Matthews Emerging Markets Small Companies Fund
MSMLX
Overall Morningstar RatingTM (As of 09/30/2024)
Based on risk-adjusted return among 711 funds in the Diversified Emerging Mkts Category
MutualFund
The Matthews Emerging Markets Small Companies Fund (Institutional) received the 2023 Refinitiv Lipper Fund Award for Best Emerging Markets Fund over three years. Methodology.
Snapshot
Seeks alpha in innovative, capital efficient entrepreneurial companies in emerging markets
Focus on firms that have a strong competitive advantage through pricing power, distribution capability, and/or differentiated technologies and services
Bias toward businesses that cater to rising domestic consumer demand
Under normal circumstances, the Matthews Emerging Markets Small Companies Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. The Fund defines Small Companies as companies with market capitalization no higher than the greater of US $5 billion or the market capitalization of the largest company included in the Fund's primary benchmark, the MSCI Emerging Markets Small Cap Index.
Risks
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. Additionally, investing in emerging and frontier securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund is non-diversified as it concentrates its investments in small sized companies. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies.
These and other risks associated with investing in the Fund can be found in the
prospectus.
Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe.
Fees & Expenses
Gross Expense Ratio
1.34%
Net Expense Ratio
1.34%
Objective
Long-term capital appreciation
Strategy
Under normal circumstances, the Matthews Emerging Markets Small Companies Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. The Fund defines Small Companies as companies with market capitalization no higher than the greater of US $5 billion or the market capitalization of the largest company included in the Fund's primary benchmark, the MSCI Emerging Markets Small Cap Index.
Risks
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. Additionally, investing in emerging and frontier securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund is non-diversified as it concentrates its investments in small sized companies. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies.
The risks associated with investing in the Fund can be found in the prospectus
Performance
Monthly
Quarterly
Calendar Year
As of 09/30/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Small Companies Fund - MSMLX
09/15/2008
MSMLX
3.41%
6.80%
7.01%
12.80%
2.77%
14.28%
7.49%
11.08%
MSCI Emerging Markets Small Cap Index
3.71%
5.64%
13.30%
23.55%
5.68%
12.73%
6.27%
7.72%
As of 09/30/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Small Companies Fund - MSMLX
09/15/2008
MSMLX
3.41%
6.80%
7.01%
12.80%
2.77%
14.28%
7.49%
11.08%
MSCI Emerging Markets Small Cap Index
3.71%
5.64%
13.30%
23.55%
5.68%
12.73%
6.27%
7.72%
For the years ended December 31st
Name
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Matthews Emerging Markets Small Companies Fund - MSMLX
MSMLX
19.88%
-16.84%
22.14%
43.68%
17.38%
-18.05%
30.59%
-1.44%
-9.43%
11.39%
MSCI Emerging Markets Small Cap Index (USD)
24.49%
-17.54%
19.29%
19.72%
11.93%
-18.30%
34.22%
2.56%
-6.57%
1.34%
Before April 30, 2021, the Fund was managed with a materially different investment strategy and may have achieved materially different performance results under its current investment strategy from the performance shown for periods before that date.
MSCI Emerging Markets Small Cap Index since inception value calculated from 9/15/08.
The Fund’s primary benchmark index is the MSCI Emerging Markets Index and the secondary benchmark is the MSCI Emerging Markets Small Cap Index.
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
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. Performance differences between the Institutional class and the Investor class may arise due to differences in fees charged to each class.
Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.
Growth of a Hypothetical $10,000 Investment Since Inception
(as of 06/30/2024)
MSCI AC Asia ex Japan Small Cap Index since inception value calculated from 9/15/08.
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
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.
Past performance is no guarantee of future results. High ratings and rankings does not assure favorable performance.
The Overall Morningstar® Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and (if applicable) ten-year ratings.
Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Lipper Analytical Services, Inc., rankings are based on total return, including reinvestment of dividends and capital gains for the stated periods. Funds are assigned a rank within a universe of funds similar in investment objective as determined by Lipper. For the absolute rankings shown the lower the number rank, the better the Fund performed compared to other funds in the classification group. Lipper also calculates a quartile ranking which divides the peer group into quartiles to identify funds of similar quality. Funds in the 1st or 2nd quartile had outperformed the average fund in the peer group while funds in the 3rd or 4th quartile had underperformed.
Vivek Tanneeru is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets Sustainable Future, Emerging Markets Small Companies, Emerging Markets Discovery, Asia Discovery and Asia Sustainable Future Strategies. Prior to joining Matthews in 2011, Vivek was an Investment Manager on the Global Emerging Markets team of Pictet Asset Management in London. While at Pictet, he also worked on the firm’s Global Equities team, managing Japan and Asia ex-Japan markets. Before earning his MBA from the London Business School in 2006, Vivek was a Business Systems Officer at The World Bank and served as a Consultant at Arthur Andersen Business Consulting and Citicorp Infotech Industries. He interned at Generation Investment Management while studying for his MBA Vivek received his Master’s in Finance from the Birla Institute of Technology & Science in India. He is fluent in Hindi and Telugu.
Jeremy Sutch is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets ex China Strategy and co-manages the firm’s Emerging Markets Equity, Emerging Markets Small Companies, Emerging Markets Discovery, Asia Discovery, Asia ex Japan Total Return Equity and Pacific Tiger Strategies. Prior to joining Matthews in 2015, he was Director and Global Head of Emerging Companies at Standard Chartered Bank in Hong Kong from 2012 to 2015, responsible for the fundamental analysis of companies in Asia, with a particular focus on small- and mid-capitalization companies. From 2009 to 2012, he was Managing Director at MJP Capital in Hong Kong, which he co-founded. His prior experience has included managing small-cap equities at Indus Capital Advisors and serving as Head of Hong Kong Research for ABN AMRO Asia Securities. Jeremy earned an M.A. in French and History from the University of Edinburgh.
Alex Zarechnak is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets Equity and Emerging Markets ex China Strategies and co-manages the Emerging Markets Small Companies, Emerging Markets Discovery, and Emerging Markets Sustainable Future Strategies. Prior to joining the firm in 2020, he spent a total of 15 years (1998 – 2006 and 2012 – 2019) at Wellington Management as an analyst for the firm’s flagship Emerging Markets Equity fund as a generalist first covering CEEMEA, then Latin America. From 2006-2012, he was a regional equity analyst at Capital Group, covering Emerging Markets with a focus on energy, telecoms and consumer sectors in Latin America and CEEMEA. Alex began his Emerging Markets career as a Russia equity analyst with Templeton Emerging Markets, based in Moscow. He earned a B.A. in Economics and Government from the College of William & Mary. Alex is fluent in Russian.
Hardy Zhu is a Portfolio Manager at Matthews and co manages the firm’s Asia Discovery, China, China Small Companies, China Dividend, China Total Return Equity, China Discovery, China A-Share, Emerging Markets Small Companies and Emerging Markets Discovery Strategies. Prior to joining the firm in 2011, Hardy was an Equity Analyst with Delaware Investments researching Chinese equities. Before earning his MBA from Duke University in 2007, Hardy was a senior accountant at PNC Global Investment Servicing from 2000 to 2005. Hardy began his career at China National Nonferrous Metals Import & Export Co., one of the largest state-owned international trading companies in China. He received a Master of Accounting degree from the Virginia Polytechnic Institute and State University and a B.S. in Industrial Foreign Trade from Shenyang Polytechnic University in China. Hardy is fluent in Mandarin.
Portfolio Characteristics
(as of 09/30/2024)
Fund
Benchmark
Number of Positions
79
2,060
Weighted Average Market Cap
$4.6 billion
$2.2 billion
Active Share
99.8
n.a.
P/E using FY1 estimates
15.8x
15.0x
P/E using FY2 estimates
13.6x
13.0x
Price/Cash Flow
10.1
8.8
Price/Book
2.2
1.6
Return On Equity
11.1
12.8
EPS Growth (3 Yr)
27.4%
21.4%
Sources: Factset Research Systems, Inc.
Risk Metrics (3 Yr Return)
(as of 06/30/2024)
Category
3YR Return Metric
Alpha
-1.72%
Beta
0.94
Upside Capture
78.25%
Downside Capture
91.17%
Sharpe Ratio
-0.13
Information Ratio
-0.22
Tracking Error
9.34%
R²
70.37
-1.72%
Alpha
0.94
Beta
78.25%
Upside Capture
91.17%
Downside Capture
-0.13
Sharpe Ratio
-0.22
Information Ratio
9.34%
Tracking Error
70.37
R²
Fund Risk Metrics are reflective of Investor share class.
Top 10 holdings may combine more than one security from the same issuer and related depositary receipts. Source: BNY Mellon Investment Servicing (US) Inc.
Portfolio Breakdown (%)
(as of 09/30/2024)
Sector Allocation
Country Allocation
Market Cap Exposure
Sector
Fund
Benchmark
Difference
Industrials
21.6
18.2
3.4
Consumer Discretionary
20.4
11.9
8.5
Financials
18.8
10.8
8.0
Information Technology
18.4
16.6
1.8
Health Care
9.8
9.3
0.5
Real Estate
5.9
6.5
-0.6
Consumer Staples
4.1
6.3
-2.2
Materials
1.6
11.3
-9.7
Communication Services
1.6
3.7
-2.1
Utilities
0.3
3.4
-3.1
Energy
0.0
1.8
-1.8
Liabilities in Excess of Cash and Other Assets
-2.5
0.0
-2.5
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Country
Fund
Benchmark
Difference
China/Hong Kong
27.1
9.4
17.7
India
24.9
29.6
-4.7
Taiwan
11.6
21.2
-9.6
Brazil
8.9
3.3
5.6
South Korea
8.7
11.3
-2.6
Vietnam
5.1
0.0
5.1
South Africa
3.2
3.6
-0.4
Philippines
2.7
0.7
2.0
Chile
2.3
0.7
1.6
Saudi Arabia
2.1
3.7
-1.6
Indonesia
1.8
2.0
-0.2
Poland
1.8
1.3
0.5
Turkey
1.1
1.9
-0.8
Thailand
0.6
3.2
-2.6
Bangladesh
0.5
0.0
0.5
Malaysia
0.0
2.8
-2.8
Mexico
0.0
1.2
-1.2
United Arab Emirates
0.0
1.1
-1.1
Kuwait
0.0
1.0
-1.0
Greece
0.0
0.8
-0.8
Qatar
0.0
0.6
-0.6
Egypt
0.0
0.2
-0.2
Colombia
0.0
0.1
-0.1
Hungary
0.0
0.1
-0.1
Peru
0.0
0.1
-0.1
Liabilities in Excess of Cash and Other Assets
-2.5
0.0
-2.5
Not all countries are included in the benchmark index(es).
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
0.0
0.0
0.0
Large Cap ($10B-$25B)
8.1
0.1
8.0
Mid Cap ($3B-$10B)
47.2
21.7
25.5
Small Cap (under $3B)
47.3
78.1
-30.8
Liabilities in Excess of Cash and Other Assets
-2.5
0.0
-2.5
The Portfolio’s market cap exposure breakdown presented is used for comparison purposes and the definition of the capitalization breakdown is from MSCI.
The Fund defines Small Companies as companies with market capitalization no higher than the greater of US$5 billion or the market capitalization of the largest company included in the Fund's primary benchmark, the MSCI Emerging Markets Small Cap Index.
Source: FactSet Research Systems.
Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.
There is no guarantee that the Fund will pay or continue to pay distributions.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.
Emerging markets performed well overall despite experiencing volatility related to concerns over a U.S. slowdown, China’s economic headwinds and sustainability of the artificial intelligence (AI) boom. Toward the end of the quarter, the Federal Reserve’s 50 basis point (O.50%) interest rate cut—and expectations of further cuts—helped to support market gains.
India’s equity market delivered a robust performance. Economic growth rates remain high and following the formation of a coalition government after the general election, there are signs that growth is becoming more balanced to include services and consumption as well as infrastructure and industry.
In North Asia, Taiwan’s technology-heavy market was challenged despite the potential growth opportunities that AI-linked segments offer, in part as prior performance had been strong and as questions arose over valuations. South Korea’s market underperformed against the benchmark with semiconductor stocks particularly soft. Meanwhile, China’s economy continued to struggle with weak consumer sentiment and declining property prices. Toward the end of the quarter its markets rallied after the central bank launched a broad stimulus package with measures to add liquidity, aid the property market and boost equity markets.
Latin America’s major markets faced their own domestic headwinds. In Mexico, uncertainty over potential policies by the new president and their impact for the private sector weighed on market performance and sentiment. Meanwhile Brazil’s equity markets posted resilient performance. However, inflation remained high and the central bank is currently in a rate-increasing cycle.
Contributors and Detractors
For the quarter ended September 30, 2024, the Matthews Emerging Markets Small Companies Fund returned 6.80%, (Investor Class) and 6.89% (Institutional Class) while its benchmark, the MSCI Emerging Markets Small Cap Index, returned 5.64% over the same period.
On a country basis, the top three contributors to relative performance were China/Hong Kong due to an overweight allocation, Brazil and India due to stock selection. The top three detractors were Taiwan due to stock selection, Thailand due to an underweight allocation and Saudi Arabia due to stock selection.
On a sector basis, the top three contributors to relative performance were industrials, consumer discretionary and financials due to stock selection. The top three detractors were information technology (IT), health care and materials due to stock selection.
The largest contributors to absolute performance included Shriram Finance, an Indian financial services provider, Inox Wind, an Indian provider of wind power solutions, and Grupo SBF, a Brazilian sporting goods retailer. The top three detractors included M31 Technology, a Taiwanese silicon intellectual property (IP) provider, Wiwynn, a Taiwanese computer manufacturing company, and Eugene Technology, a wafer fab tool manufacturer.
Outlook
The Fed’s rate cut will, we think, provide an impetus for a number of central banks in emerging markets to cut their own rates which should be favorable for businesses and economies. This is a significant turning point particularly for economies in Asia in our view. Fed rate cuts typically also bring downward pressure on the U.S. dollar which is often a tailwind for emerging economies.
In China, it will take time to see if the stimulus measures provide a sustainable catalyst for recovery. Corporate earnings are coming through in some areas including e-commerce and internet platforms. Companies more directly tied to China’s domestic economy are facing greater challenges with margins on certain consumer sectors still under pressure.
In India, earnings growth is feeding through to equity returns but valuations remain expensive. Thus, finding businesses where rates of growth support valuation multiples is critical. Across emerging markets, we expect volatility to continue, particularly as we approach and pass through the U.S. election. Further out, we think market performance will start to center around domestic economic expansion and less on specific drivers like U.S. technology-related growth.
View the Fund’s Top 10 holdings as of September 30, 2024. Current and future holdings are subject to change and risk.
Average Annual Total Returns - MSMLX as of 09/30/2024
1YR
3YR
5YR
10YR
Since Inception
Inception Date
12.80%
2.77%
14.28%
7.49%
11.08%
09/15/2008
All performance quoted is past performance and is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, 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
Fees & Expenses
Gross Expense Ratio
1.34%
Net Expense Ratio
1.34%
Matthews has contractually agreed to waive fees and reimburse expenses to limit the Total Annual Fund Operating Expenses until April 30, 2025. Please see the Fund’s prospectus for additional details.
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. Additionally, investing in emerging and frontier securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund is non-diversified as it concentrates its investments in small sized companies. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock markets of China, India, Indonesia, Malaysia, Pakistan, Philippines, South Korea, Taiwan and Thailand. The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization weighted small cap index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungry, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan Thailand, Turkey and United Arab Emirates.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The Korea Composite Stock Price Index (KOSPI) is a market capitalization–weighted index of all common stocks listed on the Korea Stock Exchange.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
The MSCI Korea Index is a free float-adjusted market capitalization-weighted index of Korean equities listed in Korea.
The MSCI Korea 25/50 Index is designed to measure the performance of the large and mid cap segments of the Korean market. It applies certain investment limits that are imposed on regulated investment companies, or RICs, under the current US Internal Revenue Code.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.
The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Neither the funds nor the Investment Advisor accept any liability for losses either direct or consequential caused by the use of this information.
The views and opinions in the commentary were as of the report date, subject to change and may not reflect current views. 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 the Fund's future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.
Commentary
Period ended September 30, 2024
Market Environment
Contributors and Detractors
Outlook
View the Fund’s Top 10 holdings as of September 30, 2024. Current and future holdings are subject to change and risk.
Average Annual Total Returns - MSMLX as of 09/30/2024
All performance quoted is past performance and is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, 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
Fees & Expenses
Matthews has contractually agreed to waive fees and reimburse expenses to limit the Total Annual Fund Operating Expenses until April 30, 2025. Please see the Fund’s prospectus for additional details.
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. Additionally, investing in emerging and frontier securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund is non-diversified as it concentrates its investments in small sized companies. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies.