Investing in the Future of Asia - Matthews Asia Dividend Fund
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Investing in the
Future of Asia
Matthews Asia Dividend Fund
Matthews Asia I Q2 2020
The views and information discussed herein are as of the date of publication, are Investing in international and emerging markets may involve additional risks,
subject to change and may not reflect current views. The views expressed such as social and political instability, market illiquidity, exchange-rate
represent an assessment of market conditions at a specific point in time, are fluctuations, a high level of volatility and limited regulation. Fixed income
opinions only and should not be relied upon as investment advice regarding a investments are subject to additional risks, including, but not limited to, interest
particular investment or markets in general. Such information does not rate, credit and inflation risks. In addition, single-country and sector strategies
constitute a recommendation to buy or sell specific securities or investment may be subject to a higher degree of market risk than diversified strategies
vehicles. because of concentration in a specific industry, sector or geographic location.
Investing in small companies is more risky and more volatile than investing in
Investment involves risk. Past performance is no guarantee of future results. The large companies.
value of an investment in the Fund can go down as well as up. The information
contained herein has been derived from sources believed to be reliable and Matthews Asia is the brand for Matthews International Capital Management, LLC
accurate at the time of compilation, but no representation or warranty (express and its direct and indirect subsidiaries.
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.
For institutional use only. Do not give, show or quote to any other person. Not to
be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20
Asia’s Global Relevance
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 2
Asia’s Global Relevance
More people, more wealth, more growth
More than 4.5 billion of the 7.7 billion people
worldwide live within the circle, but it’s not just
India and China that make up this population:
Indonesia: 271 million
Pakistan: 217 million
Bangladesh: 163 million
Philippines: 108 million
Vietnam: 96 million
Average age: 27.7
Sources: United Nations, Department of Economic and Social Affairs, Population Division (2019), World Population Prospects 2019
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 3
Asia Continues to Lead Global Growth
COMPOSITION OF GROWTH* EXPECTED COMPOSITION OF GROWTH*
2009 – 2019 2018 – 2024
ASIA: 56% ASIA: 59%
Mid East/ Mid East/
Africa 11% Africa 10%
Latin Latin
America America China/Hong Kong
China/Hong Kong
5% 6% 28%
28%
Europe Europe
15% 14%
India 12% U.S. /
U.S. / India 15%
Canada Canada
13% 11%
Japan Rest of Japan
Rest of
3% Asia 14% 2%
Asia 13%
*Based on GDP on Purchasing Power Parity (PPP) basis. There is no guarantee any estimates or projections will be realized
Source: International Monetary Fund; World Economic Outlook Database, April 2019
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 4
Emerging Markets Are Not Created Equal
Many Asian countries have achieved “Economic Take Off”
Nominal GDP per capita, PPP, relative to the U.S. (2017)
1.2
U.S.
1.0
TAIWAN
0.8
JAPAN
SOUTH KOREA
0.6
MALAYSIA
TURKEY Asia
0.4 CHILE Europe
CHINA ARGENTINA
THAILAND MEXICO Latin America
BRAZIL Middle East/Africa
0.2 SOUTH AFRICA
INDIA North America
0.0
0.0 0.2 0.4 0.6 0.8 1.0 1.2
Nominal GDP per capita, PPP, relative to the U.S. (1980)
Note: Data depicted shows 50 most populous countries in IMF database in 1980
Sources: IMF; Matthews Asia
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 5
Asia’s Growth Still Has a Long Way To Go…
Asia per capita GDP in historical context to the U.S.
GDP per capita (US$)
70,000
Singapore
60,000
50,000
Technology and Services Hong Kong
Information Technology
Financials/Insurance
40,000 Travel/Leisure Japan
Specialty Brands
Consumer Discretionary
Basic Necessities Materials South Korea
30,000 Energy Infrastructure
Consumer Staples
Utilities Taiwan
20,000
Mongolia, China
10,000 Indonesia, Malaysia
Pakistan, Sri Lanka
Bangladesh India Philippines Thailand
Myanmar
0 Vietnam
1 1650 1808 1821 1834 1847 1860 1873 1886 1899 1912 1925 1938 1951 1964 1977 1990 2003 2016
2018
U.S. Asia Countries
Sources: Maddison Historic GDP through 1987, International Monetary Fund (MF), World Economic Database October 2019
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 6
Peeling the EM Onion—Asia Stands Out
Long-Term Performance of MSCI Emerging Market Regions as of June 30, 2020
3 Years 5 Years 10 Years
6.2%
5.2%
4.4%
2.0%
1.4%
0.0%
0.0%
-2.1%
-2.7% -2.9%
-3.5%
-6.9%
MSCI Emerging Markets Asia Index MSCI Emerging Markets Latin America Index
MSCI Emerging Markets EMEA Index MSCI Emerging Markets Europe Index
Note: Returns are annualized and in US$
Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible
to invest directly in an index.
Sources: MSCI, FactSet Research Systems, Inc.; data as of June 30, 2020
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 7
Asia Leads Innovation in EM
% WEIGHT IN INNOVATIVE SECTORS
29.3%
10.0%
2.6%
MSCI AC Asia ex Japan Index MSCI EM Latin America Index MSCI Emerging Markets EMEA Index
Matthews Asia considers Innovative sectors to include Technology, Industrials and Health Care. Weights represent the cumulative
% of health care, technology and industrials sectors. Indexes are unmanaged and it is not possible to invest directly in an index.
Sources: MSCI, FactSet Research Systems, Inc.; data as of June 30, 2020
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 8
Regional Middle Class Growth
From 2015 – 2030, an estimated 2.3 billion people will enter the middle class—88% from Asia!
NUMBER OF PEOPLE ENTERING THE MIDDLE CLASS (MILLIONS) FROM FY2015
2,500
2,000
1,500
1,000
500
0
2020* 2025* 2030*
Europe North America South and Central America Middle East and Africa Asia Pacific
*Data represented are estimates only. Matthews Asia has not independently verified any of the figures and cannot confirm their accuracy. There is no
guarantee that any estimates or projections will be realized. Middle class is defined as income range of $11 to $110 per person per day in 2011 PPP
terms.
Source: Brookings, Global Economy and Development Working Paper, February 2017, “The Unprecedented Expansion of the Global Middle Class.”
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 9Current Economic Cycle
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 10Asia Earnings Per Share and Economic Growth
US$; Indexed 12/31/2002=1
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dec-16 Dec-18 Dec-19
Asia ex Japan EPS Asia ex Japan Nominal GDP
Note: Universe as defined by FactSet Aggregates
Source: FactSet Aggregates, MSCI, Matthews Asia; data as of December 31, 2019
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 11Asian Valuations
Asia ex Japan (June 2001 – June 2020)
Forward P/E Ratio P/B Ratio
20 4.0
18 3.5
16
3.0
14
12 2.5
10 2.0
8 1.5
6
1.0
4 SARS Outbreak Global Financial Crisis
2 0.5
0 0.0
Asia ex Japan Forward Price to Earnings Asia ex Japan Price to Book Linear (Asia ex Japan Forward Price to Earnings)
Hong Asia ex
China India Japan U.S. Europe
Kong Japan
Forward P/E 21.0x 13.5x 22.8x 18.1x 24.2x 20.1x 17.1x
Dividend Yield (%) 1.7 2.8 1.5 2.6 2.0 3.4 2.4
Note: Valuations chart data as of June 30, 2020.
Trailing Dividend yield estimates for 2019 as of June 30, 2020 based on FactSet aggregates as defined by FactSet. The forward price
per earnings ratio (“Forward P/E”) is calculated by dividing the market price per share by the expected earnings per share for 2020.
Forward P/E was calculated as of June 30, 2020 and is forward looking. There is no guarantee that Forward P/E or any estimates or
projections will be realized.
Source: FactSet Research Systems, Inc.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 12Implementing Asia in Portfolios
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 13Most Client Portfolios are Under-Allocated to Asia
Compared to Current Measures
MSCI ALL COUNTRY WORLD INDEX WORLD STOCK MARKET VALUE GDP
ASIA: 19% ASIA: 32% ASIA: 36%
Canada
Canada Canada
3% China/HK
3% 2%
5% India
1%
Japan U.S. China/HK India
China/HK 24%
7% U.S. 17% 3%
14%
41% India
U.S. Other Asia 3% Japan
55% 6% Mid East/ 6%
Japan
7% Africa Other Asia
Europe Other Asia 6% 10%
20% 8%
Europe Europe
Mid Latin America
19% 26%
East/Africa 6%
Latin 3%
Mid East/
America Latin America
Africa
2% 2%
1%
The MSCI All Country World Index is a free float‐adjusted market capitalization weighted index that is designed to measure the equity market
performance of developed and emerging markets. The MSCI ACWI consists of 46 country indexes comprising 23 developed and 23 emerging market
country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong
Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the
United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India,
Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
Sources: MSCI, International Monetary Fund and World Federation of Exchange Members, IMF GDP data as of 4/30/19; Stock Market Value data as of
04/30/19; MSCI All Country World Index as of 06/30/2019. Figures in US$
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 14Implementation—Get the Asia Part Right
EM EQUITY REGIONAL WEIGHTS
90%
79.2%
80%
70%
60%
50%
40%
30%
20%
10% 8.0% 7.9%
4.9%
Banker’s Acceptance Bills
0% Trust Loans
Asia Latin America ME/Africa Europe
Note: EM equity refers to the MSCI Emerging Markets Equity Index. All regional weights are shown as of June 30, 2020.
It is not possible to invest directly in an index.
Sources: FactSet Research Systems, Inc., MSCI
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 15Two Dominant Spheres of Influence
*Source: United Nations, Department of Economic and Social Affairs, Population Division (2017)
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 16Implementation—Consumer Staples has Outperformed more Cyclical Sectors
EM SECTOR PERFORMANCE + VOLATILITY (January 2001– June 2020)
600%
533.3%
500%
426.3%
400% 355.0%
300%
200%
100%
25.9% 27.6% 17.1%
0%
EM Materials EM Energy EM Consumer Staples
Return Average Volatility
Past performance is no guarantee of future results. Volatility is the standard deviation of returns.
Indexes are unmanaged and it is not possible to invest directly in an index.
Note: Universe represented by the MSCI EM Equity Index. Volatility calculation are using average daily returns from the January 31, 2001 to June 30,
2020 time period. The sector returns shown are cumulative for the dates listed above.
Sources: MSCI, FactSet Research Systems, Inc.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 17A Boutique Asset Management Firm
Clients include global institutional investors, family offices, private bank professionals and high net-worth investors
150+ 29+
Employees Years invested in
Asia
5 US$22.0 BN
46 Locations
Investment Assets under
professionals San Francisco, London, management
Hong Kong, Shanghai,
Singapore
Note: Regional Strategy AUM $17.2 BN, Single-country AUM $4.8 BN, total firm China exposure $10.1 BN.
Assets under management may rise or fall due to market conditions and other factors.
Please visit matthewsasia.com for current AUM.
Data as of June 30, 2020
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 18A History of Resilience and Innovation
Firm Milestones Product Milestones
1991
G. Paul Matthews 2010 2020
2016 Matthews Launches
founds Matthews Asia G. Paul Matthews Matthews
introduces off- first Global Emerging
1995 Asia becomes Markets Strategy
shore funds for a UNPRI
Launch of our first
non U.S. investors signatory
single country strategy,
Korea
2003 2011 2018
Launch of our first all Launch of our first China reaches
1995 country Asia Pacific fixed income 20-year
Matthews Asia begins strategy, Asia growth strategy, Asia Total anniversary
following China’s A- Return Bond*
Share market
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Asian Financial Crisis SARS Outbreak Global Financial Crisis 2015
Launch of our first
ESG strategy, Asia
ESG
1994 1998 2008 2014
Launch of our Launch of our Launch of our first Matthews Asia is
first regional first China completion strategy, awarded Qualified
core strategy, strategy, China Asia Small Foreign Institutional
Pacific Tiger Companies Investor (QFII) license
to invest in China’s A-
Share Market
*Formerly known as Asia Strategic Income
Matthews Asia
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 19Investment Philosophy and Approach
The foundation of Matthews Asia’s investment philosophy is our belief in the long-term economic
growth and development of the countries in Asia
ACTIVE BOTTOM-UP
MANAGEMENT RESEARCH
RANGE OF ASIA
LONG-TERM
INVESTMENT
FOCUS ON ASIA
STRATEGIES
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 20Three Pillars of ESG Integration
Committed to incorporating ESG considerations within the very fabric of our investment process
Long-Term Alpha Generation
FIRM-WIDE ARCHITECTURE INVESTMENT TEAM INVESTMENT STRATEGIES
Alignment of Mission, Culture and Talent Foundations for ESG Integration: Tailored ESG Integration by Strategy:
to Support Performance Goals: Active Security Selection:
Company Engagement
Fundamental and bottom-up
Mission: Champion Asia investment Emphasis on Governance: Deep investment process
solutions that build wealth for our global understanding of corporate governance Materiality: ESG issues are
clients over the long term across markets, strong focus across all considered where material for
Culture: Diverse teams create better strategies industry or sector
outcomes for clients. Culture Committee, Risk Monitoring: ESG and reputational Context Matters: Each strategy
Diversity & Inclusion Committee and risk monitoring via multiple ESG
Sustainability Committee draws on ESG inputs in a way that
research providers, complemented by reflects:
Commitment: UNPRI Signatory our proprietary research
— Objectives and philosophy
Oversight Structures: Corporate
COMMUNITY AND ENVIRONMENT — Availability of ESG data within
Governance & Stewardship Sub- the strategy’s universe
― Matthews Asia Charitable Giving Committee
― Annual employee volunteer day — Market cap of securities the
Industry Collaboration and strategy invests in
― LEED certified HQ since 2014 Memberships: Asian Corporate — Region or country and stage of
― Carbon offsets for firm-wide travel Governance Association, International
emissions development
Corporate Governance Network, CDP
ESG considerations are not a specific requirement for all portfolios at Matthews Asia. ESG factors can vary over different periods and can evolve over
time. They may also be difficult to apply consistently across regions, countries or sectors. There can be no guarantee that a company deemed to meet
ESG standards will actually conduct its affairs in a manner that is less destructive to the environment, or promote positive social and economic
developments. Parameters set by Matthews Asia are subject to change.
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 21Matthews Asia Investment Team—Highly Collaborative Environment
President and Global Chief Investment Officer
Yu-Ming Wang
Chief Investment Officer Research Principal, China Open Communication and Exchange of Ideas
Robert J. Horrocks, PhD Richard Gao
Portfolio Managers Analysts Formal
Winnie Chwang Siddharth Bhargava — Weekly all-hands meeting to discuss macro,
Raymond Z. Deng Kathlyn Collins stock ideas, trip debriefs and ad-hoc topics
Robert Harvey, CFA Donghoon Han
Robert J. Horrocks, PhD — Bi-weekly portfolio review meeting to review
Grace Ma
Tiffany Hsiao, CFA trades, macro, risk
Bo Ning
Taizo Ishida Sojung Park — Monthly portfolio compliance meeting to
YuanYuan Ji Yinyan Ibanez, CFA discuss potential compliance matters
Teresa Kong, CFA Jeremy Sutch, CFA — Weekly strategy-specific team meeting to
John Paul Lech Haopeng Yang, PhD
Elli Lee
discuss specific portfolio construction issues
Alex Zarechnak or individual stocks
S. Joyce Li, CFA Hardy Zhu
Kenneth Lowe, CFA Julia Zhu — Committee meetings: Trade Management
Andrew Mattock, CFA Oversight, Investment Risk, other
Peeyush Mittal, CFA Macro Investment
Michael J. Oh, CFA Strategist, China Informal
Satya Patel Andy Rothman
Sharat Shroff, CFA — Sit together—open floor plan
Inbok Song — Daily ad-hoc meetings around trip debriefs,
Shuntaro Takeuchi Portfolio Strategists
fixed income insights, macro strategy, team
Vivek Tanneeru David Dali
structure and process, new product ideas, etc.
Sherwood Zhang, CFA Jeremy Murden, CAIA
Yu Zhang, CFA Tiffany Shi, CFA, CAIA
Wei Zhang
Beini Zhou, CFA
Note: Traders not referenced above but are included in overall investment team count.
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 22Senior Investment Team Members—Redefining “Local”
Years of Experience
Asia Countries Asian Languages &
Name Investment Focus Asia Industry Firm Home Country
Lived In Dialects Spoken
Yu-Ming Wang Asia Regional 12 34Matthews Asia—“Boots on-the-Ground”
Fundamental, bottom-up investment process
3,400+ On-Site Meetings in Asia Since 2017*
Identifying investment opportunities that stand to prosper
Korea
from Asia’s transformation calls for in-depth, on-the-
180+ Japan
China ground, bottom-up research and active management:
610
820+
Hong Over 2,600 company meetings in 2019
Macau
8
Kong Taiwan Half of the meetings are on-site visits in Asia in
Bangladesh
India 20+
Myanmar Vietnam
630+ 140+ locations ranging from Asian financial centers to
265 2 60+ remote island outposts
Philippines
Thailand 75+
Sri Lanka 180+
Malaysia
15+ 45
Indonesia
120+
Singapore
160+
Australia
50+
New Zealand
9
*From 1/1/2017 to 12/31/2019
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 24Strategies for Investing in Asia
Matthews Asia offers a range of strategies across the risk-reward spectrum
GLOBAL EMERGING MARKETS
Emerging Markets Equity
ASIA FIXED INCOME
Asia Total Return Bond*
Asia Credit Opportunities
ASIA GROWTH AND INCOME ASIA GROWTH
Asian Growth and Income Asia Growth China
Asia Dividend Pacific Tiger India
China Dividend Asia ESG Japan
Emerging Asia Korea
Asia Innovators
ASIA VALUE ASIA SMALL COMPANY
Asia Value Asia Small Companies
China Small Companies
*Formerly known as Asia Strategic Income
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 25Fund Profile | Matthews Asia Dividend Fund
FUND FACTS Investment Objective
Inception Date Total return with an emphasis on providing current income.
Investor Class: 10/31/06
Institutional Class: 10/29/10 Approach
Ticker Invest in companies that offer attractive dividend payments relative to their
Investor Class: MAPIX current share price and/or have the propensity to grow their dividends over
Institutional Class: MIPIX a three-year period.
Cap Range
All Cap
Number of Holdings
50 to 80 Lead Manager Co-Managers
Turnover Range
20% to 40%
Benchmark
MSCI All Country Asia Pacific
Index
YU ZHANG, CFA ROBERT HORROCKS, PhD SHERWOOD ZHANG, CFA S. JOYCE LI, CFA
There is no guarantee that the Matthews Asia Dividend Fund or the companies in its portfolio will pay or continue to pay dividends.
This presentation must be preceded or accompanied by a Matthews Asia Funds prospectus.
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© 2020 Matthews International Capital Management, LLC PT001b_2Q20 26Dividends Contribute to Total Return
Breakdown of total returns (MSCI Indices, 2000 – 2020)
400%
350%
300%
250%
200%
150%
100%
50%
0%
-50%
-100%
China Asia ex Japan Australia Europe USA Japan U.K.
Dividend Return Price Return
US$ returns.
Time period: December 31, 1999 – June 30, 2020
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
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 27Dividends—How Asia Compares to Europe and the U.S.
Asia
Europe
U.S.
8.4%
$629
3.4%
6.4%
$452 2.6%
5.6%
$366
1.9%
Size of Dividend Pool (Bil US$)* Dividend Yield** Dividend Growth (2002-2019)***
*2020 dividends by index members as of June 30, 2020; Europe (Bloomberg European 500 Index), Asia Pacific (MSCI AC Asia Pacific Index), U.S. (S&P
500 Index).
**Trailing Dividend yield estimates for 2020 as of 6/30/20 based on FactSet aggregates.
*** Compound annual growth rate (CAGR) based on index constituents of Europe (Bloomberg European 500 Index), Asia Pacific (MSCI AC Asia Pacific
Index), U.S. (S&P 500 Index) as of 12/31/02, excluding those that are no longer in existence as of fiscal year 2019. Sources: FactSet Research Systems,
MSCI, S&P, Bloomberg
Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible
to invest directly in an index.
Sources: FactSet Research Systems, MSCI, S&P, Bloomberg
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 28Investment Returns | Matthews Asia Dividend Fund
As of June 30, 2020
AVERAGE ANNUAL TOTAL RETURNS
Since Inception
3 Months 1 Year 3 Years 5 Years 10 Years (10/31/2006)
20.37%
15.99%
7.98%
6.95% 6.30%
4.09% 4.33% 4.03%
3.50%
2.31% 2.26%
1.35%
Matthews Asia Dividend Fund (Investor Class) MSCI All Country Asia Pacific Index
Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted
represents past performance and is no guarantee of future results. Investment return and principal value will
fluctuate with market conditions so that when redeemed, shares may be worth more or less than their original
cost. Current performance may be lower or higher than the return figures quoted. Returns would have been
lower if certain of the Fund’s fees and expenses had not been waived. For the Fund’s most recent month-end
performance visit matthewsasia.com. Indexes are unmanaged and it is not possible to invest directly in an index.
Please refer to disclosures for index definitions. Due to current market volatility associated with the COVID-19
pandemic, funds may experience significant negative short-term performance.
Index since inception value calculated from 10/31/2006
Sources: BNY Mellon Investment Servicing, Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 29Matthews Asia Dividend Fund vs. MSCI AC Asia Pacific Index Return Breakout
October 31, 2006 through June 30, 2020
Cumulative Return
250
198.4
200
150 138.7
110.3
100
72.5
52.5
50
19.9
0
Income Return Capital Return Total Return Including Fees and Expense
Accruals
Matthews Asia Dividend Fund (Investor Class) MSCI All Country Asia Pacific Index
Past performance is no guarantee of future results. Returns are calculated with a holdings-based methodology
using software supplied by FactSet Research Systems, Inc. Income Return and Capital Return are for positions only
and exclude fees and expense accruals. Returns will not equate to the standard, published performance for the
Fund. The characteristics shown may not be representative of the Fund's current or future investments. Indexes are
unmanaged and it is not possible to invest directly in an index. Please refer to the disclosures for index definition.
Source: FactSet Research Systems, Inc.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 30Matthews Asia Dividend Fund Market Cap Breakout
October 31, 2006 through June 30, 2020
Percentage of Return
100.00% Mega Cap (over $25B)
14.01% 14.45% 14.20%
90.00% Large Cap ($10B-$25B)
3.34% 7.55%
80.00% 10.89% Mid Cap ($3B-$10B)
21.26% Small Cap (under $3B)
70.00% 20.53%
19.94% Cash & Other
60.00%
50.00%
40.00%
30.00% 46.07% 59.87% 52.19%
20.00%
10.00%
9.09% 5.54%
0.00% 1.08%
-10.00%
Income Return Capital Return Income + Capital Return
*excluding fees and expense accruals
Cash & Other may include cash, positions without beginning of period market values, offsets, warrants, and rights.
Past performance is no guarantee of future results. Returns are calculated with a holdings-based methodology using software
supplied by FactSet Research Systems, Inc. Returns will not equate to the standard, published performance for the Fund. The
characteristics shown may not be representative of the Fund's current or future investments.
Source: FactSet Research Systems, Inc
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 31Historical Results | Matthews Asia Dividend Fund
Attempts to offer more stable means to Asia’s growth while providing some downside protection
UPSIDE/DOWNSIDE CAPTURE OCTOBER 31, 2006 TO JUNE 30, 2020
Up Markets Down Markets All Markets
3.20% 3.48%
90.7% 0.73% 0.45%
76.9%
-2.84%
-3.93%
Matthews Asia Dividend Fund (Investor Class) MSCI AC Asia Pacific Index
The up and down capture is a measure of how well a manager was able to replicate or improve on phases of positive
average monthly benchmark returns, and how adversely the manager was affected by phases of negative average
monthly benchmark returns. Inception to date, the Fund had a 90.7% upside capture and a 76.9% downside capture.
Returns reflect performance in the Investor Share Class. Assumes reinvestment of all dividends and/or distributions
before taxes. All performance quoted represents past performance and is no guarantee of future results.
Investment return and principal value will fluctuate with market conditions so that when redeemed, shares may be
worth more or less than their original cost. Current performance may be lower or higher than the return figures
quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived. For the
Fund’s most recent month-end performance visit matthewsasia.com. Indexes are unmanaged and it is not possible
to invest directly in an index. Please refer to the disclosure for index definitions.
Sources: Morningstar, Zephyr StyleADVISOR
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 32Case Study | Ascendas India Trust
Steady dividend payer
CASH FLOW GENERATION
ABILITY
US$ (MN) SGD Cents
100 5-yr dividend CAGR*: 4% 6.5 — Organic growth from occupancy pick-up and
positive rent revision
80 6.3
— Accretive acquisition pipeline
60 6.0
— Cash cow business model
40 5.8
20 5.5
WILLINGNESS
0 5.3
— REITs are required to pay out at least 90%
rental income in exchange for favorable tax
-20 5.0 shield
-40 4.8 DIVIDEND GROWTH
-60 4.5 — Dividends per share grew 4% CAGR from
FY 2013 FY 2014 FY 2015 FY2016 FY2017 FY2018 2013 – 2018
Capital Expenditures Cash From Operations — Trailing 12-month dividend yield is 5%**
Free Cash Flow DPS (SGD Cents)
*CAGR = Compound Annual Growth Rate
**Trailing Dividend Yield figure from Bloomberg as of 1/15/2020
There is no guarantee that a company will maintain or grow its dividend pay-out ratio, or pay dividends. The information in this case
study is presented solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of the
security discussed (the “Security”), nor a representation as to whether the Security is currently held by the Fund. The results of any
possible investment in the Security are not representative of the results of other investments by the Fund. Performance of the Fund
and a list of current holdings as of a recent date are available at matthewsasia.com. Past performance is no guarantee of future
results. The statements above are based on the beliefs and assumptions of our portfolio management team and on the information
currently available to our team at the time of such statements. Although we believe that the expectations reflected in these
statements are reasonable, we can give no assurance that these expectations will prove to be correct.
Sources: Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 33Case Study | Anritsu Corp
Dividend Grower Riding the 5G Tide
CASH FLOW GENERATION ABILITY
Japanese Yen (BN) DPS Yen — Leading player in telecom testing equipment
20 35 globally
15 30 — Strong earnings upcycle takes hold ahead of
major network technology generation shifts
25
10 — Cash cow business model with high pricing
20 power
5
15 WILLINGNESS
0
10 - Throughout business cycles the company pays
-5 solid dividend.
5
- The company raises payout in earnings down
-10 0 cycle to mitigate impact on dividends
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
DIVIDEND GROWTH
Capital Expenditures Cash From Operations — Dividends per share grew 5% CAGR over the
past 5 years and 27% CAGR over the past 3
Free Cash Flow DPS (Yen)
years.
— Dividend yield is 1.3%**
*CAGR = Compound Annual Growth Rate
**Dividend Yield figure from Bloomberg as 6/1/2020
There is no guarantee that a company will maintain or grow its dividend pay-out ratio, or pay dividends. The information in this case
study is presented solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of the
security discussed (the “Security”), nor a representation as to whether the Security is currently held by the Fund. The results of any
possible investment in the Security are not representative of the results of other investments by the Fund. Performance of the Fund
and a list of current holdings as of a recent date are available at matthewsasia.com. Past performance is no guarantee of future
results. The statements above are based on the beliefs and assumptions of our portfolio management team and on the information
currently available to our team at the time of such statements. Although we believe that the expectations reflected in these
statements are reasonable, we can give no assurance that these expectations will prove to be correct.
Sources: Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 34Matthews Asia Dividend Fund Balances Dividend Yield and Growth
DIVIDEND YIELD VS. DIVIDEND GROWTH
3-Yr Dividend Growth PAYOUT RATIO
45%
Red 80+%
40% Blue 50-80%
35% Green 30-50%
30% Yellow 0-30%
25%
20%
15%
10%
5%
0%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
-5%
-10%
Dividend Yield (%)
Bubble sizes are in proportion to the portfolio weight of individual positions as of June 30, 2020. Dividend yield and dividend growth data depicted are for
securities held in the Matthews Asia Dividend Fund for which all data metrics are available. This should not be relied upon as a complete listing of all
securities held in the portfolio. Each point represents a plotting of the portfolio company’s trailing dividend yield as of June 30, 2020 and its estimated 3-
year annual dividend growth rate. Color depiction represents a portfolio company’s dividend payout ratio based on company dividend policy, if available.
Otherwise 5-year average payout ratio is utilized (or longest available for companies with less than 5-year history) adjusted to exclude extraordinary or
temporary distributions. Estimated 3-year dividend growth was calculated as of June 30, 2020 using data from FactSet Research Systems, Inc. and
Bloomberg and is forward looking. There is no guarantee that future dividend growth will be achieved. There is no guarantee that the composition of the
portfolio will remain unchanged or that the companies in the portfolio will achieve their forecasted dividend growth rate, maintain or grow their dividend
pay-out ratio, or pay dividends. Past yields are no guarantee of future yields.
Sources: FactSet Research Systems, Inc., Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 35Competitive Returns | Matthews Asia Dividend Fund
As of June 30, 2020
AVERAGE ANNUAL TOTAL RETURNS
Year to Date 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date
Investor Class (MAPIX) -2.62% 2.31% 2.26% 4.09% 6.95% 7.98% 10/31/06
Institutional Class (MIPIX) -2.57% 2.48% 2.39% 4.21% n.a 5.89% 10/29/10
MSCI All Country Asia Pacific 1
-6.29% 1.35% 3.50% 4.33% 6.30% 4.03%
Index
Lipper International Equity 1
-14.50% -8.22% -1.42% 0.43% 4.15% 1.87%
Income Funds Category Average
1 As of 10/31/2006
Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past
performance and is no guarantee of future results. Investment return and principal value will fluctuate with market
conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be
lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses
had not been waived. For the Fund’s most recent month-end performance visit matthewsasia.com. Indexes are unmanaged
and it is not possible to invest directly in an index. Please refer to disclosures for index definition. Due to current market
volatility associated with the COVID-19 pandemic, funds may experience significant negative short-term performance.
The Lipper Category Average does not reflect sales charges and is based on total return,
including reinvestment of dividends and capital gains, for the stated periods.
Sources: BNY Mellon Investment Servicing, Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 36Portfolio Characteristics | Matthews Asia Dividend Fund
As of June 30, 2020
MARKET CAP EXPOSURE (%)
Fund Benchmark Difference
Mega Cap (over $25B) 31.6 55.2 -23.6
Large Cap ($10B-$25B) 15.8 21.7 -5.9
Mid Cap ($3B-$10B) 29.8 20.8 9.0
Small Cap (under $3B) 22.7 2.3 20.4
Cash and Other Assets, Less Benchmark: MSCI All Country Asia Pacific Index
0.1 0.0 0.1
Liabilities *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
PORTFOLIO CHARACTERISTICS (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
Fund 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.
Assets $3.8 billion **The 30-Day Yield represents net investment income earned by the Fund over the
30-day period ended June 30, 2020, expressed as an annual percentage rate based on
Weighted Average Market Cap $45.5 billion the Fund’s share price at the end of the 30-day period. The 30-Day Yield should be
regarded as an estimate of the Fund’s rate of investment income, and it may not
P/E using FY1 Estimates* 21.8x equal the Fund’s actual income distribution rate. Information provided is unaudited.
Past yields are no guarantee of future yields. Source: BNY Mellon Investment
P/E using FY2 Estimates* 17.0x Servicing
1.18% Investor Class, ***The Dividend Yield (trailing) for the portfolio is the weighted average sum of
the dividends paid by each equity security held by the Fund over the last 12 months
(1.17% excluding expense waiver)
30-Day Yield** divided by the current price as of report date. The annualized dividend yield for the
1.27% Inst’l Class, Fund is for the equity-only portion of the portfolio. Please note that this is based on
(1.26% excluding expense waiver) gross equity portfolio holdings and does not reflect the actual yield an investor in the
Fund would receive. Past yields are no guarantee of future yields.
Dividend Yield*** 2.35%
The information contained in this presentation does not, in any way, constitute investment advice.
Portfolio characteristics for the Fund may vary from time to time from what is shown.
Sources: FactSet Research Systems, Inc., Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 37Portfolio Characteristics | Matthews Asia Dividend Fund
As of June 30, 2020
COUNTRY ALLOCATION (%) SECTOR ALLOCATION (%)
Fund Benchmark Difference Fund Benchmark Difference
China/Hong Kong 35.5 30.0 5.5
Consumer Discretionary 29.2 16.5 12.7
Japan 31.9 35.3 -3.4
Consumer Staples 13.4 6.7 6.7
South Korea 8.6 7.1 1.5
Information Technology 13.0 15.0 -2.0
Singapore 7.5 1.5 6.0
Australia 6.2 9.3 -3.1 Industrials 11.8 10.9 0.9
Taiwan 3.7 7.5 -3.8 Communication Services 11.5 11.2 0.3
Philippines 2.0 0.5 1.5 Real Estate 8.8 4.6 4.2
India 1.6 4.9 -3.3 Health Care 6.6 8.1 -1.5
Thailand 1.6 1.4 0.2
Materials 3.5 5.6 -2.1
Bangladesh 1.2 0.0 1.2
Financials 2.0 16.8 -14.8
Malaysia 0.0 1.1 -1.1
Energy 0.0 2.5 -2.5
Indonesia 0.0 0.9 -0.9
New Zealand 0.0 0.5 -0.5 Utilities 0.0 2.2 -2.2
Cash and Other Assets, Cash and Other Assets,
0.1 0.0 0.1 0.1 0.0 0.1
Less Liabilities Less Liabilities
Benchmark: MSCI All Country Asia Pacific Index
The information contained in this presentation does not, in any way, constitute investment advice.
Portfolio characteristics for the Fund may vary from time to time from what is shown.
Sources: FactSet Research Systems, Inc., Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 38Top Ten Holdings | Matthews Asia Dividend Fund
As of June 30, 2020
Company Sector Country %
Minth Group, Ltd. Consumer Discretionary China/Hong Kong 4.9
China Tourism Group Duty Free Corp., Ltd. Consumer Discretionary China/Hong Kong 3.8
Anritsu Corp. Information Technology Japan 3.8
Chongqing Brewery Co., Ltd. Consumer Staples China/Hong Kong 3.3
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 3.2
Breville Group, Ltd. Consumer Discretionary Australia 3.1
Hoya Corp. Health Care Japan 3.0
LG Chem, Ltd., Pfd. Materials South Korea 3.0
MISUMI Group, Inc. Industrials Japan 3.0
Shenzhou International Group Holdings, Ltd. Consumer Discretionary China/Hong Kong 2.7
Total for Top 10 33.8%
This information does not, in any way, constitute investment advice. Portfolio holdings may vary from time to time from what is
shown. It should not be assumed that any investment in the securities listed was or will be profitable. The information does not
constitute a recommendation to buy or sell any securities mentioned.
Sources: BNY Mellon Investment Servicing, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 39Attribution by Country | Matthews Asia Dividend Fund
Second Quarter 2020
Published Portfolio Return1 20.37% Selection +
Average Average Allocation Total
Interaction
Published Benchmark Return 15.99% Portfolio Wt Benchmark Wt Effect Effect
Effect
Published Relative Return2 4.38% Total 100.00 100.00 -1.87 6.41 4.53
Attributable Portfolio Return 20.53% China/Hong Kong 35.31 29.35 -0.12 5.46 5.33
South Korea 8.32 7.08 0.05 0.86 0.91
Attributable Relative Return 4.53%
Japan 32.73 36.37 0.23 0.07 0.29
1 Published portfolio return represents that of the Investor
Share Class. Vietnam 0.16 0.00 0.05 0.00 0.05
2 The published relative return is calculated as the difference Malaysia 0.00 1.10 0.03 0.00 0.03
of the published benchmark return from the published Pakistan 0.00 0.01 0.00 0.00 0.00
portfolio return.
New Zealand 0.00 0.44 -0.05 0.00 -0.05
Thailand 1.71 1.40 0.05 -0.14 -0.09
Philippines 2.28 0.50 0.08 -0.21 -0.13
India 1.64 4.75 -0.15 0.02 -0.13
Benchmark: MSCI All Country Asia Pacific Index
The attribution report shows the extent to which the portfolio manager’s Indonesia 0.53 0.90 -0.11 -0.07 -0.18
strategies affect a fund’s performance relative to the performance of the
fund’s benchmark index. Allocation Effect shows the effect on fund
Bangladesh 1.20 0.00 -0.19 0.00 -0.19
performance of either over- or under-weighting a market (a sector, country Singapore 7.17 1.65 -0.37 0.17 -0.20
or region, depending on the type of fund) relative to its benchmark.
Selection + Interaction Effect shows how the decision to hold individual Taiwan 4.29 7.45 -0.14 -0.14 -0.28
securities within the particular sector, country or region performed relative
to the benchmark. Australia 3.82 9.00 -0.72 0.40 -0.33
Attributed performance is calculated using FactSet Research Systems, Inc. Cash 0.88 0.00 -0.18 0.00 -0.18
The methodology of calculation is different from the published NAV and will
not match performance based on the published NAV. Performance shown is Unassigned -0.06 0.00 -0.31 0.00 -0.31
historical and no guarantee of future results. Current performance may be
lower or higher. Returns current to the most recent month-end are
available at matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or less than
their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned may include
fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 40Attribution by Sector | Matthews Asia Dividend Fund
Second Quarter 2020
Published Portfolio Return1 20.37% Selection +
Average Average Allocation Total
Interaction
Published Benchmark Return 15.99% Portfolio Wt Benchmark Wt Effect Effect
Effect
Published Relative Return2 4.38%
Total 100.00 100.00 -0.52 5.05 4.53
Attributable Portfolio Return 20.53%
Consumer
27.66 15.91 0.35 3.58 3.93
Attributable Relative Return 4.53% Discretionary
1 Published portfolio return represents that of the Investor Financials 3.26 17.36 0.81 0.21 1.02
Share Class.
Materials 2.95 5.53 -0.21 1.00 0.80
2 The published relative return is calculated as the difference
of the published benchmark return from the published Real Estate 8.63 4.84 -0.36 0.84 0.48
portfolio return.
Consumer Staples 14.76 6.75 -0.56 1.00 0.44
Benchmark: MSCI All Country Asia Pacific Index
Information
The attribution report shows the extent to which the portfolio
12.52 14.62 -0.05 0.37 0.31
Technology
manager’s strategies affect a fund’s performance relative to the
performance of the fund’s benchmark index. Allocation Effect Utilities 0.04 2.48 0.32 -0.01 0.31
shows the effect on fund performance of either over- or under-
weighting a market (a sector, country or region, depending on the Industrials 10.44 11.25 -0.03 -0.04 -0.07
type of fund) relative to its benchmark. Selection + Interaction
Effect shows how the decision to hold individual securities within Energy 0.50 2.51 -0.12 -0.19 -0.31
the particular sector, country or region performed relative to the
benchmark. Health Care 6.41 7.82 -0.10 -0.35 -0.45
Attributed performance is calculated using FactSet Research Communication
Systems, Inc. The methodology of calculation is different from the 12.01 10.93 -0.07 -1.35 -1.43
Services
published NAV and will not match performance based on the
published NAV. Performance shown is historical and no guarantee Cash 0.88 0.00 -0.18 0.00 -0.18
of future results. Current performance may be lower or higher.
Returns current to the most recent month-end are available at Unassigned -0.06 0.00 -0.31 0.00 -0.31
matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned
may include fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 41Attribution by Country | Matthews Asia Dividend Fund
One Year June 30, 2019 to June 30, 2020
Published Portfolio Return1 2.31% Average Selection +
Portfolio Average Allocation Interaction Total
Published Benchmark Return 1.35% Wt Benchmark Wt Effect Effect Effect
Published Relative Return2 0.96% Total Portfolio 100.00 100.00 -2.13 3.40 1.27
Attributable Portfolio Return 2.62% Australia 2.28 10.06 1.21 0.92 2.13
Attributable Relative Return 1.27% China/Hong Kong 38.02 26.84 0.27 0.84 1.11
Japan 27.19 36.89 -0.36 0.87 0.51
1 Published portfolio return represents that of the Investor Share Singapore 7.36 1.87 -1.18 1.51 0.33
Class.
India 1.99 5.16 0.51 -0.24 0.27
2 The published relative return is calculated as the difference of
the published benchmark return from the published portfolio Malaysia 0.00 1.16 0.16 0.00 0.16
return.
Philippines 1.79 0.59 -0.21 0.33 0.12
Thailand 1.91 1.57 -0.05 0.12 0.07
Benchmark: MSCI All Country Asia Pacific Index
Taiwan 5.26 7.15 -0.28 0.34 0.06
The attribution report shows the extent to which the portfolio
manager’s strategies affect a fund’s performance relative to the Pakistan 0.00 0.02 0.00 0.00 0.00
performance of the fund’s benchmark index. Allocation Effect
shows the effect on fund performance of either over- or under- Vietnam 0.71 0.00 -0.08 0.00 -0.08
weighting a market (a sector, country or region, depending on the
type of fund) relative to its benchmark. Selection + Interaction New Zealand 0.00 0.41 -0.08 0.00 -0.08
Effect shows how the decision to hold individual securities within Indonesia 1.15 1.13 -0.12 -0.31 -0.42
the particular sector, country or region performed relative to the
benchmark. Bangladesh 1.12 0.00 -0.49 0.00 -0.49
Attributed performance is calculated using FactSet Research
Systems, Inc. The methodology of calculation is different from the South Korea 9.88 7.16 -0.09 -0.98 -1.07
published NAV and will not match performance based on the
published NAV. Performance shown is historical and no guarantee
Cash 1.38 0.00 -0.27 0.00 -0.27
of future results. Current performance may be lower or higher. Unassigned -0.05 0.00 -1.07 0.00 -1.07
Returns current to the most recent month-end are available at
matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned may
include fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 42Attribution by Sector | Matthews Asia Dividend Fund
One Year June 30, 2019 to June 30, 2020
Published Portfolio Return1 2.31% Average Selection +
Portfolio Average Allocation Interaction Total
Published Benchmark Return 1.35% Wt Benchmark Wt Effect Effect Effect
Published Relative Return2 0.96% Total Portfolio 100.00 100.00 1.24 0.03 1.27
Attributable Portfolio Return 2.62% Financials 7.83 19.19 2.32 0.24 2.56
Attributable Relative Return 1.27% Real Estate 6.81 5.29 -0.39 1.88 1.49
1 Published portfolio return represents that of the Investor Share Materials 3.17 5.85 0.21 0.57 0.77
Class. Information 10.82 13.90 -0.65 1.02 0.37
2 The published relative return is calculated as the difference of Technology
the published benchmark return from the published portfolio
return. Consumer Staples 15.34 6.49 0.08 0.24 0.32
Utilities 1.98 2.54 0.15 0.05 0.20
Benchmark: MSCI All Country Asia Pacific Index
Consumer 25.94 15.20 0.84 -1.16 -0.32
The attribution report shows the extent to which the portfolio Discretionary
manager’s strategies affect a fund’s performance relative to the
performance of the fund’s benchmark index. Allocation Effect Energy 1.70 2.88 0.25 -0.64 -0.39
shows the effect on fund performance of either over- or under-
weighting a market (a sector, country or region, depending on the Industrials 9.72 11.81 0.12 -0.56 -0.44
type of fund) relative to its benchmark. Selection + Interaction
Effect shows how the decision to hold individual securities within Health Care 5.31 6.78 -0.43 -0.12 -0.55
the particular sector, country or region performed relative to the
benchmark. Communication 10.05 10.07 -0.13 -1.27 -1.40
Attributed performance is calculated using FactSet Research Services
Systems, Inc. The methodology of calculation is different from the
published NAV and will not match performance based on the Cash 1.38 0.00 -0.27 0.00 -0.27
published NAV. Performance shown is historical and no guarantee
of future results. Current performance may be lower or higher. Unassigned -0.05 0.00 -0.85 -0.22 -1.07
Returns current to the most recent month-end are available at
matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned may
include fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2020 Matthews International Capital Management, LLC PT001b_2Q20 43Attribution by Country | Matthews Asia Dividend Fund
Three Years June 30, 2017 to June 30, 2020
Published Portfolio Return1 2.26% Average Selection +
Portfolio Average Allocation Interaction Total
Published Benchmark Return 3.50% Wt Benchmark Wt Effect Effect Effect
Published Relative Return2 -1.24% Total Portfolio 100.00 100.00 -1.43 0.34 -1.09
Attributable Portfolio Return 2.43% China/Hong Kong 37.36 24.83 0.24 1.14 1.38
Attributable Relative Return -1.09% Australia 1.98 10.52 0.24 0.47 0.71
Singapore 5.62 2.00 -0.36 0.47 0.11
1 Published portfolio return represents that of the Investor Share Philippines 1.30 0.61 -0.04 0.14 0.10
Class.
Taiwan 3.97 6.85 -0.06 0.14 0.08
2 The published relative return is calculated as the difference of
the published benchmark return from the published portfolio Malaysia 0.00 1.29 0.07 0.00 0.07
return.
Pakistan 0.00 0.03 0.01 0.00 0.01
United States 0.00 0.09 0.01 0.00 0.01
Benchmark: MSCI All Country Asia Pacific Index
United Kingdom 0.26 0.00 -0.02 0.00 -0.02
The attribution report shows the extent to which the portfolio
manager’s strategies affect a fund’s performance relative to the New Zealand 0.00 0.34 -0.04 0.00 -0.04
performance of the fund’s benchmark index. Allocation Effect
shows the effect on fund performance of either over- or under- Vietnam 1.13 0.00 -0.08 0.00 -0.08
weighting a market (a sector, country or region, depending on the
type of fund) relative to its benchmark. Selection + Interaction Thailand 1.77 1.45 0.01 -0.15 -0.14
Effect shows how the decision to hold individual securities within Indonesia 1.82 1.21 -0.05 -0.16 -0.21
the particular sector, country or region performed relative to the
benchmark. Bangladesh 0.86 0.00 -0.22 0.00 -0.22
Attributed performance is calculated using FactSet Research
Systems, Inc. The methodology of calculation is different from the Japan 27.54 37.69 -0.07 -0.39 -0.46
published NAV and will not match performance based on the
published NAV. Performance shown is historical and no guarantee
India 3.04 5.11 0.15 -0.66 -0.51
of future results. Current performance may be lower or higher. South Korea 11.54 7.97 -0.16 -0.67 -0.82
Returns current to the most recent month-end are available at
matthewsasia.com. Investment returns and principal value will Cash 1.91 0.00 -0.02 0.00 -0.02
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited. Unassigned -0.08 0.00 -1.04 0.00 -1.04
Please refer to the disclosures for index definition. Unassigned may
include fees, expense accruals, offsets, warrants and rights.
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