San Francisco-based Matthews International Capital Management
, which specializes in Asia funds, on Tuesday unveiled the China Dividend Fund
, bringing its fund count to 11.
The fund which will be co-managed by Jesper Madsen
and Richard Gao
, is offered at 478 basis points and the advisor has agreed to waive the fees until April 2012, capping total annual operating expenses at 150 bps and waiving 12b-1 fees. The new fund aims to invest exclusively in Chinese dividend-paying companies that are well-positioned to grow future dividends and yield.
“Asia and China, in particular, are becoming increasingly important components to strategic investment decisions for many investors,” stated Robert Horrocks
, Matthews' chief investment officer. “For most investors, there is only one way to access these markets: through a growth strategy. And yet, by comparison, we find a wide breadth of U.S. Investment strategies. We believe that, similarly, there is more than one way to invest in Chinese equity markets. Strategy matters.”
“The bulk of growth in China's dividends stems mostly from large, state-owned enterprises that have been listed during the past decade,” Madsen stated. “These companies, unlike most U.S. IPOs, are 'mature' companies that pay dividends from day one. As a result, China has become one of the largest and fastest-growing markets in Asia in terms of dividend payments, making a diversified and scalable dividend investment strategy in China possible.”
Of the 11 funds on Matthews' menu, three funds (including the dividend fund) focus on growth and income strategies, six funds concentrate on Asia growth strategies, one fund is an Asia small cap strategy, and an additional fund employs a specialty strategy, Asia technology fund.
Company Press Release
MATTHEWS LAUNCHES CHINA DIVIDEND FUND
San Francisco, CA, Dec. 1, 2009 - Matthews International Capital
Management, LLC,advisor to the Matthews Asia Funds, announced the
expansion of its fund lineup today to include a new portfolio
dedicated exclusively to investing in Chinese dividend-paying
The Matthews China Dividend Fund will seek to invest in the equity and
convertible securities of companies that are well-positioned to grow
future dividends while providing an attractive dividend yield. Managed
by Jesper Madsen, CFA, and co-managed by Richard Gao, the Fund offers
investors an opportunity to participate in China’s growth through a
total return dividend-focused strategy. Jesper Madsen is also the lead
manager of the Matthews Asia Dividend Fund* and Richard Gao is the
lead manager of the Matthews China and Pacific Tiger Funds.
“Asia and China, in particular, are becoming increasingly important
components to strategic investment decisions for many investors,” said
Robert Horrocks, PhD, Matthews’ Chief Investment Officer. “For most
investors, there is only one way to access these markets: through a
growth strategy. And yet, by comparison, we find a wide breadth of
U.S. investment strategies. We believe that, similarly, there is more
than one way to invest in Chinese equity markets. Strategy matters.”
In designing the Matthews China Dividend Fund, Matthews noted that
Asia Pacific has evolved into one of the premier regions for investors
seeking growing dividends and yield. Over the past decade, the
universe of dividend-paying companies in Asia Pacific—and in
particular China—has expanded significantly, allowing Matthews to
offer a second dividend-focused investment strategy in the region.
Dividends in Asia Pacific have risen five-fold during the last decade;
meanwhile dividends from Chinese companies (listed in Hong Kong,
B-share and offshore markets) grew from US$8 billion in 1998 to more
than US$70 billion by 2008.
“The bulk of the growth in China’s dividends stems mostly from large,
state-owned enterprises that have been listed during the past decade,”
said Jesper Madsen. “These companies, unlike most U.S. IPOs, are
‘mature’ companies that pay dividends from day one. As a result, China
has become one of the largest and fastest-growing markets in Asia in
terms of dividend payments, making a diversified and scalable dividend
investment strategy in China possible. We’ve been investing in
dividend growing companies across Asia Pacific for the past three
years in the Matthews Asia Dividend Fund and the Matthews China
Dividend Fund is an extension of the same stock selection process
employed exclusively to China. We’re pleased to offer the China
Dividend Fund as a means to participate in this important evolution to
China’s capital markets.”
*To better reflect its investment objective, the Fund’s name changed
from Matthews Asia Pacific Equity Income Fund to Matthews Asia
Dividend Fund on November 30, 2009.
There is no guarantee that the Matthews China Dividend Fund or the
Matthews Asia Dividend Fund or the companies in their portfolios will
pay or continue to pay dividends.
At Matthews, we believe in the long-term growth of Asia. Since 1991,
we have focused our efforts and expertise exclusively within the
region, investing through a variety of market environments. As an
independent, privately owned firm, Matthews is the largest dedicated
Asia-only investment specialist in the United States. Our investment
offerings provide a broad range of choices for building a global
portfolio that includes exposure to one of the world’s fastest-growing
regions. With over $10 billion in assets under management as of
October 31, 2009, Matthews employs a bottom-up, fundamental investment
philosophy, with a focus on long-term investment performance. For more
information please visit matthewsasia.com.
You should consider the investment objectives, risks, charges and
expenses of the Matthews Asia Funds carefully before making an
investment decision. A prospectus with this information and other
information about the Funds may be obtained by calling 1-800-789-ASIA
or by visiting matthewsasia.com. Please read the prospectus carefully
before investing as it explains the risks associated with investing in
Investing in foreign securities may involve certain additional risks,
including exchange-rate fluctuations, less liquidity, greater
volatility and less regulation. Single-country and sector funds may be
subject to a higher degree of market risk than diversified funds
because of concentration in a specific sector or geographic region.
Matthews Asia Funds are distributed by PFPC Distributors, Inc.
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