Take a new dividend approach to Asia

Find the next generation of dividend-paying companies in the world's fastest growing region

The Investment Case

Asia's markets have transformed, thanks to:

Rising personal wealth and consumption

Gradual economic liberalization

As a result, new dividend opportunities have emerged across the region…

Dividend Annual Growth Rate (2007-2017)

12345
1. China 0.0%
2. South Korea 0.0%
3. Thailand 0.0%
4. Indonesia 0.0%
5. Philippines 0.0%

10 Year Compound Annual Growth Rate of Dividends Paid by Constituents of MSCI AC Asia ex Japan by Country. Time period: 31/12/2006-31/12/2017. Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible to invest directly in an index.

Source: Factset Research Systems, Inc. Data as of 22/03/2018

… and across industries

Dividend payments in 2007 and 2017

Percentage

Dividend Annual Growth Rate
(2007-2017)

20.0
15.0
10.0
5.0
0.0
-5.0

Health Care

Financials

Information
Technology

Consumer
Discretionary

Consumer
Staples

Real Estate

Industrials

Utilities

Telecommunication
Services

Energy

Materials

Source: Factset Research Systems, Inc. Data as of 22/03/2018

10 Year Compound Annual Growth Rate of Dividends Paid by Constituents of MSCI AC Asia ex Japan by Sector. Time period: 31/12/2006-31/12/2017. Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible to invest directly in an index.

This new generation of dividend payers is often found in small- and mid-cap companies

Small-Cap
(under $3B)

Mid-Cap
($3-$10B)

Large-Cap
($10-$25B)

Mega-Cap
(over $25B)

In countries experiencing a dynamic change in dividend culture

South Korea

Higher dividend payouts and larger shareholder returns thanks to a shift in government policies and family ownership structures

China

Expanding the investment universe due to the opening up of the A-Share market and deeper capital markets

Taiwan

Higher dividend payouts from companies, as encouraged by tax regimes

ASEAN

Growing dividends as family-owned businesses are incentivized to extract value via dividends

Asia can deliver income and growth

Breakdown of total returns from 2000-2017

Price
Return
Dividend
Return
Total
Return

0%

 

0%

China

0%

 
Price
Return
Dividend
Return
Total
Return

0%

 

0%

Asia

0%

 

Source: MSCI, Matthews Asia

Annual Returns for the Years Ended 31 December (%)

MSCI China
Index
MSCI Asia
Pacific Index
2017 0.00 0.00
2016 0.00 0.00
2015 0.00 0.00
2014 0.00 0.00
2013 0.00 0.00
2017 2016 2015 2014 2013
MSCI China Index 0.00 0.00 0.00 0.00 0.00
MSCI Asia Pacific Index 0.00 0.00 0.00 0.00 0.00

US Dollar returns. Asia (MSCI Asia Pacific Index), China (MSCI China Index). Time period: 31/12/1999-31/12/2017. Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible to invest directly in an index.

So isn't it time to rethink your exposure?

Take a fresh approach with Matthews Asia


Our Funds

The Fund follows a total return approach and focuses on a combination of stable, mature dividend payers and more cyclical dividend growers in Asia including Japan. It captures opportunities arising from an increasing focus on corporate governance, for example in Japan and South Korea, as well as companies that have exposure to fast rising local consumption.

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Features

  • 50-80 stocks
  • All cap
  • Growth and Income

Inception Date

  • 30 April 2010

Overall Morningstar Rating
30/04/2018

Yu Zhang

Portfolio Manager
Yu Zhang, CFA

Fund ratings represent an opinion only and are not a recommendation to buy or sell any fund.

©2018 Morningstar. 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 not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Fund follows a total return approach, focusing on both dividend growth and stable dividend yield.

The Fund emphasizes small- and mid-cap companies that capitalize on China’s domestic consumption story and opportunities presented by the deepening and broadening of China’s capital market.

Download FactSheet >

Features

  • 30-60 stocks
  • All cap
  • Growth and Income

Inception Date

  • 31 January 2013

Overall Morningstar Rating
30/04/2018

Sherwood Zhang

Portfolio Manager
Sherwood Zhang, CFA

Fund ratings represent an opinion only and are not a recommendation to buy or sell any fund.

©2018 Morningstar. 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 not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Research and Insights

Explore our in-depth coverage of the changes and opportunities in China.


Our Team

Since Matthew Asia’s founding in 1991, our focus has been on investing actively in Asia.

We seek to generate attractive returns by actively managing our portfolios and conducing in-depth, on-the-ground fundamental research to identify the most compelling opportunities while minimizing downside risk.

Our 46 investment team members offer deep experience that helps us to navigate change and find opportunity in China, helping you capitalize on its long-term growth potential.

0
Investment team members

0%
lived or worked in Asia

0%
are Asian language speakers

0
years average Asia investment experience

Data as of 31/03/2018

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