Matthews Asia Dividend Fund Investor Class (MAPIX)

Overview

The company is an investment fund focused on capitalizing on opportunities within emerging markets. Its primary investment strategy involves allocating at least 80% of its net assets, as well as any borrowings intended for investment purposes, towards acquiring common and preferred stocks of entities based in emerging market countries. A distinctive aspect of its investment approach is its willingness to concentrate a significant portion of its assets, occasionally exceeding 25%, in companies located within a single country. Notably, the fund has a history of concentrating investments in China, underlining its flexibility in focusing on areas where it identifies notable growth or value potential. This strategic focus allows the fund to potentially benefit from the dynamic and rapidly evolving nature of emerging markets, albeit with the acceptance of the wider range of risks associated with such regions.

Products and Services

• Common Stock Investments in Emerging Markets

  This product focuses on the acquisition of common stocks within emerging markets. Common stocks, representing shares of ownership in companies, allow the fund to participate directly in the financial successes or failures of the companies selected for investment. By concentrating on emerging markets, the fund seeks to capture the potential high growth rates of these economies, which can often outpace those of more developed markets. However, it also entails a higher risk, given the political, regulatory, and economic fluctuations characteristic of these regions.

• Preferred Stock Investments

  The fund also invests in preferred stocks of companies located in emerging markets. Preferred stocks provide potentially more stable dividends than common stocks and typically have higher priority in the event of a company's liquidation. This investment vehicle combines the income-generating potential of bonds with the growth potential of stocks, aiming to provide a balanced return. Investing in emerging markets seeks to benefit from the regions' economic growth while managing the investment risks with the peculiarities of preferred stocks.

• Strategic Concentration in Single Countries

  A notable strategy of the fund is its occasional decision to concentrate more than 25% of its investment assets in a single country, such as China. This approach is taken when the fund identifies a country with substantial growth opportunities or when a particular market is assessed as being significantly undervalued. Such a concentrated investment stance enables the fund to maximize potential returns from specific regional economic conditions or sectors but also introduces a higher level of risk associated with the lack of geographic diversification.