Matthews Asia Total Return Bond Fund
The Fund's name changed from the Matthews Asia Strategic Income Fund to the Matthews Asia Total Return Bond Fund on 25 May 2020.
29 August 2014
Total return over the long term with an emphasis on income.
Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 65% of its total assets, which include borrowings for investment purposes, in income-producing securities including, but not limited to, debt and debt-related instruments issued by governments, quasi-governmental entities, supra-national institutions, and companies in Asia. Investments may be denominated in any currency, and may represent any part of a company’s capital structure from debt to equity or with features of both.
The Matthews Asia Total Return Bond Fund intends to distribute its dividends quarterly for the Distribution share classes. Third quarter 2020 distributions were paid for the I (Dist) and A (Dist) share classes on 6 October 2020 to shareholders of record as of 28 September 2020. Distribution information is now available.
Teresa Kong, CFA
*No Hong Kong based Co-Manager for the Matthews Asia Funds will exercise investment discretion for or on behalf of the funds in Hong Kong.
Fees & Expenses
Total Expense Ratio1
31 March 2020
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.
Effective 25 May 2020, the Fund changed its benchmark to a blended benchmark comprised of 50% Markit IBoxx Asian Local Bond Index and 50% J.P. Morgan Asia Credit Index. Prior to that, the Fund's benchmark was the Markit iBoxx Asian Local Bond Index. Matthews believes that the blended benchmark is more appropriate in light of the Fund's current investment strategy.
As of May 1, 2016, the HSBC Asian Local Bond Index became the Markit iBoxx Asian Local Bond Index.
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1Total expense ratio for periods less than a full fiscal year have been annualized based on the Fund’s fiscal year-to-date unaudited expenses as of the most recently available quarter end. The annualized total expense ratio may vary, sometimes significantly, quarter to quarter and from the actual fiscal year-end total expense ratio.