G pt016 citywire hk_05.2013_final

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G pt016 citywire hk_05.2013_final

  1. 1. The subject matter contained herein has been derived from several sourcesbelieved to be reliable and accurate at the time of compilation. MatthewsInternational Capital Management, LLC does not accept any liability for losseseither direct or consequential caused by the use ofthis information.The information contained in this presentation is for informational purposesonly and does not, in any way, constitute investment advice or an offer to sellor a solicitation of an offer to buy any security or product mentioned herein.No representation is given that shares, products or services mentioned hereinare suitable for any investor.Investing in international markets may involve additional risks, such as social andpolitical instability, market illiquidity, exchange-rate fluctuations, a high level ofvolatility and limited regulation. Fixed income investments are subject toadditional risks, including, but not limited to, interest rate, credit and inflationrisks. In addition, single-country and sector strategies may be subject to a higherdegree of market risk than diversified strategies because of concentration in aspecific industry, sector or geographic location. Investing in small companies ismore risky and more volatile than investing in large companies.Seeking Dividends fromAsia’s Growth:Matthews Asia Dividendand China Dividend FundsYu Zhang, CFAMatthews Asia I May 2013Do not give, show or quote to any other person. This document is not for public distributionand is for institutional/professional use only and has not been registered with, or approved by,any regulatory authority in any jurisdiction.©2013 Matthews International Capital Management, LLC G.PT016_Citywire HK_05.2013
  2. 2. 2Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Matthews Asia Funds Asia Dividend China Dividend Pacific Tiger China India Asia Small Companies China Small CompaniesThe following Matthews Asia Funds are currently available as Luxembourg-domiciled SICAVsAn investment in Matthews Asia Funds may be subject to risks, such as social instability, market illiquidity, exchangerate fluctuations, a high level of volatility and limited regulation. Please see the Prospectus/Offering Document for aFund for additional information about the risks of investing in a Fund.
  3. 3. 3Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013FUND FACTSInception DateFund January 31, 2013Strategy November 30, 2009Cap RangeAll CapNumber of Holdings30 to 60Turnover Range20% to 50%BenchmarkMSCI China IndexAssets(as of March 31, 2013)Fund $22.1 millionStrategy $110.8 millionInvestment ObjectiveTotal return with an emphasis on providing current income.StrategySeeks to provide a level of income that is higher than the yield generallyavailable in Chinese equity markets over the long term. Invests primarily incompanies that are paying high dividends relative to their current shareprice, or are well positioned to do so in the future.Fund Profile | China DividendJESPER MADSEN, CFAYU ZHANG, CFACo-ManagerLead Manager
  4. 4. 4Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013-50%0%50%100%150%200%China Asia ex Japan Australia Europe USA JapanPrice Return Dividend ReturnJapanEuropeChina—Dividend Contribution to Total PerformanceBreakdown of total returns (since 2000, MSCI Indices)Local currency returns.Sources: FactSet, Datastream, CLSA Asia-Pacific Markets; 2011
  5. 5. 5Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Dividends—How China Compares to Asia, Europe and the U.S.3.4%2.7%3.8%2.2%Dividend Yield*16% 16%12%7%Dividend Growth (2002-2011)**China (MSCI China Index)Asia (MSCI AC Asia Pacific Index)Europe (Bloomberg European 500 Index)U.S. (S&P 500 Index)*Forward Dividend yield estimates for 2013 calculated by JP Morgan as of 03/31/2013, using I/B/E/S estimates forcurrent Index constituents; Europe (MSCI Europe Index), China (MSCI China Index), Asia Pacific (MSCI AC Asia PacificIndex), U.S. (S&P 500 Index), and is forward looking. There is no guarantee that Forward Dividend Yield will be realized.** Compound annual growth rate based on index constituents of Europe (Bloomberg European 500 Index), China(MSCI China Index), Asia Pacific (MSCI AC Asia Pacific Index), U.S. (S&P 500 Index) as of 12/31/02, excluding those thatare no longer in existence as of fiscal year 2011.Sources: Factset, MSCI, I/B/E/S, JPMorgan, S&P, BloombergAll performance quoted represents past performance and is no guarantee of future results. It is not possible toinvest directly in an index.
  6. 6. 6Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013China’s Expanding Pool of DividendsAggregate Dividend Payment of Chinese Companies*8.220.152.3$0$10$20$30$40$50$60$70$801998 2011Dividends paid by companies listedafter 1998Dividends paid by listed companiesin 1998*Excluding A-share market. CAGR=Compound Annual Growth RateThere is no guarantee that companies will maintain or grow their dividend pay-out ratio, or pay dividends.Sources: FactSet, MICMUS$B1998 2011Number of DividendPaying Companies238 842
  7. 7. 7Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Financials46%Industrials23%ConsumerDiscretionary8%InformationTechnology1%Materials1%ConsumerStaples2% Utilities18%TelecomServices1%Breakdown of aggregate dividend payments of Chinese companies (excluding A-share market)Financials42%Industrials10%ConsumerDiscretionary11%InformationTechnology3%Materials5%ConsumerStaples3%Health Care1%Energy9%Utilities4%TelecomServices13%China’s Diverse Pool of DividendsSources: MICM, FactSetThere is no guarantee that companies will maintain or grow their dividend pay-out ratio, or pay dividends.Past Performance is no guarantee of future results.1998 2011
  8. 8. 8Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Corporate GovernanceDividends can signal better corporate governance Aligns minority with majority shareholders Important tool to overcome asymmetry in information Often signal of better financial reporting
  9. 9. 9Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Matthews China Dividend Balances Dividend Yield and GrowthDividend yield and dividend growth data depicted are for all securities held in the largest account of the Matthews China Dividend Strategy. Each pointrepresents a plotting of the portfolio company’s trailing dividend yield as of 3/31/13 and its estimated 3-year annual dividend growth rate. The 3-yearannual dividend growth rate estimates were calculated as of 3/31/13 using MICM estimates and are forward looking. Color depiction represents aportfolio company’s dividend payout ratio based on company dividend policy, if available. Otherwise 5-year average payout ratio is utilized (or longestavailable for companies with less than 5-year history) adjusted to exclude extraordinary or temporary distributions. Estimated 3-year dividend growthwas calculated as of 3/31/13 using data from FactSet and Bloomberg. There is no guarantee that future dividend growth will be achieved. There is noguarantee that the composition of the portfolio will remain unchanged or that the companies in the portfolio will achieve their forecasted dividendgrowth rate, maintain or grow their dividend pay-out ratio, or pay dividends. Past yields are no guarantee of future yields. Sources: FactSet ResearchSystems, Bloomberg, MICM.Bubble sizes are in proportion to the portfolio weight of individual positions as of 3/31/13.DIVIDEND YIELD VS. DIVIDEND GROWTH3Yr Dividend Growth0%2%4%6%8%10%12%14%16%18%20%0% 1% 2% 3% 4% 5% 6% 7%Dividend YieldPAYOUT RATIORed 80+%Amber 50-80%Blue 30-50%Green 0-30%
  10. 10. 10Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Case Study | Chinese Food and Beverage CompanySources: Bloomberg, MICM1.03 1.051.241.410.000.501.001.502.0005001,0001,5002,0002,500FY 2008 FY 2009 FY 2010 FY 2011Free Cash Flow Dividend Paid Capital Expenditures DPS (HKD cents)COMPANY CASH FLOW GENERATIONRMB mil3 YR Dividend CAGR: 11%
  11. 11. 11Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013China Offers a Compelling Combination of Income and Growth Dividends serve as a means of realizing tangible value from a long-term investment Dividend-paying companies tend to exhibit lower volatility Dividends help cut out short-term noise and focus on long-term sustainable growth Dividends provide a signal that the interests of minority shareholders are valued by managementBenefits of dividend-focused investing
  12. 12. 12Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013ACTUAL RETURN, NOT ANNUALIZEDInvestment Returns | China Dividend FundAs of March 31, 2013-0.61%-1.90%-4.57%-8.32%1 Month (02/28/13 - 03/31/13) Since Inception (01/31/13)China Dividend Fund (I Acc, USD) MSCI China IndexAll performance quoted represents past performance and is no guarantee of future results. Investmentreturn and principal value will fluctuate with market conditions so that when redeemed, shares may beworth more or less than the original cost. Current performance may be lower or higher than performanceshown. Investors investing in funds denominated in non-local currency should be aware of the risk ofcurrency exchange fluctuations that may cause a loss of principal. Performance details provided are basedon a NAV to NAV basis, and are net of management fees and other expenses.Sources: JP Morgan, Bloomberg, MICM
  13. 13. 13Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013AVERAGE ANNUAL TOTAL RETURNSInvestment Returns | China Dividend StrategyAs of March 31, 20131.54%13.53%9.85% 10.27%-4.54%6.91%0.77% 0.35%3 Months 1 Year 3 Year Since Inception (11/30/09)China Dividend Strategy MSCI China IndexPerformance results are of the largest account in the noted strategy managed by Matthews International Capital Management LLC. Theperformance results are net of advisory and other fees. Matthews’ advisory fees may vary depending on the size and nature of the assetsand account. All performance is in US$ and includes all dividends and interest accrued income, realized and unrealized gains or losses,accrued expenses, and are net of all brokerage commissions and execution costs and advisory and other fees. Individual accountperformance will vary. Performance quoted represents past performance and is no guarantee of future results. This performanceinformation does not, and it is not intended to, represent performance of the Matthews China Dividend Fund (SICAV). Performanceresults, portfolio characteristics, and holdings information for the Matthews China Dividend Fund (SICAV) may vary from therepresentative account for the strategy.Sources: BNY Mellon Investment Servicing, Bloomberg, MICM
  14. 14. 14Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Portfolio Characteristics | China Dividend FundAs of March 31, 2013Benchmark: MSCI China IndexThe information contained in this presentation does not, in any way, constitute investment advice.Portfolio characteristics for the Fund may vary from time to time from what is shown.Sources: FactSet Research Systems, MICMSECTOR ALLOCATION (%)Fund Benchmark DifferenceConsumer Discretionary 30.9 4.9 26.0Financials 17.4 40.2 -22.8Industrials 14.0 6.2 7.8Health Care 8.4 0.9 7.5Energy 8.3 17.0 -8.7Telecom Services 6.4 11.4 -5.0Consumer Staples 5.9 5.4 0.5Utilities 4.7 3.6 1.1Information Technology 2.6 6.2 -3.6Materials 1.1 4.2 -3.1Cash and Other 0.3 0.0 0.3
  15. 15. 15Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Portfolio Characteristics | China Dividend FundAs of March 31, 2013MARKET CAP EXPOSURE (%)Fund Benchmark DifferenceLarge Cap ($5B+) 39.0 89.4 -50.4Mid Cap ($1B–$5B) 44.6 10.6 34.0Small Cap (<$1B) 16.1 0.0 16.1Cash 0.3 0.0 0.3PORTFOLIO CHARACTERISTICSFundAssets $22.1 millionWeighted Average Market Cap $27.9 billionP/E using FY1 Estimates* 12.8xP/E using FY2 Estimates* 11.2xDividend Yield** 3.44%The information contained in this presentation does not, in any way, constitute investment advice.Portfolio characteristics for the Fund may vary from time to time from what is shown.Source: FactSet Research Systems, Bloomberg, MICMBenchmark: MSCI China Index*The price to earnings ratio (P/E) estimates are calculated by dividing the marketprice per share by the expected earnings per share for a 12 month period (FY1) and24 month period (FY2). P/E estimates were calculated as of 03/31/13 using data fromFactSet and are forward looking. There is no guarantee that P/E estimates will beachieved. There is no guarantee that the composition of the portfolio will remainunchanged, or that the companies in the portfolio will achieve their forecasted P/Eratios. Information provided is unaudited.**The Dividend Yield (trailing) for the portfolio is the weighted average sum of thedividend paid per share during the last 12 months divided by the current price. Theannualized dividend yield for the Fund is for the equity-only portion of the portfolio.Please note that this is based on gross equity portfolio holdings and does not reflectthe actual yield an investor in the Fund would receive. Information provided isunaudited. Past yields are no guarantee of future yields.
  16. 16. 16Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Top Ten Holdings | China Dividend FundAs of March 31, 2013Company Sector (%)Haitian International Holdings Industrials 4.1Minth Group Ltd Consumer Discretionary 3.8Dongfeng Motor Group Co Ltd Consumer Discretionary 3.7Yuexiu Real Estate Investment Trust Financials 3.7Capitaretail China Trust Financials 3.6Television Broadcasts Ltd Consumer Discretionary 3.6HSBC Holdings PLC Financials 3.6China Shenhua Energy Co Ltd Energy 3.5China Mobile Ltd Telecom Services 3.4Pacific Hospital Supply Co Ltd Health Care 3.4Total for Top 10 36.4%The information contained in this presentation does not, in any way, constitute investment advice. It should not beassumed that any investment will be profitable or will equal the performance of the portfolios or any securities or anysectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.Sources: BNY Mellon Investment Servicing, JP Morgan, MICM
  17. 17. 17Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Portfolio Positioning— Seeks companies that can deliver sustainable dividend growth through a strong competitive position,defensive business model and improving dividend policies— Emphasizes exposure to rising domestic household income with holdings in consumer discretionary andconsumer staples companies— Portfolio currently has no direct holdings in mainland Chinese banks and residential real estatedevelopers as the sustainability of dividends within these industries appears questionableStrategy | China Dividend FundThe statements above are based on the beliefs and assumptions of our portfolio management team and on theinformation currently available to our team at the time of such statements. Although we believe that the expectationsreflected in these statements are reasonable, we can give no assurance that these expectations will prove to becorrect. Please see the Prospectus/Offering Document for the Funds for additional information and the risks ofinvesting in the Funds.
  18. 18. 18Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Looking Forward— Equity markets may remain volatile as macroeconomic indicators continue to paint a mixed picture ofChina’s economy— The potential impact on China’s financial system of informal lending or “shadow banking,” drivenmostly by a trend of financial disintermediation, warrants close monitoring— China’s universe of dividend-paying companies and the total pool of dividends should both expandfollowing additional IPOs and improving dividend policiesStrategy | China Dividend FundThe statements above are based on the beliefs and assumptions of our portfolio management team and on theinformation currently available to our team at the time of such statements. Although we believe that the expectationsreflected in these statements are reasonable, we can give no assurance that these expectations will prove to becorrect. Please see the Prospectus/Offering Document for the Funds for additional information and the risks ofinvesting in the Funds.
  19. 19. 19Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Appendix
  20. 20. 20Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Standard Deviation | China Dividend Strategy vs. MCSI China IndexDecember 2009 – March 2013 (not annualized if less than 1 year)Performance results are of the largest account in the noted strategy managed by Matthews International Capital Management LLC. Theperformance results are net of advisory and other fees. Matthews’ advisory fees may vary depending on the size and nature of the assetsand account. All performance is in US$ and includes all dividends and interest accrued income, realized and unrealized gains or losses,accrued expenses, and are net of all brokerage commissions and execution costs and advisory and other fees. Individual accountperformance will vary. Performance quoted represents past performance and is no guarantee of future results. This performanceinformation does not, and it is not intended to, represent performance of the Matthews China Dividend Fund (SICAV). Performanceresults, portfolio characteristics, and holdings information for the Matthews China Dividend Fund (SICAV) may vary from therepresentative account for the strategy.Sources: Zephyr, MICMCompany 3 Months 1 Year 3 Years Analysis PeriodMatthews China Dividend Strategy 3.59% 11.56% 14.99% 14.72%MSCI China Index 8.39% 17.78% 21.80% 21.45%
  21. 21. 21Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013AVERAGE ANNUAL TOTAL RETURNSInvestment Returns | Asia Dividend FundAs of March 31, 20138.12%17.15%9.55%5.51%10.19%5.52%3 Months 1 Year Since Inception (04/30/10)Asia Dividend Fund (I Acc, USD) MSCI AC Asia Pacific IndexAll performance quoted represents past performance and is no guarantee of future results. Investmentreturn and principal value will fluctuate with market conditions so that when redeemed, shares may beworth more or less than the original cost. Current performance may be lower or higher than performanceshown. Investors investing in funds denominated in non-local currency should be aware of the risk ofcurrency exchange fluctuations that may cause a loss of principal. Performance details provided are basedon a NAV to NAV basis, and are net of management fees and other expenses.Sources: JP Morgan, Bloomberg, MICM
  22. 22. 22Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Investment Returns | Pacific Tiger FundAs of March 31, 2013AVERAGE ANNUAL TOTAL RETURNS3.05%11.09%8.01%-0.42%7.41%5.69%3 Months 1 Year Since Inception (04/30/2010)Pacific Tiger Fund (I Acc, USD) MSCI AC Asia ex Japan IndexAll performance quoted represents past performance and is no guarantee of future results. Investment return and principal value willfluctuate with market conditions so that when redeemed, shares may be worth more or less than the original cost. Current performancemay be lower or higher than performance shown. Investors investing in funds denominated in non-local currency should be aware of therisk of currency exchange fluctuations that may cause a loss of principal. Performance details provided are based on a NAV to NAV basis,and are net of management fees and other expenses.Sources: JP Morgan, Bloomberg, MICM
  23. 23. 23Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Investment Returns | China FundAs of March 31, 2013All performance quoted represents past performance and is no guarantee of future results. Investment return and principal value willfluctuate with market conditions so that when redeemed, shares may be worth more or less than the original cost. Current performancemay be lower or higher than performance shown. Investors investing in funds denominated in non-local currency should be aware of therisk of currency exchange fluctuations that may cause a loss of principal. Performance details provided are based on a NAV to NAV basis,and are net of management fees and other expenses.Sources: JP Morgan, Bloomberg, MICMAVERAGE ANNUAL TOTAL RETURNS-1.57%1.04%2.03%-4.54%6.91%2.49%3 Months 1 Year Since Inception (02/26/2010)China Fund (I ACC, USD) MSCI China Index
  24. 24. 24Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Investment Returns | India FundAs of March 31, 2013All performance quoted represents past performance and is no guarantee of future results. Investment return and principal value willfluctuate with market conditions so that when redeemed, shares may be worth more or less than the original cost. Current performancemay be lower or higher than performance shown. Investors investing in funds denominated in non-local currency should be aware of therisk of currency exchange fluctuations that may cause a loss of principal. Performance details provided are based on a NAV to NAV basis,and are net of management fees and other expenses.Sources: JP Morgan, Bloomberg, MICMAVERAGE ANNUAL TOTAL RETURNS-0.23%4.69%-7.64%-4.25%1.80%-9.22%3 Months 1 Year Since Inception (06/30/11)India Fund (I Acc, USD) Bombay Stock Exchange (BSE) 100 Index
  25. 25. 25Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013AVERAGE ANNUAL TOTAL RETURNSInvestment Returns | China Small Companies FundAs of March 31, 2013All performance quoted represents past performance and is no guarantee of future results. Investment return and principal value willfluctuate with market conditions so that when redeemed, shares may be worth more or less than the original cost. Current performancemay be lower or higher than performance shown. Investors investing in funds denominated in non-local currency should be aware of therisk of currency exchange fluctuations that may cause a loss of principal. Performance details provided are based on a NAV to NAV basis,and are net of management fees and other expenses.Sources: JP Morgan, Bloomberg, MICM8.50% 8.39%3.13%5.79%17.77%7.33%3 Months 1 Year Since Inception (2/29/12)China Small Companies Fund (I Acc, USD) MSCI China Small Cap Index
  26. 26. 26Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Appendix I | Investment Team BiosPortfolio ManagersROBERT J. HORROCKS, PhDChief Investment Officer,Portfolio ManagerRobert Horrocks is Chief Investment Officer at Matthews International Capital Management, LLC and a Portfolio Manager. He managesthe firm’s Asian Growth and Income strategy and co-manages the Asia Strategic Income strategy. As Chief Investment Officer, Robertoversees the firm’s investment process and investment professionals and sets the research agenda for the investment team. Beforejoining Matthews in 2008, Robert was Head of Research at Mirae Asset Management in Hong Kong. From 2003 to 2006, Robert served asChief Investment Officer for Everbright Pramerica in China, establishing its quantitative investment process. He started his career as aResearch Analyst with WI Carr Securities in Hong Kong before moving on to spend eight years working in several different Asianjurisdictions for Schroders, including stints as Country General Manager in Taiwan, Deputy Chief Investment Officer in Korea andDesignated Chief Investment Officer in Shanghai. Robert earned his PhD in Chinese Economic History from Leeds University in the UnitedKingdom, and is fluent in Mandarin.RICHARD GAOPortfolio ManagerRichard Gao is a Portfolio Manager at Matthews International Capital Management, LLC. He manages the firm’s China, Pacific Tiger andChina Small Companies strategies. Richard joined Matthews in 1997 as a China Analyst. He began his career at the Bank of China in 1989,first as a loan officer, then as a FOREX Trader in the Treasury Department. In 1993, he became Assistant Manager at the Bank of China,where he was in charge of FOREX trading for import/export companies. Richard received a B.A. in Literature from Guangdong Universityof Foreign Studies and an M.B.A. in International Business from the Dominican University of California. He is fluent in Mandarin,Cantonese and Shanghainese.JESPER MADSEN, CFAPortfolio ManagerJesper Madsen is a Portfolio Manager at Matthews International Capital Management, LLC, and manages the firm’s Asia Dividendstrategy and co-managers the China Dividend strategy. Prior to joining Matthews in 2004 as a Research Analyst, Jesper was an Analyst atCharter Equity Research and also worked with the Fixed Income group at Barclays Global Investors. He has traveled extensively, includingliving and working in China. Jesper received a B.A. in Politics, Philosophy and Economics from the University of York in the UnitedKingdom.
  27. 27. 27Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013Appendix I | Investment Team BiosPortfolio ManagersSHARAT SHROFF, CFAPortfolio ManagerSharat Shroff is a Portfolio Manager at Matthews International Capital Management, LLC. He manages the firm’s Pacific Tiger and Indiastrategies and co-manages the Asia Growth strategy. Prior to joining Matthews in 2005 as a Research Analyst, Sharat worked in the SanFrancisco and Hong Kong offices of Morgan Stanley as an Equity Research Associate. Sharat received a Bachelor of Technology from theInstitute of Technology in Varanasi, India and an M.B.A. from the Indian Institute of Management, in Calcutta, India. He is fluent in Hindiand Bengali.LYDIA SO, CFAPortfolio ManagerLydia So is a Portfolio Manager at Matthews International Capital Management, LLC. She manages the firm’s Asia Small Companiesstrategy and co-manages the Asia Science and Technology strategy. Prior to joining Matthews in 2004 as a Research Associate, Lydia wasa Portfolio Associate at RCM Capital Management. She started her investment career at Kochis Fitz Wealth Management. Lydia receiveda B.A. in Economics from the University of California, Davis. She is fluent in Cantonese and conversational in Mandarin.YU ZHANG, CFAPortfolio ManagerYu Zhang is a Portfolio Manager at Matthews International Capital Management, LLC. He manages the firm’s China Dividend strategy andco-manages the Asia Dividend strategy. Prior to joining Matthews in 2007 as a Research Associate, Yu was an Analyst researchingJapanese companies at Aperta Asset Management from 2005 to 2007. Before receiving a graduate degree in the U.S., he was anAssociate in the Ningbo, China office of Mitsui & Co., a Japanese general trading firm. Yu received a B.A. in English Language from theBeijing Foreign Studies University, an M.B.A. from Suffolk University and an M.S. in Finance from Boston College. He is fluent in Mandarin.
  28. 28. 28Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013DisclosureThese materials are provided solely for use in a private meeting and are intended for informational and discussion purposes only. To the extent that these materials arecirculated, it is intended that they be circulated only to persons to whom they may lawfully be distributed and any recipient of these materials should inform themselvesabout and observe any applicable legal requirements. Persons who do not fall within such descriptions may not act upon the information contained in these materials.This document is not a Prospectus/Offering Document and does not constitute an offer to the public. No public offering or advertising of investment services or securities isintended to have taken effect through the provision of these materials. Nothing in these materials is or shall be considered to be an offer of advisory or investment services toany recipient. The information presented in these materials is believed to be materially correct at the time of compilation, but no representation or warranty (express orimplied) is made as to the accuracy or completeness of any of this information. Nothing set out in these materials is or shall be relied as a promise or representation as to thefuture.The manager referred to in these materials means a U.S.-based investment adviser registered with the U.S. Securities and Exchange Commission who has not represented andwill not represent that it is otherwise registered with any other regulator or regulatory body.Investors should ascertain from their professional advisers the consequences of investing with Matthews under the relevant laws of the jurisdictions to which they are subjectincluding the tax consequences and any exchange control requirement. Investors should carefully consider the investment objectives, risks, charges and expenses of anystrategy before making an investment decision.An investment in Matthews Asia Funds may be subject to risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility andlimited regulation. In addition, single-country may be subject to a higher degree of market risk than diversified funds because of a concentration in a specific geographiclocation. Investing in small- and mid-size companies is more risky than investing in large companies as they may be more volatile and less liquid than large companies. Pleasesee the Prospectus/Offering Document for a Fund for additional information about the risks of investing in a Fund. This discussion of the risks associated with investing inMatthews Asia Funds is not exhaustive and prospective investors should consult a Fund’s Prospectus/Offering Document before making an investment decision.The shares described in each Fund’s Prospectus/Offering Document and the related documents have not been registered or qualified under the laws of, and may not beoffered or sold, directly or indirectly, to the public in Austria, Bahrain, Chile, Colombia, Denmark, Egypt, Finland, Iceland, Israel, Italy, Kuwait, Netherlands, Norway, Peru,Portugal, Qatar, Saudi Arabia, Singapore, Sweden, or United Arab Emirates. The Fund’s Prospectus/Offering Document and other related materials and documents have notbeen filed with or approved by the regulatory authorities of Austria, Bahrain, Chile, Colombia, Denmark, Egypt, Finland, Iceland, Israel, Italy, Kuwait, Netherlands, Norway,Peru, Portugal, Qatar, Saudi Arabia, Singapore, Sweden, or United Arab Emirates and are not intended to constitute a public offering in such countries and should not beconstrued as such. In particular, these materials shall not constitute an offer to sell or a solicitation of an offer to buy the shares described in each Fund’s Prospectus/OfferingDocument and in the related materials and documents and no steps may be taken that would constitute or result in a public offering or distribution of the shares in Austria,Bahrain, Chile, Colombia, Denmark, Egypt, Finland, Iceland, Israel, Italy, Kuwait, Netherlands, Norway, Peru, Portugal, Qatar, Saudi Arabia, Singapore, Sweden, or United ArabEmirates, including by use of any public advertisement of similar public communication. The Shares of the Fund have been registered with the Monetary Authority ofSingapore as a restricted scheme.The shares of the Funds are only available for certain non-U.S. Persons in select transactions outside of the United States, or in limited circumstances, otherwise intransactions which are exempt from the registration requirements of the United States Securities Act of 1933, as amended.This document does not constitute investment advice or an offer or solicitation to sell or a solicitation of an offer to buy any shares of any Fund (nor shall any such shares beoffered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. This documentis directed at and intended for institutional investors (as such term is defined in the various jurisdictions). This document is provided on a confidential basis for informationalpurposes only and may not be reproduced in any form or transmitted to any person without authorization from Matthews International Capital Management, LLC. It is theresponsibility of any persons wishing to subscribe for shares to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdictions.Prospective investors should inform themselves as to the legal requirements and tax consequences within the countries of their citizenship, residence, domicile and place ofbusiness with respect to the acquisition, holding or disposal of shares, and any foreign exchange restrictions that may be relevant thereto.
  29. 29. 29Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professionaluse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.© 2013 Matthews International Capital Management, LLC G_PT016_Citywire HK 05.2013DisclosureThe Board of Directors of the Matthews Asia Funds may, at its discretion, pay dividends out of the capital of this sub-fund. The Board of Directors of the Funds may amend the dividendpolicy, subject to the SFC’s prior approval and by giving not less than one month prior notice to the shareholders of the Funds. Dividends paid out of capital amount to a return orwithdrawal of part of an investor’s original investment, or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease of the netasset value per share of this sub-fund. The composition of the latest dividends (i.e., the relative amount paid from the income and capital) is available from the Funds upon request andalso on its website at matthewsasia.com.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 Asia Dividend Strategy invests in countries that are not included in the MSCI All Country Asia PacificIndex. It is not possible to invest directly in an index.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 Pacific Tiger Strategy may invest in countries that are not included in the MSCI All Country Asia ex Japan Index. It is not possible toinvest directly in an index.The MSCI China Index is a free float–adjusted market capitalization–weighted index of Chinese equities that include China-affiliated corporations and H shares listed on the Hong Kongexchange, and B shares listed on the Shanghai and Shenzhen exchanges. It is not possible to invest directly in an index.The Bombay Stock Exchange 100 (BSE 100) Index is a free float-adjusted market capitalization-weighted index of the 100 leading stocks listed on the Bombay Stock Exchange. It is notpossible to invest directly in an index.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.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 HongKong 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 governmentsin 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.The S&P 500 Index is a broad market-weighted index dominated by blue-chip stocks in the U.S. It is not possible to invest directly in an index.The Bloomberg European 500 Index is a free float capitalization-weighted index of the 500 most highly capitalized European companies.

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