(PUB) Investing 2016

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5 Morningstar FundInvestor October 2016
Data through September 30, 2016 FINRA members: For internal or institutional use only.
Matthews Asian Growth & Inc Investor Ticker
MACSX
Yield
1.9%
Total Assets
$3,100 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 09-26-16
„
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
12.5
15.0
17.5
20.0
22.5
Historical Profile
Return
Risk
Rating
Average
Low
QQQ
Neutral
1 1 4 4 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 09-16 History
18.68 19.78 11.49 15.77 18.04 15.07 18.61 18.91 18.01 16.03 17.56 NAV
23.38 21.54 -32.07 41.44 19.18 -10.62 26.90 4.83 -0.65 -4.50 10.51 Total Return %
-8.36 -14.95 18.50 -27.45 -0.27 4.16 4.88 1.07 -3.81 5.01 -2.65 +/- Bmark 1
-3.27 4.89 13.46 -0.01 8.02 3.09 10.06 -10.46 3.22 1.16 4.69 +/- Bmark 2
3.63 4.97 2.13 3.85 3.02 2.65 3.14 2.49 1.84 2.34 0.92 Income Return %
19.75 16.57 -34.20 37.59 16.16 -13.27 23.76 2.34 -2.49 -6.85 9.59 Capital Return %
84 92 1 97 60 11 24 25 96 24 65 Total Rtn % Rank Cat
0.62 0.90 0.41 0.44 0.47 0.47 0.47 0.46 0.35 0.42 0.15 Income $
1.77 2.00 1.67 0.00 0.24 0.61 0.00 0.12 0.44 0.76 0.00 Capital Gains $
1.20 1.16 1.16 1.18 1.13 1.12 1.11 1.08 1.08 1.09 1.11 Expense Ratio %
2.27 2.59 3.19 3.47 2.47 2.71 2.52 2.14 2.03 2.17 1.79 Income Ratio %
28 28 25 18 20 17 17 15 17 16 . Turnover Rate %
2,021 2,273 1,085 2,545 3,922 2,344 3,206 3,277 3,055 2,053 2,043 Net Assets $mil
Performance 09-30-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 11.02 -1.35 10.37 4.99 26.90
2013 4.41 -2.52 1.87 1.10 4.83
2014 0.48 4.41 -1.88 -3.49 -0.65
2015 2.00 1.43 -10.26 2.86 -4.50
2016 4.05 2.88 3.23 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 3.23 -7.39 -3.68 100 10,323
6 Mo 6.20 -4.47 -0.02 100 10,620
1 Yr 13.68 -4.43 4.42 79 11,368
3 Yr Avg 1.96 -0.84 1.78 86 10,601
5 Yr Avg 7.13 0.04 1.09 82 14,111
10 Yr Avg 6.81 0.79 4.65 60 19,328
15 Yr Avg 11.68 0.40 5.12 68 52,453
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 0.44 87 1.49 80
5 Yr (estimated) 5.62 85 1.41 96
10 Yr (estimated) 4.94 65 1.75 100
Potential Capital Gain Exposure: 18% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr 13.68
3 Yr 1.96 -Avg Low QQ
5 Yr 7.13 -Avg Low QQQ
10 Yr 6.81 Avg Low QQQQ
Incept 9.58
Other Measures Standard Index Best Fit Index
Alpha 1.8 2.0
Beta 0.75 0.61
R-Squared 78 87
Standard Deviation 10.79
Mean 1.96
Sharpe Ratio 0.22
Portfolio Analysis 06-30-16
Total Stocks: 53
Share change since 03-31-16 Sector Country % Assets
AIA Group Ltd Finan Svcs Hong Kong 3.65
Jardine Matheson Holdings Industrl Hong Kong 2.64
Genting Malaysia Bhd Cnsmr Cyc Malaysia 2.49
CLP Holdings Ltd Utilities Hong Kong 2.41
TSkyCity Entertainment Gro Cnsmr Cyc New Zealand 2.41
Singapore Telecommunicati Comm Svcs Singapore 2.35
China Mobile Ltd ADR Comm Svcs China 2.28
Ascendas Real Estate Inve Real Est Singapore 2.27
KDDI Corp Comm Svcs Japan 2.25
YJapan Tobacco Inc Cnsmr Def Japan 2.23
KT&G Corp Cnsmr Def South Korea 2.20
Guangdong Investment Ltd. Utilities Hong Kong 2.17
YTechtronic Industries Co Industrl Hong Kong 2.15
United Overseas Bank Ltd Finan Svcs Singapore 2.06
Singapore Technologies En Industrl Singapore 2.05
Taiwan Semiconductor Manu Technology Taiwan 1.99
Kangwon Land Inc Cnsmr Cyc South Korea 1.98
Lg Household&Healt Pfd — South Korea 1.96
PT Telekomunikasi Indones Comm Svcs Indonesia 1.95
Yum Brands Inc Cnsmr Cyc United States 1.93
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 47.9
Large 36.8
Mid 15.3
Small 0.0
Micro 0.0
Avg $mil:
14,788
Value Measures Rel Category
Price/Earnings 15.21 0.98
Price/Book 1.71 0.89
Price/Sales 1.79 1.10
Price/Cash Flow 10.63 1.55
Dividend Yield % 3.80 1.36
Growth Measures % Rel Category
Long-Term Erngs 9.38 0.76
Book Value 8.37 1.42
Sales 3.27 0.64
Cash Flow -0.60 -0.12
Historical Erngs 0.76 0.12
Composition - Net
Cash 0.0 Bonds 0.0
Stocks 90.1 Other 9.9
Foreign (% of Stock) 95.9
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 33.25 0.71
r BasicMat 0.00 0.00
t CnsmrCyc 16.88 1.41
y FinanSvcs 11.42 0.49
u Real Est 4.95 0.72
j Sensitive 44.37 1.03
i CommSrvs 17.77 2.89
o Energy 0.00 0.00
p Industrl 18.61 2.41
a Technlgy 7.99 0.30
k Defensive 22.39 2.21
s CnsmrDef 11.19 2.36
d Hlthcare 3.46 2.26
f Utilities 7.74 2.01
Regional Exposure % Stock
UK/W. Europe 4 N. America 4
Japan 9 Latn America 0
Asia X Japan 83 Other 0
Country Exposure % Stock
Hong Kong 22
Singapore 16
South Korea 11
Japan 9
Malaysia 7
Morningstar's Take by William Samuel Rocco 09-26-16
Matthews Asian Growth & Income merits a Morningstar
Analyst Rating of Silver because it has several appealing
traits, including an attractive strategy that is quite
distinctive as well as rather conservative.
Co-lead managers Robert Horrocks and Kenneth
Lowe invest individend-payingcommonstocks,preferred
equities, and convertible and other bonds, whereas all of
their peers focus exclusively or nearly exclusively on
common stocks and many of them favor bolder, fast-
growing equities. This fund’s geographic range is also
relatively broad, because the managers regularly invest
in the region’s developed markets--including Australia
and Japan--while most of their counterparts do not.
But the strategy is not tamer than the Pacific/Asia
ex-Japan norm in every respect. The managers readily
pile into areas and sectors that are packed with securities
that meet their standards, so this fund normally has
several sizable country and sector overweightings versus
its average peer and its benchmark, the MSCI All Country
Asia ex Japan Index. And the managers normally invest
in roughly 50 to 60 names, whereas their typical
counterpart holds more than 100 stocks and the
benchmark includes more than 600.
This conservative but distinctive approach has
served this fund well. Thanks to its reserved traits and the
managers’ execution, the fund has consistently held up
well in downturns, and it has been the least volatile
member of its category by far--and much steadier than
the index--over time. Although it has lagged in frothier
rallies, it has posted solid results in others, so it has
earned competitive total returns and superior risk-
adjusted returns over the long run. Finally, Horrocks and
Lowe have strong credentials as well as a great support
team. The expense ratios are modest here, and
Matthews has delivered good long-term results with all
sorts of Asia offerings. As a result, this fund is a terrific
Asia vehicle for the long run.
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:0.00%
Advisor: Matthews International Cap Mgmt LLc Expense Projections: 3Yr:$347 5Yr:$601 10Yr:$1329
Subadvisor: None Income Distribution: Semi-Annually
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