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    Gl.pt006 montreux0511.final Gl.pt006 montreux0511.final Presentation Transcript

    • Seeking Dividends from Asia’s Growth Robert Horrocks, PhD Chief Investment Officer May 2011Performance results, portfolio characteristics, and holdings information in this presentation are of the largest accounts managed by Matthews International Capital Management LLC. The Performance resultsare net of advisory and other fees.Performance results and valuations presented are in U.S. dollars. Matthews’ advisory fees may vary depending on the size and nature of the assets and account. The standard fees are described in Part II ofMatthews Form ADV. 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 commissionsand execution costs and advisory and other fees.Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary.The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Matthews International Capital Management, LLC does not acceptany liability for losses either direct or consequential caused by the use of this information. Please see important disclosures at the end of this presentation. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Matthews Overview About Matthews Largest dedicated Asia investment specialist in the United States Investing in Asia since 1991 through a variety of market environmentsKEY FACTSAs of 31 March 2011 Independent, privately owned firm with significantTotal assets under management employee ownership$18.1 billion Range of Asia investment strategies across theRegional strategies$13.8 billion risk-reward spectrumSingle-country strategies Offering a unique investment perspective from a strategic$ 4.3 billion location in San FranciscoInvestment team members25 For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 1 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Matthews HistoryMatthews has chosen to launch new strategies when there are compelling investment opportunities 1991 2010 G. Paul Matthews Matthews Asia founds Matthews 1998 introduces off-shore International Capital China inception funds for non-U.S. Management 1994 2003 investors Matthews Asia Asia Growth introduces Asia 2008 1998 inception Asia Small Companies ex-Japan and Asian Growth & Income Japan inception inception1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2005 2006 1999 India inception 1995 Asia Dividend Asia Science and Korea inception inception 1992 Technology inception Firm launches an 2009 investment vehicle China Dividend for the Asia inception ex-Japan region For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 2 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Strategies for Investing in AsiaMatthews Asia offers a range of strategies across the risk-reward spectrum ASIA GROWTH AND ASIA GROWTH INCOME Asian Growth and Asia Growth Income Pacific Tiger* Asia Dividend* China* China Dividend India Japan Korea ASIA SPECIALTY ASIA SMALL COMPANY Asia Science and Asia Small Technology Companies Regional strategy designed for use as a core portfolio holding Asian strategy designed to complement core portfolio holding * Strategy currently available as a Luxembourg-domiciled SICAV Closed to most new investors For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 3 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Investment Philosophy and ApproachThe foundation of Matthews’ investment philosophy is our belief in the long-term economicgrowth and development of the countries in Asia.Active managementWe believe many of the region’s widely used indices are backward looking and are not representative of theindustries and companies that will be successful in the future. We look to invest in companies whosepotential has yet to be fully recognised by the market.Long-term focus on AsiaWe believe a long-term approach is the most effective way to capitalise on Asia’s evolution. Matthews hasbeen investing in Asia since 1991 and we draw on our experience to identify companies that stand to benefitfrom the growth and development of markets throughout the region.Bottom-up researchWe employ a fundamental, bottom-up investment process that seeks to identify companies with sustainablelong-term growth prospects, strong business models, quality management teams and reasonable valuations.This research process involves more than 1,800 company meetings each year.Defining Asia’s investment strategiesWe strive to provide investors a range of Asia strategies across the risk-reward spectrum and launch newstrategies when there are compelling investment opportunities in the region. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 4 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • The Value of the Pit Stop: Commonalities between Grand Prix racing and dividend investingFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 5© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Dividends—Like a Well-executed Pit Stop— are Critical to Investment Performance Dividends demonstrate discipline in the management of a business and the allocation of capital Dividends serve as a means of realising tangible value in an investment Dividends provide a signal that the interests of minority shareholders are valued by managementFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 6© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Why Dividends Matter: A Case StudyFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 7© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Decides on No Pit StopSeems about to win World Championship, then tire blows up For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 8 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Going Too Fast, Too SoonDividends put a brake on reckless spending and may signal future growth QUINTILE 1 QUINTILE 2 QUINTILE 3 QUINTILE 4 QUINTILE 5 Payout 109.3 55.4 35.9 21.2 7.0 Trailing yield 5.3 3.4 2.6 2.1 1.3 Next 3-yr EPS 14.9 7.7 8.5 (1.2) 7.8 GrowthSource : CLSA. Data represents 10 year average (1997-2006) payout , trailing yield and forward 3-year EPS Growth for companies in CLSA’s Asia ex Japan universe. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 9 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Reverses in Pit Lane While Own Crew Blocking the WayDisqualified from race For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 10 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Corporate GovernanceDividends and corporate governance at the country level Corporate Country Dividend Yield Governance Rank Singapore 2.7 1 Hong Kong 1.9 2 Japan 1.6 3 Taiwan 3.0 4 Thailand 2.4 4 Malaysia 2.4 6 China 1.1 7 India 1.0 7 South Korea 1.3 9 Indonesia 1.5 10 Philippines 1.4 11Source: FactSet. Note: Dividend yield represents the average 5 year dividend yield for the period 1/1/2006-31/12/10 and includes companies with marketcapitalizations of US$5B and over. ACGA Corporate Governance Rank as of September 2010, CLSA. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 11 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • The Impact of Dividends on Long-term ReturnsGROWTH OF $10,000 FOR THE MSCI ALL COUNTRY ASIA PACIFIC INDEX $25,000 $23,000 $21,000 DIVIDENDS REINVESTED $19,000 $17,000 $15,000 $13,000 $11,000 $9,000 $7,000 PRICE INDEX $5,000 87 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10For periods 31/12/87–31/12/10. The MSCI All Country Asia Pacific Index is a free float-adjusted, market capitalisation-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 anindex.Sources: MICM, MSCI For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 12 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Wheel is not Put on Properly in Pit StopDisqualified from race For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 13 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Signal vs. NoiseDividends as representation of sustainable core earnings growthEARNINGS AND DIVIDENDS OF COMPANIES IN ASIA PACIFIC* $400 $350 TOTAL EARNINGS $300 $250 US$B $200 $150 TOTAL DIVIDENDS $100 $50 $0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*MSCI AC Asia Pacific Index members as of 30/06/10. To be included these companies must have had an average operating income during the three previous fiscal years ofa minimum of US$50 million. Companies must also have a ten year financial history.Sources: Matthews, FactSet and Bloomberg For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 14 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Dividends and VolatilityDividends may help to reduce volatility Dividend Volatility Yield Quintile 1 0.3 7.2 Quintile 2 0.8 7.4 Quintile 3 1.4 5.3 Quintile 4 2.4 4.7 Quintile 5 5.2 4.2Note: Dividend yield and volatility for companies in Asia ex Japan with market capitalizations of US$5B and over. Average five year dividend yield for theperiod1/1/2006-31/12/10. Average volatility of stocks in each quintile as expressed by quarterly price changes over a five year period (1/1/2006–31/12/10).Source: FactSet For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 15 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • What This Equates to for Investors No pit stop—Overdoing it and trying to go too fast Ignoring the crew—Improper alignment of minority shareholders and management Poor technical skills—Lack of value and sustainability of the businessFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 16© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Asia’s Dividend Universe and Portfolio ManagementFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 17© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Dividends—How Asia Compares to the U.S. China (MSCI China Index) Asia (MSCI AC Asia Pacific Index) U.S. (S&P 500 Index) $212 $195 3.0% 18% 2.7% 16% 1.9% $59 6% Size of Dividend Pool Dividend Yield Dividend Growth (Bil US$)* (as of 2/2011) 2002-2009***As of 2009.**Dividend growth for MSCI China is derived using index members as of 31/12/05 for improved index representation; for reference S&P 500 andMSCI Asia Pacific Index members grew dividends at 1% CAGR and 10% CAGR, respectively, during the same period.All performance quoted represents past performance and is no guarantee of future results. It is not possible to invest directly in an index.Sources: Factset, MSCI, I/B/E/S, JPMorgan, S&P For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 18 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Asia’s Dividend-Paying Universe has GrownTwo-thirds of dividends paid within China/Hong Kong in 2009 from companies listed after 1998 1998 US$B 2009 US$B Japan 18.9 Japan 58.7 Australia 8.7 China 43.2 Hong Kong 7.4 Australia 38.1 Taiwan 1.9 Hong Kong 33.1 Singapore 1.7 Taiwan 20.9 Other 5.3 Other 56.6 Total 43.9 Total 250.6Note: Excluding China A-share market.Data represents Asia Pacific dividend-paying stock universe with market cap over US$100 million as of end of 1998 and 2009 respectively.Sources: FactSet, MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 19 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Crossing the Finish LineImplementing a dividend focused total return strategyDIVIDEND YIELD VS. DIVIDEND GROWTH 100% PAYOUT RATIO 60% Red 80+% 40% Amber 50-80% Blue 30-50% Green 0-30% 30%3-YEAR DIVIDEND GROWTH 20% 10% 0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% -10% DIVIDEND YIELD Dividend yield and dividend growth data depicted are for all securities held in the largest account managed by Matthews using an Asia Dividend Strategy. Each point represents a plotting of the portfolio company’s trailing dividend yield as of 02/03/11 and its 3- year annual dividend growth rate based on MICM estimates. Color depiction represents a portfolio company’s dividend payout ratio based on company dividend policy, if available. Otherwise 5-year average payout ratio is utilised (or longest available for companies with less than 5-year history) adjusted for extreme temporary outliers. There is no guarantee that the companies in the portfolio will achieve their forecasted dividend growth rates, maintain or grow their dividend pay-out ratio, or pay dividends. Source: MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 20 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Matthews Asia Dividend StrategyFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 21© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Profile | Asia Dividend Strategy STRATEGY FACTS Investment Objective Total return with an emphasis on providing current income.Inception Date Strategy31/10/06 Seeks to provide a level of income that is higher than the yieldCap Range generally available in Asia equity markets over the long term.All Cap Invests primarily in companies that are paying high dividends relative to their current share price, or are well positioned to do soNumber of Holdings50 to 80 in the future.Turnover Range Lead Manager Co-Manager20% to 50%BenchmarkMSCI All Country AsiaPacific Index JESPER MADSEN, CFA YU ZHANG, CFA There is no guarantee that portfolio companies held in the strategy will pay or continue to pay dividends. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 22 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Strategy | Asia Dividend Strategy Current Strategy — Focus on Asian companies that deliver sustainable dividend growth through: • Exposure to rising domestic household income • Strong competitive position • Improving dividend policiesASIA GROWTH AND Looking ForwardINCOME STRATEGIES — Asian companies continue to look attractive relative to other regions based on current dividend yield and growth outlook — Interdependence of monetary policies in Asia with that of the U.S., combined with asymmetric global economic growth, increases the risk of capital controls in Asia Pacific — Inflationary pressures arising from asset prices and soft commodities increase the risk of policy response (i.e. tighter monetary policies and/or direct price controls) — Focus on companies that we believe can deliver either: • Stable, defensive dividend growth to provide a solid pillar for dividend income (e.g., higher-yielding telecom, utilities and consumer-related firms) • Strong growth in dividends as earnings rise, business investments mature and/or payout ratios expand For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 23 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Investment Returns| Asia Dividend StrategyAnnual returns for the years ended 31 December 60% 50% 47.59% 37.86% 40% 30% 22.83% 18.05% 17.25% 20% 14.64% 10% 0% -10% -20% -30% -25.97% -40% -41.62% -50% 2007 2008 2009 2010 Asia Dividend Strategy MSCI AC Asia Pacific IndexPerformance results are of the largest account managed by Matthews for this strategy and are net of advisory and other fees.Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary.Sources: BNY Mellon Investment Servicing, Bloomberg, MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 24 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Investment Returns | Asia Dividend Strategy As of 31 March 2011 AVERAGE ANNUAL TOTAL RETURNS 3 Months 1 Year 3 Year Since Inception 12.82% 11.75% 11.36% 11.33% 3.10% 1.73% -0.39% -0.65% Asia Dividend Strategy MSCI AC Asia Pacific IndexPerformance results are of the largest account managed by Matthews for this strategy and are net of advisory and other fees.Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary.Sources: BNY Mellon Investment Servicing, Bloomberg, MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 25 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Dampening Downside Volatility—A Welcome Side-benefit Drawdown November 2006 - March 2011 0% -10% -20% -30% M atthews Asia Dividend M SCI AC ASIA PACIFIC -40% -50% -60% Oct 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 M ar 2011Sources: Zephyr Performance results are of the largest account managed by Matthews for this strategy and are net of advisory and other fees. Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 26 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Strategy Performance Manager Performance November 2006 - March 2011 (Single Computation) 18000 16000 14000 12000 M atthews Asia Dividend 10000 M SCI AC ASIA PACIFIC 8000 6000 4000 Oct 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 M ar 2011 Custom Table November 2006 - March 2011: Summary Statistics Tracking Inf ormation Excess Return R-Squared Standard Error Ratio Return v s. v s. Dev iation v s. v s. Market Market Market Market Matthews Asia Div idend 12.81% 18.04% 9.71% 7.69% 1.26 88.91% MSCI AC ASIA PACIFIC 3.10% 21.81% 0.00% 0.00% 0.00 100.00%Sources: Zephyr Performance results are of the largest account managed by Matthews for this strategy and are net of advisory and other fees. Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 27 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Portfolio Characteristics | Asia Dividend StrategyAs of 31 March 2011MATTHEWS ASIA DIVIDEND STRATEGY VS. MSCI AC ASIA PACIFIC INDEXCountry Breakdown (%) Relative to Index (%) Sector Breakdown (%) Relative to Index (%)China/Hong Kong 24.4% 7.8% Financials 17.7% -9.9%Japan 20.6% -16.8% Consumer Discretionary 17.0% 5.4%Taiwan 10.6% 3.5% Consumer Staples 15.5% 10.0%Australia 10.3% -6.0% Telecom Services 11.4% 7.0%South Korea 8.4% -1.0% Information Technology 9.4% -3.7%Thailand 8.2% 7.1% Utilities 7.0% 3.7%Singapore 1.9% Industrials 6.6% -7.1% 5.0%Indonesia 2.7% Health Care 6.2% 3.1% 4.3%United Kingdom 3.1% Energy 4.1% -1.7% 3.1%Philippines 1.2% Materials 2.0% -9.9% 1.6% Cash and Other 3.1% 3.1%Malaysia 0.4% -1.5%India 0.0% -4.9%New Zealand 0.0% -0.2%Cash and Other 3.1% 3.1% Source: FactSet Research Systems For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 28 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Portfolio Characteristics | Asia Dividend StrategyAs of 31 March 2011 MATTHEWS ASIA DIVIDEND STRATEGY VS. MSCI AC ASIA PACIFIC INDEX Market Cap Exposure Strategy Relative to Index (%) Large Cap ($5B+) 43.5% -42.0% Mid Cap ($1B–$5B) 28.2% 13.8% Small Cap (<$1B) 25.2% 25.1% Cash and Other 3.1% 3.1% Portfolio Characteristics Strategy Assets $2.2 billion Weighted Average Market Cap $19.2 billion P/E using FY1 Estimates 11.8x P/E using FY2 Estimates 10.5xSource: FactSet Research Systems, MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 29 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Contacting Matthews AsiaTo learn more about Matthews or how our strategies can complementglobally diversified portfolios, please visit global.matthewsasia.com orcontact us directly:Jonathan Schuman James CampionExecutive Vice President Senior Vice PresidentHead of Global Business Development Head of Asia Business Development+1-415-984-5366 +852-3798-2686jschuman@matthewsasia.com jcampion@matthewsasia.comFor institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 30© 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Appendix I | Investment Team BiosPortfolio Managers ROBERT J. HORROCKS, PhDChief Investment Officer, Robert Horrocks is Chief Investment Officer at Matthews International Capital Management, LLC and a Portfolio Manager. He managesPortfolio Manager the firm’s Asian Growth and Income strategy. As Chief Investment Officer, Robert oversees the firm’s investment process and investment professionals and sets the research agenda for the investment team. Before joining Matthews in 2008, Robert was Head of Research at Mirae Asset Management in Hong Kong. From 2003 to 2006, Robert served as Chief Investment Officer for Everbright Pramerica in China, establishing its quantitative investment process. He started his career as a Research Analyst with WI Carr Securities in Hong Kong before moving on to spend eight years working in several different Asian jurisdictions for Schroders, including stints as Country General Manager in Taiwan, Deputy Chief Investment Officer in Korea and Designated Chief Investment Officer in Shanghai. Robert earned his PhD in Chinese Economic History from Leeds University in the United Kingdom, and is fluent in Mandarin. RICHARD H. GAOPortfolio Manager Richard Gao is a Portfolio Manager at Matthews International Capital Management, LLC. He manages the firm’s China and Pacific Tiger strategies and co-manages the China Dividend strategy. 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 University of 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 O. MADSEN, CFAPortfolio Manager Jesper Madsen is a Portfolio Manager at Matthews International Capital Management, LLC, and manages the firm’s Asian Growth and Income, Asia Dividend and China Dividend strategies. Prior to joining Matthews in 2004 as a Research Analyst, Jesper was an Analyst at Charter Equity Research and also worked with the Fixed Income group at Barclays Global Investors. He has traveled extensively, including living and working in China. Jesper received a B.A. in Politics, Philosophy and Economics from the University of York in the United Kingdom. SHARAT SHROFF, CFAPortfolio Manager Sharat Shroff is a Portfolio Manager at Matthews International Capital Management, LLC. He manages the firm’s Pacific Tiger and India strategies and co-manages the Asia Pacific strategy. Prior to joining Matthews in 2005 as a Research Analyst, Sharat worked in the San Francisco and Hong Kong offices of Morgan Stanley as an Equity Research Associate. Sharat received a Bachelor of Technology from the Institute of Technology in Varanasi, India and an M.B.A. from the Indian Institute of Management, in Calcutta, India. He is fluent in Hindi and Bengali. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 31 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Appendix II | Client Services Team Bios JONATHAN D. SCHUMANExecutive Vice President, Jonathan Schuman joined Matthews International Capital Management, LLC in 2010 as an Executive Vice President. He is responsibleHead of Global Business for leading the firm’s international business development strategy, developing relationships with key distribution partners and directingDevelopment the firm’s global sales efforts. Prior to joining the firm, Jonathan was a Managing Director at PineBridge Investments (formerly AIG Investments) in Tokyo, responsible for institutional sales and client relations, product development, marketing and RFP functions for AIG’s third-party investment management business in Japan. He also served as Assistant General Counsel for Legal and Government Affairs for AIG Companies, Japan and Korea. Jonathan earned a J.D. from Harvard Law School, a M.A.L.D from The Fletcher School of Law and Diplomacy and a B.A. in Asian Studies from Williams College. He has served as Co-Chair of the Financial Services Committee at the American Chamber of Commerce in Japan, and is fluent in Japanese. JAMES E. CAMPIONSenior Vice President, James Campion joined Matthews International Capital Management, LLC in 2010 as a Senior Vice President and leads the firm’sHead of Asia Business business development efforts in Asia. Most recently, James was Head of Asia Distribution for Threadneedle Portfolio Services in HongDevelopment Kong, responsible for setting up its Hong Kong office and developing the firm’s Asia distribution strategy. Prior to this, he served as Allianz Global Investor’s Head of Mutual Funds for the Asia Pacific region and was a Managing Director for New Star International. From 1998 to 2004, James also held several positions with Schroder Investment Management (Hong Kong) Limited, including Regional Head of Mutual Funds, Asia ex Japan. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 32 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Appendix III | Pacific Tiger Strategy Investment ReturnsAs of 31 March 2011 AVERAGE ANNUAL TOTAL RETURNS Since Inception1 3 Months 1 Year 3 Years 5 Years 10 Years (12/9/94) 19.80% 18.19% 16.86% 13.99% 12.55% 11.44% 9.18% 9.68% 5.32% 4.56% 1.22% -0.90% Pacific Tiger Strategy MSCI AC Asia ex Japan Index 1 Index return calculated from 31/8/94. Performance results are of the largest account managed by Matthews for this strategy and are net of advisory and other fees. Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary. Sources: BNY Mellon Investment Servicing, Bloomberg, MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 33 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • Appendix IV | China Strategy Investment ReturnsAs of 31 March 2011 AVERAGE ANNUAL TOTAL RETURNS Since inception 1 3 Months 1 Year 3 Years 5 Years 10 Years (19/2/98) 19.48% 17.66% 16.65% 16.12% 13.33% 11.33% 10.36% 9.58% 4.17% 4.34% 2.89% - 1.09% China Strategy MSCI China Index 1 Index is calculated from 28/02/98. Performance results are of the largest account managed by Matthews for this strategy and are net of advisory and other fees. Performance quoted represents past performance and is no guarantee of future results. Individual account performance will vary. Sources: BNY Mellon Investment Servicing, Bloomberg, MICM For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 34 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511
    • DisclosureInvesting in international 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 sectorstrategies may be subject to a higher degree of market risk than diversified strategies because of concentration in a specificindustry, sector or geographic location. Investing in small- and mid-size companies is more risky than investing in largecompanies as they may be more volatile and less liquid than large companies.The information contained in this presentation is for informational purposes only and does not, in any way, constituteinvestment advice or an offer to sell or a solicitation of an offer to buy any security or product mentioned herein. Norepresentation is given that shares, products or services mentioned herein are suitable for any particular investor.Investors should ascertain from their professional advisers the consequences of investing with Matthews under therelevant laws of the jurisdictions to which they are subject including the tax consequences and any exchange controlrequirement. Investors should carefully consider the investment objectives, risks, charges and expenses of any strategybefore making an investment decision.The MSCI All Country Asia Pacific Index is a free float-adjusted market capitalisation–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 AsiaPacific Index. It is not possible to invest directly in an index.The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalisation–weighted index of the stock of 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 isnot possible to invest directly in an index.The MSCI China Index is a free float–adjusted market capitalisation–weighted index of Chinese equities that include China-affiliated corporations and H shares listed on the HongKong exchange, and B shares listed on the Shanghai and Shenzhen exchanges. It is not possible to invest directly in an index. For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce. 35 © 2011 Matthews International Capital Management, LLC GL.PT006_Montreux_0511