Matthews Asia ex Japan Dividend Fund

Matthews Asia Funds

Risk Considerations

  • Investment involves risk. Past performance is not a guide to future performance. It is possible to lose the principal capital of your investment.
  • The Fund invests primarily in Asia ex Japan countries and economies. Investment in such emerging markets may be subject to increased risks such as political, social, tax, economic, policy, market, liquidity, trading, custody and settlement, currency, legal and regulatory risks.
  • The Fund may, at its discretion, pay dividends out of the capital or effectively out of capital in respect of the distribution shares. Payment of dividends out of capital and/or effectively out of capital amounts to 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.
  • The Fund invests primarily in equity securities, which may result in increased volatility.
  • The Fund may invest in smaller companies which are likely to carry higher risks than larger companies.
  • The Fund may invest in financial derivative instruments (“FDIs”). Risk associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The Fund will not use FDIs extensively for investment purposes.
  • The Fund may use hedging techniques to attempt to offset certain market risks but there is no guarantee that hedging techniques will fully and effectively achieve their desired result.
  • Investors should not invest in the Fund solely based on the information in this website. Please read the Hong Kong Offering Document carefully for further details including risk factors before investing.

Top 10 Holdings as of 30 September 2019

Security Sector Country % Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 2.4
Samsung Electronics Co., Ltd., Pfd. Information Technology South Korea 2.3
AIA Group, Ltd. Financials China/Hong Kong 1.9
China East Education Holdings, Ltd. Consumer Discretionary China/Hong Kong 1.9
China Merchants Bank Co., Ltd. Financials China/Hong Kong 1.8
Ping An Insurance Group Co. of China, Ltd. Financials China/Hong Kong 1.8
PT Industri Jamu dan Farmasi Si Consumer Staples Indonesia 1.7
Yuexiu Transport Infrastructure, Ltd. Industrials China/Hong Kong 1.7
Minth Group, Ltd. Consumer Discretionary China/Hong Kong 1.6
China Education Group Holdings, Ltd. Consumer Discretionary China/Hong Kong 1.6
Total 18.7
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 September 2019

  Fund MSCI All Country Asia ex Japan IndexDifference
Consumer Discretionary 21.7 13.6 8.1
Consumer Staples 16.0 5.4 10.6
Information Technology 12.2 17.8 -5.6
Communication Services 10.0 12.0 -2.0
Industrials 9.9 6.9 3.0
Real Estate 8.9 5.9 3.0
Financials 7.8 23.4 -15.6
Health Care 2.8 2.8 0.0
Utilities 1.5 3.3 -1.8
Materials 1.0 4.4 -3.4
Energy 0.9 4.4 -3.5
Cash and Other Assets, Less Liabilities 7.3 0.0 7.3
  Fund MSCI All Country Asia ex Japan IndexDifference
China/Hong Kong 45.3 48.3 -3.0
Taiwan 11.5 13.5 -2.0
South Korea 10.6 14.3 -3.7
Singapore 7.3 3.8 3.5
Vietnam 5.6 0.0 5.6
Thailand 3.0 3.4 -0.4
Philippines 3.0 1.3 1.7
Indonesia 2.6 2.4 0.2
India 2.2 10.4 -8.2
Bangladesh 1.6 0.0 1.6
Malaysia 0.0 2.4 -2.4
Cash and Other Assets, Less Liabilities 7.3 0.0 7.3
  Fund MSCI All Country Asia ex Japan Index Difference
Mega Cap (over $25B) 17.7 54.4 -36.7
Large Cap ($10B-$25B) 11.4 22.2 -10.8
Mid Cap ($3B-$10B) 16.9 19.3 -2.4
Small Cap (under $3B) 46.7 4.1 42.6
Cash and Other Assets, Less Liabilities 7.3 0.0 7.3
Equity market cap of issuer.
  Fund
Common Equities and ADRs 87.8
Preferred Equities 4.9
Cash and Other Assets, Less Liabilities 7.3
Source: FactSet Research Systems.

Portfolio Characteristics as of 30 September 2019

Number of Securities1

68

Weighted Average
Market Cap

$30.8 billion

P/E using FY1 estimates

14.7x

P/E using FY2 estimates

12.9x

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.

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. 

The P/E Ratio is the share price of a stock as of the report date, divided by the forecasted earnings per share for a 12-month period (FY1) and 24 month period (FY2). For the Fund, this is the weighted harmonic average estimated P/E ratio of all the underlying stocks in the Fund, excluding negative earners. There is no guarantee that the composition of the Fund will remain unchanged, or that forecasted earnings of a stock will be realized. Information provided is for illustrative purposes only.

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 (express or implied) is made, including, without limitation, that the information is complete or timely. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information. 

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