Matthews Asia Dividend Fund

  • 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


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 total return through capital appreciation and current income.


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.


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 26/08/2010
Fund Assets $125.95 million (30/04/2023)
Base Currency USD
ISIN: LU0491818414 (USD) LU0594556721 (GBP)
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
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2022 0.90% ( USD ) 0.90% ( 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 Asia Dividend Fund (USD)
-1.40% -6.03% 1.41% -9.74% 1.31% -2.59% 2.22% 4.32% 26/08/2010
MSCI All Country Asia Pacific Index (USD)
-1.03% -3.80% 3.77% -2.09% 5.39% 1.04% 3.96% 5.36%
Matthews Asia Dividend Fund (GBP)
-2.17% -7.32% -2.16% -9.19% 1.40% -0.70% 4.46% 6.13% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-2.64% -5.77% -0.69% -2.20% 5.51% 2.90% 6.21% 6.30%
As of 31/03/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund (USD)
1.96% 2.85% 2.85% -14.46% 4.56% -1.95% 2.89% 4.46% 26/08/2010
MSCI All Country Asia Pacific Index (USD)
3.24% 4.85% 4.85% -7.42% 8.55% 1.42% 4.57% 5.48%
Matthews Asia Dividend Fund (GBP)
-0.31% 0.01% 0.01% -9.33% 4.51% 0.60% 4.99% 6.37% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
1.08% 2.01% 2.01% -1.41% 8.66% 4.02% 6.74% 6.58%
For the years ended December 31st
Name 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Matthews Asia Dividend Fund (USD)
-29.98% -1.70% 31.20% 10.75% -12.91% 33.54% 4.07% 3.87% -1.00% 12.24%
MSCI All Country Asia Pacific Index (USD)
-16.92% -1.19% 20.07% 19.74% -13.25% 32.04% 5.21% -1.68% 0.29% 12.19%
Matthews Asia Dividend Fund (GBP)
-21.57% -0.43% 26.83% 7.42% -8.04% 21.83% 25.12% 9.19% 5.03% 9.72%
MSCI All Country Asia Pacific Index (GBP)
-6.45% -0.28% 16.36% 15.12% -7.86% 20.61% 25.50% 4.01% 6.53% 10.11%
For the period ended 31/03/2023
Name 2023 2022 2021 2020 2019 Inception Date
Matthews Asia Dividend Fund (USD)
-14.46% -15.08% 57.37% -15.89% -5.77% 26/08/2010
MSCI All Country Asia Pacific Index (USD)
-7.42% -9.22% 52.20% -11.84% -4.85%
Matthews Asia Dividend Fund (GBP)
-9.33% -10.88% 41.26% -10.93% 1.36% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-1.41% -4.87% 36.79% -7.35% 2.44%

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.


(as of 30/04/2023)
2.79% Dividend Yield

Source: FactSet Research Systems, Bloomberg, Matthews Asia

Portfolio Characteristics

(as of 30/04/2023)
Fund Benchmark
Number of Positions 58 1,488
Weighted Average Market Cap $65.2 billion $81.1 billion
Active Share 83.7 n.a.
P/E using FY1 estimates 16.9x 13.5x
P/E using FY2 estimates 14.5x 12.2x
Price/Cash Flow 11.0 7.5
Price/Book 2.3 1.5
Return On Equity 18.9 14.8
EPS Growth (3 Yr) 14.6% 14.4%

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 Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 4.0
Tencent Holdings, Ltd. Communication Services China/Hong Kong 2.8
PT Bank Rakyat Indonesia Persero Tbk Financials Indonesia 2.2
AIA Group, Ltd. Financials China/Hong Kong 2.2
Samsung Electronics Co., Ltd. Information Technology South Korea 2.2
Housing Development Finance Corp., Ltd. Financials India 2.1
Nissin Foods Holdings Co., Ltd. Consumer Staples Japan 2.1
ITOCHU Corp. Industrials Japan 2.0
Ajinomoto Co., Inc. Consumer Staples Japan 1.9
Disco Corp. Information Technology Japan 1.8
TOTAL 23.3

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
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 17.5 19.3 -1.8
Information Technology 16.2 17.0 -0.8
Consumer Discretionary 12.5 14.3 -1.8
Industrials 11.0 12.0 -1.0
Consumer Staples 10.2 5.9 4.3
Communication Services 10.0 8.6 1.4
Real Estate 6.2 3.8 2.4
Health Care 6.1 6.7 -0.6
Materials 3.2 7.4 -4.2
Utilities 1.7 2.1 -0.4
Energy 1.6 3.0 -1.4
Cash and Other Assets, Less Liabilities 3.9 0.0 3.9

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

Country Fund Benchmark Difference
Japan 31.9 32.5 -0.6
China/Hong Kong 26.3 24.0 2.3
Australia 9.3 11.2 -1.9
Taiwan 7.3 9.3 -2.0
India 6.9 8.7 -1.8
South Korea 5.3 7.6 -2.3
Singapore 3.0 2.2 0.8
Indonesia 2.2 1.3 0.9
Thailand 1.8 1.3 0.5
Vietnam 1.5 0.0 1.5
Bangladesh 0.8 0.0 0.8
Malaysia 0.0 0.9 -0.9
Philippines 0.0 0.5 -0.5
New Zealand 0.0 0.3 -0.3
Macau 0.0 0.2 -0.2
Cash and Other Assets, Less Liabilities 3.9 0.0 3.9

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

Asset Type Fund
Common Equities and ADRs 96.2
Cash and Other Assets, Less Liabilities 3.9
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 43.2 58.1 -14.9
Large Cap ($10B-$25B) 23.1 22.4 0.7
Mid Cap ($3B-$10B) 19.7 18.5 1.2
Small Cap (under $3B) 10.2 0.9 9.3
Cash and Other Assets, Less Liabilities 3.9 0.0 3.9

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.


  • 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


Siddharth  Bhargava photo
Siddharth Bhargava


Winnie  Chwang photo
Winnie Chwang



Currency Record Date Ex Date Reinvest Date Payment Date Income Distributions
USD 28/03/2023 29/03/2023 30/03/2023 05/04/2023 $0.099235
GBP 28/03/2023 29/03/2023 30/03/2023 05/04/2023 £0.120740
USD 13/12/2022 14/12/2022 15/12/2022 29/12/2022 $0.015310
GBP 13/12/2022 14/12/2022 15/12/2022 29/12/2022 £0.019889
USD 27/09/2022 28/09/2022 29/09/2022 05/10/2022 $0.093690
GBP 27/09/2022 28/09/2022 29/09/2022 05/10/2022 £0.134079
USD 27/06/2022 28/06/2022 29/06/2022 05/07/2022 $0.082894
GBP 27/06/2022 28/06/2022 29/06/2022 05/07/2022 £0.102622
USD 28/03/2022 29/03/2022 30/03/2022 05/04/2022 $0.065512
GBP 28/03/2022 29/03/2022 30/03/2022 05/04/2022 £0.076307
View History


The Fund may, at its discretion, pay dividends out of the capital or effectively out of capital in respect of the distribution shares. Dividends may be distributed out of gross income while all or part of the fees and expenses are paid out of capital, resulting in an increase in distributable income for the payment of dividends and, therefore, the Fund may effectively pay dividend out of capital. Payment of dividends out of capital and/or effectively out of capital represents a return or withdrawal of part of an investor's original investment, or from any capital gains attributable to that original investment. Any distribution may result in an immediate reduction of the net asset value per share of the Fund.

Please note that a positive distribution yield does not imply a positive return, and past yields are no guarantee of future yields. There is no guarantee that the Fund will pay or continue to pay distributions.

Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.

As of April 1, 2014, distributions for this class of the sub fund will pay gross income which may result in expenses being paid out of capital and thereby limit an investor’s potential to generate total return and income.


Period ended 31 March 2023

For the quarter ending 31 March 2023, the Matthews Asia Dividend Fund returned 2.85%, while its benchmark, the MSCI All Country Asia Pacific Index, returned 4.85%.

Market Environment:

The Asia Pacific region continued to recover in the first quarter with strength relatively broad based across markets as it appears that the U.S. dollar has begun to peak out. A reopening China moved higher as COVID restrictions were scrapped, as the property sector began to recover with easing liquidity, and as there is a low base for comparable earnings this year. Japan gained, with cyclicals in areas like information technology and industrials rallying, while Taiwan and South Korea moved higher as there is an ongoing inventory digestion in the technology sector.

India was a major exception as markets fell having entered the year at lofty valuations and as economic growth disappoints already high expectations. The domestic Hong Kong market also struggled as the pivotal property market remains weak and as exports declined markedly.

Performance Contributors and Detractors:

From a country perspective, stock selection in Japan was one of the largest detractors to relative performance during the quarter amid rallies in more cyclical areas that the portfolio is underweight in. Similarly, stock selection in China/Hong Kong detracted as select state-owned enterprises and reopening plays where the portfolio has limited exposure gained while poor earnings delivery from certain holdings hindered performance. Conversely, the portfolio benefited from positive stock selection in Australia because of solid earnings delivery from holdings and an underweight to banks.

At the sector level, stock selections in industrials and consumer discretionary were large detractors. In the case of the latter, disappointing earnings delivery came from certain portfolio holdings in domestic China/Hong Kong. On the other hand, financials was a top contributor as limited exposure to specific areas of commercial banks helped alongside a recovery in Asia Commercial Bank in Vietnam. Underweights to the energy and utilities sectors also boosted relative performance. 

Among individual holdings, a bottom contributor was as the e-commerce platform fell following concerns that its new subsidy regime for customers will impact margins while the overall market remains competitive. Chinese life science service company Pharmaron Beijing dropped as its controlling shareholders are looking to reduce their stake while earnings disappointed with biologics, cell gene therapy and new overseas manufacturing capabilities hampering profitability. Indian auto parts company Uno Minda also detracted from portfolio returns as, despite solid earnings growth, an expensive valuation of over 40x P/E and high capital expenditure plans may have weighed.

Conversely, Chinese internet platforms Alibaba and Tencent were the top contributors to the portfolio during the quarter. Alibaba gained as its cheap valuation was accompanied by a return to earnings growth with losses in local consumer services, international e-commerce and digital media all narrowing. We exited our position during the quarter given the stock’s lack of dividend and our preference for other internet platforms in China. Tencent rallied as its games offerings were more resilient than feared while advertising revenues are recovering and it further improved its ecosystem in areas like video. Australian education provider IDP Education moved higher as growth remains strong for the company as English language testing and student placement services bounce back.

Notable Portfolio Changes:

In the first quarter, we initiated a significant number of new positions in the portfolio and funded these through exiting a large portion of the portfolio that we entered the year with. This created far greater turnover in the portfolio than we would anticipate going forward as we are long-term investors that believe that patience is an important component to returns.

At a country level, these alterations resulted in a major reduction in Vietnam and China, with increases in Japan, Hong Kong and Taiwan. At a sector level, consumer discretionary has been meaningfully reduced alongside industrials, with financials, information technology and consumer staples all rising.

We have attempted to increase the overall portfolio dividend yield, improve the average quality of companies held, and reduce volatility while maintaining sustainable growth following disappointing performance in recent times for the portfolio. As an example, we have included what we deem to be leading businesses with visible growth at reasonable prices, such as AIA Group, Delta Electronics, Keyence, HDFC Ltd., Tata Consultancy Services, Yili, Yum China, and CSL Ltd. To fund this, exits have been made in lower quality businesses such as Kido Group and IHI Corp., non-dividend payers such as Alibaba and Baidu, and overly expensive holdings such as IDP Education and Rakus.


A return to stronger growth for the Chinese economy and company earnings is likely this year. The government has attempted to take a more pro-growth and pro-business stance in policy making and this should help alongside the benefits of reopening and a low base effect. Further, relatively low inflation allows for more policy easing if required. In Japan, questions remain around how sticky inflation is likely to be, particularly as spring wage negotiations may have created a jump in salaries. This has potential implications for yield curve control policies and nominal growth while there is also talk of improving capital efficiency among lowly-valued companies. More broadly, a possible peak in the U.S. dollar may be upon us while valuations for the Asian Pacific region are a relatively modest 13.2x P/E*. These are reasonably supportive factors, however, the increased possibility of a recession in the U.S. driven by the monetary tightening cycle does raise the prospect of general risk aversion and weaker exports. Against what may remain a volatile backdrop, we believe that a quality approach that balances dividend yields and dividend growth should enable the portfolio to deliver for clients over the cycle.

*Valuation as of April 6, 2023

Rolling 12 Month Returns For the period ended 31/03/2023 - I (Dist)
Name 2023 2022 2021 2020 2019 Inception Date
Matthews Asia Dividend Fund (USD)
-14.46% -15.08% 57.37% -15.89% -5.77% 26/08/2010
MSCI All Country Asia Pacific Index (USD)
-7.42% -9.22% 52.20% -11.84% -4.85%
Matthews Asia Dividend Fund (GBP)
-9.33% -10.88% 41.26% -10.93% 1.36% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-1.41% -4.87% 36.79% -7.35% 2.44%

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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