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Matthews Asia Dividend Fund

Snapshot
  • Total return strategy seeks to access the growth of Asia Pacific with lower volatility
  • Unconstrained all-cap portfolio with a quality bias
  • Flexible approach offers participation in both growth and value markets

30/04/2010

Inception Date

-2.20%

YTD Return (USD)

(as of 19/04/2024)

$17.32

NAV (USD)

(as of 19/04/2024)

-0.24

1 Day NAV Change

(as of 19/04/2024)

Objective

Seeks total return through capital appreciation and current income.

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 income-paying publicly traded common stocks, preferred stocks, convertible preferred stocks and other equity-related instruments of companies located in the Asia Pacific region, 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 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. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends.

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 $65.88 million (31/03/2024)
Base Currency USD
ISIN: LU0491818331 (USD) LU0594556648 (GBP) LU0491818174 (EUR)
Bloomberg Symbol MATAADI:LX (USD) MATAAIA:LX (GBP) MAASDIE:LX (EUR)
Benchmark MSCI All Country Asia Pacific Index
Geographic Focus Asia Pacific: Consists of all countries and markets in Asia, as well as Australia and New Zealand including all developed, emerging and frontier countries and markets in Asia
SFDR Classification Article 8
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 30/09/2023 0.90% ( USD ) 0.90% ( GBP ) 0.90% ( EUR )

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 Asia Dividend Fund (USD)
2.43% 2.54% 2.54% 4.67% -8.74% 0.11% 3.20% 4.38% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
2.82% 5.13% 5.13% 12.11% -1.96% 4.80% 5.30% 5.29%
Matthews Asia Dividend Fund (GBP)
2.42% 3.15% 3.15% 2.42% -6.12% 0.81% 6.07% 6.06% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
2.96% 6.09% 6.09% 9.73% 0.96% 5.45% 8.26% 6.82%
Matthews Asia Dividend Fund (EUR)
2.60% 4.84% 4.84% 5.14% -6.25% 0.87% n.a. 1.45% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
3.02% 7.53% 7.53% 12.77% 0.84% 5.62% n.a. 5.37%
As of 31/03/2024
Annualized Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund (USD)
2.43% 2.54% 2.54% 4.67% -8.74% 0.11% 3.20% 4.38% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
2.82% 5.13% 5.13% 12.11% -1.96% 4.80% 5.30% 5.29%
Matthews Asia Dividend Fund (GBP)
2.42% 3.15% 3.15% 2.42% -6.12% 0.81% 6.07% 6.06% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
2.96% 6.09% 6.09% 9.73% 0.96% 5.45% 8.26% 6.82%
Matthews Asia Dividend Fund (EUR)
2.60% 4.84% 4.84% 5.14% -6.25% 0.87% n.a. 1.45% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
3.02% 7.53% 7.53% 12.77% 0.84% 5.62% n.a. 5.37%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews Asia Dividend Fund (USD)
4.98% -30.00% -1.75% 31.32% 10.66% -12.85% 33.49% 4.09% 3.87% -0.96%
MSCI All Country Asia Pacific Index (USD)
11.81% -16.92% -1.19% 20.07% 19.74% -13.25% 32.04% 5.21% -1.68% 0.29%
Matthews Asia Dividend Fund (GBP)
-0.71% -21.55% -0.44% 26.77% 7.36% -7.98% 21.75% 25.18% 9.10% 5.11%
MSCI All Country Asia Pacific Index (GBP)
5.50% -6.45% -0.28% 16.36% 15.12% -7.86% 20.61% 25.50% 4.01% 6.53%
Matthews Asia Dividend Fund (EUR)
1.35% -25.73% 6.39% 20.20% 13.02% -8.85% n.a. n.a. n.a. n.a.
MSCI All Country Asia Pacific Index (EUR)
8.02% -11.47% 6.31% 10.15% 21.94% -8.88% n.a. n.a. n.a. n.a.
For the period ended 31/03/2024
Name 2024 2023 2022 2021 2020 Inception Date
Matthews Asia Dividend Fund (USD)
4.67% -14.53% -15.03% 57.38% -15.95% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
12.11% -7.42% -9.22% 52.20% -11.84%
Matthews Asia Dividend Fund (GBP)
2.42% -9.29% -10.92% 41.26% -10.95% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
9.73% -1.41% -4.87% 36.79% -7.35%
Matthews Asia Dividend Fund (EUR)
5.14% -12.65% -10.30% 47.09% -13.81% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
12.77% -5.19% -4.11% 42.10% -9.78%

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.

Yield

(as of 31/03/2024)
2.87% Dividend Yield

Source: FactSet Research Systems, Bloomberg, Matthews Asia

Portfolio Characteristics

(as of 31/03/2024)
Fund Benchmark
Number of Positions 53 1,464
Weighted Average Market Cap $90.5 billion $107.5 billion
Active Share 82.7 n.a.
P/E using FY1 estimates 16.0x 14.8x
P/E using FY2 estimates 14.2x 13.3x
Price/Cash Flow 10.2 9.5
Price/Book 2.1 1.7
Return On Equity 17.5 13.8
EPS Growth (3 Yr) 8.9% 13.4%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 31/03/2024)
-7.33%
Alpha
0.89
Beta
75.40%
Upside Capture
110.33%
Downside Capture
-0.71
Sharpe Ratio
-1.18
Information Ratio
5.72%
Tracking Error
88.50

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

Sources: Zephyr StyleADVISOR

Top 10 Holdings

(as of 31/03/2024)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 5.1
Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.0
Tokio Marine Holdings, Inc. Financials Japan 2.8
ITOCHU Corp. Industrials Japan 2.7
ORIX Corp. Financials Japan 2.6
HDFC Bank, Ltd. Financials India 2.6
Samsung Electronics Co., Ltd. Information Technology South Korea 2.4
Suzuki Motor Corp. Consumer Discretionary Japan 2.3
Macquarie Korea Infrastructure Fund Financials South Korea 2.2
Delta Electronics, Inc. Information Technology Taiwan 2.1
TOTAL 27.8

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
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 19.6 19.4 0.2
Information Technology 18.2 20.5 -2.3
Consumer Discretionary 13.7 14.9 -1.2
Consumer Staples 9.8 4.7 5.1
Communication Services 9.4 7.6 1.8
Industrials 8.6 12.5 -3.9
Real Estate 4.5 3.2 1.3
Utilities 4.2 2.1 2.1
Health Care 3.5 5.7 -2.2
Materials 3.4 6.5 -3.1
Energy 2.0 3.0 -1.0
Cash and Other Assets, Less Liabilities 3.2 0.0 3.2

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

Country Fund Benchmark Difference
Japan 31.4 34.9 -3.5
China/Hong Kong 23.5 18.4 5.1
Australia 10.0 10.7 -0.7
Taiwan 9.1 11.0 -1.9
India 7.9 11.1 -3.2
South Korea 6.3 8.1 -1.8
Singapore 3.3 2.0 1.3
Indonesia 2.0 1.2 0.8
Vietnam 1.7 0.0 1.7
Thailand 1.6 1.0 0.6
Malaysia 0.0 0.9 -0.9
Philippines 0.0 0.4 -0.4
New Zealand 0.0 0.3 -0.3
Macau 0.0 0.1 -0.1
Cash and Other Assets, Less Liabilities 3.2 0.0 3.2

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

Asset Type Fund
Common Equities and ADRs 96.8
Cash and Other Assets, Less Liabilities 3.2
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 51.9 63.2 -11.3
Large Cap ($10B-$25B) 13.3 20.9 -7.6
Mid Cap ($3B-$10B) 20.1 15.4 4.7
Small Cap (under $3B) 11.4 0.5 10.9
Cash and Other Assets, Less Liabilities 3.2 0.0 3.2

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.

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

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

Robert J. Horrocks, PhD photo
Kenneth  Lowe, CFA photo
Kenneth Lowe, CFA

Lead Manager

Elli  Lee photo
Elli Lee

Co-Manager

Siddharth  Bhargava photo
Siddharth Bhargava

Co-Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Commentary

Period ended 31 March 2024

Market Environment

  • The first quarter of the year was a period of contrast across markets in Asia. In particular, markets linked to technology, communication services and the global supply chains of semiconductors and artificial intelligence (AI) benefited while other interest-rate sensitive areas were held back by a reset in expectations as to the trajectory of U.S. Federal Reserve cuts. In terms of markets, Japan, Taiwan and India were the strongest performing markets while China/Hong Kong struggled. 
  • Japan was the best performing market in Asia as well globally in the first quarter. Larger payouts to minority shareholders and the robust buyback of shares have allowed returns on equity (ROE) to be maintained far above what the country’s GDP growth would imply. The Bank of Japan’s recent decision to end its negative interest rate policy is a key signal that the country’s growth momentum is real while monetary policy is set to remain accommodative.
  • India outperformed the broad emerging markets though there was some consolidation over concerns regarding elevated valuations. Unique characteristics underpinning India’s elevated valuations include having one of the world’s highest nominal GDP growth rates supported by higher-than-market earnings growth and a long runway of powerful demographics and wage growth.
  • Taiwan did well thanks to its exposure to global supply chains in technology. Its strong ties to the rapidly growing contribution of generative AI to economies and world trade helped.
  • Chinese stocks were volatile in the first quarter but rebounded from January’s sell-off as investors weighed positive statements from the Chinese government regarding its 5% GDP growth target, efforts to underpin the local stock markets via ETF purchases and green-shoots of improvement in corporate earnings revisions. Nevertheless, the market still ended the period in negative territory. 

Contributors and Detractors

  • For the quarter ended March 31, 2024, the Asia Dividend Fund returned 2.54%, (I Acc USD) while its benchmark, the MSCI All Country Asia Pacific Index, returned 5.13% over the same period.
  • The top three contributors to relative performance, on a country basis, were Australia due to stock selection, Vietnam due to an off-benchmark position and Indonesia due to stock selection. The top three detractors to relative performance were Japan and India due to stock selection and China/Hong Kong due to an overweight allocation.
  • The top three contributors to relative performance, on a sector basis, were materials due to an underweight allocation, and information technology (IT) and communication services due to stock selection. The top three detractors to relative performance were financials, consumer discretionary and real estate due to stock selection.
  • By individual holdings, the largest contributors to absolute performance during the quarter included Taiwan Semiconductor Manufacturing Company, a leading Taiwanese chip manufacturer, Disco, a Japanese semiconductor equipment manufacturer and Tokio Marine Holdings, a Japanese insurance company. The top three detractors to performance included Guangdong Investment, a Chinese infrastructure company, AIA Group, an insurance services provider, and HDFC Bank, a leading Indian bank and financial services company.

Outlook

  • The outlook for the U.S. economy and the Federal Reserve’s pace of interest rate adjustments remains an input in determining the pathway for markets in the near term, particularly with regards to its impact on currencies as inflation appears somewhat sticky and economic data robust. Any weakening of the U.S. dollar may be helpful for risk assets such as emerging markets.
  • Within Asia, we continue to remain concerned around some of the short and medium-term challenges that China faces including private sector and consumer sentiment, the weak property market, and geopolitical tensions. However, market expectations appear downbeat and valuations are reasonable, potentially providing some support.
  • Additionally, while we expect some consolidation in Japanese equities, recent structural improvements in capital allocation should lead to an equal structural re-rating in expected stock multiples in our view.
  • For the region broadly, valuations appear reasonable, and earnings growth is expected to be robust. 

 

Rolling 12 Month Returns For the period ended 31/03/2024 - I (Acc)
Name 2024 2023 2022 2021 2020 Inception Date
Matthews Asia Dividend Fund (USD)
4.67% -14.53% -15.03% 57.38% -15.95% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
12.11% -7.42% -9.22% 52.20% -11.84%
Matthews Asia Dividend Fund (GBP)
2.42% -9.29% -10.92% 41.26% -10.95% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
9.73% -1.41% -4.87% 36.79% -7.35%
Matthews Asia Dividend Fund (EUR)
5.14% -12.65% -10.30% 47.09% -13.81% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
12.77% -5.19% -4.11% 42.10% -9.78%

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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