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 28/03/2023)



(as of 28/03/2023)


1 Day NAV Change

(as of 28/03/2023)


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 $125.18 million (28/02/2023)
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 28/02/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund (USD)
-6.48% 1.43% 0.95% -20.53% 0.28% -2.76% 2.90% 4.24% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
-5.84% 1.35% 1.57% -10.80% 3.12% 0.35% 4.32% 4.56%
Matthews Asia Dividend Fund (GBP)
-4.94% 0.62% 0.33% -12.09% 2.36% -0.15% 5.26% 6.44% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-4.25% -0.30% 0.91% -1.14% 4.98% 2.98% 6.71% 6.53%
Matthews Asia Dividend Fund (EUR)
-4.70% -0.94% 1.44% -16.22% 1.40% 0.02% n.a. 0.91% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
-3.58% -1.60% 2.21% -5.52% 4.34% 3.19% n.a. 4.08%
As of 31/12/2022
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia Dividend Fund (USD)
0.48% 4.98% -30.00% -30.00% -3.34% -2.73% 3.40% 4.21% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
-0.21% 12.52% -16.92% -16.92% -0.48% 0.47% 4.64% 4.49%
Matthews Asia Dividend Fund (GBP)
0.29% -3.70% -21.55% -21.55% -0.33% -0.44% 6.49% 6.50% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-1.21% 4.42% -6.45% -6.45% 2.77% 2.86% 7.84% 6.54%
Matthews Asia Dividend Fund (EUR)
-2.35% -4.15% -25.73% -25.73% -1.70% -0.44% n.a. 0.68% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
-3.73% 3.28% -11.47% -11.47% 1.21% 2.87% n.a. 3.79%
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 31/12/2022
Name 2022 2021 2020 2019 2018 Inception Date
Matthews Asia Dividend Fund (USD)
-30.00% -1.75% 31.32% 10.66% -12.85% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
-16.92% -1.19% 20.07% 19.74% -13.25%
Matthews Asia Dividend Fund (GBP)
-21.55% -0.44% 26.77% 7.36% -7.98% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-6.45% -0.28% 16.36% 15.12% -7.86%
Matthews Asia Dividend Fund (EUR)
-25.73% 6.39% 20.20% 13.02% -8.85% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
-11.47% 6.31% 10.15% 21.94% -8.88%

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 28/02/2023)
2.40% Dividend Yield

Source: FactSet Research Systems, Bloomberg, Matthews Asia

Portfolio Characteristics

(as of 28/02/2023)
Fund Benchmark
Number of Positions 64 1,486
Weighted Average Market Cap $60.9 billion $81.4 billion
Active Share 83.9 n.a.
P/E using FY1 estimates 17.2x 13.0x
P/E using FY2 estimates 15.1x 12.4x
Price/Cash Flow 11.6 7.4
Price/Book 2.3 1.5
Return On Equity 18.1 15.1
EPS Growth (3 Yr) 16.2% 14.4%

Sources: Factset Research Systems, Inc.

Risk Metrics (3 Yr Return)

(as of 28/02/2023)
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 28/02/2023)
Name Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 4.0
Minth Group, Ltd. Consumer Discretionary China/Hong Kong 3.8
UNO Minda, Ltd. Consumer Discretionary India 3.5
Tencent Holdings, Ltd. Communication Services China/Hong Kong 2.7
AIA Group, Ltd. Financials China/Hong Kong 2.1
Samsung Electronics Co., Ltd. Information Technology South Korea 2.0
Treasury Wine Estates, Ltd. Consumer Staples Australia 1.9
Housing Development Finance Corp., Ltd. Financials India 1.9
PT Bank Rakyat Indonesia Persero Tbk Financials Indonesia 1.9
KATITAS Co., Ltd. Real Estate Japan 1.8
TOTAL 25.6

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 28/02/2023)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Consumer Discretionary 17.8 14.5 3.3
Financials 16.9 19.6 -2.7
Information Technology 15.6 17.4 -1.8
Communication Services 10.0 8.6 1.4
Industrials 9.7 11.4 -1.7
Consumer Staples 9.1 5.7 3.4
Health Care 7.3 6.5 0.8
Real Estate 5.3 3.9 1.4
Materials 2.7 7.5 -4.8
Energy 1.7 2.9 -1.2
Utilities 0.0 2.0 -2.0
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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

Country Fund Benchmark Difference
Japan 29.0 31.8 -2.8
China/Hong Kong 27.6 24.7 2.9
Australia 8.9 11.6 -2.7
Taiwan 7.6 9.6 -2.0
India 6.9 8.4 -1.5
South Korea 4.6 7.5 -2.9
Vietnam 3.9 0.0 3.9
Singapore 2.6 2.2 0.4
Indonesia 1.9 1.2 0.7
Thailand 1.6 1.3 0.3
Bangladesh 0.8 0.0 0.8
Philippines 0.6 0.5 0.1
Malaysia 0.0 0.9 -0.9
New Zealand 0.0 0.3 -0.3
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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

Asset Type Fund
Common Equities and ADRs 95.9
Cash and Other Assets, Less Liabilities 4.1
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 34.3 57.3 -23.0
Large Cap ($10B-$25B) 21.1 22.6 -1.5
Mid Cap ($3B-$10B) 30.7 19.1 11.6
Small Cap (under $3B) 9.8 0.9 8.9
Cash and Other Assets, Less Liabilities 4.1 0.0 4.1

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 31 December 2022

For the year ending 31 December 2022, the Matthews Asia Dividend Fund returned -30.00%, while its benchmark, the MSCI All Country Asia Pacific Index, returned -16.92%. For the fourth quarter of the year, the Fund returned 4.98% versus 12.52% for the benchmark.

Market Environment:

2022 was a painful year for investors in Asian equities due to a combination of the negative effects from rising inflation in the Western world and China’s restrictive zero-COVID policy. Earlier in the year, China’s equities received support amid indications Beijing was easing back on its regulatory interventions in the technology and consumer internet markets only for them to fall on concerns over an economic slowdown caused by the government’s implementation of its zero-COVID strategy.

In the last two quarters, the portfolio has been hurt by its exposure to the Vietnamese market. This was triggered by two events: firstly, rising U.S. interest rates have placed real pressure on the Vietnamese dong and secondly, and more significantly, the Vietnamese government launched an anti-corruption investigation into fraudulent corporate activities within the real estate sector. Both led to greater risk aversion in the marketplace.

India is a different story. While there are good quality businesses in the country, valuation multiples are among the highest in Asia which have led us to being more cautious and selective in our exposure. These different market dynamics within Asia have all been set against a macroeconomic backdrop where U.S. Fed policy has influenced not only Asian but global markets in general.

Performance Contributors and Detractors:

From a country perspective, China/Hong Kong was the biggest detractor to performance during 2022. Chinese equities broadly have been hurt by the significant economic impact of the government’s zero-COVID policy. The negative impact of the zero-COVID approach on performance was mitigated in the fourth quarter when the government abruptly scrapped the policy. Our stock selection in Japan was also a detractor in the year and Vietnam detracted after the government-led probe into the real estate sector triggered a sharp selloff in the market. On the other hand, our underweight in South Korea was a positive contributor to performance, as was our stock selection in Singapore and Indonesia.

From a sector perspective, consumer discretionary-stock selection detracted the most from relative performance. Meanwhile, our allocation and stock selection in information technology was a contributor to relative performance.

At the holdings level, Hoa Phat Group, a Vietnamese materials company, was among the biggest detractors to performance as the company's profit margins were hurt by surging input material costs while the finished steel products' selling price suffered from oversupply. On the other hand, Kyoritsu Maintenance, a Japanese consumer-discretionary stock, was a top contributor. The company operates one of the largest budget hotel chains in Japan and as the country has moved toward a full post-COVID re-opening, the boom in inbound travelers bodes well for Kyoritsu's recovery.

Notable Portfolio Changes:

In the last quarter, we initiated positions in Mingyue Optical Lens and Milkyway Chemical Supply, two China A-share stocks with strong earnings and dividend growth prospects, in our view. We also added a position in West Japan Railway, a Japanese transportation business which we see as well positioned to benefit from the potential tourism recovery. We reduced positions last year in areas such as financials and materials as inflation and rate-hike expectations started to show signs of peaking out and these have been key share-performance drivers for cyclical businesses in these sectors. We also increased exposure to so-called “re-opening” businesses across Asia as the region has decidedly moved toward living with COVID.


China’s sudden abandonment of its zero-COVID policy is creating significant disruption to its growth in the near term but it is also setting up the Chinese economy to bounce back strongly once the surge in COVID rates starts to abate. Chinese equities remain quite attractively priced even after the recent market rally. In Japan, a potential change of the ultra-monetary easing policy could also yield significant investment implications including for interest-rate sensitive businesses and currency-sensitive businesses. Elsewhere, the Vietnam equity market has started to show early signs of stabilization as policymakers have started to address the short-term liquidity crunch in the property sector. The structural growth tailwind for the Vietnamese economy, in our view, remains intact.

Overall, we believe Asia remains an excellent growth market. With the growth outlook for developed economies remaining quite uncertain at this moment, the Asian economy and its equity markets could be a potential bright spot for 2023.


Rolling 12 Month Returns For the period ended 31/12/2022 - I (Acc)
Name 2022 2021 2020 2019 2018 Inception Date
Matthews Asia Dividend Fund (USD)
-30.00% -1.75% 31.32% 10.66% -12.85% 30/04/2010
MSCI All Country Asia Pacific Index (USD)
-16.92% -1.19% 20.07% 19.74% -13.25%
Matthews Asia Dividend Fund (GBP)
-21.55% -0.44% 26.77% 7.36% -7.98% 28/02/2011
MSCI All Country Asia Pacific Index (GBP)
-6.45% -0.28% 16.36% 15.12% -7.86%
Matthews Asia Dividend Fund (EUR)
-25.73% 6.39% 20.20% 13.02% -8.85% 15/05/2017
MSCI All Country Asia Pacific Index (EUR)
-11.47% 6.31% 10.15% 21.94% -8.88%

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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