Matthews Asia Funds | First Quarter 2015 Quarterly Fact Sheets ASIA FIXED INCOME STRATEGY Matthews Asia Strategic Income Fund ASIA GROWTH AND INCOME STRATEGIES Matthews Asian Growth and Income Fund Matthews Asia Dividend Fund Matthews China Dividend Fund ASIA GROWTH STRATEGIES Matthews Asia Focus Fund Matthews Asia Growth Fund Matthews Pacific Tiger Fund Matthews Emerging Asia Fund Matthews China Fund Matthews India Fund Matthews Japan Fund Matthews Korea Fund ASIA SMALL COMPANY STRATEGIES Matthews Asia Small Companies Fund Matthews China Small Companies Fund ASIA SPECIALTY STRATEGY Matthews Asia Science and Technology Fund 1Q Our Approach to Investing in Asia Active management We believe many of the region’s widely used equity indices are backward looking and are not representative of the industries and companies that will be successful in the future. With respect to the region’s debt indices, we believe they are representative of the most indebted countries as opposed to the most creditworthy. STRATEGIES FOR INVESTING IN ASIA ASIA FIXED INCOME ❁ Asia Strategic Income Long-term focus on Asia We believe a long-term approach is the most effective way to capitalize on Asia’s evolution. Matthews has been investing in Asia since 1991 and we draw on our experience to identify investment opportunities that stand to benefit from the growth and development of markets throughout the region. ASIA GROWTH AND INCOME ASIA GROWTH ❁ Asian Growth ❁ Asia Focus ❁ Asia Growth ❁ Pacific Tiger* ❁ China Dividend ❁ Emerging Asia ❁ China ❁ India ❁ Japan ❁ Korea ASIA SPECIALTY ASIA SMALL COMPANY ❁ Asia Science and ❁ Asia Small Companies ❁ China Small Companies and Income ❁ Asia Dividend* Bottom-up research We employ a fundamental, bottom-up investment process. For equities, we seek to identify companies with sustainable long-term growth prospects, strong business models, quality management teams and reasonable valuations. For debt securities, we look for issuers that demonstrate strength in credit, currencies and interest rates. Technology This research process involves more than 2,500 company meetings each year. Defining Asia’s investment strategies We strive to provide investors a range of Asia strategies across the risk-reward spectrum and launch new strategies when there are compelling investment opportunities in the region. ❁ Regional fund designed for use as a core portfolio holding ❁ Asian fund designed to complement core portfolio holdings * Closed to most new investors. Matthews Asia Funds We provide the broadest range of Asia funds available for building a portfolio that includes exposure to one of the world’s fastest-growing regions. matthewsasia.com Cover Image: Matsumoto, Japan Matthews Asia Funds Quarterly Fact Sheets Contents ASIA FIXED INCOME STRATEGY Matthews Asia Strategic Income Fund 2 ASIA GROWTH AND INCOME STRATEGIES Matthews Asian Growth and Income Fund 4 Matthews Asia Dividend Fund 6 Matthews China Dividend Fund 8 ASIA GROWTH STRATEGIES Matthews Asia Focus Fund 10 Matthews Asia Growth Fund 12 Matthews Pacific Tiger Fund 14 Matthews Emerging Asia Fund 16 Matthews China Fund 18 Matthews India Fund 20 Matthews Japan Fund 22 Matthews Korea Fund 24 ASIA SMALL COMPANY STRATEGIES Matthews Asia Small Companies Fund 26 Matthews China Small Companies Fund 28 ASIA SPECIALTY STRATEGY Matthews Asia Science and Technology Fund 30 Matthews Asia Strategic Income Fund ASIA FIXED INCOME STRATEGY March 31, 2015 Investment Objective Seeks total return over the long term with an emphasis on income. Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 After Fee Waiver and Expense Reimbursement2 MAINX 577125503 11/30/11 $10.38 $2,500 1.28% MINCX 577125602 11/30/11 $10.37 $3 million 1.09% 1.10% 0.90% Portfolio Statistics Total # of Positions Net Assets Modified Duration3 Portfolio Turnover Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in income-producing securities including, but not limited to, debt and debt-related instruments issued by governments, quasi-governmental entities, supranational institutions, and companies in Asia, which consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region. Investments may be denominated in any currency, and may represent any part of a company’s capital structure from debt to equity or with features of both. Risks All investments involve risks, including possible loss of principal. 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. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 51 $69.3 million 3.9 34.28%4 Benchmark HSBC Asian Local Bond Index Redemption Fee 2% within first 90 calendar days of purchase 3 Months 1 Year 3 Years 5 Years 10 Years Since Inception Investor Class (MAINX) 0.69% 0.69% 1.34% 4.06% n.a. n.a. 4.58% Institutional Class (MINCX) 0.74% 0.74% 1.45% 4.25% n.a. n.a. 4.76% HSBC Asian Local Bond Index 0.32% 0.32% 2.77% 1.51% n.a. n.a. 2.43% GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $12,500 Matthews Asia Strategic Income Fund $12,000 $11,612 $11,500 $11,554 $11,000 Risks An investment in the Fund is subject to credit, currency and interest rate risks. Credit risk is the change in the value of debt securities reflecting the ability and willingness of issuers to make principal and interest payments. Currency risk is a decline in value of a foreign currency relative to the U.S. dollar which reduces the value of the foreign currency and investments denominated in that currency. Interest rate risk is the possibility that a Fund’s yield will decline due to falling interest rates and the potential for bond prices to fall as interest rates rise. The Fund may invest in the following: derivatives which can be volatile and affect Fund performance; high yield bonds (junk bonds) which can subject the Fund to substantial risk of loss; and structured investments which can change the risk or return, or replicate the risk or return of an underlying asset. The Fund is subject to risks associated with investing in a concentrated fund, and the value of the Fund will be greatly affected by the fluctuations in the value of a single security. YTD $10,834 $10,500 HSBC Asian Local Bond Index Lipper Emerging Markets Hard Currency Debt Funds Category Average 5 $10,000 $9,500 11/11 11/12 11/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 Matthews has contractually agreed to waive fees and reimburse expenses until August 31, 2015 to the extent needed to limit Total Annual Fund Operating Expenses to 0.90% by waiving class specific and non-class specific expenses for the Institutional Class and agreed to reduce the expense ratio by waiving an equal amount of non-class specific expenses for the Investor Class. Because certain expenses of the Investor Class may be higher than the Institutional Class and class specific expenses may be waived solely for the Institutional Class, the Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may exceed 0.90%. If the expenses fall below the expense limitation in a year within three years after Matthews has made such a waiver or reimbursement, the Fund may reimburse Matthews up to an amount not to cause the expenses for that year to exceed the expense limitation. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the Trust on behalf of the Fund on 60 days’ written notice. 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. Source: FactSet Research Systems, Bloomberg, BNY Mellon Investment Servicing (US) Inc. For detailed modified duration exposures by currency, please see the next page. 4 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 5 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. 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. FS017_MAINX_1Q15 2 Matthews Asia Strategic Income Fund PORTFOLIO MANAGEMENT March 31, 2015 TOP TEN POSITIONS % of Net Assets Sector Currency DFCC Bank PLC, 9.625%, 10/31/2018 Financials USD 4.1% Homeinns Hotel Group, Cnv., 2.000%, 12/15/2015 Consumer Discretionary USD 3.9% PT Perusahaan Listrik Negara, 5.250%, 10/24/2042 Utilities USD 3.5% Housing Development Finance Corp., Ltd., 9.580%, 08/29/2015 Financials INR 3.5% Yum! Brands, Inc., 5.350%, 11/01/2043 Consumer Discretionary USD 3.2% TML Holdings Pte, Ltd., 5.750%, 05/07/2021 Consumer Discretionary USD 3.1% Bank of Baroda, 6.625%, 05/25/2022 Financials USD 3.0% ICICI Bank, Ltd., 6.375%, 04/30/2022 Financials USD 3.0% Longfor Properties Co., Ltd., 6.875%, 10/18/2019 Financials USD 3.0% PT Bank Rakyat Indonesia Persero, 2.950%, 03/28/2018 Financials USD % OF ASSETS IN TOP TEN 2.9% 33.2% COUNTRY ALLOCATION (%) 6,7* CURRENCY (%) 6,7 By Issuer's country of risk Weight Modified Duration* China/Hong Kong 29.1 U.S. Dollar 58.2 4.6 India 21.3 Indian Rupee 11.8 2.1 Indonesia 18.7 China Renminbi 7.7 2.1 Sri Lanka 13.1 Indonesian Rupiah 5.8 5.7 Singapore 2.8 Sri Lanka Rupee 5.5 2.7 South Korea 2.7 Hong Kong Dollar 2.9 1.7 Philippines 2.3 Korean Won 2.7 2.4 Japan 2.2 Thai Baht 0.8 0.0 Australia 1.9 0.0 1.2 Thailand 0.8 Philippines Peso Cash and Other Assets, Less Liabilities 0.7 Supranational 3.9 0.0 Cash and Other Assets, Less Liabilities 3.9 *A supranational is an international organization in which member states transcend national boundaries, (ex. IMF). Source: FactSet Research Systems *Fixed income portion of the portfolio Source: FactSet Research Systems QUALITY DISTRIBUTION (%) 8 SECTOR ALLOCATION (%) 6,7 Rating Financials 45.7 Consumer Discretionary 17.0 Foreign Government Bonds* 14.7 AAA 1.2 AA 0.6 AA- 2.1 A+ 0.4 BBB 4.7 BBB- 14.9 BB+ 2.2 BB 11.0 BB- 7.8 B+ 14.8 B 4.1 Not Rated 30.3 Source: FactSet, Moody’s, S&P and Fitch Gerald M. Hwang, CFA Co-Manager Satya Patel Co-Manager INVESTMENT APPROACH Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. INDEX DEFINITIONS Utilities 7.1 Telecom Services 4.5 Industrials 4.3 Consumer Staples 2.4 Information Technology 0.4 Cash and Other Assets, Less Liabilities 3.9 The HSBC Asian Local Bond Index (ALBI) tracks the total return performance of a bond portfolio consisting of local-currency denominated, high quality and liquid bonds in Asia ex-Japan. The ALBI includes bonds from the following countries: Korea, Hong Kong, India, Singapore, Taiwan, Malaysia, Thailand, Philippines, Indonesia and China. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners *Foreign Government Bonds includes supranationals Source: FactSet Research Systems ASSET TYPE BREAKDOWN (%) 6,7 Corporate Bonds 69.5 Government Bonds 14.7 Convertible Bonds 9.9 Common Equities and ADRs 2.0 Cash and Other Assets, Less Liabilities 3.9 Source: FactSet Research Systems 6 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 7 Cash and Other Assets may include the mark-to-market value of forward currency exchange contracts and certain derivative instruments. 8 Credit quality is provided for the underlying bond holdings of the Fund and does not include common equities, cash and other assets and percentage values will not total 100%. Credit quality rating symbols reflect that of S&P and generally credit ratings range from AAA (highest) to D (lowest). When ratings from Moody’s, S&P and Fitch are available for a bond in the Fund, the middle rating of the three is used. When two ratings are available, the lowest rating is used. When only one rating is provided, that one is used. Foreign government bonds without a specific rating are assigned the country rating provided by one of the three agencies. Securities that are not rated by any one of the three agencies are reflected as such. ©2015 Matthews International Capital Management, LLC Teresa Kong, CFA Lead Manager 800.789.ASIA | matthewsasia.com 3 Matthews Asian Growth and Income Fund ASIA GROWTH AND INCOME STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation with some current income. Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MACSX 577130206 09/12/94 $18.37 $2,500 1.08% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MICSX 577130842 10/29/10 $18.36 $3 million 0.93% 61 $4.1 billion $35.3 billion 16.79%2 Under normal market conditions, the Matthews Asian Growth and Income Fund seeks to achieve its investment objective by investing at least 80% of its total net assets, which include borrowings for investment purposes, in dividend-paying common stock, preferred stock and other equity securities, and convertible securities as well as fixedincome securities, of any duration or quality, of companies located in Asia, which consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region. The Fund attempts to offer investors a relatively stable means of participating in a portion of the Asian region’s growth prospects, while providing some downside protection, in comparison to a portfolio that invests purely in common stocks. The strategy of owning convertible bonds and dividend-paying equities is designed to help the Fund to meet its investment objective while helping to reduce the volatility of its portfolio. Risks All investments involve risks, including possible loss of principal. 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. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months Benchmark MSCI AC Asia ex Japan Index3 Redemption Fee 2% within first 90 calendar days of purchase YTD 1 Year Investor Class (MACSX) 2.00% 2.00% 0.86% 6.69% 6.64% 2.00% 2.00% 1.03% 6.85% n.a. MSCI AC Asia ex Japan Index 4.90% 4.90% 11.02% 7.11% 10 Years Since Inception 9.06% 10.13% n.a. 5.04% 6.53% 10.08% 4.35%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $72,647 Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 5 Years Institutional Class (MICSX) $80,000 INVESTMENT APPROACH 3 Years $60,000 MSCI AC Asia ex Japan Index4 Lipper Pacific Region Funds Category Average4,5 $40,000 $25,244 $20,000 $0 Matthews Asian Growth and Income Fund $24,002 09/94 05/98 01/02 09/05 05/09 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 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, Philippines, Singapore, South Korea, Taiwan and Thailand. The Matthews Asian Growth and Income Fund invests in countries that are not included in the MSCI All Country Asia ex Japan Index. 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. 4 Calculated from 8/31/94. 5 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. 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. FS004_MACSX_1Q15 4 Matthews Asian Growth and Income Fund March 31, 2015 Robert J. Horrocks, PhD Lead Manager Kenneth Lowe, CFA Lead Manager TOP TEN HOLDINGS 6 % of Net Assets Country AIA Group, Ltd. China/Hong Kong 3.7% Jardine Matheson Holdings, Ltd. China/Hong Kong 3.7% Taiwan Semiconductor Manufacturing Co., Ltd. Hong Kong Exchanges and Clearing, Ltd., Cnv., 0.500%, 10/23/2017 Taiwan 3.6% China/Hong Kong 2.9% Japan Tobacco, Inc. Japan 2.9% Singapore Technologies Engineering, Ltd. Singapore 2.7% Ascendas REIT Singapore 2.5% Yum! Brands, Inc. China/Hong Kong 2.4% United Overseas Bank, Ltd. Singapore 2.4% Globe Telecom, Inc. Philippines 2.3% % OF ASSETS IN TOP TEN 29.1% COUNTRY ALLOCATION (%) 7 Fund SECTOR ALLOCATION (%) 7 Benchmark Difference Fund Benchmark Difference China/Hong Kong 36.2 40.0 -3.8 Financials 20.3 33.2 Singapore 15.0 5.8 9.2 Industrials 17.3 8.5 8.8 South Korea 9.4 17.9 -8.5 Consumer Staples 15.7 5.3 10.4 Malaysia 7.9 4.2 3.7 Consumer Discretionary 15.4 8.3 7.1 Japan 6.3 0.0 6.3 Telecom Services 13.4 6.7 6.7 Taiwan 5.0 15.3 -10.3 Information Technology 7.5 22.5 -15.0 Thailand 4.9 2.9 2.0 Utilities 4.9 4.1 0.8 Australia 3.8 0.0 3.8 Materials 2.0 4.6 -2.6 New Zealand 3.2 0.0 3.2 Energy 1.8 4.8 -3.0 Indonesia 3.1 3.3 -0.2 1.8 2.0 -0.2 Philippines 2.3 1.7 0.6 Vietnam 1.6 0.0 1.6 Health Care Liabilities in Excess of Cash and Other Assets -0.1 0.0 -0.1 United Kingdom 1.4 0.0 1.4 India Liabilities in Excess of Cash and Other Assets 0.0 8.9 -8.9 -0.1 0.0 -0.1 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 ASSET TYPE BREAKDOWN (%) 7,9 Fund 37.2 47.2 -10.0 Large Cap ($10B-$25B) 24.0 25.7 -1.7 Mid Cap ($3B-$10B) 25.7 23.0 2.7 Small Cap (under $3B) Liabilities in Excess of Cash and Other Assets 13.2 4.1 9.1 -0.1 0.0 -0.1 Source: FactSet Research Systems 8 9 You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners -12.9 Benchmark Difference Mega Cap (over $25B) 6 7 PORTFOLIO MANAGEMENT Common Equities and ADRs 87.6 Convertible Bonds 9.2 Preferred Equities Liabilities in Excess of Cash and Other Assets 3.3 -0.1 Source: FactSet Research Systems Holdings may combine more than one security from the same issuer and related depositary receipts. Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. Equity market cap of issuer. Bonds are not included in the MSCI All Country Asia ex Japan Index. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 5 Matthews Asia Dividend Fund ASIA GROWTH AND INCOME STRATEGIES March 31, 2015 Closed to most new investors. See Prospectus for details. Investment Objective Total return with an emphasis on providing current income. Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MAPIX 577125107 10/31/06 $16.56 $2,500 1.06% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MIPIX 577130750 10/29/10 $16.56 $3 million 0.93% 71 $5.5 billion $31.4 billion 20.06%2 Benchmark MSCI AC Asia Pacific Index3 Redemption Fee 2% within first 90 calendar days of purchase Under normal market conditions, the Matthews Asia Dividend Fund seeks to achieve its investment objective by investing at least 80% of its total net assets, which include borrowings for investment purposes, in income-paying equity securities of companies located in Asia, which consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region. The Fund may also invest in convertible debt and equity securities. The Fund seeks to provide a level of current income that is higher than the yield generally available in Asian equity markets over the long term. Risks All investments involve risks, including possible loss of principal. 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. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months YTD 1 Year 3 Years 5 Years Investor Class (MAPIX) 8.64% 8.64% 10.50% 9.53% 8.15% Institutional Class (MIPIX) 8.68% 8.68% 10.61% 9.68% n.a. MSCI AC Asia Pacific Index 6.79% 6.79% 7.86% 6.05% 8.89% 10 Years Since Inception n.a. 10.15% n.a. 7.28% n.a. 3.89%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $25,000 Matthews Asia Dividend Fund $22,547 MSCI AC Asia Pacific Index4 $20,000 INVESTMENT APPROACH Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. $15,000 $14,468 Lipper Pacific Region Funds Category Average4,5 $13,783 $10,000 $5,000 10/06 02/08 06/09 10/10 02/12 06/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 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, Philippines, Singapore, South Korea, Taiwan and Thailand. The Matthews Asia Dividend Fund invests in countries that are not included in the MSCI All Country Asia Pacific Index. 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. 4 Calculated from 10/31/06. 5 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. 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. FS002_MAPIX_1Q15 6 Matthews Asia Dividend Fund PORTFOLIO MANAGEMENT March 31, 2015 Yu Zhang, CFA Lead Manager TOP TEN HOLDINGS 6 % of Net Assets Country Japan Tobacco, Inc. Japan 4.1% Pigeon Corp. Japan 3.6% Suntory Beverage & Food, Ltd. Japan 3.2% Shenzhou International Group Holdings, Ltd. China/Hong Kong 3.0% Hoya Corp. Japan 3.0% Toyota Motor Corp. Japan 2.9% Bridgestone Corp. Japan 2.4% Yum! Brands, Inc. China/Hong Kong 2.3% KT&G Corp. South Korea 2.2% Minth Group, Ltd. China/Hong Kong 2.1% % OF ASSETS IN TOP TEN 28.8% COUNTRY ALLOCATION (%) 7 Fund SECTOR ALLOCATION (%) 7 Benchmark Difference China/Hong Kong 29.3 18.3 11.0 Japan 29.1 40.6 -11.5 Singapore 6.4 2.7 3.7 South Korea 6.0 8.2 -2.2 Indonesia 5.4 1.5 3.9 Australia 5.0 13.3 Taiwan 5.0 7.0 India 4.5 4.1 Thailand 3.1 Luxembourg 1.9 Philippines Fund Benchmark Difference Consumer Staples 24.4 6.2 18.2 Consumer Discretionary 22.4 13.2 9.2 Industrials 12.8 12.6 0.2 Telecom Services 11.4 5.5 5.9 Financials 8.0 30.1 -22.1 -8.3 Information Technology 7.8 15.0 -7.2 -2.0 Utilities 4.0 3.1 0.9 0.4 Health Care 3.9 4.5 -0.6 1.3 1.8 Materials 3.2 6.7 -3.5 0.0 1.9 0.0 3.1 -3.1 1.2 0.8 0.4 Vietnam 1.0 0.0 1.0 Energy Cash and Other Assets, Less Liabilities 2.1 0.0 2.1 Malaysia 0.0 1.9 -1.9 New Zealand Cash and Other Assets, Less Liabilities 0.0 0.3 -0.3 2.1 0.0 2.1 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 ASSET TYPE BREAKDOWN (%) 7 Fund Robert J. Horrocks, PhD Lead Manager Vivek Tanneeru Co-Manager You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 26.0 47.8 -21.8 Large Cap ($10B-$25B) 22.3 25.4 -3.1 Mid Cap ($3B-$10B) 31.3 24.0 7.3 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 18.3 2.8 15.5 2.1 0.0 2.1 Source: FactSet Research Systems Common Equities and ADRs 95.8 Preferred Equities 2.1 Cash and Other Assets, Less Liabilities 2.1 Source: FactSet Research Systems P/E RATIOS 9 P/E Using FY1 Estimates 15.3x P/E Using FY2 Estimates 13.8x Source: Factset Research Systems (P/E est. as of 03/31/15) 6 7 8 Holdings may combine more than one security from the same issuer and related depositary receipts. Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 7 Matthews China Dividend Fund ASIA GROWTH AND INCOME STRATEGIES March 31, 2015 Investment Objective Total return with an emphasis on providing current income. Strategy Under normal market conditions, the Matthews China Dividend Fund seeks to achieve its investment objective by investing at least 80% of its total net assets, which include borrowings for investment purposes, in income-paying equity securities of companies located in China. China includes its administrative and other districts, such as Hong Kong. The Fund may also invest in convertible debt and equity securities. The Fund seeks to provide a level of current income that is higher than the yield generally available in Chinese equity markets over the long term. FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MCDFX 577125305 11/30/09 $14.31 $2,500 1.24% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MICDX 577130735 10/29/10 $14.31 $3 million 1.08% 44 $163.1 million $33.7 billion 25.43%2 Risks All investments involve risks, including possible loss of principal. 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. There is no guarantee that the Fund or the companies in its portfolio will pay or continue to pay dividends. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months Benchmark MSCI China Index3 Redemption Fee 2% within first 90 calendar days of purchase YTD 1 Year Investor Class (MCDFX) 7.03% 7.03% 13.14% 11.04% 9.83% 7.03% 7.03% 13.34% 11.25% n.a. MSCI China Index 8.12% 8.12% 24.34% 10.87% 5.46% 10 Years Since Inception n.a. 10.10% n.a. 7.97% n.a. 4.89%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $16,703 $16,000 Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 5 Years Institutional Class (MICDX) $18,000 INVESTMENT APPROACH 3 Years $14,000 $13,002 $12,000 Matthews China Dividend Fund MSCI China Index4 Lipper China Region Funds Category Average4,5 $12,898 $10,000 $8,000 $6,000 11/09 11/10 11/11 11/12 11/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds do not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes Chinaaffiliated corporations and H shares listed on the Hong Kong exchange, and B shares listed on the Shanghai and Shenzhen exchanges. 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. 4 Calculated from 11/30/09. 5 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 period. 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. FS014_MCDFX_1Q15 8 Matthews China Dividend Fund PORTFOLIO MANAGEMENT March 31, 2015 Yu Zhang, CFA Lead Manager TOP TEN HOLDINGS 6 % of Net Assets Sector Shenzhou International Group Holdings, Ltd. Consumer Discretionary 3.6% China Construction Bank Corp. Financials 3.4% Boer Power Holdings, Ltd. Industrials 3.4% Yantai Changyu Pioneer Wine Co., Ltd. Consumer Staples 3.3% Yum! Brands, Inc. Consumer Discretionary 2.8% Shanghai Baosight Software Co., Ltd. Information Technology 2.8% Greatview Aseptic Packaging Co., Ltd. Materials 2.8% 2.8% Far East Horizon, Ltd. Financials Minth Group, Ltd. Consumer Discretionary 2.7% Vitasoy International Holdings, Ltd. Consumer Staples 2.7% % OF ASSETS IN TOP TEN 30.3% Sherwood Zhang, CFA Co-Manager You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners SECTOR ALLOCATION (%) 7 Fund MARKET CAP EXPOSURE (%) 7,8 Benchmark Difference Fund Benchmark Difference Industrials 23.3 7.1 16.2 Mega Cap (over $25B) 17.0 68.3 -51.3 Consumer Discretionary 19.6 4.9 14.7 Large Cap ($10B-$25B) 1.6 14.0 -12.4 Financials 18.0 39.8 -21.8 Mid Cap ($3B-$10B) 35.8 16.4 19.4 Information Technology 11.2 14.7 -3.5 43.1 1.3 41.8 Consumer Staples 6.0 4.0 2.0 Health Care 4.9 2.1 2.8 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 2.5 0.0 2.5 Telecom Services 4.7 11.2 -6.5 Utilities 4.7 3.8 0.9 Materials 2.8 2.5 0.3 Energy Cash and Other Assets, Less Liabilities 2.3 9.9 -7.6 2.5 0.0 2.5 Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems CHINA EXPOSURE (%) 9 SAR (Hong Kong) 33.3 Overseas Limited companies (OL) 20.9 China-affiliated corporations (CAC) 14.3 H Shares 14.0 B Shares Cash and Other Assets, Less Liabilities 13.4 2.5 Source: FactSet Research Systems ASSET TYPE BREAKDOWN (%) 7 Common Equities and ADRs Source: FactSet Research Systems P/E RATIOS 10 95.9 P/E Using FY1 Estimates 12.5x Convertible Bonds 1.6 P/E Using FY2 Estimates 11.0x Cash and Other Assets, Less Liabilities 2.5 Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 6 7 8 9 Holdings may combine more than one security from the same issuer and related depositary receipts. Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. Equity market cap of issuer. SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated Corporations [CAC], also known as “Red Chips,” are mainland China companies with partial state ownership listed in Hong Kong, and incorporated in Hong Kong. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. Overseas Listed [OL] companies are companies that conduct business in mainland China but listed in overseas markets such as Japan, Singapore, Taiwan and the United States. 10 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 9 Matthews Asia Focus Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation. Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 After Fee Waiver and Expense Reimbursement2 MAFSX 577125701 04/30/13 $10.35 $2,500 3.50% MIFSX 577125800 04/30/13 $10.38 $3 million 3.32% 1.46% 1.25% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover Under normal market conditions, the Matthews Asia Focus Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia Ex Japan, which consists of all countries and markets in Asia excluding Japan but including all other developed, emerging and frontier countries and markets in the Asian region. The Fund seeks to invest in companies capable of sustainable growth based on fundamental characteristics. Companies in which the Fund invests typically possess, in the portfolio managers’ judgment, such attributes as a high quality management team, strong corporate governance standards, sustainable return on capital over an extended period, strong free cash flow generation and an attractive valuation in relation to growth prospects and intrinsic value. Once fully invested, the Fund is currently expected to hold stocks of between 25 and 35 companies under normal market conditions. Risks All investments involve risks, including possible loss of principal. 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. In addition, focused funds may be subject to a greater risk of loss because a single security’s increase or decrease in value may have a greater impact on the Fund’s value and total return. PERFORMANCE AS OF MARCH 31, 2015 28 $15.6 million $45.1 billion 24.12%3 Benchmark MSCI AC Asia ex Japan Index5 Redemption Fee 2% within first 90 calendar days of purchase Average Annual Total Returns 3 Months YTD 1 Year 10 Years Since Inception Investor Class (MAFSX) 3.40% 3.40% 6.17% n.a. n.a. n.a. 2.62% 3.39% 3.39% 6.44% n.a. n.a. n.a. 2.90% MSCI AC Asia ex Japan Index 4.90% 4.90% 11.02% n.a. n.a. n.a. 6.30% GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $11,500 $11,244 $11,000 $10,757 $10,509 $10,000 Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 5 Years Institutional Class (MIFSX) $10,500 INVESTMENT APPROACH 3 Years Matthews Asia Focus Fund MSCI AC Asia ex Japan Index4 Lipper Pacific ex Japan Funds Category Average4,5 $9,500 $9,000 $8,500 03/13 09/13 03/14 09/14 03/15 1 Matthews Asia Funds does not charge 12b-1 fees. 2 Matthews has contractually agreed to waive fees and reimburse expenses until August 31, 2015 to the extent needed to limit Total Annual Fund Operating Expenses to 1.75% for the Institutional Class and agreed to reduce the expense ratio by an equal amount for the Investor Class. Because certain expenses of the Investor Class are higher than the Institutional Class, the Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may exceed 1.75%. The amounts of the waivers and reimbursements are based on estimated Fund expenses. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the Trust on behalf of the Fund on 60 days’ written notice. 3 The lesser fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 4 The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock of markets of China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand. 5 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. Calculated from 4/30/13. 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. FS020_MAFSX_1Q15 10 Matthews Asia Focus Fund PORTFOLIO MANAGEMENT March 31, 2015 Kenneth Lowe, CFA Lead Manager J. Michael Oh, CFA Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Country AIA Group, Ltd. China/Hong Kong 7.1% Jardine Matheson Holdings, Ltd. China/Hong Kong 6.1% Samsonite International SA China/Hong Kong 4.4% Yum! Brands, Inc. China/Hong Kong 4.4% Singapore Telecommunications, Ltd. Singapore 4.0% Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan 3.7% Ansell, Ltd. Australia 3.7% Hutchison Whampoa, Ltd. China/Hong Kong 3.6% Samsung Electronics Co., Ltd. South Korea 3.6% Mead Johnson Nutrition Co. USA 3.5% % OF ASSETS IN TOP TEN 44.1% COUNTRY ALLOCATION (%) 7 Fund China/Hong Kong 37.5 40.0 -2.5 Malaysia Fund Financials 26.5 Benchmark Difference 33.2 -6.7 11.2 4.2 7.0 Consumer Discretionary 17.8 8.3 9.5 Singapore 9.2 5.8 3.4 Information Technology 13.8 22.5 -8.7 Australia 8.0 0.0 8.0 Industrials 12.3 8.5 3.8 Indonesia 6.1 3.3 2.8 Consumer Staples 9.2 5.3 3.9 Taiwan 3.7 15.3 -11.6 Telecom Services 6.8 6.7 0.1 South Korea 3.6 17.9 -14.3 Materials 3.7 4.6 -0.9 United States 3.5 0.0 3.5 Health Care 3.7 2.0 1.7 Switzerland 3.2 0.0 3.2 Energy 0.0 4.8 -4.8 Thailand 3.0 2.9 0.1 4.1 -4.1 2.9 8.9 -6.0 Utilities Cash and Other Assets, Less Liabilities 0.0 India 6.2 0.0 6.2 United Kingdom 1.9 0.0 1.9 Philippines Cash and Other Assets, Less Liabilities 0.0 1.7 -1.7 6.2 0.0 6.2 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 P/E RATIOS 9 Fund Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 52.5 47.2 5.3 P/E Using FY1 Estimates 15.1x Large Cap ($10B-$25B) 14.3 25.7 -11.4 P/E Using FY2 Estimates 13.9x Mid Cap ($3B-$10B) 24.1 23.0 1.1 2.9 4.1 -1.2 6.2 0.0 6.2 Small Cap (under $3B) Cash and Other Assets, Less Liabilities You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC SECTOR ALLOCATION (%) 7 Benchmark Difference Sharat Shroff, CFA Co-Manager Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 11 Matthews Asia Growth Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MPACX 577130867 10/31/03 $22.51 $2,500 1.12% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MIAPX 577130776 10/29/10 $22.62 $3 million 0.93% 64 $958.9 million $27.1 billion 22.24%2 Under normal market conditions, the Matthews Asia Growth Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia, which consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region. The Fund may also invest in the convertible securities, of any duration or quality, of Asian companies. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months Benchmark MSCI AC Asia Pacific Index3 Redemption Fee 2% within first 90 calendar days of purchase YTD 1 Year Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 5 Years Investor Class (MPACX) 6.68% 6.68% 10.83% 10.71% 9.38% Institutional Class (MIAPX) 6.75% 6.75% 11.05% 10.91% n.a. MSCI AC Asia Pacific Index 6.79% 6.79% 8.89% 7.86% 6.05% 10 Years Since Inception 9.06% 10.11% n.a. 7.41% 6.55% 7.66%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $35,000 INVESTMENT APPROACH 3 Years Matthews Asia Growth Fund $30,019 $30,000 $25,000 $23,567 $23,221 $20,000 MSCI AC Asia Pacific Index4 Lipper Pacific Region Funds Category Average5 $15,000 $10,000 $5,000 10/03 10/05 10/07 10/09 10/11 10/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 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, Philippines, Singapore, South Korea, Taiwan and Thailand. 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. 4 Calculated from 10/31/03. 5 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. 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. FS001_MPACX_1Q15 12 Matthews Asia Growth Fund PORTFOLIO MANAGEMENT March 31, 2015 Taizo Ishida Lead Manager Sharat Shroff, CFA Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Country Baidu, Inc. China/Hong Kong Omron Corp. Japan 4.0% 3.8% ORIX Corp. Japan 3.5% Sysmex Corp. Japan 3.3% PT Bank Rakyat Indonesia Persero Indonesia 3.0% PT Astra International Indonesia 2.9% Emami, Ltd. India 2.6% SoftBank Corp. Japan 2.4% Vista Land & Lifescapes, Inc. Philippines 2.3% Shenzhou International Group Holdings, Ltd. China/Hong Kong 2.3% % OF ASSETS IN TOP TEN 30.1% COUNTRY ALLOCATION (%) 7 Fund Japan Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC SECTOR ALLOCATION (%) 7 Fund Benchmark Difference Benchmark Difference 37.9 40.6 -2.7 Consumer Staples 18.3 6.2 12.1 China/Hong Kong 16.1 18.3 -2.2 Information Technology 16.0 15.0 1.0 India 10.8 4.1 6.7 Consumer Discretionary 15.1 13.2 1.9 Indonesia 9.7 1.5 8.2 Industrials 14.4 12.6 1.8 Philippines 5.9 0.8 5.1 Financials 14.3 30.1 -15.8 Australia 3.4 13.3 -9.9 Health Care 11.5 4.5 7.0 Sri Lanka 3.1 0.0 3.1 Telecom Services 2.4 5.5 -3.1 South Korea 2.5 8.2 -5.7 Energy 2.0 3.1 -1.1 Taiwan 2.4 7.0 -4.6 Materials 1.5 6.7 -5.2 Malaysia 1.5 1.9 -0.4 0.0 3.1 -3.1 Thailand 1.3 1.3 0.0 Vietnam 0.9 0.0 0.9 Utilities Cash and Other Assets, Less Liabilities 4.5 0.0 4.5 Singapore 0.0 2.7 -2.7 New Zealand Cash and Other Assets, Less Liabilities 0.0 0.3 -0.3 4.5 0.0 4.5 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 P/E RATIOS 9 Fund You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 29.2 47.8 -18.6 P/E Using FY1 Estimates 19.6x Large Cap ($10B-$25B) 21.3 25.4 -4.1 P/E Using FY2 Estimates 17.5x Mid Cap ($3B-$10B) 25.7 24.0 1.7 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 19.3 2.8 16.5 4.5 0.0 4.5 Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 13 Matthews Pacific Tiger Fund ASIA GROWTH STRATEGIES March 31, 2015 Closed to most new investors. See Prospectus for details. Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MAPTX 577130107 09/12/94 $28.57 $2,500 1.09% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MIPTX 577130834 10/29/10 $28.56 $3 million 0.92% 69 $9.1 billion $33.1 billion 11.38%2 Benchmark MSCI AC Asia ex Japan Index3 Redemption Fee 2% within first 90 calendar days of purchase Under normal market conditions, the Matthews Pacific Tiger Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia Ex Japan, which consists of all countries and markets in Asia excluding Japan but including all other developed, emerging and frontier countries and markets in the Asian region. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months YTD 1 Year Investor Class (MAPTX) 7.53% 7.53% 17.47% 10.76% Institutional Class (MIPTX) 7.53% 7.53% 17.64% 10.93% MSCI AC Asia ex Japan Index 4.90% 4.90% 11.02% $70,000 $62,174 10 Years 9.75% 12.39% n.a. n.a. Since Inception 9.30% 7.09% 6.53% 10.08% 4.35%4 Matthews Pacific Tiger Fund MSCI AC Asia ex Japan Index4 $50,000 Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 7.11% 5 Years GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $60,000 INVESTMENT APPROACH 3 Years Lipper Pacific ex Japan Funds Category Average5 $40,000 $30,000 $25,244 $20,000 $24,002 $10,000 $0 09/94 05/98 01/02 09/05 05/09 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 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, Philippines, Singapore, South Korea, Taiwan and Thailand. The Matthews Pacific Tiger Fund invests in countries that are not in the MSCI All Country Asia ex Japan Index. 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. 4 Calculated from 8/31/94. 5 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. 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. FS003_MAPTX_1Q15 14 Matthews Pacific Tiger Fund PORTFOLIO MANAGEMENT March 31, 2015 Sharat Shroff, CFA Lead Manager Richard Gao Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Country Amorepacific Corp. South Korea 3.6% Ping An Insurance Group Co. of China, Ltd. China/Hong Kong 2.9% Sinopharm Group Co., Ltd. China/Hong Kong 2.5% DKSH Holding, Ltd. Switzerland 2.5% Kotak Mahindra Bank, Ltd. India 2.4% Hengan International Group Co., Ltd. China/Hong Kong 2.4% Naver Corp. South Korea 2.3% Tata Power Co., Ltd. India 2.3% President Chain Store Corp. Taiwan 2.2% Orion Corp. South Korea 2.2% % OF ASSETS IN TOP TEN 25.3% COUNTRY ALLOCATION (%) 7 Fund SECTOR ALLOCATION (%) 7 Benchmark Difference China/Hong Kong 30.6 40.0 -9.4 India 18.8 8.9 9.9 South Korea Fund Benchmark Difference Financials 26.3 33.2 -6.9 Consumer Staples 19.8 5.3 14.5 15.9 17.9 -2.0 Information Technology 16.3 22.5 -6.2 Indonesia 7.2 3.3 3.9 Consumer Discretionary 8.8 8.3 0.5 Taiwan 6.8 15.3 -8.5 Health Care 8.6 2.0 6.6 Thailand 5.0 2.9 2.1 Utilities 5.5 4.1 1.4 Malaysia 3.6 4.2 -0.6 Industrials 5.4 8.5 -3.1 Philippines 2.8 1.7 1.1 Telecom Services 3.3 6.7 -3.4 Switzerland 2.5 0.0 2.5 Materials 1.9 4.6 -2.7 Vietnam 1.3 0.0 1.3 4.8 -4.8 0.9 0.0 0.9 Singapore Cash and Other Assets, Less Liabilities 0.5 5.8 -5.3 Energy Cash and Other Assets, Less Liabilities 0.0 United States 4.1 0.0 4.1 4.1 0.0 4.1 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 P/E RATIOS 9 Fund You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 25.8 47.2 -21.4 P/E Using FY1 Estimates 19.2x Large Cap ($10B-$25B) 32.6 25.7 6.9 P/E Using FY2 Estimates 16.9x Mid Cap ($3B-$10B) 29.6 23.0 6.6 7.9 4.1 3.8 4.1 0.0 4.1 Small Cap (under $3B) Cash and Other Assets, Less Liabilities In-Bok Song Co-Manager Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 15 Matthews Emerging Asia Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 After Fee Waiver and Expense Reimbursement2 MEASX 577125883 04/30/13 $11.52 $2,500 2.39% MIASX 577125875 04/30/13 $11.53 $3 million 2.21% 1.48% 1.25% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover Under normal market conditions, the Matthews Emerging Asia Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia excluding Japan, South Korea, Hong Kong and Singapore. The Fund may also invest in the convertible securities, of any duration or quality of companies located in Asia excluding Japan, South Korea, Hong Kong and Singapore. The Fund is expected to invest a substantial portion of its net assets in the emerging countries and markets in the Asian region, including but not limited to, Bangladesh, Cambodia, China (including Taiwan, but excluding Hong Kong), India, Indonesia, Laos, Malaysia, Mongolia, Myanmar, Pakistan, Papua New Guinea, Philippines, Sri Lanka, Thailand and Vietnam (“Emerging Asian Countries”). The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. PERFORMANCE AS OF MARCH 31, 2015 81 $160.4 million $7.6 billion 8.21%3 Benchmark MSCI Emerging Markets Asia Index4 Redemption Fee 2% within first 90 calendar days of purchase 3 Months Average Annual Total Returns YTD 1 Year 3 Years 5 Years Since Inception 10 Years Investor Class (MEASX) -0.69% -0.69% 9.62% n.a. n.a. n.a. 7.98% Institutional Class (MIASX) -0.60% -0.60% 9.88% n.a. n.a. n.a. 8.21% 5.26% 11.08% n.a. n.a. n.a. 6.66% MSCI Emerging Markets Asia Index 5.26% GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $12,000 $11,587 $11,500 $11,316 $11,000 Matthews Emerging Asia Fund MSCI Emerging Markets Asia Index4 Lipper Emerging Markets Funds Category Average5 $10,500 $10,000 INVESTMENT APPROACH Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. $9,654 $9,500 $9,000 $8,500 03/13 09/13 03/14 09/14 03/15 1 Matthews Asia Funds does not charge 12b-1 fees. 2 Matthews has contractually agreed to waive fees and reimburse expenses until August 31, 2015 to the extent needed to limit Total Annual Fund Operating Expenses to 1.25% by waiving class specific and non-class specific expenses for the Institutional Class and agreed to reduce the expense ratio by waiving an equal amount of non-class specific expenses for the Investor Class. Because certain expenses of the Investor Class may be higher than the Institutional Class and class specific expenses may be waived solely for the Institutional Class, the Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may exceed 1.25%. If the expenses fall below the expense limitation in a year within three years after Matthews has made such a waiver or reimbursement, the Fund may reimburse Matthews up to an amount not to cause the expenses for that year to exceed the expense limitation. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the Trust on behalf of the Fund on 60 days’ written notice. 3 The lesser fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 4 The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock markets of China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand. 5 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. Calculated from 4/30/13. 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. FS021_MEASX_1Q15 16 Matthews Emerging Asia Fund PORTFOLIO MANAGEMENT March 31, 2015 Taizo Ishida Lead Manager Robert Harvey, CFA Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Country CIMC Enric Holdings, Ltd. China/Hong Kong British American Tobacco Bangladesh Co., Ltd. Bangladesh 3.4% 3.2% National Development Bank PLC Sri Lanka 2.9% Sampath Bank PLC Sri Lanka 2.9% PT Matahari Department Store Indonesia 2.8% Square Pharmaceuticals, Ltd. Bangladesh 2.7% PT Gudang Garam Indonesia 2.6% PC Jeweller, Ltd. India 2.5% Puregold Price Club, Inc. Philippines 2.4% The Searle Pakistan, Ltd. Pakistan 2.4% % OF ASSETS IN TOP TEN 27.8% COUNTRY ALLOCATION (%) 7 Fund Bangladesh 13.7 Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC SECTOR ALLOCATION (%) 7 Benchmark Difference 0.0 13.7 Fund Consumer Staples 26.9 Benchmark Difference 6.1 20.8 China/Hong Kong 13.3 33.8 -20.5 Consumer Discretionary 19.3 8.2 11.1 India 12.0 10.9 1.1 Financials 18.2 26.8 -8.6 Pakistan 12.0 0.0 12.0 Industrials 10.3 7.5 2.8 Indonesia 10.5 4.0 6.5 Health Care 8.3 2.5 5.8 Vietnam 9.9 0.0 9.9 Materials 4.3 5.7 -1.4 Philippines 9.3 2.0 7.3 Information Technology 3.6 27.4 -23.8 Sri Lanka 9.1 0.0 9.1 Energy 3.3 5.8 -2.5 Thailand 3.0 3.5 -0.5 Utilities 1.7 3.1 -1.4 Australia 1.2 0.0 1.2 0.0 6.9 -6.9 Cambodia 1.2 0.0 1.2 Singapore 0.5 0.0 0.5 Telecom Services Cash and Other Assets, Less Liabilities 4.1 0.0 4.1 Malaysia 0.2 5.2 -5.0 South Korea 0.0 21.9 -21.9 Taiwan Cash and Other Assets, Less Liabilities 0.0 18.7 -18.7 4.1 0.0 4.1 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 P/E RATIOS 9 Fund You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 2.6 45.5 -42.9 P/E Using FY1 Estimates 14.0x Large Cap ($10B-$25B) 4.5 25.3 -20.8 P/E Using FY2 Estimates 12.2x Mid Cap ($3B-$10B) 15.7 24.1 -8.4 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 73.1 5.1 68.0 4.1 0.0 4.1 Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 17 Matthews China Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MCHFX 577130701 02/19/98 $22.94 $2,500 1.09% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MICFX 577130818 10/29/10 $22.92 $3 million 0.92% 58 $994.0 million $45.8 billion 10.23%2 Benchmark MSCI China Index3 Redemption Fee 2% within first 90 calendar days of purchase Under normal market conditions, the Matthews China Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in China. China includes its administrative and other districts, such as Hong Kong. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months YTD 1 Year Investor Class (MCHFX) 6.90% 6.90% 11.65% 3.89% Institutional Class (MICFX) 6.90% 6.90% 11.80% 4.08% MSCI China Index 8.12% 8.12% 24.34% 10.87% 10 Years Since Inception 2.20% 11.97% 10.08% n.a. n.a. -0.41% 5.46% 14.13% 4.37%4 Matthews China Fund $51,686 $50,000 Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 5 Years GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $60,000 INVESTMENT APPROACH 3 Years $41,854 $40,000 MSCI China Index4 Lipper China Region Funds Category Average4,5 $30,000 $20,767 $20,000 $10,000 $0 02/98 02/01 02/04 02/07 02/10 02/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes China-affiliated corporations and H shares listed on the Hong Kong exchange, and B shares listed on the Shanghai and Shenzhen exchanges. 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. 4 Calculated from 2/28/98. 5 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. 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. FS006_MCHFX_1Q15 18 Matthews China Fund PORTFOLIO MANAGEMENT March 31, 2015 Richard H. Gao Lead Manager Henry Zhang, CFA Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Sector Tencent Holdings, Ltd. Information Technology 5.3% Ping An Insurance Group Co. of China, Ltd. Financials 3.7% China Mobile, Ltd. Telecom Services 3.6% China Resources Land, Ltd. Financials 3.5% China Vanke Co., Ltd. Financials 3.2% Sinopharm Group Co., Ltd. Health Care 3.1% China Merchants Bank Co., Ltd. Financials 2.6% Café de Coral Holdings, Ltd. Consumer Discretionary 2.6% China Longyuan Power Group Corp. Utilities 2.5% Cheung Kong Infrastructure Holdings, Ltd. Utilities 2.4% % OF ASSETS IN TOP TEN 32.5% SECTOR ALLOCATION (%) 7 Fund Financials MARKET CAP EXPOSURE (%) 7,8 Benchmark Difference -18.6 Fund 21.2 39.8 Information Technology 20.8 14.7 6.1 Large Cap ($10B-$25B) Industrials 13.6 7.1 6.5 Mid Cap ($3B-$10B) Small Cap (under $3B) Cash and Other Assets, Less Liabilities Consumer Discretionary 11.9 4.9 7.0 Health Care 10.2 2.1 8.1 Consumer Staples 8.3 4.0 4.3 Utilities 5.9 3.8 2.1 Telecom Services 4.4 11.2 -6.8 Energy 2.4 9.9 -7.5 Materials Cash and Other Assets, Less Liabilities 0.0 2.5 -2.5 1.3 0.0 1.3 Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems Mega Cap (over $25B) 32.0 Benchmark Difference 68.3 -36.3 35.7 14.0 21.7 15.9 16.4 -0.5 15.1 1.3 13.8 1.3 0.0 1.3 Winnie Chwang Co-Manager You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners Source: FactSet Research Systems P/E RATIOS 9 P/E Using FY1 Estimates 14.7x P/E Using FY2 Estimates 12.8x Source: Factset Research Systems (P/E est. as of 03/31/15) CHINA EXPOSURE (%) 10 SAR (Hong Kong) 36.8 H Shares 27.3 Overseas Limited companies (OL) 14.3 China-affiliated corporations (CAC) 14.0 A Shares Cash and Other Assets, Less Liabilities 6.3 1.3 Source: FactSet Research Systems 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 10 SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated Corporations [CAC], also known as “Red Chips,” are mainland China companies with partial state ownership listed in Hong Kong, and incorporated in Hong Kong. China A Shares are Mainland Chinese companies incorporated in China and listed on the Shanghai or Shenzhen exchanges, available mostly to local Chinese investors and qualified institutional investors. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. Overseas Listed [OL] companies are companies that conduct business in mainland China but listed in overseas markets such as Japan, Singapore, Taiwan and the United States. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 19 Matthews India Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MINDX 577130859 10/31/05 $29.20 $2,500 1.13% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MIDNX 577130768 10/29/10 $29.25 $3 million 0.95% 48 $1.7 billion $9.6 billion 14.86%2 Under normal market conditions, the Matthews India Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in publicly traded common stocks, preferred stocks and convertible securities of companies located in India. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. Inveting 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months Benchmark S&P Bombay Stock Exchange 100 Index3 Redemption Fee 2% within first 90 calendar days of purchase YTD 1 Year Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 5 Years 10 Years Since Inception Investor Class (MINDX) 10.36% 10.36% 57.70% 21.77% 11.48% n.a. 14.40% Institutional Class (MIDNX) S&P Bombay Stock Exchange 100 Index 10.42% 10.42% 58.01% 21.97% n.a. 7.94% 4.55% 4.55% 25.08% 11.56% n.a. 4.41% n.a. 12.10%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $40,000 INVESTMENT APPROACH 3 Years Matthews India Fund $35,000 $35,485 $30,000 $29,308 $25,000 $25,718 S&P Bombay Stock Exchange 100 Index4 Lipper India Region Funds Category Average4,5 $20,000 $15,000 $10,000 $5,000 10/05 02/07 06/08 10/09 02/11 06/12 10/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 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. 4 Calculated from 10/31/05. 5 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. 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. FS007_MINDX_1Q15 20 Matthews India Fund PORTFOLIO MANAGEMENT March 31, 2015 Sunil Asnani Lead Manager Sharat Shroff, CFA Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Sector Shriram City Union Finance, Ltd. Financials ITC, Ltd. Consumer Staples 5.1% 4.9% Taro Pharmaceutical Industries, Ltd. Health Care 4.4% IndusInd Bank, Ltd. Financials 4.1% Cognizant Technology Solutions Corp. Information Technology 4.1% Ajanta Pharma, Ltd. Health Care 3.7% Housing Development Finance Corp. Financials 3.7% Emami, Ltd. Consumer Staples 3.6% eClerx Services, Ltd. Information Technology 3.6% Kotak Mahindra Bank, Ltd. Financials 3.5% % OF ASSETS IN TOP TEN 40.7% SECTOR ALLOCATION (%) 7 Fund MARKET CAP EXPOSURE (%) 7,8 Benchmark Difference Financials 25.5 30.7 Consumer Staples 17.3 Information Technology 13.9 Health Care Industrials Fund -5.2 Mega Cap (over $25B) 10.1 7.2 Large Cap ($10B-$25B) 14.0 -0.1 13.6 7.1 6.5 12.3 7.6 4.7 Consumer Discretionary 9.3 9.4 -0.1 Materials 7.0 7.0 0.0 Energy 0.0 8.5 -8.5 Utilities 0.0 3.2 -3.2 Telecom Services Cash and Other Assets, Less Liabilities 0.0 2.4 -2.4 1.1 0.0 1.1 Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems 16.8 Benchmark Difference 54.9 -38.1 4.8 18.1 -13.3 Mid Cap ($3B-$10B) 28.0 24.0 4.0 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 49.3 3.0 46.3 1.1 0.0 1.1 You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners Source: FactSet Research Systems P/E RATIOS 9 P/E Using FY1 Estimates 26.0x P/E Using FY2 Estimates 22.2x Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 21 Matthews Japan Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MJFOX 577130800 12/31/98 $18.43 $2,500 1.10% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MIJFX 577130792 10/29/10 $18.44 $3 million 0.96% Under normal market conditions, the Matthews Japan Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Japan. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. PERFORMANCE AS OF MARCH 31, 2015 104 $778.1 million $21.4 billion 42.52%2 Benchmark MSCI Japan Index3 Tokyo Stock Price Index (TOPIX)4 Redemption Fee 2% within first 90 calendar days of purchase INVESTMENT APPROACH Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. Average Annual Total Returns 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception 3.40% 5.97% Investor Class (MJFOX) 17.39% 17.39% 16.94% 15.52% 12.04% Institutional Class (MIJFX) 17.38% 17.38% 17.08% 15.66% MSCI Japan Index 10.34% 10.34% 12.39% Tokyo Stock Price Index (TOPIX) 9.96% 9.96% 12.09% n.a. n.a. 12.92% 9.60% 6.08% 3.70% 3.09%5 9.69% 6.38% 3.42% 3.46%5 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $30,000 Matthews Japan Fund $25,000 $25,648 $20,000 $19,783 $17,366 $15,000 $16,400 MSCI Japan Index5 Tokyo Stock Price Index (TOPIX)5 Lipper Japanese Funds Category Average5,6 $10,000 $5,000 12/98 12/01 12/04 12/07 12/10 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 The MSCI Japan Index is a free float-adjusted market capitalization-weighted index of Japanese equities listed in Japan. 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. 4 The Tokyo Stock Price Index (TOPIX) is a market capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. 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. 5 Calculated from 12/31/98. 6 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. 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. FS008_MJFOX_1Q15 22 Matthews Japan Fund PORTFOLIO MANAGEMENT March 31, 2015 Taizo Ishida Lead Manager Kenichi Amaki Co-Manager TOP TEN HOLDINGS 7 % of Net Assets Sector Toyota Motor Corp. Consumer Discretionary Kao Corp. Consumer Staples 3.1% 3.0% Seven & I Holdings Co., Ltd. Consumer Staples 2.6% M3, Inc. Health Care 2.5% ORIX Corp. Financials 2.5% Sysmex Corp. Health Care 2.4% Asahi Intecc Co., Ltd. Health Care 2.3% Keyence Corp. Information Technology 2.2% SoftBank Corp. Telecom Services 2.2% Pigeon Corp. Consumer Staples 2.1% % OF ASSETS IN TOP TEN 24.9% SECTOR ALLOCATION (%) 8 Fund Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC MARKET CAP EXPOSURE (%) 8,9 Benchmark Difference Fund Benchmark Difference Industrials 25.0 19.4 5.6 Mega Cap (over $25B) Information Technology 16.1 11.5 4.6 Large Cap ($10B-$25B) 19.9 27.8 -7.9 Consumer Staples 14.5 6.9 7.6 Mid Cap ($3B-$10B) 19.3 25.6 -6.3 Consumer Discretionary 13.9 22.6 -8.7 1.9 31.1 12.3 6.9 5.4 Financials 9.5 18.5 -9.0 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 33.0 Health Care 3.8 0.0 3.8 Telecom Services 2.8 5.0 -2.2 Materials 2.1 6.1 -4.0 Utilities 0.0 2.3 -2.3 Energy Cash and Other Assets, Less Liabilities 0.0 0.8 -0.8 3.8 0.0 3.8 Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems 24.0 44.7 You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. -20.7 Matthews Asia Funds are distributed in Latin America by HMC Partners Source: FactSet Research Systems P/E RATIOS 10 P/E Using FY1 Estimates 21.3x P/E Using FY2 Estimates 19.4x Source: Factset Research Systems (P/E est. as of 03/31/15) 7 Holdings may combine more than one security from the same issuer and related depositary receipts. 8 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 9 Equity market cap of issuer. 10 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 23 Matthews Korea Fund ASIA GROWTH STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MAKOX 577130305 01/03/95 $6.14 $2,500 1.13% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MIKOX 577130826 10/29/10 $6.17 $3 million 0.97% 50 $192.6 million $25.7 billion 17.37%2 Benchmark Korea Composite Stock Price Index (KOSPI)3 Redemption Fee 2% within first 90 calendar days of purchase Under normal market conditions, the Matthews Korea Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in South Korea. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months YTD 1 Year Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 10 Years 9.84% 6.23% n.a. 9.69% Investor Class (MAKOX) 8.67% 8.67% 8.98% 10.30% 10.62% 8.63% 8.63% 9.12% 10.38% 5.38% 5.38% -0.20% 2.40% Since Inception 5 Years Institutional Class (MIKOX) Korea Composite Stock Price Index (KOSPI) n.a. 5.58% 8.46% 3.25%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $50,000 INVESTMENT APPROACH 3 Years Matthews Korea Fund $39,926 $40,000 $33,985 $30,000 $20,000 Korea Composite Stock Price Index (KOSPI)4 Lipper Pacific ex Japan Funds Category Average5 $19,106 $10,000 $0 01/95 09/98 05/02 01/06 09/09 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 The Korea Composite Stock Price Index (KOSPI) is a market capitalization-weighted index of all common stocks listed on the Korea Stock Exchange. 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. 4 Calculated from 1/3/95. 5 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. Calculated from 12/31/94. 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. FS009_MAKOX_1Q15 24 Matthews Korea Fund PORTFOLIO MANAGEMENT March 31, 2015 J. Michael Oh, CFA Lead Manager Michael Han, CFA Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Sector Samsung Electronics Co., Ltd. Information Technology BGF Retail Co., Ltd. Consumer Staples 4.9% 4.0% Shinhan Financial Group Co., Ltd. Financials 3.9% Samsung Fire & Marine Insurance Co., Ltd., Pfd. Financials 3.3% Orion Corp. Consumer Staples 3.1% LG Household & Health Care, Ltd., Pfd. Consumer Staples 3.0% Samsung Electronics Co., Ltd., Pfd. Information Technology 3.0% Amorepacific Corp., Pfd. Consumer Staples 2.9% E-Mart Co., Ltd. Consumer Staples 2.8% SK Hynix, Inc. Information Technology 2.6% % OF ASSETS IN TOP TEN 33.5% SECTOR ALLOCATION (%) 7 Fund Consumer Staples 25.9 Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC MARKET CAP EXPOSURE (%) 7,8 Benchmark Difference 9.3 Fund 16.6 Mega Cap (over $25B) 13.0 Benchmark Difference 25.4 -12.4 Consumer Discretionary 23.0 15.7 7.3 Large Cap ($10B-$25B) 32.0 25.3 6.7 Financials 17.3 12.6 4.7 Mid Cap ($3B-$10B) 23.7 24.6 -0.9 Information Technology 13.3 28.0 -14.7 24.7 3.8 15.6 -11.4 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 28.5 4.2 2.8 0.0 2.8 Industrials Telecom Services 4.1 2.8 1.3 Materials 3.8 9.2 -5.4 Health Care 3.0 1.9 1.1 Energy 2.6 1.8 0.8 Utilities Cash and Other Assets, Less Liabilities 0.0 3.1 -3.1 2.8 0.0 2.8 Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in Latin America by HMC Partners Source: FactSet Research Systems P/E RATIOS 9 P/E Using FY1 Estimates 11.7x P/E Using FY2 Estimates 10.5x Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 25 Matthews Asia Small Companies Fund ASIA SMALL COMPANY STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MSMLX 577125206 09/15/08 $21.96 $2,500 1.47% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MISMX 577125867 04/30/13 $21.97 $3 million 1.25% 79 $747.8 million $1.2 billion 21.70%2 Benchmark MSCI AC Asia ex Japan Small Cap Index3 Redemption Fee 2% within first 90 calendar days of purchase Under normal market conditions, the Matthews Asia Small Companies Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies located in Asia Ex Japan, which consists of all countries and markets in Asia excluding Japan but including all other developed, emerging and frontier countries and markets in the Asian region. The Fund seeks to invest in smaller companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. Investing in small companies is more risky and volatile than investing in large companies. 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. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months YTD 1 Year 3 Years 5 Years Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. Since Inception Investor Class (MSMLX) 2.33% 2.33% 9.29% 9.85% 9.33% n.a. 15.94% Institutional Class (MISMX) MSCI AC Asia ex Japan Small Cap Index 2.38% 2.38% 9.54% n.a. n.a. n.a. 7.29% 5.57% 5.57% 4.95% 7.25% 4.52% n.a. 10.37%4 GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $30,000 INVESTMENT APPROACH 10 Years $26,307 $25,000 Matthews Asia Small Companies Fund MSCI AC Asia ex Japan Small Cap Index $20,000 $19,065 $18,558 $15,000 Lipper Pacific ex Japan Funds Category Average5 $10,000 $5,000 09/08 01/10 05/11 09/12 01/14 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 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, Philippines, Singapore, South Korea, Taiwan and Thailand. 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. 4 Calculated from 9/15/08. 5 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. Calculated from 9/30/08. 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. FS012_MSMLX_1Q15 26 Matthews Asia Small Companies Fund PORTFOLIO MANAGEMENT March 31, 2015 Lydia So, CFA Lead Manager Kenichi Amaki Co-Manager TOP TEN HOLDINGS 6 % of Net Assets Country PChome Online, Inc. Taiwan 2.6% Sunny Optical Technology Group Co., Ltd. China/Hong Kong 2.1% Vitasoy International Holdings, Ltd. China/Hong Kong 2.0% Kerry Logistics Network, Ltd. China/Hong Kong 2.0% Lee's Pharmaceutical Holdings, Ltd. China/Hong Kong 1.9% Security Bank Corp. Philippines 1.9% Towngas China Co., Ltd. China/Hong Kong 1.9% China Biologic Products, Inc. China/Hong Kong 1.8% Vista Land & Lifescapes, Inc. Philippines 1.8% ARA Asset Management, Ltd. Singapore 1.7% % OF ASSETS IN TOP TEN 19.7% COUNTRY ALLOCATION (%) 7 Fund SECTOR ALLOCATION (%) 7 Benchmark Difference Fund 21.3 Benchmark Difference China/Hong Kong 25.5 30.8 -5.3 Industrials 14.9 6.4 Taiwan 15.0 19.7 -4.7 Consumer Staples India 13.4 10.2 3.2 Financials 18.8 6.2 12.6 13.2 20.7 -7.5 South Korea 8.8 18.3 -9.5 Health Care 13.1 7.1 6.0 Singapore 8.0 7.5 0.5 Consumer Discretionary 13.0 18.5 -5.5 Indonesia 7.9 3.4 4.5 Information Technology 12.6 17.8 -5.2 Malaysia 6.5 4.2 2.3 Materials 2.3 9.3 -7.0 Philippines 5.5 1.8 3.7 Utilities 1.9 2.5 -0.6 Thailand 5.1 4.1 1.0 Energy 0.0 2.0 -2.0 Japan 0.4 0.0 0.4 0.0 1.0 -1.0 Vietnam Cash and Other Assets, Less Liabilities 0.1 0.0 0.1 Telecom Services Cash and Other Assets, Less Liabilities 3.8 0.0 3.8 3.8 0.0 3.8 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE (%) 7,8 P/E RATIOS 9 Fund You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 0.0 0.0 0.0 P/E Using FY1 Estimates 18.2x Large Cap ($10B-$25B) 0.0 0.0 0.0 P/E Using FY2 Estimates 15.5x Mid Cap ($3B-$10B) 1.4 5.1 -3.7 94.8 94.9 -0.1 3.8 0.0 3.8 Small Cap (under $3B) Cash and Other Assets, Less Liabilities Beini Zhou, CFA Co-Manager Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. The Fund defines Small Companies as companies with market capitalization generally between $100 million and $3 billion or the largest company included in the Fund’s primary benchmark, the MSCI All Country Asia ex Japan Small Cap Index. The Portfolio’s market cap exposure breakdown presented is used for comparison purpose and the definition of the capitalization breakdown is from MSCI. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 27 Matthews China Small Companies Fund ASIA SMALL COMPANY STRATEGIES March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 After Fee Waiver and Expense Reimbursement2 Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MCSMX 577125404 05/31/11 $9.39 $2,500 2.04% 1.50% Under normal market conditions, the Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies located in China. China includes its administrative and other districts, such as Hong Kong. The Fund seeks to invest in smaller companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. Investing in small companies is more risky and volatile than investing in large companies. 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. PERFORMANCE AS OF MARCH 31, 2015 43 $21.1 million $1.8 billion 32.42%3 Benchmark MSCI China Small Cap Index4 Redemption Fee 2% within first 90 calendar days of purchase Average Annual Total Returns 3 Months YTD 1 Year 3 Years Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 10 Years Since Inception Investor Class (MCSMX) 1.96% 1.96% 0.29% 8.67% n.a. n.a. -0.28% MSCI China Small Cap Index 6.61% 6.61% 6.41% 11.97% n.a. n.a. 0.21% GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $11,000 $10,921 $10,000 $10,080 $9,894 Matthews China Small Companies Fund MSCI China Small Cap Index Lipper China Region Funds Category Average5 $9,000 INVESTMENT APPROACH 5 Years $8,000 $7,000 $6,000 05/11 05/12 05/13 05/14 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 Matthews has contractually agreed to waive fees and reimburse expenses until August 31, 2015 to the extent needed to limit Total Annual Fund Operating Expenses to 1.50%. If the expenses fall below the expense limitation in a year within three years after Matthews has made such a waiver or reimbursement, the Fund may reimburse Matthews up to an amount not to cause the expenses for that year to exceed the expense limitation. The fee waiver and expense reimbursement may be terminated at any time by the Board of Trustees or the Trust on behalf of the Fund on 60 days’ written notice. 3 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 4 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, and 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). 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. 5 The Lipper Category Average does not reflect sales charges and is based on total return, including investment of dividends and capital gains for the stated period. 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. FS015_MCSMX_1Q15 28 Matthews China Small Companies Fund PORTFOLIO MANAGEMENT March 31, 2015 Richard H. Gao Lead Manager TOP TEN HOLDINGS 6 % of Net Assets Sector Towngas China Co., Ltd. Utilities 6.1% Sino Biopharmaceutical, Ltd. Health Care 5.5% Lee's Pharmaceutical Holdings, Ltd. Health Care 5.5% PAX Global Technology, Ltd. Information Technology 4.7% Sunny Optical Technology Group Co., Ltd. Information Technology 4.6% Shenzhen Chiwan Petroleum Industrials 4.0% Boer Power Holdings, Ltd. Industrials 4.0% Franshion Properties China, Ltd. Financials 4.0% Lijun International Pharmaceutical Holding Co., Ltd. Health Care 3.4% China Distance Education Holdings, Ltd. Consumer Discretionary 3.4% % OF ASSETS IN TOP TEN 45.2% SECTOR ALLOCATION (%) 6,7 Fund Industrials 25.8 Health Care Consumer Discretionary MARKET CAP EXPOSURE (%) 7,8 Benchmark Difference Fund 16.6 9.2 Mega Cap (over $25B) 24.5 6.8 17.7 Large Cap ($10B-$25B) 0.0 0.0 0.0 18.2 20.5 -2.3 Mid Cap ($3B-$10B) 11.4 6.0 5.4 Financials 10.3 18.2 -7.9 94.0 -8.4 10.2 14.3 -4.1 6.1 5.1 1.0 Small Cap (under $3B) Cash and Other Assets, Less Liabilities 85.6 Information Technology 3.0 0.0 3.0 Utilities Consumer Staples 1.0 5.0 -4.0 Energy 0.5 2.0 -1.5 Materials 0.4 11.3 -10.9 Telecom Services Cash and Other Assets, Less Liabilities 0.0 0.2 -0.2 3.0 0.0 3.0 Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems 0.0 Benchmark Difference 0.0 0.0 Henry Zhang, CFA Co-Manager You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC Matthews Asia Funds are distributed in Latin America by HMC Partners Source: FactSet Research Systems P/E RATIOS 9 P/E Using FY1 Estimates 13.6x P/E Using FY2 Estimates 11.4x Source: Factset Research Systems (P/E est. as of 03/31/15) CHINA EXPOSURE (%) 10 SAR (Hong Kong) 50.9 Overseas Limited companies (OL) 31.9 China-affiliated corporations (CAC) 10.2 B Shares 4.0 H Shares 0.0 Cash and Other Assets, Less Liabilities 3.0 Source: FactSet Research Systems 6 Holdings may combine more than one security from the same issuer and related depositary receipts. 7 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 8 Equity market cap of issuer. The Fund defines Small Companies as companies with market capitalization generally between $100 million and $3 billion or the largest company included in the Fund’s primary benchmark, the MSCI China Small Cap Index. The Portfolio’s market cap exposure breakdown presented is used for comparison purposes and the definition of the capitalization breakdown is from MSCI. 9 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 10 SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. Chinaaffiliated Corporations [CAC], also known as “Red Chips,” are mainland China companies with partial state ownership listed in Hong Kong, and incorporated in Hong Kong. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. Overseas Listed [OL] companies are companies that conduct business in mainland China but listed in overseas markets such as Japan, Singapore, Taiwan and the United States. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 29 Matthews Asia Science and Technology Fund ASIA SPECIALTY STRATEGY March 31, 2015 Investment Objective Long-term capital appreciation Strategy FUND FACTS Investor Class Institutional Class Ticker CUSIP Inception NAV Initial Investment Gross Expense Ratio1 MATFX 577130883 12/27/99 $14.27 $2,500 1.18% Portfolio Statistics Total # of Positions Net Assets Weighted Average Market Cap Portfolio Turnover MITEX 577125859 04/30/13 $14.27 $3 million 1.00% 51 $195.6 million $37.5 billion 62.99%2 Under normal market conditions, the Matthews Asia Science and Technology Fund seeks to achieve its investment objective by investing at least 80% of its total assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia, which consists of all countries and markets in Asia, including developed, emerging, and frontier countries and markets in the Asian region, that derive more than 50% of their revenues from the sale of products or services in science- and technology-related industries and services. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health. Risks All investments involve risks, including possible loss of principal. 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. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic region. The fund’s value may be affected by changes in the science and technology-related industries. PERFORMANCE AS OF MARCH 31, 2015 Average Annual Total Returns 3 Months YTD 1 Year 3 Years 5 Years Since Inception 10 Years Benchmark MSCI AC Asia Index3 MSCI AC Asia Information Technology Index4 Investor Class (MATFX) 4.85% 4.85% 15.17% 15.85% 11.56% 10.51% Institutional Class (MITEX) 4.85% 4.85% 15.40% n.a. n.a. n.a. 20.74% 7.41% 7.41% 11.66% 8.24% 6.25% 6.17% 2.35%5 Redemption Fee 2% within first 90 calendar days of purchase MSCI AC Asia Index MSCI AC Asia Information Technology Index 9.57% 9.57% 15.55% 11.30% 8.21% 6.91% -0.86%5 INVESTMENT APPROACH Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, one of the world’s fastest-growing regions. Since 1991, we have focused our efforts and expertise in these countries, investing through a variety of market environments. Matthews is the largest dedicated Asia-only investment specialist in the United States. With $30.0 billion in assets under management as of March 31, 2015 Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. 1 Matthews Asia Funds does not charge 12b-1 fees. 2 The lesser of fiscal year 2014 long-term purchase costs or sales proceeds divided by the average monthly market value of long-term securities. 3 The MSCI All Country Asia Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand. 4 The MSCI All Country Asia Information Technology Index is a free float–adjusted market capitalization–weighted index designed to measure the combined equity market performance of companies in the information technology sector of developed and emerging markets countries in Asia. Component companies include those of software and services, technology hardware and equipment, and semiconductors and semiconductor equipment. 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. 2.85% GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION—INVESTOR CLASS $17,500 $15,000 $12,500 $15,351 Matthews Asia Science and Technology Fund $14,241 MSCI AC Asia Index3,5 $13,303 MSCI AC Asia Information Technology Index4,5 $10,000 $8,766 $7,500 Lipper Global Science and Technology Funds Category Average5,6 $5,000 $2,500 12/99 08/02 04/05 12/07 08/10 04/13 03/15 The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of fund shares. Values are in US$. 5 Calculated from 12/31/99. 6 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. 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. FS005_MATFX_1Q15 30 Matthews Asia Science and Technology Fund March 31, 2015 J. Michael Oh, CFA Lead Manager Lydia So, CFA Co-Manager TOP TEN HOLDINGS 7 % of Net Assets Country Baidu, Inc. China/Hong Kong 9.9% Samsung Electronics Co., Ltd., Pfd. South Korea 3.0% Info Edge India, Ltd. India 2.8% SK Hynix, Inc. South Korea 2.7% JD.com, Inc. China/Hong Kong 2.6% Alibaba Group Holding, Ltd. China/Hong Kong 2.4% Cognizant Technology Solutions Corp. USA 2.4% WuXi PharmaTech Cayman, Inc. China/Hong Kong 2.4% Naver Corp. South Korea 2.4% Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan 2.3% % OF ASSETS IN TOP TEN 32.9% COUNTRY ALLOCATION (%) 8 Fund Benchmark Difference Fund 36.7 21.2 15.5 Information Technology 58.9 Japan 15.5 47.0 -31.5 South Korea 14.4 9.5 4.9 Health Care Consumer Discretionary Taiwan 12.4 8.1 4.3 India 10.1 4.7 Singapore 2.5 3.1 United States 2.4 0.0 Malaysia 1.2 2.2 Vietnam 0.9 0.0 0.9 Indonesia 0.6 1.8 -1.2 Thailand 0.0 1.5 -1.5 Philippines Cash and Other Assets, Less Liabilities 0.0 0.9 -0.9 3.3 0.0 3.3 Benchmark Difference 17.3 41.6 14.8 4.3 10.5 9.0 15.0 -6.0 Industrials 7.5 13.6 -6.1 5.4 Telecom Services 4.6 5.9 -1.3 -0.6 Consumer Staples 1.9 6.0 -4.1 2.4 Financials 0.0 26.5 -26.5 -1.0 Materials 0.0 5.3 -5.3 Utilities 0.0 3.2 -3.2 Energy Cash and Other Assets, Less Liabilities 0.0 2.9 -2.9 3.3 0.0 3.3 Source: FactSet Research Systems Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com. Source: FactSet Research Systems MARKET CAP EXPOSURE(%) 8,9 P/E RATIOS 10 Fund Matthews Asia Funds are distributed in Latin America by HMC Partners Benchmark Difference Mega Cap (over $25B) 36.6 46.0 -9.4 P/E Using FY1 Estimates 19.2x Large Cap ($10B-$25B) 19.0 26.7 -7.7 P/E Using FY2 Estimates 16.9x 6.4 24.2 -17.8 34.7 3.1 31.6 3.3 0.0 3.3 Mid Cap ($3B-$10B) You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC SECTOR ALLOCATION (%) 8 China/Hong Kong Small Cap (under $3B) Cash and Other Assets, Less Liabilities PORTFOLIO MANAGEMENT Source: FactSet Research Systems Source: Factset Research Systems (P/E est. as of 03/31/15) 7 Holdings may combine more than one security from the same issuer and related depositary receipts. 8 Percentage values in data are rounded to the nearest tenth of one percent; the values may not sum to 100% due to rounding. 9 Equity market cap of issuer. 10 The P/E figures represent the Weighted Harmonic Average P/E—which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners—weighted by the size of the company’s position within the portfolio. P/E estimates are forward looking. There is no guarantee that portfolio composition will remain unchanged or P/E estimates will be achieved. 800.789.ASIA | matthewsasia.com ©2015 Matthews International Capital Management, LLC 31 Contact Matthews Asia To learn more about Matthews or the Matthews Asia Funds, contact us at: Phone: 800.789.ASIA Web: matthewsasia.com ABOUT THE ADVISOR Matthews International Capital Management, LLC, the advisor to Matthews Asia Funds, believes in the long-term growth of Asia, concentrating our efforts and expertise within the region. Matthews employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. ❁ Largest dedicated Asia investment specialist in the United States ❁ Investing in Asia since 1991 through a variety of market environments ❁ An independent, privately owned firm with significant employee ownership ❁ Range of Asia investment strategies across the risk-reward spectrum ❁ Offering a unique investment perspective from a strategic location in San Francisco You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international markets. 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 concentration in a specific industry, sector or geographic location. Investing in small companies is more risky and more volatile than investing in large companies. Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC, Berwyn, PA Matthews Asia Funds are distributed in Latin America by HMC Partners matthewsasia.com ©2015 Matthews International Capital Management, LLC FS013-1Q15
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