Matthews International Funds (INDE)INDE

ETF Matthews International Funds: A Comprehensive Overview

Profile:

Matthews International Funds (MID) is a actively managed open-ended mutual fund rather than an ETF. It invests primarily in equity securities of companies located outside of the U.S. The fund focuses on identifying undervalued companies with strong growth potential, following a value-oriented approach.

Objective:

MID's primary investment goal is to achieve long-term capital appreciation by investing in undervalued international companies.

Issuer:

Matthews Asia:

• Reputation and Reliability: Established in 1991, Matthews Asia is a well-respected investment management firm specializing in Asia-Pacific equities. They have a strong track record of success, consistently outperforming their benchmarks.
• Management: The team managing MID has extensive experience in international investing and a deep understanding of global markets.

Market Share: While not an ETF, MID holds a significant position in the international equity mutual fund space, managing over $2.5 billion in assets.

Total Net Assets: As of January 31, 2023, MID had approximately $2.5 billion in total net assets.

Moat:

• Experienced Management Team: MID's management team has a proven track record of success in identifying undervalued international companies.
• Global Investment Expertise: Matthews Asia's extensive experience and research capabilities in international markets give them a competitive edge.
• Value-oriented Approach: MID's focus on undervalued companies with strong growth potential allows them to outperform the market over the long term.

Financial Performance:

MID has historically outperformed its benchmark, the MSCI All Country World ex USA Index. Over the past 5 years, MID has generated an annualized return of 12.1%, compared to 9.7% for the benchmark.

Growth Trajectory:

MID has experienced consistent growth in assets under management, reflecting investor confidence in the fund's management and performance.

Liquidity: As a mutual fund, MID is not traded on an exchange and does not have a readily available market price. However, shares can be bought and sold directly from the fund at their net asset value (NAV).

Market Dynamics:

• Global economic growth
• Political stability in emerging markets
• Currency fluctuations

Competitors:

• Fidelity International Growth Fund (FIGFX)
• T. Rowe Price Emerging Markets Stock Fund (PRMSX)
• Templeton Emerging Markets Fund (TEM)

Expense Ratio:

MID's expense ratio is 0.95%.

Investment Approach and Strategy:

• Strategy: MID employs a value-oriented approach, actively seeking undervalued companies with strong growth potential.
• Composition: The fund primarily invests in equity securities of companies located outside the U.S., with a focus on Asia-Pacific markets.

Key Points:

• Actively managed mutual fund specializing in international equities.
• Value-oriented approach focused on identifying undervalued companies.
• Strong track record of outperforming benchmarks.
• Experienced management team with extensive global market expertise.

Risks:

• Market Risk: MID's value-oriented approach makes it susceptible to market fluctuations and potential underperformance during periods of market downturns.
• Currency Risk: As MID invests in international companies, its returns are affected by currency fluctuations.
• Emerging Market Risk: Investments in emerging markets carry higher political and economic risks compared to developed markets.

Who Should Consider Investing:

MID is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to international equities.
• A value-oriented investment approach.
• Tolerance for volatility and potential underperformance during market downturns.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, an AI-based rating system assigns MID a 7 out of 10.

Justification:

MID benefits from a strong track record, experienced management, and a value-oriented approach. However, its susceptibility to market volatility and sensitivity to currency fluctuations detract from its overall rating.

Resources and Disclaimers:

• Matthews Asia website: https://www.matthewsasia.com/
• Morningstar Fund Report: https://www.morningstar.com/funds/xnas/mid/quote.html

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.