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Matthews Asia Sustainable Future Fund

Snapshot
  • Unconstrained strategy focused on companies that make a positive environmental, social and eco­nomic impact in Asia ex Japan
  • All-cap portfolio with diversified emerging and frontier market exposures
  • Deep bottom-up fundamental approach that seeks to generate attractive long-term risk-adjusted returns by investing in well-governed companies

21/07/2022

Inception Date

n.a.

YTD Return (USD)

(as of 10/08/2022)

$9.88

NAV (USD)

(as of 10/08/2022)

-0.10

1 Day NAV Change

(as of 10/08/2022)

Objective

The Fund seeks to achieve long-term capital appreciation while investing in companies that contribute to a sustainable future.

Sustainability

The Sub-Fund has sustainable investment as its objective within the meaning of Article 9 of SFDR. In managing the Sub-Fund, the Investment Manager will apply its ESG investment guidelines further described in “General Information Relating To Sustainability” in the main part of the Prospectus.

Strategy

The Fund seeks to achieve its investment objective by investing, directly or indirectly, primarily (i.e., at least 65% of its net assets) in equities of companies located in, or with substantial ties to, the Asia ex Japan region that the Investment Manager believes contribute positively to one or more of its sustainability focus areas. On an ancillary basis, the Fund may invest in other permitted assets on a worldwide basis. For the purpose of this policy, the Asia ex Japan region consists of all countries and markets in Asia excluding Japan, but including all other developed, emerging and frontier countries and markets in Asia. The Fund seeks to invest primarily in companies that the Investment Manager believes, based on its analysis, meet the following environmental, social and governance ("ESG") standards: (1) they do not cause significant environmental or social harm; (2) they have good governance practices; and (3) they contribute to a sustainable future. In evaluating whether a company meets these ESG standards, the Investment Manager focuses on a company's contribution or potential future contribution to positive ESG outcomes based on a variety of criteria, which may include some or all of the following: climate change mitigation and adaptation, clean environment, circular economy, or sustainable production and consumption; health and well-being, human capital development, inclusive development or enablement of sustainable development; and/or good governance practices that demonstrate a strong commitment to integration of ESG principles.

Fund Facts
Inception Date 21/07/2022
Fund Assets $4.96 million (31/07/2022)
Base Currency USD
ISIN: LU2459556697 (USD) LU2459556770 (GBP)
Bloomberg Symbol MAASFIA:LX (USD) MAASFIG:LX (GBP)
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia - Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region
SFDR Classification Article 9
Fees & Expenses
Management Fee 0.75%

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 Investment Manager's consideration of ESG factors in making its investment decisions materially impact the investment performance of the Fund. These and other risks associated with investing in the Fund can be found in the Prospectus.

These and other risks associated with investing in the Fund can be found in the prospectus.

Performance

  • Monthly
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As of 31/07/2022
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Sustainable Future Fund (USD)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21/07/2022
MSCI All Country Asia ex Japan Index (USD)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Matthews Asia Sustainable Future Fund (GBP)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21/07/2022
MSCI All Country Asia ex Japan Index (GBP)
n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

The Fund has commenced operations from 21 July 2022 and performance will not be shown until the fund has reached one year since inception.

Portfolio Characteristics

(as of 31/07/2022)
Fund Benchmark
Number of Positions 46 1,199
Weighted Average Market Cap $37.5 billion $106.5 billion
Active Share 93.1 n.a.
P/E using FY1 estimates 20.2x 11.5x
P/E using FY2 estimates 16.1x 10.8x
Price/Cash Flow 14.6 7.0
Price/Book 3.1 1.6
Return On Equity 4.1 14.6
EPS Growth (3 Yr) 3.6% 11.8%

Sources: Factset Research Systems, Inc.

Top 10 Holdings

(as of 31/07/2022)
Name Sector Country % Net Assets
Full Truck Alliance Co., Ltd. Industrials China/Hong Kong 7.1
Legend Biotech Corp. Health Care United States 6.3
Hong Kong Exchanges & Clearing, Ltd. Financials China/Hong Kong 6.2
Bandhan Bank, Ltd. Financials India 5.7
Shriram City Union Finance, Ltd. Financials India 5.6
Samsung SDI Co., Ltd., Pfd. Information Technology South Korea 4.9
JD Health International, Inc. Consumer Discretionary China/Hong Kong 4.8
Ecopro BM Co., Ltd. Industrials South Korea 3.5
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 3.4
Ginlong Technologies Co., Ltd. Industrials China/Hong Kong 3.2
TOTAL 50.7

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 31/07/2022)
  • Sector Allocation
  • Country Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Industrials 27.4 6.8 20.6
Financials 18.4 20.3 -1.9
Information Technology 15.9 22.6 -6.7
Consumer Discretionary 14.9 14.8 0.1
Health Care 11.3 4.1 7.2
Real Estate 6.1 3.9 2.2
Communication Services 2.9 10.0 -7.1
Consumer Staples 2.1 5.4 -3.3
Materials 0.0 5.3 -5.3
Energy 0.0 3.7 -3.7
Utilities 0.0 3.2 -3.2
Cash and Other Assets, Less Liabilities 1.0 0.0 1.0

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

Country Fund Benchmark Difference
China/Hong Kong 41.7 43.8 -2.1
India 24.2 15.7 8.5
South Korea 10.1 13.5 -3.4
Taiwan 9.0 16.5 -7.5
United States 8.3 0.0 8.3
Indonesia 1.8 2.1 -0.3
Bangladesh 1.7 0.0 1.7
Vietnam 1.2 0.0 1.2
Singapore 1.0 3.7 -2.7
Thailand 0.0 2.1 -2.1
Malaysia 0.0 1.7 -1.7
Philippines 0.0 0.8 -0.8
Cash and Other Assets, Less Liabilities 1.0 0.0 1.0

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 25.1 58.8 -33.7
Large Cap ($10B-$25B) 13.0 20.9 -7.9
Mid Cap ($3B-$10B) 37.8 18.4 19.4
Small Cap (under $3B) 23.1 1.8 21.3
Cash and Other Assets, Less Liabilities 1.0 0.0 1.0

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.

Portfolio Managers

Vivek  Tanneeru photo
Vivek Tanneeru

Lead Manager

 

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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