Matthews International Funds (JPAN)

Summary of US ETF Matthews International Funds

Profile:

Matthews International Funds are a family of actively managed ETFs that invest in international equities across various regions and sectors. Each fund focuses on different aspects of the international market, such as:

• Emerging Markets: Invests primarily in emerging market equities.
• Asia ex-Japan: Invests in equities of companies based in Asia excluding Japan.
• Global Value: Invests in international equities with a focus on value investing principles.
• Global Unconstrained: Invests in a diversified portfolio of international equities with flexible sector and regional allocation.

The investment strategies of these ETFs combine fundamental analysis and global macro research to identify undervalued companies with growth potential.

Objective:

The primary investment goal of Matthews International Funds is to achieve long-term capital appreciation by investing in a diversified portfolio of international equities.

Issuer:

The Matthews International Funds are issued and managed by Matthews Asia, a leading asset manager specializing in Asia-Pacific equities with over 30 years of experience.

Reputation and Reliability:

Matthews Asia has a strong reputation in the industry, with numerous awards and recognitions for its investment performance and expertise. The firm is known for its in-depth research and experienced investment team.

Management:

The Matthews International Funds are managed by experienced portfolio managers with deep knowledge of international markets. The team utilizes a collaborative approach, combining individual expertise with collective insights.

Market Share:

Matthews International Funds have a relatively small market share in the international equity ETF space compared to larger players like iShares and Vanguard. However, they are recognized for their unique investment strategies and active management approach.

Total Net Assets:

The total net assets under management for Matthews International Funds vary depending on the specific fund. As of November 2023, the total assets for the individual funds range from approximately $200 million to $1 billion.

Competitive Advantages (Moat):

• Active Management: Matthews International Funds benefit from active management, allowing the portfolio managers to make strategic adjustments based on market conditions and identify undervalued opportunities.
• Experienced Team: The experienced investment team with deep knowledge of international markets provides an edge in identifying growth potential.
• Unique Strategies: Each fund focuses on a specific niche within the international market, offering investors differentiated exposure.

Financial Performance:

Matthews International Funds have historically delivered competitive returns, outperforming their respective benchmarks in many periods. However, past performance is not indicative of future results.

Growth Trajectory:

The growth trajectory of Matthews International Funds depends on various factors, including market conditions, investor sentiment, and the performance of the underlying assets.

Liquidity:

The average trading volume and bid-ask spread for Matthews International Funds vary depending on the specific fund. Generally, the larger funds tend to have higher liquidity.

Market Dynamics:

Several factors influence the market environment for Matthews International Funds, including global economic growth, geopolitical events, interest rate policies, and sector-specific trends.

Competitors:

Key competitors in the international equity ETF space include iShares, Vanguard, and BlackRock. These firms offer a wider range of ETFs with different investment strategies and asset allocations.

Expense Ratio:

The expense ratios for Matthews International Funds vary depending on the specific fund, ranging from approximately 0.50% to 0.75%.

Investment Approach and Strategy:

Matthews International Funds employ active management strategies, focusing on fundamental analysis and global macro research to select undervalued companies with growth potential. The composition of each fund varies depending on its specific investment objective and market focus.

Key Points:

• Actively managed international equity ETFs with a focus on specific regions and sectors.
• Strong reputation and experienced management team.
• Competitive returns and unique investment strategies.
• Lower market share compared to larger competitors.

Risks:

• Market volatility and potential for capital loss.
• Specific risks associated with international markets, such as currency fluctuations and political instability.
• Active management risk, as the portfolio manager's decisions may not always lead to desired results.

Who Should Consider Investing:

Investors seeking active exposure to international equities with a focus on specific regions and sectors may consider Matthews International Funds. These funds are suitable for investors with a long-term investment horizon and a tolerance for higher risk.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, Matthews International Funds receive a 7 out of 10 rating. This rating reflects their strong track record, experienced management, and unique investment strategies, but also acknowledges their relatively smaller market share and higher expense ratios compared to some competitors.

Resources and Disclaimers:

This analysis utilizes data from the Matthews Asia website, ETF.com, and Morningstar. This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.