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
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
Matthews Asia Funds are distributed in the
United States by Foreside Funds Distributors LLC
SECTOR ALLOCATION (%) 7
Fund
Benchmark Difference
Japan
37.9
40.6
-2.7
China/Hong Kong
16.1
18.3
India
10.8
4.1
Indonesia
9.7
1.5
8.2
Philippines
5.9
0.8
5.1
Australia
3.4
13.3
-9.9
Health Care
Sri Lanka
3.1
0.0
3.1
South Korea
2.5
8.2
Taiwan
2.4
7.0
Malaysia
1.5
Thailand
Benchmark Difference
Consumer Staples
18.3
6.2
12.1
-2.2
Information Technology
16.0
15.0
1.0
6.7
Consumer Discretionary
15.1
13.2
1.9
Industrials
14.4
12.6
1.8
Financials
14.3
30.1
-15.8
11.5
4.5
7.0
Telecom Services
2.4
5.5
-3.1
-5.7
Energy
2.0
3.1
-1.1
-4.6
Materials
1.5
6.7
-5.2
1.9
-0.4
0.0
3.1
-3.1
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