Matthews International Funds (JPAN)

Overview

Matthews International Funds focus on providing investors access to emerging markets, with a particular emphasis on the Asia Pacific region. The funds typically invest in companies with strong growth potential, targeting long-term capital appreciation. Asset allocation varies by specific fund, but generally favors equities. The investment strategy involves bottom-up stock selection, focusing on fundamentals and long-term growth drivers.

Reputation and Reliability

Matthews Asia is a well-regarded investment manager specializing in Asia Pacific markets. They have a long track record and a reputation for in-depth local knowledge.

Management Expertise

Matthews Asia's management team consists of experienced professionals with extensive knowledge of Asian markets and a strong track record of investment performance.

Goal

To provide long-term capital appreciation by investing in companies in Asia Pacific and other emerging markets.

Investment Approach and Strategy

Strategy: The funds do not typically track a specific index but use active management based on fundamental research.

Composition The ETFs primarily hold stocks, focusing on companies in various sectors within Asia Pacific and other emerging market countries.

Market Share: Matthews International Funds have a notable market presence within the Asian emerging markets ETF category.

Total Net Assets (AUM): 1300000000

Key Competitors

• VWO
• IEMG
• EEM

Competitive Landscape

The emerging markets ETF industry is highly competitive, dominated by large providers like Vanguard and BlackRock. Matthews offers specialized Asia Pacific expertise, but faces challenges in gaining significant market share due to the size and scale of its competitors. Matthews's advantage lies in its focused, active management approach but may experience higher fees than passive competitors.

Historical Performance: Historical performance varies by specific fund within the Matthews International Funds family. Investors should review the performance of each fund over various time periods to assess its track record.

Benchmark Comparison: The fund's performance should be compared to relevant emerging markets or Asia Pacific benchmarks to evaluate its effectiveness.

Expense Ratio: 0.79

Average Trading Volume

Liquidity varies by fund, but generally, trading volumes are moderate, potentially affecting the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and the specific fund, impacting transaction costs.

Market Environment Factors

Economic growth in Asia, geopolitical risks, and currency fluctuations are key factors influencing Matthews International Funds.

Growth Trajectory

Growth trends for Matthews International Funds are tied to the expansion of Asian economies and the increasing interest in emerging markets investments. Changes to strategy would involve shifts in sector allocations or geographic exposure within Asia.

Competitive Edge

Matthews Asia's competitive advantage lies in its deep understanding of Asian markets, its long-term investment approach, and its focus on fundamental research. They have built strong relationships with local companies and possess in-depth knowledge of regional economic trends. Their bottom-up stock selection process allows them to identify undervalued companies with strong growth potential. This expertise gives them an edge in navigating the complexities of Asian markets and delivering long-term value to investors.

Volatility

Emerging markets are generally more volatile than developed markets, so Matthews International Funds can experience significant price swings.

Market Risk

The underlying assets are subject to emerging market risks, including political instability, currency devaluation, and regulatory changes.

Ideal Investor Profile

The ideal investor is one who is seeking long-term growth potential in Asia Pacific and other emerging markets and is comfortable with the higher volatility associated with these regions.

Market Risk

Matthews International Funds are best suited for long-term investors with a higher risk tolerance who understand the dynamics of emerging markets.

Matthews International Funds provide exposure to the growth potential of Asian and other emerging markets. They employ an active management strategy focused on bottom-up stock selection and fundamental research. While offering specialized expertise in the region, they face competition from larger ETF providers and expose investors to emerging market risks. These ETFs may appeal to long-term investors with a higher risk tolerance who seek diversified exposure to Asian economies.

Data Sources:

• ETF.com
• Morningstar
• Company Websites
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.