A focus on Asia—and providing compelling investment solutions for our clients—is what we believe distinguishes us among investment managers. Our insights into investment opportunities and risks are backed by proprietary research, a collaborative culture and 30 years of experience.
15/09/2023
Inception Date
13.47%
YTD Return (USD)
(as of 16/10/2026)
$16.51
NAV (USD)
(as of 16/10/2026)
+0.23
1 Day NAV Change
(as of 16/10/2026)
Seeks to achieve long term capital appreciation.
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.
Under normal market conditions, the Fund seeks to achieve its investment objective by investing, directly or indirectly, primarily (i.e., at least 65% of its total net assets) in equities of companies located in or with substantial ties to emerging market countries. Emerging Market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. In addition, the Fund may also invest in depositary receipts that are treated as emerging markets investments, including American, European and Global Depositary Receipts.
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.
| Inception Date | 15/09/2023 | |
| Fund Assets | $48.33 million (30/09/2026) | |
| Base Currency | USD | |
| ISIN: | LU2651608080 (USD) LU2651608163 (GBP) LU2922762906 (EUR) | |
| Bloomberg Symbol | MAEMIAU:LX (USD) MTASIAG:LX (GBP) MAEMRIA:LX (EUR) | |
| Benchmark | MSCI Emerging Markets Index | |
| Geographic Focus | Emerging Markets - Countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe | |
| SFDR Classification | Article 8 | |
| Management Fee | 0.75% | |
| Total Expense Ratio | 0.90% ( USD ) 0.90% ( GBP ) 0.90% ( EUR ) | |
| Objective | Seeks to achieve long term capital appreciation. |
| Strategy | Under normal market conditions, the Fund seeks to achieve its investment objective by investing, directly or indirectly, primarily (i.e., at least 65% of its total net assets) in equities of companies located in or with substantial ties to emerging market countries. Emerging Market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. In addition, the Fund may also invest in depositary receipts that are treated as emerging markets investments, including American, European and Global Depositary Receipts. |
| 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.
The risks associated with investing in the Fund can be found in the prospectus |
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.
Sources: Factset Research Systems, Inc.
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
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Not all countries are included in the benchmark index(es).
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.
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.
| 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.
Chief Investment Officer and Portfolio Manager
Sean Taylor is Chief Investment Officer and Portfolio Manager at Matthews. As Chief Investment Officer, Sean oversees the firm’s investment process and investment professionals and sets the research agenda for the investment team. Prior to joining the firm in October 2023, he was Chief Investment Officer APAC, Global Head of Emerging Markets Equity at DWS Group based in Hong Kong since he joined the company in 2013. From 2004 to 2011, he was an Investment Director at GAM, based in London and Dubai. From 1997 to 2004, he was at Societe Generale as Head of International and Emerging Markets. Sean has 30 years of experience, including more than a decade as CIO. He oversaw a number of emerging markets active strategies, including Latin America, India, China, Brazil, Russia as well as international and global strategies. He received his MBA from Manchester Business School and is a graduate of the Royal Military Academy, Sandhurst.
Portfolio Manager
Jeremy Sutch is a Portfolio Manager at Matthews. Prior to joining the firm in 2015, he was Director and Global Head of Emerging Companies at Standard Chartered Bank in Hong Kong from 2012 to 2015, responsible for the fundamental analysis of companies in Asia, with a particular focus on small- and mid-capitalization companies. From 2009 to 2012, he was Managing Director at MJP Capital in Hong Kong, which he co-founded. His prior experience has included managing small-cap equities at Indus Capital Advisors and serving as Head of Hong Kong Research for ABN AMRO Asia Securities. Jeremy earned an M.A. in French and History from the University of Edinburgh.
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.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The MSCI China A Onshore Index captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges. Index is for comparative purposes only and it is not possible to invest directly in an index.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization weighted small cap index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungry, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan Thailand, Turkey and United Arab Emirates.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.
Commentary
Period ended 30 September 2026
Summary
Market Review
Emerging markets experienced a more uneven quarter as higher oil prices, rising U.S. yields, geopolitical tensions, and trade uncertainty influenced investor sentiment. Performance varied across regions and sectors, with market leadership broadening beyond the AI-related companies that had driven earlier gains. Commodity-oriented markets benefited from firmer energy and metals prices, while technology-heavy markets faced valuation and positioning pressures.
Within Asia, South Korean equities were weighed down by a pullback in technology shares, despite continued semiconductor demand and export growth. Taiwan remained supported by AI infrastructure and semiconductor exports. China faced softer consumer demand, lower property prices, and slower industrial profits; however, equity markets responded positively to incremental policy support, with investor interest shifting toward Chinese internet platforms, financials, and Hong Kong-listed equities. Indian equities underperformed global markets during the quarter, with a sharp decline in September amid continued foreign institutional investor (FII) outflows, rupee weakness, elevated oil prices, and a hawkish tone from India’s central bank.
Outside of Asia, several commodity-oriented emerging markets benefited from higher prices, broadening market leadership beyond the narrow group of AI-related stocks that drove returns earlier in the year.
Performance
For the quarter ended September 30, 2026, the Emerging Markets Equity Fund returned -4.67%, (I Acc USD) while its benchmark, the MSCI Emerging Markets Index, returned -0.24% over the same period. The relative shortfall was driven primarily by stock selection.
Asia Pacific
Asia Pacific was the main source of relative weakness, driven by losses in South Korea and Taiwan technology holdings. China and selected Taiwan holdings provided partial offsets.
South Korea
South Korea detracted from performance as technology holdings sold off following strong earlier gains and investors reassessed the pace and valuation of AI-related investment. SK Square, an investment holding company with a principal asset in SK Hynix, fell -16%. Its indirect exposure to SK Hynix increased the Fund’s sensitivity to the Korean memory cycle. We sold the position during the quarter to reduce overlapping technology exposure and reallocated capital to opportunities in consumer and internet businesses with different earnings drivers.
Samsung Electro-Mechanics, a supplier of multilayer ceramic capacitors and semiconductor package substrates, declined -27%. Although quarterly operating trends remained supported by demand for higher-value components used in servers and data centers, the share price declined with the broader technology market in South Korea and we also exited the name to de-risk the portfolio. SK Hynix, a leading producer of memory and high-bandwidth memory for AI systems, pulled back by -24%. Although the holding detracted from absolute performance, the portfolio’s underweight position contributed positively on a relative basis.
Financial holdings partially offset the weakness in technology. Hana Financial Group, one of South Korea’s major diversified financial groups, gained 31% as rising rate expectations supported the outlook for margins and investment income. Within financials, Samsung Fire & Marine Insurance, the country’s largest non-life insurer, rose 17% as underwriting and investment results improved and its capital position remained sound.
Taiwan
Taiwan produced mixed results and was the largest country detractor. MediaTek, Taiwan’s leading fabless semiconductor company, gained 16% and contributed positively as earnings exceeded expectations and investors focused on its developing data-center and custom AI chip opportunities. Elite Material declined -8% as investors took profits across the AI supply chain despite continued growth in demand for high-end materials. The company is a primary beneficiary of AI servers and high-speed switch demand, with higher copper clad laminate (CCL) content in AI servers.
China and Hong Kong
Select holdings in China and Hong Kong helped offset weakness elsewhere in Asia, with financials and materials contributing positively. China Construction Bank, one of China’s largest state-owned commercial banks, gained 25% as investors responded to improving earnings quality, balance-sheet resilience, and its dividend profile. Additionally, the portfolio’s exposure to China consumer and internet businesses increased, where valuations and company-specific prospects appeared more attractive. Alibaba Group, the largest e-commerce platform company in China, also rose 14% on back of the recovery in its cloud division. Overall, our holdings there had a positive effect on performance.
India
India slightly detracted from performance, led by industrials. Thermax, an energy and environmental solutions company serving industrial customers, fell -35% after quarterly results reflected a provision for a legacy government engineering project, shipment delays and losses in selected renewable-energy activities. We remain patient and continue to monitor the completion of legacy projects, order quality and the company’s developing data-center cooling opportunity.
Africa and the Middle East
South Africa contributed positively, while underweights to several Gulf markets reduced the regional benefit. Valterra Platinum, one of the world’s largest producers of platinum-group metals, gained 22% following stronger first-half earnings, higher metals prices and an increased interim dividend. The company’s net-cash balance sheet and high-quality asset base remain central to the investment case.
Latin America
In Brazil, Petrobras, the integrated oil and gas producer with large low-cost deepwater assets, gained 30% as higher oil prices and quarterly earnings and production exceeded expectations.
Positioning
During the quarter, the portfolio’s exposure to Industrials, Information Technology and Financials was reduced, while increasing Consumer Discretionary and Materials. The largest country-level change was a reduction in South Korea, particularly in technology, alongside increased exposure to China internet and consumer opportunities.
We initiated positions in Sea Limited (Singapore) and Eternal Limited (India) to broaden the portfolio’s exposure to digital consumption. Sea Limited is a Southeast Asian consumer internet company with businesses spanning e-commerce, digital financial services and gaming. The investment case centers on Shopee’s market position, improving e-commerce profitability and the opportunity to deepen monetization through advertising, logistics and financial services. Eternal Limited, formerly Zomato, operates food delivery, quick commerce, going-out services, and restaurant supplies in India. The company provides exposure to the continued formalization of digital commerce, supported by its leading positions in food delivery and quick commerce, a strong balance sheet and improving profitability across its consumer platforms.
Outlook
We remain constructive on the medium-term outlook for emerging markets, while recognizing that markets may remain sensitive to U.S. monetary policy, energy prices, geopolitical developments, and trade policy. Corporate earnings remain healthy in many markets, while valuations continue to trade below developed-market levels. Domestic reforms and structural growth themes also continue to support earnings and economic activity.
In Asia, our recent company meetings across semiconductors, automation, renewable energy, artificial intelligence, and consumer industries reinforced our view that the opportunity set is broadening beyond a small group of market leaders. Continued investment in AI infrastructure, advanced semiconductors, optical communications, and data-center capacity is creating opportunities across the supply chain. Demand in Taiwan and South Korea remains supportive, while efforts to localize technology development in China may create longer-term opportunities despite near-term economic weakness. The Chinese consumer remains under pressure, and we expect to maintain a measured view given still-challenging conditions, while recognizing that sentiment and activity could improve. India offers relative stability, but higher oil prices are a more direct risk given the country’s import needs. We are also seeing opportunities emerge across Southeast Asia but remain selective.
By sector, we view industrials as an important structural earnings driver in the emerging markets, alongside AI and semiconductors, financials and commodities, as they benefit from re-shoring, supply-chain diversification and geopolitical realignment. As part of our diversified approach, we continue to balance AI exposure with financials, commodities and select Latin America opportunities.
Greater variation across countries, sectors, and companies should continue to create opportunities for disciplined security selection and thoughtful country sizing. We remain focused on balance-sheet quality, earnings durability, valuation, and company-specific catalysts, while maintaining flexibility as market leadership evolves.
Rolling 12 Month Returns For the period ended 30/09/2026 - I (Acc)
Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg