(PUB) Investing 2016

6

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 „

Investment Style Equity

Historical Profile Return Risk Rating Above Avg Low QQQQ Above Avg

1 1 4 1 4 4 4 4

20.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

15.0

Morningstar Pillars Process

∞ Positive ∞ Positive ∞ Positive ∞ Positive ¶ Neutral

10.0

Performance

People Parent

Performance Quartile (within Category)

( & & & & ( ( ( * & 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 02-16 10.77 12.00 8.61 12.06 14.33 12.48 14.58 15.60 15.26 15.36 14.55 . 18.05 -25.97 47.59 22.83 -10.02 21.63 11.27 -0.32 3.86 -5.27 . 12.75 10.46 23.41 6.91 3.72 7.21 -7.00 2.38 0.90 4.88 . 1.40 19.56 6.15 11.68 3.69 4.80 -4.01 3.55 9.52 2.59 . 2.56 2.56 6.47 3.46 2.59 4.54 4.20 1.95 1.78 0.00 . 15.49 -28.53 41.12 19.37 -12.61 17.09 7.07 -2.27 2.08 -5.27

Price

History

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

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

.

59

1

16

5

3

56

67

54

32

3

§ Negative

¶ Neutral

0.02 0.27 0.30 0.55 0.41 0.37 0.56 0.60 0.30 0.27 0.00 . 0.45 0.02 0.00 0.04 0.06 0.00 0.00 0.00 0.23 0.00

Performance 02-29-16 1st Qtr 2nd Qtr

. . . . . .

2.93 1.42 1.35 1.30 1.15 1.10 1.09 1.06 1.06 1.34 2.66 3.74 3.16 2.31 2.61 2.65 2.04 1.89

3rd Qtr

4th Qtr

Total

2011 2012 2013 2014 2015

-0.39 1.60 -12.62 1.76 -10.02 11.55 -2.50 6.51 4.99 21.63 7.41 -2.15 5.69 0.18 11.27 -2.00 7.45 -2.05 -3.36 -0.32 8.64 3.69 -12.07 4.85 3.86

0

27 82

25

32

10

16

9

14

20

26

142

320 1,923 1,930 2,767 3,671 2,923 2,756 2,475

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 12-31-15 Total Stocks: 65 Share change since 09-30-15

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

Country

% Assets

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

Y LG Chem Ltd

Basic Mat South Korea

3.48 3.43 3.38 3.35 3.19 2.98 2.67 2.51 2.49 2.47 2.33 2.19 2.18 2.17 2.15 2.13 2.12 1.99 1.96 1.96

1 Yr 3 Yr 5 Yr

-7.38 1.31 3.92

3 Mo 6 Mo

-5.62 3.70 3.98 -3.83 3.91 5.45 -7.38 6.21 9.99 1.31 1.45 3.51 3.92 3.54 5.22

11 9,438 12 9,617 6 9,262 13 10,399 7 12,121

Japan Tobacco Inc

Cnsmr Def

Japan

-Avg QQQ Low QQQQ

Avg

Y Shenzhou International Gr Suntory Beverage & Food L

Cnsmr Cyc China

+Avg

1 Yr

Cnsmr Def

Japan

10 Yr Incept

— — — —

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Y Hoya Corp

Technology Japan Cnsmr Cyc Japan Cnsmr Cyc China Finan Svcs Japan Comm Svcs Japan Cnsmr Def Japan

7.95

Bridgestone Corp

— — — — — — — — — —

Kao Corp

Other Measures

Standard Index

Best Fit Index

Minth Group Ltd

Alpha

3.1

1.6

Sumitomo Mitsui Financial

Beta

0.82

0.88

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

NTT DOCOMO Inc

R-Squared

81

82

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

0.11 2.68

25 14

1.18 1.20

72 70

Y KT&G Corp

Cnsmr Def

South Korea

Standard Deviation

11.60

T BGF Retail Co Ltd

Cnsmr Cyc South Korea

— — — —

Mean

1.31 0.16

China Construction Bank C

Finan Svcs China

Sharpe Ratio

T AIA Group Ltd

Finan Svcs Hong Kong

Potential Capital Gain Exposure: 7% of assets

Matthews Adf-Us Series

— —

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-

Y ITOCHU Corp

Industrl

Japan

Y Chunghwa Telecom Co Ltd A Comm Svcs Taiwan

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.

Guangdong Investment Ltd

Utilities

China Japan Japan

Pigeon Corp

Cnsmr Def Cnsmr Def

Toyo Suisan Kaisha Ltd

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 41.7 Large 34.8 Mid 17.2 Small 6.3 Micro 0.0 Avg $mil: 10,315

Value Blend Growth

Large Mid Small

32.13 0.63 3.56 0.56 16.30 1.10 9.13 0.43 3.14 0.37 35.90 1.14 14.29 2.58 0.00 0.00 11.38 0.72 10.23 1.25 31.96 1.79 27.47 3.69 1.03 0.15 3.46 0.96

Value Measures

Rel Category

Price/Earnings 14.13

1.01 1.20 1.58 0.99 1.16 0.95 0.98 -4.32 3.24 1.05

Price/Book Price/Sales

1.94 1.94

Price/Cash Flow 5.48 Dividend Yield % 3.22

Growth Measures

% Rel Category

Long-Term Erngs 10.22

Regional Exposure % Stock UK/W. Europe 0 N. America 2 Japan 32 Latn America 0 Asia X Japan 66 Other 0

Book Value

9.70 5.71 5.28

Sales

Address:

Four Embarcadero Center San Francisco CA 94111

Minimum Purchase: Min Auto Inv Plan:

$2500 $2500

Add: $100 IRA: $500

Cash Flow

Add: —

Historical Erngs 6.11

800-789-2742

Sales Fees:

No-load

Country Exposure

% Stock

Web Address:

www.matthewsasia.com/

Management Fee:

0.75% mx./0.60% mn., 0.25%A

Composition - Net Cash

Japan China

32

Hong Kong 7 Taiwan 6

Inception:

10-31-06

Actual Fees:

Mgt:0.66% Dist:—

0.1 Bonds

0.0 0.0

Advisor:

Matthews International Cap Mgmt LLc

Expense Projections: Income Distribution:

3Yr:$336 5Yr:$584 10Yr:$1293

26 South Korea 8

Stocks 99.9 Other

Subadvisor:

None

Quarterly

Foreign (% of Stock)

98.3

A

ß ® Mutual Funds

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