(PUB) Investing 2015

439 / 772

5 Morningstar FundInvestor October 2015
Data through September 30, 2015 FINRA members: For internal or institutional use only.
Matthews Pacific Tiger Investor Ticker
MAPTX
Yield
0.5%
Total Assets
$6,423 mil
Mstar Category
Pacific/Asia ex-Japan Stk
Benchmark 1: MSCI AC Far East Ex Japan NR USD
Benchmark 2: MSCI ACWI Ex USA NR USD
Morningstar Analyst Rating 09-15-15
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
25.0
30.0
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
7 4 7 7 7 7 7 7 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
* ) ) & * * & ( * & * Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 09-15 History
19.27 23.71 27.86 11.05 19.23 23.44 20.33 24.42 24.99 26.57 24.20 NAV
22.51 27.22 33.66 -46.11 75.37 22.30 -11.41 21.00 3.63 11.79 -8.92 Total Return %
1.18 -4.53 -2.83 4.45 6.48 2.86 3.37 -1.02 -0.13 8.63 4.39 +/- Bmark 1
5.89 0.56 17.01 -0.59 33.92 11.15 2.30 4.17 -11.65 15.65 -0.29 +/- Bmark 2
0.76 1.19 1.33 1.07 1.32 0.40 0.48 0.77 0.64 0.53 0.00 Income Return %
21.74 26.02 32.33 -47.18 74.05 21.90 -11.89 20.23 2.99 11.26 -8.92 Capital Return %
34 82 84 19 37 29 14 69 39 14 31 Total Rtn % Rank Cat
0.12 0.23 0.31 0.30 0.15 0.08 0.11 0.16 0.16 0.13 0.00 Income $
0.09 0.56 3.63 3.44 0.00 0.00 0.33 0.02 0.16 1.23 0.00 Capital Gains $
1.31 1.18 1.11 1.12 1.13 1.09 1.11 1.11 1.09 1.09 1.05 Expense Ratio %
1.10 1.12 1.12 1.10 0.41 0.43 0.44 0.82 0.67 0.52 0.53 Income Ratio %
3 19 24 17 13 11 11 7 8 11 . Turnover Rate %
2,032 3,304 3,807 1,203 3,560 5,191 2,784 2,994 2,955 3,048 2,651 Net Assets $mil
Performance 09-30-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 -0.90 4.05 -17.09 3.62 -11.41
2012 10.92 -3.81 8.11 4.90 21.00
2013 2.78 -4.38 2.33 3.04 3.63
2014 2.32 7.98 2.39 -1.18 11.79
2015 7.53 0.56 -15.77 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -15.77 2.31 -3.60 54 8,423
6 Mo -15.30 2.01 -3.59 43 8,470
1 Yr -10.00 3.14 2.17 34 9,000
3 Yr Avg 3.44 3.92 1.10 14 11,068
5 Yr Avg 2.89 2.19 1.07 11 11,530
10 Yr Avg 8.91 2.63 5.88 32 23,478
15 Yr Avg 10.55 3.56 5.43 6 45,013
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 2.78 13 0.64 37
5 Yr (estimated) 2.38 3 0.49 20
10 Yr (estimated) 7.78 11 1.04 53
Potential Capital Gain Exposure: 25% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -10.00
3 Yr 3.44 +Avg Avg QQQQ
5 Yr 2.89 +Avg -Avg QQQQ
10 Yr 8.91 +Avg -Avg QQQ
Incept 8.21
Other Measures Standard Index Best Fit Index
Alpha 1.7 6.8
Beta 0.84 0.82
R-Squared 61 80
Standard Deviation 12.49
Mean 3.44
Sharpe Ratio 0.33
Portfolio Analysis 06-30-15
Total Stocks: 65
Share change since 03-31-15 Sector Country % Assets
YAmorePacific Corp Cnsmr Def South Korea 3.46
YPing An Insurance (Group) Finan Svcs China 3.22
Sinopharm Group Co Ltd H Hlth Care China 2.81
Green Cross Corp Hlth Care South Korea 2.60
TNAVER Corp Technology South Korea 2.59
Kotak Mahindra Bank Ltd Finan Svcs India 2.56
TBaidu Inc ADR Technology China 2.42
Hengan International Grou Cnsmr Def China 2.42
Central Pattana PLC Shs F Real Est Thailand 2.31
TDKSH Holding Ltd Industrl Switzerland 2.29
Dongbu Insurance Co Ltd Finan Svcs South Korea 2.28
TTata Power Co Ltd Utilities India 2.27
China Resources Land Ltd Finan Svcs China 2.25
President Chain Store Cor Cnsmr Def Taiwan 2.13
TDelta Electronics Inc Technology Taiwan 2.04
Lenovo Group Ltd Technology China 2.03
Container Corporation of Industrl India 2.02
Orion Corp (Korea) Cnsmr Def South Korea 2.02
TSun Pharmaceuticals Indus Hlth Care India 2.00
China Mobile Ltd ADR Comm Svcs China 1.91
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 44.0
Large 39.8
Mid 15.7
Small 0.5
Micro 0.0
Avg $mil:
13,754
Value Measures Rel Category
Price/Earnings 18.73 1.35
Price/Book 2.24 1.23
Price/Sales 1.16 0.74
Price/Cash Flow 7.91 1.18
Dividend Yield % 1.76 0.66
Growth Measures % Rel Category
Long-Term Erngs 12.75 1.02
Book Value 14.53 1.75
Sales 8.72 -11.91
Cash Flow 12.12 -13.32
Historical Erngs 5.30 1.19
Composition - Net
Cash 0.0 Bonds 0.0
Stocks 98.7 Other 1.3
Foreign (% of Stock) 97.7
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 40.71 0.82
r BasicMat 1.87 0.34
t CnsmrCyc 12.96 1.56
y FinanSvcs 18.36 0.67
u Real Est 7.52 0.86
j Sensitive 25.25 0.64
i CommSrvs 3.38 0.47
o Energy 0.00 0.00
p Industrl 5.82 0.76
a Technlgy 16.05 0.75
k Defensive 34.03 3.16
s CnsmrDef 18.83 3.96
d Hlthcare 10.21 7.14
f Utilities 4.99 1.09
Regional Exposure % Stock
UK/W. Europe 2 N. America 2
Japan 0 Latn America 0
Asia X Japan 95 Other 0
Country Exposure % Stock
China 27
India 19
South Korea 17
Taiwan 7
Indonesia 7
Morningstar's Take by William Samuel Rocco 09-15-15
Matthews Pacific Tiger Investor remains a superior
source of exposure to emerging Asia, but its Morningstar
AnalystRatingofGoldhasbeen loweredtoSilverbecause
of a trio of deleterious modifications to its management
team in less than 18 months. First, Richard Gao, who
initially joined the team in 2006, went from co-lead-
manager to comanager in April 2014, and Sharat Shroff
became the sole lead manager here. Second, Gao left the
team in July 2015. (Gao gave up his lead manager
positions on Matthews China MCHFX and Matthews
China Small Companies MCSMX at the same time, and
he will be taking a leave of absence from Matthews later
this year.) Finally, comanager In-Bok Song left the team
last week.
Despite these changes, this fund still has a strong
management team. Shroff has served on the team for
7.75 years and has spent a decade at Matthews. He has
succeeded as a comanager and lead manager at Bronze-
rated Matthews India MINDX and as a comanager on
Silver-rated Matthews Asia Growth MPACX. Comanager
Rahul Gupta remains in place and has solid credentials.
The two managers also have an exceptional support
team.
The fund's strategy remains intact and distinctive.
Themanagersstillpursuestrongandsustainablegrowers
with reasonable valuations, make full use of the market-
cap spectrum and geographic universe, and load up on
areas with compelling opportunities.
Thisgrowthdisciplinehasproducedstrong long-term
results here and at several other Matthews offerings,
including Matthews Asia Growth. This fund also has a
relatively low expense ratio that gives it a sizable edge
year in and year out.
Thus, this fund still has more than its share of
strengths and remains one of the best options in the
Pacific/Asia ex-Japan Morningstar Category. However,
Gold-rated funds are held to the strictest standards and
cannot have any significant issues, and there has been a
little too much turnover on this management team in the
past 18 months. Therefore, this fund no longer merits our
highest rating.
Address: Four Embarcadero Center Minimum Purchase: $2500 Add: $100 IRA: $500
San Francisco CA 94111 Min Auto Inv Plan: $2500 Add: —
800-789-2742 Sales Fees: No-load
Web Address: Management Fee: 0.75% mx./0.60% mn., 0.14%A
Inception: 09-12-94 Actual Fees: Mgt:0.66% Dist:—
Advisor: Matthews International Cap Mgmt LLc Expense Projections: 3Yr:$346 5Yr:$600 10Yr:$1328
Subadvisor: None Income Distribution: Annually
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A