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 28/11/2023)



(as of 28/11/2023)


1 Day NAV Change

(as of 28/11/2023)


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 30/04/2010
Fund Assets $80.49 million (31/10/2023)
Base Currency USD
ISIN: LU0491818331 (USD) LU0594556648 (GBP) LU0491818174 (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
Fees & Expenses
Management Fee 0.75%
Total Expense Ratio As of 31/03/2022 0.90% ( USD ) 0.90% ( GBP ) 0.90% ( EUR )


  • Monthly
  • Quarterly
  • Calendar Year
  • Rolling 12 Month
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As of 31/10/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund (USD)
-3.90% -11.55% -5.10% 6.17% -9.29% -1.03% 1.51% 3.55% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
-4.22% -11.10% -0.84% 13.78% -1.70% 2.88% 3.31% 4.14%
Matthews Asia Dividend Fund (GBP)
-3.13% -6.47% -6.12% 0.41% -7.31% -0.11% 4.36% 5.53% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-3.66% -5.74% -1.70% 7.96% 0.40% 3.95% 6.25% 5.96%
Matthews Asia Dividend Fund (EUR)
-4.26% -8.25% -4.72% -1.10% -6.37% 0.22% n.a. -0.16% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
-4.06% -7.27% 0.12% 6.39% 1.53% 4.32% n.a. 3.32%
As of 30/09/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund (USD)
-3.25% -3.98% -1.24% 3.67% -7.83% -2.40% 2.11% 3.88% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
-2.44% -2.65% 3.52% 16.48% 0.06% 1.71% 4.04% 4.50%
Matthews Asia Dividend Fund (GBP)
0.10% -0.92% -3.08% -6.67% -6.45% -1.19% 4.95% 5.84% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
1.29% 1.40% 2.03% 6.53% 2.00% 3.06% 7.02% 6.31%
Matthews Asia Dividend Fund (EUR)
-0.77% -1.62% -0.48% -4.61% -4.71% -0.63% n.a. 0.53% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
0.01% 0.31% 4.35% 7.78% 3.53% 3.61% n.a. 4.03%
For the years ended December 31st
Name 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Matthews Asia Dividend Fund (USD)
-30.00% -1.75% 31.32% 10.66% -12.85% 33.49% 4.09% 3.87% -0.96% 12.26%
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)
-21.55% -0.44% 26.77% 7.36% -7.98% 21.75% 25.18% 9.10% 5.11% 9.70%
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%
Matthews Asia Dividend Fund (EUR)
-25.73% 6.39% 20.20% 13.02% -8.85% n.a. n.a. n.a. n.a. n.a.
MSCI All Country Asia Pacific Index (EUR)
-11.47% 6.31% 10.15% 21.94% -8.88% n.a. n.a. n.a. n.a. n.a.
For the period ended 30/09/2023
Name 2023 2022 2021 2020 2019 Inception Date
Matthews Asia Dividend Fund (USD)
3.67% -34.52% 15.32% 21.60% -6.96% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
16.48% -27.49% 18.61% 11.55% -2.60%
Matthews Asia Dividend Fund (GBP)
-6.67% -20.17% 9.90% 16.75% -1.48% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
6.53% -12.41% 13.72% 6.33% 3.07%
Matthews Asia Dividend Fund (EUR)
-4.61% -22.24% 16.65% 13.27% -1.12% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
7.78% -14.21% 20.01% 3.71% 3.77%

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 31/10/2023)
3.11% Dividend Yield

Source: FactSet Research Systems, Bloomberg, Matthews Asia

Portfolio Characteristics

(as of 31/10/2023)
Fund Benchmark
Number of Positions 55 1,545
Weighted Average Market Cap $69.1 billion $80.8 billion
Active Share 83.4 n.a.
P/E using FY1 estimates 15.1x 13.5x
P/E using FY2 estimates 13.6x 12.1x
Price/Cash Flow 9.6 7.4
Price/Book 2.0 1.5
Return On Equity 17.0 14.4
EPS Growth (3 Yr) 8.6% 15.9%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 31/10/2023)
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 31/10/2023)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 4.5
ITOCHU Corp. Industrials Japan 2.6
HDFC Bank, Ltd. Financials India 2.4
Tencent Holdings, Ltd. Communication Services China/Hong Kong 2.3
PT Bank Rakyat Indonesia Persero Tbk Financials Indonesia 2.3
ORIX Corp. Financials Japan 2.3
AIA Group, Ltd. Financials China/Hong Kong 2.3
Samsung Electronics Co., Ltd. Information Technology South Korea 2.3
Tokio Marine Holdings, Inc. Financials Japan 2.3
NetEase, Inc. Communication Services China/Hong Kong 2.2
TOTAL 25.5

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 31/10/2023)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 18.8 19.8 -1.0
Information Technology 16.8 17.9 -1.1
Consumer Discretionary 13.2 15.3 -2.1
Communication Services 10.9 8.1 2.8
Consumer Staples 10.7 5.4 5.3
Industrials 10.3 11.9 -1.6
Health Care 4.6 6.1 -1.5
Real Estate 4.5 3.4 1.1
Materials 3.4 7.0 -3.6
Utilities 3.4 2.0 1.4
Energy 1.8 3.0 -1.2
Cash and Other Assets, Less Liabilities 1.7 0.0 1.7

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

Country Fund Benchmark Difference
Japan 31.2 33.3 -2.1
China/Hong Kong 26.5 22.6 3.9
Australia 9.4 10.5 -1.1
India 8.1 10.2 -2.1
Taiwan 8.1 9.6 -1.5
South Korea 6.3 7.6 -1.3
Singapore 3.3 2.1 1.2
Indonesia 2.3 1.2 1.1
Thailand 1.7 1.2 0.5
Vietnam 1.3 0.0 1.3
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 1.7 0.0 1.7

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

Asset Type Fund
Common Equities and ADRs 98.3
Cash and Other Assets, Less Liabilities 1.7
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 42.7 55.9 -13.2
Large Cap ($10B-$25B) 24.8 23.4 1.4
Mid Cap ($3B-$10B) 21.1 19.4 1.7
Small Cap (under $3B) 9.7 1.3 8.4
Cash and Other Assets, Less Liabilities 1.7 0.0 1.7

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.


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  • 5 YEAR
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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



Period ended 30 September 2023

For the quarter ending 30 September 2023, the Matthews Asia Dividend Fund returned -3.98%, while its benchmark, the MSCI All Country Asia Pacific Index, returned -2.65%.

Market Environment:

The last quarter was a challenge for most major markets, both developed and emerging. Resilience in the U.S. fueled concerns that the Federal Reserve will sustain higher for longer interest rates and this pressured risk assets globally. In addition, a rise in oil prices and renewed strength in the U.S. dollar have worked against emerging markets. Investors are also starting to re-evaluate the chances of a liquidity-induced recession in developed economies which could hamper demand for emerging market-originated exports. In China, economic data continued to disappoint while negative news about the real estate sector re-emerged. On a more optimistic note, the cadence of policy announcements aimed at supporting China’s economy seems to suggest that the government is keen on getting its key sectors moving again. Elsewhere, India’s equity market performed strongly in the period helped by a robust macroeconomic backdrop, resilient corporate earnings and solid inflows.

Performance Contributors and Detractors:

At the regional level, the portfolio’s stock selection in China/Hong Kong was the largest detractor to relative returns in the period. Internet platforms such as and Tencent Holdings among some other economically sensitive holdings hurt performance. Stock selection in Japan was also negative as certain holdings across a variety of sectors fell throughout the quarter, and some of our holdings in India struggled to participate in that market’s move upward. On the other hand, stock selection in Australia was the biggest contributor to relative returns while stock selection in South Korea was also helpful as the portfolio’s more limited holdings declined less than the market on average, aided by a lack of exposure to areas such as those linked to electric vehicle batteries. In addition, the portfolio’s off-benchmark allocation to the frontier market of Vietnam was a top contributor to relative returns.

At the sector level, stock selection in financials and consumer discretionary weighed on relative performance. In contrast, an underweight and stock selection within information technology (IT) and stock selection in consumer staples contributed to performance.

At the holdings level, AIA Group was the largest detractor to total returns during the period. Although the company continued to deliver what we believe was robust value of new business growth in the first half, the stock has performed poorly in recent months. This is potentially due to concerns over the growth and margin profile of its expansion in China combined with overall fund flow in Asia equity markets negatively impacting the stock., a Japanese internet company that includes a price comparison platform as well as other services such as restaurant promotions, declined as results remained weaker than hoped. Fellow Japanese company Keyence, a leader in industrial automation and inspection equipment, also sputtered on earnings given the softer backdrop for automation demand and some areas of rising costs. Conversely, Vietnamese IT services company FPT Corp. was the biggest contributor to total returns as the company has been seeing reasonable earnings growth momentum, particularly within digital transformation. Australian refinery, distributor and retailer Ampol also gained amid decent results, despite a refinery outage, given growth in non-fuel and international earnings. Disco Corp., a Japanese leader in precision processing equipment for cutting, grinding and polishing in the technology industry, moved up further in part due to its exposure to higher growth areas such as generative artificial intelligence (AI) and power semiconductors.

Notable Portfolio Changes:

We exited Japanese life insurer Dai Ichi Life during the quarter. Although not expensive, we believe that the company has somewhat limited sustainable growth drivers and that these funds are better utilized elsewhere within the portfolio.


Questions remain over the economic outlook in the U.S. as markets digest the prospect that the Federal Reserve will maintain a policy of higher rates for longer. This could also impact certain Asian markets given they may have less scope for monetary easing while facing tight funding costs. China is still dealing with many challenges that shouldn’t be dismissed, including a soft property market, liquidity issues among developers, low consumer confidence and what appear to be dashed entrepreneurial spirits. This economic weakness may allow for some policy easing in China as demonstrated by recent moves. This, alongside significant household savings, provides a degree of comfort at a macroeconomic level. At a microeconomic level, weak sentiment toward the Chinese market, a reasonable base for earnings comparisons in 2024 and appealing valuations are also reasons to be constructive. In Japan, near-term projected earnings growth remains acceptable, and it is the combination of potentially better shareholder returns and the increase in inflation that justify some continued optimism. For the region more broadly, valuations are moderate. The MSCI Asia Pacific Index trades at 12.4x FY24 P/E with over 13% growth expected for next year on current estimates.  While this appears reasonably attractive, the macroeconomic backdrop remains uncertain and potentially volatile in our estimation. We continue to focus on keeping the portfolio invested in those companies that we believe can manage through such an environment as well as serve our clients well over the long term.

Rolling 12 Month Returns For the period ended 30/09/2023 - I (Acc)
Name 2023 2022 2021 2020 2019 Inception Date
Matthews Asia Dividend Fund (USD)
3.67% -34.52% 15.32% 21.60% -6.96% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
16.48% -27.49% 18.61% 11.55% -2.60%
Matthews Asia Dividend Fund (GBP)
-6.67% -20.17% 9.90% 16.75% -1.48% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
6.53% -12.41% 13.72% 6.33% 3.07%
Matthews Asia Dividend Fund (EUR)
-4.61% -22.24% 16.65% 13.27% -1.12% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
7.78% -14.21% 20.01% 3.71% 3.77%

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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