(PUB) Investing 2016

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Data through February 29, 2016 FINRA members: For internal or institutional use only.
Matthews Asia Dividend Investor Ticker
MAPIX
Yield
1.8%
Total Assets
$4,346 mil
Mstar Category
Diversified Pacific/Asia
Benchmark 1: MSCI Pacific NR USD
Benchmark 2: MSCI ACWI Ex USA NR USD
Morningstar Analyst Rating 02-08-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ¶ Neutral
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
Historical Profile
Return
Risk
Rating
Above Avg
Low
QQQQ
Above Avg
1 1 4 1 4 4 4 4 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
( & & & & ( ( ( * & Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 02-16 History
10.77 12.00 8.61 12.06 14.33 12.48 14.58 15.60 15.26 15.36 14.55 NAV
. 18.05 -25.97 47.59 22.83 -10.02 21.63 11.27 -0.32 3.86 -5.27 Total Return %
. 12.75 10.46 23.41 6.91 3.72 7.21 -7.00 2.38 0.90 4.88 +/- Bmark 1
. 1.40 19.56 6.15 11.68 3.69 4.80 -4.01 3.55 9.52 2.59 +/- Bmark 2
. 2.56 2.56 6.47 3.46 2.59 4.54 4.20 1.95 1.78 0.00 Income Return %
. 15.49 -28.53 41.12 19.37 -12.61 17.09 7.07 -2.27 2.08 -5.27 Capital Return %
. 59 1 16 5 3 56 67 54 32 3 Total Rtn % Rank Cat
0.02 0.27 0.30 0.55 0.41 0.37 0.56 0.60 0.30 0.27 0.00 Income $
. 0.45 0.02 0.00 0.04 0.06 0.00 0.00 0.00 0.23 0.00 Capital Gains $
2.93 1.42 1.35 1.30 1.15 1.10 1.09 1.06 1.06 . . Expense Ratio %
1.34 2.66 3.74 3.16 2.31 2.61 2.65 2.04 1.89 . . Income Ratio %
0 27 25 32 10 16 9 14 20 . . Turnover Rate %
26 82 142 320 1,923 1,930 2,767 3,671 2,923 2,756 2,475 Net Assets $mil
Performance 02-29-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 -0.39 1.60 -12.62 1.76 -10.02
2012 11.55 -2.50 6.51 4.99 21.63
2013 7.41 -2.15 5.69 0.18 11.27
2014 -2.00 7.45 -2.05 -3.36 -0.32
2015 8.64 3.69 -12.07 4.85 3.86
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -5.62 3.70 3.98 11 9,438
6 Mo -3.83 3.91 5.45 12 9,617
1 Yr -7.38 6.21 9.99 6 9,262
3 Yr Avg 1.31 1.45 3.51 13 10,399
5 Yr Avg 3.92 3.54 5.22 7 12,121
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 0.11 25 1.18 72
5 Yr (estimated) 2.68 14 1.20 70
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: 7% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -7.38
3 Yr 1.31 Avg -Avg QQQ
5 Yr 3.92 +Avg Low QQQQ
10 Yr — — — —
Incept 7.95
Other Measures Standard Index Best Fit Index
Alpha 3.1 1.6
Beta 0.82 0.88
R-Squared 81 82
Standard Deviation 11.60
Mean 1.31
Sharpe Ratio 0.16
Portfolio Analysis 12-31-15
Total Stocks: 65
Share change since 09-30-15 Sector Country % Assets
YLG Chem Ltd Basic Mat South Korea 3.48
Japan Tobacco Inc Cnsmr Def Japan 3.43
YShenzhou International Gr Cnsmr Cyc China 3.38
Suntory Beverage & Food L Cnsmr Def Japan 3.35
YHoya Corp Technology Japan 3.19
Bridgestone Corp Cnsmr Cyc Japan 2.98
Kao Corp Cnsmr Def Japan 2.67
Minth Group Ltd Cnsmr Cyc China 2.51
Sumitomo Mitsui Financial Finan Svcs Japan 2.49
NTT DOCOMO Inc Comm Svcs Japan 2.47
YKT&G Corp Cnsmr Def South Korea 2.33
TBGF Retail Co Ltd Cnsmr Cyc South Korea 2.19
China Construction Bank C Finan Svcs China 2.18
TAIA Group Ltd Finan Svcs Hong Kong 2.17
Matthews Adf-Us Series — — 2.15
YITOCHU Corp Industrl Japan 2.13
YChunghwa Telecom Co Ltd A Comm Svcs Taiwan 2.12
Guangdong Investment Ltd Utilities China 1.99
Pigeon Corp Cnsmr Def Japan 1.96
Toyo Suisan Kaisha Ltd Cnsmr Def Japan 1.96
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 41.7
Large 34.8
Mid 17.2
Small 6.3
Micro 0.0
Avg $mil:
10,315
Value Measures Rel Category
Price/Earnings 14.13 1.01
Price/Book 1.94 1.20
Price/Sales 1.94 1.58
Price/Cash Flow 5.48 0.99
Dividend Yield % 3.22 1.16
Growth Measures % Rel Category
Long-Term Erngs 10.22 0.95
Book Value 9.70 0.98
Sales 5.71 -4.32
Cash Flow 5.28 3.24
Historical Erngs 6.11 1.05
Composition - Net
Cash 0.1 Bonds 0.0
Stocks 99.9 Other 0.0
Foreign (% of Stock) 98.3
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 32.13 0.63
r BasicMat 3.56 0.56
t CnsmrCyc 16.30 1.10
y FinanSvcs 9.13 0.43
u Real Est 3.14 0.37
j Sensitive 35.90 1.14
i CommSrvs 14.29 2.58
o Energy 0.00 0.00
p Industrl 11.38 0.72
a Technlgy 10.23 1.25
k Defensive 31.96 1.79
s CnsmrDef 27.47 3.69
d Hlthcare 1.03 0.15
f Utilities 3.46 0.96
Regional Exposure % Stock
UK/W. Europe 0 N. America 2
Japan 32 Latn America 0
Asia X Japan 66 Other 0
Country Exposure % Stock
Japan 32
China 26
South Korea 8
Hong Kong 7
Taiwan 6
Morningstar's Take by William Samuel Rocco 02-08-16
Matthews Asia Dividend continues to outperform in sell-
offs, and its other strengths remain intact, so it retains a
Morningstar Analyst Rating of Silver.
This fund has declined 2.6% over the year ended Jan.
31, 2016, whereas the average diversified Asia-Pacific
fund fell6.4%andtheMSCIACAsiaPacific Indexdropped
11.4% over the period. This fund also lost considerably
less than both its typical rival and its benchmark in the
2011 stock sell-off and in the late 2007 to early 2009
global equity meltdown.
This fund’s commitment to sturdy dividend-payers
has played a crucial role in its down-market success, of
course, but the quality of co-lead managers Yu Zhang and
Robert Horrocks’--and their predecessors’ stock
selection--has played an important part as well. The
managers’ stock selection has been good in most
sideways markets and in certain rallies, too, so this fund
has handily outgained the average diversified Pacific/Asia
fund and the MSCI AC Asia Pacific Index over the long
run.
Meanwhile, this fund’s strategy is distinctive as well
as dividend-driven. The managers are benchmark-
agnostic and regularly invest significant amounts in
smaller companies and smaller countries as they pursue
attractively priced companies that have clear dividend
policies--and commitment to growing their payouts--as
wellasstrongcash flows,balancesheets,and franchises.
As a result, this fund is always different enough to have
a fighting chance to outperform, and it is a better portfolio
diversifier than most of the other funds in its category.
Zhang and Horrocks have good credentials for the
task at hand as well as an exceptional support team. Plus,
Matthews International Capital Management is a
fundholder-friendly firm that has delivered the goods at
all sorts of Asia-equity funds.
For all these reasons, this fund remains a superior
source of pan-Asia exposure for the long haul.
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., 0.25%A
Inception: 10-31-06 Actual Fees: Mgt:0.66% Dist:—
Advisor: Matthews International Cap Mgmt LLc Expense Projections: 3Yr:$336 5Yr:$584 10Yr:$1293
Subadvisor: None Income Distribution: Quarterly
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