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 30/05/2023)



(as of 30/05/2023)


1 Day NAV Change

(as of 30/05/2023)


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 $21.39 million (30/04/2023)
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 30/04/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
4.15% 4.10% 2.18% 1.01% 21.75% 4.50% 8.75% 6.50% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
4.67% 2.45% 0.91% -0.97% 20.73% 7.40% 8.79% 6.33%
Matthews India Fund (GBP)
3.34% 2.72% -1.38% 2.18% 22.09% 6.64% 11.19% 8.82% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
2.78% 0.42% -2.92% -0.91% 20.77% 9.37% 11.12% 8.55%
As of 31/03/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews India Fund (USD)
0.65% -1.89% -1.89% -4.22% 25.33% 4.64% 8.80% 6.18% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
1.00% -3.59% -3.59% -6.93% 24.59% 7.22% 8.96% 5.96%
Matthews India Fund (GBP)
-1.53% -4.57% -4.57% 2.10% 25.47% 7.47% 11.08% 8.58% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-1.03% -5.54% -5.54% -0.92% 24.78% 10.13% 11.24% 8.36%
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 31/03/2023
Name 2023 2022 2021 2020 2019 Inception Date
Matthews India Fund (USD)
-4.22% 10.35% 86.27% -35.65% -0.99% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-6.93% 16.28% 78.72% -31.53% 7.00%
Matthews India Fund (GBP)
2.10% 15.77% 67.12% -31.83% 6.49% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-0.92% 22.14% 60.56% -28.25% 16.20%

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 30/04/2023)
Fund Benchmark
Number of Positions 48 101
Weighted Average Market Cap $39.8 billion $62.2 billion
Active Share 55.7 n.a.
P/E using FY1 estimates 22.7x 21.3x
P/E using FY2 estimates 18.7x 18.1x
Price/Cash Flow n.a. 14.1
Price/Book 3.9 3.3
Return On Equity 18.1 18.6
EPS Growth (3 Yr) 24.0% 23.2%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 30/04/2023)
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 30/04/2023)
Name Sector % Net Assets
HDFC Bank, Ltd. Financials 8.2
ICICI Bank, Ltd. Financials 7.2
Shriram Finance, Ltd. Financials 5.2
Infosys, Ltd. Information Technology 4.7
Neuland Laboratories, Ltd. Health Care 4.2
Hindustan Unilever, Ltd. Consumer Staples 4.0
Tata Consultancy Services, Ltd. Information Technology 3.9
Axis Bank, Ltd. Financials 3.4
IndusInd Bank, Ltd. Financials 3.3
TD Power Systems, Ltd. Industrials 3.2
TOTAL 47.3

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 30/04/2023)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 37.4 36.0 1.4
Consumer Discretionary 12.5 7.7 4.8
Information Technology 11.4 11.8 -0.4
Industrials 11.3 6.1 5.2
Health Care 10.3 3.6 6.7
Consumer Staples 9.4 10.1 -0.7
Materials 7.0 8.0 -1.0
Energy 2.5 10.9 -8.4
Communication Services 0.0 2.8 -2.8
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) 47.9 69.7 -21.8
Large Cap ($10B-$25B) 10.6 17.9 -7.3
Mid Cap ($3B-$10B) 23.1 11.9 11.2
Small Cap (under $3B) 20.3 0.5 19.8
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 March 2023

For the quarter ending 31 March 2023, the Matthews India Fund returned -1.89%, while its benchmark, the S&P Bombay Stock Exchange 100 Index, returned -3.59%.

Market Environment:

After 15 months of continuous monetary policy hikes, it seems the central banks are finally beginning to see the intended impact on inflationary headwinds globally. Consumer price inflation reported in the U.S. and in India for the month of March was better than expectations, and it came as no surprise that the Reserve Bank of India decided against further raising rates in its most recent monetary policy meeting. Despite the pause from the central bank, it would be foolhardy to arrive at a conclusion that there might not be further rate hikes.

March’s unseasonal rain along with predictions of El Nino during monsoon months suggests that India’s agricultural output will likely be challenging for the next 12 months which potentially can lead to higher food inflation. To complicate matters, OPEC seems determined to see higher oil prices which again implies higher food inflation—which have historically been correlated in India. We are also beginning to gradually see the impact of a global slowdown on India’s economy with year-on-year exports declining in the last few months. This, coupled with a slowdown in consumption in rural India and slowing auto sales, has meant that gross domestic product (GDP) growth has been coming down.

India’s government unveiled its budget for fiscal year 2023-2024, with a dramatic increase in infrastructure spending. This bodes well for GDP growth as the spending will likely create more jobs at the bottom of the pyramid.

On the bright side, India’s financial system continues to be resilient. Regional bank failures in the U.S highlighted the prudency that banking regulators in India have demonstrated over the year with respect to uniform guidelines for liquidity regardless of the size of bank. The saga of Adani Group over the last three months also highlighted the good work India’s regulators have done with respect to limiting individual group exposure on a particular bank.

Performance Contributors and Detractors:

At the sector level, our stock selection in industrials was the biggest contributor to the Fund’s relative performance. Additionally, our stock selections within health care, information technology (IT) and materials contributed to relative performance. However, our stock selections in financials, consumer staples and consumer discretionary detracted from performance.

At the individual holdings level, APL Apollo Tubes and Poly Medicure were among the top contributors to Fund performance. APL Apollo Tubes is the largest manufacturer of steel tubes used for construction in India. Its scale, distribution, and spread of stock keeping units (SKUs) are its biggest competitive advantage. APL Apollo recently launched new, innovative products for the first time which aim to bring down the construction time of any building and, in turn, create economic benefit for project owners. Poly Medicure is a medical products company with a predominant portion of its revenues coming from consumables used in health care. Poly Medicure is benefiting from a structural trend in India away from imported medical products in favor of domestically manufactured products.

Conversely, our holdings in Restaurant Brands Asia and in IndusInd Bank negatively impacted our performance. Restaurant Brands is a franchisee of Burger King in India. While there is tremendous opportunity for growth both in terms of same store sales and network expansion, its growth in the last quarter lagged investor expectations. Further, there is a fear that the private equity owner of Restaurant Brands is looking to exit which didn’t bode well for its price performance. IndusInd Bank didn’t perform well on the back of news flow around regional bank failures in the U.S. IndusInd Bank has a relatively weaker deposit franchise compared to its peers so in times of liquidity concerns, it does have a negative impact on IndusInd’s performance.

Notable Portfolio Changes:

We continued to reduce the number of holdings in the portfolio during the quarter and exited several positions, including Delhivery. Delhivery is a logistics services provider and is a new-age technology company with strong growth prospects. While logistics continues to be an exciting space, Delhivery seems to be struggling with internal execution issues. To further compound the problems our interaction with the company suggested that management was unwilling to acknowledge the issues it is facing and seemed to be haughty about its positioning in the market as provider of last resort. Given the lofty valuation, we decided to exit the stock. We also exited Zomato, a leading player in the food-delivery industry. It has become more aggressive, leading to potentially higher cash burn in an environment where incremental funding for young loss-making digital businesses would be difficult to come by. We also think Zomato’s recent acquisition of Blinkit, a hyperlocal delivery business, raises corporate governance concerns.

We initiated a position in Nestle India. Nestle global is focusing tremendously on growing its India business. The company has committed to bring new lines of product portfolio to India and to dramatically increase new investments in India. Further, Nestle India is pushing its distribution deeper in smaller towns and villages in the country which is leading to faster than industry growth for the company.


We expect global growth to continue to slow through the course of this year on the back of higher interest rates globally. We also think that given the chatter around de-dollarization, the U.S. Federal Reserve will likely raise rates higher for longer to preserve the reserve currency status for the dollar as much as possible, which can potentially push the U.S into recession and also lead to further slowdown in India.

Amid this macro backdrop, we continue to remain excited about growth prospects in India from a longer-term standpoint. The government’s actions over the past few years and its most recent financial budget is resulting in improved infrastructure across the country. On a recent visit to India, we found that travel from Delhi to Jaipur on a four-lane highway has cut down the journey time from five hours to three hours between the two large cities. Such productivity gains on the back of infrastructure development should attract more global companies to the country and bodes well for India’s long-term export growth prospects.

While we remain cautious on India’s near-term outlook, we are a little less worried compared to three months ago. Indian markets have underperformed over the last six months and we have seen some normalization in valuation. Equity risk premium which was signaling extreme ‘caution’ is also not as bad as it was.

Rolling 12 Month Returns For the period ended 31/03/2023 - I (Acc)
Name 2023 2022 2021 2020 2019 Inception Date
Matthews India Fund (USD)
-4.22% 10.35% 86.27% -35.65% -0.99% 30/06/2011
S&P Bombay Stock Exchange 100 Index (USD)
-6.93% 16.28% 78.72% -31.53% 7.00%
Matthews India Fund (GBP)
2.10% 15.77% 67.12% -31.83% 6.49% 30/06/2011
S&P Bombay Stock Exchange 100 Index (GBP)
-0.92% 22.14% 60.56% -28.25% 16.20%

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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