Matthews Asia Strategic Income Fund


Top 10 Positions as of 31 August 2018

Security Sector Currency % Net Assets
China Overseas Finance Investment Cayman V, Ltd., Cnv., 0.000%, 01/05/2023 Real Estate U.S. Dollar 5.9
Ctrip.com International, Ltd., Cnv., 1.250%, 09/15/2022 Consumer Discretionary U.S. Dollar 5.6
Franshion Brilliant, Ltd., 5.200%, 03/08/2021 Real Estate Chinese Renminbi 5.1
Debt and Asset Trading Corp., 1.000%, 10/10/2025 Financials U.S. Dollar 4.8
Wanda Properties International Co., Ltd., 7.250%, 01/29/2024 Real Estate U.S. Dollar 4.7
CP Foods Holdings, Ltd., Cnv., 0.500%, 09/22/2021 Consumer Staples U.S. Dollar 4.3
National Savings Bank, 5.150%, 09/10/2019 Financials U.S. Dollar 4.2
CIFI Holdings Group Co., Ltd., 6.875%, 04/23/2021 Real Estate U.S. Dollar 4.2
Zhongsheng Group Holdings, Ltd., Cnv., 0.000%, 05/23/2023 Consumer Discretionary Hong Kong Dollar 4.1
Shimao Property Holdings, Ltd., 4.750%, 07/03/2022 Real Estate U.S. Dollar 4.0
Total 46.9
Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.

Portfolio Breakdown (%) as of 31 August 2018

  Fund
Real Estate 33.3
Financials 19.7
Consumer Discretionary 9.8
Consumer Staples 8.4
Industrials 7.8
Materials 6.9
Telecom Services 4.3
Foreign Government Bonds 4.2
Utilities 3.0
Cash and Other Assets, Less Liabilities 2.7
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. "Foreign Government Bonds" category includes supranationals.
Cash and Other Assets may include the mark-to-market value of forward currency exchange contracts and certain derivative instruments.
By issuer's country of risk Fund
China/Hong Kong 60.7
Sri Lanka 7.0
Vietnam 7.0
Indonesia 6.2
India 4.4
Thailand 4.3
Japan 2.2
United States 2.1
South Korea 2.0
Singapore 1.4
Cash and Other Assets, Less Liabilities 2.7
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. Not all countries are included in the benchmark index. Cash and Other Assets may include the mark-to-market value of forward currency exchange contracts and certain derivative instruments.
  Weight Modified Duration*
U.S. Dollar 74.6 2.4
China Renminbi 10.0 2.3
Indian Rupee 4.4 2.0
Hong Kong Dollar 4.1 2.7
Vietnam Dong 2.2 3.0
Korean Won 2.0 5.0
Cash and Other Assets, Less Liabilities 2.7 0.0
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.
Cash and Other Assets may include the mark-to-market value of forward currency exchange contracts and certain derivative instruments.
*Fixed income portion of the portfolio
  Fund
Corporate Bonds 61.8
Convertible Bonds 26.5
Government Bonds 9.0
Cash and Other Assets, Less Liabilities 2.7
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.
Cash and Other Assets may include the mark-to-market value of forward currency exchange contracts and certain derivative instruments.
  Fund
AA- 2.0
A- 2.0
BBB- 5.1
BB+ 3.5
BB 4.0
BB- 10.4
B+ 10.6
B 14.3
Not Rated 45.4
Credit quality is provided for the underlying bond holdings of the Fund and does not include common equities, cash and other assets and percentage values will not total 100%. Credit quality rating symbols reflect that of S&P and generally credit ratings range from AAA (highest) to D (lowest). When ratings from Moody's, S&P and Fitch are available for a bond in the Fund, the middle rating of the three is used. When two ratings are available, the lowest rating is used.   When only one rating is provided, that one is used. Foreign government bonds without a specific rating are assigned the country rating provided by one of the three agencies.Securities that are not rated by any one of the three agencies are reflected as such. 
Sources: FactSet, Moody's, S&P and Fitch

Portfolio Characteristics as of 31 August 2018

Number of Positions1

32

Modified Duration

2.5
Modified duration measures the percent change in value of the fixed income portion of the portfolio in response to a 1% change in interest rates. In a multi-currency denominated portfolio with sensitivities to different interest rate regimes, modified duration will not accurately reflect the change in value of the overall portfolio from a change in any one interest rate regime.

1Source: Brown Brothers Harriman (Luxembourg) S.C.A
Source: FactSet Research Systems unless otherwise noted. Sector data (excluding Government Bonds) based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.

Index Definitions

The information contained in this document does not, in any way, constitute investment advice. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned. Information on this document is from sources considered reliable, but no representation or warranty is made as to its completeness or accuracy. 

Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods



Risk Considerations

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 and emerging market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Fixed income investments are subject to additional risks, including, but not limited to, interest rate, credit and inflation risks. The Fund may invest in the following: derivatives which can be volatile and affect Fund performance; high yield bonds (junk bonds) which can subject the Fund to substantial risk of loss; and structured investments which can change the risk or return, or replicate the risk or return of an underlying asset. 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. These and other risks associated with investing in the Fund can be found in the Prospectus.