UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08510
Matthews International Funds
(Exact name of registrant as specified in charter)
Four Embarcadero Center, Suite 550
San Francisco, CA 94111
(Address of principal executive offices) (Zip code)
William J. Hackett, President
Four Embarcadero Center, Suite 550
San Francisco, CA 94111
(Name and address of agent for service)
Registrant’s telephone number, including area code: 415-788-7553
Date of fiscal year end: December 31
Date of reporting period: June 30, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. | Reports to Stockholders. |
The Report to Shareholders is attached herewith.
Matthews Asia Funds | Semi-Annual Report
June 30, 2020 | matthewsasia.com
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website matthewsasia.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 800.789.ASIA (2742).
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with a Fund, you can call 800.789.ASIA (2742) to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your account if you invest through your financial intermediary or all Funds held directly with Matthews Asia Funds.
Investor Class Performance and Expenses (June 30, 2020)
Investor Class | Average Annual Total Return† |
Inception |
Prospectus Expense Ratios* |
Prospectus and Expense |
||||||||||||||||||||||||
1 year | 5 years | 10 years | Since Inception |
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GLOBAL EMERGING MARKETS STRATEGY |
||||||||||||||||||||||||||||
Emerging Markets Equity Fund (MEGMX) |
n.a. | n.a. | n.a. | 16.70% | 4/30/20 | 2.77% | 1.15% | 1 | ||||||||||||||||||||
ASIA FIXED INCOME STRATEGIES |
||||||||||||||||||||||||||||
Asia Total Return Bond Fund (MAINX)** |
0.45% | 4.26% | n.a. | 4.22% | 11/30/11 | 1.08% | 1.07% | 1 | ||||||||||||||||||||
Asia Credit Opportunities Fund (MCRDX) |
-1.30% | n.a. | n.a. | 4.13% | 4/29/16 | 1.24% | 1.12% | 1 | ||||||||||||||||||||
ASIA GROWTH AND INCOME STRATEGIES |
||||||||||||||||||||||||||||
Asian Growth and Income Fund (MACSX) |
-3.38% | 2.06% | 4.74% | 8.48% | 9/12/94 | 1.08% | 1.08% | |||||||||||||||||||||
Asia Dividend Fund (MAPIX) |
2.31% | 4.09% | 6.95% | 7.98% | 10/31/06 | 1.03% | 1.02% | 2 | ||||||||||||||||||||
China Dividend Fund (MCDFX) |
3.56% | 6.94% | 9.99% | 9.76% | 11/30/09 | 1.15% | 1.15% | |||||||||||||||||||||
ASIA VALUE STRATEGY |
||||||||||||||||||||||||||||
Asia Value Fund (MAVRX) |
-3.33% | n.a. | n.a. | 6.40% | 11/30/15 | 1.85% | 1.37% | 3 | ||||||||||||||||||||
ASIA GROWTH STRATEGIES |
||||||||||||||||||||||||||||
Asia Growth Fund (MPACX) |
18.17% | 9.04% | 9.53% | 9.49% | 10/31/03 | 1.09% | 1.09% | |||||||||||||||||||||
Pacific Tiger Fund (MAPTX) |
-2.00% | 3.64% | 7.01% | 8.11% | 9/12/94 | 1.08% | 1.05% | 2 | ||||||||||||||||||||
Asia ESG Fund (MASGX) |
3.32% | 4.90% | n.a. | 4.42% | 4/30/15 | 1.54% | 1.38% | 3 | ||||||||||||||||||||
Emerging Asia Fund (MEASX) |
-24.51% | -3.34% | n.a. | -0.25% | 4/30/13 | 1.65% | 1.42% | 3 | ||||||||||||||||||||
Asia Innovators Fund (MATFX) |
38.22% | 12.33% | 13.19% | 5.24% | 12/27/99 | 1.19% | 1.19% | |||||||||||||||||||||
China Fund (MCHFX) |
23.58% | 9.21% | 7.30% | 10.26% | 2/19/98 | 1.09% | 1.09% | |||||||||||||||||||||
India Fund (MINDX) |
-21.86% | -1.80% | 4.06% | 8.08% | 10/31/05 | 1.11% | 1.11% | |||||||||||||||||||||
Japan Fund (MJFOX) |
10.88% | 5.86% | 10.27% | 6.07% | 12/31/98 | 0.93% | 0.93% | |||||||||||||||||||||
Korea Fund (MAKOX) |
0.41% | 0.73% | 6.83% | 5.33% | 1/3/95 | 1.15% | 1.15% | |||||||||||||||||||||
ASIA SMALL COMPANY STRATEGIES |
||||||||||||||||||||||||||||
Asia Small Companies Fund (MSMLX) |
14.74% | 3.10% | 6.72% | 10.29% | 9/15/08 | 1.60% | 1.41% | 3 | ||||||||||||||||||||
China Small Companies Fund (MCSMX) |
79.85% | 18.72% | n.a. | 11.40% | 5/31/11 | 1.62% | 1.38% | 3 |
† | Annualized performance for periods of at least one year, otherwise cumulative. |
* | These figures are from the Funds’ prospectus dated as of April 29, 2020, and may differ from the actual expense ratios for fiscal year 2020, as shown in the financial highlights section of this report. |
** | The Fund’s name changed from Matthews Asia Strategic Income Fund to Matthews Asia Total Return Bond Fund on January 31, 2020. |
1 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 0.90% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 0.90%. Pursuant to this agreement, any amount waived for prior fiscal years with respect to the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund is not subject to recoupment. For the Matthews Emerging Markets Equity Fund, if the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
2 | Matthews has contractually agreed to waive a portion of its advisory fee and administrative and shareholder services fee if the Fund’s average daily net assets are over $3 billion, as follows: for every $2.5 billion average daily net assets of the Fund that are over $3 billion, the advisory fee rate and the administrative and shareholder services fee rate for the Fund with respect to such excess average daily net assets will be each reduced by 0.01%, in each case without reducing such fee rate below 0.00%. Any amount waived by Matthews pursuant to this agreement may not be recouped by Matthews. This agreement will remain in place until April 30, 2021 and may be terminated (i) at any time by the Board of Trustees upon 60 days’ prior written notice to Matthews; or (ii) by Matthews at the annual expiration date of the agreement upon 60 days’ prior written notice to the Trust, in each case without payment of any penalty. |
3 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 1.20% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
MATTHEWS ASIA FUNDS |
Institutional Class Performance and Expenses (June 30, 2020)
Institutional Class | Average Annual Total Return† | Inception Date |
Prospectus Expense Ratios* |
Prospectus Expense Ratios after Fee Waiver and Expense Reimbursement* |
||||||||||||||||||||||||
1 year | 5 years | 10 years | Since Inception |
|||||||||||||||||||||||||
GLOBAL EMERGING MARKETS STRATEGY |
||||||||||||||||||||||||||||
Emerging Markets Equity Fund (MIEFX) |
n.a. | n.a. | n.a. | 16.70% | 4/30/20 | 2.57% | 0.90% | 1 | ||||||||||||||||||||
ASIA FIXED INCOME STRATEGIES |
||||||||||||||||||||||||||||
Asia Total Return Bond Fund (MINCX)** |
0.51% | 4.51% | n.a. | 4.44% | 11/30/11 | 0.97% | 0.90% | 1 | ||||||||||||||||||||
Asia Credit Opportunities Fund (MICPX) |
-1.09% | n.a. | n.a. | 4.37% | 4/29/16 | 1.07% | 0.90% | 1 | ||||||||||||||||||||
ASIA GROWTH AND INCOME STRATEGIES |
||||||||||||||||||||||||||||
Asian Growth and Income Fund (MICSX) |
-3.17% | 2.22% | n.a. | 3.60% | 10/29/10 | 0.94% | 0.94% | |||||||||||||||||||||
Asia Dividend Fund (MIPIX) |
2.48% | 4.21% | n.a. | 5.89% | 10/29/10 | 0.93% | 0.92% | 2 | ||||||||||||||||||||
China Dividend Fund (MICDX) |
3.72% | 7.12% | n.a. | 8.85% | 10/29/10 | 1.01% | 1.01% | |||||||||||||||||||||
ASIA VALUE STRATEGY |
||||||||||||||||||||||||||||
Asia Value Fund (MAVAX) |
-3.21% | n.a. | n.a. | 6.65% | 11/30/15 | 1.74% | 1.20% | 3 | ||||||||||||||||||||
ASIA GROWTH STRATEGIES |
||||||||||||||||||||||||||||
Asia Growth Fund (MIAPX) |
18.29% | 9.23% | n.a. | 7.92% | 10/29/10 | 0.94% | 0.94% | |||||||||||||||||||||
Pacific Tiger Fund (MIPTX) |
-1.88% | 3.82% | n.a. | 5.26% | 10/29/10 | 0.93% | 0.91% | 2 | ||||||||||||||||||||
Asia ESG Fund (MISFX) |
3.48% | 5.15% | n.a. | 4.65% | 4/30/15 | 1.41% | 1.20% | 3 | ||||||||||||||||||||
Emerging Asia Fund (MIASX) |
-24.39% | -3.12% | n.a. | -0.03% | 4/30/13 | 1.51% | 1.20% | 3 | ||||||||||||||||||||
Asia Innovators Fund (MITEX) |
38.36% | 12.53% | n.a. | 14.80% | 4/30/13 | 1.05% | 1.05% | |||||||||||||||||||||
China Fund (MICFX) |
23.83% | 9.40% | n.a. | 5.66% | 10/29/10 | 0.91% | 0.91% | |||||||||||||||||||||
India Fund (MIDNX) |
-21.76% | -1.62% | n.a. | 2.31% | 10/29/10 | 0.94% | 0.94% | |||||||||||||||||||||
Japan Fund (MIJFX) |
10.92% | 5.94% | n.a. | 9.38% | 10/29/10 | 0.88% | 0.88% | |||||||||||||||||||||
Korea Fund (MIKOX) |
0.19% | 0.81% | n.a. | 5.45% | 10/29/10 | 1.05% | 1.05% | |||||||||||||||||||||
ASIA SMALL COMPANY STRATEGIES |
||||||||||||||||||||||||||||
Asia Small Companies Fund (MISMX) |
14.99% | 3.33% | n.a. | 4.77% | 4/30/13 | 1.46% | 1.20% | 3 | ||||||||||||||||||||
China Small Companies Fund (MICHX) |
79.99% | n.a. | n.a. | 27.58% | 11/30/17 | 1.51% | 1.20% | 3 |
† | Annualized performance for periods of at least one year, otherwise cumulative. |
* | These figures are from the Funds’ prospectus dated as of April 29, 2020, and may differ from the actual expense ratios for fiscal year 2020, as shown in the financial highlights section of this report. |
** | The Fund’s name changed from Matthews Asia Strategic Income Fund to Matthews Asia Total Return Bond Fund on January 31, 2020. |
1 | Matthews has contractually agreed to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90%. Pursuant to this agreement, any amount waived for prior fiscal years with respect to the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund is not subject to recoupment. For the Matthews Emerging Markets Equity Fund, if the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
2 | Matthews has contractually agreed to waive a portion of its advisory fee and administrative and shareholder services fee if the Fund’s average daily net assets are over $3 billion, as follows: for every $2.5 billion average daily net assets of the Fund that are over $3 billion, the advisory fee rate and the administrative and shareholder services fee rate for the Fund with respect to such excess average daily net assets will be each reduced by 0.01%, in each case without reducing such fee rate below 0.00%. Any amount waived by Matthews pursuant to this agreement may not be recouped by Matthews. This agreement will remain in place until April 30, 2021 and may be terminated (i) at any time by the Board of Trustees upon 60 days’ prior written notice to Matthews; or (ii) by Matthews at the annual expiration date of the agreement upon 60 days’ prior written notice to the Trust, in each case without payment of any penalty. |
3 | Matthews has contractually agreed to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
Past Performance: All performance quoted in this report is past performance and is no guarantee of future results. Investment return and principal value will fluctuate with changing 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 returns quoted. If certain of the Funds’ fees and expenses had not been waived, returns would have been lower. For the Funds’ most recent month-end performance, please call 800.789.ASIA (2742) or visit matthewsasia.com.
matthewsasia.com | 800.789.ASIA |
Cover photo: Asian Palace
This report has been prepared for Matthews International Funds (d/b/a Matthews Asia Funds) shareholders. It is not authorized for distribution to prospective investors unless accompanied or preceded by a current Matthews Asia Funds prospectus, which contains more complete information about the Funds’ investment objectives, risks and expenses. Additional copies of the prospectus or summary prospectus may be obtained at matthewsasia.com. Please read the prospectus carefully before you invest or send money.
The views and opinions in this report were current as of June 30, 2020. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of a Fund’s future investment intent. Current and future portfolio holdings are subject to risk.
Statements of fact are from sources considered reliable, but neither the Funds nor the Investment Advisor makes any representation or guarantee as to their completeness or accuracy.
*The Fund’s name changed from Matthews Asia Strategic Income Fund to Matthews Asia Total Return Bond Fund on January 31, 2020.
Investment Risk: Mutual fund shares are not deposits or obligations of, or guaranteed by, any depositary institution. Shares are not insured by the FDIC, Federal Reserve Board or any government agency and are subject to investment risks, including possible loss of principal amount invested. Investing in international and emerging markets may involve additional 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of a concentration in a specific industry, sector or geographic location. Investing in small and mid-size companies is more risky than investing in large companies as they may be more volatile and less liquid than larger companies. Please see the Funds’ Prospectuses and Statement of Additional Information for more risk disclosure.
4 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 5 |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 0.90% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 0.90%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | The Fund commenced operations on April 30, 2020. |
6 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||
|
Actual Return, Not Annualized | |||||||
Since Inception |
Inception Date |
|||||||
Investor Class (MEGMX) | 16.70% | 4/30/20 | ||||||
Institutional Class (MIEFX) | 16.70% | 4/30/20 | ||||||
MSCI Emerging Markets Index4 | 8.25% |
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
TOP TEN HOLDINGS5 | ||||||||
Sector | Country | % of Net Assets | ||||||
Alibaba Group Holding, Ltd. | Consumer Discretionary | China/Hong Kong | 6.8% | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. | Information Technology | Taiwan | 4.6% | |||||
Tencent Holdings, Ltd. | Communication Services | China/Hong Kong | 4.3% | |||||
Samsung Electronics Co., Ltd., Pfd. | Information Technology | South Korea | 3.6% | |||||
AIA Group, Ltd. | Financials | China/Hong Kong | 3.3% | |||||
Wuxi Biologics Cayman, Inc. | Health Care | China/Hong Kong | 2.2% | |||||
LVMH Moet Hennessy Louis Vuitton SE | Consumer Discretionary | France | 2.2% | |||||
NAVER Corp. | Communication Services | South Korea | 2.2% | |||||
Kotak Mahindra Bank, Ltd. | Financials | India | 2.2% | |||||
Banco BTG Pactual SA | Financials | Brazil | 2.2% | |||||
Total | 33.6% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
matthewsasia.com | 800.789.ASIA | 7 |
8 | MATTHEWS ASIA FUNDS |
Matthews Emerging Markets Equity Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 90.3%
matthewsasia.com | 800.789.ASIA | 9 |
Matthews Emerging Markets Equity Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
PREFERRED EQUITIES: 3.6%
10 | MATTHEWS ASIA FUNDS |
† | The Fund’s name changed from Matthews Asia Strategic Income Fund to Matthews Asia Total Return Bond Fund on January 31, 2020. |
* | Effective January 31, 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 January 31, 2020, 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. The Markit iBoxx Local Bond Index performance reflects the returns of the discontinued predecessor HSBC Asia Local Bond Index up to December 31, 2012 and the returns of the successor Markit iBoxx Local Bond Index thereafter. |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g. custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 0.90% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 0.90%. Pursuant to this agreement, any amount waived for prior fiscal years with respect to the Fund is not subject to recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | 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. |
4 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 11 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | Since Inception |
Inception Date |
||||||||||||||||||||||
Investor Class (MAINX) | 10.32% | -3.65% | 0.45% | 2.64% | 4.26% | 4.22% | 11/30/11 | |||||||||||||||||||||
Institutional Class (MINCX) | 10.39% | -3.55% | 0.51% | 2.88% | 4.51% | 4.44% | 11/30/11 | |||||||||||||||||||||
50% Markit iBoxx Asian Local Bond Index, 50% J.P. Morgan Asia Credit Index5 | 5.75% | 1.87% | 5.22% | 4.79% | 4.77% | 4.36% |
Performance 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.
INCOME DISTRIBUTION HISTORY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020
|
2019
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. |
Feb. |
Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. | Nov. |
Dec. |
Total |
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor (MAINX) | n.a. | $ | 0.06 | $ | 0.04 | $ | 0.00 | $ | 0.03 | $ | 0.04 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | $ | 0.17 | $ | 0.08 | $ | 0.10 | $ | 0.14 | $ | 0.12 | $ | 0.44 | |||||||||||||||||||||||||||||||||||||||||||||||
Inst’l (MINCX) | n.a. | $ | 0.07 | $ | 0.04 | $ | 0.01 | $ | 0.03 | $ | 0.04 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | $ | 0.19 | $ | 0.09 | $ | 0.11 | $ | 0.14 | $ | 0.12 | $ | 0.46 |
Note: This table does not include capital gains distributions. Totals may differ by $0.02 due to rounding. For income distribution history, visit matthewsasia.com.
30-DAY YIELD:
Investor Class: 5.65% (5.63% excluding waivers) Institutional Class: 5.89% (5.80% excluding waivers)
The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ended 6/30/20, expressed as an annual percentage rate based on 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 equal the Fund’s actual income distribution rate.
Source: BNY Mellon Investment Servicing (US) Inc. |
YIELD TO WORST: 6.24%
Yield to worst is the lowest yield that can be received on a bond assuming that the issuer does not default. It is calculated by utilizing the worst case assumptions for a bond with respect to certain income-reducing factors, including prepayment, call or sinking fund provisions. It does not represent the yield that an investor should expect to receive. Past yields are no guarantee of future yields.
Source: FactSet Research Systems |
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
5 | It is not possible to invest directly in an index. Source: Index data from HSBC, Markit iBoxx and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definitions. Effective January 31, 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 January 31, 2020, 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. The Markit iBoxx Asian Local Bond Index performance reflects the returns of the discontinued predecessor HSBC Asian Local Bond Index up to December 31, 2012 and the returns of the successor Markit iBoxx Asian Local Bond Index thereafter. |
TOP TEN HOLDINGS | ||||||||
Sector | Currency | % of Net Assets | ||||||
Wanda Properties International Co., Ltd., 7.250%, 01/29/2024 | Real Estate | U.S. Dollar | 4.9% | |||||
Network i2i, Ltd., 5.650%, 04/15/2068 | Communication Services | U.S. Dollar | 4.7% | |||||
Viet Nam Debt & Asset Trading Corp., 1.000%, 10/10/2025 | Financials | U.S. Dollar | 4.6% | |||||
CIFI Holdings Group Co., Ltd., 6.550%, 03/28/2024 | Real Estate | U.S. Dollar | 4.5% | |||||
Luye Pharma Group, Ltd., Cnv., 1.500%, 07/09/2024 | Health Care | U.S. Dollar | 4.4% | |||||
PB International BV, 7.625%, 01/26/2022 | Consumer Discretionary | U.S. Dollar | 4.4% | |||||
Bosideng International Holdings, Ltd., Cnv., 1.000%, 12/17/2024 | Consumer Discretionary | U.S. Dollar | 4.1% | |||||
ABJA Investment Co. Pte, Ltd., 5.450%, 01/24/2028 | Materials | U.S. Dollar | 4.0% | |||||
Logan Group Co., Ltd., 5.250%, 02/23/2023 | Real Estate | U.S. Dollar | 3.8% | |||||
Malaysia Government Bond, 4.642%, 11/07/2033 | Foreign Government Bonds | Malaysian Ringgit | 3.4% | |||||
% OF ASSETS IN TOP TEN | 42.8% |
12 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 13 |
Matthews Asia Total Return Bond Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
NON-CONVERTIBLE CORPORATE BONDS: 61.3%
14 | MATTHEWS ASIA FUNDS |
Matthews Asia Total Return Bond Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
CONVERTIBLE CORPORATE BONDS: 11.5%
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Currency Purchased |
Currency Sold | Counterparty | Settlement Date |
Unrealized Appreciation (Depreciation) |
||||||||||
CNY 14,368,260 | USD 2,020,000 | Bank of America, N.A. |
09/21/20 | $3,528 | ||||||||||
|
|
|||||||||||||
USD 1,000,000 | IDR 16,495,000,000 | Bank of America, N.A. |
07/09/20 | (147,259 | ) | |||||||||
KRW 5,270,220,000 | USD 4,600,000 | JPMorgan Chase & Co. |
07/16/20 | (211,777 | ) | |||||||||
THB 90,630,000 | USD 3,000,000 | Bank of America, N.A. |
07/21/20 | (67,895 | ) | |||||||||
KRW 6,677,976,000 | USD 5,756,876 | Bank of America, N.A. |
07/29/20 | (189,494 | ) | |||||||||
SGD 6,374,892 | USD 4,700,000 | Bank of America, N.A. |
07/30/20 | (125,299 | ) | |||||||||
CNY 19,250,000 | USD 2,750,000 | Bank of America, N.A. |
08/04/20 | (32,550 | ) | |||||||||
|
|
|||||||||||||
(774,274 | ) | |||||||||||||
|
|
|||||||||||||
Net Unrealized Depreciation |
|
($770,746 | ) | |||||||||||
|
|
OTC INTEREST RATE SWAPS*
Floating Rate |
Fixed Rate Received by Fund |
Counterparty |
Termination Date |
Notional Amount (000) |
Value |
Upfront (Received) |
Unrealized Appreciation |
|||||||||||||||||||||
Rate | Frequency | Rate | Frequency | |||||||||||||||||||||||||
3M MYR-KLIBOR, 2.280% |
Quarterly | 3.300% | Quarterly |
Bank of America, N.A. | 06/19/2024 | MYR 13,000 | $ | 143,964 | — | $ | 143,964 | |||||||||||||||||
6M THB-THBFIX, 0.526% |
Semi-annual | 1.610% | Semi-annual |
Bank of America, N.A. | 06/21/2024 | THB 281,000 | 324,763 | — | 324,763 | |||||||||||||||||||
6M THB-THBFIX, 0.914% |
Semi-annual | 1.265% | Semi-annual |
Bank of America, N.A. | 09/04/2024 | THB 210,000 | 160,092 | — | 160,092 | |||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total |
$ | 628,819 | — | $ | 628,819 | |||||||||||||||||||||||
|
|
* | Swaps are not centrally cleared. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 15 |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 0.90% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 0.90%. Pursuant to this agreement, any amount waived for prior fiscal years with respect to the Fund is not subject to recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | 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. |
4 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
16 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||
|
|
|
Average Annual Total Retuns
|
|
||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | Since Inception |
Inception Date |
|||||||||||||||||||
Investor Class (MCRDX) | 9.15% | -4.74% | -1.30% | 2.39% | 4.13% | 4/29/16 | ||||||||||||||||||
Institutional Class (MICPX) | 9.23% | -4.62% | -1.09% | 2.65% | 4.37% | 4/29/16 | ||||||||||||||||||
J.P. Morgan Asia Credit Index5 | 6.08% | 2.26% | 5.39% | 4.81% | 4.72% |
Performance 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.
INCOME DISTRIBUTION HISTORY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020
|
2019
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. |
Feb. | Mar. | Apr. | May | June | July | Aug. | Sept. | Oct. |
Nov. |
Dec. |
Total |
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investor (MCRDX) | n.a. | $ | 0.04 | $ | 0.03 | $ | 0.04 | $ | 0.04 | $ | 0.04 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | $ | 0.18 | $ | 0.10 | $ | 0.10 | $ | 0.13 | $ | 0.11 | $ | 0.44 | |||||||||||||||||||||||||||||||||||||||||||||||
Inst’l (MICPX) | n.a. | $ | 0.04 | $ | 0.03 | $ | 0.04 | $ | 0.04 | $ | 0.04 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | $ | 0.20 | $ | 0.10 | $ | 0.11 | $ | 0.14 | $ | 0.11 | $ | 0.46 |
Note: This table does not include capital gains distributions. Totals may differ by $0.02 due to rounding. For income distribution history, visit matthewsasia.com.
30-DAY YIELD:
Investor Class: 6.14% (6.14% excluding waivers) Institutional Class: 6.38% (6.33% excluding waivers)
The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ended 6/30/20, expressed as an annual percentage rate based on 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 equal the Fund’s actual income distribution rate.
Source: BNY Mellon Investment Servicing (US) Inc. |
YIELD TO WORST: 7.07%
Yield to worst is the lowest yield that can be received on a bond assuming that the issuer does not default. It is calculated by utilizing the worst case assumptions for a bond with respect to certain income-reducing factors, including prepayment, call or sinking fund provisions. It does not represent the yield that an investor should expect to receive. Past yields are no guarantee of future yields.
Source: FactSet Research Systems |
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions, or redemption of Fund shares. Values are in US$.
5 | It is not possible to invest directly in an index. Source: Index data from J.P. Morgan and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
TOP TEN HOLDINGS | ||||||||
Sector | Currency | % of Net Assets | ||||||
Network i2i, Ltd., 5.650%, 04/15/2068 | Communication Services | U.S. Dollar | 5.5% | |||||
Honghua Group, Ltd., 6.375%, 08/01/2022 | Energy | U.S. Dollar | 5.1% | |||||
PB International BV, 7.625%, 01/26/2022 | Consumer Discretionary | U.S. Dollar | 5.1% | |||||
Sino-Ocean Land Treasure III, Ltd., 4.900%, 03/21/2068 | Real Estate | U.S. Dollar | 5.1% | |||||
King Talent Management, Ltd., 5.600%, 06/04/2068 | Financials | U.S. Dollar | 5.0% | |||||
Indika Energy Capital III Pte, Ltd., 5.875%, 11/09/2024 | Energy | U.S. Dollar | 4.8% | |||||
Viet Nam Debt & Asset Trading Corp., 1.000%, 10/10/2025 | Financials | U.S. Dollar | 4.7% | |||||
Bosideng International Holdings, Ltd., Cnv., 1.000%, 12/17/2024 | Consumer Discretionary | U.S. Dollar | 4.5% | |||||
Franshion Brilliant, Ltd., 5.750%, 07/17/2067 | Real Estate | U.S. Dollar | 4.4% | |||||
Luye Pharma Group, Ltd., Cnv., 1.500%, 07/09/2024 | Health Care | U.S. Dollar | 4.2% | |||||
% OF ASSETS IN TOP TEN | 48.4% |
matthewsasia.com | 800.789.ASIA | 17 |
18 | MATTHEWS ASIA FUNDS |
Matthews Asia Credit Opportunities Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
NON-CONVERTIBLE CORPORATE BONDS: 77.8% |
matthewsasia.com | 800.789.ASIA | 19 |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
20 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
||||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MACSX) | 14.71% | -6.95% | -3.38% | 1.01% | 2.06% | 4.74% | 8.48% | 9/12/94 | ||||||||||||||||||||||||
Institutional Class (MICSX) | 14.82% | -6.83% | -3.17% | 1.16% | 2.22% | n.a. | 3.60% | 10/29/10 | ||||||||||||||||||||||||
MSCI AC Asia ex Japan Index3 | 16.79% | -4.65% | 1.97% | 3.80% | 4.70% | 6.21% | 4.40% | 4 |
Performance 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.
INCOME DISTRIBUTION HISTORY | ||||||||||||||||||||||||||||
2020
|
2019
|
|||||||||||||||||||||||||||
June | December | Total | June | December | Total | |||||||||||||||||||||||
Investor (MACSX) | $ | 0.11 | n.a. | $ | 0.11 | $ | 0.17 | $ | 0.18 | $ | 0.35 | |||||||||||||||||
Inst’l (MICSX) | $ | 0.12 | n.a. | $ | 0.12 | $ | 0.18 | $ | 0.19 | $ | 0.38 |
Note: This table does not include capital gains distributions. Totals may differ by $0.02 due to rounding. For income distribution history, visit matthewsasia.com.
30-DAY YIELD:
3.78% (Investor Class) 3.92% (Institutional Class)
The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ended 6/30/20, expressed as an annual percentage rate based on 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 equal the Fund’s actual income distribution rate.
Source: BNY Mellon Investment Servicing (US) Inc. |
DIVIDEND YIELD: 3.16%
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 12 months ended 6/30/20 divided by the current price of each equity as of 6/30/20. The annualized dividend yield for the Fund is for the equity-only portion of the portfolio. Please note that this is based on 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.
Source: FactSet Research Systems, Bloomberg, MICM |
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 8/31/94. |
TOP TEN HOLDINGS5 | ||||||||
Sector | Country | % of Net Assets | ||||||
Tencent Holdings, Ltd. | Communication Services | China/Hong Kong | 5.2% | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. | Information Technology | Taiwan | 4.9% | |||||
AIA Group, Ltd. | Financials | China/Hong Kong | 3.7% | |||||
Samsung Electronics Co., Ltd. | Information Technology | South Korea | 2.9% | |||||
Techtronic Industries Co., Ltd. | Industrials | China/Hong Kong | 2.1% | |||||
Macquarie Korea Infrastructure Fund | Financials | South Korea | 2.1% | |||||
LG Household & Health Care, Ltd., Pfd. | Consumer Staples | South Korea | 2.0% | |||||
Ascendas, REIT | Real Estate | Singapore | 1.9% | |||||
Advantech Co., Ltd. | Information Technology | Taiwan | 1.9% | |||||
NetEase, Inc. | Communication Services | China/Hong Kong | 1.8% | |||||
% OF ASSETS IN TOP TEN | 28.5% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
matthewsasia.com | 800.789.ASIA | 21 |
22 | MATTHEWS ASIA FUNDS |
Matthews Asian Growth and Income Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 86.0%
matthewsasia.com | 800.789.ASIA | 23 |
Matthews Asian Growth and Income Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
CONVERTIBLE CORPORATE BONDS: 8.2% | PREFERRED EQUITIES: 2.0% |
24 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed to waive a portion of its advisory fee and administrative and shareholder services fee if the Fund’s average daily net assets are over $3 billion, as follows: for every $2.5 billion average daily net assets of the Fund that are over $3 billion, the advisory fee rate and the administrative and shareholder services fee rate for the Fund with respect to such excess average daily net assets will be each reduced by 0.01%, in each case without reducing such fee rate below 0.00%. Any amount waived by Matthews pursuant to this agreement may not be recouped by Matthews. This agreement will remain in place until April 30, 2021 and may be terminated (i) at any time by the Board of Trustees upon 60 days’ prior written notice to Matthews; or (ii) by Matthews at the annual expiration date of the agreement upon 60 days’ prior written notice to the Trust, in each case without payment of any penalty. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 25 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MAPIX) | 20.37% | -2.62% | 2.31% | 2.26% | 4.09% | 6.95% | 7.98% | 10/31/06 | ||||||||||||||||||||||||
Institutional Class (MIPIX) | 20.40% | -2.57% | 2.48% | 2.39% | 4.21% | n.a. | 5.89% | 10/29/10 | ||||||||||||||||||||||||
MSCI AC Asia Pacific Index4 | 15.99% | -6.29% | 1.35% | 3.50% | 4.33% | 6.30% | 4.03% | 5 |
Performance 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.
INCOME DISTRIBUTION HISTORY | ||||||||||||||||||||||||||||||||||||||||||||
2020
|
2019
|
|||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||||||
Investor (MAPIX) | $ | 0.04 | $ | 0.12 | n.a. | n.a. | $ | 0.16 | $ | 0.03 | $ | 0.12 | $ | 0.11 | $ | 0.09 | $ | 0.36 | ||||||||||||||||||||||||||
Inst’l (MIPIX) | $ | 0.05 | $ | 0.12 | n.a. | n.a. | $ | 0.17 | $ | 0.04 | $ | 0.12 | $ | 0.12 | $ | 0.10 | $ | 0.37 |
Note: This table does not include capital gains distributions. Totals may differ by $0.02 due to rounding and a return of capital. For distribution history please visit matthewsasia.com.
30-DAY YIELD:
Investor Class: 1.18% (1.17% excluding waivers) Institutional Class: 1.27% (1.26% excluding waivers)
The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ended 6/30/20, expressed as an annual percentage rate based on 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 equal the Fund’s actual income distribution rate.
Source: BNY Mellon Investment Servicing (US) Inc. |
DIVIDEND YIELD: 2.35%
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 12 months ended 6/30/20 divided by the current price of each equity as of 6/30/20. The annualized dividend yield for the Fund is for the equity-only portion of the portfolio. Please note that this is based on 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.
Source: FactSet Research Systems, Bloomberg, MICM. |
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
5 | Calculated from 10/31/06. |
TOP TEN HOLDINGS6 | ||||||||
Sector | Country | % of Net Assets | ||||||
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% | |||||
% OF ASSETS IN TOP TEN | 33.8% |
6 | Holdings may combine more than one security from same issuer and related depositary receipts. |
26 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 27 |
Matthews Asia Dividend Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 95.1%
28 | MATTHEWS ASIA FUNDS |
Matthews Asia Dividend Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
matthewsasia.com | 800.789.ASIA | 29 |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
30 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Year | 5 Year | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MCDFX) | 19.18% | 4.02% | 3.56% | 8.18% | 6.94% | 9.99% | 9.76% | 11/30/09 | ||||||||||||||||||||||||
Institutional Class (MICDX) | 19.26% | 4.09% | 3.72% | 8.34% | 7.12% | n.a. | 8.85% | 10/29/10 | ||||||||||||||||||||||||
MSCI China Index3 | 15.37% | 3.58% | 13.28% | 8.73% | 5.49% | 6.60% | 5.66% | 4 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
INCOME DISTRIBUTION HISTORY | ||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||
June | December | Total | June | December | Total | |||||||||||||||||||||||
Investor (MCDFX) | $ | 0.36 | n.a. | $ | 0.36 | $ | 0.24 | $ | 0.02 | $ | 0.26 | |||||||||||||||||
Inst’l (MICDX) | $ | 0.38 | n.a. | $ | 0.38 | $ | 0.25 | $ | 0.03 | $ | 0.28 |
Note: This table does not include capital gains distributions. Totals may differ by $0.02 due to rounding. For income distribution history, visit matthewsasia.com.
30-DAY YIELD:
1.64% (Investor Class) 1.77% (Institutional Class)
The 30-Day Yield represents net investment income earned by the Fund over the 30-day period ended 6/30/20, expressed as an annual percentage rate based on 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 equal the Fund’s actual income distribution rate.
Source: BNY Mellon Investment Servicing (US) Inc. |
DIVIDEND YIELD: 3.23%
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 12 months ended 6/30/20 divided by the current price of each equity as of 6/30/20. The annualized dividend yield for the Fund is for the equity-only portion of the portfolio. Please note that this is based on 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.
Source: FactSet Research Systems, Bloomberg, MICM. |
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 11/30/09. |
TOP TEN HOLDINGS5 | ||||||||
Sector | % of Net Assets | |||||||
Tencent Holdings, Ltd. | Communication Services | 7.6% | ||||||
Livzon Pharmaceutical Group, Inc. | Health Care | 3.4% | ||||||
Hope Education Group Co., Ltd. | Consumer Discretionary | 3.0% | ||||||
China International Capital Corp., Ltd. | Financials | 3.0% | ||||||
Chengdu Hongqi Chain Co., Ltd. | Consumer Staples | 3.0% | ||||||
Shanghai Baosight Software Co., Ltd. | Information Technology | 3.0% | ||||||
KWG Group Holdings, Ltd. | Real Estate | 2.8% | ||||||
Gree Electric Appliances, Inc. of Zhuhai | Consumer Discretionary | 2.8% | ||||||
CITIC Telecom International Holdings, Ltd. | Communication Services | 2.8% | ||||||
WH Group, Ltd. | Consumer Staples | 2.8% | ||||||
% OF ASSETS IN TOP TEN | 34.2% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
matthewsasia.com | 800.789.ASIA | 31 |
32 | MATTHEWS ASIA FUNDS |
Matthews China Dividend Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 97.4%
matthewsasia.com | 800.789.ASIA | 33 |
Matthews China Dividend Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
COMMON EQUITIES (continued) |
34 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 1.20% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 35 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | Since Inception |
Inception Date |
|||||||||||||||||||
Investor Class (MAVRX) | 16.28% | -4.43% | -3.33% | 1.04% | 6.40% | 11/30/15 | ||||||||||||||||||
Institutional Class (MAVAX) | 16.28% | -4.28% | -3.21% | 1.25% | 6.65% | 11/30/15 | ||||||||||||||||||
MSCI AC Asia ex Japan Index4 | 16.79% | -4.65% | 1.97% | 3.90% | 8.48% |
Performance 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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
TOP TEN HOLDINGS5 | ||||||||||||
Sector | Country | % of Net Assets | ||||||||||
Bharti Infratel, Ltd. | Communication Services | India | 6.6% | |||||||||
Cie Financiere Richemont SA | Consumer Discretionary | Switzerland | 4.5% | |||||||||
CK Hutchison Holdings, Ltd. | Industrials | China/Hong Kong | 4.4% | |||||||||
China Isotope & Radiation Corp. | Health Care | China/Hong Kong | 3.9% | |||||||||
Straits Trading Co., Ltd. | Materials | Singapore | 3.9% | |||||||||
Prosus N.V. | Consumer Discretionary | China/Hong Kong | 3.8% | |||||||||
NAVER Corp. | Communication Services | South Korea | 3.8% | |||||||||
China Mobile, Ltd. | Communication Services | China/Hong Kong | 3.4% | |||||||||
Geumhwa PSC Co., Ltd. | Industrials | South Korea | 3.3% | |||||||||
Samsung Electronics Co., Ltd., Pfd. | Information Technology | South Korea | 3.2% | |||||||||
% OF ASSETS IN TOP TEN | 40.8% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
36 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 37 |
Matthews Asia Value Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 63.3% | PREFERRED EQUITIES: 8.0% |
38 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 39 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MPACX) | 30.94% | 8.43% | 18.17% | 10.30% | 9.04% | 9.53% | 9.49% | 10/31/03 | ||||||||||||||||||||||||
Institutional Class (MIAPX) | 30.96% | 8.50% | 18.29% | 10.48% | 9.23% | n.a. | 7.92% | 10/29/10 | ||||||||||||||||||||||||
MSCI AC Asia Pacific Index3 | 15.99% | -6.29% | 1.35% | 3.50% | 4.33% | 6.30% | 6.58% | 4 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 10/31/03. |
TOP TEN HOLDINGS5 | ||||||||||
Sector | Country | % of Net Assets | ||||||||
Wuxi Biologics Cayman, Inc. | Health Care | China/Hong Kong | 5.2% | |||||||
Bilibili, Inc. | Communication Services | China/Hong Kong | 5.1% | |||||||
Innovent Biologics, Inc. | Health Care | China/Hong Kong | 4.0% | |||||||
PT Bank Rakyat Indonesia Persero | Financials | Indonesia | 3.4% | |||||||
BeiGene, Ltd. | Health Care | China/Hong Kong | 3.2% | |||||||
HDFC Bank, Ltd. | Financials | India | 3.0% | |||||||
Sony Corp. | Consumer Discretionary | Japan | 2.9% | |||||||
Terumo Corp. | Health Care | Japan | 2.7% | |||||||
Nintendo Co., Ltd. | Communication Services | Japan | 2.6% | |||||||
Keyence Corp. | Information Technology | Japan | 2.4% | |||||||
% OF ASSETS IN TOP TEN | 34.5% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
40 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 41 |
Matthews Asia Growth Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 95.6%
42 | MATTHEWS ASIA FUNDS |
1 | Prospectus Expense Ratios. |
2 | Matthews has contractually agreed to waive a portion of its advisory fee and administrative and shareholder services fee if the Fund’s average daily net assets are over $3 billion, as follows: for every $2.5 billion average daily net assets of the Fund that are over $3 billion, the advisory fee rate and the administrative and shareholder services fee rate for the Fund with respect to such excess average daily net assets will be each reduced by 0.01%, in each case without reducing such fee rate below 0.00%. Any amount waived by Matthews pursuant to this agreement may not be recouped by Matthews. This agreement will remain in place until April 30, 2021 and may be terminated (i) at any time by the Board of Trustees upon 60 days’ prior written notice to Matthews; or (ii) by Matthews at the annual expiration date of the agreement upon 60 days’ prior written notice to the Trust, in each case without payment of any penalty. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 43 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MAPTX) | 20.35% | -4.73% | -2.00% | 2.97% | 3.64% | 7.01% | 8.11% | 9/12/94 | ||||||||||||||||||||||||
Institutional Class (MIPTX) | 20.37% | -4.70% | -1.88% | 3.12% | 3.82% | n.a. | 5.26% | 10/29/10 | ||||||||||||||||||||||||
MSCI AC Asia ex Japan Index4 | 16.79% | -4.65% | 1.97% | 3.80% | 4.70% | 6.21% | 4.40% | 5 |
Performance 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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
5 | Calculated from 8/31/94. |
TOP TEN HOLDINGS6 | ||||||||
Sector | Country | % of Net Assets | ||||||
Tencent Holdings, Ltd. | Communication Services | China/Hong Kong | 7.2% | |||||
Alibaba Group Holding, Ltd. | Consumer Discretionary | China/Hong Kong | 7.0% | |||||
Samsung Electronics Co., Ltd. | Information Technology | South Korea | 4.9% | |||||
NAVER Corp. | Communication Services | South Korea | 4.3% | |||||
Hong Kong Exchanges & Clearing, Ltd. | Financials | China/Hong Kong | 3.9% | |||||
AIA Group, Ltd. | Financials | China/Hong Kong | 3.4% | |||||
China Resources Land, Ltd. | Real Estate | China/Hong Kong | 3.1% | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. | Information Technology | Taiwan | 3.0% | |||||
China Resources Beer Holdings Co., Ltd. | Consumer Staples | China/Hong Kong | 2.9% | |||||
Kweichow Moutai Co., Ltd. | Consumer Staples | China/Hong Kong | 2.6% | |||||
% OF ASSETS IN TOP TEN | 42.3% |
6 | Holdings may combine more than one security from same issuer and related depositary receipts. |
44 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 45 |
Matthews Pacific Tiger Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 97.8%
46 | MATTHEWS ASIA FUNDS |
Matthews Pacific Tiger Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
matthewsasia.com | 800.789.ASIA | 47 |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 1.20% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
48 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 years | 5 years | Since Inception |
Inception Date |
||||||||||||||||||||||
Investor Class (MASGX) | 31.80% | 0.63% | 3.32% | 4.70% | 4.90% | 4.42% | 4/30/15 | |||||||||||||||||||||
Institutional Class (MISFX) | 31.83% | 0.72% | 3.48% | 4.93% | 5.15% | 4.65% | 4/30/15 | |||||||||||||||||||||
MSCI AC Asia ex Japan Index4 | 16.79% | -4.65% | 1.97% | 3.90% | 4.70% | 3.27% |
Performance 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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted Monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
TOP TEN HOLDINGS5 | ||||||||||||
Sector | Country | % of Net Assets | ||||||||||
Samsung SDI Co., Ltd., Pfd. | Information Technology | South Korea | 5.0% | |||||||||
Bandhan Bank, Ltd. | Financials | India | 5.0% | |||||||||
Hong Kong Exchanges & Clearing, Ltd. | Financials | China/Hong Kong | 4.7% | |||||||||
Unicharm Corp. | Consumer Staples | Japan | 4.1% | |||||||||
Meituan Dianping Class B | Consumer Discretionary | China/Hong Kong | 4.1% | |||||||||
Hangzhou Tigermed Consulting Co., Ltd. | Health Care | China/Hong Kong | 3.5% | |||||||||
Mahindra & Mahindra, Ltd. | Consumer Discretionary | India | 3.4% | |||||||||
China Conch Venture Holdings, Ltd. | Industrials | China/Hong Kong | 3.3% | |||||||||
CSPC Pharmaceutical Group, Ltd. | Health Care | China/Hong Kong | 3.2% | |||||||||
Yonghui Superstores Co., Ltd. | Consumer Staples | China/Hong Kong | 3.1% | |||||||||
% OF ASSETS IN TOP TEN | 39.4% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
matthewsasia.com | 800.789.ASIA | 49 |
50 | MATTHEWS ASIA FUNDS |
Matthews Asia ESG Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 90.3%
matthewsasia.com | 800.789.ASIA | 51 |
Matthews Asia ESG Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
PREFERRED EQUITIES: 7.8%
52 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 1.20% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 53 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | Since Inception |
Inception Date |
||||||||||||||||||||||
Investor Class (MEASX) | 19.55% | -25.02% | -24.51% | -13.32% | -3.34% | -0.25% | 4/30/13 | |||||||||||||||||||||
Institutional Class (MIASX) | 19.71% | -24.90% | -24.39% | -13.11% | -3.12% | -0.03% | 4/30/13 | |||||||||||||||||||||
MSCI Emerging Markets Asia Index4 | 17.91% | -3.39% | 5.21% | 4.45% | 5.19% | 5.39% |
Performance 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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
TOP TEN HOLDINGS5 | ||||||||||||
Sector | Country | % of Net Assets | ||||||||||
Vinh Hoan Corp. | Consumer Staples | Vietnam | 4.2% | |||||||||
British American Tobacco Bangladesh Co., Ltd. | Consumer Staples | Bangladesh | 3.9% | |||||||||
Square Pharmaceuticals, Ltd. | Health Care | Bangladesh | 3.6% | |||||||||
PT Kino Indonesia | Consumer Staples | Indonesia | 3.4% | |||||||||
Berger Paints Bangladesh, Ltd. | Materials | Bangladesh | 3.3% | |||||||||
John Keells Holdings PLC | Industrials | Sri Lanka | 3.1% | |||||||||
Sampath Bank PLC | Financials | Sri Lanka | 3.1% | |||||||||
Jollibee Foods Corp. | Consumer Discretionary | Philippines | 2.9% | |||||||||
Mobile World Investment Corp. | Consumer Discretionary | Vietnam | 2.9% | |||||||||
Cosco Capital, Inc. | Consumer Staples | Philippines | 2.7% | |||||||||
% OF ASSETS IN TOP TEN | 33.1% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
54 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 55 |
Matthews Emerging Asia Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 91.9%
56 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 57 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MATFX) | 38.74% | 27.01% | 38.22% | 16.33% | 12.33% | 13.19% | 5.24% | 12/27/99 | ||||||||||||||||||||||||
Institutional Class (MITEX) | 38.78% | 27.12% | 38.36% | 16.52% | 12.53% | n.a. | 14.80% | 4/30/13 | ||||||||||||||||||||||||
MSCI AC Asia ex Japan Index3 | 16.79% | -4.65% | 1.97% | 3.90% | 4.70% | 6.21% | 6.03% | 4 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 12/31/99. |
TOP TEN HOLDINGS5 | ||||||||
Sector | Country | % of Net Assets | ||||||
Tencent Holdings, Ltd. | Communication Services | China/Hong Kong | 6.0% | |||||
Alibaba Group Holding, Ltd. | Consumer Discretionary | China/Hong Kong | 5.9% | |||||
Bilibili, Inc. | Communication Services | China/Hong Kong | 5.3% | |||||
Sea, Ltd. | Communication Services | Singapore | 5.0% | |||||
Meituan Dianping Class B | Consumer Discretionary | China/Hong Kong | 4.8% | |||||
TAL Education Group | Consumer Discretionary | China/Hong Kong | 4.2% | |||||
Wuxi Biologics Cayman, Inc. | Health Care | China/Hong Kong | 4.2% | |||||
Samsung Electronics Co., Ltd. | Information Technology | South Korea | 3.7% | |||||
Wuliangye Yibin Co., Ltd. | Consumer Staples | China/Hong Kong | 3.4% | |||||
Kingdee International Software Group Co., Ltd. | Information Technology | China/Hong Kong | 3.1% | |||||
% OF ASSETS IN TOP TEN | 45.6% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
58 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 59 |
Matthews Asia Innovators Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 95.3%
60 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 61 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MCHFX) | 23.04% | 12.29% | 23.58% | 13.31% | 9.21% | 7.30% | 10.26% | 2/19/98 | ||||||||||||||||||||||||
Institutional Class (MICFX) | 23.13% | 12.42% | 23.83% | 13.54% | 9.40% | n.a. | 5.66% | 10/29/10 | ||||||||||||||||||||||||
MSCI China Index3 | 15.37% | 3.58% | 13.28% | 8.73% | 5.49% | 6.60% | 4.85% | 4 | ||||||||||||||||||||||||
MSCI China All Shares Index3 | 15.52% | 4.11% | 13.11% | 6.61% | 1.19% | n.a. | n.a. | 5 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 2/28/98. |
5 | Index performance data prior to 11/25/08 is not available. |
TOP TEN HOLDINGS5 | ||||||||
Sector | % of Net Assets | |||||||
Tencent Holdings, Ltd. | Communication Services | 12.9% | ||||||
Alibaba Group Holding, Ltd. | Consumer Discretionary | 11.9% | ||||||
JD.com, Inc. | Consumer Discretionary | 5.5% | ||||||
China Construction Bank Corp. | Financials | 4.3% | ||||||
China Merchants Bank Co., Ltd. | Financials | 4.3% | ||||||
AIA Group, Ltd. | Financials | 4.0% | ||||||
Hong Kong Exchanges & Clearing, Ltd. | Financials | 3.8% | ||||||
Ping An Insurance Group Co. of China, Ltd. | Financials | 3.0% | ||||||
CITIC Securities Co., Ltd. | Financials | 2.8% | ||||||
China International Capital Corp., Ltd. | Financials | 2.7% | ||||||
% OF ASSETS IN TOP TEN | 55.2% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
62 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 63 |
Matthews China Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 95.7%
64 | MATTHEWS ASIA FUNDS |
Matthews China Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
COMMON EQUITIES (continued)
matthewsasia.com | 800.789.ASIA | 65 |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
66 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MINDX) | 19.40% | -19.37% | -21.86% | -7.22% | -1.80% | 4.06% | 8.08% | 10/31/05 | ||||||||||||||||||||||||
Institutional Class (MIDNX) | 19.42% | -19.32% | -21.76% | -7.08% | -1.62% | n.a. | 2.31% | 10/29/10 | ||||||||||||||||||||||||
S&P Bombay Stock Exchange 100 Index3 | 19.99% | -19.29% | -19.28% | -2.11% | 2.03% | 3.00% | 8.11% | 4 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from S&P BSE 100 Index and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 10/31/05. |
TOP TEN HOLDINGS5 | ||||||||
Sector | % of Net Assets | |||||||
Reliance Industries, Ltd. | Energy | 9.1% | ||||||
HDFC Bank, Ltd. | Financials | 8.1% | ||||||
Infosys, Ltd. | Information Technology | 4.8% | ||||||
Housing Development Finance Corp., Ltd. | Financials | 4.1% | ||||||
ICICI Bank, Ltd. | Financials | 4.0% | ||||||
Kotak Mahindra Bank, Ltd. | Financials | 3.9% | ||||||
VST Industries, Ltd. | Consumer Staples | 3.7% | ||||||
Info Edge India, Ltd. | Communication Services | 3.5% | ||||||
Bharti Airtel, Ltd. | Communication Services | 3.3% | ||||||
Zydus Wellness, Ltd. | Consumer Staples | 3.0% | ||||||
% OF ASSETS IN TOP TEN | 47.5% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
matthewsasia.com | 800.789.ASIA | 67 |
68 | MATTHEWS ASIA FUNDS |
Matthews India Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 96.6%
matthewsasia.com | 800.789.ASIA | 69 |
Matthews India Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
COMMON EQUITIES (continued)
70 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 71 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
||||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MJFOX) | 18.18% | 0.05% | 10.88% | 5.36% | 5.86% | 10.27% | 6.07% | 12/31/98 | ||||||||||||||||||||||||
Institutional Class (MIJFX) | 18.14% | 0.05% | 10.92% | 5.42% | 5.94% | n.a. | 9.38% | 10/29/10 | ||||||||||||||||||||||||
MSCI Japan Index3 | 11.64% | -6.92% | 3.51% | 3.34% | 3.81% | 6.39% | 3.37% | 4 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definitions. |
4 | Calculated from 12/31/98. |
TOP TEN HOLDINGS5 | ||||||||
Sector | % of Net Assets | |||||||
Lasertec Corp. | Information Technology | 4.6% | ||||||
ITOCHU Techno-Solutions Corp. | Information Technology | 3.9% | ||||||
Daikin Industries, Ltd. | Industrials | 3.8% | ||||||
Sony Corp. | Consumer Discretionary | 3.8% | ||||||
Keyence Corp. | Information Technology | 3.8% | ||||||
Nintendo Co., Ltd. | Communication Services | 3.6% | ||||||
Shin-Etsu Chemical Co., Ltd. | Materials | 3.4% | ||||||
Nippon Telegraph & Telephone Corp. | Communication Services | 3.1% | ||||||
Nihon M&A Center, Inc. | Industrials | 3.0% | ||||||
Nitori Holdings Co., Ltd. | Consumer Discretionary | 2.9% | ||||||
% OF ASSETS IN TOP TEN | 35.9% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
72 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 73 |
Matthews Japan Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 94.8%
74 | MATTHEWS ASIA FUNDS |
Matthews Japan Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
COMMON EQUITIES (continued)
matthewsasia.com | 800.789.ASIA | 75 |
1 | Prospectus expense ratios. |
2 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
76 | MATTHEWS ASIA FUNDS |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
|
Average Annual Total Returns |
|
|||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MAKOX) | 23.53% | -4.11% | 0.41% | -4.28% | 0.73% | 6.83% | 5.33% | 01/03/95 | ||||||||||||||||||||||||
Institutional Class (MIKOX) | 23.32% | -4.30% | 0.19% | -4.23% | 0.81% | n.a. | 5.45% | 10/29/10 | ||||||||||||||||||||||||
Korea Composite Stock Price Index3 | 21.95% | -7.33% | -2.69% | -3.72% | 0.84% | 4.03% | 2.78% | 4 |
Performance 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. For the Fund’s most recent month-end performance, visit matthewsasia.com.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
3 | Korea Composite Stock Price Index performance data may be readjusted periodically by the Korea Exchange due to certain factors, including the declaration of dividends. It is not possible to invest directly in an index. Source: Index data from Korea Composite Stock Price Index and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
4 | Calculated from 1/3/95. |
TOP TEN HOLDINGS5 | ||||||||
Sector | % of Net Assets | |||||||
Samsung Electronics Co., Ltd., Pfd. | Information Technology | 15.6% | ||||||
Samsung Electronics Co., Ltd. | Information Technology | 6.5% | ||||||
Orion Corp. | Consumer Staples | 5.9% | ||||||
NAVER Corp. | Communication Services | 5.3% | ||||||
Kakao Corp. | Communication Services | 5.0% | ||||||
SK Hynix, Inc. | Information Technology | 4.8% | ||||||
LG Household & Health Care, Ltd., Pfd. | Consumer Staples | 4.7% | ||||||
Hyundai Mobis Co., Ltd. | Consumer Discretionary | 4.5% | ||||||
Shinhan Financial Group Co., Ltd. | Financials | 3.8% | ||||||
LG Chem, Ltd., Pfd. | Materials | 3.6% | ||||||
% OF ASSETS IN TOP TEN | 59.7% |
5 | Holdings may combine more than one security from same issuer and related depositary receipts. |
matthewsasia.com | 800.789.ASIA | 77 |
78 | MATTHEWS ASIA FUNDS |
Matthews Korea Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 68.9%
matthewsasia.com | 800.789.ASIA | 79 |
Matthews Korea Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
PREFERRED EQUITIES (continued)
80 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 1.20% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 81 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
||||||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception |
Inception Date |
|||||||||||||||||||||||||
Investor Class (MSMLX) | 37.26% | 10.11% | 14.74% | 6.51% | 3.10% | 6.72% | 10.29% | 09/15/08 | ||||||||||||||||||||||||
Institutional Class (MISMX) | 37.34% | 10.19% | 14.99% | 6.71% | 3.33% | n.a. | 4.77% | 04/30/13 | ||||||||||||||||||||||||
MSCI AC Asia ex Japan Small Cap Index4 | 26.28% | -6.45% | -4.46% | -1.94% | -1.39% | 2.70% | 5.48% | 5 |
Performance 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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
5 | Calculated from 9/15/08. |
TOP TEN HOLDINGS6 | ||||||||
Sector | Country | % of Net Assets | ||||||
Silergy Corp. | Information Technology | China/Hong Kong | 6.5% | |||||
Kingdee International Software Group Co., Ltd. | Information Technology | China/Hong Kong | 3.5% | |||||
Innovent Biologics, Inc. | Health Care | China/Hong Kong | 2.7% | |||||
Joyoung Co., Ltd. | Consumer Discretionary | China/Hong Kong | 2.6% | |||||
Peijia Medical, Ltd. | Health Care | China/Hong Kong | 2.6% | |||||
Jiajiayue Group Co., Ltd. | Consumer Staples | China/Hong Kong | 2.5% | |||||
Alphamab Oncology | Health Care | China/Hong Kong | 2.4% | |||||
Venus MedTech Hangzhou, Inc. | Health Care | China/Hong Kong | 2.4% | |||||
Hua Hong Semiconductor, Ltd. | Information Technology | China/Hong Kong | 2.2% | |||||
Sichuan Teway Food Group Co., Ltd. | Consumer Staples | China/Hong Kong | 2.1% | |||||
% OF ASSETS IN TOP TEN | 29.5% |
6 | Holdings may combine more than one security from same issuer and related depositary receipts. |
82 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 83 |
Matthews Asia Small Companies Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 94.4%
84 | MATTHEWS ASIA FUNDS |
1 | Prospectus expense ratios. |
2 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 1.20% first by waiving class specific expenses (i.e., shareholder service fees specific to a particular class) of the Institutional Class and then, to the extent necessary, by waiving non-class specific expenses (e.g., custody fees) of the Institutional Class, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 1.20% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 1.20%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. This agreement will remain in place until April 30, 2021 and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
3 | The lesser of fiscal year 2019 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
matthewsasia.com | 800.789.ASIA | 85 |
PERFORMANCE AS OF JUNE 30, 2020 | ||||||||||||||||||||||||||||
|
|
|
Average Annual Total Returns |
|
||||||||||||||||||||||||
3 Months | YTD | 1 Year | 3 Years | 5 Years | Since Inception |
Inception date |
||||||||||||||||||||||
Investor Class (MCSMX) | 42.64% | 57.63% | 79.85% | 29.98% | 18.72% | 11.40% | 05/31/11 | |||||||||||||||||||||
Institutional Class (MICHX) | 42.62% | 57.70% | 79.99% | n.a. | n.a. | 27.58% | 11/30/17 | |||||||||||||||||||||
MSCI China Small Cap Index4 | 13.18% | -1.75% | -2.99% | -1.15% | -4.44% | -0.37% | 5 |
Performance 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.
GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS
Plotted monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gains distributions or redemption of Fund shares. Values are in US$.
4 | It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 90 for index definition. |
5 | Calculated from 5/31/11 |
TOP TEN HOLDINGS6 | ||||||||
Sector | % of Net Assets | |||||||
Kingdee International Software Group Co., Ltd. |
Information Technology | 7.5% | ||||||
Silergy Corp. |
Information Technology | 7.4% | ||||||
China Youzan, Ltd. |
Information Technology | 3.1% | ||||||
Jiajiayue Group Co., Ltd. |
Consumer Staples | 3.1% | ||||||
Zai Lab, Ltd. |
Health Care | 3.0% | ||||||
KWG Group Holdings, Ltd. |
Real Estate | 2.9% | ||||||
Sichuan Teway Food Group Co., Ltd. |
Consumer Staples | 2.8% | ||||||
Times China Holdings, Ltd. |
Real Estate | 2.8% | ||||||
Peijia Medical, Ltd. |
Health Care | 2.4% | ||||||
China Meidong Auto Holdings, Ltd. |
Consumer Discretionary | 2.3% | ||||||
% OF ASSETS IN TOP TEN |
37.3% |
6 | Holdings may combine more than one security from same issuer and related depositary receipts. |
86 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 87 |
Matthews China Small Companies Fund
June 30, 2020
Schedule of Investmentsa (unaudited)
COMMON EQUITIES: 95.4%
88 | MATTHEWS ASIA FUNDS |
Matthews China Small Companies Fund
June 30, 2020
Schedule of Investmentsa (unaudited) (continued)
COMMON EQUITIES (continued)
matthewsasia.com | 800.789.ASIA | 89 |
90 | MATTHEWS ASIA FUNDS |
matthewsasia.com | 800.789.ASIA | 91 |
Disclosure of Fund Expenses (unaudited)
92 | MATTHEWS ASIA FUNDS |
June 30, 2020
Disclosure of Fund Expenses (unaudited) (continued)
Investor | Institutional | |||||||||||||||||||||||||||||||||||
Beginning Account Value 1/1/20 |
Ending Account Value 6/30/20 |
Expense Ratio1 |
Operating Expenses Paid During Period 1/1/20– 6/30/202 |
Beginning Account Value 1/1/20 |
Ending Account Value 6/30/20 |
Expense Ratio1 |
Operating Expenses Paid During Period 1/1/20– 6/30/202 |
|||||||||||||||||||||||||||||
GLOBAL EMERGING MARKETS STRATEGY | ||||||||||||||||||||||||||||||||||||
Matthews Emerging Markets Equity Fund3 |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,167.00 | 1.15% | $2.08 | $1,000.00 | $1,167.00 | 0.90% | $1.63 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,006.42 | 1.15% | $1.92 | $1,000.00 | $1,006.83 | 0.90% | $1.51 | ||||||||||||||||||||||||||||
ASIA FIXED INCOME STRATEGIES | ||||||||||||||||||||||||||||||||||||
Matthews Asia Total Return Bond Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $963.50 | 1.13% | $5.52 | $1,000.00 | $964.50 | 0.90% | $4.40 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.24 | 1.13% | $5.67 | $1,000.00 | $1,020.39 | 0.90% | $4.52 | ||||||||||||||||||||||||||||
Matthews Asia Credit Opportunities Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $952.60 | 1.15% | $5.58 | $1,000.00 | $953.80 | 0.90% | $4.37 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.14 | 1.15% | $5.77 | $1,000.00 | $1,020.39 | 0.90% | $4.52 | ||||||||||||||||||||||||||||
ASIA GROWTH AND INCOME STRATEGIES | ||||||||||||||||||||||||||||||||||||
Matthews Asian Growth and Income Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $930.50 | 1.13% | $5.42 | $1,000.00 | $931.70 | 0.97% | $4.66 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.24 | 1.13% | $5.67 | $1,000.00 | $1,020.04 | 0.97% | $4.87 | ||||||||||||||||||||||||||||
Matthews Asia Dividend Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $973.80 | 1.07% | $5.25 | $1,000.00 | $974.30 | 0.97% | $4.76 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.54 | 1.07% | $5.37 | $1,000.00 | $1,020.04 | 0.97% | $4.87 | ||||||||||||||||||||||||||||
Matthews China Dividend Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,040.20 | 1.17% | $5.93 | $1,000.00 | $1,040.90 | 1.04% | $5.28 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.05 | 1.17% | $5.87 | $1,000.00 | $1,019.69 | 1.04% | $5.22 | ||||||||||||||||||||||||||||
ASIA VALUE STRATEGY | ||||||||||||||||||||||||||||||||||||
Matthews Asia Value Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $955.70 | 1.45% | $7.05 | $1,000.00 | $957.20 | 1.20% | $5.84 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,017.65 | 1.45% | $7.27 | $1,000.00 | $1,018.90 | 1.20% | $6.02 | ||||||||||||||||||||||||||||
ASIA GROWTH STRATEGIES | ||||||||||||||||||||||||||||||||||||
Matthews Asia Growth Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,084.30 | 1.11% | $5.75 | $1,000.00 | $1,085.00 | 0.97% | $5.03 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.34 | 1.11% | $5.57 | $1,000.00 | $1,020.04 | 0.97% | $4.87 | ||||||||||||||||||||||||||||
Matthews Pacific Tiger Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $952.70 | 1.11% | $5.39 | $1,000.00 | $953.00 | 0.96% | $4.66 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.34 | 1.11% | $5.57 | $1,000.00 | $1,020.09 | 0.96% | $4.82 | ||||||||||||||||||||||||||||
Matthews Asia ESG Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,006.30 | 1.39% | $6.93 | $1,000.00 | $1,007.20 | 1.20% | $5.99 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,017.95 | 1.39% | $6.97 | $1,000.00 | $1,018.90 | 1.20% | $6.02 | ||||||||||||||||||||||||||||
Matthews Emerging Asia Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $749.80 | 1.45% | $6.31 | $1,000.00 | $751.00 | 1.20% | $5.22 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,017.65 | 1.45% | $7.27 | $1,000.00 | $1,018.90 | 1.20% | $6.02 | ||||||||||||||||||||||||||||
Matthews Asia Innovators Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,270.10 | 1.11% | $6.27 | $1,000.00 | $1,271.20 | 0.96% | $5.42 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.34 | 1.11% | $5.57 | $1,000.00 | $1,020.09 | 0.96% | $4.82 | ||||||||||||||||||||||||||||
Matthews China Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,122.90 | 1.11% | $5.86 | $1,000.00 | $1,124.20 | 0.93% | $4.91 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.34 | 1.11% | $5.57 | $1,000.00 | $1,020.24 | 0.93% | $4.67 | ||||||||||||||||||||||||||||
Matthews India Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $806.30 | 1.25% | $5.61 | $1,000.00 | $806.80 | 1.10% | $4.94 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,018.65 | 1.25% | $6.27 | $1,000.00 | $1,019.39 | 1.10% | $5.52 |
1 | Annualized, based on the Fund’s most recent fiscal half-year expenses. |
2 | Operating expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182 days, then divided by 366. |
3 | The Fund commenced operations on April 30, 2020. Operating expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 61 days, then divided by 366. |
matthewsasia.com | 800.789.ASIA | 93 |
June 30, 2020
Disclosure of Fund Expenses (unaudited) (continued)
Investor | Institutional | |||||||||||||||||||||||||||||||||||
Beginning Account Value 1/1/20 |
Ending Account Value 6/30/20 |
Expense Ratio1 |
Operating Expenses Paid During Period 1/1/20– 6/30/202 |
Beginning Account Value 1/1/20 |
Ending Account Value 6/30/20 |
Expense Ratio1 |
Operating Expenses Paid During Period 1/1/20– 6/30/202 |
|||||||||||||||||||||||||||||
ASIA GROWTH STRATEGIES (continued) |
| |||||||||||||||||||||||||||||||||||
Matthews Japan Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,000.50 | 0.98% | $4.87 | $1,000.00 | $1,000.50 | 0.93% | $4.63 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,019.99 | 0.98% | $4.92 | $1,000.00 | $1,020.24 | 0.93% | $4.67 | ||||||||||||||||||||||||||||
Matthews Korea Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $958.90 | 1.25% | $6.09 | $1,000.00 | $957.00 | 1.18% | $5.74 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,018.65 | 1.25% | $6.27 | $1,000.00 | $1,019.00 | 1.18% | $5.92 | ||||||||||||||||||||||||||||
ASIA SMALL COMPANY STRATEGIES | ||||||||||||||||||||||||||||||||||||
Matthews Asia Small Companies Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,101.10 | 1.42% | $7.42 | $1,000.00 | $1,101.90 | 1.20% | $6.27 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,017.80 | 1.42% | $7.12 | $1,000.00 | $1,018.90 | 1.20% | $6.02 | ||||||||||||||||||||||||||||
Matthews China Small Companies Fund |
||||||||||||||||||||||||||||||||||||
Actual Fund Return |
$1,000.00 | $1,576.30 | 1.33% | $8.52 | $1,000.00 | $1,577.00 | 1.20% | $7.69 | ||||||||||||||||||||||||||||
Hypothetical 5% Returns |
$1,000.00 | $1,018.25 | 1.33% | $6.67 | $1,000.00 | $1,018.90 | 1.20% | $6.02 |
1 | Annualized, based on the Fund’s most recent fiscal half-year expenses. |
2 | Operating expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182 days, then divided by 366. |
94 | MATTHEWS ASIA FUNDS |
Statements of Assets and Liabilities (unaudited) | June 30, 2020 |
Matthews Emerging Markets Equity Fund1 |
Matthews Asia Total Return Bond Fund |
Matthews Asia Credit Opportunities Fund |
||||||||||
ASSETS: |
||||||||||||
Investments at value (A) (Note 2-A and 7): |
||||||||||||
Unaffiliated issuers |
$8,627,992 | $98,058,134 | $88,004,592 | |||||||||
Cash |
591,123 | 2,212,568 | 3,246,027 | |||||||||
Cash pledged collateral for OTC derivatives |
— | 520,000 | — | |||||||||
Segregated foreign currency at value |
195 | 19,930 | 6,733 | |||||||||
Foreign currency at value (B) |
8,923 | 576 | 208 | |||||||||
Dividends, interest and other receivable |
11,585 | 1,763,666 | 1,734,949 | |||||||||
Receivable for securities sold |
27,475 | — | — | |||||||||
Receivable for capital shares sold |
17,450 | 26,203 | 29,080 | |||||||||
Due from Advisor (Note 5) |
13,230 | — | — | |||||||||
Unrealized appreciation on forward foreign currency exchange contracts |
— | 3,528 | — | |||||||||
Unrealized appreciation on interest rate swaps |
— | 628,819 | — | |||||||||
Prepaid expenses |
39,514 | 15,178 | 29,881 | |||||||||
TOTAL ASSETS |
9,337,487 | 103,248,602 | 93,051,470 | |||||||||
LIABILITIES: |
||||||||||||
Payable for securities purchased |
142,981 | — | — | |||||||||
Payable for capital shares redeemed |
— | 233,869 | 948,595 | |||||||||
Unrealized depreciation on forward foreign currency exchange contracts |
— | 774,274 | — | |||||||||
Deferred foreign capital gains tax liability (Note 2-F) |
776 | 23,175 | — | |||||||||
Due to Advisor (Note 5) |
— | 40,902 | 39,593 | |||||||||
Administration and accounting fees payable (Note 5) |
101 | 1,353 | 1,251 | |||||||||
Administration and shareholder servicing fees payable (Note 5) |
1,040 | 12,715 | 11,665 | |||||||||
Custodian fees payable |
— | 5,648 | 137 | |||||||||
Intermediary service fees payable (Note 5) |
776 | 18,419 | 4,329 | |||||||||
Professional fees payable |
— | 23,907 | 45,168 | |||||||||
Transfer agent fees payable |
290 | 975 | 269 | |||||||||
Accrued other expenses payable |
7,141 | 8,125 | 1,363 | |||||||||
TOTAL LIABILITIES |
153,105 | 1,143,362 | 1,052,370 | |||||||||
NET ASSETS |
$9,184,382 | $102,105,240 | $91,999,100 | |||||||||
NET ASSETS: |
||||||||||||
Investor Class |
$1,683,257 | $36,245,173 | $10,382,063 | |||||||||
Institutional Class |
7,501,125 | 65,860,067 | 81,617,037 | |||||||||
TOTAL |
$9,184,382 | $102,105,240 | $91,999,100 |
1 | The Fund commenced operations on April 30, 2020. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 95 |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Emerging Markets Equity Fund1 |
Matthews Asia Total Return Bond Fund |
Matthews Asia Credit Opportunities Fund |
||||||||||
SHARES OUTSTANDING: |
||||||||||||
(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value) |
||||||||||||
Investor Class |
144,223 | 3,438,820 | 1,050,566 | |||||||||
Institutional Class |
642,510 | 6,247,235 | 8,259,186 | |||||||||
TOTAL |
786,733 | 9,686,055 | 9,309,752 | |||||||||
NET ASSET VALUE: |
||||||||||||
Investor Class, offering price and redemption price |
$11.67 | $10.54 | $9.88 | |||||||||
Institutional Class, offering price and redemption price |
$11.67 | $10.54 | $9.88 | |||||||||
NET ASSETS CONSISTS OF: |
||||||||||||
Capital paid-in |
$7,995,540 | $106,414,240 | $97,084,674 | |||||||||
Total distributable earnings/(accumulated loss) |
1,188,842 | (4,309,000 | ) | (5,085,574 | ) | |||||||
NET ASSETS |
$9,184,382 | $102,105,240 | $91,999,100 | |||||||||
(A) Investments at cost: |
||||||||||||
Unaffiliated Issuers |
$7,633,781 | $98,733,723 | $90,534,789 | |||||||||
(B) Foreign Currency at Cost |
$8,919 | $576 | $211 |
1 | The Fund commenced operations on April 30, 2020. |
See accompanying notes to financial statements.
96 | MATTHEWS ASIA FUNDS |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Asian Growth and Income Fund |
Matthews Asia Dividend Fund |
Matthews China Dividend Fund |
||||||||||
ASSETS: |
||||||||||||
Investments at value (A) (Note 2-A and 7): |
||||||||||||
Unaffiliated issuers |
$1,204,895,340 | $3,235,153,183 | $313,231,225 | |||||||||
Affiliated issuers |
— | 585,082,499 | — | |||||||||
Cash |
41,903,058 | — | 4,727,753 | |||||||||
Segregated foreign currency at value |
— | 155,696 | 19,496 | |||||||||
Foreign currency at value (B) |
641,564 | 10,948,995 | 1,282,631 | |||||||||
Dividends, interest and other receivable |
4,812,616 | 9,514,560 | 1,501,878 | |||||||||
Receivable for securities sold |
2,267,086 | 25,079,035 | 746,334 | |||||||||
Receivable for capital shares sold |
1,576,385 | 2,629,185 | 1,274,034 | |||||||||
Prepaid expenses |
71,067 | — | 44,241 | |||||||||
TOTAL ASSETS |
1,256,167,116 | 3,868,563,153 | 322,827,592 | |||||||||
LIABILITIES: |
||||||||||||
Cash overdraft |
— | 5,443,467 | — | |||||||||
Payable for securities purchased |
800 | 5,472,257 | 199,110 | |||||||||
Payable for capital shares redeemed |
1,552,299 | 29,046,330 | 490,037 | |||||||||
Deferred foreign capital gains tax liability (Note 2-F) |
1,063,827 | — | — | |||||||||
Due to Advisor (Note 5) |
682,680 | 2,095,498 | 170,360 | |||||||||
Administration and accounting fees payable (Note 5) |
16,463 | 50,317 | 4,096 | |||||||||
Administration and shareholder servicing fees payable (Note 5) |
152,893 | 463,237 | 38,174 | |||||||||
Custodian fees payable |
61,722 | 349,323 | 20,161 | |||||||||
Intermediary service fees payable (Note 5) |
261,687 | 993,482 | 81,768 | |||||||||
Professional fees payable |
45,918 | 87,012 | 32,901 | |||||||||
Transfer agent fees payable |
11,307 | 21,627 | 2,969 | |||||||||
Accrued other expenses payable |
83,840 | 324,547 | 32,864 | |||||||||
TOTAL LIABILITIES |
3,933,436 | 44,347,097 | 1,072,440 | |||||||||
NET ASSETS |
$1,252,233,680 | $3,824,216,056 | $321,755,152 | |||||||||
NET ASSETS: |
||||||||||||
Investor Class |
$581,679,400 | $1,748,123,813 | $227,148,086 | |||||||||
Institutional Class |
670,554,280 | 2,076,092,243 | 94,607,066 | |||||||||
TOTAL |
$1,252,233,680 | $3,824,216,056 | $321,755,152 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 97 |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Asian Growth and Income Fund |
Matthews Asia Dividend Fund |
Matthews China Dividend Fund |
||||||||||
SHARES OUTSTANDING: |
||||||||||||
(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value) |
||||||||||||
Investor Class |
40,025,743 | 103,781,893 | 13,779,169 | |||||||||
Institutional Class |
46,226,408 | 123,295,511 | 5,739,182 | |||||||||
TOTAL |
86,252,151 | 227,077,404 | 19,518,351 | |||||||||
NET ASSET VALUE: |
||||||||||||
Investor Class, offering price and redemption price |
$14.53 | $16.84 | $16.48 | |||||||||
Institutional Class, offering price and redemption price |
$14.51 | $16.84 | $16.48 | |||||||||
NET ASSETS CONSISTS OF: |
||||||||||||
Capital paid-in |
$1,194,161,017 | $3,233,799,759 | $302,997,215 | |||||||||
Total distributable earnings/(accumulated loss) |
58,072,663 | 590,416,297 | 18,757,937 | |||||||||
NET ASSETS |
$1,252,233,680 | $3,824,216,056 | $321,755,152 | |||||||||
(A) Investments at cost: |
||||||||||||
Unaffiliated Issuers |
$1,089,827,510 | $2,547,095,933 | $271,310,193 | |||||||||
Affiliated Issuers |
— | 434,167,009 | — | |||||||||
(B) Foreign Currency at Cost |
$641,264 | $10,934,432 | $1,284,824 |
See accompanying notes to financial statements.
98 | MATTHEWS ASIA FUNDS |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Asia Value Fund |
Matthews Asia Growth Fund |
Matthews Pacific Tiger Fund |
||||||||||
ASSETS: |
||||||||||||
Investments at value (A) (Note 2-A and 7): |
||||||||||||
Unaffiliated issuers |
$9,585,701 | $1,253,970,323 | $6,323,562,963 | |||||||||
Affiliated issuers |
— | — | 223,616,890 | |||||||||
Cash |
3,790,070 | 59,981,556 | 113,579,025 | |||||||||
Segregated foreign currency at value |
— | — | 206,222 | |||||||||
Foreign currency at value (B) |
3,510 | 687,193 | 858,442 | |||||||||
Dividends, interest and other receivable |
40,291 | 1,032,799 | 28,124,979 | |||||||||
Receivable for securities sold |
88,665 | 5,100,521 | 24,072,282 | |||||||||
Receivable for capital shares sold |
29,006 | 7,990,787 | 7,904,019 | |||||||||
Due from Advisor (Note 5) |
3,039 | — | — | |||||||||
Prepaid expenses |
11,432 | 21,127 | — | |||||||||
TOTAL ASSETS |
13,551,714 | 1,328,784,306 | 6,721,924,822 | |||||||||
LIABILITIES: |
||||||||||||
Payable for securities purchased |
— | 13,615,056 | 1,243,523 | |||||||||
Payable for capital shares redeemed |
— | 1,777,373 | 19,207,210 | |||||||||
Deferred foreign capital gains tax liability (Note 2-F) |
27,125 | — | 1,093,060 | |||||||||
Due to Advisor (Note 5) |
— | 688,243 | 3,554,174 | |||||||||
Administration and accounting fees payable (Note 5) |
169 | 15,965 | 85,120 | |||||||||
Administration and shareholder servicing fees payable (Note 5) |
1,608 | 154,110 | 766,076 | |||||||||
Custodian fees payable |
2,977 | 81,683 | 615,304 | |||||||||
Intermediary service fees payable (Note 5) |
3,154 | 167,703 | 1,332,438 | |||||||||
Professional fees payable |
45,954 | 41,853 | 115,566 | |||||||||
Transfer agent fees payable |
550 | 6,407 | 23,142 | |||||||||
Accrued other expenses payable |
21,053 | 27,314 | 243,607 | |||||||||
TOTAL LIABILITIES |
102,590 | 16,575,707 | 28,279,220 | |||||||||
NET ASSETS |
$13,449,124 | $1,312,208,599 | $6,693,645,602 | |||||||||
NET ASSETS: |
||||||||||||
Investor Class |
$8,104,886 | $524,586,664 | $2,029,934,322 | |||||||||
Institutional Class |
5,344,238 | 787,621,935 | 4,663,711,280 | |||||||||
TOTAL |
$13,449,124 | $1,312,208,599 | $6,693,645,602 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 99 |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Asia Value Fund |
Matthews Asia Growth Fund |
Matthews Pacific Tiger Fund |
||||||||||
SHARES OUTSTANDING: |
||||||||||||
(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value) |
||||||||||||
Investor Class |
766,815 | 17,218,916 | 74,152,356 | |||||||||
Institutional Class |
508,908 | 25,611,550 | 170,447,771 | |||||||||
TOTAL |
1,275,723 | 42,830,466 | 244,600,127 | |||||||||
NET ASSET VALUE: |
||||||||||||
Investor Class, offering price and redemption price |
$10.57 | $30.47 | $27.38 | |||||||||
Institutional Class, offering price and redemption price |
$10.50 | $30.75 | $27.36 | |||||||||
NET ASSETS CONSISTS OF: |
||||||||||||
Capital paid-in |
$17,779,306 | $900,602,896 | $4,418,030,806 | |||||||||
Total distributable earnings/(accumulated loss) |
(4,330,182 | ) | 411,605,703 | 2,275,614,796 | ||||||||
NET ASSETS |
$13,449,124 | $1,312,208,599 | $6,693,645,602 | |||||||||
(A) Investments at cost: |
||||||||||||
Unaffiliated Issuers |
$9,917,973 | $897,299,213 | $4,050,817,956 | |||||||||
Affiliated Issuers |
— | — | 421,960,816 | |||||||||
(B) Foreign Currency at Cost |
$3,531 | $688,851 | $858,403 |
See accompanying notes to financial statements.
100 | MATTHEWS ASIA FUNDS |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Asia ESG Fund |
Matthews Emerging Asia Fund |
Matthews Asia Innovators Fund |
||||||||||
ASSETS: |
||||||||||||
Investments at value (A) (Note 2-A and 7): |
||||||||||||
Unaffiliated issuers |
$54,417,050 | $149,061,578 | $796,013,800 | |||||||||
Affiliated issuers |
— | 2,704,558 | — | |||||||||
Cash |
983,693 | 10,666,954 | 28,177,653 | |||||||||
Segregated foreign currency at value |
717 | — | 7,861 | |||||||||
Foreign currency at value (B) |
9,615 | 1,260,321 | 4,689,306 | |||||||||
Dividends, interest and other receivable |
146,695 | 966,298 | 197,067 | |||||||||
Receivable for securities sold |
— | 1,899,012 | 978,833 | |||||||||
Receivable for capital shares sold |
73,994 | 85,802 | 17,385,599 | |||||||||
Prepaid expenses |
19,608 | 22,725 | 22,779 | |||||||||
TOTAL ASSETS |
55,651,372 | 166,667,248 | 847,472,898 | |||||||||
LIABILITIES: |
||||||||||||
Payable for securities purchased |
— | — | 10,124,771 | |||||||||
Payable for capital shares redeemed |
42,223 | 833,732 | 249,600 | |||||||||
Deferred foreign capital gains tax liability (Note 2-F) |
2,008 | 292,743 | 793,625 | |||||||||
Due to Advisor (Note 5) |
27,696 | 42,274 | 402,804 | |||||||||
Administration and accounting fees payable (Note 5) |
668 | 2,161 | 8,807 | |||||||||
Administration and shareholder servicing fees payable (Note 5) |
6,469 | 20,221 | 90,184 | |||||||||
Custodian fees payable |
23,803 | 223,393 | 28,826 | |||||||||
Foreign capital gains tax payable (Note 2-F) |
— | 2,553 | — | |||||||||
Intermediary service fees payable (Note 5) |
6,387 | 77,412 | 16,094 | |||||||||
Professional fees payable |
30,994 | 28,780 | 34,742 | |||||||||
Transfer agent fees payable |
280 | 2,569 | 4,066 | |||||||||
Accrued other expenses payable |
16,984 | 33,351 | 12,433 | |||||||||
TOTAL LIABILITIES |
157,512 | 1,559,189 | 11,765,952 | |||||||||
NET ASSETS |
$55,493,860 | $165,108,059 | $835,706,946 | |||||||||
NET ASSETS: |
||||||||||||
Investor Class |
$21,699,566 | $49,595,798 | $286,839,165 | |||||||||
Institutional Class |
33,794,294 | 115,512,261 | 548,867,781 | |||||||||
TOTAL |
$55,493,860 | $165,108,059 | $835,706,946 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 101 |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Asia ESG Fund |
Matthews Emerging Asia Fund |
Matthews Asia Innovators Fund |
||||||||||
SHARES OUTSTANDING: |
||||||||||||
(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value) |
||||||||||||
Investor Class |
1,946,097 | 5,478,189 | 15,522,569 | |||||||||
Institutional Class |
3,033,248 | 12,676,753 | 29,495,736 | |||||||||
TOTAL |
4,979,345 | 18,154,942 | 45,018,305 | |||||||||
NET ASSET VALUE: |
||||||||||||
Investor Class, offering price and redemption price |
$11.15 | $9.05 | $18.48 | |||||||||
Institutional Class, offering price and redemption price |
$11.14 | $9.11 | $18.61 | |||||||||
NET ASSETS CONSISTS OF: |
||||||||||||
Capital paid-in |
$51,820,040 | $285,582,015 | $603,321,618 | |||||||||
Total distributable earnings/(accumulated loss) |
3,673,820 | (120,473,956 | ) | 232,385,328 | ||||||||
NET ASSETS |
$55,493,860 | $165,108,059 | $835,706,946 | |||||||||
(A) Investments at cost: |
||||||||||||
Unaffiliated Issuers |
$49,012,267 | $186,637,865 | $563,622,837 | |||||||||
Affiliated Issuers |
— | 3,537,343 | — | |||||||||
(B) Foreign Currency at Cost |
$9,611 | $1,255,442 | $4,689,058 |
See accompanying notes to financial statements.
102 | MATTHEWS ASIA FUNDS |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews China Fund |
Matthews India Fund |
Matthews Japan Fund |
||||||||||
ASSETS: |
||||||||||||
Investments at value (A) (Note 2-A and 7): |
||||||||||||
Unaffiliated issuers |
$1,042,618,216 | $533,262,906 | $1,393,048,967 | |||||||||
Cash |
39,382,909 | 18,549,282 | 45,548,082 | |||||||||
Segregated foreign currency at value |
34,355 | — | — | |||||||||
Foreign currency at value (B) |
1,458 | 838,603 | 4,430,138 | |||||||||
Dividends, interest and other receivable |
4,839,937 | 3,495,333 | 776,198 | |||||||||
Receivable for securities sold |
3,946,882 | 1,041,875 | 43,361,995 | |||||||||
Receivable for capital shares sold |
2,016,815 | 697,872 | 1,015,919 | |||||||||
Prepaid expenses |
36,206 | 6,045 | 11,843 | |||||||||
TOTAL ASSETS |
1,092,876,778 | 557,891,916 | 1,488,193,142 | |||||||||
LIABILITIES: |
||||||||||||
Payable for securities purchased |
744,550 | 471,377 | 9,568,396 | |||||||||
Payable for capital shares redeemed |
1,139,040 | 1,040,318 | 8,051,021 | |||||||||
Deferred foreign capital gains tax liability (Note 2-F) |
— | 3,210,660 | — | |||||||||
Due to Advisor (Note 5) |
573,909 | 298,729 | 814,078 | |||||||||
Administration and accounting fees payable (Note 5) |
13,122 | 7,159 | 20,702 | |||||||||
Administration and shareholder servicing fees payable (Note 5) |
128,601 | 66,722 | 182,273 | |||||||||
Custodian fees payable |
24,420 | 181,565 | 48,221 | |||||||||
Intermediary service fees payable (Note 5) |
125,958 | 324,559 | 285,383 | |||||||||
Professional fees payable |
34,402 | 28,781 | 48,167 | |||||||||
Transfer agent fees payable |
15,229 | 16,198 | 24,966 | |||||||||
Accrued other expenses payable |
201,618 | 74,723 | 232,880 | |||||||||
TOTAL LIABILITIES |
3,000,849 | 5,720,791 | 19,276,087 | |||||||||
NET ASSETS |
$1,089,875,929 | $552,171,125 | $1,468,917,055 | |||||||||
NET ASSETS: |
||||||||||||
Investor Class |
$740,104,504 | $477,579,100 | $961,996,490 | |||||||||
Institutional Class |
349,771,425 | 74,592,025 | 506,920,565 | |||||||||
TOTAL |
$1,089,875,929 | $552,171,125 | $1,468,917,055 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 103 |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews China Fund |
Matthews India Fund |
Matthews Japan Fund |
||||||||||
SHARES OUTSTANDING: |
||||||||||||
(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value) |
||||||||||||
Investor Class |
34,467,078 | 25,449,434 | 44,705,554 | |||||||||
Institutional Class |
16,309,310 | 3,925,436 | 23,508,154 | |||||||||
TOTAL |
50,776,388 | 29,374,870 | 68,213,708 | |||||||||
NET ASSET VALUE: |
||||||||||||
Investor Class, offering price and redemption price |
$21.47 | $18.77 | $21.52 | |||||||||
Institutional Class, offering price and redemption price |
$21.45 | $19.00 | $21.56 | |||||||||
NET ASSETS CONSISTS OF: |
||||||||||||
Capital paid-in |
$891,213,359 | $620,521,583 | $1,155,018,140 | |||||||||
Total distributable earnings/(accumulated loss) |
198,662,570 | (68,350,458 | ) | 313,898,915 | ||||||||
NET ASSETS |
$1,089,875,929 | $552,171,125 | $1,468,917,055 | |||||||||
(A) Investments at cost: |
||||||||||||
Unaffiliated Issuers |
$847,902,826 | $564,661,837 | $1,112,170,226 | |||||||||
(B) Foreign Currency at Cost |
$1,458 | $839,186 | $4,440,832 |
See accompanying notes to financial statements.
104 | MATTHEWS ASIA FUNDS |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Korea Fund |
Matthews Asia Small Companies Fund |
Matthews China Small Companies Fund |
||||||||||
ASSETS: |
||||||||||||
Investments at value (A) (Note 2-A and 7): |
||||||||||||
Unaffiliated issuers |
$111,404,145 | $162,058,606 | $356,586,748 | |||||||||
Cash |
1,755,886 | 9,909,417 | 11,809,550 | |||||||||
Segregated foreign currency at value |
— | 3,302 | 15,169 | |||||||||
Foreign currency at value (B) |
— | 214,960 | 383,241 | |||||||||
Dividends, interest and other receivable |
273,005 | 510,575 | 1,048,244 | |||||||||
Receivable for securities sold |
— | 120,702 | — | |||||||||
Receivable for capital shares sold |
11,116 | 127,910 | 8,695,594 | |||||||||
Prepaid expenses |
16,236 | 11,099 | 53,736 | |||||||||
TOTAL ASSETS |
113,460,388 | 172,956,571 | 378,592,282 | |||||||||
LIABILITIES: |
||||||||||||
Payable for securities purchased |
— | 48 | 3,950,764 | |||||||||
Payable for capital shares redeemed |
172,211 | 986,896 | 600,918 | |||||||||
Due to Advisor (Note 5) |
61,778 | 99,104 | 248,448 | |||||||||
Administration and accounting fees payable (Note 5) |
1,437 | 2,069 | 3,982 | |||||||||
Administration and shareholder servicing fees payable (Note 5) |
13,820 | 19,766 | 39,657 | |||||||||
Custodian fees payable |
11,500 | 47,961 | 5,047 | |||||||||
Intermediary service fees payable (Note 5) |
31,028 | 39,398 | — | |||||||||
Professional fees payable |
27,332 | 50,282 | 30,579 | |||||||||
Transfer agent fees payable |
4,335 | 3,029 | 1,168 | |||||||||
Accrued other expenses payable |
19,924 | 18,636 | 5,042 | |||||||||
TOTAL LIABILITIES |
343,365 | 1,267,189 | 4,885,605 | |||||||||
NET ASSETS |
$113,117,023 | $171,689,382 | $373,706,677 | |||||||||
NET ASSETS: |
||||||||||||
Investor Class |
$105,138,108 | $83,269,574 | $213,237,378 | |||||||||
Institutional Class |
7,978,915 | 88,419,808 | 160,469,299 | |||||||||
TOTAL |
$113,117,023 | $171,689,382 | $373,706,677 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 105 |
Statements of Assets and Liabilities (unaudited) (continued) | June 30, 2020 |
Matthews Korea Fund |
Matthews Asia Small Companies Fund |
Matthews China Small Companies Fund |
||||||||||
SHARES OUTSTANDING: |
||||||||||||
(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value) |
||||||||||||
Investor Class |
25,042,402 | 4,177,723 | 10,538,009 | |||||||||
Institutional Class |
1,885,747 | 4,442,317 | 7,912,022 | |||||||||
TOTAL |
26,928,149 | 8,620,040 | 18,450,031 | |||||||||
NET ASSET VALUE: |
||||||||||||
Investor Class, offering price and redemption price |
$4.20 | $19.93 | $20.24 | |||||||||
Institutional Class, offering price and redemption price |
$4.23 | $19.90 | $20.28 | |||||||||
NET ASSETS CONSISTS OF: |
||||||||||||
Capital paid-in |
$109,269,137 | $160,107,853 | $257,962,360 | |||||||||
Total distributable earnings/(accumulated loss) |
3,847,886 | 11,581,529 | 115,744,317 | |||||||||
NET ASSETS |
$113,117,023 | $171,689,382 | $373,706,677 | |||||||||
(A) Investments at cost: |
||||||||||||
Unaffiliated Issuers |
$97,434,722 | $116,589,521 | $245,956,440 | |||||||||
(B) Foreign Currency at Cost |
$— | $214,686 | $383,241 |
See accompanying notes to financial statements.
106 | MATTHEWS ASIA FUNDS |
Statements of Operations (unaudited) | Six-Month Period Ended June 30, 2020 |
Matthews Emerging Markets Equity Fund1 |
Matthews Asia Total Return Bond Fund |
Matthews Asia Credit Opportunities Fund |
||||||||||
INVESTMENT INCOME: |
||||||||||||
Dividends—Unaffiliated Issuers |
$39,801 | $10,253 | $8,735 | |||||||||
Interest |
— | 3,155,491 | 2,769,312 | |||||||||
Foreign withholding tax |
(4,145 | ) | (87,731 | ) | (82,958 | ) | ||||||
TOTAL INVESTMENT INCOME |
35,656 | 3,078,013 | 2,695,089 | |||||||||
EXPENSES: |
||||||||||||
Investment advisory fees (Note 5) |
8,425 | 295,480 | 261,358 | |||||||||
Administration and accounting fees (Note 5) |
101 | 4,298 | 3,802 | |||||||||
Administration and shareholder servicing fees (Note 5) |
1,897 | 79,356 | 70,259 | |||||||||
Accounting out-of-pocket fees |
4,541 | 12,328 | 9,973 | |||||||||
Custodian fees |
9,330 | 19,928 | 10,342 | |||||||||
Printing fees |
2,957 | 14,368 | 12,281 | |||||||||
Intermediary service fees (Note 5) |
926 | 69,733 | 33,797 | |||||||||
Professional fees |
11,847 | 30,707 | 30,111 | |||||||||
Registration fees |
7,166 | 21,672 | 22,298 | |||||||||
Transfer agent fees |
316 | 2,864 | 1,007 | |||||||||
Trustees fees |
126 | 3,110 | 2,150 | |||||||||
Other expenses |
2,163 | 8,543 | 2,135 | |||||||||
TOTAL EXPENSES |
49,795 | 562,387 | 459,513 | |||||||||
Advisory fees waived and expenses waived or reimbursed (Note 5) |
(38,005 | ) | (36,242 | ) | (17,723 | ) | ||||||
NET EXPENSES |
11,790 | 526,145 | 441,790 | |||||||||
NET INVESTMENT INCOME (LOSS) |
23,866 | 2,551,868 | 2,253,299 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS, FOREIGN CURRENCY RELATED TRANSACTIONS, SWAPS, AND FOREIGN CAPITAL GAINS TAXES: | ||||||||||||
Net realized gain (loss) on investments—Unaffiliated Issuers |
178,885 | (2,520,007 | ) | (3,103,571 | ) | |||||||
Net realized gain (loss) on forward foreign currency exchange contracts |
— | (56,573 | ) | — | ||||||||
Net realized gain (loss) on swaps |
— | 21,732 | — | |||||||||
Net realized foreign capital gains tax |
(5,711 | ) | (29,129 | ) | — | |||||||
Net realized gain (loss) on foreign currency related transactions |
(1,542 | ) | (110,160 | ) | (668 | ) | ||||||
Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers |
994,211 | (4,164,191 | ) | (4,066,821 | ) | |||||||
Net change in unrealized appreciation/depreciation on forward foreign currency exchange contracts |
— | (909,133 | ) | — | ||||||||
Net change in unrealized appreciation/depreciation on swaps |
— | 460,955 | — | |||||||||
Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation |
(776 | ) | 38,552 | — | ||||||||
Net change in unrealized appreciation/depreciation on foreign currency related translations |
(91 | ) | 4,055 | (61 | ) | |||||||
Net realized and unrealized gain (loss) on investments, forward foreign currency exchange contracts, foreign currency related transactions, swaps, and foreign capital gains taxes |
1,164,976 | (7,263,899 | ) | (7,171,121 | ) | |||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
$1,188,842 | ($4,712,031 | ) | ($4,917,822 | ) |
1 | The Fund commenced operations on April 30, 2020. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 107 |
Statements of Operations (unaudited) (continued) | Six-Month Period Ended June 30, 2020 |
Matthews Asian Growth and Income Fund |
Matthews Asia Dividend Fund |
Matthews China Dividend Fund |
||||||||||
INVESTMENT INCOME: |
||||||||||||
Dividends—Unaffiliated Issuers |
$18,691,963 | $42,415,952 | $5,223,312 | |||||||||
Dividends—Affiliated Issuers (Note 7) |
— | 10,624,903 | — | |||||||||
Interest |
936,534 | — | — | |||||||||
Foreign withholding tax |
(1,341,026 | ) | (3,185,559 | ) | (180,245 | ) | ||||||
TOTAL INVESTMENT INCOME |
18,287,471 | 49,855,296 | 5,043,067 | |||||||||
EXPENSES: |
||||||||||||
Investment advisory fees (Note 5) |
4,354,888 | 14,112,838 | 1,087,808 | |||||||||
Administration and accounting fees (Note 5) |
52,268 | 169,422 | 13,056 | |||||||||
Administration and shareholder servicing fees (Note 5) |
965,343 | 3,121,944 | 241,040 | |||||||||
Accounting out-of-pocket fees |
19,563 | 19,083 | 16,126 | |||||||||
Custodian fees |
201,117 | 714,191 | 70,238 | |||||||||
Printing fees |
79,441 | 204,849 | 32,987 | |||||||||
Intermediary service fees (Note 5) |
981,090 | 2,753,858 | 302,271 | |||||||||
Professional fees |
42,673 | 98,807 | 27,652 | |||||||||
Registration fees |
32,484 | 79,343 | 29,289 | |||||||||
Transfer agent fees |
30,490 | 50,357 | 8,020 | |||||||||
Trustees fees |
38,516 | 143,245 | 9,487 | |||||||||
Other expenses |
32,079 | 153,381 | 7,647 | |||||||||
TOTAL EXPENSES |
6,829,952 | 21,621,318 | 1,845,621 | |||||||||
Advisory fees waived and expenses waived or reimbursed (Note 5) |
— | (62,600 | ) | — | ||||||||
Administration fees waived (Note 5) |
— | (62,600 | ) | — | ||||||||
NET EXPENSES |
6,829,952 | 21,496,118 | 1,845,621 | |||||||||
NET INVESTMENT INCOME (LOSS) |
11,457,519 | 28,359,178 | 3,197,446 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES: | ||||||||||||
Net realized gain (loss) on investments—Unaffiliated Issuers |
(48,828,440 | ) | (131,657,830 | ) | (12,811,072 | ) | ||||||
Net realized gain (loss) on investments—Affiliated Issuers |
— | 6,259,519 | — | |||||||||
Net realized foreign capital gains tax |
(107,997 | ) | — | — | ||||||||
Net realized gain (loss) on foreign currency related transactions |
(544,433 | ) | (1,695,734 | ) | (17,885 | ) | ||||||
Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers |
(72,758,910 | ) | (110,059,759 | ) | 17,642,870 | |||||||
Net change in unrealized appreciation/depreciation on investments—Affiliated Issuers |
— | (68,789,746 | ) | — | ||||||||
Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation |
(404,318 | ) | — | — | ||||||||
Net change in unrealized appreciation/depreciation on foreign currency related translations |
2,472 | (92,184 | ) | (4,901 | ) | |||||||
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes |
(122,641,626 | ) | (306,035,734 | ) | 4,809,012 | |||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
($111,184,107 | ) | ($277,676,556 | ) | $8,006,458 |
See accompanying notes to financial statements.
108 | MATTHEWS ASIA FUNDS |
Statements of Operations (unaudited) (continued) | Six-Month Period Ended June 30, 2020 |
Matthews Asia Value Fund |
Matthews Asia Growth Fund |
Matthews Pacific Tiger Fund |
||||||||||
INVESTMENT INCOME: |
||||||||||||
Dividends—Unaffiliated Issuers |
$168,929 | $6,700,153 | $60,556,257 | |||||||||
Foreign withholding tax |
(14,137 | ) | (489,884 | ) | (5,347,716 | ) | ||||||
TOTAL INVESTMENT INCOME |
154,792 | 6,210,269 | 55,208,541 | |||||||||
EXPENSES: |
||||||||||||
Investment advisory fees (Note 5) |
50,560 | 3,779,819 | 23,675,895 | |||||||||
Administration and accounting fees (Note 5) |
607 | 45,362 | 284,211 | |||||||||
Administration and shareholder servicing fees (Note 5) |
11,165 | 838,340 | 5,239,139 | |||||||||
Accounting out-of-pocket fees |
13,748 | 17,185 | 19,371 | |||||||||
Custodian fees |
12,082 | 261,568 | 1,663,954 | |||||||||
Printing fees |
10,893 | 44,665 | 208,637 | |||||||||
Intermediary service fees (Note 5) |
14,873 | 687,078 | 4,312,534 | |||||||||
Professional fees |
30,162 | 38,714 | 149,003 | |||||||||
Registration fees |
20,941 | 36,334 | 109,907 | |||||||||
Transfer agent fees |
1,530 | 19,014 | 60,172 | |||||||||
Trustees fees |
559 | 31,030 | 269,759 | |||||||||
Other expenses |
7,731 | 24,742 | 203,976 | |||||||||
TOTAL EXPENSES |
174,851 | 5,823,851 | 36,196,558 | |||||||||
Advisory fees waived and expenses waived or reimbursed (Note 5) |
(71,279 | ) | — | (296,352 | ) | |||||||
Administration fees waived (Note 5) |
— | — | (296,141 | ) | ||||||||
NET EXPENSES |
103,572 | 5,823,851 | 35,604,065 | |||||||||
NET INVESTMENT INCOME (LOSS) |
51,220 | 386,418 | 19,604,476 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES: | ||||||||||||
Net realized gain (loss) on investments—Unaffiliated Issuers |
(1,015,912 | ) | 51,411,473 | 303,754,401 | ||||||||
Net realized gain (loss) on investments—Affiliated Issuers |
— | — | (184,976,125 | ) | ||||||||
Net realized foreign capital gains tax |
(1,250 | ) | — | (4,654 | ) | |||||||
Net realized gain (loss) on foreign currency related transactions |
(19,051 | ) | (405,647 | ) | (2,500,843 | ) | ||||||
Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers |
(783,624 | ) | 50,119,527 | (809,993,389 | ) | |||||||
Net change in unrealized appreciation/depreciation on investments—Affiliated Issuers |
— | — | 87,876,273 | |||||||||
Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation |
(19,474 | ) | 246,697 | 29,522,255 | ||||||||
Net change in unrealized appreciation/depreciation on foreign currency related translations |
(112 | ) | 33,548 | 93,335 | ||||||||
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes |
(1,839,423 | ) | 101,405,598 | (576,228,747 | ) | |||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
($1,788,203 | ) | $101,792,016 | ($556,624,271 | ) |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 109 |
Statements of Operations (unaudited) (continued) | Six-Month Period Ended June 30, 2020 |
Matthews Asia ESG Fund |
Matthews Emerging Asia Fund |
Matthews Asia Innovators Fund |
||||||||||
INVESTMENT INCOME: |
||||||||||||
Dividends—Unaffiliated Issuers |
$371,375 | $3,389,007 | $1,867,176 | |||||||||
Dividends—Affiliated Issuers (Note 7) |
— | — | — | |||||||||
Foreign withholding tax |
(34,854 | ) | (325,376 | ) | (147,367 | ) | ||||||
TOTAL INVESTMENT INCOME |
336,521 | 3,063,631 | 1,719,809 | |||||||||
EXPENSES: |
||||||||||||
Investment advisory fees (Note 5) |
169,359 | 1,074,009 | 1,531,947 | |||||||||
Administration and accounting fees (Note 5) |
2,033 | 8,592 | 18,374 | |||||||||
Administration and shareholder servicing fees (Note 5) |
37,521 | 157,705 | 341,475 | |||||||||
Accounting out-of-pocket fees |
17,850 | 17,872 | 14,340 | |||||||||
Custodian fees |
54,284 | 471,713 | 102,342 | |||||||||
Printing fees |
10,998 | 25,401 | 23,776 | |||||||||
Intermediary service fees (Note 5) |
26,265 | 170,579 | 237,437 | |||||||||
Professional fees |
26,325 | 37,365 | 32,405 | |||||||||
Registration fees |
18,489 | 30,437 | 27,176 | |||||||||
Transfer agent fees |
814 | 6,657 | 11,360 | |||||||||
Trustees fees |
1,399 | 9,302 | 8,428 | |||||||||
Other expenses |
7,742 | 15,052 | 11,610 | |||||||||
TOTAL EXPENSES |
373,079 | 2,024,684 | 2,360,670 | |||||||||
Advisory fees waived and expenses waived or reimbursed (Note 5) |
(50,390 | ) | (661,452 | ) | — | |||||||
NET EXPENSES |
322,689 | 1,363,232 | 2,360,670 | |||||||||
NET INVESTMENT INCOME (LOSS) |
13,832 | 1,700,399 | (640,861 | ) | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES: | ||||||||||||
Net realized gain (loss) on investments—Unaffiliated Issuers |
(1,738,797 | ) | (53,989,898 | ) | 222,790 | |||||||
Net realized gain (loss) on investments—Affiliated Issuers |
— | (30,892 | ) | — | ||||||||
Net realized foreign capital gains tax |
(26,447 | ) | 111,969 | — | ||||||||
Net realized gain (loss) on foreign currency related transactions |
8,084 | (533,698 | ) | (191,164 | ) | |||||||
Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers |
1,604,861 | (24,048,275 | ) | 164,958,944 | ||||||||
Net change in unrealized appreciation/depreciation on investments—Affiliated Issuers |
— | (1,275,061 | ) | — | ||||||||
Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation |
96,012 | 1,452,652 | 207,304 | |||||||||
Net change in unrealized appreciation/depreciation on foreign currency related translations |
577 | (41,869 | ) | (24,434 | ) | |||||||
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes |
(55,710 | ) | (78,355,072 | ) | 165,173,440 | |||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
($41,878 | ) | ($76,654,673 | ) | $164,532,579 |
See accompanying notes to financial statements.
110 | MATTHEWS ASIA FUNDS |
Statements of Operations (unaudited) (continued) | Six-Month Period Ended June 30, 2020 |
Matthews China Fund |
Matthews India Fund |
Matthews Japan Fund |
||||||||||
INVESTMENT INCOME: |
||||||||||||
Dividends—Unaffiliated Issuers |
$9,027,629 | $4,942,255 | $15,399,988 | |||||||||
Foreign withholding tax |
(452,252 | ) | (45,827 | ) | (1,558,341 | ) | ||||||
TOTAL INVESTMENT INCOME |
8,575,377 | 4,896,428 | 13,841,647 | |||||||||
EXPENSES: |
||||||||||||
Investment advisory fees (Note 5) |
3,057,357 | 2,317,081 | 5,915,541 | |||||||||
Administration and accounting fees (Note 5) |
36,687 | 27,825 | 71,012 | |||||||||
Administration and shareholder servicing fees (Note 5) |
679,010 | 511,245 | 1,309,350 | |||||||||
Accounting out-of-pocket fees |
14,977 | 16,551 | 17,154 | |||||||||
Custodian fees |
161,394 | 285,998 | 106,344 | |||||||||
Printing fees |
51,319 | 69,310 | 192,929 | |||||||||
Intermediary service fees (Note 5) |
739,854 | 830,112 | 693,339 | |||||||||
Professional fees |
33,854 | 66,752 | 49,284 | |||||||||
Registration fees |
30,110 | 38,144 | 38,650 | |||||||||
Transfer agent fees |
42,939 | 42,682 | 67,536 | |||||||||
Trustees fees |
23,313 | 29,371 | 62,177 | |||||||||
Other expenses |
14,522 | 25,157 | 50,277 | |||||||||
TOTAL EXPENSES |
4,885,336 | 4,260,228 | 8,573,593 | |||||||||
NET INVESTMENT INCOME (LOSS) |
3,690,041 | 636,200 | 5,268,054 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES: | ||||||||||||
Net realized gain (loss) on investments—Unaffiliated Issuers |
32,940,685 | (51,188,168 | ) | 40,935,090 | ||||||||
Net realized foreign capital gains tax |
— | (1,747,851 | ) | — | ||||||||
Net realized gain (loss) on foreign currency related transactions |
(21,458 | ) | (416,955 | ) | (38,941 | ) | ||||||
Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers |
83,386,795 | (146,924,852 | ) | (124,761,127 | ) | |||||||
Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation |
— | 10,100,989 | — | |||||||||
Net change in unrealized appreciation/depreciation on foreign currency related translations |
7,230 | (40,832 | ) | 29,931 | ||||||||
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes |
116,313,252 | (190,217,669 | ) | (83,835,047 | ) | |||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
$120,003,293 | ($189,581,469 | ) | ($78,566,993 | ) |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 111 |
Statements of Operations (unaudited) (continued) | Six-Month Period Ended June 30, 2020 |
Matthews Korea Fund |
Matthews Asia Small Companies Fund |
Matthews China Small Companies Fund |
||||||||||
INVESTMENT INCOME: |
||||||||||||
Dividends—Unaffiliated Issuers |
$419,823 | $1,142,951 | $2,492,364 | |||||||||
Dividends—Affiliated Issuers (Note 7) |
— | — | — | |||||||||
Foreign withholding tax |
(69,016 | ) | (61,548 | ) | (42,653 | ) | ||||||
TOTAL INVESTMENT INCOME |
350,807 | 1,081,403 | 2,449,711 | |||||||||
EXPENSES: |
||||||||||||
Investment advisory fees (Note 5) |
375,457 | 802,549 | 964,292 | |||||||||
Administration and accounting fees (Note 5) |
4,507 | 6,420 | 7,714 | |||||||||
Administration and shareholder servicing fees (Note 5) |
83,084 | 118,511 | 143,882 | |||||||||
Accounting out-of-pocket fees |
15,078 | 19,549 | 16,592 | |||||||||
Custodian fees |
27,620 | 106,266 | 48,290 | |||||||||
Printing fees |
15,132 | 19,286 | 14,728 | |||||||||
Intermediary service fees (Note 5) |
114,195 | 124,158 | 85,396 | |||||||||
Professional fees |
23,430 | 32,592 | 24,326 | |||||||||
Registration fees |
19,654 | 23,429 | 21,800 | |||||||||
Transfer agent fees |
11,648 | 8,504 | 5,177 | |||||||||
Trustees fees |
4,431 | 4,880 | 2,601 | |||||||||
Other expenses |
4,906 | 9,751 | 2,386 | |||||||||
TOTAL EXPENSES |
699,142 | 1,275,895 | 1,337,184 | |||||||||
Advisory fees waived and expenses waived or reimbursed (Note 5) |
— | (222,432 | ) | (106,645 | ) | |||||||
NET EXPENSES |
699,142 | 1,053,463 | 1,230,539 | |||||||||
NET INVESTMENT INCOME (LOSS) |
(348,335 | ) | 27,940 | 1,219,172 | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES: | ||||||||||||
Net realized gain (loss) on investments—Unaffiliated Issuers |
(4,183,548 | ) | (32,747,997 | ) | 4,905,848 | |||||||
Net realized foreign capital gains tax |
— | (380,107 | ) | — | ||||||||
Net realized gain (loss) on foreign currency related transactions |
(222,044 | ) | (45,775 | ) | (20,351 | ) | ||||||
Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers |
(1,841,080 | ) | 45,379,939 | 99,386,779 | ||||||||
Net change in unrealized appreciation/depreciation on investments—Affiliated Issuers |
— | — | — | |||||||||
Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation |
— | 1,058,762 | — | |||||||||
Net change in unrealized appreciation/depreciation on foreign currency related translations |
(5,961 | ) | (10,728 | ) | 3,398 | |||||||
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes |
(6,252,633 | ) | 13,254,094 | 104,275,674 | ||||||||
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS |
($6,600,968 | ) | $13,282,034 | $105,494,846 |
See accompanying notes to financial statements.
112 | MATTHEWS ASIA FUNDS |
Statements of Changes in Net Assets
MATTHEWS EMERGING MARKETS EQUITY FUND | For the Period Ended June 30, 20201 (unaudited) |
|||
OPERATIONS: |
||||
Net investment income (loss) |
$23,866 | |||
Net realized gain (loss) on investments and foreign currency related transactions |
171,632 | |||
Net unrealized appreciation/depreciation on investments and foreign currency related translations |
994,120 | |||
Net foreign capital gains taxes on unrealized appreciation/depreciation |
(776 | ) | ||
Net increase (decrease) in net assets resulting from operations |
1,188,842 | |||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
7,995,540 | |||
Total increase (decrease) in net assets |
9,184,382 | |||
NET ASSETS: |
||||
Beginning of period |
— | |||
End of period |
$9,184,382 |
1 | The Fund commenced operations on April 30, 2020. |
MATTHEWS ASIA TOTAL RETURN BOND FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$2,551,868 | $5,275,508 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(2,694,137 | ) | 2,760,825 | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(5,069,269 | ) | 5,339,732 | |||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
38,552 | (61,630 | ) | |||||
Net change in unrealized appreciation/depreciation on swaps |
460,955 | 167,864 | ||||||
Net increase (decrease) in net assets resulting from operations |
(4,712,031 | ) | 13,482,299 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
(597,697 | ) | (1,587,247 | ) | ||||
Institutional Class |
(1,233,765 | ) | (3,115,399 | ) | ||||
Net decrease in net assets resulting from distributions |
(1,831,462 | ) | (4,702,646 | ) | ||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(8,064,931 | ) | 7,218,828 | |||||
Total increase (decrease) in net assets |
(14,608,424 | ) | 15,998,481 | |||||
NET ASSETS: |
||||||||
Beginning of period |
116,713,664 | 100,715,183 | ||||||
End of period |
$102,105,240 | $116,713,664 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 113 |
Statements of Changes in Net Assets (continued)
MATTHEWS ASIA CREDIT OPPORTUNITIES FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$2,253,299 | $2,714,178 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(3,104,239 | ) | 1,177,604 | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(4,066,882 | ) | 2,960,665 | |||||
Net increase (decrease) in net assets resulting from operations |
(4,917,822 | ) | 6,852,447 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
(204,011 | ) | (524,567 | ) | ||||
Institutional Class |
(1,697,185 | ) | (2,481,265 | ) | ||||
Net decrease in net assets resulting from distributions |
(1,901,196 | ) | (3,005,832 | ) | ||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
6,383,390 | 48,835,145 | ||||||
Total increase (decrease) in net assets |
(435,628 | ) | 52,681,760 | |||||
NET ASSETS: |
||||||||
Beginning of period |
92,434,728 | 39,752,968 | ||||||
End of period |
$91,999,100 | $92,434,728 | ||||||
MATTHEWS ASIAN GROWTH AND INCOME FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$11,457,519 | $24,839,454 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(49,480,870 | ) | 33,418,182 | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(72,756,438 | ) | 169,842,257 | |||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
(404,318 | ) | (415,629 | ) | ||||
Net increase (decrease) in net assets resulting from operations |
(111,184,107 | ) | 227,684,264 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
(4,224,486 | ) | (27,564,628 | ) | ||||
Institutional Class |
(5,432,329 | ) | (26,611,609 | ) | ||||
Net decrease in net assets resulting from distributions |
(9,656,815 | ) | (54,176,237 | ) | ||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(94,691,737 | ) | (101,433,061 | ) | ||||
Total increase (decrease) in net assets |
(215,532,659 | ) | 72,074,966 | |||||
NET ASSETS: |
||||||||
Beginning of period |
1,467,766,339 | 1,395,691,373 | ||||||
End of period |
$1,252,233,680 | $1,467,766,339 |
See accompanying notes to financial statements.
114 | MATTHEWS ASIA FUNDS |
Statements of Changes in Net Assets (continued)
MATTHEWS ASIA DIVIDEND FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$28,359,178 | $102,330,702 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(127,094,045 | ) | (18,513,511 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(178,941,689 | ) | 510,591,484 | |||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
— | 4,810,331 | ||||||
Net increase (decrease) in net assets resulting from operations |
(277,676,556 | ) | 599,219,006 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
(17,561,281 | ) | (53,870,328 | ) | ||||
Institutional Class |
(22,639,878 | ) | (70,646,662 | ) | ||||
Net decrease in net assets resulting from distributions |
(40,201,159 | ) | (124,516,990 | ) | ||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(1,228,362,103 | ) | (872,071,489 | ) | ||||
Total increase (decrease) in net assets |
(1,546,239,818 | ) | (397,369,473 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
5,370,455,874 | 5,767,825,347 | ||||||
End of period |
$3,824,216,056 | $5,370,455,874 | ||||||
MATTHEWS CHINA DIVIDEND FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$3,197,446 | $7,645,006 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(12,828,957 | ) | (4,537,088 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
17,637,969 | 39,016,746 | ||||||
Net increase (decrease) in net assets resulting from operations |
8,006,458 | 42,124,664 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
(4,927,611 | ) | (4,319,260 | ) | ||||
Institutional Class |
(2,126,434 | ) | (1,789,894 | ) | ||||
Net decrease in net assets resulting from distributions |
(7,054,045 | ) | (6,109,154 | ) | ||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(59,937,880 | ) | 75,065,788 | |||||
Total increase (decrease) in net assets |
(58,985,467 | ) | 111,081,298 | |||||
NET ASSETS: |
||||||||
Beginning of period |
380,740,619 | 269,659,321 | ||||||
End of period |
$321,755,152 | $380,740,619 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 115 |
Statements of Changes in Net Assets (continued)
MATTHEWS ASIA VALUE FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$51,220 | $344,009 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(1,036,213 | ) | (982,277 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(783,736 | ) | 2,169,863 | |||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
(19,474 | ) | (3,548 | ) | ||||
Net increase (decrease) in net assets resulting from operations |
(1,788,203 | ) | 1,528,047 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (781,895 | ) | |||||
Institutional Class |
— | (402,259 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (1,184,154 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(4,582,546 | ) | (3,719,029 | ) | ||||
Total increase (decrease) in net assets |
(6,370,749 | ) | (3,375,136 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
19,819,873 | 23,195,009 | ||||||
End of period |
$13,449,124 | $19,819,873 | ||||||
MATTHEWS ASIA GROWTH FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$386,418 | ($715,202 | ) | |||||
Net realized gain (loss) on investments and foreign currency related transactions |
51,005,826 | 19,441,989 | ||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
50,153,075 | 228,921,472 | ||||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
246,697 | 511,519 | ||||||
Net increase (decrease) in net assets resulting from operations |
101,792,016 | 248,159,778 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (4,892,092 | ) | |||||
Institutional Class |
— | (6,690,700 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (11,582,792 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
7,082,194 | 36,423,847 | ||||||
Total increase (decrease) in net assets |
108,874,210 | 273,000,833 | ||||||
NET ASSETS: |
||||||||
Beginning of period |
1,203,334,389 | 930,333,556 | ||||||
End of period |
$1,312,208,599 | $1,203,334,389 |
See accompanying notes to financial statements.
116 | MATTHEWS ASIA FUNDS |
Statements of Changes in Net Assets (continued)
MATTHEWS PACIFIC TIGER FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$19,604,476 | $66,894,383 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
116,272,779 | 216,614,527 | ||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(722,023,781 | ) | 599,062,809 | |||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
29,522,255 | (14,695,530 | ) | |||||
Net increase (decrease) in net assets resulting from operations |
(556,624,271 | ) | 867,876,189 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (85,396,598 | ) | |||||
Institutional Class |
— | (218,660,671 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (304,057,269 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(1,475,588,817 | ) | (145,194,433 | ) | ||||
Total increase (decrease) in net assets |
(2,032,213,088 | ) | 418,624,487 | |||||
NET ASSETS: |
||||||||
Beginning of period |
8,725,858,690 | 8,307,234,203 | ||||||
End of period |
$6,693,645,602 | $8,725,858,690 | ||||||
MATTHEWS ASIA ESG FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$13,832 | $222,042 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(1,757,160 | ) | 918,570 | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
1,605,438 | 3,585,929 | ||||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
96,012 | (64,762 | ) | |||||
Net increase (decrease) in net assets resulting from operations |
(41,878 | ) | 4,661,779 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (254,181 | ) | |||||
Institutional Class |
— | (519,330 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (773,511 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
236,906 | 18,878,771 | ||||||
Total increase (decrease) in net assets |
195,028 | 22,767,039 | ||||||
NET ASSETS: |
||||||||
Beginning of period |
55,298,832 | 32,531,793 | ||||||
End of period |
$55,493,860 | $55,298,832 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 117 |
Statements of Changes in Net Assets (continued)
MATTHEWS EMERGING ASIA FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$1,700,399 | $5,409,950 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(54,442,519 | ) | (28,825,183 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(25,365,205 | ) | 15,008,562 | |||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
1,452,652 | 825,523 | ||||||
Net increase (decrease) in net assets resulting from operations |
(76,654,673 | ) | (7,581,148 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (2,211,813 | ) | |||||
Institutional Class |
— | (6,143,721 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (8,355,534 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(78,419,267 | ) | (39,111,583 | ) | ||||
REDEMPTION FEES |
— | 55,503 | ||||||
Total increase (decrease) in net assets |
(155,073,940 | ) | (54,992,762 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
320,181,999 | 375,174,761 | ||||||
End of period |
$165,108,059 | $320,181,999 | ||||||
MATTHEWS ASIA INNOVATORS FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
($640,861 | ) | $46,812 | |||||
Net realized gain (loss) on investments and foreign currency related transactions |
31,626 | 2,617,309 | ||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
164,934,510 | 68,307,210 | ||||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
207,304 | (579,902 | ) | |||||
Net increase (decrease) in net assets resulting from operations |
164,532,579 | 70,391,429 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (517,344 | ) | |||||
Institutional Class |
— | (360,553 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (877,897 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
366,625,188 | (9,182,208 | ) | |||||
Total increase (decrease) in net assets |
531,157,767 | 60,331,324 | ||||||
NET ASSETS: |
||||||||
Beginning of period |
304,549,179 | 244,217,855 | ||||||
End of period |
$835,706,946 | $304,549,179 |
See accompanying notes to financial statements.
118 | MATTHEWS ASIA FUNDS |
Statements of Changes in Net Assets (continued)
MATTHEWS CHINA FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$3,690,041 | $8,157,012 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
32,919,227 | (10,571,367 | ) | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
83,394,025 | 228,077,121 | ||||||
Net increase (decrease) in net assets resulting from operations |
120,003,293 | 225,662,766 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (8,017,681 | ) | |||||
Institutional Class |
— | (2,383,141 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (10,400,822 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
67,477,611 | 74,020,367 | ||||||
Total increase (decrease) in net assets |
187,480,904 | 289,282,311 | ||||||
NET ASSETS: |
||||||||
Beginning of period |
902,395,025 | 613,112,714 | ||||||
End of period |
$1,089,875,929 | $902,395,025 | ||||||
MATTHEWS INDIA FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$636,200 | $26,423 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(53,352,974 | ) | 32,455,342 | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(146,965,684 | ) | (48,195,961 | ) | ||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
10,100,989 | (1,438,891 | ) | |||||
Net increase (decrease) in net assets resulting from operations |
(189,581,469 | ) | (17,153,087 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (88,576,196 | ) | |||||
Institutional Class |
— | (20,261,209 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (108,837,405 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(222,654,310 | ) | (451,382,627 | ) | ||||
Total increase (decrease) in net assets |
(412,235,779 | ) | (577,373,119 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
964,406,904 | 1,541,780,023 | ||||||
End of period |
$552,171,125 | $964,406,904 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 119 |
Statements of Changes in Net Assets (continued)
MATTHEWS JAPAN FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$5,268,054 | $13,902,590 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
40,896,149 | 120,429,499 | ||||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(124,731,196 | ) | 491,227,271 | |||||
Net increase (decrease) in net assets resulting from operations |
(78,566,993 | ) | 625,559,360 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (120,196,392 | ) | |||||
Institutional Class |
— | (74,901,937 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (195,098,329 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(759,185,142 | ) | (995,366,160 | ) | ||||
Total increase (decrease) in net assets |
(837,752,135 | ) | (564,905,129 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
2,306,669,190 | 2,871,574,319 | ||||||
End of period |
$1,468,917,055 | $2,306,669,190 | ||||||
MATTHEWS KOREA FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
($348,335 | ) | $413,405 | |||||
Net realized gain (loss) on investments and foreign currency related transactions |
(4,405,592 | ) | (2,970,527 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
(1,847,041 | ) | 7,136,355 | |||||
Net increase (decrease) in net assets resulting from operations |
(6,600,968 | ) | 4,579,233 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (9,142,261 | ) | |||||
Institutional Class |
— | (1,778,394 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (10,920,655 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(17,095,952 | ) | (3,301,705 | ) | ||||
Total increase (decrease) in net assets |
(23,696,920 | ) | (9,643,127 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
136,813,943 | 146,457,070 | ||||||
End of period |
$113,117,023 | $136,813,943 |
See accompanying notes to financial statements.
120 | MATTHEWS ASIA FUNDS |
Statements of Changes in Net Assets (continued)
MATTHEWS ASIA SMALL COMPANIES FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$27,940 | $1,449,817 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
(33,173,879 | ) | (465,246 | ) | ||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
45,369,211 | 29,646,396 | ||||||
Net change on foreign capital gains taxes on unrealized appreciation/depreciation |
1,058,762 | (61,919 | ) | |||||
Net increase (decrease) in net assets resulting from operations |
13,282,034 | 30,569,048 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (493,289 | ) | |||||
Institutional Class |
— | (598,845 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (1,092,134 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
(22,826,908 | ) | (34,658,494 | ) | ||||
REDEMPTION FEES |
— | 25,416 | ||||||
Total increase (decrease) in net assets |
(9,544,874 | ) | (5,156,164 | ) | ||||
NET ASSETS: |
||||||||
Beginning of period |
181,234,256 | 186,390,420 | ||||||
End of period |
$171,689,382 | $181,234,256 | ||||||
MATTHEWS CHINA SMALL COMPANIES FUND | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended December 31, 2019 |
||||||
OPERATIONS: |
||||||||
Net investment income (loss) |
$1,219,172 | $966,048 | ||||||
Net realized gain (loss) on investments and foreign currency related transactions |
4,885,497 | (928,242 | ) | |||||
Net change in unrealized appreciation/depreciation on investments and foreign currency related translations |
99,390,177 | 22,074,402 | ||||||
Net increase (decrease) in net assets resulting from operations |
105,494,846 | 22,112,208 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
||||||||
Investor Class |
— | (636,765 | ) | |||||
Institutional Class |
— | (367,639 | ) | |||||
Net decrease in net assets resulting from distributions |
— | (1,004,404 | ) | |||||
CAPITAL SHARE TRANSACTIONS (net) (Note 4) |
172,403,538 | 12,164,538 | ||||||
REDEMPTION FEES |
— | 56,296 | ||||||
Total increase (decrease) in net assets |
277,898,384 | 33,328,638 | ||||||
NET ASSETS: |
||||||||
Beginning of period |
95,808,293 | 62,479,655 | ||||||
End of period |
$373,706,677 | $95,808,293 |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 121 |
Matthews Emerging Markets Equity Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout the period presented.
INVESTOR CLASS | Period Ended June 30, 20201 (unaudited) |
|||
Net Asset Value, beginning of period |
$10.00 | |||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||
Net investment income (loss)2 |
0.03 | |||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
1.64 | |||
Total from investment operations |
1.67 | |||
Net Asset Value, end of period |
$11.67 | |||
TOTAL RETURN |
16.70% | 3 | ||
RATIOS/SUPPLEMENTAL DATA |
||||
Net assets, end of period (in 000’s) |
$1,683 | |||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
3.96% | 4 | ||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.15% | 4 | ||
Ratio of net investment income (loss) to average net assets |
1.88% | 4 | ||
Portfolio turnover5 |
58.23% | 3 | ||
INSTITUTIONAL CLASS | Period Ended |
|||
Net Asset Value, beginning of period |
$10.00 | |||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||
Net investment income (loss)2 |
0.03 | |||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
1.64 | |||
Total from investment operations |
1.67 | |||
Net Asset Value, end of period |
$11.67 | |||
TOTAL RETURN |
16.70% | 3 | ||
RATIOS/SUPPLEMENTAL DATA |
||||
Net assets, end of period (in 000’s) |
$7,501 | |||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
3.94% | 4 | ||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.90% | 4 | ||
Ratio of net investment income (loss) to average net assets |
1.89% | 4 | ||
Portfolio turnover5 |
58.23% | 3 |
1 | Commenced operations on April 30, 2020. |
2 | Calculated using the average daily shares method. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
122 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews Asia Total Return Bond Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$11.12 | $10.25 | $10.98 | $10.43 | $9.96 | $10.31 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.24 | 0.50 | 0.40 | 0.51 | 0.50 | 0.47 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, forward foreign currency exchange contracts, swaps, foreign currency related transactions, and foreign capital gains taxes |
(0.65 | ) | 0.81 | (0 84 | ) | 0.46 | 0.38 | (0 53 | ) | |||||||||||||||
Total from investment operations |
(0.41 | ) | 1.31 | (0.44 | ) | 0.97 | 0.88 | (0.06 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.17 | ) | (0.44 | ) | (0.25 | ) | (0.42 | ) | (0.41 | ) | (0.29 | ) | ||||||||||||
Return of capital |
— | — | (0.04 | ) | — | — | — | |||||||||||||||||
Total distributions |
(0.17 | ) | (0.44 | ) | (0.29 | ) | (0.42 | ) | (0.41 | ) | (0.29 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$10.54 | $11.12 | $10.25 | $10.98 | $10.43 | $9.96 | ||||||||||||||||||
TOTAL RETURN |
(3.65% | )3 | 13.00% | (4.05% | ) | 9.40% | 8.85% | (0.58% | ) | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$36,245 | $39,485 | $40,698 | $63,437 | $55,409 | $51,130 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.15% | 4 | 1.08% | 1.23% | 1.29% | 1.33% | 1.28% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.13% | 4 | 1.07% | 1.15% | 1.15% | 1.15% | 1.12% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
4.60% | 4 | 4.61% | 3.76% | 4.70% | 4.85% | 4.57% | |||||||||||||||||
Portfolio turnover5 |
21.45% | 3 | 84.38% | 82.32% | 36.58% | 71.50% | 50.09% | |||||||||||||||||
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$11.12 | $10.25 | $10.97 | $10.42 | $9.96 | $10.30 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.25 | 0.52 | 0.42 | 0.53 | 0.53 | 0.49 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, forward foreign currency exchange contracts, swaps, foreign currency related transactions, and foreign capital gains taxes |
(0.65 | ) | 0.81 | (0 83 | ) | 0.47 | 0.36 | (0 52 | ) | |||||||||||||||
Total from investment operations |
(0.40 | ) | 1.33 | (0.41 | ) | 1.00 | 0.89 | (0.03 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.18 | ) | (0.46 | ) | (0.27 | ) | (0.45 | ) | (0.43 | ) | (0.31 | ) | ||||||||||||
Return of capital |
— | — | (0.04 | ) | — | — | — | |||||||||||||||||
Total distributions |
(0.18 | ) | (0.46 | ) | (0.31 | ) | (0.45 | ) | (0.43 | ) | (0.31 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$10.54 | $11.12 | $10.25 | $10.97 | $10.42 | $9.96 | ||||||||||||||||||
TOTAL RETURN |
(3.55% | )3 | 13.20% | (3.78% | ) | 9.67% | 9.02% | (0.27% | ) | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$65,860 | $77,228 | $60,017 | $31,155 | $13,398 | $11,001 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.99% | 4 | 0.97% | 1.04% | 1.08% | 1.12% | 1.09% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.90% | 4 | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
4.83% | 4 | 4.81% | 4.03% | 4.93% | 5.13% | 4.81% | |||||||||||||||||
Portfolio turnover5 |
21.45% | 3 | 84.38% | 82.32% | 36.58% | 71.50% | 50.09% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 123 |
Financial Highlights (continued)
Matthews Asia Credit Opportunities Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | Period Ended Dec. 31, 20161 |
|||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Net Asset Value, beginning of period |
$10.57 | $9.76 | $10.39 | $10.13 | $10.00 | |||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||
Net investment income (loss)2 |
0.23 | 0.47 | 0.37 | 0.44 | 0.29 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, swaps, and foreign currency related transactions |
(0.74 | ) | 0.82 | (0.67 | ) | 0.35 | 0.18 | |||||||||||||
Total from investment operations |
(0.51 | ) | 1.29 | (0.30 | ) | 0.79 | 0.47 | |||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||
Net investment income |
(0.18 | ) | (0.44 | ) | (0.33 | ) | (0.43 | ) | (0.32 | ) | ||||||||||
Net realized gains on investments |
— | (0.04 | ) | — | (0.10 | ) | (0.02 | ) | ||||||||||||
Total distributions |
(0.18 | ) | (0.48 | ) | (0.33 | ) | (0.53 | ) | (0.34 | ) | ||||||||||
Net Asset Value, end of period |
$9.88 | $10.57 | $9.76 | $10.39 | $10.13 | |||||||||||||||
TOTAL RETURN |
(4.74% | )3 | 13.34% | (2.88% | ) | 7.86% | 4.66% | 3 | ||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||
Net assets, end of period (in 000’s) |
$10,382 | $12,997 | $8,668 | $10,201 | $10,119 | |||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.15% | 4 | 1.24% | 1.44% | 1.86% | 2.24% | 4 | |||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.15% | 4 | 1.12% | 1.15% | 1.15% | 1.15% | 4 | |||||||||||||
Ratio of net investment income (loss) to average net assets |
4.49% | 4 | 4.55% | 3.62% | 4.17% | 4.12% | 4 | |||||||||||||
Portfolio turnover5 |
14.86% | 3 | 81.08% | 49.06% | 27.86% | 18.80% | 3 | |||||||||||||
INSTITUTIONAL CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | Period Ended Dec. 31, 20161 |
|||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Net Asset Value, beginning of period |
$10.57 | $9.75 | $10.39 | $10.13 | $10.00 | |||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||
Net investment income (loss)2 |
0.24 | 0.50 | 0.39 | 0.46 | 0.30 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, swaps, and foreign currency related transactions |
(0.73 | ) | 0.82 | (0.67 | ) | 0.36 | 0.18 | |||||||||||||
Total from investment operations |
(0.49 | ) | 1.32 | (0.28 | ) | 0.82 | 0.48 | |||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||
Net investment income |
(0.20 | ) | (0.46 | ) | (0.36 | ) | (0.46 | ) | (0.33 | ) | ||||||||||
Net realized gains on investments |
— | (0.04 | ) | — | (0.10 | ) | (0.02 | ) | ||||||||||||
Total distributions |
(0.20 | ) | (0.50 | ) | (0.36 | ) | (0.56 | ) | (0.35 | ) | ||||||||||
Net Asset Value, end of period |
$9.88 | $10.57 | $9.75 | $10.39 | $10.13 | |||||||||||||||
TOTAL RETURN |
(4.62% | )3 | 13.69% | (2.75% | ) | 8.13% | 4.82% | 3 | ||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||
Net assets, end of period (in 000’s) |
$81,617 | $79,438 | $31,085 | $21,491 | $6,205 | |||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.94% | 4 | 1.07% | 1.25% | 1.62% | 1.99% | 4 | |||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.90% | 4 | 0.90% | 0.90% | 0.90% | 0.90% | 4 | |||||||||||||
Ratio of net investment income (loss) to average net assets |
4.78% | 4 | 4.79% | 3.90% | 4.45% | 4.28% | 4 | |||||||||||||
Portfolio turnover5 |
14.86% | 3 | 81.08% | 49.06% | 27.86% | 18.80% | 3 |
1 | Commenced operations on April, 29 2016. |
2 | Calculated using the average daily shares method. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
124 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews Asian Growth And Income Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$15.73 | $13.92 | $17.46 | $14.94 | $16.03 | $18.01 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.12 | 0.25 | 0.32 | 0.33 | 0.32 | 0.39 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(1.21 | ) | 2.13 | (2.20 | ) | 2.92 | (0.06 | ) | (1.19 | ) | ||||||||||||||
Total from investment operations |
(1.09 | ) | 2.38 | (1.88 | ) | 3.25 | 0.26 | (0.80 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.11 | ) | (0.35 | ) | (0.32 | ) | (0.46 | ) | (0.48 | ) | (0.42 | ) | ||||||||||||
Net realized gains on investments |
— | (0.22 | ) | (1.34 | ) | (0.27 | ) | (0.87 | ) | (0.76 | ) | |||||||||||||
Total distributions |
(0.11 | ) | (0.57 | ) | (1.66 | ) | (0.73 | ) | (1.35 | ) | (1.18 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | 2 | — | — | 2 | ||||||||||||||||
Net Asset Value, end of period |
$14.53 | $15.73 | $13.92 | $17.46 | $14.94 | $16.03 | ||||||||||||||||||
TOTAL RETURN |
(6.95% | )3 | 17.26% | (10.96% | ) | 21.85% | 1.34% | (4.50% | ) | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$581,679 | $723,815 | $799,328 | $1,535,746 | $1,684,987 | $2,045,435 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.13% | 4 | 1.08% | 1.08% | 1.07% | 1.09% | 1.09% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.65% | 4 | 1.67% | 1.95% | 1.95% | 1.90% | 2.17% | |||||||||||||||||
Portfolio turnover5 |
17.90% | 3 | 21.89% | 32.24% | 23.23% | 15.64% | 16.48% | |||||||||||||||||
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$15.70 | $13.89 | $17.43 | $14.92 | $16.02 | $18.00 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.13 | 0.27 | 0.35 | 0.36 | 0.34 | 0.42 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(1.20 | ) | 2.14 | (2.20 | ) | 2.91 | (0.07 | ) | (1.19 | ) | ||||||||||||||
Total from investment operations |
(1.07 | ) | 2.41 | (1.85 | ) | 3.27 | 0.27 | (0.77 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.12 | ) | (0.38 | ) | (0.35 | ) | (0.49 | ) | (0.50 | ) | (0.45 | ) | ||||||||||||
Net realized gains on investments |
— | (0.22 | ) | (1.34 | ) | (0.27 | ) | (0.87 | ) | (0.76 | ) | |||||||||||||
Total distributions |
(0.12 | ) | (0.60 | ) | (1.69 | ) | (0.76 | ) | (1.37 | ) | (1.21 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | 2 | — | — | 2 | ||||||||||||||||
Net Asset Value, end of period |
$14.51 | $15.70 | $13.89 | $17.43 | $14.92 | $16.02 | ||||||||||||||||||
TOTAL RETURN |
(6.83% | )3 | 17.46% | (10.84% | ) | 22.00% | 1.44% | (4.33% | ) | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$670,554 | $743,951 | $596,364 | $1,310,168 | $809,254 | $823,619 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.97% | 4 | 0.94% | 0.93% | 0.93% | 0.94% | 0.92% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.84% | 4 | 1.80% | 2.14% | 2.16% | 2.06% | 2.34% | |||||||||||||||||
Portfolio turnover5 |
17.90% | 3 | 21.89% | 32.24% | 23.23% | 15.64% | 16.48% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 125 |
Financial Highlights (continued)
Matthews Asia Dividend Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 20161 | 20151 | |||||||||||||||||||
Net Asset Value, beginning of period |
$17.47 | $16.05 | $19.74 | $15.52 | $15.36 | $15.26 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.11 | 0.28 | 0.37 | 0.31 | 0.28 | 0.29 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(0.58 | ) | 1.50 | (2.83 | ) | 5.02 | 0.37 | 0.31 | ||||||||||||||||
Total from investment operations |
(0.47 | ) | 1.78 | (2.46 | ) | 5.33 | 0.65 | 0.60 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.16 | ) | (0.36 | ) | (0.31 | ) | (0.69 | ) | (0.29 | ) | (0.27 | ) | ||||||||||||
Net realized gains on investments |
— | — | (0.92 | ) | (0.42 | ) | (0.11 | ) | (0.23 | ) | ||||||||||||||
Return of capital |
— | — | — | — | (0.09 | ) | — | |||||||||||||||||
Total distributions |
(0.16 | ) | (0.36 | ) | (1.23 | ) | (1.11 | ) | (0.49 | ) | (0.50 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | 3 | — | — | 3 | ||||||||||||||||
Net Asset Value, end of period |
$16.84 | $17.47 | $16.05 | $19.74 | $15.52 | $15.36 | ||||||||||||||||||
TOTAL RETURN |
(2.62% | )4 | 11.17% | (12.72% | ) | 34.69% | 4.13% | 3.86% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$1,748,124 | $2,312,560 | $2,728,599 | $3,713,276 | $2,650,611 | $2,757,910 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.08% | 5 | 1.03% | 1.02% | 1.03% | 1.06% | 1.06% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.07% | 5 | 1.02% | 1.01% | 1.02% | 1.06% | 1.05% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.33% | 5 | 1.68% | 1.97% | 1.67% | 1.79% | 1.82% | |||||||||||||||||
Portfolio turnover6 |
22.60% | 4 | 30.32% | 39.75% | 28.11% | 39.76% | 35.98% | |||||||||||||||||
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 20161 | 20151 | |||||||||||||||||||
Net Asset Value, beginning of period |
$17.47 | $16.04 | $19.73 | $15.52 | $15.35 | $15.26 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.11 | 0.30 | 0.39 | 0.33 | 0.30 | 0.32 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(0.57 | ) | 1.50 | (2.83 | ) | 5.01 | 0.38 | 0.29 | ||||||||||||||||
Total from investment operations |
(0.46 | ) | 1.80 | (2.44 | ) | 5.34 | 0.68 | 0.61 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.17 | ) | (0.37 | ) | (0.33 | ) | (0.71 | ) | (0.31 | ) | (0.29 | ) | ||||||||||||
Net realized gains on investments |
— | — | (0.92 | ) | (0.42 | ) | (0.11 | ) | (0.23 | ) | ||||||||||||||
Return of capital |
— | — | — | — | (0.09 | ) | — | |||||||||||||||||
Total distributions |
(0.17 | ) | (0.37 | ) | (1.25 | ) | (1.13 | ) | (0.51 | ) | (0.52 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | 3 | — | — | 3 | ||||||||||||||||
Net Asset Value, end of period |
$16.84 | $17.47 | $16.04 | $19.73 | $15.52 | $15.35 | ||||||||||||||||||
TOTAL RETURN |
(2.57% | )4 | 11.35% | (12.64% | ) | 34.77% | 4.33% | 3.93% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$2,076,092 | $3,057,896 | $3,039,226 | $3,284,070 | $2,034,276 | $2,045,713 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.98% | 5 | 0.93% | 0.91% | 0.92% | 0.94% | 0.93% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.97% | 5 | 0.92% | 0.90% | 0.91% | 0.93% | 0.92% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.35% | 5 | 1.80% | 2.09% | 1.81% | 1.91% | 1.98% | |||||||||||||||||
Portfolio turnover6 |
22.60% | 4 | 30.32% | 39.75% | 28.11% | 39.76% | 35.98% |
1 | Consolidated Financial Highlights. See Note 2-C. |
2 | Calculated using the average daily shares method. |
3 | Less than $0.01 per share. |
4 | Not annualized. |
5 | Annualized. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
126 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews China Dividend Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$16.20 | $14.32 | $17.61 | $14.09 | $13.79 | $13.37 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.15 | 0.34 | 0.41 | 0.35 | 0.31 | 0.29 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
0.49 | 1.80 | (2.09 | ) | 4.85 | 0 47 | 1 01 | |||||||||||||||||
Total from investment operations |
0.64 | 2.14 | (1.68 | ) | 5.20 | 0.78 | 1.30 | |||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.36 | ) | (0.26 | ) | (0.40 | ) | (0.49 | ) | (0.28 | ) | (0.28 | ) | ||||||||||||
Net realized gains on investments |
— | — | (1.21 | ) | (1.19 | ) | (0.20 | ) | (0.60 | ) | ||||||||||||||
Total distributions |
(0.36 | ) | (0.26 | ) | (1.61 | ) | (1.68 | ) | (0.48 | ) | (0.88 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$16.48 | $16.20 | $14.32 | $17.61 | $14.09 | $13.79 | ||||||||||||||||||
TOTAL RETURN |
4.02% | 3 | 15.00% | (9.98% | ) | 37.69% | 5.70% | 9.54% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$227,148 | $258,111 | $196,626 | $260,593 | $160,400 | $165,514 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.17% | 4 | 1.15% | 1.15% | 1.19% | 1.22% | 1.19% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.96% | 4 | 2.14% | 2.33% | 2.12% | 2.28% | 1.97% | |||||||||||||||||
Portfolio turnover5 |
38.27% | 3 | 65.69% | 66.47% | 69.14% | 72.96% | 79.91% | |||||||||||||||||
|
Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$16.20 | $14.32 | $17.61 | $14.09 | $13.79 | $13.37 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.15 | 0.35 | 0.42 | 0.37 | 0.29 | 0.28 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
0 51 | 1 81 | (2.07 | ) | 4.85 | 0.51 | 1 04 | |||||||||||||||||
Total from investment operations |
0.66 | 2.16 | (1.65 | ) | 5.22 | 0.80 | 1.32 | |||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
(0.38 | ) | (0.28 | ) | (0.43 | ) | (0.51 | ) | (0.30 | ) | (0.30 | ) | ||||||||||||
Net realized gains on investments |
— | — | (1.21 | ) | (1.19 | ) | (0.20 | ) | (0.60 | ) | ||||||||||||||
Total distributions |
(0.38 | ) | (0.28 | ) | (1.64 | ) | (1.70 | ) | (0.50 | ) | (0.90 | ) | ||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$16.48 | $16.20 | $14.32 | $17.61 | $14.09 | $13.79 | ||||||||||||||||||
TOTAL RETURN |
4.09% | 3 | 15.16% | (9.83% | ) | 37.88% | 5.90% | 9.71% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$94,607 | $122,630 | $73,033 | $54,147 | $27,758 | $15,406 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.04% | 4 | 1.01% | 1.01% | 1.04% | 1.06% | 1.00% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.96% | 4 | 2.25% | 2.44% | 2.25% | 2.09% | 1.89% | |||||||||||||||||
Portfolio turnover5 |
38.27% | 3 | 65.69% | 66.47% | 69.14% | 72.96% | 79.91% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 127 |
Financial Highlights (continued)
Matthews Asia Value Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 |
Period Ended Dec. 31, 20151 |
|||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||
Net Asset Value, beginning of period |
$11.06 | $10.86 | $12.83 | $9.96 | $9.85 | $10.00 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.03 | 0.15 | 0.10 | 0.14 | 0.09 | 0.02 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(0.52 | ) | 0.73 | (1.49 | ) | 3.45 | 0.65 | (0.16 | ) | |||||||||||||||
Total from investment operations |
(0.49 | ) | 0.88 | (1.39 | ) | 3.59 | 0.74 | (0.14 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.68 | ) | (0.16 | ) | (0.29 | ) | (0.59 | ) | (0.01 | ) | |||||||||||||
Net realized gains on investments |
— | — | (0.42 | ) | (0.43 | ) | (0.04 | ) | — | |||||||||||||||
Total distributions |
— | (0.68 | ) | (0.58 | ) | (0.72 | ) | (0.63 | ) | (0.01 | ) | |||||||||||||
Net Asset Value, end of period |
$10.57 | $11.06 | $10.86 | $12.83 | $9.96 | $9.85 | ||||||||||||||||||
TOTAL RETURN |
(4.43% | )3 | 8.23% | (10.93% | ) | 36.12% | 7.43% | (1.35% | )3 | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$8,105 | $13,246 | $16,326 | $27,346 | $2,548 | $1,589 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
2.36% | 4 | 1.85% | 1.77% | 2.32% | 11.48% | |
36.42% |
4 | |||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.45% | 4 | 1.42% | 1.50% | 1.50% | 1.50% | 1.50% | 4 | ||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.51% | 4 | 1.35% | 0.81% | 1.10% | 0.84% | 2.70% | 4 | ||||||||||||||||
Portfolio turnover5 |
21.77% | 3 | 32.03% | 48.29% | 31.93% | 19.60% | 10.80% | 3 | ||||||||||||||||
INSTITUTIONAL CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | Period Ended Dec. 31, 20151 |
|||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||
Net Asset Value, beginning of period |
$10.97 | $10.78 | $12.73 | $9.85 | $9.83 | $10.00 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.05 | 0.17 | 0.14 | 0.32 | 0.10 | 0.02 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(0.52 | ) | 0.72 | (1.49 | ) | 3.25 | 0.67 | (0.15 | ) | |||||||||||||||
Total from investment operations |
(0.47 | ) | 0.89 | (1.35 | ) | 3.57 | 0.77 | (0.13 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.70 | ) | (0.18 | ) | (0.26 | ) | (0.71 | ) | (0.04 | ) | |||||||||||||
Net realized gains on investments |
— | — | (0.42 | ) | (0.43 | ) | (0.04 | ) | — | |||||||||||||||
Total distributions |
— | (0.70 | ) | (0.60 | ) | (0.69 | ) | (0.75 | ) | (0.04 | ) | |||||||||||||
Net Asset Value, end of period |
$10.50 | $10.97 | $10.78 | $12.73 | $9.85 | $9.83 | ||||||||||||||||||
TOTAL RETURN |
(4.28% | )3 | 8.35% | (10.65% | ) | 36.35% | 7.72% | (1.30% | )3 | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$5,344 | $6,574 | $6,869 | $3,388 | $155 | $143 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
2.20% | 4 | 1.74% | 1.54% | 2.08% | 11.26% | 36.17% | 4 | ||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.20% | 4 | 1.24% | 1.25% | 1.25% | 1.25% | 1.25% | 4 | ||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.99% | 4 | 1.49% | 1.18% | 2.59% | 1.01% | 2.41% | 4 | ||||||||||||||||
Portfolio turnover5 |
21.77% | 3 | 32.03% | 48.29% | 31.93% | 19.60% | 10.80% | 3 |
1 | Commenced operations on November 30, 2015. |
2 | Calculated using the average daily shares method. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
128 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews Asia Growth Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$28.10 | $22.49 | $27.25 | $21.05 | $21.09 | $21.10 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
— | 2 | (0.03 | ) | — | 2 | 0.04 | 0.06 | 0.11 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
2.37 | 5.91 | (4.41 | ) | 8.14 | 0.13 | (0.12 | ) | ||||||||||||||||
Total from investment operations |
2.37 | 5.88 | (4.41 | ) | 8.18 | 0.19 | (0.01 | ) | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.03 | ) | (0.16 | ) | (0.23 | ) | — | |||||||||||||||
Net realized gains on investments |
— | (0.27 | ) | (0.32 | ) | (1.82 | ) | — | — | |||||||||||||||
Total distributions |
— | (0.27 | ) | (0.35 | ) | (1.98 | ) | (0.23 | ) | — | ||||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$30.47 | $28.10 | $22.49 | $27.25 | $21.05 | $21.09 | ||||||||||||||||||
TOTAL RETURN |
8.43% | 3 | 26.18% | (16.25% | ) | 39.39% | 0.92% | (0.05% | ) | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$524,587 | $504,538 | $463,600 | $554,309 | $419,516 | $526,969 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.11% | 4 | 1.09% | 1.10% | 1.12% | 1.14% | 1.11% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.01% | )4 | (0.14% | ) | —% | 5 | 0.16% | 0.30% | 0.49% | |||||||||||||||
Portfolio turnover6 |
26.63% | 3 | 38.05% | 12.12% | 23.19% | 13.61% | 29.51% | |||||||||||||||||
INSTITUTIONAL CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$28.34 | $22.65 | $27.45 | $21.19 | $21.24 | $21.19 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.02 | — | 2 | 0.05 | 0.09 | 0.10 | 0.16 | |||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
2.39 | 5.96 | (4.45 | ) | 8.20 | 0.13 | (0.11 | ) | ||||||||||||||||
Total from investment operations |
2.41 | 5.96 | (4.40 | ) | 8.29 | 0.23 | 0.05 | |||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.08 | ) | (0.21 | ) | (0.28 | ) | — | |||||||||||||||
Net realized gains on investments |
— | (0.27 | ) | (0.32 | ) | (1.82 | ) | — | — | |||||||||||||||
Total distributions |
— | (0.27 | ) | (0.40 | ) | (2.03 | ) | (0.28 | ) | — | ||||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$30.75 | $28.34 | $22.65 | $27.45 | $21.19 | $21.24 | ||||||||||||||||||
TOTAL RETURN |
8.50% | 3 | 26.34% | (16.10% | ) | 39.64% | 1.06% | 0.24% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$787,622 | $698,797 | $466,733 | $296,253 | $195,949 | $249,886 | ||||||||||||||||||
Ratio of expenses to average net assets |
0.97% | 4 | 0.94% | 0.93% | 0.93% | 0.96% | 0.91% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.13% | 4 | —% | 5 | 0.17% | 0.35% | 0.47% | 0.72% | ||||||||||||||||
Portfolio turnover6 |
26.63% | 3 | 38.05% | 12.12% | 23.19% | 13.61% | 29.51% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | Less than 0.01%. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 129 |
Financial Highlights (continued)
Matthews Pacific Tiger Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$28.74 | $26.86 | $31.66 | $22.92 | $23.54 | $26.57 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.06 | 0.19 | 0.24 | 0.17 | 0.11 | 0.42 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(1.42 | ) | 2.68 | (3.75 | ) | 8.96 | (0.13 | ) | (0.82 | ) | ||||||||||||||
Total from investment operations |
(1.36 | ) | 2.87 | (3.51 | ) | 9.13 | (0.02 | ) | (0.40 | ) | ||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.15 | ) | (0.21 | ) | (0.17 | ) | (0.13 | ) | (0.42 | ) | |||||||||||||
Net realized gains on investments |
— | (0.84 | ) | (1.08 | ) | (0.22 | ) | (0.47 | ) | (2.21 | ) | |||||||||||||
Total distributions |
— | (0.99 | ) | (1.29 | ) | (0.39 | ) | (0.60 | ) | (2.63 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | 2 | — | — | 2 | — | — | 2 | |||||||||||||||
Net Asset Value, end of period |
$27.38 | $28.74 | $26.86 | $31.66 | $22.92 | $23.54 | ||||||||||||||||||
TOTAL RETURN |
(4.73% | )3 | 10.72% | (11.11% | ) | 39.96% | (0.16% | ) | (1.30% | ) | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$2,029,934 | $2,536,844 | $2,618,155 | $3,335,795 | $2,445,183 | $2,720,869 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.13% | 4 | 1.08% | 1.07% | 1.08% | 1.09% | 1.09% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.11% | 4 | 1.05% | 1.04% | 1.06% | 1.08% | 1.07% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.47% | 4 | 0.66% | 0.79% | 0.63% | 0.47% | 1.53% | |||||||||||||||||
Portfolio turnover5 |
15.62% | 3 | 17.08% | 11.48% | 9.18% | 5.73% | 12.56% | |||||||||||||||||
INSTITUTIONAL CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$28.71 | $26.83 | $31.63 | $22.90 | $23.52 | $26.56 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.08 | 0.23 | 0.28 | 0.22 | 0.16 | 0.44 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(1.43 | ) | 2.68 | (3.74 | ) | 8.95 | (0.14 | ) | (0.80 | ) | ||||||||||||||
Total from investment operations |
(1.35 | ) | 2.91 | (3.46 | ) | 9.17 | 0.02 | (0.36 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.19 | ) | (0.26 | ) | (0.22 | ) | (0.17 | ) | (0.47 | ) | |||||||||||||
Net realized gains on investments |
— | (0.84 | ) | (1.08 | ) | (0.22 | ) | (0.47 | ) | (2.21 | ) | |||||||||||||
Total distributions |
— | (1.03 | ) | (1.34 | ) | (0.44 | ) | (0.64 | ) | (2.68 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | 2 | — | — | 2 | — | — | 2 | |||||||||||||||
Net Asset Value, end of period |
$27.36 | $28.71 | $26.83 | $31.63 | $22.90 | $23.52 | ||||||||||||||||||
TOTAL RETURN |
(4.70% | )3 | 10.90% | (10.94% | ) | 40.17% | 0.03% | (1.15% | ) | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$4,663,711 | $6,189,015 | $5,689,079 | $6,389,242 | $4,207,508 | $3,964,547 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.97% | 4 | 0.93% | 0.90% | 0.91% | 0.91% | 0.91% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.96% | 4 | 0.91% | 0.88% | 0.89% | 0.90% | 0.89% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.59% | 4 | 0.80% | 0.95% | 0.80% | 0.65% | 1.61% | |||||||||||||||||
Portfolio turnover5 |
15.62% | 3 | 17.08% | 11.48% | 9.18% | 5.73% | 12.56% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
130 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews Asia ESG Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 |
Period Ended Dec. 31, 20151 |
|||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||
Net Asset Value, beginning of period |
$11.08 | $9.98 | $11.56 | $8.97 | $9.23 | $10.00 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
— | 3 | 0.04 | 0.03 | 0.05 | 0.07 | 0.02 | |||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
0.07 | 1.21 | (1.16 | ) | 2.97 | (0.20 | ) | (0.75 | ) | |||||||||||||||
Total from investment operations |
0.07 | 1.25 | (1.13 | ) | 3.02 | (0.13 | ) | (0.73 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.03 | ) | (0.02 | ) | (0.27 | ) | (0.13 | ) | (0.04 | ) | |||||||||||||
Net realized gains on investments |
— | (0.12 | ) | (0.43 | ) | (0.16 | ) | — | — | |||||||||||||||
Total distributions |
— | (0.15 | ) | (0.45 | ) | (0.43 | ) | (0.13 | ) | (0.04 | ) | |||||||||||||
Net Asset Value, end of period |
$11.15 | $11.08 | $9.98 | $11.56 | $8.97 | $9.23 | ||||||||||||||||||
TOTAL RETURN |
0.63% | 4 | 12.55% | (9.73% | ) | 33.79% | (1.40% | ) | (7.30% | )4 | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$21,700 | $19,291 | $9,283 | $10,695 | $5,376 | $3,248 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.55% | 5 | 1.54% | 2.20% | 2.65% | 3.54% | 9.09% | 5 | ||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.39% | 5 | 1.42% | 1.50% | 1.50% | 1.48% | 1.44% | 5 | ||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.03% | )5 | 0.41% | 0.27% | 0.45% | 0.77% | 0.25% | 5 | ||||||||||||||||
Portfolio turnover6 |
51.33% | 4 | 29.67% | 22.93% | 28.82% | 16.10% | 21.72% | 4 | ||||||||||||||||
INSTITUTIONAL CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | Period Ended Dec. 31, 20151 |
|||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||
Net Asset Value, beginning of period |
$11.06 | $9.96 | $11.50 | $8.92 | $9.17 | $10.00 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.01 | 0.06 | 0.06 | 0.08 | 0.09 | 0.05 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
0.07 | 1.21 | (1.16 | ) | 2.95 | (0.19 | ) | (0.77 | ) | |||||||||||||||
Total from investment operations |
0.08 | 1.27 | (1.10 | ) | 3.03 | (0.10 | ) | (0.72 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.05 | ) | (0.01 | ) | (0.29 | ) | (0.15 | ) | (0.11 | ) | |||||||||||||
Net realized gains on investments |
— | (0.12 | ) | (0.43 | ) | (0.16 | ) | — | — | |||||||||||||||
Total distributions |
— | (0.17 | ) | (0.44 | ) | (0.45 | ) | (0.15 | ) | (0.11 | ) | |||||||||||||
Net Asset Value, end of period |
$11.14 | $11.06 | $9.96 | $11.50 | $8.92 | $9.17 | ||||||||||||||||||
TOTAL RETURN |
0.72% | 4 | 12.74% | (9.52% | ) | 34.11% | (1.16% | ) | (7.14% | )4 | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$33,794 | $36,008 | $23,249 | $7,359 | $3,382 | $1,686 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.42% | 5 | 1.41% | 2.01% | 2.46% | 3.36% | 8.90% | 5 | ||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.20% | 5 | 1.24% | 1.25% | 1.25% | 1.25% | 1.25% | 5 | ||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.11% | 5 | 0.54% | 0.55% | 0.71% | 0.97% | 0.75% | 5 | ||||||||||||||||
Portfolio turnover6 |
51.33% | 4 | 29.67% | 22.93% | 28.82% | 16.10% | 21.72% | 4 |
1 | Commenced operations on April 30, 2015. |
2 | Calculated using the average daily shares method. |
3 | Less than $0.01 per share. |
4 | Not annualized. |
5 | Annualized. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 131 |
Financial Highlights (continued)
Matthews Emerging Asia Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$12.07 | $12.50 | $15.51 | $13.18 | $11.27 | $11.60 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.07 | 0.14 | 0.10 | 0.07 | 0.15 | 0.04 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(3.09 | ) | (0.27 | ) | (2.82 | ) | 2.35 | 2.01 | (0.34 | ) | ||||||||||||||
Total from investment operations |
(3.02 | ) | (0.13 | ) | (2.72 | ) | 2.42 | 2.16 | (0.30 | ) | ||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.10 | ) | (0.04 | ) | (0.13 | ) | — | 2 | ||||||||||||||
Net realized gains on investments |
— | (0.30 | ) | (0.19 | ) | (0.05 | ) | (0.13 | ) | (0.03 | ) | |||||||||||||
Total distributions |
— | (0.30 | ) | (0.29 | ) | (0.09 | ) | (0.26 | ) | (0.03 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | 3 | — | 2 | — | 2 | 0.01 | — | 2 | ||||||||||||||
Net Asset Value, end of period |
$9.05 | $12.07 | $12.50 | $15.51 | $13.18 | $11.27 | ||||||||||||||||||
TOTAL RETURN |
(25.02% | )4 | (1.01% | ) | (17.58% | ) | 18.42% | 19.25% | (2.56% | ) | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$49,596 | $84,543 | $118,505 | $219,596 | $145,164 | $114,590 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.98% | 5 | 1.65% | 1.66% | 1.70% | 1.77% | 1.75% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.45% | 5 | 1.46% | 1.48% | 1.48% | 1.47% | 1.50% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.42% | 5 | 1.15% | 0.72% | 0.49% | 1.26% | 0.33% | |||||||||||||||||
Portfolio turnover6 |
10.65% | 4 | 18.77% | 26.09% | 7.74% | 34.90% | 12.14% | |||||||||||||||||
INSTITUTIONAL CLASS | Six-Month Period Ended June 30, 2020 (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$12.13 | $12.54 | $15.57 | $13.22 | $11.29 | $11.60 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.08 | 0.17 | 0.14 | 0.10 | 0.21 | 0.07 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(3.10 | ) | (0.28 | ) | (2.85 | ) | 2.37 | 1.99 | (0.34 | ) | ||||||||||||||
Total from investment operations |
(3.02 | ) | (0.11 | ) | (2.71 | ) | 2.47 | 2.20 | (0.27 | ) | ||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.13 | ) | (0.07 | ) | (0.15 | ) | (0.01 | ) | ||||||||||||||
Net realized gains on investments |
— | (0.30 | ) | (0.19 | ) | (0.05 | ) | (0.13 | ) | (0.03 | ) | |||||||||||||
Total distributions |
— | (0.30 | ) | (0.32 | ) | (0.12 | ) | (0.28 | ) | (0.04 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | 3 | — | 2 | — | 2 | 0.01 | — | 2 | ||||||||||||||
Net Asset Value, end of period |
$9.11 | $12.13 | $12.54 | $15.57 | $13.22 | $11.29 | ||||||||||||||||||
TOTAL RETURN |
(24.90% | )4 | (0.85% | ) | (17.41% | ) | 18.70% | 19.61% | (2.33% | ) | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$115,512 | $235,639 | $256,669 | $275,233 | $95,724 | $55,278 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.85% | 5 | 1.51% | 1.50% | 1.52% | 1.62% | 1.57% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.20% | 5 | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.65% | 5 | 1.39% | 0.97% | 0.70% | 1.72% | 0.65% | |||||||||||||||||
Portfolio turnover6 |
10.65% | 4 | 18.77% | 26.09% | 7.74% | 34.90% | 12.14% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | The Fund charged redemption fees through October 31, 2019. |
4 | Not annualized. |
5 | Annualized. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
132 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews Asia Innovators Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
INVESTOR CLASS |
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$14.55 | $11.26 | $14.19 | $10.10 | $12.32 | $13.61 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.03 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.05 | ) | ||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
3.96 | 3.34 | (2.62 | ) | 5.31 | (1.07 | ) | 0.64 | ||||||||||||||||
Total from investment operations |
3.93 | 3.33 | (2.63 | ) | 5.29 | (1.09 | ) | 0.59 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.04 | ) | (0.24 | ) | — | — | ||||||||||||||||
Net realized gains on investments |
— | (0.04 | ) | (0.26 | ) | (0.96 | ) | (1.13 | ) | (1.88 | ) | |||||||||||||
Total distributions |
— | (0.04 | ) | (0.30 | ) | (1.20 | ) | (1.13 | ) | (1.88 | ) | |||||||||||||
Net Asset Value, end of period |
$18.48 | $14.55 | $11.26 | $14.19 | $10.10 | $12.32 | ||||||||||||||||||
TOTAL RETURN |
27.01% | 2 | 29.60% | (18.62% | ) | 52.88% | (9.10% | ) | 4.48% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$286,839 | $177,639 | $152,449 | $175,331 | $83,926 | $129,763 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.11% | 3 | 1.19% | 1.19% | 1.24% | 1.24% | 1.18% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.44% | )3 | (0.04% | ) | (0.07% | ) | (0.18% | ) | (0.19% | ) | (0.33% | ) | ||||||||||||
Portfolio turnover4 |
42.24% | 2 | 80.10% | 85.73% | 66.51% | 92.25% | 72.85% | |||||||||||||||||
INSTITUTIONAL CLASS | Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Net Asset Value, beginning of period |
$14.64 | $11.32 | $14.26 | $10.14 | $12.34 | $13.61 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.01 | ) | 0.01 | 0.01 | 0.01 | 0.01 | (0.02 | ) | ||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
3.98 | 3.35 | (2.62 | ) | 5.33 | (1.08 | ) | 0.63 | ||||||||||||||||
Total from investment operations |
3.97 | 3.36 | (2.61 | ) | 5.34 | (1.07 | ) | 0.61 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.07 | ) | (0.26 | ) | — | — | ||||||||||||||||
Net realized gains on investments |
— | (0.04 | ) | (0.26 | ) | (0.96 | ) | (1.13 | ) | (1.88 | ) | |||||||||||||
Total distributions |
— | (0.04 | ) | (0.33 | ) | (1.22 | ) | (1.13 | ) | (1.88 | ) | |||||||||||||
Net Asset Value, end of period |
$18.61 | $14.64 | $11.32 | $14.26 | $10.14 | $12.34 | ||||||||||||||||||
TOTAL RETURN |
27.12% | 2 | 29.71% | (18.40% | ) | 53.18% | (8.92% | ) | 4.63% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$548,868 | $126,911 | $91,769 | $30,957 | $16,545 | $36,770 | ||||||||||||||||||
Ratio of expenses to average net assets |
0.96% | 3 | 1.05% | 1.02% | 1.05% | 1.01% | 0.97% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.15% | )3 | 0.10% | 0.07% | 0.06% | 0.06% | (0.16% | ) | ||||||||||||||||
Portfolio turnover4 |
42.24% | 2 | 80.10% | 85.73% | 66.51% | 92.25% | 72.85% |
1 | Calculated using the average daily shares method. |
2 | Not annualized. |
3 | Annualized. |
4 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 133 |
Financial Highlights (continued)
Matthews China Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 20161 | 20151 | |||||||||||||||||||
Net Asset Value, beginning of period |
$19.12 | $14.37 | $22.20 | $15.47 | $18.42 | $21.46 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.06 | 0.16 | 0.21 | 0.16 | 0.21 | 0.20 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
2.29 | 4.80 | (4.84 | ) | 8.86 | (1.04 | ) | 0.30 | ||||||||||||||||
Total from investment operations |
2.35 | 4.96 | (4.63 | ) | 9.02 | (0.83 | ) | 0.50 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.21 | ) | (0.29 | ) | (0.37 | ) | (0.26 | ) | (0.21 | ) | |||||||||||||
Net realized gains on investments |
— | — | (2.91 | ) | (1.92 | ) | (1.29 | ) | (3.33 | ) | ||||||||||||||
Return of capital |
— | — | — | — | (0.57 | ) | — | |||||||||||||||||
Total distributions |
— | (0.21 | ) | (3.20 | ) | (2.29 | ) | (2.12 | ) | (3.54 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | 3 | — | 3 | ||||||||||||||||
Net Asset Value, end of period |
$21.47 | $19.12 | $14.37 | $22.20 | $15.47 | $18.42 | ||||||||||||||||||
TOTAL RETURN |
12.29% | 4 | 34.56% | (21.42% | ) | 59.37% | (5.18% | ) | 2.41% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$740,105 | $718,633 | $566,456 | $843,508 | $495,900 | $709,767 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.11% | 5 | 1.09% | 1.10% | 1.09% | 1.18% | 1.14% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.64% | 5 | 0.96% | 1.00% | 0.78% | 1.24% | 0.89% | |||||||||||||||||
Portfolio turnover6 |
33.43% | 4 | 68.93% | 96.98% | 78.74% | 83.82% | 66.22% | |||||||||||||||||
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 20161 | 20151 | |||||||||||||||||||
Net Asset Value, beginning of period |
$19.08 | $14.33 | $22.17 | $15.44 | $18.39 | $21.44 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)2 |
0.13 | 0.20 | 0.33 | 0.21 | 0.22 | 0.25 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
2.24 | 4.80 | (4.93 | ) | 8.84 | (1.03 | ) | 0.27 | ||||||||||||||||
Total from investment operations |
2.37 | 5.00 | (4.60 | ) | 9.05 | (0.81 | ) | 0.52 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.25 | ) | (0.33 | ) | (0.40 | ) | (0.28 | ) | (0.24 | ) | |||||||||||||
Net realized gains on investments |
— | — | (2.91 | ) | (1.92 | ) | (1.29 | ) | (3.33 | ) | ||||||||||||||
Return of capital |
— | — | — | — | (0.57 | ) | — | |||||||||||||||||
Total distributions |
— | (0.25 | ) | (3.24 | ) | (2.32 | ) | (2.14 | ) | (3.57 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | 3 | — | 3 | ||||||||||||||||
Net Asset Value, end of period |
$21.45 | $19.08 | $14.33 | $22.17 | $15.44 | $18.39 | ||||||||||||||||||
TOTAL RETURN |
12.42% | 4 | 34.90% | (21.32% | ) | 59.71% | (5.06% | ) | 2.50% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$349,771 | $183,762 | $46,657 | $61,975 | $15,874 | $24,276 | ||||||||||||||||||
Ratio of expenses to average net assets |
0.93% | 5 | 0.91% | 0.91% | 0.93% | 1.03% | 0.99% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.32% | 5 | 1.17% | 1.53% | 0.99% | 1.32% | 1.09% | |||||||||||||||||
Portfolio turnover6 |
33.43% | 4 | 68.93% | 96.98% | 78.74% | 83.82% | 66.22% |
1 | Consolidated Financial Highlights. See Note 2-C. |
2 | Calculated using the average daily shares method. |
3 | Less than $0.01 per share. |
4 | Not annualized. |
5 | Annualized. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
134 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews India Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$23.27 | $26.32 | $34.31 | $25.65 | $26.43 | $26.46 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.01 | (0.01 | ) | (0.05 | ) | (0.09 | ) | 0.01 | (0.05 | ) | ||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(4.51 | ) | (0.24 | ) | (3.60 | ) | 9.24 | (0.33 | ) | 0.26 | ||||||||||||||
Total from investment operations |
(4.50 | ) | (0.25 | ) | (3.65 | ) | 9.15 | (0.32 | ) | 0.21 | ||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | — | — | — | (0.03 | ) | |||||||||||||||||
Net realized gains on investments |
— | (2.80 | ) | (4.34 | ) | (0.49 | ) | (0.46 | ) | (0.23 | ) | |||||||||||||
Total distributions |
— | (2.80 | ) | (4.34 | ) | (0.49 | ) | (0.46 | ) | (0.26 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | 0.02 | ||||||||||||||||||
Net Asset Value, end of period |
$18.77 | $23.27 | $26.32 | $34.31 | $25.65 | $26.43 | ||||||||||||||||||
TOTAL RETURN |
(19.37% | )2 | (0.88% | ) | (10.09% | ) | 35.79% | (1.23% | ) | 0.90% | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$477,579 | $786,881 | $1,077,990 | $1,484,045 | $967,009 | $1,151,948 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.25% | 3 | 1.11% | 1.09% | 1.09% | 1.12% | 1.11% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.15% | 3 | (0.03% | ) | (0.16% | ) | (0.30% | ) | 0.02% | (0.17% | ) | |||||||||||||
Portfolio turnover4 |
29.46% | 2 | 24.00% | 20.87% | 16.81% | 15.76% | 9.51% | |||||||||||||||||
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$23.55 | $26.56 | $34.51 | $25.77 | $26.49 | $26.49 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.04 | 0.02 | 0.01 | (0.03 | ) | 0.04 | 0.01 | |||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
(4.59 | ) | (0.23 | ) | (3.62 | ) | 9.29 | (0.30 | ) | 0.26 | ||||||||||||||
Total from investment operations |
(4.55 | ) | (0.21 | ) | (3.61 | ) | 9.26 | (0.26 | ) | 0.27 | ||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | — | (0.03 | ) | — | (0.06 | ) | ||||||||||||||||
Net realized gains on investments |
— | (2.80 | ) | (4.34 | ) | (0.49 | ) | (0.46 | ) | (0.23 | ) | |||||||||||||
Total distributions |
— | (2.80 | ) | (4.34 | ) | (0.52 | ) | (0.46 | ) | (0.29 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | 0.02 | ||||||||||||||||||
Net Asset Value, end of period |
$19.00 | $23.55 | $26.56 | $34.51 | $25.77 | $26.49 | ||||||||||||||||||
TOTAL RETURN |
(19.32% | )2 | (0.76% | ) | (9.92% | ) | 36.05% | (1.00% | ) | 1.12% | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$74,592 | $177,526 | $463,790 | $788,388 | $551,202 | $353,879 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.10% | 3 | 0.94% | 0.90% | 0.89% | 0.91% | 0.90% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.37% | 3 | 0.09% | 0.02% | (0.08% | ) | 0.16% | 0.02% | ||||||||||||||||
Portfolio turnover4 |
29.46% | 2 | 24.00% | 20.87% | 16.81% | 15.76% | 9.51% |
1 | Calculated using the average daily shares method. |
2 | Not annualized. |
3 | Annualized. |
4 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 135 |
Financial Highlights (continued)
Matthews Japan Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$21.51 | $18.53 | $24.12 | $18.83 | $18.97 | $15.70 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.06 | 0.11 | 0.09 | 0.09 | 0.08 | 0.04 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
(0.05 | ) | 4.73 | (4.91 | ) | 6.13 | (0.01 | ) | 3.23 | |||||||||||||||
Total from investment operations |
0.01 | 4.84 | (4.82 | ) | 6.22 | 0.07 | 3.27 | |||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.12 | ) | (0.06 | ) | (0.20 | ) | (0.16 | ) | — | ||||||||||||||
Net realized gains on investments |
— | (1.74 | ) | (0.71 | ) | (0.73 | ) | (0.05 | ) | — | ||||||||||||||
Total distributions |
— | (1.86 | ) | (0.77 | ) | (0.93 | ) | (0.21 | ) | — | ||||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$21.52 | $21.51 | $18.53 | $24.12 | $18.83 | $18.97 | ||||||||||||||||||
TOTAL RETURN |
0.05% | 3 | 26.08% | (20.18% | ) | 33.14% | 0.40% | 20.83% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$961,996 | $1,466,194 | $1,704,102 | $2,155,280 | $1,685,872 | $1,330,743 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.98% | 4 | 0.93% | 0.91% | 0.95% | 0.98% | 0.99% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.98% | 4 | 0.93% | 0.91% | 0.94% | 0.98% | 0.99% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.63% | 4 | 0.51% | 0.40% | 0.40% | 0.43% | 0.22% | |||||||||||||||||
Portfolio turnover5 |
25.20% | 3 | 25.42% | 46.11% | 44.34% | 55.15% | 24.19% | |||||||||||||||||
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$21.55 | $18.57 | $24.16 | $18.86 | $19.00 | $15.71 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.05 | 0.11 | 0.11 | 0.10 | 0.10 | 0.05 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
(0.04 | ) | 4.74 | (4.91 | ) | 6.14 | — | 2 | 3.24 | |||||||||||||||
Total from investment operations |
0.01 | 4.85 | (4.80 | ) | 6.24 | 0.10 | 3.29 | |||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.13 | ) | (0.08 | ) | (0.21 | ) | (0.19 | ) | — | ||||||||||||||
Net realized gains on investments |
— | (1.74 | ) | (0.71 | ) | (0.73 | ) | (0.05 | ) | — | ||||||||||||||
Total distributions |
— | (1.87 | ) | (0.79 | ) | (0.94 | ) | (0.24 | ) | — | ||||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$21.56 | $21.55 | $18.57 | $24.16 | $18.86 | $19.00 | ||||||||||||||||||
TOTAL RETURN |
0.05% | 3 | 26.10% | (20.08% | ) | 33.23% | 0.51% | 20.94% | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$506,921 | $840,476 | $1,167,472 | $1,957,214 | $1,302,317 | $618,583 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
0.93% | 4 | 0.88% | 0.85% | 0.87% | 0.88% | 0.87% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
0.93% | 4 | 0.88% | 0.84% | 0.86% | 0.88% | 0.87% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.53% | 4 | 0.53% | 0.46% | 0.46% | 0.54% | 0.28% | |||||||||||||||||
Portfolio turnover5 |
25.20% | 3 | 25.42% | 46.11% | 44.34% | 55.15% | 24.19% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
136 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews Korea Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$4.38 | $4.58 | $6.91 | $5.25 | $6.15 | $5.65 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.01 | ) | 0.01 | 0.06 | 0.06 | 0.02 | 0.01 | |||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
(0.17 | ) | 0.16 | (1.61 | ) | 2.22 | (0.41 | ) | 0.83 | |||||||||||||||
Total from investment operations |
(0.18 | ) | 0.17 | (1.55 | ) | 2.28 | (0.39 | ) | 0.84 | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.13 | ) | (0.29 | ) | (0.08 | ) | (0.01 | ) | ||||||||||||||
Net realized gains on investments |
— | (0.37 | ) | (0.65 | ) | (0.33 | ) | (0.43 | ) | (0.33 | ) | |||||||||||||
Total distributions |
— | (0.37 | ) | (0.78 | ) | (0.62 | ) | (0.51 | ) | (0.34 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$4.20 | $4.38 | $4.58 | $6.91 | $5.25 | $6.15 | ||||||||||||||||||
TOTAL RETURN |
(4.11% | )3 | 3.80% | (22.21% | ) | 43.70% | (6.32% | ) | 15.16% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$105,138 | $113,388 | $127,080 | $192,431 | $142,726 | $147,685 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.25% | 4 | 1.15% | 1.14% | 1.15% | 1.15% | 1.10% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.58% | )4 | 0.28% | 1.01% | 0.90% | 0.41% | 0.18% | |||||||||||||||||
Portfolio turnover5 |
13.73% | 3 | 36.63% | 35.60% | 25.37% | 34.73% | 20.36% | |||||||||||||||||
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$4.42 | $4.61 | $6.95 | $5.27 | $6.18 | $5.68 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.02 | ) | 0.01 | 0.04 | 0.10 | (0.02 | ) | 0.02 | ||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
(0.17 | ) | 0.17 | (1.60 | ) | 2.21 | (0.37 | ) | 0.83 | |||||||||||||||
Total from investment operations |
(0.19 | ) | 0.18 | (1.56 | ) | 2.31 | (0.39 | ) | 0.85 | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | — | (0.13 | ) | (0.30 | ) | (0.09 | ) | (0.02 | ) | ||||||||||||||
Net realized gains on investments |
— | (0.37 | ) | (0.65 | ) | (0.33 | ) | (0.43 | ) | (0.33 | ) | |||||||||||||
Total distributions |
— | (0.37 | ) | (0.78 | ) | (0.63 | ) | (0.52 | ) | (0.35 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | — | — | — | — | 2 | |||||||||||||||||
Net Asset Value, end of period |
$4.23 | $4.42 | $4.61 | $6.95 | $5.27 | $6.18 | ||||||||||||||||||
TOTAL RETURN |
(4.30% | )3 | 4.01% | (22.15% | ) | 44.11% | (6.31% | ) | 15.27% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$7,979 | $23,426 | $19,377 | $32,587 | $7,462 | $59,982 | ||||||||||||||||||
Ratio of expenses to average net assets |
1.18% | 4 | 1.05% | 1.02% | 1.01% | 0.97% | 0.93% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.89% | )4 | 0.29% | 0.67% | 1.51% | (0.31% | ) | 0.28% | ||||||||||||||||
Portfolio turnover5 |
13.73% | 3 | 36.63% | 35.60% | 25.37% | 34.73% | 20.36% |
1 | Calculated using the average daily shares method. |
2 | Less than $0.01 per share. |
3 | Not annualized. |
4 | Annualized. |
5 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 137 |
Financial Highlights (continued)
Matthews Asia Small Companies Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$18.10 | $15.50 | $22.89 | $19.05 | $19.41 | $21.46 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
(0.01 | ) | 0.12 | 0.12 | 0.02 | 0.09 | 0.02 | |||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
1.84 | 2.57 | (4.20 | ) | 5.68 | (0.37 | ) | (2.05 | ) | |||||||||||||||
Total from investment operations |
1.83 | 2.69 | (4.08 | ) | 5.70 | (0.28 | ) | (2.03 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.09 | ) | (0.08 | ) | (0.10 | ) | (0.08 | ) | (0.03 | ) | |||||||||||||
Net realized gains on investments |
— | — | (3.23 | ) | (1.76 | ) | — | — | ||||||||||||||||
Total distributions |
— | (0.09 | ) | (3.31 | ) | (1.86 | ) | (0.08 | ) | (0.03 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | 2 | — | 3 | — | 3 | — | 3 | 0.01 | ||||||||||||||
Net Asset Value, end of period |
$19.93 | $18.10 | $15.50 | $22.89 | $19.05 | $19.41 | ||||||||||||||||||
TOTAL RETURN |
10.11% | 4 | 17.38% | (18.05% | ) | 30.59% | (1.44% | ) | (9.43% | ) | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$83,270 | $96,229 | $111,456 | $208,339 | $254,226 | $387,747 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.66% | 5 | 1.60% | 1.51% | 1.49% | 1.49% | 1.48% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.42% | 5 | 1.45% | 1.46% | 1.46% | 1.47% | 1.47% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.08% | )5 | 0.72% | 0.53% | 0.09% | 0.45% | 0.08% | |||||||||||||||||
Portfolio turnover6 |
57.38% | 4 | 59.10% | 69.79% | 67.13% | 44.44% | 48.29% | |||||||||||||||||
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$18.06 | $15.46 | $22.86 | $19.03 | $19.40 | $21.46 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.01 | 0.15 | 0.16 | 0.07 | 0.12 | 0.11 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes |
1.83 | 2.58 | (4.19 | ) | 5.67 | (0.36 | ) | (2.10 | ) | |||||||||||||||
Total from investment operations |
1.84 | 2.73 | (4.03 | ) | 5.74 | (0.24 | ) | (1.99 | ) | |||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.13 | ) | (0.14 | ) | (0.15 | ) | (0.13 | ) | (0.08 | ) | |||||||||||||
Net realized gains on investments |
— | — | (3.23 | ) | (1.76 | ) | — | — | ||||||||||||||||
Total distributions |
— | (0.13 | ) | (3.37 | ) | (1.91 | ) | (0.13 | ) | (0.08 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | — | 2 | — | 3 | — | 3 | — | 3 | 0.01 | ||||||||||||||
Net Asset Value, end of period |
$19.90 | $18.06 | $15.46 | $22.86 | $19.03 | $19.40 | ||||||||||||||||||
TOTAL RETURN |
10.19% | 4 | 17.65% | (17.86% | ) | 30.85% | (1.24% | ) | (9.23% | ) | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$88,420 | $85,006 | $74,935 | $232,954 | $174,962 | $222,168 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.52% | 5 | 1.46% | 1.37% | 1.35% | 1.34% | 1.30% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.20% | 5 | 1.24% | 1.25% | 1.25% | 1.25% | 1.25% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
0.15% | 5 | 0.85% | 0.73% | 0.34% | 0.64% | 0.53% | |||||||||||||||||
Portfolio turnover6 |
57.38% | 4 | 59.10% | 69.79% | 67.13% | 44.44% | 48.29% |
1 | Calculated using the average daily shares method. |
2 | The Fund charged redemption fees through October 31, 2019. |
3 | Less than $0.01 per share. |
4 | Not annualized. |
5 | Annualized. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying notes to financial statements.
138 | MATTHEWS ASIA FUNDS |
Financial Highlights (continued)
Matthews China Small Companies Fund
The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented.
|
Six-Month (unaudited) |
Year Ended Dec. 31 | ||||||||||||||||||||||
INVESTOR CLASS | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net Asset Value, beginning of period |
$12.84 | $9.58 | $11.89 | $8.21 | $8.79 | $9.21 | ||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.09 | 0.14 | 0.09 | 0.07 | 0.10 | 0.08 | ||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
7.31 | 3.24 | (2.23 | ) | 4.27 | (0.28 | ) | 0.27 | ||||||||||||||||
Total from investment operations |
7.40 | 3.38 | (2.14 | ) | 4.34 | (0.18 | ) | 0.35 | ||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.13 | ) | (0.05 | ) | (0.11 | ) | (0.03 | ) | (0.06 | ) | |||||||||||||
Net realized gains on investments |
— | — | (0.16 | ) | (0.56 | ) | (0.37 | ) | (0.72 | ) | ||||||||||||||
Total distributions |
— | (0.13 | ) | (0.21 | ) | (0.67 | ) | (0.40 | ) | (0.78 | ) | |||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | 0.01 | 2 | 0.04 | 0.01 | — | 3 | 0.01 | ||||||||||||||||
Net Asset Value, end of period |
$20.24 | $12.84 | $9.58 | $11.89 | $8.21 | $8.79 | ||||||||||||||||||
TOTAL RETURN |
57.63% | 4 | 35.41% | (17.68% | ) | 53.88% | (2.35% | ) | 4.07% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$213,237 | $63,432 | $41,740 | $35,209 | $16,101 | $21,546 | ||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.43% | 5 | 1.62% | 1.97% | 2.34% | 2.24% | 2.10% | |||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.33% | 5 | 1.42% | 1.50% | 1.50% | 1.50% | 1.50% | |||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.21% | 5 | 1.25% | 0.78% | 0.66% | 1.17% | 0.80% | |||||||||||||||||
Portfolio turnover6 |
37.97% | 4 | 68.17% | 76.67% | 67.22% | 63.15% | 72.49% | |||||||||||||||||
|
Six-Month (unaudited) |
Year Ended Dec. 31 | Period Ended Dec. 31, 20177 |
|
|
|||||||||||||||||||
INSTITUTIONAL CLASS | 2019 | 2018 |
||||||||||||||||||||||
Net Asset Value, beginning of period |
$12.86 | $9.59 | $11.87 | $11.90 | ||||||||||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: |
||||||||||||||||||||||||
Net investment income (loss)1 |
0.11 | 0.15 | 0.11 | (0.01 | ) | |||||||||||||||||||
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions |
7.31 | 3.26 | (2.21 | ) | 0.67 | |||||||||||||||||||
Total from investment operations |
7.42 | 3.41 | (2.10 | ) | 0.66 | |||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||
Net investment income |
— | (0.15 | ) | (0.05 | ) | (0.13 | ) | |||||||||||||||||
Net realized gains on investments |
— | — | (0.16 | ) | (0.56 | ) | ||||||||||||||||||
Total distributions |
— | (0.15 | ) | (0.21 | ) | (0.69 | ) | |||||||||||||||||
Paid-in capital from redemption fees (Note 4) |
— | 0.01 | 2 | 0.03 | — | |||||||||||||||||||
Net Asset Value, end of period |
$20.28 | $12.86 | $9.59 | $11.87 | ||||||||||||||||||||
TOTAL RETURN |
57.70% | 4 | 35.68% | (17.48% | ) | 6.19% | 4 | |||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||
Net assets, end of period (in 000’s) |
$160,469 | $32,376 | $20,740 | $476 | ||||||||||||||||||||
Ratio of expenses to average net assets before any reimbursement, waiver or recapture of expenses by Advisor and Administrator (Note 5) |
1.33% | 5 | 1.51% | 1.79% | 2.09% | 5 | ||||||||||||||||||
Ratio of expenses to average net assets after any reimbursement, waiver or recapture of expenses by Advisor and Administrator |
1.20% | 5 | 1.24% | 1.25% | 1.25% | 5 | ||||||||||||||||||
Ratio of net investment income (loss) to average net assets |
1.34% | 5 | 1.34% | 1.05% | (1.20% | )5 | ||||||||||||||||||
Portfolio turnover6 |
37.97% | 4 | 68.17% | 76.67% | 67.22% | 4 |
1 | Calculated using the average daily shares method. |
2 | The Fund charged redemption fees through October 31, 2019. |
3 | Less than $0.01 per share. |
4 | Not annualized. |
5 | Annualized. |
6 | The portfolio turnover rate is calculated on the Fund as a whole without distinguishing between classes of shares issued. |
7 | Commenced operations on November 30, 2017. |
See accompanying notes to financial statements.
matthewsasia.com | 800.789.ASIA | 139 |
Notes to Financial Statements (unaudited)
1. | ORGANIZATION |
Matthews Asia Funds (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently issues eighteen separate series of shares (each a “Fund”, and collectively, the “Funds”): Matthews Emerging Markets Equity Fund, Matthews Asia Total Return Bond Fund, Matthews Asia Credit Opportunities Fund, Matthews Asian Growth and Income Fund, Matthews Asia Dividend Fund, Matthews China Dividend Fund, Matthews Asia Value Fund, Matthews Asia Growth Fund, Matthews Pacific Tiger Fund, Matthews Asia ESG Fund, Matthews Emerging Asia Fund, Matthews Asia Innovators Fund, Matthews China Fund, Matthews India Fund, Matthews Japan Fund, Matthews Korea Fund, Matthews Asia Small Companies Fund, and Matthews China Small Companies Fund. The Matthews Emerging Markets Equity Fund commenced investment operations on April 30, 2020. Each Fund currently offers two classes of shares: Investor Class and Institutional Class. Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except each class may be subject to different class expenses as outlined in the relevant prospectus and each class has exclusive voting rights with respect to matters solely affecting such class.
2. | SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Funds in preparation of their financial statements. Each Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
A. | SECURITY VALUATION: The value of the Trust’s securities is based on market quotations for those securities, or on their fair value determined by the valuation policies approved by the Funds’ Board of Trustees (the “Board”). Market quotations and valuation information are provided by commercial pricing services or securities dealers that are independent of the Funds and Matthews International Capital Management, LLC (“Matthews”), in accordance with procedures established by the Funds’ Board. Foreign exchange-traded securities are valued as of the close of trading on the primary exchange on which they trade. Securities that trade in over-the-counter markets, including most debt securities (bonds), may be valued by other third-party vendors or by using indicative bid quotations from dealers or market makers, or other available market information. Market values for securities are determined based on quotations, market data or other information from the principal (or most advantageous) market on which the security is traded. Market quotations for equity securities used by the Funds include last reported sale prices, or, if such prices are not reported or available, bid and ask prices. Swap agreements are valued utilizing quotes received daily by the Funds’ pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined at the close of business on the New York Stock Exchange (“NYSE”). Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. The Funds may also utilize independent pricing services to assist them in determining a current market value for each security based on sources believed to be reliable. |
The Board has delegated to the Board’s Valuation Committee the responsibility for oversight of the fair valuation process under the Trust’s Pricing and Valuation Policy. The Board’s Valuation Committee, in turn, has delegated the determination of fair value prices under Matthews’ Pricing and Valuation Procedures to Matthews’ Valuation Committee (the “Valuation Committee”). The Board’s Valuation Committee will review and approve fair value determinations by Matthews’ Valuation Committee in accordance with the Pricing and Valuation Policy. When fair value pricing is employed, the prices of securities used by a Fund to calculate its Net Asset Value (“NAV”) may differ from any quoted or published prices for the same securities for that day. All fair value determinations are made subject to the Board’s oversight. Events affecting the value of foreign investments may occur between the time at which they are determined and when the Funds calculate their NAV, which is normally the close of trading on the NYSE. If such events render market quotations unreliable, and the impact of such events can be reasonably determined, the investments will be valued at their fair value in accordance with pricing policies. The fair value of a security held by the Funds may be determined using the services of third-party pricing services to assist in this process.
The books and records of the Funds are maintained in U.S. dollars. Transactions, portfolio securities, and assets and liabilities denominated in a foreign currency are translated and recorded in U.S. dollars at the prevailing exchange rate as of the close of trading on the NYSE. The Fund does not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within “Net change in unrealized appreciation/depreciation on investments” on the Statements of Operations. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Funds isolate that portion of gains and losses on investments in fixed income securities that is due to changes in foreign exchange rate from that which is due to changes in market prices of securities.
Foreign securities held by the Funds may be traded on days and at times when the NYSE is closed. Accordingly, the value of the Funds may be significantly affected on days when shareholders have no access to the Funds.
B. | FAIR VALUE MEASUREMENTS: The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy: |
Level 1: Quoted prices in active markets for identical securities (foreign securities that are valued based on market quotations).
Level 2: Other significant observable inputs. Certain foreign securities may be fair valued by Matthews using information such as quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and foreign exchange. Additionally, external pricing services are used when the Funds determine that events affecting the value of foreign securities which occur between the time at which they are determined and the close of trading on the NYSE render market quotations unreliable.
Level 3: Significant unobservable inputs. As described in Note 2-A, Level 3 securities are valued based on significant unobservable inputs as determined under the direction of the Board. Characterization of such securities as Level 3 securities are not necessarily an indication of their liquidity or the risk associated with investing in these securities. A significant change in the unobservable inputs could result in a significantly lower or higher value in such Level 3 securities and could impact overall Fund performance. Level 3 securities consisted of equities that, as of June 30, 2020, were suspended from trading.
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
140 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
Levels for Multi-Country Funds (1 of 2):
Summary of inputs used to determine the fair valuation of multi-country Funds’ investments as of June 30, 2020.
Matthews Emerging Markets Equity Fund |
Matthews Asia Total Return Bond Fund |
Matthews Asia Credit Opportunities Fund |
Matthews Asian Growth and Income Fund |
Matthews Asia Dividend Fund |
Matthews Asia Value Fund |
Matthews Asia Growth Fund |
||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||
Level 1: Quoted Prices |
||||||||||||||||||||||||||||
Common Equities: |
||||||||||||||||||||||||||||
Argentina |
$149,850 | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Brazil |
617,035 | — | — | — | — | — | — | |||||||||||||||||||||
Canada |
— | — | — | — | — | — | 4,678,279 | |||||||||||||||||||||
China/Hong Kong |
936,492 | — | — | 55,679,991 | — | 775,965 | 225,451,759 | |||||||||||||||||||||
India |
215,124 | — | — | — | — | — | — | |||||||||||||||||||||
Mexico |
356,329 | — | — | — | — | — | — | |||||||||||||||||||||
Russia |
155,062 | — | — | — | — | — | — | |||||||||||||||||||||
Singapore |
107,240 | — | — | — | — | — | — | |||||||||||||||||||||
Switzerland |
— | — | — | — | — | — | 11,210,995 | |||||||||||||||||||||
Taiwan |
420,098 | — | — | — | 68,699,648 | — | — | |||||||||||||||||||||
United States |
116,926 | — | — | 22,282,066 | — | — | 88,525,220 | |||||||||||||||||||||
Zambia |
99,624 | — | — | — | — | — | — | |||||||||||||||||||||
Level 2: Other Significant Observable Inputs |
||||||||||||||||||||||||||||
Foreign Government Obligationsa |
— | 23,736,616 | 5,680,390 | — | — | — | — | |||||||||||||||||||||
Non-Convertible Corporate Bondsa |
— | 62,350,161 | 71,577,086 | — | — | — | — | |||||||||||||||||||||
Convertible Corporate Bondsa |
— | 11,714,662 | 10,747,116 | 102,696,018 | — | — | — | |||||||||||||||||||||
Common Equities: |
||||||||||||||||||||||||||||
Australia |
— | — | — | 16,363,176 | 238,097,556 | — | 44,286,288 | |||||||||||||||||||||
Bangladesh |
— | — | — | — | 45,173,878 | — | 21,449,787 | |||||||||||||||||||||
Brazil |
37,982 | — | — | — | — | — | — | |||||||||||||||||||||
China/Hong Kong |
2,021,402 | — | — | 432,865,200 | 1,357,188,493 | 2,053,564 | 301,189,884 | |||||||||||||||||||||
France |
351,417 | — | — | 39,888,914 | — | — | — | |||||||||||||||||||||
India |
493,625 | — | — | 80,914,436 | 62,849,455 | 1,016,663 | 39,879,046 | |||||||||||||||||||||
Indonesia |
147,404 | — | — | 34,567,717 | — | — | 52,545,542 | |||||||||||||||||||||
Japan |
— | — | — | 18,645,233 | 1,221,066,376 | 1,093,216 | 440,564,829 | |||||||||||||||||||||
Philippines |
274,147 | — | — | 17,746,490 | 77,816,261 | — | — | |||||||||||||||||||||
Poland |
186,318 | — | — | — | — | — | — | |||||||||||||||||||||
Russia |
489,772 | — | — | — | — | — | — | |||||||||||||||||||||
Singapore |
173,871 | — | — | 108,155,335 | 288,130,124 | 890,341 | — | |||||||||||||||||||||
South Korea |
572,349 | — | — | 97,486,937 | 147,306,925 | 1,860,017 | — | |||||||||||||||||||||
Sri Lanka |
— | — | — | — | — | — | 8,953,965 | |||||||||||||||||||||
Switzerland |
— | — | — | — | — | 598,757 | — | |||||||||||||||||||||
Taiwan |
120,765 | — | — | 105,668,687 | 71,516,179 | 218,643 | — | |||||||||||||||||||||
Thailand |
— | — | — | 12,539,899 | 60,106,538 | — | — | |||||||||||||||||||||
United Kingdom |
159,174 | — | — | 16,953,010 | — | — | — | |||||||||||||||||||||
Vietnam |
91,213 | — | — | 17,578,658 | — | — | 15,234,729 | |||||||||||||||||||||
Preferred Equities: |
||||||||||||||||||||||||||||
South Korea |
334,773 | — | — | 24,863,573 | 182,284,249 | 1,078,535 | — | |||||||||||||||||||||
Level 3: Significant Unobservable Inputs |
||||||||||||||||||||||||||||
Non-Convertible Corporate Bondsa |
— | 256,695 | — | — | — | — | — | |||||||||||||||||||||
Total Market Value of Investments |
$8,627,992 | $98,058,134 | $88,004,592 | $1,204,895,340 | $3,820,235,682 | $9,585,701 | $1,253,970,323 |
a | Industry, countries, or security types are disclosed on the Schedule of Investments. |
matthewsasia.com | 800.789.ASIA | 141 |
Notes to Financial Statements (unaudited) (continued)
Levels for Multi-Country Funds (2 of 2):
Summary of inputs used to determine the fair valuation of multi-country Funds’ investments as of June 30, 2020.
Matthews Pacific Tiger Fund |
Matthews Asia ESG Fund |
Matthews Emerging Asia Fund |
Matthews Asia Innovators Fund |
Matthews Asia Small Companies Fund |
||||||||||||||||
Assets: | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Level 1: Quoted Prices |
||||||||||||||||||||
Common Equities: |
||||||||||||||||||||
China/Hong Kong |
$294,144,308 | $2,704,663 | $— | $117,395,074 | $8,147,223 | |||||||||||||||
India |
— | — | — | — | 1,435,722 | |||||||||||||||
Pakistan |
— | 37,316 | 12,581,329 | — | — | |||||||||||||||
Singapore |
— | — | — | 41,973,736 | — | |||||||||||||||
South Korea |
3,808,219 | 154,962 | — | — | 141,519 | |||||||||||||||
Sri Lanka |
— | — | 2,634,744 | — | — | |||||||||||||||
United States |
— | 3,457,242 | — | 10,931,579 | 2,922,127 | |||||||||||||||
Vietnam |
— | — | 2,704,558 | — | — | |||||||||||||||
Level 2: Other Significant Observable Inputs |
||||||||||||||||||||
Common Equities: |
||||||||||||||||||||
Australia |
— | — | 2,846,282 | — | — | |||||||||||||||
Bangladesh |
— | 1,952,609 | 17,281,072 | — | — | |||||||||||||||
China/Hong Kong |
3,297,509,782 | 16,880,300 | — | 412,283,096 | 81,746,834 | |||||||||||||||
France |
— | — | — | 22,730,716 | — | |||||||||||||||
India |
670,065,262 | 9,085,424 | 4,635,710 | 63,067,119 | 12,547,463 | |||||||||||||||
Indonesia |
374,351,094 | 1,347,169 | 26,314,380 | — | 1,415,836 | |||||||||||||||
Japan |
— | 4,195,973 | — | — | — | |||||||||||||||
Malaysia |
65,453,140 | — | — | — | — | |||||||||||||||
Pakistan |
— | — | 10,366,436 | — | — | |||||||||||||||
Philippines |
161,224,104 | 938,697 | 12,655,385 | — | 2,746,012 | |||||||||||||||
Singapore |
— | 982,199 | 2,184,284 | 12,175,190 | — | |||||||||||||||
South Korea |
759,534,413 | 644,492 | — | 98,902,714 | 15,368,680 | |||||||||||||||
Sri Lanka |
— | — | 15,258,999 | — | — | |||||||||||||||
Switzerland |
97,249,858 | — | — | — | — | |||||||||||||||
Taiwan |
641,870,842 | 5,940,265 | — | 12,870,679 | 27,523,596 | |||||||||||||||
Thailand |
89,828,984 | 1,287,867 | 8,101,241 | — | 3,600,254 | |||||||||||||||
Vietnam |
92,139,847 | 489,361 | 27,821,696 | 3,683,897 | 4,463,340 | |||||||||||||||
Preferred Equities: |
||||||||||||||||||||
South Korea |
— | 4,318,511 | — | — | — | |||||||||||||||
Level 3: Significant Unobservable Inputs |
||||||||||||||||||||
Common Equities: |
||||||||||||||||||||
Bangladesh |
— | — | 6,380,020 | — | — | |||||||||||||||
Total Market Value of Investments |
$6,547,179,853 | $54,417,050 | $151,766,136 | $796,013,800 | $162,058,606 |
142 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
Levels for Single Country Funds:
Summary of inputs used to determine the fair valuation of the single country Funds’ investments as of June 30, 2020.
Matthews China Dividend Fund |
Matthews China Fund |
Matthews India Fund |
Matthews Japan Fund |
Matthews Korea Fund |
Matthews China Small Companies Fund |
|||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||
Level 1: Quoted Prices |
||||||||||||||||||||||||
Common Equities: |
||||||||||||||||||||||||
Communication Services |
$8,931,104 | $25,015,098 | $— | $— | $— | $6,285,624 | ||||||||||||||||||
Consumer Discretionary |
5,455,303 | 79,732,181 | — | — | — | — | ||||||||||||||||||
Energy |
— | — | 1,503,702 | — | — | — | ||||||||||||||||||
Health Care |
1,693,264 | — | — | — | 190,158 | 34,785,804 | ||||||||||||||||||
Level 2: Other Significant Observable Inputs |
||||||||||||||||||||||||
Common Equities: |
||||||||||||||||||||||||
Communication Services |
49,814,769 | 141,125,196 | 42,056,098 | 141,251,244 | 15,627,825 | 2,284,769 | ||||||||||||||||||
Consumer Discretionary |
59,311,865 | 203,069,629 | 43,017,958 | 218,499,966 | 9,763,688 | 39,993,416 | ||||||||||||||||||
Consumer Staples |
39,373,377 | 43,364,307 | 79,057,986 | 22,140,831 | 12,643,683 | 49,432,981 | ||||||||||||||||||
Energy |
13,227,514 | — | 48,568,066 | — | — | — | ||||||||||||||||||
Financials |
22,277,973 | 271,716,988 | 173,480,037 | 77,243,924 | 8,327,739 | — | ||||||||||||||||||
Health Care |
22,028,881 | 79,995,320 | 38,321,380 | 280,880,585 | 7,748,091 | 72,693,796 | ||||||||||||||||||
Industrials |
27,237,183 | 16,164,325 | 23,999,051 | 207,072,618 | 1,084,311 | 35,235,664 | ||||||||||||||||||
Information Technology |
31,932,114 | 84,463,176 | 72,925,351 | 396,691,432 | 21,119,058 | 83,529,242 | ||||||||||||||||||
Materials |
12,390,215 | 21,493,245 | 10,333,277 | 49,268,367 | — | 5,264,686 | ||||||||||||||||||
Real Estate |
19,557,663 | 66,546,753 | — | — | 1,462,296 | 27,080,514 | ||||||||||||||||||
Utilities |
— | 9,931,998 | — | — | — | — | ||||||||||||||||||
Preferred Equities: |
||||||||||||||||||||||||
Consumer Discretionary |
— | — | — | — | 4,012,876 | — | ||||||||||||||||||
Consumer Staples |
— | — | — | — | 6,498,405 | — | ||||||||||||||||||
Energy |
— | — | — | — | 1,253,389 | — | ||||||||||||||||||
Information Technology |
— | — | — | — | 17,624,602 | — | ||||||||||||||||||
Materials |
— | — | — | — | 4,048,024 | — | ||||||||||||||||||
Level 3: Significant Unobservable Inputs |
||||||||||||||||||||||||
Common Equities: |
||||||||||||||||||||||||
Information Technology |
— | — | — | — | — | 252 | ||||||||||||||||||
Total Market Value of Investments |
$313,231,225 | $1,042,618,216 | $533,262,906 | $1,393,048,967 | $111,404,145 | $356,586,748 |
Levels for Derivatives Financial Instruments:
Summary of inputs used to determine the fair valuation of the Funds’ derivative financial instruments as of June 30, 2020.
Matthews Asia Total Return Bond Fund |
||||
Derivative Financial Instruments1 |
||||
Assets |
||||
Level 2: Other Significant Observable Inputs | ||||
Forward Foreign Currency Exchange Contracts |
$3,528 | |||
Interest Rate Swaps |
628,819 | |||
|
|
|||
$632,347 | ||||
|
|
|||
Liabilities |
||||
Level 2: Other Significant Observable Inputs | ||||
Forward Foreign Currency Exchange Contracts |
($774,274) | |||
|
|
1 | Derivative financial instruments are forward foreign currency exchange contracts and interest rate swaps. Forward foreign currency exchange contracts and interest rate swaps are valued at the unrealized appreciation/depreciation on the instrument. |
matthewsasia.com | 800.789.ASIA | 143 |
Notes to Financial Statements (unaudited) (continued)
Changes in the Balances of Level 3 Securities:
The Funds’ policy is to recognize transfers in and transfers out of Level 3 during the reporting period.
Matthews Asia Total Return Bond Fund |
Matthews Fund |
Matthews China Fund |
||||||||||
Non-Convertible Corporate Bonds — China/Hong Kong |
Common Equities — Bangladesh |
Common Equities — Information Technology |
||||||||||
Balance as of 12/31/19 (market value) | $ | — | $ | — | $ | 250 | ||||||
Accrued discounts/premiums | 1,471 | — | — | |||||||||
Realized gain/(loss) | — | (33,526 | ) | — | ||||||||
Change in unrealized appreciation/(depreciation) | (6,388 | ) | (928,957 | ) | 2 | |||||||
Purchases | — | — | — | |||||||||
Sales | — | (1,392,736 | ) | — | ||||||||
Transfers in to Level 3* | 261,612 | 8,735,239 | — | |||||||||
Transfer out of Level 3* | — | — | — | |||||||||
Balance as of 6/30/20 (market value) | $ | 256,695 | $ | 6,380,020 | $ | 252 | ||||||
Net change in unrealized appreciation/depreciation on Level 3 investments held as of 6/30/20** |
($ | 6,388 | ) | ($ | 928,957 | ) | $ | 2 |
* | The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. |
** | Included in the related amounts on the Statements of Operations. |
During the six-month period ended June 30, 2020, transfers into Level 3 resulted from a lack of observable market data for a security and its price as of the reporting date was determined by the Valuation Committee. The following table summarizes the valuation techniques used and unobservable inputs developed by the Valuation Committee to determine the fair value of certain, material Level 3 investments:
Value | Valuation Technique |
Unobservable Input1 | Unobservable Input— Proxy Factor |
|||||||||
Matthews Emerging Asia Fund Assets: | ||||||||||||
Common Equity—Bangladesh |
$6,380,020 | Market transactions | Point in most recent block trading range | BDT 839.6 - BDT 890.0 |
1 | Increase in unobservable input may result in a significant increase to value, while a decrease in unobservable input may result in a significant decrease to value. |
BDT | Bangladeshi Taka |
C. | BASIS OF CONSOLIDATION: The accompanying consolidated financial highlights of Matthews China Fund and Matthews Asia Dividend Fund (the “Investing Funds”) for the 2015-2016 period include the accounts of the Matthews CF-U Series and Matthews ADF-U Series (the “U Series Funds”), respectively. The U Series Funds were series of Matthews A Share Selections Fund, LLC, a Delaware limited liability company registered under the 1940 Act. All of the interests offered by U Series Funds were exclusively owned by the Investing Funds. The U Series Funds primarily invested in the stocks of Chinese companies listed on Mainland China Stock Exchanges, and traded and denominated in the currency of China, the Renminbi. To allow U Series Funds to invest in China A Shares Matthews applied for and received a license from the China Securities Regulatory Commission as a Qualified Foreign Institutional Investor (“QFII”) and had been allocated by the State Administration of Foreign Exchange of China an initial quota of $100 million in June 2014, and an additional quota of $440 million in July 2015, representing the equivalent value in Renminbi of China A Shares that the Funds could purchase. Access to the quota was subject to Matthews’ trade allocation procedures and access allocation procedures. The U |
Series Funds were subject to the same investment policies and restrictions that apply to Investing Funds. Intercompany accounts and transactions had been eliminated in the consolidation process. The U Series Funds were intended to be disregarded entities for tax purposes. Therefore, no federal tax provisions were required. Consolidated financial statements included expenses that were accrued for and paid by the Investing Funds. These included on-going operational costs as well as costs in connection with the launching of the U Series Funds.
In September 2016, the Board of Directors of the Matthews A Share Selections Fund, LLC adopted resolutions authorizing the termination and liquidation of the Matthews A Share Selections Fund, LLC. Consequently, as of September 30, 2016, the U Series Funds sold their securities and effectively ceased investment operations. The outstanding interests of each U Series Fund were redeemed by its respective Investing Fund. The Matthews A Share Selections Fund, LLC filed an initial application for deregistration as a registered investment company with the U.S. Securities and Exchange Commission in October 2016, which was subsequently granted in February 2017.
D. | RISKS ASSOCIATED WITH NON-U.S. COMPANIES: Investments by the Funds in the securities of non-U.S. companies may involve investment risks not typically associated with investments in U.S. issuers. These risks include possible political, economic, social and religious instability, inadequate investor protection; changes in laws or regulations of countries within the Asia Pacific region (including in countries where the Funds may invest, as well as in the broader region); international relations with other nations; natural disasters; corruption; and military activity. Foreign securities may be subject to greater fluctuations in price than securities of domestic corporations or the U.S. government. Foreign investing may also include the risk of expropriation or confiscatory taxation, limitation on the removal of funds or other assets, currency crises and exchange controls, the imposition of foreign withholding tax on the interest income payable on such instruments, the possible seizure or nationalization of foreign deposits or assets, or the adoption of other foreign government restrictions that might adversely affect the foreign securities held by the Funds. Additionally, Asia Pacific countries may utilize formal or informal currency exchange controls or “capital controls” that may limit the ability to repatriate investments or income or adversely affect the value of portfolio investments. The economies of many Asia Pacific countries differ from the economies of more developed countries in many respects, such as their rate of growth, inflation, capital reinvestment, resource self-sufficiency and dependence on other economies, financial system stability, the national balance of payments position and sensitivity to changes in global trade. |
144 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
Certain Asia Pacific countries are highly dependent upon and may be affected by developments in the economies of other countries. Non-U.S. companies are subject to different accounting, auditing, and financial reporting standards, practices, and requirements than U.S. companies. There is generally less government regulation of stock exchanges, brokers, and listed companies abroad than in the United States, which may result in less transparency with respect to a company’s operations, and make obtaining information about them more difficult (or such information may be unavailable).
Among other risks of investing in foreign markets are the variable quality and reliability of financial information and related audits of companies. In some cases, financial information and related audits can be unreliable and not subject to verification. Auditing firms in some of these markets are not subject to independent inspection or oversight of audit quality. For example, China does not allow the Public Company Accounting Oversight Board to inspect the work that auditors perform in China for Chinese companies that sell stock into U.S. markets. This can result in investment decisions being made based on flawed or misleading information.
Foreign stock markets may not be as developed or efficient as those in the United States, and the absence of negotiated brokerage commissions in certain countries may result in higher brokerage fees. The time between the trade and settlement dates of securities transactions on foreign exchanges ranges from one day to four weeks or longer and may result in higher custody charges. Custodial arrangements may be less well developed than in the United States. Foreign securities are generally denominated and pay distributions in foreign currencies, exposing the Funds to changes in foreign currency exchange rates. Investing in any country in the Asia Pacific region will also entail risks specific and unique to that country, and these risks can be significant and change rapidly.
Changes in interest rates in each of the countries in which the Funds may invest, as well as interest rates in more-developed countries, may cause a decline in the market value of an investment. Generally, fixed income securities will decrease in value when interest rates rise and can be expected to rise in value when interest rates decline. As interest rates decline, debt issuers may repay or refinance their loans or obligations earlier than anticipated. The issuers of fixed income securities may, therefore, repay principal in advance. This would force the Funds to reinvest the proceeds from the principal prepayments at lower rates, which reduces the Funds’ income.
E. | DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Matthews Asian Growth and Income Fund and the Matthews China Dividend Fund to distribute net investment income on a semi-annual basis and capital gains, if any, annually. It is the policy of the Matthews Asia Dividend Fund to distribute net investment income on a quarterly basis and capital gains, if any, annually. It is the policy of the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund to distribute net investment income on a monthly basis and capital gains, if any, annually. Each of the other Funds distributes a net investment income and capital gains, if any, annually. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. |
The tax character of distributions paid for the fiscal year ended December 31, 2019 was as follows:
YEAR ENDED DECEMBER 31, 2019 | Ordinary Income |
Net Long-Term Capital Gains |
Total Taxable Distributions |
|||||||||
Matthews Asia Total Return Bond Fund | $4,702,646 | $— | $4,702,646 | |||||||||
Matthews Asia Credit Opportunities Fund | 2,963,829 | 42,003 | 3,005,832 | |||||||||
Matthews Asian Growth and Income Fund | 35,418,572 | 22,400,844 | 57,819,416 | |||||||||
Matthews Asia Dividend Fund | 124,516,990 | — | 124,516,990 | |||||||||
Matthews China Dividend Fund | 6,111,641 | — | 6,111,641 | |||||||||
Matthews Asia Value Fund | 1,184,154 | — | 1,184,154 | |||||||||
Matthews Asia Growth Fund | 373,187 | 12,060,061 | 12,433,248 | |||||||||
Matthews Pacific Tiger Fund | 59,773,643 | 269,683,012 | 329,456,655 | |||||||||
Matthews Asia ESG Fund | 204,697 | 588,349 | 793,046 | |||||||||
Matthews Emerging Asia Fund | 244 | 8,355,290 | 8,355,534 | |||||||||
Matthews Asia Innovators Fund | — | 976,006 | 976,006 | |||||||||
Matthews China Fund | 10,400,822 | — | 10,400,822 | |||||||||
Matthews India Fund | 1,864,672 | 115,678,091 | 117,542,763 | |||||||||
Matthews Japan Fund | 14,895,033 | 190,758,914 | 205,653,947 | |||||||||
Matthews Korea Fund | 133 | 10,920,522 | 10,920,655 | |||||||||
Matthews Asia Small Companies Fund | 1,036,516 | 79,318 | 1,115,834 | |||||||||
Matthews China Small Companies Fund | 1,012,660 | — | 1,012,660 |
F. | INVESTMENT TRANSACTIONS AND INCOME: Securities transactions are accounted for on the date the securities are purchased or sold or on the following business day. Financial statements reflect security transactions on trade date. Gains or losses on the sale of securities are determined on the identified cost basis. Interest income is recorded on the accrual basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. For convertible securities, premiums attributable to the conversion feature are not amortized. Dividend income is generally recorded on the ex-dividend date net of any foreign taxes withheld at the source. Dividend income for certain issuers headquartered in countries which the Funds invest may not be recorded until approved by the shareholders (which may occur after the ex-dividend date) if, in the judgment of management, such dividends are not reasonably determined as of the ex-dividend date. Income and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets. |
The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which they invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that may be payable if the securities were disposed of on the valuation date.
G. | FUND EXPENSE ALLOCATIONS: The Funds account separately for the assets, liabilities and operations of each Fund. Estimated expenses are accrued daily. Direct expenses of each Fund or class are charged to that Fund or class while general expenses are allocated pro-rata among the Funds based on net assets or other appropriate methods. |
matthewsasia.com | 800.789.ASIA | 145 |
Notes to Financial Statements (unaudited) (continued)
H. | CASH, CASH OVERDRAFTS, AND FOREIGN CURRENCY: QFII accounts (i.e., the accounts through which the QFII quota is accessed) are required by the local market to maintain a cash reserve. The cash reserve is based upon a fixed ratio of the QFII’s approved investment quota, which is defined as the amount remitted into its special Renminbi (RMB) cash account. These amounts, if any, are included in “Segregated foreign currency at value” on the Statements of Assets and Liabilities. The fixed ratio is set at 0.08 percent for the Shanghai and 0.06 percent for the Shenzhen market. When any of the Funds’ cash balances are overdrawn, a Fund is charged an overdraft fee by the custodian of 1.00% above the 30-day LIBOR rate on outstanding balances. These amounts, if any, are included in “Other expenses” on the Statements of Operations. |
I. | USE OF ESTIMATES: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. |
J. | RECENT ACCOUNTING GUIDANCE: In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying this ASU. |
3. | DERIVATIVE FINANCIAL INSTRUMENTS |
Each of the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund engages in derivative transactions for a variety of purposes, including managing interest rate, currency and credit exposure. Derivative transactions in which each Fund may engage include financial futures contracts, swaps and/or forward foreign currency exchange contracts.
Certain derivative transactions may result in each Fund’s exposure to a currency to exceed the value of the Fund’s assets and the Fund could be exposed to currency risk whether or not it holds a bond or other instrument denominated in that currency. The gross notional value of derivative financial instruments and transactions could exceed the value of the Fund’s net assets, although the net market value of these instruments and transactions, on a marked-to-market basis, at most times, is expected to be substantially lower.
The primary risks associated with the use of derivative financial instruments are: (i) Matthews may not correctly predict the direction of currency exchange rates, interest rates, security prices, or other economic factors; (ii) Matthews may not correctly predict changes in the value of derivative financial instruments and related underlying instruments or assets, which may result in disproportionately increased losses and/or reduced opportunities for gains; (iii) imperfect correlation between the change in market value of the securities held by a Fund and the price of financial futures contracts and credit default swaps contracts; (iv) the lack of, or a reduction in the liquidity of, any secondary market for the instrument, and the resulting inability to close the position (or exit the position) when desired; (v) losses, which are potentially unlimited, due to unanticipated market movements; (vi) the value of the instrument may change unfavorably due to movements in the value of the referenced foreign currencies; (vii) a Fund may suffer disproportionately heavy losses relative to the amount invested; (viii) changes in the value of the derivatives may not match or fully offset changes in the value of hedged or related portfolio securities, thereby failing to achieve the hedging or investment purpose for the derivative transaction; and (ix) the other party to the instrument may fail to fulfill its obligation.
Forward Foreign Currency Exchange Contracts: The Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund enter into forward foreign currency exchange contracts to gain or reduce exposure to foreign currency exchange rate risk. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund do not offset financial assets and financial liabilities on forward foreign currency contacts in the Statements of Assets and Liabilities as they are not subject to netting arrangements.
Swaps: The Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund enter into swap contracts to manage exposure to issuers, markets and securities to reduce their risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk). Such contracts are agreements between the Funds and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC Swaps”) or centrally cleared (“centrally cleared swaps”).
For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statements of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statements of Assets and Liabilities. Payments received or paid are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contract is the amortized premium received or paid.
The Funds may buy credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Funds will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
The Funds may enter into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).
Interest rate swaps are agreements to exchange cash flows based on the difference between specified interest rates applied to a notional principal
amount for a specified period of time. Risks related to the use of interest rate swaps include the potential for unanticipated movements in interest or currency rates, the possible failure of a counterparty to perform in accordance with the terms of the swap agreements and potential government regulation that could adversely affect the Funds’ swap investments.
Counterparty Credit Risk: A derivative contract may suffer a mark to market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
A Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Fund.
146 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
With exchange traded futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
In order to better define its contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between each Fund and a counterparty that governs OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
Collateral requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by a Fund and the counterparty. Cash collateral that has been pledged to cover obligations of a Fund, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral. Non-cash collateral pledged by a Fund, if any, is noted in the Schedules of Investments.
For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
As of June 30, 2020, the Matthews Asia Total Return Bond Fund had $628,819 in gross/net assets in the Statements of Assets and Liabilities for OTC Interest Rate Swaps and gross assets of $3,528 and net liabilities of $562,497 for the Forward foreign currency exchange contracts with Bank of America, N.A. The Fund had gross/net liabilities with JPMorgan Chase & Co. of $211,777 for the Forward foreign currency exchange contracts. The Fund pledged cash collateral of $180,000 to Bank of America, N.A. for the open OTC Interest Rate Swaps and Forward foreign currency exchange contracts and pledged $340,000 to JPMorgan Chase & Co. for the open Forward foreign currency exchange contracts.
Levels for Derivative Financial Instruments:
Summary of inputs used to determine the fair valuation of the Funds’ derivatives financial instruments as of June 30, 2020.
Statements of Assets and Liabilities Location | Matthews Asia Total Return Bond Fund |
|||||||||
Asset Derivatives | ||||||||||
Unrealized appreciation on forward foreign | ||||||||||
Forward foreign currency exchange contracts | currency exchange contracts | $3,528 | ||||||||
Interest rate contracts | Unrealized appreciation on Swaps | 628,819 | ||||||||
|
|
|||||||||
Total | $632,347 | |||||||||
|
|
|||||||||
Liability Derivatives | ||||||||||
Unrealized depreciation on forward foreign | ||||||||||
Forward foreign currency exchange contracts | currency exchange contracts | ($774,274 | ) | |||||||
|
|
For the six-month period ended June 30, 2020, the effects of derivative financial instruments on the Statements of Operations were as follows:
Derivative type | Statements of Operations Location | Matthews Asia Total Return Bond Fund |
||||
Net Realized Gain (Loss) |
||||||
Foreign currency contracts: | ||||||
Forward foreign currency exchange contracts |
Net realized gain (loss) on forward foreign | |||||
currency exchange contracts | ($56,573 | ) | ||||
Interest rate swaps: | ||||||
Interest rate contracts |
Net realized gain (loss) on swaps | 21,732 | ||||
|
|
|||||
Total | ($34,841 | ) | ||||
|
|
|||||
Net Change In Unrealized Appreciation (Depreciation) |
||||||
Foreign currency contracts: | ||||||
Forward foreign currency exchange contracts |
Net change in unrealized appreciation/ | |||||
depreciation on forward foreign currency | ||||||
exchange contracts | ($909,133 | ) | ||||
Interest rate swaps: | ||||||
Interest rate contracts |
Net change in unrealized appreciation/ | |||||
depreciation on swaps | 460,955 | |||||
|
|
|||||
Total | ($448,178 | ) | ||||
|
|
matthewsasia.com | 800.789.ASIA | 147 |
Notes to Financial Statements (unaudited) (continued)
In regards to the forward foreign currency exchange contracts entered into by the Matthews Asia Total Return Bond Fund, the average notional ending quarterly amounts purchased in USD were $2,474,627 and the average notional ending quarterly amounts sold in USD were $24,866,876. In regards to the interest rate swap contracts entered into by the Matthews Asia Total Return Bond Fund, where the Fund receives the fixed rate and pays the floating rate, the average notional ending quarterly amounts in USD was $18,445,370.
4. | CAPITAL SHARE TRANSACTIONS |
For the Period Ended June 30, 2020 (Unaudited) |
||||||||
Shares | Amount | |||||||
MATTHEWS EMERGING MARKETS EQUITY FUND1 |
||||||||
Investor Class |
||||||||
Shares sold |
146,902 | $1,544,813 | ||||||
Shares issued through reinvestment of distributions |
— | — | ||||||
Shares redeemed |
(2,679 | ) | (29,407 | ) | ||||
Net increase |
144,223 | $1,515,406 | ||||||
Institutional Class |
||||||||
Shares sold |
642,510 | $6,480,134 | ||||||
Shares issued through reinvestment of distributions |
— | — | ||||||
Shares redeemed |
— | — | ||||||
Net increase |
642,510 | $6,480,134 |
Six-Month Period
Ended June 30, 2020 (Unaudited) |
Year Ended December 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
MATTHEWS ASIA TOTAL RETURN BOND FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
461,210 | $4,829,213 | 531,369 | $5,763,612 | ||||||||||||
Shares issued through reinvestment of distributions |
56,855 | 594,231 | 145,300 | 1,576,564 | ||||||||||||
Shares redeemed |
(631,209 | ) | (6,404,444 | ) | (1,094,258 | ) | (11,768,876 | ) | ||||||||
Net (decrease) |
(113,144 | ) | ($981,000 | ) | (417,589 | ) | ($4,428,700 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
592,359 | $6,275,500 | 1,930,123 | $20,678,547 | ||||||||||||
Shares issued through reinvestment of distributions |
105,858 | 1,105,516 | 247,825 | 2,689,277 | ||||||||||||
Shares redeemed |
(1,397,568 | ) | (14,464,947 | ) | (1,084,707 | ) | (11,720,296 | ) | ||||||||
Net increase (decrease) |
(699,351 | ) | ($7,083,931 | ) | 1,093,241 | $11,647,528 | ||||||||||
MATTHEWS ASIA CREDIT OPPORTUNITIES FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
222,124 | $2,221,986 | 539,096 | $5,563,787 | ||||||||||||
Shares issued through reinvestment of distributions |
20,577 | 201,164 | 50,305 | 523,714 | ||||||||||||
Shares redeemed |
(421,521 | ) | (4,253,567 | ) | (248,407 | ) | (2,552,245 | ) | ||||||||
Net increase (decrease) |
(178,820 | ) | ($1,830,417 | ) | 340,994 | $3,535,256 | ||||||||||
Institutional Class |
||||||||||||||||
Shares sold |
1,803,893 | $18,544,862 | 4,598,478 | $48,037,680 | ||||||||||||
Shares issued through reinvestment of distributions |
152,526 | 1,484,098 | 188,769 | 1,969,854 | ||||||||||||
Shares redeemed |
(1,212,183 | ) | (11,815,153 | ) | (459,087 | ) | (4,707,645 | ) | ||||||||
Net increase |
744,236 | $8,213,807 | 4,328,160 | $45,299,889 | ||||||||||||
MATTHEWS ASIAN GROWTH AND INCOME FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
2,243,909 | $32,121,911 | 4,872,266 | $72,535,793 | ||||||||||||
Shares issued through reinvestment of distributions |
285,716 | 4,142,872 | 1,729,925 | 26,744,737 | ||||||||||||
Shares redeemed |
(8,528,496 | ) | (120,322,804 | ) | (18,009,566 | ) | (272,354,103 | ) | ||||||||
Net (decrease) |
(5,998,871 | ) | ($84,058,021 | ) | (11,407,375 | ) | ($173,073,573 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
13,274,197 | $186,150,093 | 25,459,302 | $387,665,569 | ||||||||||||
Shares issued through reinvestment of distributions |
361,420 | 5,229,737 | 1,643,462 | 25,409,900 | ||||||||||||
Shares redeemed |
(14,800,750 | ) | (202,013,546 | ) | (22,634,082 | ) | (341,434,957 | ) | ||||||||
Net increase (decrease) |
(1,165,133 | ) | ($10,633,716 | ) | 4,468,682 | $71,640,512 |
1 | The Fund commenced operations on April 30, 2020. |
148 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
Six-Month Period Ended June 30, 2020 (Unaudited) |
Year Ended December 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
MATTHEWS ASIA DIVIDEND FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
9,780,000 | $151,763,861 | 23,080,251 | $386,877,636 | ||||||||||||
Shares issued through reinvestment of distributions |
1,074,747 | 17,206,239 | 3,039,442 | 51,047,011 | ||||||||||||
Shares redeemed |
(39,439,454 | ) | (616,522,453 | ) | (63,800,331 | ) | (1,067,632,982 | ) | ||||||||
Net (decrease) |
(28,584,707 | ) | ($447,552,353 | ) | (37,680,638 | ) | ($629,708,335 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
13,309,272 | $206,457,522 | 47,879,707 | $804,748,356 | ||||||||||||
Shares issued through reinvestment of distributions |
1,258,014 | 20,068,252 | 3,784,649 | 63,570,444 | ||||||||||||
Shares redeemed |
(66,348,004 | ) | (1,007,335,524 | ) | (66,039,551 | ) | (1,110,681,954 | ) | ||||||||
Net (decrease) |
(51,780,718 | ) | ($780,809,750 | ) | (14,375,195 | ) | ($242,363,154 | ) | ||||||||
MATTHEWS CHINA DIVIDEND FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
3,138,790 | $48,032,375 | 8,109,547 | $128,681,746 | ||||||||||||
Shares issued through reinvestment of distributions |
297,355 | 4,814,184 | 266,077 | 4,182,441 | ||||||||||||
Shares redeemed |
(5,593,627 | ) | (85,603,074 | ) | (6,173,811 | ) | (97,098,245 | ) | ||||||||
Net increase (decrease) |
(2,157,482 | ) | ($32,756,515 | ) | 2,201,813 | $35,765,942 | ||||||||||
Institutional Class |
||||||||||||||||
Shares sold |
1,288,811 | $20,028,059 | 4,062,893 | $64,306,979 | ||||||||||||
Shares issued through reinvestment of distributions |
127,181 | 2,059,058 | 113,134 | 1,780,502 | ||||||||||||
Shares redeemed |
(3,248,048 | ) | (49,268,482 | ) | (1,706,106 | ) | (26,787,635 | ) | ||||||||
Net increase (decrease) |
(1,832,056 | ) | ($27,181,365 | ) | 2,469,921 | $39,299,846 | ||||||||||
MATTHEWS ASIA VALUE FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
103,871 | $1,071,332 | 519,639 | $5,951,759 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 71,981 | 781,711 | ||||||||||||
Shares redeemed |
(534,794 | ) | (4,789,073 | ) | (896,532 | ) | (10,062,716 | ) | ||||||||
Net (decrease) |
(430,923 | ) | ($3,717,741 | ) | (304,912 | ) | ($3,329,246 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
79,508 | $838,620 | 517,708 | $5,900,220 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 31,352 | 337,973 | ||||||||||||
Shares redeemed |
(169,792 | ) | (1,703,425 | ) | (586,821 | ) | (6,627,976 | ) | ||||||||
Net (decrease) |
(90,284 | ) | ($864,805 | ) | (37,761 | ) | ($389,783 | ) | ||||||||
MATTHEWS ASIA GROWTH FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
2,474,211 | $66,399,223 | 4,541,007 | $115,967,177 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 171,836 | 4,780,476 | ||||||||||||
Shares redeemed |
(3,211,940 | ) | (85,476,657 | ) | (7,367,330 | ) | (188,876,592 | ) | ||||||||
Net (decrease) |
(737,729 | ) | ($19,077,434 | ) | (2,654,487 | ) | ($68,128,939 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
4,709,555 | $126,501,448 | 7,619,976 | $196,483,749 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 173,818 | 4,875,584 | ||||||||||||
Shares redeemed |
(3,754,900 | ) | (100,341,820 | ) | (3,742,483 | ) | (96,806,547 | ) | ||||||||
Net increase |
954,655 | $26,159,628 | 4,051,311 | $104,552,786 | ||||||||||||
MATTHEWS PACIFIC TIGER FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
6,711,730 | $168,812,296 | 14,430,758 | $406,894,363 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 2,845,287 | 81,033,776 | ||||||||||||
Shares redeemed |
(20,814,223 | ) | (520,264,710 | ) | (26,486,333 | ) | (742,801,344 | ) | ||||||||
Net (decrease) |
(14,102,493 | ) | ($351,452,414 | ) | (9,210,288 | ) | ($254,873,205 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
17,898,903 | $455,025,717 | 49,951,152 | $1,407,060,783 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 6,705,677 | 190,776,524 | ||||||||||||
Shares redeemed |
(63,039,659 | ) | (1,579,162,120 | ) | (53,091,456 | ) | (1,488,158,535 | ) | ||||||||
Net increase (decrease) |
(45,140,756 | ) | ($1,124,136,403 | ) | 3,565,373 | $109,678,772 |
matthewsasia.com | 800.789.ASIA | 149 |
Notes to Financial Statements (unaudited) (continued)
Six-Month Period Ended June 30, 2020 (Unaudited) |
Year Ended December 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
MATTHEWS ASIA ESG FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
534,410 | $5,231,398 | 1,184,049 | $12,826,439 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 22,962 | 252,585 | ||||||||||||
Shares redeemed |
(329,485 | ) | (3,167,495 | ) | (395,976 | ) | (4,181,719 | ) | ||||||||
Net increase |
204,925 | $2,063,903 | 811,035 | $8,897,305 | ||||||||||||
Institutional Class |
||||||||||||||||
Shares sold |
446,808 | $4,173,494 | 1,081,878 | $11,684,318 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 31,337 | 344,077 | ||||||||||||
Shares redeemed |
(669,291 | ) | (6,000,491 | ) | (191,932 | ) | (2,046,929 | ) | ||||||||
Net increase (decrease) |
(222,483 | ) | ($1,826,997 | ) | 921,283 | $9,981,466 | ||||||||||
MATTHEWS EMERGING ASIA FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
798,452 | $7,301,113 | 1,977,945 | $25,017,512 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 184,599 | 2,200,419 | ||||||||||||
Shares redeemed |
(2,327,465 | ) | (22,949,575 | ) | (4,636,314 | ) | (57,325,455 | ) | ||||||||
Net (decrease) |
(1,529,013 | ) | ($15,648,462 | ) | (2,473,770 | ) | ($30,107,524 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
3,543,031 | $32,362,649 | 10,746,157 | $135,847,255 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 496,581 | 5,949,041 | ||||||||||||
Shares redeemed |
(10,295,148 | ) | (95,133,454 | ) | (12,287,844 | ) | (150,800,355 | ) | ||||||||
Net (decrease) |
(6,752,117 | ) | ($62,770,805 | ) | (1,045,106 | ) | ($9,004,059 | ) | ||||||||
MATTHEWS ASIA INNOVATORS FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
6,709,677 | $100,622,722 | 3,537,078 | $45,933,297 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 34,901 | 503,279 | ||||||||||||
Shares redeemed |
(3,394,928 | ) | (50,888,488 | ) | (4,901,397 | ) | (63,792,703 | ) | ||||||||
Net increase (decrease) |
3,314,749 | $49,734,234 | (1,329,418 | ) | ($17,356,127 | ) | ||||||||||
Institutional Class |
||||||||||||||||
Shares sold |
23,466,424 | $355,928,711 | 2,497,746 | $33,297,458 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 24,526 | 355,872 | ||||||||||||
Shares redeemed |
(2,638,144 | ) | (39,037,757 | ) | (1,965,087 | ) | (25,479,411 | ) | ||||||||
Net increase |
20,828,280 | $316,890,954 | 557,185 | $8,173,919 | ||||||||||||
MATTHEWS CHINA FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
6,904,667 | $130,212,546 | 9,307,763 | $160,049,101 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 413,049 | 7,823,154 | ||||||||||||
Shares redeemed |
(10,023,568 | ) | (188,940,690 | ) | (11,566,339 | ) | (197,267,770 | ) | ||||||||
Net (decrease) |
(3,118,901 | ) | ($58,728,144 | ) | (1,845,527 | ) | ($29,395,515 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
9,404,449 | $178,035,169 | 8,093,642 | $133,433,967 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 47,201 | 892,099 | ||||||||||||
Shares redeemed |
(2,727,266 | ) | (51,829,414 | ) | (1,765,278 | ) | (30,910,184 | ) | ||||||||
Net increase |
6,677,183 | $126,205,755 | 6,375,565 | $103,415,882 | ||||||||||||
MATTHEWS INDIA FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
2,295,796 | $44,130,619 | 7,731,394 | $200,765,536 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 3,684,970 | 85,638,714 | ||||||||||||
Shares redeemed |
(10,658,554 | ) | (200,743,485 | ) | (18,554,986 | ) | (473,744,143 | ) | ||||||||
Net (decrease) |
(8,362,758 | ) | ($156,612,866 | ) | (7,138,622 | ) | ($187,339,893 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
747,405 | $14,807,893 | 6,857,047 | $178,913,179 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 607,390 | 14,279,727 | ||||||||||||
Shares redeemed |
(4,360,551 | ) | (80,849,337 | ) | (17,386,942 | ) | (457,235,640 | ) | ||||||||
Net (decrease) |
(3,613,146 | ) | ($66,041,444 | ) | (9,922,505 | ) | ($264,042,734 | ) |
150 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
Six-Month Period Ended June 30, 2020 (Unaudited) |
Year Ended December 31, 2019 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
MATTHEWS JAPAN FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
6,500,547 | $125,334,773 | 14,040,067 | $281,660,571 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 5,462,457 | 117,661,321 | ||||||||||||
Shares redeemed |
(29,974,061 | ) | (583,697,506 | ) | (43,276,411 | ) | (904,215,429 | ) | ||||||||
Net (decrease) |
(23,473,514 | ) | ($458,362,733 | ) | (23,773,887 | ) | ($504,893,537 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
4,075,615 | $78,965,213 | 10,666,389 | $222,188,400 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 1,514,104 | 32,674,366 | ||||||||||||
Shares redeemed |
(19,577,673 | ) | (379,787,622 | ) | (36,054,972 | ) | (745,335,389 | ) | ||||||||
Net (decrease) |
(15,502,058 | ) | ($300,822,409 | ) | (23,874,479 | ) | ($490,472,623 | ) | ||||||||
MATTHEWS KOREA FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
1,632,630 | $6,345,362 | 2,059,086 | $9,109,614 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 2,084,515 | 8,984,260 | ||||||||||||
Shares redeemed |
(2,460,490 | ) | (9,561,763 | ) | (6,006,394 | ) | (26,550,755 | ) | ||||||||
Net (decrease) |
(827,860 | ) | ($3,216,401 | ) | (1,862,793 | ) | ($8,456,881 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
429,725 | $1,731,785 | 3,918,143 | $17,759,942 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 393,829 | 1,709,218 | ||||||||||||
Shares redeemed |
(3,845,310 | ) | (15,611,336 | ) | (3,210,203 | ) | (14,313,984 | ) | ||||||||
Net increase (decrease) |
(3,415,585 | ) | ($13,879,551 | ) | 1,101,769 | $5,155,176 | ||||||||||
MATTHEWS ASIA SMALL COMPANIES FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
476,524 | $8,064,884 | 1,052,343 | $17,606,463 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 26,715 | 477,400 | ||||||||||||
Shares redeemed |
(1,614,446 | ) | (27,263,660 | ) | (2,952,819 | ) | (50,877,217 | ) | ||||||||
Net (decrease) |
(1,137,922 | ) | ($19,198,776 | ) | (1,873,761 | ) | ($32,793,354 | ) | ||||||||
Institutional Class |
||||||||||||||||
Shares sold |
1,067,251 | $18,457,589 | 2,286,863 | $38,931,702 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 31,309 | 558,232 | ||||||||||||
Shares redeemed |
(1,332,532 | ) | (22,085,721 | ) | (2,456,706 | ) | (41,355,074 | ) | ||||||||
Net (decrease) |
(265,281 | ) | ($3,628,132 | ) | (138,534 | ) | ($1,865,140 | ) | ||||||||
MATTHEWS CHINA SMALL COMPANIES FUND |
||||||||||||||||
Investor Class |
||||||||||||||||
Shares sold |
9,872,332 | $158,402,319 | 2,414,807 | $28,243,922 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 48,885 | 626,223 | ||||||||||||
Shares redeemed |
(4,275,321 | ) | (68,023,247 | ) | (1,880,948 | ) | (20,832,077 | ) | ||||||||
Net increase |
5,597,011 | $90,379,072 | 582,744 | $8,038,068 | ||||||||||||
Institutional Class |
||||||||||||||||
Shares sold |
6,758,811 | $103,652,043 | 1,234,398 | $13,977,800 | ||||||||||||
Shares issued through reinvestment of distributions |
— | — | 25,389 | 325,995 | ||||||||||||
Shares redeemed |
(1,364,782 | ) | (21,627,577 | ) | (904,930 | ) | (10,177,325 | ) | ||||||||
Net increase |
5,394,029 | $82,024,466 | 354,857 | $4,126,470 |
5. | INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES |
Matthews, a registered investment advisor under the 1940 Act, provides the Funds with investment management services. Pursuant to the prior Investment Advisory Agreement dated August 13, 2004, as amended (the “Prior Advisory Agreement”) and the current Investment Advisory Agreement dated February 1, 2016, as amended (the “Current Advisory Agreement,” and together with the Prior Advisory Agreement, the “Advisory Agreement”), the Funds pay Matthews (i) for management and advisory services; and (ii) for certain administrative services, an annual fee as a percentage of average daily net assets. Under the Advisory Agreement each of the Funds, other than Matthews Asia Total Return Bond Fund, Matthews Asia Credit Opportunities Fund, Matthews Emerging Asia Fund, Matthews Asia Small Companies Fund, and Matthews China Small Companies Fund (the “Family-Priced Funds”), pays Matthews 0.75% of their aggregate average daily net assets up to $2 billion, 0.6834% of their aggregate average daily net assets over $2 billion up to $5 billion, 0.65% of their aggregate average daily net assets over $5 billion up to $25 billion, 0.64% of their aggregate average daily net assets over $25 billion up to $30 billion, 0.63% of their aggregate average daily net assets over $30 billion up to $35 billion, 0.62% of their aggregate average daily net assets over $35 billion up to $40 billion, 0.61% of their aggregate average daily net assets over $40 billion up to $45 billion, and
matthewsasia.com | 800.789.ASIA | 151 |
Notes to Financial Statements (unaudited) (continued)
0.60% of their aggregate average daily net assets over $45 billion. Each of the Matthews Asia Total Return Bond Fund and Matthews Asia Credit Opportunities Fund paid Matthews an annual fee of 0.55% of such Fund’s annual average daily net assets pursuant to the Advisory Agreement. Each of the Matthews Emerging Asia Fund, Matthews Asia Small Companies Fund, and the Matthews China Small Companies Fund pays Matthews an annual fee of 1.00% of the average daily net assets of such Fund up to $1 billion and 0.95% of the average daily net assets of such Fund over $1 billion pursuant to the Advisory Agreement. Each Fund pays Matthews a monthly fee at the annual rate using the applicable management fee calculated based on the actual number of days of that month and based on the Fund’s average daily net asset value for the month.
Pursuant to a fee waiver letter agreement, effective as of September 1, 2014, between the Trust, on behalf of the Family-Priced Funds, and Matthews (as amended from time to time, the “Fee Waiver Agreement”), for each Family-Priced Fund, Matthews has agreed to waive a portion of the fee payable under the Advisory Agreement and a portion of the fee payable under the Administration and Shareholder Services Agreement, if any Family-Priced Fund’s average daily net assets are over $3 billion, as follows: for every $2.5 billion average daily net assets of a Family-Priced Fund that are over $3 billion, the fee rates that otherwise would be applied for calculating fees payable under the Advisory Agreement and the Administration and Shareholder Services Agreement for such Family-Priced Fund with respect to such excess average daily net assets will be each reduced by 0.01%, in each case without reducing such fee rate below 0.00%.
Investment advisory fees charged, waived fees and reimbursed additional expenses for the six-month period ended June 30, 2020, were as follows:
Gross Advisory Fees |
Advisory Fees Waived and Reimbursed in Excess of the Expense Limitation |
Net Advisory Fee/ Reimbursement |
||||||||||
Matthews Emerging Markets Equity Fund | $8,425 | ($38,005 | ) | ($29,580 | ) | |||||||
Matthews Asia Total Return Bond Fund | 295,480 | (36,242 | ) | 259,238 | ||||||||
Matthews Asia Credit Opportunities Fund | 261,358 | (17,723 | ) | 243,635 | ||||||||
Matthews Asian Growth and Income Fund | 4,354,888 | — | 4,354,888 | |||||||||
Matthews Asia Dividend Fund | 14,112,838 | (62,600 | ) | 14,050,238 | ||||||||
Matthews China Dividend Fund | 1,087,808 | — | 1,087,808 | |||||||||
Matthews Asia Value Fund | 50,560 | (71,279 | ) | (20,719 | ) | |||||||
Matthews Asia Growth Fund | 3,779,819 | — | 3,779,819 | |||||||||
Matthews Pacific Tiger Fund | 23,675,895 | (296,352 | ) | 23,379,543 | ||||||||
Matthews Asia ESG Fund | 169,359 | (50,390 | ) | 118,969 | ||||||||
Matthews Emerging Asia Fund | 1,074,009 | (661,452 | ) | 412,557 | ||||||||
Matthews Asia Innovators Fund | 1,531,947 | — | 1,531,947 | |||||||||
Matthews China Fund | 3,057,357 | — | 3,057,357 | |||||||||
Matthews India Fund | 2,317,081 | — | 2,317,081 | |||||||||
Matthews Japan Fund | 5,915,541 | — | 5,915,541 | |||||||||
Matthews Korea Fund | 375,457 | — | 375,457 | |||||||||
Matthews Asia Small Companies Fund | 802,549 | (222,432 | ) | 580,117 | ||||||||
Matthews China Small Companies Fund | 964,292 | (106,645 | ) | 857,647 | ||||||||
$63,834,663 | ($1,563,120 | ) | $62,271,543 | |||||||||
Under a written agreement between the Funds and Matthews (the “Operating Expense Agreement”), Matthews agrees to waive fees and reimburse expenses to a Fund if its expense ratio exceeds a certain percentage level. Effective April 30, 2020 for all Funds, except the Matthews Emerging Markets Equity Fund, the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund, this level is 1.20% for the Institutional Class. Prior to April 30, 2020, Matthews had agreed to voluntarily reduce the expense limitation to 1.20% for the Institutional Class beginning on November 1, 2019. Matthews agrees to reduce the expense ratio by waiving an equal amount of non-class specific expenses (e.g., custody fees) for the Investor Class. Because certain expenses of the Investor Class may be higher than those of the Institutional Class and because class specific expenses may be waived solely for the Institutional Class, total annual Fund expenses for the Investor Class may exceed 1.20%. For the Matthews Emerging Markets Equity Fund, the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund this level is 0.90% for the Institutional Class. Matthews agrees to reduce the expense ratio by waiving an equal amount of non-class specific expenses (e.g., custody fees) for the Investor Class. Because certain expenses of the Investor Class may be higher than those of the Institutional Class and because class specific expenses may be waived solely for the Institutional Class, total annual Fund expenses for the Investor Class may exceed 0.90%. In turn, if the expenses of a Fund, other than the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund, fall below the level noted within three years after Matthews has made such a reimbursement, the Fund may reimburse Matthews up to an amount of the recoupment available not to exceed the lesser of (i) the expense limitation applicable at the time of that fee waiver and/or expense reimbursement or (ii) the expense limitation in effect at the time of recoupment. For the Matthews Asia Total Return Bond Fund and the Matthews Asia Credit Opportunities Fund, any amount waived for prior fiscal years is not subject to recoupment. This agreement will continue through April 30, 2021, may be extended for additional periods not exceeding one year, and may be terminated at any time by the Board of Trustees on behalf of the Fund on 60 days’ written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date.
152 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
Waived | Fees Subject to Possible Future Recoupment: |
On June 30, 2020, the amounts expired and subject to possible future recoupment under the expense limitation agreement are as follows:
Expiring December 31, | ||||||||||||||||
2020 | 2021 | 2022 | 2023 | |||||||||||||
Matthews Emerging Markets Equity Fund | $— | $— | $— | $38,005 | ||||||||||||
Matthews Asia Value Fund | 119,683 | 81,767 | 111,890 | 71,279 | ||||||||||||
Matthews Asia ESG Fund | 156,429 | 156,459 | 67,253 | 50,390 | ||||||||||||
Matthews Emerging Asia Fund | 878,171 | 1,073,964 | 997,574 | 661,452 | ||||||||||||
Matthews Asia Small Companies Fund | 272,597 | 308,001 | 336,966 | 222,432 | ||||||||||||
Matthews China Small Companies Fund | 184,162 | 275,220 | 167,178 | 106,645 |
The Funds have an Administration and Shareholder Services Agreement dated August 13, 2004, as amended (the “Shareholder Services Agreement” or “Services Agreement”), in which the Funds pay an annual administration and shareholder servicing fee to Matthews, as a percentage of the average daily net assets of each Fund in aggregate, computed and prorated on a daily basis. Under the Shareholder Services Agreement, the Funds in the aggregate pay Matthews 0.25% of their aggregate average daily net assets up to $2 billion, 0.1834% of their aggregate average daily net assets over $2 billion up to $5 billion, 0.15% of their aggregate average daily net assets over $5 billion up to $7.5 billion, 0.125% of their aggregate average daily net assets over $7.5 billion up to $15 billion, 0.11% of their aggregate average daily net assets over $15 billion up to $22.5 billion, 0.10% of their aggregate average daily net assets over $22.5 billion up to $25 billion, 0.09% of their aggregate average daily net assets over $25 billion up to $30 billion, 0.08% of their aggregate average daily net assets over $30 billion up to $35 billion, 0.07% of their aggregate average daily net assets over $35 billion up to $40 billion, 0.06% of their aggregate average daily net assets over $40 billion up to $45 billion, and 0.05% of their aggregate average daily net assets over $45 billion.
Administration and shareholder servicing fees charged, for the six-month period ended June 30, 2020, were as follows:
Gross |
Administration and Shareholder Servicing Fees Waived in Excess of Expense Limitation |
Net Administration and Shareholder Servicing Fees |
||||||||||
Matthews Emerging Markets Equity Fund | $1,897 | $— | $1,897 | |||||||||
Matthews Asia Total Return Bond Fund | 79,356 | — | 79,356 | |||||||||
Matthews Asia Credit Opportunities Fund | 70,259 | — | 70,259 | |||||||||
Matthews Asian Growth and Income Fund | 965,343 | — | 965,343 | |||||||||
Matthews Asia Dividend Fund | 3,121,944 | (62,600 | ) | 3,059,344 | ||||||||
Matthews China Dividend Fund | 241,040 | — | 241,040 | |||||||||
Matthews Asia Value Fund | 11,165 | — | 11,165 | |||||||||
Matthews Asia Growth Fund | 838,340 | — | 838,340 | |||||||||
Matthews Pacific Tiger Fund | 5,239,139 | (296,141 | ) | 4,942,998 | ||||||||
Matthews Asia ESG Fund | 37,521 | — | 37,521 | |||||||||
Matthews Emerging Asia Fund | 157,705 | — | 157,705 | |||||||||
Matthews Asia Innovators Fund | 341,475 | — | 341,475 | |||||||||
Matthews China Fund | 679,010 | — | 679,010 | |||||||||
Matthews India Fund | 511,245 | — | 511,245 | |||||||||
Matthews Japan Fund | 1,309,350 | — | 1,309,350 | |||||||||
Matthews Korea Fund | 83,084 | — | 83,084 | |||||||||
Matthews Asia Small Companies Fund | 118,511 | — | 118,511 | |||||||||
Matthews China Small Companies Fund | 143,882 | — | 143,882 |
In addition to the fees paid to the Funds’ transfer agent, the Funds bear the cost of fees paid to certain service providers or intermediaries, including supermarkets, which provide transfer agency, record-keeping and shareholder servicing to certain shareholders. These fees are referred to as intermediary service fees on the Statements of Assets and Liabilities as well as the Statements of Operations. Additional information concerning these services and fees is contained in the Funds’ prospectuses.
matthewsasia.com | 800.789.ASIA | 153 |
Notes to Financial Statements (unaudited) (continued)
BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), an indirect wholly owned subsidiary of The Bank of New York Mellon Corporation, serves as the Funds’ administrator, and in that capacity, performs various administrative and accounting services for each Fund. BNY Mellon also serves as the Funds’ transfer agent, dividend disbursing agent and registrar. An officer of BNY Mellon serves as Assistant Treasurer to the Funds. Total fees accrued by the Funds for administration and accounting services for the six-month period ended June 30, 2020 were as follows:
Administration and Accounting fees |
||||
Matthews Emerging Markets Equity Fund | $101 | |||
Matthews Asia Total Return Bond Fund | 4,298 | |||
Matthews Asia Credit Opportunities Fund | 3,802 | |||
Matthews Asian Growth and Income Fund | 52,268 | |||
Matthews Asia Dividend Fund | 169,422 | |||
Matthews China Dividend Fund | 13,056 | |||
Matthews Asia Value Fund | 607 | |||
Matthews Asia Growth Fund | 45,362 | |||
Matthews Pacific Tiger Fund | 284,211 | |||
Matthews Asia ESG Fund | 2,033 | |||
Matthews Emerging Asia Fund | 8,592 | |||
Matthews Asia Innovators Fund | 18,374 | |||
Matthews China Fund | 36,687 | |||
Matthews India Fund | 27,825 | |||
Matthews Japan Fund | 71,012 | |||
Matthews Korea Fund | 4,507 | |||
Matthews Asia Small Companies Fund | 6,420 | |||
Matthews China Small Companies Fund | 7,714 |
As of June 30, 2020, Matthews and its affiliates held significant shares in the Funds as follows:
Shares held by Matthews and its Affiliates |
Percentage of Outstanding Shares |
|||||||
Matthews Emerging Markets Equity Fund | 665,995 | 85 | % | |||||
Matthews Asia ESG Fund | 1,041,697 | 21 | % |
Certain officers and Trustees of the Funds are also officers and directors of Matthews. All officers serve without compensation from the Funds. The Funds paid the Independent Trustees $832,305 in aggregate for regular compensation during the six-month period ended June 30, 2020.
6. | INVESTMENTS |
The value of investment transactions made for affiliated and unaffiliated holdings for the six-month period ended June 30, 2020 were as follows:
Affiliated Purchases | Proceeds from Affiliated Sales |
Unaffiliated Purchases | Proceeds from Unaffiliated Sales |
|||||||||||||
Matthews Emerging Markets Equity Fund | $— | $— | $10,530,244 | $3,075,348 | ||||||||||||
Matthews Asia Total Return Bond Fund | — | — | 22,193,791 | 27,468,915 | ||||||||||||
Matthews Asia Credit Opportunities Fund | — | — | 25,206,868 | 13,179,317 | ||||||||||||
Matthews Asian Growth and Income Fund | — | — | 227,064,864 | 338,154,578 | ||||||||||||
Matthews Asia Dividend Fund | 2,542,270 | 25,441,760 | 949,755,915 | 2,111,222,550 | ||||||||||||
Matthews China Dividend Fund | — | — | 121,272,754 | 183,442,749 | ||||||||||||
Matthews Asia Value Fund | — | — | 2,723,531 | 8,118,589 | ||||||||||||
Matthews Asia Growth Fund | — | — | 293,904,798 | 312,753,897 | ||||||||||||
Matthews Pacific Tiger Fund | — | 59,915,123 | 1,100,473,030 | 2,590,074,090 | ||||||||||||
Matthews Asia ESG Fund | — | — | 25,998,211 | 26,062,949 | ||||||||||||
Matthews Emerging Asia Fund | — | 364,804 | 21,921,157 | 109,455,057 | ||||||||||||
Matthews Asia Innovators Fund | — | — | 523,630,166 | 194,576,361 | ||||||||||||
Matthews China Fund | — | — | 328,049,468 | 295,924,028 | ||||||||||||
Matthews India Fund | — | — | 204,019,774 | 434,441,254 | ||||||||||||
Matthews Japan Fund | — | — | 428,693,109 | 1,203,425,944 | ||||||||||||
Matthews Korea Fund | — | — | 15,063,539 | 31,808,307 | ||||||||||||
Matthews Asia Small Companies Fund | — | — | 86,877,304 | 109,977,967 | ||||||||||||
Matthews China Small Companies Fund | — | — | 236,923,560 | 70,278,460 |
154 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
7. | HOLDINGS OF 5% VOTING SHARES OF PORTFOLIO COMPANIES |
The 1940 Act defines “affiliated companies” to include investments in portfolio companies in which a fund owns 5% or more of the outstanding voting shares. During the six-month period ended June 30, 2020, the Funds below held 5% or more of the outstanding voting shares of the noted portfolio companies. During this period, other Funds in the Trust may also have held voting shares of the issuers at levels below 5%.
Investments in affiliates:
A summary of transactions in securities of issuers affiliated with a Fund for the six-month period ended June 30, 2020 is as follows:
Value at Dec. 31, 2019 |
Purchases | Sales | Net Realized Gain (Loss) Jan. 1, 2020– June 30, 2020 |
Net Change in Unrealized |
Value at June 30, 2020 |
Shares June 30, 2020 |
Dividend Income Jan. 1, 2020– June 30, 2020 |
|||||||||||||||||||||||||
MATTHEWS ASIA DIVIDEND FUND |
|
|||||||||||||||||||||||||||||||
Name of Issuer: | ||||||||||||||||||||||||||||||||
Anritsu Corp.† |
$164,799,203 | $— | $41,873,701 | $— | $— | $— | 6,038,300 | $— | ||||||||||||||||||||||||
BELLSYSTEM24 Holdings, Inc. |
87,951,535 | — | 5,711,909 | (1,539,863 | ) | (13,841,413 | ) | 66,858,350 | 5,137,700 | 922,190 | ||||||||||||||||||||||
Breville Group, Ltd. |
96,607,872 | — | 3,947,919 | 1,725,889 | 25,181,849 | 119,567,691 | 7,564,257 | 970,044 | ||||||||||||||||||||||||
China Steel Chemical Corp.† |
58,070,775 | — | 30,619,920 | — | — | — | 5,272,000 | — | ||||||||||||||||||||||||
Eiken Chemical Co., Ltd.† |
67,587,182 | — | 56,990,165 | — | — | — | 403,000 | — | ||||||||||||||||||||||||
KATITAS Co., Ltd. |
92,256,441 | 2,542,270 | †† | 2,585,178 | 569,687 | 5,181,265 | 97,964,485 | 4,210,800 | 472,883 | |||||||||||||||||||||||
Minda Industries, Ltd. |
71,216,192 | — | 3,848,324 | 504,104 | (18,586,279 | ) | 49,285,693 | 13,532,234 | 79,287 | |||||||||||||||||||||||
Minth Group, Ltd. |
238,203,085 | — | 8,604,450 | 4,721,987 | (48,785,665 | ) | 185,534,957 | 64,635,000 | 5,636,386 | |||||||||||||||||||||||
Yuexiu Transport Infrastructure, Ltd. |
84,277,091 | — | 743,980 | 277,715 | (17,939,503 | ) | 65,871,323 | 93,902,000 | 2,544,113 | |||||||||||||||||||||||
Total Affiliates |
$6,259,519 | $(68,789,746 | ) | $585,082,499 | $10,624,903 | |||||||||||||||||||||||||||
MATTHEWS ASIA GROWTH FUND |
|
|||||||||||||||||||||||||||||||
Name of Issuer: | ||||||||||||||||||||||||||||||||
Rozetta Corp.† |
$18,601,381 | $— | $— | $— | $— | $— | 516,600 | $— | ||||||||||||||||||||||||
Sampath Bank PLC† |
19,610,214 | — | 5,249,643 | — | — | — | 13,125,953 | — | ||||||||||||||||||||||||
Total Affiliates |
$— | $— | $— | $— | ||||||||||||||||||||||||||||
MATTHEWS PACIFIC TIGER FUND |
|
|||||||||||||||||||||||||||||||
Name of Issuer: | ||||||||||||||||||||||||||||||||
DKSH Holding AG† |
$219,652,228 | $— | $143,936,918 | $— | $— | $— | 1,509,437 | $— | ||||||||||||||||||||||||
Fuyao Glass Industry Group Co., Ltd. H Shares |
150,920,324 | — | 26,788,432 | (3,738,866 | ) | (30,853,523 | ) | 89,539,503 | 37,397,200 | — | ||||||||||||||||||||||
Guotai Junan Securities Co., Ltd. H Shares† |
145,823,286 | — | 22,756,501 | — | — | — | 66,072,000 | — | ||||||||||||||||||||||||
Orion Holdings Corp. |
86,931,374 | — | 27,054,024 | (150,052,730 | ) | 125,715,924 | 35,540,544 | 3,198,402 | — | |||||||||||||||||||||||
Tata Power Co., Ltd. |
142,780,167 | — | 6,072,667 | (31,184,529 | ) | (6,986,128 | ) | 98,536,843 | 165,316,487 | — | ||||||||||||||||||||||
Total Affiliates |
$(184,976,125 | ) | $87,876,273 | $223,616,890 | $— | |||||||||||||||||||||||||||
MATTHEWS EMERGING ASIA FUND |
|
|||||||||||||||||||||||||||||||
Name of Issuer: |
|
|||||||||||||||||||||||||||||||
PAK Suzuki Motor Co., Ltd.† |
$7,778,239 | $— | $1,378,229 | $— | $— | $— | 3,845,400 | $— | ||||||||||||||||||||||||
Vietnam National Seed Group JSC |
4,375,315 | — | 364,804 | (30,892 | ) | (1,275,061 | ) | 2,704,558 | 996,222 | — | ||||||||||||||||||||||
Total Affiliates |
$(30,892 | ) | $(1,275,061 | ) | $2,704,558 | $— | ||||||||||||||||||||||||||
MATTHEWS INDIA FUND |
|
|||||||||||||||||||||||||||||||
Name of Issuer: | ||||||||||||||||||||||||||||||||
VST Industries, Ltd.† |
$48,471,387 | $— | $15,296,470 | $— | $— | $— | 495,531 | $— |
† | Issuer was not an affiliated company as of June 30, 2020. |
†† | Includes stock split during the period. |
8. | INCOME TAX INFORMATION |
It is the policy of the Funds to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”), applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. The Funds have met the requirements of the Code applicable to regulated investment companies for the six-month period ended June 30, 2020. Therefore, no federal income tax provision is required.
Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
matthewsasia.com | 800.789.ASIA | 155 |
Notes to Financial Statements (unaudited) (continued)
Under current tax law, the Funds have elected to defer certain qualified late-year losses and recognize such losses in the year ending December 31, 2019:
Late Year Losses* |
||||
Matthews Asia Credit Opportunities Fund | ($40,191 | ) | ||
Matthews China Dividend Fund | (3,920,578 | ) | ||
Matthews Asia Growth Fund | (1,542,268 | ) | ||
Matthews Japan Fund | (10,705,586 | ) | ||
Matthews China Small Companies Fund | (440,033 | ) |
* | As permitted by the Internal Revenue Service, the Funds have elected to defer certain qualified late-year losses and recognize such losses in the next fiscal year. |
As of December 31, 2019, the Funds have capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
Amount With No Expiration | ||||||||||||
Short-term Losses |
Long-term Losses |
Total | ||||||||||
Matthews Asia Total Return Bond Fund | $1,503,507 | $— | $1,503,507 | |||||||||
Matthews Asia Dividend Fund | 82,955,984 | — | 82,955,984 | |||||||||
Matthews China Dividend Fund | 1,827,665 | — | 1,827,665 | |||||||||
Matthews Asia Value Fund | 222,757 | 1,791,146 | 2,013,903 | |||||||||
Matthews Emerging Asia Fund | 857,272 | 31,558,227 | 32,415,499 | |||||||||
Matthews China Fund | 8,066,547 | 16,259,682 | 24,326,229 | |||||||||
Matthews Korea Fund | 1,762,326 | 3,270,056 | 5,032,382 | |||||||||
Matthews China Small Companies Fund | — | 453,542 | 453,542 |
Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years, which generally expire after eight years from when they are incurred. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
As of June 30, 2020, the tax cost of investments, including derivatives, and the related net unrealized appreciation and depreciation were as follows:
Tax Cost |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
|||||||||||||
Matthews Emerging Markets Equity Fund | $7,633,781 | $1,023,155 | ($28,944 | ) | $994,211 | |||||||||||
Matthews Asia Total Return Bond Fund | 98,733,723 | 2,079,944 | (2,755,533 | ) | (675,589 | ) | ||||||||||
Matthews Asia Credit Opportunities Fund | 90,534,789 | 1,138,482 | (3,668,679 | ) | (2,530,197 | ) | ||||||||||
Matthews Asian Growth and Income Fund | 1,091,046,650 | 215,396,202 | (101,547,512 | ) | 113,848,690 | |||||||||||
Matthews Asia Dividend Fund | 2,985,211,489 | 1,072,655,472 | (237,631,279 | ) | 835,024,193 | |||||||||||
Matthews China Dividend Fund | 271,873,614 | 65,579,901 | (24,222,290 | ) | 41,357,611 | |||||||||||
Matthews Asia Value Fund | 10,081,308 | 1,138,252 | (1,633,859 | ) | (495,607 | ) | ||||||||||
Matthews Asia Growth Fund | 900,801,853 | 396,928,589 | (43,760,119 | ) | 353,168,470 | |||||||||||
Matthews Pacific Tiger Fund | 4,473,667,405 | 2,378,194,424 | (304,681,976 | ) | 2,073,512,448 | |||||||||||
Matthews Asia ESG Fund | 51,187,204 | 10,543,966 | (7,314,120 | ) | 3,229,846 | |||||||||||
Matthews Emerging Asia Fund | 190,194,927 | 13,159,517 | (51,588,308 | ) | (38,428,791 | ) | ||||||||||
Matthews Asia Innovators Fund | 566,984,737 | 234,789,522 | (5,760,459 | ) | 229,029,063 | |||||||||||
Matthews China Fund | 852,018,151 | 208,818,622 | (18,218,557 | ) | 190,600,065 | |||||||||||
Matthews India Fund | 577,277,104 | 71,854,642 | (115,868,840 | ) | (44,014,198 | ) | ||||||||||
Matthews Japan Fund | 1,114,042,321 | 307,930,964 | (28,924,318 | ) | 279,006,646 | |||||||||||
Matthews Korea Fund | 97,893,019 | 23,101,735 | (9,590,609 | ) | 13,511,126 | |||||||||||
Matthews Asia Small Companies Fund | 116,746,714 | 48,575,836 | (3,263,944 | ) | 45,311,892 | |||||||||||
Matthews China Small Companies Fund | 246,181,120 | 112,631,273 | (2,225,645 | ) | 110,405,628 |
9. | PUBLIC HEALTH EMERGENCY RISKS: |
Pandemics and other public health emergencies, including outbreaks of infectious diseases such as the current outbreak of the novel coronavirus (“COVID-19”), can result, and in the case of COVID-19 is resulting, in market volatility and disruption, and materially and adversely impact economic conditions in ways that cannot be predicted, all of which could result in substantial investment losses. Containment efforts and related restrictive actions by governments and businesses have significantly diminished and disrupted global economic activity across many industries. Less
156 | MATTHEWS ASIA FUNDS |
Notes to Financial Statements (unaudited) (continued)
developed countries and their health systems may be more vulnerable to these impacts. The ultimate impact of COVID-19 or other health emergencies on global economic conditions and businesses is impossible to predict accurately. Ongoing and potential additional material adverse economic effects of indeterminate duration and severity are possible. The resulting adverse impact on the value of investment in the Funds could be significant and prolonged.
10. | SUBSEQUENT EVENTS |
On August 6, 2020, the Board of Trustees of the Matthews International Funds (d/b/a Matthews Asia Funds) approved a proposal to close the Matthews Asia Value Fund (the “Value Fund”) to purchases and thereafter to liquidate the Value Fund. Accordingly, effective on August 25, 2020, the Value Fund no longer accepted purchase orders. On or about September 30, 2020 (the “Liquidation Date”), all of the assets of the Value Fund will be liquidated completely, the shares of any interest holders on the Liquidation Date will be redeemed at the NAV per share and the Value Fund will then be terminated as a series of the Trust.
matthewsasia.com | 800.789.ASIA | 157 |
Matthews Asia Funds | ||
INVESTMENT ADVISOR Matthews International Capital Management, LLC Four Embarcadero Center, Suite 550 San Francisco, CA 94111 800.789.ASIA
CUSTODIAN Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110 |
ACCOUNT SERVICES Matthews Asia Funds P.O. Box 9791 Providence, RI 02940 800.789.ASIA
LEGAL COUNSEL Paul Hastings LLP 101 California Street, 48th Floor San Francisco, CA 94111 |
P.O. Box 9791 | Providence, RI 02940 | matthewsasia.com | 800.789.ASIA (2742)
Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC, Berwyn, Pennsylvania
Matthews Asia Funds are distributed in Latin America by HMC Partners
SAR-0620
158
Item 2. | Code of Ethics. |
Not applicable.
Item 3. | Audit Committee Financial Expert. |
Not applicable.
Item 4. | Principal Accountant Fees and Services. |
Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Investments. |
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. | Controls and Procedures. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a)(1) | Not applicable. | |||
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | |||
(a)(3) | Not applicable. | |||
(a)(4) | Not applicable. | |||
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Matthews International Funds | |
By (Signature and Title)* | /s/ William J. Hackett | |
William J. Hackett, President | ||
(principal executive officer) | ||
Date | September 4, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ William J. Hackett | |
William J. Hackett, President | ||
(principal executive officer) | ||
Date | September 4, 2020 | |
By (Signature and Title)* | Shai Malka | |
Shai Malka, Treasurer | ||
(principal financial officer) | ||
Date | September 4, 2020 |
* | Print the name and title of each signing officer under his or her signature. |