Matthews India Fund

  • Unconstrained all-cap strategy focused on companies with a sustainable competitive edge and pricing power, which are able to perform throughout economic cycles
  • Fundamental bottom-up approach to seek well-run entrepreneurial companies with sustainable organic growth and trustworthy managements


Inception Date


YTD Return (USD)

(as of 04/10/2023)



(as of 04/10/2023)


1 Day NAV Change

(as of 04/10/2023)


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 publicly traded common stocks, preferred stocks and convertible securities of companies located in India, and may invest the remainder of its net assets in other permitted assets on a worldwide basis.


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 currency, 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. Investments in a single-country fund may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.

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

Fund Facts
Inception Date 30/06/2011
Fund Assets $35.16 million (31/08/2023)
Base Currency USD
ISIN: LU0594557885 (USD) LU0594558263 (GBP)
Benchmark S&P Bombay Stock Exchange 100 Index MSCI India Index
Geographic Focus India
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2022 1.00% ( USD ) 1.00% ( GBP )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/08/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
0.71% 9.81% 17.81% 14.58% 18.86% 8.28% 13.88% 7.56% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-2.23% 5.11% 8.51% 5.91% 16.72% 8.52% 12.84% 6.78%
MSCI India Index (USD)
-1.85% 5.92% 6.47% 1.82% 15.01% 7.71% 10.70% n.a.
Matthews India Fund (GBP)
2.12% 7.05% 11.79% 5.04% 21.04% 8.90% 16.25% 9.69% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-0.72% 2.83% 3.67% -2.53% 18.90% 9.04% 15.13% 8.89%
As of 30/06/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
5.65% 15.53% 13.34% 21.10% 23.54% 8.26% 11.42% 7.33% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
4.54% 11.94% 7.93% 19.23% 21.74% 9.69% 10.88% 6.83%
MSCI India Index (USD)
4.75% 12.36% 5.30% 14.72% 19.84% 9.04% 9.02% n.a.
Matthews India Fund (GBP)
3.27% 13.00% 7.83% 15.95% 22.48% 9.21% 13.58% 9.50% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
1.84% 8.71% 2.68% 14.23% 20.68% 10.52% 12.87% 8.94%
For the years ended December 31st
Name 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Matthews India Fund (USD)
-8.93% 24.00% 18.20% 2.66% -9.78% 37.88% -3.05% -2.73% 54.46% -4.82%
S&P Bombay Stock Exchange 100 Index (USD)
-4.53% 24.08% 13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40% -4.70%
MSCI India Index (USD)
-7.49% 26.66% 15.90% 7.58% -7.30% 38.76% -1.43% -6.12% 23.87% -3.83%
Matthews India Fund (GBP)
2.53% 25.60% 14.19% -0.37% -4.76% 25.78% 16.54% 2.28% 63.93% -6.94%
S&P Bombay Stock Exchange 100 Index (GBP)
6.87% 25.15% 10.68% 4.30% -0.23% 29.51% 22.13% -1.02% 39.60% -6.59%
For the period ended 30/06/2023
Name 2023 2022 2021 2020 2019 Inception Date
Matthews India Fund (USD)
21.10% -7.84% 68.93% -21.38% 0.32% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
19.23% -4.50% 58.46% -19.28% 9.04%
Matthews India Fund (GBP)
15.95% 6.04% 49.44% -18.65% 3.92% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
14.23% 8.25% 42.15% -17.23% 13.35%

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

Source for the MSCI India Index is MSCI.

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 31/08/2023)
Fund Benchmark
Number of Positions 56 102
Weighted Average Market Cap $37.1 billion $65.8 billion
Active Share 58.0 n.a.
P/E using FY1 estimates 22.5x 20.5x
P/E using FY2 estimates 19.1x 17.9x
Price/Cash Flow n.a. 14.1
Price/Book 4.2 1.5
Return On Equity 20.5 19.1
EPS Growth (3 Yr) 22.2% 21.3%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 31/08/2023)
Upside Capture
Downside Capture
Sharpe Ratio
Information Ratio
Tracking Error

Fund Risk Metrics are reflective of Class I USD ACC shares.

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 31/08/2023)
Name Sector % Net Assets
ICICI Bank, Ltd. Financials 5.8
HDFC Bank, Ltd. Financials 5.4
Neuland Laboratories, Ltd. Health Care 4.6
Shriram Finance, Ltd. Financials 4.4
Infosys, Ltd. Information Technology 4.2
IndusInd Bank, Ltd. Financials 3.4
Axis Bank, Ltd. Financials 3.1
Tata Consultancy Services, Ltd. Information Technology 2.9
Reliance Industries, Ltd. Energy 2.9
Hindustan Unilever, Ltd. Consumer Staples 2.6
TOTAL 39.3

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 31/08/2023)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 33.2 34.0 -0.8
Consumer Discretionary 14.0 9.2 4.8
Information Technology 13.2 12.1 1.1
Health Care 13.2 4.2 9.0
Industrials 8.9 6.5 2.4
Consumer Staples 8.0 10.4 -2.4
Materials 5.3 7.7 -2.4
Energy 2.9 10.0 -7.1
Utilities 0.0 2.8 -2.8
Communication Services 0.0 2.7 -2.7
Real Estate 0.0 0.3 -0.3
Cash and Other Assets, Less Liabilities 1.1 0.0 1.1

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 40.0 69.1 -29.1
Large Cap ($10B-$25B) 10.8 19.8 -9.0
Mid Cap ($3B-$10B) 22.0 11.0 11.0
Small Cap (under $3B) 26.1 0.2 25.9
Cash and Other Assets, Less Liabilities 1.1 0.0 1.1

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.


  • 3 YEAR
  • 5 YEAR
  • 10 YEAR
(as of 24/07/2023)

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 ©2023 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

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Lead Manager

Sharat  Shroff, CFA photo
Sharat Shroff, CFA



Period ended 30 June 2023

For the first half of 2023, the Matthews India Fund returned 13.34%, while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned 7.93% over the same period. For the quarter ending 30 June 2023, the Fund returned 15.53%, while the benchmark returned 11.94%.

Market Environment:

Indian markets performed well in the first half of 2023 on the back of strong net equity flows from domestic and foreign portfolio investments (FPI). Foreign inflows are approaching US15 billion this year which isn’t far short of the total negative FPI outflow of 2022.

The turnaround in FPI has occurred amid the general consensus that global monetary tightening has either peaked or will be peaking soon. The Reserve Bank of India has held interest rates unchanged since April likely indicating an end to its rate hikes. The moderation in inflation data in the U.S. and India supports this view. In India, wholesale producer price inflation has turned negative and consumer price inflation (CPI) has trended within the RBI’s target zone of 2%-6% in last three months.

Despite what are elevated interest rates, India’s economy has continued to perform well. The 6.1% gross domestic product (GDP) growth reported for the first quarter exceeded consensus expectations of 5%. Expansion was largely led by government and private capital spending as consumption growth continued to be muted. Gross fixed capital formation delivered growth of 8.9% in the period while infrastructure development, along with revival in commercial and residential real estate, is driving a surge in construction activity in the country.

Performance Contributors and Detractors:

At the sector level, strong stock selection in industrials, health care and financials were the biggest contributors to relative performance in the first half. On the flip side, stock selection in consumer staples was the biggest detractor. Lack of exposure to utilities also detracted.

At the holdings level, Neuland Laboratories was the biggest contributor to relative and absolute performance in the period. Neuland continues to shift focus away from generic active pharmaceutical ingredients (API) manufacturing to working more closely with innovator pharma companies. This is not only helping the company grow predictably but also expand margins, in our view.

Shriram Finance, an auto and consumer finance services provider, was also a top contributor to relative and absolute performance. The stock gained as the outlook for margins for non-banking financial companies continued to improve with the bulk of interest rate-hikes likely behind us. In the second quarter, long-standing issues related to stock ownership were also addressed which also helped drive stock performance.

In contrast, Restaurant Brands Asia (RBA), a fast-food chain, was among the detractors. RBA has continued to grow well on back of footprint expansion by opening more locations across the country, however its per-store-unit economics remain muted compared to peers as the company seems to be struggling to drive higher traffic through the same outlets.

Notable Portfolio Changes:

We continued to shift the portfolio toward fast-growing business segments and away from end markets where we think competition seems to be ramping up. We exited Pidilite Industries, an adhesives manufacturing company, as growth has slowed down over the years and incremental return on capital is consistently going down. In our view, increasing competitive intensity will likely continue to negatively impact financial performance while the stock has continued to trade at a very lofty valuation.

We initiated a new investment in Mahindra & Mahindra Financial Services. Following the turnaround of its flagship auto business, Mahindra & Mahindra seems to be taking the right steps to rejuvenate performance of its non-banking financial business. It has injected new talent and is addressing segments of the market where credit quality issues are less adverse and more predictable. We think the company will not just grow fast but also trade at a better valuation in the future compared to where it has been historically.


Given the strong run in Indian equities in last few months it is time to be cautious and allow markets to consolidate for some time to come. Valuations have again gotten stretched and equity risk premium has dropped, indicating risk-reward is turning adverse from a near-term perspective. Indian equity markets at current valuations are also not discounting the risks that the economy faces in coming quarters. Among those is the risk to political stability. India is going to have general elections early next year and to assume that Prime Minister Narendra Modi will retain power would be foolhardy. We have seen how opposition parties are planning to present a united front against Modi and hence, we believe, the outcome of the election isn’t a forgone conclusion. India’s economy also depends on export-oriented growth and the slowdown in the developed world we think is going to have a negative impact. We also believe a steep commodity price-correction is likely and this, together with the elections, may inject caution and delays into decision-making as it relates to gross capital formation in the private sector.


Rolling 12 Month Returns For the period ended 30/06/2023 - I (Acc)
Name 2023 2022 2021 2020 2019 Inception Date
Matthews India Fund (USD)
21.10% -7.84% 68.93% -21.38% 0.32% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
19.23% -4.50% 58.46% -19.28% 9.04%
Matthews India Fund (GBP)
15.95% 6.04% 49.44% -18.65% 3.92% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
14.23% 8.25% 42.15% -17.23% 13.35%

Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg

To find documents in additional languages, please visit the Fund Literature page in our Resources section.

The Benchmark used for comparison under "Portfolio Breakdown" and "Portfolio Characteristics" is the S&P Bombay Stock Exchange 100 index.

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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