Name 2020 2019 2018 2017 2016
Matthews Asia ex Japan Dividend Fund (USD)
51.86% 16.73% -12.37% 47.29% 6.89%
MSCI All Country Asia ex Japan Index (USD)
25.36% 18.52% -14.12% 42.08% 5.76%
Matthews Asia ex Japan Dividend Fund (GBP)
46.62% 13.21% -7.38% 34.23% 28.50%
MSCI All Country Asia ex Japan Index (GBP)
21.49% 13.94% -8.78% 29.78% 26.15%
For the period ended 31/03/2021
Name 2021 2020 2019 2018 2017 Inception Date
Matthews Asia ex Japan Dividend Fund (USD)
79.90% -9.99% -4.31% 32.01% 19.06% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
57.77% -13.18% -4.95% 26.16% 17.82%
Matthews Asia ex Japan Dividend Fund (GBP)
61.41% -4.62% 2.87% 17.09% 37.32% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
41.79% -8.76% 2.33% 12.45% 35.42%

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.


(as of 31/05/2021)
1.43% Dividend Yield

Source: FactSet Research Systems, Bloomberg, Matthews

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
$80.5 billion
Weighted Average Market Cap

Source: FactSet Research Systems

Top 10 Holdings

(as of 31/05/2021)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 4.1
Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.2
Link REIT Real Estate China/Hong Kong 2.8
HDFC Bank, Ltd. Financials India 2.5
LG Chem Ltd. Materials South Korea 2.4
AIA Group, Ltd. Financials China/Hong Kong 2.4
Samsung Electronics Co., Ltd. Information Technology South Korea 2.3
Doosan Bobcat Inc. Industrials South Korea 2.3
E Ink Holdings, Inc. Information Technology Taiwan 2.3
MediaTek, Inc. Information Technology Taiwan 2.3
TOTAL 26.6

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 31/05/2021)
  • 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 97.8
Cash and Other Assets, Less Liabilities 2.1

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
(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.

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*

Yu  Zhang, CFA photo
Yu Zhang, CFA

Lead Manager

Robert J. Horrocks, PhD photo
Sherwood  Zhang, CFA photo
Sherwood Zhang, CFA


S. Joyce Li, CFA photo
S. Joyce Li, CFA


*No Hong Kong based Co-Manager for the Matthews Asia Funds will exercise investment discretion for or on behalf of the Fund in Hong Kong.


Period ended 31 March 2021

For the quarter ending 31 March 2021, the Matthews Asia ex-Japan Dividend Fund returned 1.27%, while its benchmark, the MSCI All Country ex Japan Index returned 2.75%.

Market Environment:

In January and early February, North Asia equities continued to climb, leading the region with strong absolute performance. However, in the middle of February, Asia equity prices became more volatile as growth prospects and talks of U.S. stimulus led to a spike in U.S. Treasury rates. The U.S. dollar strengthened and commodity prices grinded higher causing analysts to speculate about higher inflation. Stocks associated with a cyclical recovery and value-oriented companies outperformed growth stocks. Cyclical sectors like energy, materials, real estate and financials performed well while health care and consumer stocks lagged. By the end of the quarter, Asian large caps and growth stocks suffered the most while small caps and lower quality, cyclically oriented stocks rallied the most.

The rise in longer dated bond yields helped to spark somewhat of a rotation away from the conceptual growth stocks with limited near-term earnings but much promise, and caused a bid for more classic “value” stocks including banks and commodities.

Performance Contributors and Detractors:

From a sector perspective, stock selection in consumer discretionary and communication services detracted from relative performance. Our auto parts holdings were weak in the quarter, including Minth Group, a leading auto parts manufacturer from China, In the first quarter the market was concerned about near-term impact of global automotive semiconductor chip shortage. We believe the impact is manageable for Minth and view this as a healthy correction after its strong share performance in the second half of 2020. On the other hand, stock selection within the financials and real estate sectors contributed to relative performance. The portfolio’s bank and insurance holdings, including Postal Savings Bank of China, performed well as these interest-rate sensitive stocks responded positively to a steepening yield curve driven by an improved economic recovery and inflation expectation. From a country perspective, stock selection in China/Hong Kong and Taiwan detracted from relative performance, while stock selection in Malaysia and South Korea contributed to relative performance.

Notable Portfolio Changes:

We were active in the first quarter, taking advantage of market volatility to add some new positions, upgrade the quality of holdings and reallocate capital. With a focus on total return, we trimmed the dividend growth exposure and increased dividend payer exposure focusing on cyclical businesses. Against the backdrop of a broadening of the growth cycle, we also invested in the quarter with an eye toward maintaining meaningful small and mid cap exposure in the portfolio. New positions include financials, materials, real estate and consumer focused companies.

One new position is Link REIT, a company that is among the largest REITs listed in Hong Kong in terms of portfolio size. Its Hong Kong portfolio comprises properties and car parks, all of which are located near residential areas. We believe Link is attractively valued for its steady cash generative assets and potential for earning accretive acquisitions in mainland China. Another new position is Universal Vision Biotechnology, a large vision service chain operator in Taiwan with a dominant share in Lasik surgery operations. The company enjoys cash flow from its established market position and earnings growth from rising Lasik surgery penetration in Taiwan and clinic expansion in mainland China.


We remain constructive on Asian equity market for 2021, supported by a broadening economic recovery. Cyclical businesses are likely to lead the current earnings recovery phase. Meanwhile, how policymakers respond to potentially rising inflation and such policies’ impact on market liquidity conditions also warrant close monitoring. Compared with 2020 whereby dividend growth was a strong performance driver, we believe bringing portfolio exposure back to a more balanced positioning between dividend growth stocks and high-dividend-yielding stocks makes more sense in the current environment.

Rolling 12 Month Returns For the period ended 31/03/2021 - I (Acc)
Name 2021 2020 2019 2018 2017 Inception Date
Matthews Asia ex Japan Dividend Fund (USD)
79.90% -9.99% -4.31% 32.01% 19.06% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
57.77% -13.18% -4.95% 26.16% 17.82%
Matthews Asia ex Japan Dividend Fund (GBP)
61.41% -4.62% 2.87% 17.09% 37.32% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
41.79% -8.76% 2.33% 12.45% 35.42%

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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