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Matthews India Fund

Snapshot
  • 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

30/06/2011

Inception Date

4.67%

YTD Return (USD)

(as of 19/04/2024)

$27.77

NAV (USD)

(as of 19/04/2024)

+0.10

1 Day NAV Change

(as of 19/04/2024)

Objective

Seeks to achieve long term capital appreciation.

Sustainability

The Fund promotes environmental and social characteristics according to Article 8 of SFDR. Furthermore, the Fund uses both activity- and norm-based exclusions. Information relating to the environmental and social characteristics of this Fund is available in the prospectus.

Strategy

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.

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 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 $47.05 million (31/03/2024)
Base Currency USD
ISIN: LU0594557885 (USD) LU0594558263 (GBP)
Bloomberg Symbol MAINDIU:LX (USD) MAINDGI:LX (GBP)
Benchmark S&P Bombay Stock Exchange 100 Index MSCI India Index
Geographic Focus India
SFDR Classification Article 8
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 30/09/2023 1.00% ( USD ) 1.00% ( GBP )

Performance

  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
    Returns
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As of 31/03/2024
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-1.17% 4.75% 4.75% 37.44% 13.26% 11.73% 11.59% 8.35% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
1.06% 4.07% 4.07% 32.15% 12.67% 11.84% 11.05% 7.96%
MSCI India Index (USD)
0.82% 6.12% 6.12% 37.35% 12.77% 11.90% 9.87% 6.77%
Matthews India Fund (GBP)
-1.15% 5.39% 5.39% 34.51% 16.71% 12.61% 14.76% 10.42% 30/06/2011
(GBP)
0.95% 7.09% 7.09% 34.43% 16.13% 12.60% 12.96% 8.80%
As of 31/03/2024
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-1.17% 4.75% 4.75% 37.44% 13.26% 11.73% 11.59% 8.35% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
1.06% 4.07% 4.07% 32.15% 12.67% 11.84% 11.05% 7.96%
MSCI India Index (USD)
0.82% 6.12% 6.12% 37.35% 12.77% 11.90% 9.87% 6.77%
Matthews India Fund (GBP)
-1.15% 5.39% 5.39% 34.51% 16.71% 12.61% 14.76% 10.42% 30/06/2011
(GBP)
0.95% 7.09% 7.09% 34.43% 16.13% 12.60% 12.96% 8.80%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews India Fund (USD)
28.72% -8.93% 24.00% 18.20% 2.66% -9.78% 37.88% -3.05% -2.73% 54.46%
S&P Bombay Stock Exchange 100 Index (USD)
22.44% -4.53% 24.08% 13.92% 8.53% -6.00% 41.88% 2.32% -6.41% 31.40%
MSCI India Index (USD)
21.29% -7.49% 26.66% 15.90% 7.58% -7.30% 38.76% -1.43% -6.12% 23.87%
Matthews India Fund (GBP)
21.80% 2.53% 25.60% 14.19% -0.37% -4.76% 25.78% 16.54% 2.28% 63.93%
S&P Bombay Stock Exchange 100 Index (GBP)
16.07% 6.87% 25.15% 10.68% 4.30% -0.23% 29.51% 22.13% -1.02% 39.60%
For the period ended 31/03/2024
Name 2024 2023 2022 2021 2020 Inception Date
Matthews India Fund (USD)
37.44% -4.22% 10.35% 86.27% -35.65% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
32.15% -6.93% 16.28% 78.72% -31.53%
MSCI India Index (USD)
37.35% -11.71% 18.25% 76.99% -30.86%
Matthews India Fund (GBP)
34.51% 2.10% 15.77% 67.12% -31.83% 30/06/2011
(GBP)
34.43% n.a. n.a. n.a. n.a.

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

All returns over 1 year are annualized

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 31/03/2024)
Fund Benchmark
Number of Positions 62 101
Weighted Average Market Cap $49.0 billion $71.3 billion
Active Share 53.2 n.a.
P/E using FY1 estimates 25.6x 23.9x
P/E using FY2 estimates 23.0x 21.0x
Price/Cash Flow 21.4 16.6
Price/Book 4.5 4.1
Return On Equity 16.8 18.7
EPS Growth (3 Yr) 19.3% 22.8%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 31/03/2024)
2.59%
Alpha
0.78
Beta
81.47%
Upside Capture
72.87%
Downside Capture
0.81
Sharpe Ratio
0.09
Information Ratio
6.57%
Tracking Error
80.68

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

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 31/03/2024)
Name Sector % Net Assets
Reliance Industries, Ltd. Energy 5.9
HDFC Bank, Ltd. Financials 5.3
ICICI Bank, Ltd. Financials 5.1
Shriram Finance, Ltd. Financials 4.6
Infosys, Ltd. Information Technology 4.2
Tata Consultancy Services, Ltd. Information Technology 3.1
IndusInd Bank, Ltd. Financials 3.0
Zomato, Ltd. Consumer Discretionary 2.6
Axis Bank, Ltd. Financials 2.4
Thermax, Ltd. Industrials 2.3
TOTAL 38.5

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 31/03/2024)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 30.2 30.7 -0.5
Consumer Discretionary 19.0 11.1 7.9
Industrials 11.7 8.1 3.6
Information Technology 10.0 11.0 -1.0
Health Care 8.2 4.5 3.7
Consumer Staples 7.0 9.4 -2.4
Energy 5.9 11.2 -5.3
Materials 1.5 7.3 -5.8
Communication Services 1.3 3.0 -1.7
Real Estate 1.2 0.5 0.7
Utilities 0.0 3.3 -3.3
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 43.2 73.1 -29.9
Large Cap ($10B-$25B) 20.9 20.6 0.3
Mid Cap ($3B-$10B) 15.4 6.2 9.2
Small Cap (under $3B) 16.5 0.1 16.4
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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.

Sustainability-related Disclosures

This Fund Yes No
Complies with Article 8 of SFDR  
Investment process integrates ESG factors and sustainability risks based on proprietary and third-party research  
Applies norms- and activity-based exclusions  
Promotes environmental and social characteristics  
Has a sustainable investment objective  
Conducts engagement  
Exercises Voting Rights  

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 Fund’s investment objective and risk factors.

For more information, please refer to our Responsible Investment and Stewardship Policy and our ESG-Related Investment Policy of Matthews Asia Funds.

Ratings

  • OVERALL
  • 3 YEAR
  • 5 YEAR
  • 10 YEAR
(as of 31/01/2024)

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

Swagato  Ghosh photo
Swagato Ghosh

Co-Manager

Commentary

Period ended 31 March 2024

Environment

  • India outperformed the broad emerging markets though there was some consolidation over concerns regarding elevated valuations, particularly among small caps. As a consequence, for now, we are leaning a little more to the large caps where the market is more predictable.
  • Infrastructure spending is helping to drive manufacturing expansion and while some consumer market segments are taking time to pick up after the pandemic, they are moving in the right direction and supporting economic expansion and better earnings growth particularly in mid-cap areas.
  • Heading into elections in April-May, consensus is building around Bharatiya Janata Party (BJP) retaining power with good majority, adding to buoyant market sentiment and offsetting the valuation concerns.

Contributors and Detractors

  • For the quarter ended 31 March 2024, the India Fund returned 4.75%, (I Acc USD) while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned 4.07% over the same period.
  • The top three contributors to relative performance, on a sector basis, were industrials and financials due to stock selection and consumer staples due to an underweight allocation.  
  • The top three detractors to relative performance, on a sector basis, were energy due to an underweight allocation, and consumer discretionary and information technology due to stock selection.
  • The largest contributors to absolute performance during the quarter included Cummins India, an Indian power equipment manufacturer, Neuland Laboratories, an Indian pharmaceutical firm and Thermax, an energy equipment manufacturer. The top three detractors to performance during the quarter included HDFC Bank, an Indian leading bank and financial services company, Thanga Mayil Jewellery, an Indian jeweler and IndusInd Bank, an Indian banking and financial services company.

Outlook

  • The summer climate and monsoons are near-term catalysts for the economy and the market. The summer months are expected to be more intense than usual which may help companies with summer-based products, however, some crop yields may be impacted. Monsoons are expected to be normal which should help rural economy in the medium term. 
  • Long term, we are very positive on India’s economic growth and positive that the mechanisms are in place for more infrastructure and more property investment and for a broadening out of the economy.
  • India has one of the world’s highest nominal GDP growth rates supported by higher-than-market earnings growth. In addition, India’s relatively stable political and monetary policy environment and the progress in building out export and manufacturing related infrastructure has been effective in attracting foreign direct investment. 
  • While there are some concerns regarding elevated valuations, we believe there are unique characteristics that underpin these, including India’s long runway of powerful demographics and wage growth.
  • While we expect some consolidation in India equities, for active investors like ourselves, we think it may be an opportunity to add exposure.

 

Rolling 12 Month Returns For the period ended 31/03/2024 - I (Acc)
Name 2024 2023 2022 2021 2020 Inception Date
Matthews India Fund (USD)
37.44% -4.22% 10.35% 86.27% -35.65% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
32.15% -6.93% 16.28% 78.72% -31.53%
MSCI India Index (USD)
37.35% -11.71% 18.25% 76.99% -30.86%
Matthews India Fund (GBP)
34.51% 2.10% 15.77% 67.12% -31.83% 30/06/2011
(GBP)
34.43% N.A. N.A. N.A. N.A.

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. 

Index Definitions