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 28/03/2023)



(as of 28/03/2023)


1 Day NAV Change

(as of 28/03/2023)


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 $20.97 million (28/02/2023)
Base Currency USD
ISIN: LU0594557885 (USD) LU0594558263 (GBP)
Benchmark S&P Bombay Stock Exchange 100 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 28/02/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-0.69% -6.82% -2.52% -4.74% 10.92% 4.13% 8.84% 6.16% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-3.08% -9.17% -4.54% -4.60% 12.36% 6.33% 8.76% 5.91%
Matthews India Fund (GBP)
0.94% -7.61% -3.08% 5.86% 13.41% 7.03% 11.41% 8.79% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-1.28% -10.35% -4.56% 5.62% 14.39% 9.16% 11.26% 8.52%
As of 31/12/2022
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
-4.41% -0.43% -8.93% -8.93% 10.11% 4.33% 8.98% 6.49% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-4.85% 3.40% -4.53% -4.53% 10.51% 6.60% 8.88% 6.43%
Matthews India Fund (GBP)
-4.67% -8.65% 2.53% 2.53% 13.71% 6.89% 12.30% 9.22% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-6.07% -4.86% 6.87% 6.87% 13.96% 9.02% 12.14% 9.09%
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%
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 31/12/2022
Name 2022 2021 2020 2019 2018 Inception Date
Matthews India Fund (USD)
-8.93% 24.00% 18.20% 2.66% -9.78% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-4.53% 24.08% 13.92% 8.53% -6.00%
Matthews India Fund (GBP)
2.53% 25.60% 14.19% -0.37% -4.76% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
6.87% 25.15% 10.68% 4.30% -0.23%

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 28/02/2023)
Fund Benchmark
Number of Positions 45 101
Weighted Average Market Cap $41.8 billion $60.3 billion
Active Share 55.0 n.a.
P/E using FY1 estimates 22.8x 21.8x
P/E using FY2 estimates 18.9x 18.3x
Price/Cash Flow n.a. 14.0
Price/Book 3.7 3.1
Return On Equity 17.1 18.2
EPS Growth (3 Yr) 18.0% 22.8%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 28/02/2023)
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 28/02/2023)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 7.9
ICICI Bank, Ltd. Financials 7.1
Infosys, Ltd. Information Technology 6.4
Tata Consultancy Services, Ltd. Information Technology 5.0
Shriram Finance, Ltd. Financials 4.8
Hindustan Unilever, Ltd. Consumer Staples 4.1
Axis Bank, Ltd. Financials 3.5
IndusInd Bank, Ltd. Financials 3.5
Dabur India, Ltd. Consumer Staples 3.2
Neuland Laboratories, Ltd. Health Care 3.2
TOTAL 48.7

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 28/02/2023)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 37.6 35.3 2.3
Information Technology 15.3 13.4 1.9
Consumer Discretionary 11.8 7.6 4.2
Industrials 10.4 5.7 4.7
Consumer Staples 10.0 9.9 0.1
Health Care 8.0 3.5 4.5
Materials 6.0 7.9 -1.9
Energy 2.7 10.9 -8.2
Communication Services 0.0 2.7 -2.7
Utilities 0.0 2.6 -2.6
Real Estate 0.0 0.4 -0.4
Liabilities in Excess of Cash and Other Assets -1.9 0.0 -1.9

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) 50.1 69.1 -19.0
Large Cap ($10B-$25B) 12.5 17.1 -4.6
Mid Cap ($3B-$10B) 21.7 13.1 8.6
Small Cap (under $3B) 17.5 0.6 16.9
Liabilities in Excess of Cash and Other Assets -1.9 0.0 -1.9

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

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 31 December 2022

For the year ending 31 December 2022, the Matthews India Fund returned -8.93%, while its benchmark, the S&P Bombay Stock Exchange 100 Index returned -4.53%. For the fourth quarter of the year, the Fund returned -0.43% versus 3.40% for the benchmark.

Market Environment:

Central banks maintained their war against inflation with higher interest rates globally during 2022. Even though inflation has generally subsided in the past few months, the pace of moderation has been behind the estimations of most. As a consequence, it’s expected that higher rates will be here for longer even as the pace of incremental rate hikes slows.

To complicate this dynamic we’re also seeing China remove its entrenched zero-COVID restrictions. As activity in the world’s second-largest economic power starts to normalize it will help improve global gross domestic production (GDP) but it’s also likely to exert upward pressure on inflation. Hence, it’s reasonable to assume that central banks are unlikely to start to ease monetary policy anytime soon.

In India, the rupee continues to be range-bound but given the current interest rate policy it remains to be seen if that will stay the case. The differential between central bank rate policy in the U.S. and in India is at its lowest for the last 15 years, which suggests that outflow of dollar reserves from India will remain a risk in a near to medium term and the rupee will continue to be volatile.

Separately, consumption in India continues to moderate. Amid inflationary pressures, consumption is negatively impacted in lower income sections of the economy. However, we are beginning to see some pick-up in nominal wage growth in rural India along with higher remittance which should help alleviate a cash crunch in non-urban areas of the country.

Performance Contributors and Detractors:

At the sector level, our overweight to industrials was the biggest contributor to performance as manufacturing activity in India continues to gather pace. On the other hand, our stock selection within consumer staples was one of the biggest detractors to performance. Stock selection within information technology, health care and communication services were also detractors.

In the last quarter, our allocation and stock selection in consumer staples was the biggest contributor. On the flip side, allocation and stock selection in consumer discretionary was the biggest detractor, impacted by our holdings in the interest rate-sensitive autos segment.

At the holdings level, Lemon Tree Hotels and Cummins India were among the top contributors to performance last year. Cummins is one of the largest manufacturers of engines globally and within India it is a leading provider of back-up power generating units. A revival in infrastructure and real estate along with robust exports in India last year helped the company post robust revenue and earnings growth.

Conversely, Infosys and Tata Consultancy Services were among the biggest detractors and were hurt by softening demand from Western and international clients. Restaurant Brands Asia was also a detractor. While the company continues to grow well and execute on plans for network expansion, high inflation resulted in profit margin-performance being slightly behind investor expectation which negatively impacted performance.

Notable Portfolio Changes:

We continued to consolidate the portfolio and reduce the number of holdings in the fund in favor of companies which we think are more insulated from external headwinds and where growth expectations are reasonable. To this end, we exited Gujarat Fluorochemicals, a leading producer of fluoropolymers. The company has benefited from higher pricing for many of its manufactured products due to the pandemic restrictions in China but with China reopening we think some of those tailwinds will convert into headwinds.  

We initiated a position in Syngene International, a contract research service (CRS) provider. Syngene continues to benefit from greater outsourcing of research projects by big pharma globally. The company also recently got certification from the U.S. Food and Drug Administration (FDA) to commence operations of its biologics manufacturing facility, which would mark the beginning of its custom development and manufacturing operations (CDMO). The CDMO business will help Syngene deliver higher growth and diversify its business model, in our view.


We continue to remain cautious for the near-term outlook. While inflation has peaked and it seems like we are nearing the end of rate tightening globally, we expect rates are going to remain higher for longer and consequently it is going to have a negative impact on demand for goods and services globally. Reduced economic activity globally is going to have a negative impact on exports from India in the near to medium term. Amid low exports and higher rates in the developed world, the rupee may continue to have a depreciation bias unless oil prices decline.

Despite the external headwinds, we think the financial services sector in India continues to be in a very healthy state. Even if we have a slowdown we don’t expect private and public sector banks to have credit quality challenges which would mean any slowdown would be short lived and would not lead to market panic. Banks, however, are increasing deposit rates and these are becoming attractive from an investment perspective. We think this is likely to pose the biggest risk to markets in India in the near term given the fact that current equity valuations leave little room to absorb negative surprises.

India’s government will also shortly be presenting its budget and since there are general elections next year this event will take on greater importance. There are widespread expectations that the government will announce an increase in spending at the grass roots and rural level where large chunks of the population live. While this would be helpful in improving consumption, a higher-than-normal fiscal deficit will only heighten existing inflationary challenges. Another cause of concern relates to expectations that the government is likely to raise long-term capital gains tax on equity investments from the current 10% to 20%. If that were to happen it will likely create negative sentiment in the market at least in the interim.


Rolling 12 Month Returns For the period ended 31/12/2022 - I (Acc)
Name 2022 2021 2020 2019 2018 Inception Date
Matthews India Fund (USD)
-8.93% 24.00% 18.20% 2.66% -9.78% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-4.53% 24.08% 13.92% 8.53% -6.00%
Matthews India Fund (GBP)
2.53% 25.60% 14.19% -0.37% -4.76% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
6.87% 25.15% 10.68% 4.30% -0.23%

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.


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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