Matthews Asia ex Japan Total Return Equity Fund

Effective 17 February 2023, the Asia ex Japan Dividend Fund was renamed to the Asia ex Japan Total Return Equity Fund. Read our Q&A

  • Total return strategy seeks to access the growth of Asia Pacific ex Japan 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 Sub-Fund promotes environmental and social characteristics according to Article 8 of SFDR. Furthermore, the Sub-Fund uses both activity- and norm-based exclusions. Information relating to the environmental and social characteristics of this Sub-Fund is available in the prospectus.


The Fund pursues its objective by primarily investing in companies that exhibit attractive dividend yields and/or the potential to grow dividends over time. 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 (including, for example, investment trusts and other financial instruments) of companies located in the Asia ex Japan region.


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 30/11/2015
Fund Assets $557.37 million (30/04/2023)
Base Currency USD
ISIN: LU1311311432 (USD) LU1311311606 (GBP)
Benchmark MSCI All Country Asia ex Japan Index
Geographic Focus Asia ex Japan: Consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region, excluding Japan
SFDR Classification Article 8
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 ex Japan Total Return Equity Fund (USD)
-2.87% -8.45% -0.32% -11.74% 6.48% 3.11% n.a. 8.85% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
-2.07% -5.54% 2.23% -5.56% 3.54% -0.18% n.a. 5.66%
Matthews Asia ex Japan Total Return Equity Fund (GBP)
-3.68% -9.69% -3.86% -11.16% 6.60% 5.10% n.a. 11.60% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
-3.66% -7.48% -2.16% -5.67% 3.66% 1.66% n.a. 8.26%
As of 31/03/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Asia ex Japan Total Return Equity Fund (USD)
1.01% 2.63% 2.63% -13.50% 11.92% 3.84% n.a. 9.39% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
3.51% 4.39% 4.39% -8.54% 7.29% 0.38% n.a. 6.02%
Matthews Asia ex Japan Total Return Equity Fund (GBP)
-1.20% -0.19% -0.19% -8.24% 11.86% 6.55% n.a. 12.31% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
1.35% 1.56% 1.56% -2.61% 7.39% 2.95% n.a. 8.91%
For the years ended December 31st
Name 2022 2021 2020 2019 2018 2017 2016
Matthews Asia ex Japan Total Return Equity Fund (USD)
-26.06% 3.97% 51.87% 16.69% -12.31% 47.17% 6.91%
MSCI All Country Asia ex Japan Index (USD)
-19.36% -4.46% 25.36% 18.52% -14.12% 42.08% 5.76%
Matthews Asia ex Japan Total Return Equity Fund (GBP)
-17.12% 5.33% 46.66% 13.22% -7.42% 34.25% 28.48%
MSCI All Country Asia ex Japan Index (GBP)
-9.19% -3.58% 21.49% 13.94% -8.78% 29.78% 26.15%
For the period ended 31/03/2023
Name 2023 2022 2021 2020 2019 Inception Date
Matthews Asia ex Japan Total Return Equity Fund (USD)
-13.50% -9.92% 79.94% -9.98% -4.34% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
-8.54% -14.42% 57.77% -13.18% -4.95%
Matthews Asia ex Japan Total Return Equity Fund (GBP)
-8.24% -5.51% 61.44% -4.59% 2.82% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
-2.61% -10.32% 41.79% -8.76% 2.33%

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)
1.87% Dividend Yield

Source: FactSet Research Systems, Bloomberg, Matthews Asia

Portfolio Characteristics

(as of 30/04/2023)
Fund Benchmark
Number of Positions 51 1,186
Weighted Average Market Cap $79.7 billion $106.7 billion
Active Share 79.1 n.a.
P/E using FY1 estimates 18.6x 13.2x
P/E using FY2 estimates 15.0x 11.4x
Price/Cash Flow 12.8 6.8
Price/Book 3.1 1.6
Return On Equity 19.4 14.9
EPS Growth (3 Yr) 17.6% 13.1%

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 6.1
Tencent Holdings, Ltd. Communication Services China/Hong Kong 5.4
Samsung Electronics Co., Ltd. Information Technology South Korea 2.8
AIA Group, Ltd. Financials China/Hong Kong 2.6
E Ink Holdings, Inc. Information Technology Taiwan 2.4
Poya International Co., Ltd. Consumer Discretionary Taiwan 2.4
PT Bank Rakyat Indonesia Persero Tbk Financials Indonesia 2.4
Yum China Holdings, Inc. Consumer Discretionary China/Hong Kong 2.3
Universal Vision Biotechnology Co., Ltd. Health Care Taiwan 2.2
AK Medical Holdings, Ltd. Health Care China/Hong Kong 2.2
TOTAL 30.8

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 30/04/2023)
  • Sector Allocation
  • Country Allocation
  • Asset Type Breakdown
  • Market Cap Exposure
Sector Fund Benchmark Difference
Information Technology 22.1 22.3 -0.2
Industrials 18.1 7.0 11.1
Consumer Discretionary 17.2 13.8 3.4
Financials 11.4 21.5 -10.1
Health Care 11.0 4.0 7.0
Communication Services 7.6 10.2 -2.6
Real Estate 4.6 3.8 0.8
Consumer Staples 3.4 5.5 -2.1
Materials 1.9 5.5 -3.6
Energy 0.0 3.8 -3.8
Utilities 0.0 2.6 -2.6
Cash and Other Assets, Less Liabilities 2.6 0.0 2.6

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

Country Fund Benchmark Difference
China/Hong Kong 44.8 42.8 2.0
Taiwan 20.6 16.6 4.0
South Korea 8.4 13.6 -5.2
India 8.1 15.5 -7.4
Vietnam 4.3 0.0 4.3
Malaysia 3.3 1.6 1.7
Indonesia 3.2 2.3 0.9
Singapore 2.6 4.0 -1.4
Thailand 2.1 2.4 -0.3
Philippines 0.0 0.8 -0.8
Macau 0.0 0.3 -0.3
United States 0.0 0.1 -0.1
Cash and Other Assets, Less Liabilities 2.6 0.0 2.6

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

Asset Type Fund
Common Equities and ADRs 97.4
Cash and Other Assets, Less Liabilities 2.6
Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 37.2 58.8 -21.6
Large Cap ($10B-$25B) 7.1 20.7 -13.6
Mid Cap ($3B-$10B) 21.8 18.9 2.9
Small Cap (under $3B) 31.3 1.6 29.7
Cash and Other Assets, Less Liabilities 2.6 0.0 2.6

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.

ESG Characteristics

(as of 31/03/2023)
  • Business Involvement
  • Sustainability Attributes
Name Fund Benchmark Difference
Controversial Weapons
Fund Coverage: 95% Benchmark Coverage: 99%
0.0 0.3 -0.3
Fund Coverage: 95% Benchmark Coverage: 100%
0.0 0.4 -0.4
Name Fund Benchmark Difference
UN Global Compact Violators
Fund Coverage: 100% Benchmark Coverage: 100%
0.0 0.7 -0.7
Board Diversity
Fund Coverage: 100% Benchmark Coverage: 99%
20.5 16.2 4.3

Board Diversity: Represents the weighted average ratio of female board members in investee companies.
Tobacco: Represents companies that generate revenue from tobacco manufacturing 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.

Source: Sustainalytics, Factset, MSCI, Matthews Asia.

GHG Intensity

(as of 31/03/2023)

Fund Coverage: 86%; Benchmark Coverage: 99% as of 31/03/2023

GHG Intensity: Represents the normalized portfolio’s total weighted average (scope 1 + scope 2) carbon emissions intensity, using the most recently available data (emissions data from 2020, 2021). Carbon intensity represents the issuer’s total carbon emissions per EUR million of revenue (tCO2e divided by EUR million in revenue).

Source: Sourced from ISS ESG. Where not covered by external data providers, we have tried to source these data points.

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 Sustainable Finance Disclosure Regulation – Article 10.


  • 3 YEAR
  • 5 YEAR
(as of 23/01/2023)

Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.

The Elite RatingTMsystem is proprietary to FundCalibre Ltd, but should not be taken as a recommendation.

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

Sharat  Shroff, CFA photo
Sharat Shroff, CFA

Lead Manager

Kenneth  Lowe, CFA photo
Kenneth Lowe, CFA

Lead Manager

Inbok  Song photo
Inbok Song


Sherwood  Zhang, CFA photo
Sherwood Zhang, CFA


Robert J. Horrocks, PhD photo
Jeremy  Sutch, CFA photo
Jeremy Sutch, CFA


Sojung  Park photo
Sojung Park



Currency Record Date Ex Date Reinvest Date Payment Date Income Distributions
USD 28/03/2023 29/03/2023 30/03/2023 05/04/2023 $0.050966
GBP 28/03/2023 29/03/2023 30/03/2023 05/04/2023 £0.062193
USD 13/12/2022 14/12/2022 15/12/2022 29/12/2022 $0.038922
GBP 13/12/2022 14/12/2022 15/12/2022 29/12/2022 £0.052039
USD 27/09/2022 28/09/2022 29/09/2022 05/10/2022 $0.121951
GBP 27/09/2022 28/09/2022 29/09/2022 05/10/2022 £0.147665
USD 27/06/2022 28/06/2022 29/06/2022 05/07/2022 $0.112632
GBP 27/06/2022 28/06/2022 29/06/2022 05/07/2022 £0.149658
USD 28/03/2022 29/03/2022 30/03/2022 05/04/2022 $0.041814
GBP 28/03/2022 29/03/2022 30/03/2022 05/04/2022 £0.047098
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 ex Japan Total Return Equity Fund returned 2.66%, while its benchmark, the MSCI All Country Asia ex Japan Index, returned 4.39%.

Market Environment:

The 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. Taiwan and South Korea also 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 China/Hong Kong was the biggest detractor in the quarter as select state-owned enterprises and reopening plays where the portfolio has limited exposure gained while poor earnings delivery from certain holdings hindered performance. The portfolio’s underweight and stock selection in South Korea was also a large detractor to relative performance as our holdings in information technology (IT) didn’t perform as well as those companies more exposed to the semiconductor memory cycle. Conversely, the portfolio benefited from an underweight position and stock selection in India as there is no exposure to problematic investment groups or weaker-performing financial companies. Stock selection and allocation in Taiwan was also positive with smaller companies performing well.

At the sector level, our overweight and stock selection in industrials and our stock selection in IT were detractors, the latter because of our more limited exposure to certain semiconductor-related stocks. In contrast, our underweight and stock selection in financials was a top contributor, as the sector struggled and the portfolio had exposure to areas in Southeast Asia that delivered reasonable performance. Lack of exposure to energy and utilities sectors also supported 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.

On the other hand, 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.

Notable Portfolio Changes:

In the first quarter, we initiated a number of new positions including holdings in consumer discretionary, IT, financials and real estate. Positions were closed in some Vietnamese companies and Chinese internet platforms. These alterations were to remove some non-dividend paying equities from the portfolio as well as reduce the previously significant exposure to an off-benchmark single country. 

As an example, we have included what we deem to be leading businesses with visible growth at reasonable prices, such as AIA Group, Tata Consultancy Services and Yum China. To fund this, exits have been made in lower quality businesses such as Kido Group and non-dividend payers such as Alibaba and Baidu. 


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. More broadly, a possible peak in the U.S. dollar may be upon us while valuations for the region are a relatively modest 12x 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.

Rolling 12 Month Returns For the period ended 31/03/2023 - I (Dist)
Name 2023 2022 2021 2020 2019 Inception Date
Matthews Asia ex Japan Total Return Equity Fund (USD)
-13.50% -9.92% 79.94% -9.98% -4.34% 30/11/2015
MSCI All Country Asia ex Japan Index (USD)
-8.54% -14.42% 57.77% -13.18% -4.95%
Matthews Asia ex Japan Total Return Equity Fund (GBP)
-8.24% -5.51% 61.44% -4.59% 2.82% 30/11/2015
MSCI All Country Asia ex Japan Index (GBP)
-2.61% -10.32% 41.79% -8.76% 2.33%

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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