Investing in the Future of Asia - Matthews Asia Dividend Fund
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Investing in the
Future of Asia
Matthews Asia Dividend Fund
Matthews Asia I Q4 2021
Investments involve risks, including possible loss of principal. Investments in international,
emerging and frontier markets involve risks such as economic, social and political instability,
market illiquidity, currency fluctuations, high levels of volatility, and limited regulation, which
may adversely affect the value of the Fund's assets. Additionally, investing in emerging and
frontier securities involves greater risks than investing in securities of developed markets, as
issuers in these countries generally disclose less financial and other information publicly or
restrict access to certain information from review by non-domestic authorities. Emerging and
frontier markets tend to have less stringent and less uniform accounting, auditing and financial
reporting standards, limited regulatory or governmental oversight, and limited investor
protection or rights to take action against issuers, resulting in potential material risks to
investors.
Investing in small- and mid-size companies is more risky than investing in larger companies as
they may be more volatile and less liquid than large companies. In addition, single-country
funds may be subject to a higher degree of market risk than diversified funds because of
concentration in a specific industry, sector or geographic location. Pandemics and other public
health emergencies can result in market volatility and disruption.
For institutional use only. Do not give, show or quote to any other person. Not to be used with
retail investors. Do not duplicate or reproduce.
• © 2022 Matthews International Capital Management, LLC PT001b_4Q21
A Boutique Asset Management Firm
Clients include global institutional investors, family offices, private bank professionals and high net-worth investors
150+ 30+
Employees Years invested in
Asia
4 US$25.2 BN
38 Locations
Investment Assets under
professionals* San Francisco, London, management
Hong Kong, Shanghai
*As of January 5, 2022.
Note: Regional Strategy AUM $19.3 BN, Single-country AUM $5.9 BN, total firm China (including HK) exposure $10.0 BN.
Assets under management may rise or fall due to market conditions and other factors.
Please visit matthewsasia.com for current AUM.
Data as of December 31, 2021
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 2
A History of Resilience and Innovation
Firm Milestones Product Milestones
1991
G. Paul Matthews 2010 2020
2016 Matthews Launches
founds Matthews Asia G. Paul Matthews Matthews
1999 first Global Emerging
introduces off- Asia becomes
1995 Launch of our Asia Markets Strategy
shore funds for a UNPRI
Launch of our first Innovators Strategy
non U.S. investors signatory
single country strategy,
Korea
2003 2011 2018
Launch of our first all Launch of our first China
1995 country Asia Pacific fixed income reaches
Matthews Asia begins strategy, Asia growth strategy, Asia Total 20-year
following China’s A- Return Bond* anniversary
Share market
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Asian Financial Crisis SARS Outbreak Global Financial Crisis 2015
Launch of our first
ESG strategy, Asia ESG
1994 1998 2008 2014
Launch of our Launch of our Launch of our first Matthews Asia is
first regional first China completion strategy, awarded Qualified
core strategies, strategy, China Emerging Markets Foreign Institutional
Pacific Tiger & Small Companies** Investor (QFII) license
Asian Growth to invest in China’s A-
and Income Share Market
*Formerly known as Asia Strategic Income **Formerly known as Asia Small Companies
Matthews Asia
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 3
Personal
Connections
The cornerstone of our research process is deep engagement with
company management, on the ground and in person.
“At Matthews Asia, we conducted over 3,600 meetings in 2020, including
3,400 virtual meetings— creating deep connections with companies”
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 4
Our Investment Team—Truly Local Knowledge and Insights*
Our team conducted over 3,600 due diligence meetings in 2020, including 3,400 virtual meetings
LOCAL KNOWLEDGE AND EXPERIENCE DIVERSE BACKGROUNDS AND COUNTRIES
63% born in Asia
71% lived or worked in Asia U.K. (3)
74% Asian language speakers South Korea (6)
China (9) Japan (2)
U.S. (9)
India (4)
NATIVE LANGUAGES AND DIALECTS SPOKEN El Salvador (1) Hong Kong (2)
Bengali Japanese Hindi
Singapore (1)
Cantonese Mandarin Telugu
Gujarati Shanghainese Korean
Hokkien Australia (1)
*As of January 5, 2022.
Map does not represent relative size of country.
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 5
Senior Investment Team Members—Redefining “Local”
Senior Investment Team Members Years of Experience
Name Investment Focus Asia Industry Firm Countries Lived In Languages & Dialects Spoken
Robert Horrocks, PhD Asia Regional 28 28 15 China, Hong Kong, Taiwan, Korea Mandarin
Siddharth Bhargava Asia Regional 17 11 11 India Hindi
Winnie Chwang China Small Cap, China 18 18 18 Singapore Mandarin, Cantonese
Kathlyn Collins, CAIA Asia ESG 7 7 4 N/A N/A
David Dali Broad EM 25 33 7 N/A N/A
Taizo Ishida Japan, Asia Growth 32 38 16 Japan, Bangladesh Japanese
Teresa Kong, CFA Asia Debt 21 27 12 Hong Kong, China Cantonese
John Paul Lech Emerging Markets 14 17 4 N/A Spanish, French, Portuguese
Kenneth Lowe, CFA Asia Regional 16 16 12 N/A N/A
Elli Lee Korea, Asia Regional 19 19 6 South Korea, Hong Kong Korean
S. Joyce Li, CFA Asia Regional 16 16 6 China Mandarin, Cantonese
Andrew Mattock, CFA China, China Small Cap 23 27 7 Singapore N/A
Peeyush Mittal, CFA India 13 13 7 India Hindi
Michael Oh, CFA Korea, Asia Regional 22 22 22 South Korea Korean
Satya Patel Asia Debt, Asia Regional 11 15 11 N/A Gujarati
Andy Rothman China 38 38 8 China, Indonesia Mandarin
Tiffany Shi, CFA China, Asia Regional 12 12 7 Hong Kong, China, Taiwan, Singapore Shanghainese, Cantonese, Mandarin
Sharat Shroff, CFA Asia Regional, India 19 22 17 Hong Kong, India, Taiwan Hindi, Bengali
Inbok Song Asia Regional 17 17 11 Korea Korean
Jeremy Sutch, CFA Asia Regional, Asia Small Cap 27 27 7 China, Hong Kong N/A
Shuntaro Takeuchi Japan 17 21 6 Japan Japanese
Vivek Tanneeru Asia ESG, EM Small, Asia Regional 17 17 11 India Telegu, Hindi
Alex Zarechnak Emerging Markets 27 27 2 Russia Russian
Sherwood Zhang, CFA China, Asia Regional 14 19 11 China, Hong Kong Mandarin, Cantonese
Yu Zhang, CFA China, Asia Regional 17 17 15 China, Japan Mandarin
Julia Zhu China 21 21 4 China, Hong Kong Mandarin
Years of experience as of January 2022
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 6
Matthews Asia Investment Team*—Highly Collaborative Environment
Chief Investment Officer Analysts
Robert J. Horrocks, PhD Donghoon Han Open Communication and Exchange of Ideas
Portfolio Managers Qiang Li
Siddharth Bhargava Jason Ng Formal
Winnie Chwang Bo Ning
— Weekly all-hands meeting to discuss macro,
Robert J. Horrocks, PhD Sojung Park
stock ideas, trip debriefs and ad-hoc topics
Taizo Ishida Jeremy Sutch, CFA
Teresa Kong, CFA Xiaobin Xu, PhD — Bi-weekly portfolio review meeting to review
John Paul Lech Alex Zarechnak trades, macro, risk
Elli Lee Hardy Zhu — Monthly portfolio compliance meeting to
S. Joyce Li, CFA Julia Zhu discuss potential compliance matters
Kenneth Lowe, CFA
Andrew Mattock, CFA Macro Investment — Weekly strategy-specific team meeting to
Peeyush Mittal, CFA Strategist, China discuss specific portfolio construction issues
Michael J. Oh, CFA Andy Rothman or individual stocks
Satya Patel — Committee meetings: Trade Management
Sharat Shroff, CFA Oversight, Investment Risk, other
Portfolio Strategists
Inbok Song
David Dali
Shuntaro Takeuchi
Vivek Tanneeru
Tiffany Shi, CFA, CAIA Informal
Sherwood Zhang, CFA — Sit together—open floor plan
Yu Zhang, CFA Head of ESG
— Daily ad-hoc meetings around trip debriefs,
Wei Zhang Kathlyn Collins, CAIA
fixed income insights, macro strategy, team
structure and process, new product ideas, etc.
• *As of January 5, 2022.
• Note: Traders not referenced above but are included in overall investment team count.
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 7
Matthews Asia—“Boots on-the-Ground”
Fundamental, bottom-up investment process
3,400+ On-Site Meetings in Asia Since 2017*
Identifying investment opportunities that stand to prosper
Korea
from Asia’s transformation calls for in-depth, on-the-
180+ Japan
China ground, bottom-up research and active management:
610
820+ Over 2,600 company meetings in 2019 and over
Hong
3,600 meetings in 2020, including 3,400 virtual
Macau Kong Taiwan
Bangladesh 8 meetings
India 20+
Myanmar Vietnam
630+ 140+
265 2 60+ Half of the meetings are on-site visits in Asia in
Philippines locations ranging from Asian financial centers to
Thailand 75+
Sri Lanka 180+ remote island outposts
Malaysia
15+ 45
Indonesia
120+
Singapore
160+
Australia
50+
New Zealand
9
• *From 1/1/2017 to 12/31/2019
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 8
Fundamental Research and Due Diligence
What We Look For How We Do This
Business
Survivability—strength of balance sheet Financial and
Watch List or
Sustainability—ability to maintain Portfolio Entry
Business Model
Analysis
reasonable rates of long-term growth
Management
Competence—ability to meet
Fundamental
business targets and milestones Valuation Valuation Business Research
Assessment and
Incentive structure Due Diligence
Corporate governance assessment Management
Valuation
Value of the business as a whole Company Corporate
in the context of future growth Meetings and Governance and
Interviews Management Quality
Assessment
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 9
Risk Management
We continuously monitor a myriad of potential risks within and across portfolios
We believe business risk is the most important risk meriting attention throughout the
investment process. We focus on:
— Franchise
1. Survivability of a business
— Management 2. Sustainability of its growth
— Corporate Governance
Security risk:
— Valuation
— Liquidity
Macro risks:
— Policy and Regulatory
— Geopolitical
Behavioral and emotional risks
Portfolio construction risk monitored at Lead Manager and CIO level
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 10Strategies for Investing in Asia
Matthews Asia offers a range of strategies across the risk-reward spectrum
GLOBAL EMERGING MARKETS
Emerging Markets Equity
Emerging Markets Small Companies*
ASIA GROWTH
Asia Growth China
Pacific Tiger China Small Companies
Asia ESG India
Asia Innovators Japan
Korea
ASIA GROWTH AND INCOME ASIA FIXED INCOME
Asian Growth and Income Asia Total Return Bond
Asia Dividend Asia Credit Opportunities
China Dividend
• *Formerly known as Asia Small Companies
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 11Three Pillars of ESG Integration
Committed to incorporating ESG considerations within the very fabric of our investment process
Long-Term Alpha Generation
FIRM-WIDE ARCHITECTURE INVESTMENT TEAM INVESTMENT STRATEGIES
Alignment of Mission, Culture and Talent Foundations for ESG Integration: Tailored ESG Integration by Strategy:
to Support Performance Goals:
Company Engagement Active Security Selection: Fundamental
Mission: Champion Asia investment Responsible Investment & Stewardship and bottom-up investment process
solutions that build wealth for our global Policy Materiality: ESG issues are considered
clients over the long term where material for industry or sector
Emphasis on Governance: Deep
Culture: Diverse teams create better Context Matters: Each strategy draws
understanding of corporate governance across
outcomes for clients. Culture Working on ESG inputs in a way that reflects:
markets, strong focus across all strategies
Group, Diversity & Inclusion Working — Objectives and philosophy
Group and Sustainability Working Group ESG Research: Third party data and research
complemented by proprietary tools and — Availability of ESG data within the
Commitment: UNPRI Signatory strategy’s universe
analysis
— Market cap of securities the strategy
COMMUNITY AND ENVIRONMENT Risk Monitoring: Reputational risk screening invests in
― Matthews Asia Charitable Giving tool — Region or country and stage of
― Annual employee volunteer day Oversight Structures: Corporate Governance development
― LEED certified HQ since 2014 & Stewardship Sub-Committee — Materiality: ESG issues are considered
― Carbon offsets for firm-wide travel Industry Collaboration and Memberships: where material for industry or sector
emissions Asian Corporate Governance Association, Appreciation for Client Preferences
International Corporate Governance Network, CDP
•ESG considerations are not a specific requirement for all portfolios at Matthews Asia. ESG factors can vary over different periods and can evolve over
time. They may also be difficult to apply consistently across regions, countries or sectors. There can be no guarantee that a company deemed to meet
ESG standards will actually conduct its affairs in a manner that is less destructive to the environment, or promote positive social and economic
developments. Parameters set by Matthews Asia are subject to change. While we generally do not employ negative screens based on environmental or
social factors, poor corporate governance may exclude an issuer from consideration for our portfolios.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 12A Firm
Apart
Independence Focus Experience Accountability
+ Vision + Responsibility + Resilience + Teamwork
As an independent, Being a specialist in our asset Performing through decades Each of our strategies has a
privately held firm, we are classes allows our investment of market and economic Lead Manager(s) who is
able to apply a long-term teams to focus on the best, cycles, our portfolios are well- clearly accountable to our
horizon to investing in our long-term opportunities - tested and our investment clients for performance and
business and the portfolios backed by a firm-wide teams have extensive who leverages the
we manage for clients. commitment to stewardship experience navigating Asian intellectual capital of the
and ESG integration. and Global Emerging markets. entire investment team.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 13Fund Profile | Matthews Asia Dividend Fund
FUND FACTS Investment Objective
Inception Date Total return with an emphasis on providing current income.
Investor Class: 10/31/06
Institutional Class: 10/29/10 Approach
Ticker Invest in companies that offer attractive dividend payments relative to their
Investor Class: MAPIX current share price and/or have the propensity to grow their dividends over
Institutional Class: MIPIX a three-year period.
Cap Range
All Cap
Number of Holdings
50 to 80 Lead Managers Co-Managers
Turnover Range
20% to 40%
Benchmark
MSCI All Country Asia Pacific
Index
YU ZHANG, CFA S. JOYCE LI, CFA ROBERT HORROCKS, PhD SHERWOOD ZHANG, CFA
There is no guarantee that the Matthews Asia Dividend Fund or the companies in its portfolio will pay or continue to pay dividends.
This presentation must be preceded or accompanied by a Matthews Asia Funds prospectus.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 14Seasoned Asia Dividend Team with a Long Term Track Record*
Supported by Knowledge Platforms, Strategists, and On-the-Ground Resources
Located in Asia
ASIA DIVIDEND TEAM† Knowledge Platform Lead
Yu Zhang, CFA S. Joyce Li, CFA Robert Horrocks, PhD Sherwood Zhang, CFA
Portfolio Lead Manager Lead Manager Co Manager Co Manager
Managers 17 years of exp. 16 years of exp. 28 years of exp. 21 years of exp.
Winnie Chwang Andrew Mattock, CFA Hardy Zhu Yu Zhang, CFA
Portfolio Manager Portfolio Manager Senior Research Analyst Portfolio Manager
18 years of exp. 27 years of exp. 15 years of exp. 17 years of exp.
China Sherwood Zhang, CFA Wei Zhang
S. Joyce Li, CFA Tiffany Shi, CFA
Knowledge Portfolio Manager Portfolio Manager Portfolio Strategist Portfolio Manager
Platform 21 years of exp. 16 years of exp. 12 years of exp. 16 years of exp.
Bo Ning
Research Analyst
7 years of exp.
India Peeyush Mittal, CFA Siddharth Bhargava Vivek Tanneeru Jeremy Sutch, CFA
Knowledge Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager
13 years of exp. 17 years of exp. 17 years of exp. 27 years of exp.
Platform
InBok Song Elli Lee, CFA Sojung Park Jason Ng
Portfolio Manager Portfolio Manager Senior Research Analyst Research Analyst
Innovation 10 years of exp. 9 years of exp.
17 years of exp. 19 years of exp.
Knowledge
Platform Michael Oh, CFA Alex Zarechnak Donghoon Han
Portfolio Manager Senior Research Analyst Senior Research Analyst
22 years of exp. 27 years of exp. 11 years of exp.
Health Care Taizo Ishida Vivek Tanneeru Tiffany Shi, CFA Xiaobin Xu, PhD
Knowledge Portfolio Manager Portfolio Manager Portfolio Strategist Health Care Analyst
Platform 38 years of exp. 17 years of exp. 12 years of exp.Dividends Contribute to Total Return
Breakdown of total returns (MSCI Indices, 2000 – 2021)
600%
500%
400%
300%
200%
100%
0%
-100%
China Asia ex Japan Australia Europe USA Japan U.K.
Dividend Return Price Return
US$ returns.
Time period: December 31, 1999 – December 31, 2021
Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible to
invest directly in an index.
Source: FactSet Research Systems
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 16Dividends—How Asia Compares to Europe and the U.S.
Asia
Europe
U.S.
2.3% 8.4%
$629
1.9%
6.1%
$452
1.4%
$366
3.7%
Size of Dividend Pool (Bil US$)* Dividend Yield** Dividend Growth (2002-2020)***
*2020 dividends by index members as of June 30, 2020; Europe (Bloomberg European 500 Index), Asia Pacific (MSCI AC Asia Pacific Index), U.S. (S&P
500 Index).
**Trailing Dividend yield estimates for 2020 as of 12/31/21 based on FactSet aggregates.
*** Compound annual growth rate (CAGR) based on index constituents of Europe (Bloomberg European 500 Index), Asia Pacific (MSCI AC Asia Pacific
Index), U.S. (S&P 500 Index) as of 12/31/02, excluding those that are no longer in existence as of fiscal year 2020. Sources: FactSet Research Systems,
MSCI, S&P, Bloomberg
Past performance is no guarantee of future results. Indexes are unmanaged and it is not possible
to invest directly in an index.
Sources: FactSet Research Systems, MSCI, S&P, Bloomberg
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 17Investment Returns | Matthews Asia Dividend Fund
As of December 31, 2021
AVERAGE ANNUAL TOTAL RETURNS
Since Inception
3 Months 1 Year 3 Years 5 Years 10 Years (10/31/2006)
12.34% 12.41%
10.76%
10.23%
9.29% 9.09%
8.29%
5.25%
-1.19%
-1.80%
-2.42% -2.83%
Matthews Asia Dividend Fund (Investor Class) MSCI All Country Asia Pacific Index
Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted
represents past performance and is no guarantee of future results. Investment return and principal value will
fluctuate with market conditions so that when redeemed, shares may be worth more or less than their original cost.
Current performance may be lower or higher than the return figures quoted. Returns would have been lower if
certain of the Fund’s fees and expenses had not been waived. For the Fund’s most recent month-end performance
visit matthewsasia.com. Indexes are unmanaged and it is not possible to invest directly in an index. Please refer to
disclosures for index definition.
Index since inception value calculated from 10/31/2006
Sources: BNY Mellon Investment Servicing, Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 18Matthews Asia Dividend Fund vs. MSCI AC Asia Pacific Index Return Breakout
October 31, 2006 through December 31, 2021
Cumulative Return
200% 188.9
180%
160%
141.9
140%
118.6
120%
101.1
100%
80% 71.7
60% 46.9
40%
20%
0%
Income Return Capital Return Total Return Including Fees and Expense
Accruals
Matthews Asia Dividend Fund (Investor Class) MSCI All Country Asia Pacific Index
Past performance is no guarantee of future results. Returns are calculated with a holdings-based methodology
using software supplied by FactSet Research Systems, Inc. Income Return and Capital Return are for positions only
and exclude fees and expense accruals. Returns will not equate to the standard, published performance for the
Fund. The characteristics shown may not be representative of the Fund's current or future investments. Indexes are
unmanaged and it is not possible to invest directly in an index. Please refer to the disclosures for index definition.
Source: FactSet Research Systems, Inc.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 19Historical Results | Matthews Asia Dividend Fund
Attempts to offer more stable means to Asia’s growth while striving to limit the downside
UPSIDE/DOWNSIDE CAPTURE OCTOBER 31, 2006 TO DECEMBER 31, 2021
Up Markets Down Markets All Markets
3.16% 3.44%
90.5% 0.82% 0.54%
75.7%
-2.69%
-3.78%
Matthews Asia Dividend Fund (Investor Class) MSCI AC Asia Pacific Index
The up and down capture is a measure of how well a manager was able to replicate or improve on phases of positive
average monthly benchmark returns, and how adversely the manager was affected by phases of negative average
monthly benchmark returns. Inception to date, the Fund had a 90.5% upside capture and a 75.7% downside capture.
Returns reflect performance in the Investor Share Class. Assumes reinvestment of all dividends and/or distributions
before taxes. All performance quoted represents past performance and is no guarantee of future results.
Investment return and principal value will fluctuate with market conditions so that when redeemed, shares may be
worth more or less than their original cost. Current performance may be lower or higher than the return figures
quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived. For the
Fund’s most recent month-end performance visit matthewsasia.com. Indexes are unmanaged and it is not possible
to invest directly in an index. Please refer to the disclosure for index definitions.
Sources: Morningstar, Zephyr StyleADVISOR
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 20Case Study | Taiwan Semiconductor Manufacturing Co. (TSMC)
Historically steady dividend payer
CASH FLOW GENERATION ABILITY TO PAY DIVIDEND
TWD (millions) DPS — Global leader in leading edge semiconductor
1,000,000 12 manufacturing located in Taiwan
800,000 — Well positioned for advanced semiconductors used
10
600,000 in mobile devices and data centers
8 — High pricing power and cash flow visibility
400,000
throughout cycle
200,000 6
WILLINGNESS TO PAY DIVIDEND
0
4
— The company paid out between 50% and 70% of
-200,000
2 earnings in dividends over the past five years
-400,000
DIVIDEND YIELD
-600,000 0
FY 2016 FY 2017 FY 2018 FY 2019 FY2020 — Dividend yield is 1.6%*
Capital Expenditures Cash From Operations
Free Cash Flow DPS (TWD)
*Dividend Yield figure from Bloomberg as 12/31/2021
There is no guarantee that a company will maintain or grow its dividend pay-out ratio, or pay dividends. The information in this case
study is presented solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of the
security discussed (the “Security”), nor a representation as to whether the Security is currently held by the Fund. The results of any
possible investment in the Security are not representative of the results of other investments by the Fund. Performance of the Fund
and a list of current holdings as of a recent date are available at matthewsasia.com. Past performance is no guarantee of future
results. The statements above are based on the beliefs and assumptions of our portfolio management team and on the information
currently available to our team at the time of such statements. Although we believe that the expectations reflected in these
statements are reasonable, we can give no assurance that these expectations will prove to be correct.
Sources: Bloomberg, Matthews Asia
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© 2022 Matthews International Capital Management, LLC PT001b_Q421 21Case Study | Pharmaron Beijing
Dividend grower: leading lab and clinical development service provider that recently initiated dividends
CASH FLOW GENERATION ABILITY TO PAY DIVIDEND
CNY (MN) DPS — Leading lab and clinical development service
2,000 0.35 provider with focus on small molecule
1,500 0.30 — The company is in rapid growth phase with
revenue up 214% from 2016 to 2020
1,000 0.25
— With rising scale, the company turned
500 0.20 profitable in 2016 and its free cash flow turned
positive in 2018
0 0.15
WILLINGNESS TO PAY DIVIDEND
-500 0.10
— Company initiated dividend in 2018 and since
-1,000 0.05 then paid around 20% of earnings in dividends
-1,500 0.00 DIVIDEND GROWTH
FY2016 FY2017 FY2018 FY2019 FY2020 — Dividends per share grew 100% in 2020
— We expect dividends to grow along with free
Capital Expenditures Cash From Operations cash flow growth
Free Cash Flow DPS (CNY) — Dividend yield is 0.3%*
An investment in Matthews Asia Funds is subject to risks. Please refer to the cover slide for a more
detailed outline of the associated risks.
*Trailing Dividend Yield figure from Bloomberg as of 12/31/2021
There is no guarantee that a company will maintain or grow its dividend pay-out ratio, or pay dividends. The information in this case
study is presented solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of the
security discussed (the “Security”), nor a representation as to whether the Security is currently held by the Fund. The results of any
possible investment in the Security are not representative of the results of other investments by the Fund. Performance of the Fund
and a list of current holdings as of a recent date are available at global.matthewsasia.com. Past performance is no guarantee of
future results. The statements above are based on the beliefs and assumptions of our portfolio management team and on the
information currently available to our team at the time of such statements. Although we believe that the expectations reflected in
these statements are reasonable, we can give no assurance that these expectations will prove to be correct.
Sources: Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 22Evolution of the Matthews Asia Dividend Portfolio
DIVIDEND PAYERS & GROWERS FOR ASIA DIVIDEND PORTFOLIO
34%
48% 44% 46% 50%
59%
66%
52% 56% 54% 50%
41%
2016 2017 2018 2019 2020 2021
Dividend Payers Dividend Growers
Information provided is for all holdings in the Matthews Asia Dividend portfolio as of December 31 for each respective year. Matthews Asia defines the categories of dividend
payers and dividend growers based on qualitative assessments. Dividend payers include companies with stable cash flow business models and high payout ratios, companies
with high dividend yields that Matthews Asia believes have ability to maintain their absolute dividend payment over the medium term, and companies in business turnaround
situations that Matthews Asia believes are conducive for high dividend payout in the future. Dividend growers include companies with low present dividend payout ratios and
high future dividend growth that Matthews Asia believes are supported by high cash flow growth and shareholder return policy enhancement in the future.
There is no guarantee that future dividend growth will be achieved. There is no guarantee that the composition of the portfolio will remain unchanged or that the companies in
the portfolio will achieve their forecasted dividend growth rate, maintain or grow their dividend pay-out ratio, or pay dividends. Past yields are no guarantee of future yields.
Source: Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 23Matthews Asia Dividend Fund Balances Dividend Yield and Growth
DIVIDEND YIELD VS. DIVIDEND GROWTH
3 Year Forward Dividend Growth
25%
Dividend Grower
24%
Portfolio
23%
22%
Dividend Payer
21%
20%
19%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Weighted Dividend Yield
Bubble sizes are in proportion to the aggregate portfolio weight of individual positions as of December 31, 2021, grouped into either
the dividend grower or dividend payer category. Center point of each bubble represents the average grouping’s weighted average
trailing dividend yield as of December 31, 2021 and its estimated 3-year annual dividend growth rate. Estimated 3-year dividend
growth rate was calculated as of December 31, 2021 using data from Bloomberg and our proprietary estimates and is forward
looking. Only portfolio holdings with positive trailing 12 months yield are included in the figure. There is no guarantee that future
dividend growth will be achieved. There is no guarantee that the composition of the portfolio will remain unchanged or that the
companies in the portfolio will achieve their forecasted dividend growth rate, maintain or grow their dividend pay-out ratio, or pay
dividends. Past yields are no guarantee of future yields.
Sources: Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 24Matthews Asia Dividend Fund Investment Process
All-cap universe of approximately 13,200 dividend-paying companies
1. Actionable
Market cap over US$1BN, average trading volume over US$5MN
Research Universe
Screening down to approximately 2,800 stocks
Plus: newly listed stocks set to initiate dividends in the near future
Quantitative screens
2. Idea Generation Management meetings and research trips
Collaboration with country and sector knowledge platforms
1. Actionable Defendable business models and attractive growth
6. Sell Discipline Research
Universe 3. Fundamental Favorable industry positioning and competitive landscape
Analysis Ability to generate cash flow to support dividend distribution
Strength of balance sheet to endure business cycles
5. Portfolio 2. Idea 4. Corporate Dividend policy consistent with business model and growth stage
Construction Generation Governance Management team incentives and shareholder interest alignment
Evaluation through Ability to generate sustainable free cash flow to support dividends
Dividend Lens Intention to improve on shareholder return policies
4.Corporate
Governance 3. Fundamental
Evaluation through 5. Portfolio Generally balanced allocation between dividend growers and payers
Analysis
Dividend Lens Construction Flexibility to tilt exposure based on macro environment and relative
valuation
Typical position size: 1.5%-3%, depending on market capitalization
6. Sell Discipline Total return of capital appreciation and dividend income no longer
meets our expectations
Material corporate governance breaches
Negative change in long-term ability or willingness to pay dividends
Parameters set by Matthews Asia are subject to change and may differ from the fundamental policy of the Fund.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 25Matthews Asia’s ESG Engagement Process
Committed to incorporating ESG considerations within the very fabric of our investment process
KEY ESG CRITERIA IDENTIFICATION ANALYSIS AND MONITORING DIRECT ENGAGEMENT
Environmental
̶ Decarbonization
̶ Efficiency
̶ Resource use
Identifying the company’s ESG Communicating concerns with
policies and strategies through company management teams
Social public disclosures, third party data, directly in the meetings
̶ Employee Engagement daily news monitoring and our own
̶ Diversity ESG scorecard Shareholder letters to suggest and
recommend our views on ESG
̶ Corporate Culture
Assessment of ESG strategy, matters
culture, and how the company's
management view ESG issues Active proxy voting
Governance through management meetings
̶ Ownership Structure Documentation of engagement
̶ Board Composition
̶ Incentive Structure
̶ Related Parties
̶ Capital Return Policy
ESG considerations are not a specific requirement for all portfolios at Matthews Asia. ESG factors can vary over different periods and
can evolve over time. They may also be difficult to apply consistently across regions, countries or sectors. There can be no guarantee
that a company deemed to meet ESG standards will actually conduct its affairs in a manner that is less destructive to the environment,
or promote positive social and economic developments. Parameters set by Matthews Asia are subject to change and may differ from
the fundamental policy of the Fund.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 26Competitive Returns | Matthews Asia Dividend Fund
As of December 31, 2021
AVERAGE ANNUAL TOTAL RETURNS
Year to Date 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date
Investor Class (MAPIX) -2.83% -2.83% 12.34% 10.76% 9.29% 9.09% 10/31/06
Institutional Class (MIPIX) -2.67% -2.67% 12.48% 10.87% 9.42% 7.66% 10/29/10
MSCI All Country Asia Pacific 1
-1.19% -1.19% 12.41% 10.23% 8.29% 5.25%
Index
Lipper International Equity 1
11.63% 11.63% 10.82% 7.66% 6.30% 4.10%
Income Funds Category Average
1 As of 10/31/2006
Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past
performance and is no guarantee of future results. Investment return and principal value will fluctuate with market
conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be
lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses
had not been waived. For the Fund’s most recent month-end performance visit matthewsasia.com. Indexes are unmanaged
and it is not possible to invest directly in an index. Please refer to disclosures for index definition.
The Lipper Category Average does not reflect sales charges and is based on total return,
including reinvestment of dividends and capital gains, for the stated periods.
Sources: BNY Mellon Investment Servicing, Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 27Portfolio Characteristics | Matthews Asia Dividend Fund
As of December 31, 2021
MARKET CAP EXPOSURE (%)
Fund Benchmark Difference
Mega Cap (over $25B) 24.7 62.2 -37.5
Large Cap ($10B-$25B) 23.5 21.8 1.7
Mid Cap ($3B-$10B) 40.3 15.3 25.0
Small Cap (under $3B) 9.4 0.6 8.8
Cash and Other Assets, Less Benchmark: MSCI All Country Asia Pacific Index
2.1 0.0 2.1
Liabilities
*The P/E Ratio is the share price of a stock as of the report date, divided by the
forecasted earnings per share for a 12-month period (FY1) and 24 month period
PORTFOLIO CHARACTERISTICS (FY2). For the Fund, this is the weighted harmonic average estimated P/E ratio of all
the underlying stocks in the Fund, excluding negative earners. There is no guarantee
Fund that the composition of the Fund will remain unchanged, or that forecasted earnings
of a stock will be realized. Information provided is for illustrative purposes only.
Assets $4.7 billion **The 30-Day SEC Yield represents net investment income earned by the Fund over
the 30-day period ended December 31, 2021, expressed as an annual percentage rate
Weighted Average Market Cap $57.2 billion based on the Fund’s share price at the end of the 30-day period. The 30-Day SEC Yield
should be regarded as an estimate of the Fund’s rate of investment income, and it
P/E using FY1 Estimates* 16.5x may not equal the Fund’s actual income distribution rate. Information provided is
unaudited. Past yields are no guarantee of future yields. Source: BNY Mellon
P/E using FY2 Estimates* 15.9x Investment Servicing
0.73% Investor Class, ***The Dividend Yield (trailing) for the portfolio is the weighted average sum of
(0.73% excluding expense waiver) the dividends paid by each equity security held by the Fund over the last 12 months
30-Day SEC Yield** divided by the current price as of report date. The annualized dividend yield for the
0.79% Inst’l Class, Fund is for the equity-only portion of the portfolio. Please note that this is based on
(0.78% excluding expense waiver) gross equity portfolio holdings and does not reflect the actual yield an investor in the
Fund would receive. Past yields are no guarantee of future yields.
Dividend Yield*** 1.83%
The information contained in this presentation does not, in any way, constitute investment advice.
Portfolio characteristics for the Fund may vary from time to time from what is shown.
Sources: FactSet Research Systems, Inc., Bloomberg, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 28Portfolio Characteristics | Matthews Asia Dividend Fund
As of December 31, 2021
COUNTRY ALLOCATION (%) SECTOR ALLOCATION (%)
Fund Benchmark Difference Fund Benchmark Difference
Japan 31.8 32.4 -0.6 Consumer Discretionary 26.5 15.4 11.1
China/Hong Kong 29.3 25.3 4.0
Communication Services 12.8 8.7 4.1
Australia 8.3 10.0 -1.7
Industrials 12.7 11.4 1.3
Vietnam 6.9 0.0 6.9
India 4.6 8.1 -3.5 Information Technology 11.0 20.3 -9.3
South Korea 4.4 8.4 -4.0 Financials 9.9 17.1 -7.2
Singapore 4.1 1.7 2.4 Real Estate 9.0 3.9 5.1
Taiwan 3.3 10.4 -7.1 Health Care 6.4 6.9 -0.5
Philippines 2.3 0.5 1.8
Materials 5.4 6.3 -0.9
Indonesia 1.7 0.9 0.8
Consumer Staples 4.2 5.6 -1.4
Bangladesh 1.2 0.0 1.2
Energy 0.0 2.2 -2.2
Thailand 0.0 1.1 -1.1
Malaysia 0.0 0.9 -0.9 Utilities 0.0 2.1 -2.1
New Zealand 0.0 0.3 -0.3 Cash and Other Assets,
2.1 0.0 2.1
Less Liabilities
Cash and Other Assets,
2.1 0.0 2.1
Less Liabilities
Benchmark: MSCI All Country Asia Pacific Index
The information contained in this presentation does not, in any way, constitute investment advice.
Portfolio characteristics for the Fund may vary from time to time from what is shown.
Sources: FactSet Research Systems, Inc., Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 29Top Ten Holdings | Matthews Asia Dividend Fund
As of December 31, 2021
Company Sector Country %
Minth Group, Ltd. Consumer Discretionary China/Hong Kong 5.7
Minda Industries, Ltd. Consumer Discretionary India 4.6
Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.8
KATITAS Co., Ltd. Real Estate Japan 3.4
Breville Group, Ltd. Consumer Discretionary Australia 3.4
Taiwan Semiconductor Manufacturing Co., Ltd. Information Technology Taiwan 3.3
MISUMI Group, Inc. Industrials Japan 2.9
IDP Education, Ltd. Consumer Discretionary Australia 2.7
Link REIT Real Estate China/Hong Kong 2.6
Globe Telecom, Inc. Communication Services Philippines 2.3
Total for Top 10 34.7%
This information does not, in any way, constitute investment advice. Portfolio holdings may vary from time to time from what is
shown. It should not be assumed that any investment in the securities listed was or will be profitable. The information does not
constitute a recommendation to buy or sell any securities mentioned.
Sources: BNY Mellon Investment Servicing, Matthews Asia
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 30Attribution by Country | Matthews Asia Dividend Fund
Fourth Quarter 2021
Published Portfolio Return1 -2.42% Selection +
Average Average Allocation Total
Interaction
Published Benchmark Return -1.80% Portfolio Wt Benchmark Wt Effect Effect
Effect
Published Relative Return2 -0.62% Total 100.00 100.00 -1.42 1.07 -0.35
Attributable Portfolio Return -2.15% India 4.92 7.96 -0.07 1.58 1.50
Philippines 2.19 0.45 0.08 0.16 0.23
Attributable Relative Return -0.35%
China/Hong Kong 29.96 26.34 -0.29 0.47 0.18
1 Published portfolio return represents that of the Investor
Share Class. Australia 7.94 9.79 -0.04 0.22 0.18
2 The published relative return is calculated as the difference Indonesia 1.66 0.95 0.05 0.02 0.06
of the published benchmark return from the published Vietnam 6.39 0.00 0.02 0.00 0.02
portfolio return.
New Zealand 0.00 0.32 0.01 0.00 0.01
United States 0.00 0.01 0.00 0.00 0.00
Pakistan 0.00 0.01 0.00 0.00 0.00
•Benchmark: MSCI All Country Asia Pacific Index
Singapore 3.91 1.70 -0.03 0.01 -0.01
•The attribution report shows the extent to which the portfolio manager’s Malaysia 0.00 0.87 -0.03 0.00 -0.03
strategies affect a fund’s performance relative to the performance of the
fund’s benchmark index. Allocation Effect shows the effect on fund
Thailand 0.00 1.08 -0.05 0.00 -0.05
performance of either over- or under-weighting a market (a sector, country Bangladesh 1.16 0.00 -0.07 0.00 -0.07
or region, depending on the type of fund) relative to its benchmark.
Selection + Interaction Effect shows how the decision to hold individual Japan 30.50 32.69 0.09 -0.27 -0.18
securities within the particular sector, country or region performed relative
to the benchmark. Taiwan 3.13 9.72 -0.66 0.02 -0.64
•Attributed performance is calculated using FactSet Research Systems, Inc. South Korea 5.84 8.12 -0.14 -1.12 -1.26
The methodology of calculation is different from the published NAV and will
not match performance based on the published NAV. Performance shown is Cash 2.56 0.00 -0.02 0.00 -0.02
historical and no guarantee of future results. Current performance may be
lower or higher. Returns current to the most recent month-end are Unassigned -0.17 0.00 -0.26 0.00 -0.26
available at matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or less than
their original cost. Benchmark performance is unaudited.
•Please refer to the disclosures for index definition. Unassigned may include
fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 31Attribution by Sector | Matthews Asia Dividend Fund
Fourth Quarter 2021
Published Portfolio Return1 -2.42% Selection +
Average Average Allocation Total
Interaction
Published Benchmark Return -1.80% Portfolio Wt Benchmark Wt Effect Effect
Effect
Published Relative Return2 -0.62%
Total 100.00 100.00 -1.58 1.23 -0.35
Attributable Portfolio Return -2.15%
Consumer
23.00 16.16 -0.34 4.34 4.00
Attributable Relative Return -0.35% Discretionary
1 Published portfolio return represents that of the Investor Real Estate 8.43 3.99 -0.06 0.73 0.67
Share Class.
Communication
The published relative return is calculated as the difference
12.01 8.89 -0.13 0.55 0.42
2 Services
of the published benchmark return from the published
portfolio return. Energy 0.00 2.26 0.09 0.00 0.09
Benchmark: MSCI All Country Asia Pacific Index
Utilities 0.00 2.01 -0.08 0.00 -0.08
The attribution report shows the extent to which the portfolio Financials 12.22 17.23 0.01 -0.11 -0.10
manager’s strategies affect a fund’s performance relative to the
performance of the fund’s benchmark index. Allocation Effect Consumer Staples 3.60 5.63 0.05 -0.28 -0.23
shows the effect on fund performance of either over- or under-
weighting a market (a sector, country or region, depending on the Industrials 12.41 11.37 0.01 -0.38 -0.37
type of fund) relative to its benchmark. Selection + Interaction
Effect shows how the decision to hold individual securities within Materials 6.01 6.21 -0.02 -0.93 -0.94
the particular sector, country or region performed relative to the
benchmark. Health Care 8.50 7.14 -0.17 -0.85 -1.02
Attributed performance is calculated using FactSet Research Information
Systems, Inc. The methodology of calculation is different from the 11.42 19.11 -0.74 -1.78 -2.52
Technology
published NAV and will not match performance based on the
published NAV. Performance shown is historical and no guarantee Cash 2.56 0.00 -0.02 0.00 -0.02
of future results. Current performance may be lower or higher.
Returns current to the most recent month-end are available at Unassigned -0.17 0.00 -0.19 -0.07 -0.26
matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned
may include fees, expense accruals, offsets, warrants and rights.
•
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 32Attribution by Country | Matthews Asia Dividend Fund
One Year December 31, 2020 to December 31, 2021
Published Portfolio Return1 -2.83% Average Selection +
Portfolio Average Allocation Interaction Total
Published Benchmark Return -1.19% Wt Benchmark Wt Effect Effect Effect
Published Relative Return2 -1.64% Total Portfolio 100.00 100.00 -1.59 0.29 -1.30
Attributable Portfolio Return -2.49% India 3.97 6.94 -0.61 1.88 1.27
Attributable Relative Return -1.30% Australia 8.49 9.57 0.01 1.08 1.08
Vietnam 3.88 0.00 0.86 0.00 0.86
1 Published portfolio return represents that of the Investor Share Philippines 1.58 0.43 0.01 0.80 0.81
Class.
China/Hong Kong 28.19 28.22 0.01 0.34 0.34
2 The published relative return is calculated as the difference of
the published benchmark return from the published portfolio Bangladesh 1.09 0.00 0.08 0.00 0.08
return.
New Zealand 0.00 0.34 0.06 0.00 0.06
Malaysia 0.00 0.88 0.05 0.00 0.05
Benchmark: MSCI All Country Asia Pacific Index
Pakistan 0.00 0.01 0.00 0.00 0.00
The attribution report shows the extent to which the portfolio
manager’s strategies affect a fund’s performance relative to the Thailand 0.00 1.12 0.00 0.00 0.00
performance of the fund’s benchmark index. Allocation Effect
shows the effect on fund performance of either over- or under- United States 0.00 0.00 0.00 0.00 0.00
weighting a market (a sector, country or region, depending on the
type of fund) relative to its benchmark. Selection + Interaction Indonesia 1.28 0.84 0.10 -0.20 -0.10
Effect shows how the decision to hold individual securities within Singapore 4.57 1.51 0.22 -0.51 -0.29
the particular sector, country or region performed relative to the
benchmark. South Korea 10.15 8.56 -0.21 -1.06 -1.27
Attributed performance is calculated using FactSet Research
Systems, Inc. The methodology of calculation is different from the Japan 29.91 32.35 -0.08 -1.47 -1.55
published NAV and will not match performance based on the
published NAV. Performance shown is historical and no guarantee
Taiwan 4.30 9.24 -1.13 -0.56 -1.69
of future results. Current performance may be lower or higher. Cash 2.70 0.00 0.02 0.00 0.02
Returns current to the most recent month-end are available at
matthewsasia.com. Investment returns and principal value will Unassigned -0.10 0.00 -0.99 0.00 -0.99
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned may
include fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 33Attribution by Sector | Matthews Asia Dividend Fund
One Year December 31, 2020 to December 31, 2021
Published Portfolio Return1 -2.83% Average Selection +
Portfolio Average Allocation Interaction Total
Published Benchmark Return -1.19% Wt Benchmark Wt Effect Effect Effect
Published Relative Return2 -1.64% Total Portfolio 100.00 100.00 -3.88 2.58 -1.30
Attributable Portfolio Return -2.49% Consumer 22.10 16.77 -0.82 4.90 4.08
Discretionary
Attributable Relative Return -1.30%
Real Estate 7.34 4.09 -0.14 0.88 0.74
1 Published portfolio return represents that of the Investor Share
Class.
Communication 10.28 9.58 -0.10 0.69 0.59
Services
2 The published relative return is calculated as the difference of
the published benchmark return from the published portfolio Industrials 12.06 10.99 0.11 -0.01 0.10
return.
Financials 12.45 16.80 -0.52 0.51 -0.01
Benchmark: MSCI All Country Asia Pacific Index Utilities 0.00 1.95 -0.17 0.00 -0.17
The attribution report shows the extent to which the portfolio Energy 0.40 2.09 -0.26 -0.07 -0.34
manager’s strategies affect a fund’s performance relative to the
performance of the fund’s benchmark index. Allocation Effect Health Care 8.57 7.29 -0.05 -0.38 -0.43
shows the effect on fund performance of either over- or under-
weighting a market (a sector, country or region, depending on the Materials 5.83 6.28 0.01 -0.57 -0.56
type of fund) relative to its benchmark. Selection + Interaction
Effect shows how the decision to hold individual securities within Consumer Staples 3.92 5.64 -0.23 -0.46 -0.69
the particular sector, country or region performed relative to the
benchmark. Information 14.46 18.51 -0.85 -2.79 -3.64
Attributed performance is calculated using FactSet Research Technology
Systems, Inc. The methodology of calculation is different from the
published NAV and will not match performance based on the Cash 2.70 0.00 0.02 0.00 0.02
published NAV. Performance shown is historical and no guarantee
of future results. Current performance may be lower or higher. Unassigned -0.10 0.00 -0.88 -0.11 -0.99
Returns current to the most recent month-end are available at
matthewsasia.com. Investment returns and principal value will
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned may
include fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 34Attribution by Country | Matthews Asia Dividend Fund
Three Years December 31, 2018 to December 31, 2021
Published Portfolio Return1 12.34% Average Selection +
Portfolio Average Allocation Interaction Total
Published Benchmark Return 12.41% Wt Benchmark Wt Effect Effect Effect
Published Relative Return2 -0.07% Total Portfolio 100.00 100.00 -1.97 2.46 0.49
Attributable Portfolio Return 12.98% China/Hong Kong 33.98 27.72 0.29 1.19 1.49
Attributable Relative Return 0.49% Australia 5.22 9.82 0.22 0.77 0.99
India 2.88 5.81 -0.13 0.47 0.34
1 Published portfolio return represents that of the Investor Share Philippines 1.67 0.53 -0.10 0.40 0.30
Class.
Vietnam 1.76 0.00 0.27 0.00 0.27
2 The published relative return is calculated as the difference of
the published benchmark return from the published portfolio Thailand 0.00 1.35 0.20 0.00 0.20
return.
Malaysia 0.00 1.07 0.17 0.00 0.17
New Zealand 0.00 0.38 0.00 0.00 0.00
Benchmark: MSCI All Country Asia Pacific Index
Pakistan 0.00 0.01 0.00 0.00 0.00
The attribution report shows the extent to which the portfolio
manager’s strategies affect a fund’s performance relative to the United States 0.00 0.02 -0.01 0.00 -0.01
performance of the fund’s benchmark index. Allocation Effect
shows the effect on fund performance of either over- or under- Bangladesh 1.13 0.00 -0.09 0.00 -0.09
weighting a market (a sector, country or region, depending on the
type of fund) relative to its benchmark. Selection + Interaction Japan 29.01 34.87 -0.04 -0.08 -0.12
Effect shows how the decision to hold individual securities within Indonesia 1.12 1.02 0.01 -0.20 -0.19
the particular sector, country or region performed relative to the
benchmark. Singapore 6.80 1.70 -0.64 0.44 -0.20
Attributed performance is calculated using FactSet Research
Systems, Inc. The methodology of calculation is different from the Taiwan 4.80 7.88 -0.67 0.11 -0.57
published NAV and will not match performance based on the
published NAV. Performance shown is historical and no guarantee
South Korea 9.82 7.81 -0.11 -0.63 -0.74
of future results. Current performance may be lower or higher. Cash 1.90 0.00 -0.25 0.00 -0.25
Returns current to the most recent month-end are available at
matthewsasia.com. Investment returns and principal value will Unassigned -0.08 0.00 -1.12 0.00 -1.12
fluctuate so that when redeemed, shares may be worth more or
less than their original cost. Benchmark performance is unaudited.
Please refer to the disclosures for index definition. Unassigned may
include fees, expense accruals, offsets, warrants and rights.
For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.
© 2022 Matthews International Capital Management, LLC PT001b_Q421 35You can also read
