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Matthews Pacific Tiger Fund

Snapshot
  • Seeks alpha in Asia’s emerging economies by capitalizing on the rising Asia consumer
  • High-conviction equity portfolio focused on sustainable growth companies
  • All-cap fundamental approach driven by on-the-ground, proprietary research

30/04/2010

Inception Date

6.10%

YTD Return (USD)

(as of 02/12/2024)

$19.13

NAV (USD)

(as of 02/12/2024)

+0.11

1 Day NAV Change

(as of 02/12/2024)

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 equities of companies located in Asia, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, Asia includes China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

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.

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

Fund Facts
Inception Date 30/04/2010
Fund Assets $156.15 million (31/10/2024)
Base Currency USD
ISIN: LU0491816475 (USD) LU0594555756 (GBP) LU1576347550 (JPY)
Bloomberg Symbol MATAPTI:LX (USD) MATAPGI:LX (GBP) MPACTIJ:LX (JPY)
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia Ex Japan: Consists of all countries and markets in Asia, excluding Japan but including all developed, emerging and frontier countries and markets in Asia
SFDR Classification Article 8
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio 0.90% ( USD ) 0.90% ( GBP ) 0.90% ( JPY )

Performance

  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
    Returns
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As of 31/10/2024
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
-4.83% 3.61% 8.21% 14.56% -8.20% 1.58% 3.07% 4.72% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
-4.46% 5.68% 16.10% 28.58% -0.99% 4.99% 5.02% 5.35%
Matthews Pacific Tiger Fund (GBP)
-1.74% 2.49% 6.04% 7.30% -6.33% 1.53% 5.23% 6.16% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
-0.32% 5.58% 15.12% 21.36% 1.15% 5.13% 7.34% 6.74%
Matthews Pacific Tiger Fund (JPY)
1.94% 5.40% 16.81% 15.92% 1.24% 8.83% n.a. 7.63% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
1.74% 6.99% 25.44% 29.33% 9.05% 12.44% n.a. 10.22%
As of 30/09/2024
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Pacific Tiger Fund (USD)
8.64% 6.00% 13.70% 15.62% -5.90% 2.85% 3.76% 5.10% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
8.47% 10.55% 21.52% 29.39% 0.98% 6.90% 5.71% 5.72%
Matthews Pacific Tiger Fund (GBP)
6.81% 0.00% 7.91% 5.73% -5.78% 1.12% 5.74% 6.34% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
6.28% 4.18% 15.49% 17.74% 1.16% 5.10% 7.73% 6.81%
Matthews Pacific Tiger Fund (JPY)
6.49% -5.90% 14.59% 10.47% 1.99% 8.74% n.a. 7.45% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
6.56% -1.70% 23.29% 24.03% 9.70% 13.06% n.a. 10.09%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews Pacific Tiger Fund (USD)
-5.25% -21.59% -3.08% 30.48% 11.18% -10.71% 39.47% -0.29% -1.91% 11.22%
MSCI All Country Asia ex Japan Index (USD)
6.34% -19.36% -4.46% 25.36% 18.52% -14.12% 42.08% 5.76% -8.90% 5.11%
Matthews Pacific Tiger Fund (GBP)
-10.37% -12.16% -1.74% 25.96% 7.87% -5.71% 27.14% 19.96% 3.14% 18.00%
MSCI All Country Asia ex Japan Index (GBP)
0.34% -9.19% -3.58% 21.49% 13.94% -8.78% 29.78% 26.15% -3.63% 11.65%
Matthews Pacific Tiger Fund (JPY)
1.68% -10.24% 8.30% 23.94% 9.79% -12.83% n.a. n.a. n.a. n.a.
MSCI All Country Asia ex Japan (JPY)
13.62% -7.60% 6.56% 19.10% 17.39% -16.36% n.a. n.a. n.a. n.a.
For the period ended 30/09/2024
Name 2024 2023 2022 2021 2020 Inception Date
Matthews Pacific Tiger Fund (USD)
15.62% 2.13% -29.43% 19.88% 15.22% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
29.39% 11.28% -28.48% 14.73% 18.16%
Matthews Pacific Tiger Fund (GBP)
5.73% -8.02% -14.01% 14.31% 10.60% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
17.74% 1.78% -13.61% 10.00% 12.63%
Matthews Pacific Tiger Fund (JPY)
10.47% 5.34% -8.84% 26.99% 12.84% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
24.03% 14.72% -7.22% 21.30% 15.38%

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 31/10/2024)
Fund Benchmark
Number of Positions 85 1,071
Weighted Average Market Cap $169.0 billion $176.3 billion
Active Share 59.1 n.a.
P/E using FY1 estimates 14.7x 13.7x
P/E using FY2 estimates 12.8x 12.4x
Price/Cash Flow 11.8 9.3
Price/Book 2.4 1.8
Return On Equity 15.7 15.1
EPS Growth (3 Yr) 18.1% 12.9%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 30/09/2024)
-6.69%
Alpha
1.02
Beta
86.44%
Upside Capture
113.09%
Downside Capture
-0.47
Sharpe Ratio
-1.85
Information Ratio
3.72%
Tracking Error
96.64

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

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 31/10/2024)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 9.6
Tencent Holdings, Ltd. Communication Services China/Hong Kong 4.7
Alibaba Group Holding, Ltd. Consumer Discretionary China/Hong Kong 3.5
Meituan Class B Consumer Discretionary China/Hong Kong 3.3
ICICI Bank, Ltd. Financials India 3.2
SK Hynix, Inc. Information Technology South Korea 2.6
Hon Hai Precision Industry Co., Ltd. Information Technology Taiwan 2.6
Quanta Computer, Inc. Information Technology Taiwan 2.5
China Merchants Bank Co., Ltd. Financials China/Hong Kong 2.5
HDFC Bank, Ltd. Financials India 2.1
TOTAL 36.6

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 31/10/2024)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Information Technology 27.4 26.8 0.6
Financials 24.7 21.3 3.4
Consumer Discretionary 19.0 14.4 4.6
Communication Services 9.4 9.7 -0.3
Industrials 7.8 7.4 0.4
Health Care 3.6 3.6 0.0
Real Estate 3.1 2.3 0.8
Consumer Staples 1.6 4.0 -2.4
Energy 1.3 3.4 -2.1
Utilities 0.9 2.7 -1.8
Materials 0.5 4.2 -3.7
Cash and Other Assets, Less Liabilities 0.8 0.0 0.8

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 35.0 36.0 -1.0
Taiwan 20.6 21.6 -1.0
India 18.6 21.4 -2.8
South Korea 8.5 11.5 -3.0
Singapore 5.4 3.6 1.8
Vietnam 2.9 0.0 2.9
Philippines 2.5 0.6 1.9
Indonesia 2.2 1.9 0.3
Malaysia 2.1 1.6 0.5
Thailand 1.1 1.7 -0.6
Macau 0.4 0.1 0.3
Cash and Other Assets, Less Liabilities 0.8 0.0 0.8

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

Asset Type Fund
Common Equities and ADRs 99.3
Cash and Other Assets, Less Liabilities 0.8
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 71.1 63.9 7.2
Large Cap ($10B-$25B) 16.6 20.6 -4.0
Mid Cap ($3B-$10B) 10.8 15.0 -4.2
Small Cap (under $3B) 0.7 0.5 0.2
Cash and Other Assets, Less Liabilities 0.8 0.0 0.8

Source: FactSet Research Systems.

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.

ESG Characteristics

(as of 30/09/2024)
  • Business Involvement
  • Sustainability Attributes
Name Fund Benchmark Difference
Controversial Weapons
Fund Coverage: 99% Benchmark Coverage: 100%
0.0 0.5 -0.5
Tobacco
Fund Coverage: 99% Benchmark Coverage: 99%
0.0 0.4 -0.4
Name Fund Benchmark Difference
UN Global Compact Violators
Fund Coverage: 100% Benchmark Coverage: 100%
0.0 0.8 -0.8
Board Diversity
Fund Coverage: 100% Benchmark Coverage: 100%
20.8 20.4 0.4

Board Diversity: Represents the weighted average ratio of female board members in investee companies.
Tobacco: Represents companies that generate more than 5% of revenue from tobacco manufacturing exposure to or production or that generate more than 50% of revenue from tobacco retail. 
UN Global Compact Violators: Represents companies that have been assessed as failing to comply with the 10 United Nations Global Compact Principles by ISS-ESG Norms-Based Research. Different ESG research providers may come to different conclusions on the severity of the violation.
Controversial weapons include companies with involvement in the following: anti-personnel mines; biological and chemical weapons; cluster weapons; depleted uranium; nuclear weapons and white phosphorus. A company is excluded if it is directly involved in the production, selling and/or distribution of (parts of) controversial weapons and this involvement concerns the core weapon system, or components/services of the core weapon system that are tailor-made and essential for the lethal use of the weapon.

Source: Sustainalytics, Factset, MSCI, Matthews Asia.

GHG Intensity

(as of 30/09/2024)

Fund Coverage: 99%; Benchmark Coverage: 99% as of 30/09/2024

GHG Intensity: Represents the normalized portfolio’s total weighted average (scope 1 + scope 2) carbon emissions intensity, using the most recently available data (emissions data from 2020, 2021). Carbon intensity represents the issuer’s total carbon emissions per EUR million of revenue (tCO2e divided by EUR million in revenue).

Source: Sourced from ISS ESG. Where not covered by external data providers, we have tried to source these data points.

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 03/02/2021)

View the Report

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.

The Morningstar Analyst Rating™ is subjective in nature and reflects Morningstar's current expectations of future behavior of the fund. Morningstar does not guarantee that a fund will perform in line with its Rating. Likewise, the Rating should not be seen as a guarantee/assessment of the creditworthiness of a fund or its underlying securities and should not be used as the sole basis for making any investment decisions.

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

Sean  Taylor photo
Sean Taylor

Lead Manager

Inbok  Song photo
Inbok Song

Lead Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Andrew  Mattock, CFA photo
Andrew Mattock, CFA

Co-Manager

Peeyush  Mittal, CFA photo
Peeyush Mittal, CFA

Co-Manager

Jeremy  Sutch, CFA photo
Jeremy Sutch, CFA

Co-Manager

Commentary

Period ended 30 September 2024

Market Environment

  • Many markets in Asia performed strongly despite volatility generated by concerns over a U.S. slowdown, China’s economy and rising interest rates in Japan. Toward the end of the quarter, the Federal Reserve’s 50 basis point (O.50%) interest rate cut, and expectations of further cuts, boosted markets.
  • India’s equity market delivered a robust performance supported by earnings growth. The market is expensive but economic growth rates remain high. Following the formation of a coalition government after the election there were also signs that growth is becoming more balanced to include services and consumption as well as infrastructure and industry.
  • In North Asia, Taiwan’s technology-heavy market was challenged despite the potential growth opportunities that artificial intelligence (AI)-linked segments offer, in part as prior performance had been strong and as questions arose over valuations. South Korea’s market was a weak performer with semiconductor stocks particularly soft.
  • China’s economy continued to struggle with weak consumer sentiment and declining property prices. Toward the end of the quarter its markets rallied after the central bank launched a broad stimulus package with measures to add liquidity, aid the property market, and boost equity markets.

Contributors and Detractors

  • For the quarter ended September 30, 2024, the Pacific Tiger Fund returned 6.00% (I Acc USD), while its benchmark, the MSCI All Country Asia ex Japan Index, returned 10.55% over the same period.
  • On a country basis, the top three contributors to relative performance were Singapore due to stock selection, Macau due to zero allocation and India due to stock selection. The top three detractors were South Korea and Taiwan due to stock selection and Thailand due to an underweight allocation.
  • On a sector basis, the top three contributors to relative performance were communication services due to stock selection, and consumer discretionary and health care due to an overweight allocation. The top three detractors were financials, information technology (IT) and industrials due to stock selection.
  • The largest contributors to absolute performance included Alibaba Group, the largest e-commerce platform company in China, Ping An Insurance Group Co. of China, a Chinese insurance company, and Tencent Holdings, a Chinese online gaming and social media conglomerate. The top three detractors included Samsung Electronics, a South Korean semiconductor and consumer electronics maker, SK Hynix, a Korean semiconductor company, and Hyundai Motor, a Korean automotive manufacturer.

Outlook

  • The Fed’s rate cut will, we think, provide an impetus for a number of central banks in Asia to cut their own rates which should be favorable for businesses and economies. We think this is a significant turning point particularly for economies in the region. Fed rate cuts typically also bring downward pressure on the U.S. dollar which is often also a tailwind.
  • For some markets, U.S. rates cuts will have less of an impact, in our view. Taiwanese equities, for example, have already benefitted from the AI boom and valuations are now a little stretched. In China, it will take time to see if the stimulus measures provide a sustainable catalyst for recovery. Many companies are showing resilience but earnings projections are changeable and some stocks may become attractive while others become expensive. 
  • We expect volatility to continue across the region, particularly as we approach and pass through the U.S. election. Further out, we see opportunities for broader geographical growth especially in Southeast Asia where we believe economies and markets will benefit from U.S. rate cuts.

 

Rolling 12 Month Returns For the period ended 30/09/2024 - I (Acc)
Name 2024 2023 2022 2021 2020 Inception Date
Matthews Pacific Tiger Fund (USD)
15.62% 2.13% -29.43% 19.88% 15.22% 30/04/2010
MSCI All Country Asia ex Japan Index (USD)
29.39% 11.28% -28.48% 14.73% 18.16%
Matthews Pacific Tiger Fund (GBP)
5.73% -8.02% -14.01% 14.31% 10.60% 28/02/2011
MSCI All Country Asia ex Japan Index (GBP)
17.74% 1.78% -13.61% 10.00% 12.63%
Matthews Pacific Tiger Fund (JPY)
10.47% 5.34% -8.84% 26.99% 12.84% 27/03/2017
MSCI All Country Asia ex Japan (JPY)
24.03% 14.72% -7.22% 21.30% 15.38%

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. 

Index Definitions