# EDGAR Filing Document

**Accession Number:** 0000923184
**File Stem:** 0001193125-25-317250
**Filing Date:** 2025-12
**Character Count:** 208501
**Document Hash:** 123122f4c7a71c2a027280e8df2f6e6b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-317250.hdr.sgml**: 20251212

**ACCESSION NUMBER**: 0001193125-25-317250

**CONFORMED SUBMISSION TYPE**: 497

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20251212

**DATE AS OF CHANGE**: 20251212

**EFFECTIVENESS DATE**: 20251212

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MATTHEWS INTERNATIONAL FUNDS
- **CENTRAL INDEX KEY:** 0000923184

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 497
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290615
- **FILM NUMBER:** 251567233

**BUSINESS ADDRESS:**
- **STREET 1:** FOUR EMBARCADERO CENTER
- **STREET 2:** SUITE 550
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94111
- **BUSINESS PHONE:** 8007898742

**MAIL ADDRESS:**
- **STREET 1:** FOUR EMBARCADERO CENTER
- **STREET 2:** SUITE 550
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94111

## Series and Classes Contracts Data

### MATTHEWS ASIA DIVIDEND FUND (Series ID: S000013856)

---

|  |  |  |
|:---|:---|:---|
| Class Name                 | Ticker Symbol | Class ID   |
| Investor Class Shares      | MAPIX         | C000038018 |
| Institutional Class Shares | MIPIX         | C000093229 |

---

### MATTHEWS CHINA DIVIDEND FUND (Series ID: S000027009)

---

|  |  |  |
|:---|:---|:---|
| Class Name                 | Ticker Symbol | Class ID   |
| Investor Class Shares      | MCDFX         | C000081250 |
| Institutional Class Shares | MICDX         | C000093231 |

---

## Series and Classes Contracts Data

### MATTHEWS ASIA DIVIDEND FUND (Series ID: S000013856)

| Class ID   | Class Name                 | Ticker Symbol   |
|:---|:---|:---|
| C000038018 | Investor Class Shares      | MAPIX           |
| C000093229 | Institutional Class Shares | MIPIX           |

### MATTHEWS CHINA DIVIDEND FUND (Series ID: S000027009)

| Class ID   | Class Name                 | Ticker Symbol   |
|:---|:---|:---|
| C000081250 | Investor Class Shares      | MCDFX           |
| C000093231 | Institutional Class Shares | MICDX           |

##### [**Table of Contents**](#toc)
**MATTHEWS INTERNATIONAL FUNDS** 

**Matthews China Dividend Fund** 

**Four Embarcadero Center, Suite 550** 

**San Francisco, CA 94111** 

**(415) 788-7553** 

December 12, 2025

Dear Shareholder:

You are receiving the enclosed Combined Prospectus/Information Statement because you owned interests in the Matthews China Dividend Fund (the "Target Fund"), a series of Matthews International Funds d/b/a Matthews Asia Funds (the "Trust"), as of the close of business on January 27, 2026. We are writing to inform you about a reorganization of the Target Fund with the Matthews Asia Dividend Fund (the "Acquiring Fund" and together with the Target Fund, the "Funds" and each, a "Fund"), also a series of the Trust. In this reorganization, your Target Fund shares will be exchanged for the same class of shares of the Acquiring Fund with the same aggregate net asset value of the Target Fund shares that you currently hold. It is currently anticipated that the reorganization of the Target Fund will be effected on a tax-free basis for federal income tax purposes.

The reorganization of the Target Fund is being proposed because Matthews International Capital Management, LLC ("Matthews"), each Fund's investment adviser, recognized that the Funds have identical investment objectives and similar investment strategies, and that shareholders of the Target Fund could benefit from the broader geographic investment universe and range of investment opportunities of the Acquiring Fund. As a result, Matthews determined it prudent to recommend the Reorganization to combine the Target Fund with the Acquiring Fund, given the overlap in their investment mandates. Further, Matthews believes that shareholders of each Fund could benefit from potential operating efficiencies and economies of scale that may be achieved by combining the Funds' assets in the reorganization, than by continuing to operate the Funds separately. Matthews further believes that it is in the best interests of the Target Fund to combine the Target Fund's assets with a fund with a current lower overall expense ratio.

The Board of Trustees of the Trust has determined that the reorganization is in the best interests of each Fund and that the interests of each Fund's existing shareholders will not be diluted as a result of the reorganization. The reorganization is expected to take effect on or about January 27, 2026.

If you do not want to participate in the reorganization, you may redeem your shares of the Target Fund in the ordinary course until the last business day before the closing. Redemption requests received after that time will be treated as redemption requests for shares of the Acquiring Fund received in connection with the reorganization.

**NO SHAREHOLDER ACTION IS REQUIRED AS A RESULT OF THE REORGANIZATION.** 

In accordance with the Trust's operative documents, and applicable Delaware state and U.S. federal law (including Rule 17a-8 under the Investment Company Act of 1940, as amended), the reorganization may be effected without the approval of shareholders of either Fund.

We encourage you to carefully review the enclosed materials, which explain the reorganization in more detail.

---

| |
|:---|
| Sincerely, |
| John P. McGowan |
| *Vice President and Secretary* |

---

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##### [**Table of Contents**](#toc)
**QUESTIONS & ANSWERS** 

We recommend that you read the complete Combined Prospectus/Information Statement. For your convenience, we have provided a brief overview of the Reorganization (as defined below).

---

| | |
|:---|:---|
| **Q:** | **Why is the Reorganization taking place?**  |

---

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| | |
|:---|:---|
| A: | Matthews China Dividend Fund (the "Target Fund"), a series of Matthews Asia Funds (the "Trust"), and Matthews Asia Dividend Fund (the "Acquiring Fund" and together with the Target Fund, the "Funds" and each, a "Fund"), also a series of the Trust, have identical investment objectives and similar investment policies, strategies, restrictions and risks. It is expected that the Reorganization will enable the Combined Fund (as defined below) to operate more efficiently in the future.  |

---

The Board of Trustees of the Trust has determined that the Reorganization is in the best interests of each Fund, and that the interests of each Fund's shareholders will not be diluted as a result of the Reorganization.

---

| | |
|:---|:---|
| **Q:** | **How does the Reorganization work?**  |

---

---

| | |
|:---|:---|
| A: | Pursuant to an Agreement and Plan of Reorganization (the "Reorganization Agreement") between the Trust, on behalf of the Target Fund, and the Trust, on behalf of the Acquiring Fund, the Target Fund will be reorganized into the Acquiring Fund (the "Reorganization"). Following the completion of the Reorganization, the Acquiring Fund may be referred to as the "Combined Fund." The Reorganization will result in each shareholder of the Target Fund becoming a shareholder of the Acquiring Fund, another mutual fund.  |

---

Shares of the Target Fund will be exchanged for shares of the Acquiring Fund based on a specified exchange ratio determined by the respective net asset values of the two Funds' shares. On the date of the closing of the Reorganization, shareholders of the Target Fund will receive shares of the Acquiring Fund equal in aggregate net asset value to the value of their shares of the Target Fund, in exchange for their shares of the Target Fund. The Reorganization is expected to be effective on or about January 27, 2026. After such date, the Target Fund will be terminated as a series of the Trust. Please refer to the Combined Prospectus/Information Statement for a detailed explanation of the Reorganization and for a more complete description of the Acquiring Fund.

---

| | |
|:---|:---|
| **Q:** | **Do I need to vote for the Reorganization?**  |

---

---

| | |
|:---|:---|
| A: | No. In accordance with the Trust's operative documents, and applicable Delaware state and U.S. federal law (including Rule 17a-8 under the Investment Company Act of 1940, as amended), the Reorganization may be effected without the approval of shareholders of either Fund. Therefore, no vote of shareholders will be taken with respect to the Reorganization. **THE FUNDS ARE NOT ASKING FOR A PROXY AND YOU ARE NOT REQUESTED TO SEND A PROXY TO THE FUNDS WITH RESPECT TO THE REORGANIZATION.**  |

---

---

| | |
|:---|:---|
| **Q:** | **How will the Reorganization affect me?**  |

---

---

| | |
|:---|:---|
| A: | Pursuant to the Reorganization Agreement, all of the assets and liabilities of the Target Fund will be combined with those of the Acquiring Fund. Shares of the Target Fund will be exchanged for shares of the Acquiring Fund based on a specified exchange ratio determined by the respective net asset values of the Funds' shares. The aggregate net asset value of your Target Fund shares immediately before the Reorganization will be the same as the aggregate net asset value of your Acquiring Fund shares immediately following completion of the Reorganization; however, you will no longer own shares of the Target Fund but instead will own shares of the Acquiring Fund. After the completion of the Reorganization, you will own a smaller percentage of the Acquiring Fund than you did of the Target Fund because the Combined Fund will be larger than the Target Fund.  |

---

---

| | |
|:---|:---|
| **Q:** | **Will I own the same number of shares of the Acquiring Fund as I currently own of the Target Fund?**  |

---

------

##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| A: | No. However, you will receive shares of the Acquiring Fund with the same aggregate net asset value as the shares of the Target Fund you own prior to the Reorganization. The number of shares you receive will depend on the relative net asset value of the shares of the Target Fund and the Acquiring Fund on the closing date. Thus, on the closing date, if the net asset value of a share of the Acquiring Fund is lower than the net asset value of the corresponding share class of the Target Fund, you will receive a greater number of shares of the Acquiring Fund in the Reorganization than you held in the Target Fund before the Reorganization. On the other hand, if the net asset value of a share of the Acquiring Fund is higher than the net asset value of the corresponding share class of the Target Fund, you will receive fewer shares of the Acquiring Fund in the Reorganization than you held in the Target Fund before the Reorganization. The aggregate net asset value of your Acquiring Fund shares immediately after the Reorganization will be the same as the aggregate net asset value of the Target Fund shares immediately prior to the Reorganization.  |

---

---

| | |
|:---|:---|
| **Q:** | **Will my privileges as a shareholder change after the Reorganization?**  |

---

A: Your rights as a shareholder will not change as a result of the Reorganization, but you will be a shareholder of the Acquiring Fund, which is a separate series of the Trust. The shareholder services available to you after the Reorganization will be identical.

---

| | |
|:---|:---|
| **Q:** | **Who will advise the Acquiring Fund once the Reorganization is completed?**  |

---

A: As you know, the Target Fund is advised by Matthews International Capital Management, LLC ("Matthews"). The Acquiring Fund is also advised by Matthews and will continue to be advised by Matthews once the Reorganization is completed.

---

| | |
|:---|:---|
| **Q:** | **How will the Reorganization affect Fund expenses?**  |

---

---

| | |
|:---|:---|
| A: | Following the Reorganization, the Acquiring Fund's projected total annual operating expenses are expected to be below those of the Target Fund with respect to each class of shares.  |

---

---

| | |
|:---|:---|
| **Q:** | **What will I have to do to open an account in the Acquiring Fund?**  |

---

---

| | |
|:---|:---|
| A: | Your shares automatically will be converted into shares of the Acquiring Fund on the date of the completion of the Reorganization. You will receive written confirmation that this change has taken place. You will receive the same class of shares of the Acquiring Fund as you currently hold of the Target Fund. The aggregate net asset value of the shares you receive in the Reorganization relating to the Target Fund will be equal to the aggregate net asset value of the shares you own immediately prior to the Reorganization.  |

---

---

| | |
|:---|:---|
| **Q:** | **Will the Reorganization create a taxable event for me?**  |

---

------

##### [**Table of Contents**](#toc)
A: No, you will not recognize gain or loss for federal income tax purposes as a result of the Reorganization.

While Matthews anticipates that the Acquiring Fund will retain a portion of the Target Fund's holdings following the closing of the Reorganization, Matthews does anticipate that a material portion of the Target Fund's holdings will be sold in preparation for the Reorganization. The extent of these sales is primarily because certain of the current holdings of the Target Fund are deemed not to be appropriate for the Acquiring Fund. Matthews anticipates that the proceeds from such sales will be reinvested in assets that are consistent with the Acquiring Fund's investment strategy. During this period, the Target Fund may deviate from its principal investment strategies. Matthews has estimated that the brokerage commission and other portfolio transaction costs relating to the realignment of the Target Fund's portfolio prior to the Reorganization will be approximately $135,000 or, based on shares outstanding as of October 31, 2025, $0.02 per share. These costs will be borne by the Target Fund and indirectly by the Target Fund's shareholders (including Target Fund shareholders who receive shares of the Acquiring Fund in the Reorganization).

Whether certain of the Target Fund's portfolio holdings are sold will depend upon market conditions and portfolio composition of the Funds at the time of the Reorganization. The tax impact of any such sales will depend on the difference between the price at which such portfolio holdings are sold and the Target Fund's tax basis in such holdings. Any capital gains recognized in these sales on a net basis prior to the closing of the Reorganization will be distributed, if required, to the shareholders of the Target Fund as capital gain dividends (to the extent of net realized long-term capital gains) and/or ordinary dividends (to the extent of net realized short-term capital gains) during or with respect to the year of sale. Any capital gains recognized in these sales on a net basis following the closing of the Reorganization will be distributed, if required, to the Combined Fund's shareholders as capital gain dividends (to the extent of net realized long-term capital gains) and/or ordinary dividends (to the extent of net realized short-term capital gains) during or with respect to the year of sale. No significant distributions to Target Fund shareholders are expected, but any distributions could be taxable for shareholders depending on whether the shares are held in tax-advantages accounts such as IRAs.

---

| | |
|:---|:---|
| **Q:** | **Who will pay for the Reorganization?**  |

---

---

| | |
|:---|:---|
| A: | The costs of the Reorganization, as set forth in the Reorganization Agreement, will be allocated in equal proportion among Matthews, the Target Fund and the Acquiring Fund. Matthews estimates that these expenses will be approximately $210,000, such that Matthews, the Target Fund, and the Acquiring Fund would bear approximately $70,000, $70,000, and $70,000 of those expenses.  |

---

In addition, Matthews has estimated that the brokerage commission and other portfolio transaction costs relating to the realignment of the Target Fund's portfolio prior to the Reorganization will be approximately $135,000 or, based on shares outstanding as of October 31, 2025, $0.02 per share. These costs will be borne by the Target Fund and indirectly by the Target Fund's shareholders (including Target Fund shareholders who receive shares of the Acquiring Fund in the Reorganization). Please refer to "Information About the Reorganization – Expenses of the Reorganization" for additional information about the expenses associated with the Reorganization.

---

| | |
|:---|:---|
| **Q:** | **When will the Reorganization occur?**  |

---

A: The Reorganization is expected to occur on or about January 27, 2026.

---

| | |
|:---|:---|
| **Q:** | **Whom do I contact if I have questions?**  |

---

A: You may call (800) 789-ASIA (2742) Monday through Friday from 9:00 a.m. Eastern Time and 4:30 p.m. Eastern Time.

**Important additional information about the Reorganization is set forth in the accompanying Combined** 

**Prospectus/Information Statement.** 

**Please read it carefully.** 

------

##### [**Table of Contents**](#toc)
**COMBINED PROSPECTUS/INFORMATION STATEMENT** 

**Dated December 12, 2025** 

**MATTHEWS ASIA FUNDS** 

**Matthews China Dividend Fund** 

**Matthews Asia Dividend Fund** 

**Four Embarcadero Center, Suite 550** 

**San Francisco, CA 94111** 

**800.789.ASIA (2742)** 

This Combined Prospectus/Information Statement is furnished to you as a shareholder of the Matthews China Dividend Fund (the "Target Fund"), a series of Matthews International Funds, d/b/a Matthews Asia Funds (the "Trust"), a Delaware statutory trust. As provided in an Agreement and Plan of Reorganization (the "Reorganization Agreement"), the Target Fund will be reorganized into the Matthews Asia Dividend Fund (the "Acquiring Fund"), also a series of the Trust (the "Reorganization"). The Acquiring Fund is advised by Matthews International Capital Management, LLC ("Matthews"), the same investment adviser to the Target Fund. Following the completion of the Reorganization, the Acquiring Fund may be referred to as the "Combined Fund."

The Target Fund and the Acquiring Fund are each referred to as a "Fund" and collectively referred to as the "Funds."

The Board of Trustees of the Trust (the "Board") has determined that the Reorganization is in the best interests of each Fund, and that the interests of each Fund's shareholders will not be diluted as a result of the Reorganization.

**WE ARE NOT ASKING FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY** 

The Board has approved the Reorganization with respect to the Target Fund by which the Target Fund, a separate series of the Trust, an open-end management investment company, would be acquired by the Acquiring Fund. The Acquiring Fund and the Target Fund have identical investment objectives, to seek total return with an emphasis on providing current income. The Acquiring Fund also has similar investment strategies to the Target Fund except with respect to the geographic focus of each Fund's investments, as discussed in more detail below. For more information on the Target Fund's and the Acquiring Fund's investment strategies, see "Summary – Investment Objectives and Principal Investment Strategies" below.

In the Reorganization, the Target Fund will transfer its assets to the Acquiring Fund. The Acquiring Fund will assume all of the liabilities of the Target Fund and will issue shares to the Target Fund in an amount equal to the aggregate net asset value of the outstanding shares of the Target Fund. Immediately thereafter, the Target Fund will distribute these shares of the Acquiring Fund to its shareholders. After distributing these shares, the Target Fund will be terminated as a series of the Trust. When the Reorganization is complete, the Target Fund's shareholders will hold the same class of shares of the Acquiring Fund as they currently hold of the Target Fund. The aggregate net asset value of the Acquiring Fund shares received in the Reorganization will equal the aggregate net asset value of the Target Fund shares held by Target Fund shareholders immediately prior to the Reorganization. As a result of the Reorganization, however, a shareholder of the Target Fund will hold a smaller percentage of ownership in the larger Combined Fund than the shareholder did in the Target Fund prior to the Reorganization.

This Combined Prospectus/Information Statement sets forth concisely the information shareholders of the Target Fund should know before the Reorganization and constitutes an offering of shares of the Acquiring Fund being issued in the Reorganization. Please read it carefully and retain it for future reference.

------

##### [**Table of Contents**](#toc)
The following documents containing additional information about the Funds, each having been filed with the Securities and Exchange Commission (the "SEC"), are incorporated by reference into (legally considered to be part of) this Combined Prospectus/Information Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Statement of Additional Information dated December 12, 2025 (the "Reorganization SAI"),
relating to this Combined Prospectus/Information Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the [Prospectus](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/0000923184/000119312525107556/d888655d485bpos.htm) and [Statement of Additional Information](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/0000923184/000119312525107556/d888655d485bpos.htm) , each dated April 30, 2025 (the "Prospectus"
and the "SAI," respectively), containing additional information about the Target Fund and the Acquiring Fund.

In addition, the following document has been filed with the SEC and is incorporated by reference into (legally considered to be a part of) and also accompanies this Combined Prospectus/Information Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the [Summary Prospectus of the Acquiring Fund](http://www.sec.gov/Archives/edgar/data/923184/000119312525107573/d920946d497k.htm) dated April 30, 2025 (the "Acquiring Fund Summary Prospectus").

Except as otherwise described herein, the policies and procedures set forth herein relating to the shares of the Acquiring Fund will apply to the Institutional Class and Investor Class shares to be issued by the Acquiring Fund in connection with the Reorganization.

Each of the Funds is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended (the "1940 Act"), and in accordance therewith, files reports and other information, including proxy materials, with the SEC.

Copies of the foregoing and any more recent reports filed after the date hereof may be obtained without charge by calling or writing:

Target Fund or Acquiring Fund

c/o Matthews International Funds

Four Embarcadero Center, Suite 550

San Francisco, CA 94111

800.789.ASIA (2742)

If you wish to request the Reorganization SAI, please ask for the "Reorganization SAI."

You also may view or obtain these documents from the SEC:

---

| | |
|:---|:---|
| By E-mail: | <u>publicinfo@sec.gov</u><br> (duplicating fee required) |
| By Internet: | <u>www.sec.gov</u> |

---

**No person has been authorized to give any information or make any representation not contained in this Combined Prospectus/Information Statement and, if so given or made, such information or representation must not be relied upon as having been authorized. This Combined Prospectus/Information Statement does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction in which, or to any person to whom, it is unlawful to make such offer or solicitation.** 

**Neither the SEC nor any state regulator has approved or disapproved of these securities or passed upon the adequacy of this Combined Prospectus/Information Statement. Any representation to the contrary is a criminal offense.** 

The date of this Combined Prospectus/Information Statement is December 12, 2025.

------

##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  **[SUMMARY](#protx78426_1)** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp; [Background and Reasons for the Reorganization](#protx78426_2) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Investment Objectives and Principal Investment Strategies](#protx78426_3) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Fees and Expenses](#protx78426_4) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Federal Tax Consequences](#protx78426_5) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Purchase, Redemption and Valuation of Shares](#protx78426_6) | 11 |
|  **[COMPARISON OF THE FUNDS](#protx78426_7)** | **11** |
| &nbsp;&nbsp;&nbsp;&nbsp; [Principal Investment Risks](#protx78426_8) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Fundamental and Non-Fundamental Investment Restrictions](#protx78426_9) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Performance Information](#protx78426_10) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Management of the Funds](#protx78426_11) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Investment Advisory Agreement](#protx78426_12) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Service Providers](#protx78426_13) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Distribution and Service Fees](#protx78426_14) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Dividend Policies and Taxes](#protx78426_15) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Purchases and Redemptions of Fund Shares](#protx78426_16) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Market Timing Activities](#protx78426_17) | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Pricing of Fund Shares](#protx78426_18) | 20 |
|  **[FINANCIAL HIGHLIGHTS](#protx78426_19)** | **21** |
|  **[INFORMATION ABOUT THE REORGANIZATION](#protx78426_20)** | **22** |
| &nbsp;&nbsp;&nbsp;&nbsp; [General](#protx78426_21) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Terms of the Reorganization Agreement](#protx78426_22) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Reasons for the Reorganization](#protx78426_23) | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Material U.S. Federal Income Tax Consequences of the Reorganization](#protx78426_24) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Expenses of the Reorganization](#protx78426_25) | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Legal Matters](#protx78426_26) | 27 |
|  **[OTHER INFORMATION](#protx78426_27)** | **27** |
| &nbsp;&nbsp;&nbsp;&nbsp; [Capitalization](#protx78426_28) | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Shareholder Information](#protx78426_29) | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Shareholder Rights](#protx78426_30) | 28 |
|  [Appendix A - Fundamental and Non-Fundamental Investment Restrictions](#protx78426_31) | A-1 |
|  [Appendix B - Form of Agreement and Plan of Reorganization](#protx78426_32) | B-1 |

---

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##### [**Table of Contents**](#toc)
**SUMMARY** 

The following is a summary of certain information contained elsewhere in this Combined Prospectus/Information Statement and is qualified in its entirety by reference to the more complete information contained herein. Shareholders should read the entire Combined Prospectus/Information Statement carefully.

Matthews International Funds, d/b/a Matthews Asia Funds (the "Trust"), is an open-end management investment company registered with the SEC. Each of the Funds is a separate series of the Trust. The Acquiring Fund and the Target Fund have identical investment objective, to seek total return with an emphasis on providing current income. Matthews International Capital Management, LLC ("Matthews") serves as investment adviser for each Fund.

**Target Fund and Acquiring Fund.** The investment objectives of the Target Fund and the Acquiring Fund are identical. Both Funds seek total return with an emphasis on providing current income. The Combined Fund will pursue the same investment objective.

Both of the Funds currently provide exposure to dividend-paying equity securities. The Acquiring Fund currently seeks to achieve its goals by investing under normal circumstances at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. Asia consists of all countries and markets in Asia, and includes developed, emerging, and frontier countries and markets in the Asian region. Certain emerging market countries may also be classified as "frontier" market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam.

The Target Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in China, which also includes China's administrative and other districts, such as Hong Kong.

The Board of Trustees, including the Trustees who are not "interested persons" of the Trust (as defined in the 1940 Act) (the "Independent Trustees"), has unanimously approved the Reorganization, on behalf of the Target Fund. The Reorganization provides for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the transfer of all the assets of the Target Fund to the Acquiring Fund in exchange for the assumption by the
Acquiring Fund of all of the liabilities of the Target Fund and Institutional Class and Investor Class shares of the Acquiring Fund having an aggregate net asset value equal to the value of the assets of the Target Fund acquired by the
Acquiring Fund reduced by the amount of such assumed liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the distribution of such Institutional Class and/or Investor Class shares of the Acquiring Fund to
the Target Fund's shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the termination of the Target Fund as a series of the Trust.

Following the completion of the Reorganization, the Target Fund's shareholders will hold shares of the same class of the Acquiring Fund as they currently hold of the Target Fund with an aggregate net asset value equal to the aggregate net asset value of Target Fund shares owned immediately prior to the Reorganization.

**Background and Reasons for the Reorganization** 

Matthews recognized that the Funds have identical investment objectives and similar investment strategies, and that shareholders of the Target Fund could benefit from the broader geographic investment universe and range of investment opportunities of the Acquiring Fund. As a result, Matthews determined it prudent to recommend the Reorganization to combine the Target Fund with the Acquiring Fund, given the overlap in their investment mandates. Further, Matthews believes that shareholders of each Fund could benefit from potential operating efficiencies and economies of scale that may be achieved by combining the Funds' assets in the Reorganization, than by continuing to operate the Funds separately. Matthews further believes that it is in the best interests of the Target Fund to combine the Target Fund's assets with a Fund with a current lower overall expense ratio.

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##### [**Table of Contents**](#toc)
The Acquiring Fund, following completion of the Reorganization, may be referred to as the "Combined Fund" in this Combined Prospectus/Information Statement. It is anticipated that the total annual operating expense ratio for the Combined Fund will be lower than the current total annual operating expense ratio for the Target Fund. Matthews believes that continuing to operate the Target Fund as currently constituted is not in the best interests of the Target Fund.

In approving the Reorganization, the Board of Trustees, including the Independent Trustees, determined that participation in the Reorganization is in the best interests of the Target Fund and that the interests of the Target Fund's shareholders will not be diluted as a result of the Reorganization. The Board of Trustees considered the Reorganization proposal at meetings held on August 27-28, 2025 and on September 29, 2025, and the entire Board of Trustees, including the Independent Trustees, unanimously approved the Reorganization. The approval determinations were made on the basis of each Trustee's judgment after consideration of all of the factors taken as a whole, though individual Trustees may have placed different weight on various factors and assigned different degrees of materiality to various conclusions.

The factors considered by the Board of Trustees with regard to the Reorganization include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the investment objective of the Target Fund is identical to the investment objective of the
Acquiring Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the principal investment strategies of the Target Fund are similar to those of the Acquiring
Fund. The Board of Trustees considered the principal differences in investment strategies between the Acquiring Fund and the Target Fund, in particular with respect to geographic focus. See "Summary—Investment Objectives and Principal
Investment Strategies."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the Target Fund has a narrower geographic universe, limited by its focus on China as compared to
the Acquiring Fund. The Board of Trustees considered the possibility that shareholders of the Target Fund may benefit from a more geographically diverse investment strategy with a broader range of investment opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The possibility that the Combined Fund is more likely to achieve further operating efficiencies and economies
of scale from its larger net asset size compared to the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that each Fund has the same investment advisory contract and that the advisory fee for both Funds is
the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The expectation that the Combined Fund will have total annual operating expenses below those of the Target
Fund. See "Summary – Fees and Expenses."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that a portion of the portfolio holdings of the Target Fund would be sold before the Reorganization
would be completed or would not continue to be held by the Acquiring Fund after completion of the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the portfolio managers who will manage the Combined Fund will not be the same as the portfolio
managers for the Target Fund. The Trustees noted, however, that each member of the investment team is supported by and consults with other members of the investment team. The Trustees considered that Matthews will continue to serve as the investment
adviser of the Combined Fund after the Reorganization. See "Comparison of the Funds—Management of the Funds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The relative performance history of each Fund over different time periods compared with each other and the
fact that the Acquiring Fund has had better historical performance over certain periods compared with the Target Fund, while the Target Fund has had better historical performance over certain other periods. The Trustees also considered that the
Acquiring Fund has lower historic volatility than the Target Fund. While not predictive of future results, the Board of Trustees also

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considered certain data with respect to the performance of each Fund as compared to the performance of its relevant peer group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The relative size of the Target Fund and the Acquiring Fund, and the prospects for further growth and
long-term viability of the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that it is currently anticipated that there will be no gain or loss recognized by shareholders for
federal income tax purposes as a result of the Reorganization because the Reorganization is expected to be a tax-free transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the aggregate net asset value of the shares that shareholders of the Target Fund will receive in
the Reorganization will equal the aggregate net asset value of the shares that shareholders of the Target Fund own immediately prior to the Reorganization, and that shareholders of the Target Fund will not be diluted as a result of the
Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that shareholders who do not want to participate in the Reorganization are able to redeem their
shares of the Target Fund prior to the closing of the Reorganization without the imposition of any redemption fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the costs of the Reorganization will be allocated between Matthews and the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The possible alternatives to the Reorganization, including the potential liquidation of the Target Fund.

The Board also considered factors that may not weigh in favor of the Reorganization, which include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that brokerage commissions and other portfolio transaction costs associated with the disposition of
certain of the holdings of the Target Fund in preparation for the Reorganization will be borne by the Target Fund and indirectly by shareholders of the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The possibility that the Reorganization may result in some benefits and economies of scale for Matthews, which
may include, for example, a reduction in the level of operational expenses incurred for administrative, compliance and portfolio management services as a result of the elimination of the Target Fund as a separate series of the Trust.

**Investment Objectives and Principal Investment Strategies** 

<u>Comparison of the Target Fund and the Acquiring Fund</u> 

***Investment Objectives.*** The investment objectives of the Target Fund and the Acquiring Fund are identical, to seek total return with an emphasis on providing current income. The Combined Fund will pursue the same investment objective. The investment objective of each Fund is fundamental. This means that it cannot be changed without a vote of a majority of the voting securities of each respective Fund.

***Principal Investment Strategies.*** The Acquiring Fund currently seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. Asia consists of all countries and markets in Asia, and includes developed, emerging, and frontier countries and markets in the Asian region.

The Target Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in China, which also includes China's administrative and other districts, such as Hong Kong.

Each Fund's principal investment strategies may be changed without shareholder approval.

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The Combined Fund's principal investment strategies will be those of the Acquiring Fund.

***Comparison.*** Both the Target Fund and the Acquiring Fund invest primarily in dividend-paying equity securities. Both Funds may also invest in convertible debt and equity securities of any maturity and quality, including those that are unrated and those that are rated below investment grade. The Target Fund and the Acquiring Fund seek to provide a level of current income that is higher than the yield generally available in the equity markets of China and Asia, respectively, over the long-term.

The principal difference between the Funds is the geographic focus of each Fund's investment universe. The Target Fund focuses its investments on China and its administrative and other districts, including Hong Kong, while the Acquiring Fund has a larger investment universe focused on Asia, which consists of all countries and markets in Asia and includes developed, emerging, and frontier countries and markets in the Asian region. An additional difference between the Funds is that the Target Fund typically distributes realized income semi-annually in June and December, while the Acquiring Fund typically distributes realized income quarterly in March, June, September and December. Another difference between the Funds is that the Target Fund will typically invest in small or medium size companies while the Acquiring Fund will typically invest in medium or large size companies, but both Funds may invest in companies of any size.

Reflecting the differences in geographic focus, the Acquiring Fund and the Target Fund have different benchmark indexes. The Acquiring Fund's current benchmark index is the MSCI All Country Asia Pacific Index, a free float-adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand. The Target Fund's benchmark index is the MSCI China Index, a free float-adjusted market capitalization-weighted index of Chinese equities that includes China A shares, H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (*e.g.*, American Depositary Receipts). For a discussion of the principal investment risks associated with an investment in the Acquiring Fund and, therefore, the Combined Fund, please see "Comparison of the Funds—Principal Risks" below.

While Matthews anticipates the Acquiring Fund will retain a portion of the Target Fund's holdings following the closing of the Reorganization, Matthews does anticipate that a material portion of the Target Fund's holdings will be sold in preparation for the Reorganization. The extent of these sales is primarily because certain of the current holdings of the Target Fund are determined not to be appropriate for the Acquiring Fund. Matthews anticipates that the proceeds from such sales will be reinvested in assets that are consistent with the Acquiring Fund's investment strategy. During this period, the Target Fund may deviate from its principal investment strategies. Matthews has estimated that the brokerage commission and other portfolio transaction costs relating to the realignment of the Target Fund's portfolio prior to the Reorganization will be approximately $135,000 or, based on shares outstanding as of October 31, 2025, $0.02 per share. These costs will be borne by the Target Fund and indirectly by the Target Fund's shareholders (including Target Fund shareholders who receive shares of the Acquiring Fund in the Reorganization).

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Some of the similarities and differences of the principal and other significant investment strategies of the Funds are described in the chart below.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Target Fund** | **Acquiring Fund** |
| &nbsp;&nbsp;&nbsp;&nbsp; ● Invests at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in China. China also includes its administrative and other districts, such as Hong Kong.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● Invests at least 80% of its net assets, which includes borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. Asia consists of all countries and markets in Asia, and includes developed, emerging, and frontier countries and markets in the Asian region. Certain emerging market countries may also be classified as "frontier" market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● May invest in convertible debt and equity securities of any maturity and quality, including those that are unrated, or would be below investment grade (referred to as "junk bonds") if rated, of companies located in China.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● May invest in convertible debt and equity securities of any maturity and quality, including those that are unrated, or would be below investment grade (referred to as "junk bonds") if rated, of companies located in Asia.<br>|

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| &nbsp;&nbsp;&nbsp;&nbsp; ● A company or other issuer is considered to be "located" in China, and a security or instrument is deemed to be a Chinese security or instrument, if it has substantial ties to China. Matthews currently makes that determination based primarily on one or more of the following criteria: (A) with respect to a company or issuer, whether (i) it is organized under the laws of China; (ii) it derives at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed, or has at least 50% of its assets located, within China; (iii) it has the primary trading markets for its securities in China; (iv) it has its principal place of business in or is otherwise headquartered in China; or (v) it is a governmental entity or an agency, instrumentality or a political subdivision of China; and (B) with respect to an instrument or issue, whether (i) its issuer is headquartered or organized in China; (ii) it is issued to finance a project that has at least 50% of its assets or operations in China; (iii) it is at least 50% secured or backed by assets located in China; (iv) it is a component of or its issuer is included in the MSCI China Index; or (v) it is denominated in the currency of China and addresses at least one of the other above criteria.<br>● The term "located" and the associated criteria listed above have been defined in such a way that Matthews has latitude in determining whether an issuer should be included within a region or country.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● A company or other issuer is considered to be "located" in a country or a region, and a security or instrument is deemed to be an Asian (or specific country) security or instrument, if it has substantial ties to that country or region. Matthews currently makes that determination based primarily on one or more of the following criteria: (A) with respect to a company or issuer, whether (i) it is organized under the laws of that country or any country in that region; (ii) it derives at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed, or has at least 50% of its assets located, within that country or region; (iii) it has the primary trading markets for its securities in that country or region; (iv) it has its principal place of business in or is otherwise headquartered in that country or region; or (v) it is a governmental entity or an agency, instrumentality or a political subdivision of that country or any country in that region; and (B) with respect to an instrument or issue, whether (i) its issuer is headquartered or organized in that country or region; (ii) it is issued to finance a project that has at least 50% of its assets or operations in that country or region; (iii) it is at least 50% secured or backed by assets located in that country or region; (iv) it is a component of or its issuer is included the MSCI All Country Asia Pacific Index, the Fund's primary benchmark index; or (v) it is denominated in the currency of an Asian country and addresses at least one of the other above criteria.<br>● The term "located" and the associated criteria listed above have been defined in such a way that Matthews has latitude in determining whether an issuer should be included within a region or country.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● May invest in depositary receipts, including American, European and Global Depositary Receipts.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● May invest in depositary receipts, including American, European and Global Depositary Receipts.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● Seeks to provide a level of current income that is higher than the yield generally available in Chinese equity markets over the long term.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● Seeks to provide a level of current income that is higher than the yield generally available in Asian equity markets over the long term.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● Intends to distribute its realized income, if any, regularly (typically semi-annually in June and December).<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● Intends to distribute its realized income, if any, regularly (typically quarterly in March, June, September and December).<br>|

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|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; ● The Fund's objective is total return with an emphasis on providing current income. Total return includes current income (dividends and distributions paid to shareholders) and capital gains (share price appreciation). The Fund measures total return over longer periods.<br>● Because of this objective, under normal circumstances, the Fund primarily invests in companies that exhibit attractive dividend yields and the propensity (in Matthews' judgment) to pay increasing dividends. Matthews believes that in addition to providing current income, growing dividend payments by portfolio companies are an important component supporting capital appreciation.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● The Fund's objective is total return with an emphasis on providing current income. Total return includes current income (dividends and distributions paid to shareholders) and capital gains (share price appreciation). The Fund measures total return over longer periods.<br>● Because of this objective, under normal circumstances, the Fund primarily invests in companies that exhibit attractive dividend yields and the propensity (in Matthews' judgment) to pay increasing dividends. Matthews believes that in addition to providing current income, growing dividend payments by portfolio companies are an important component supporting capital appreciation.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● Matthews expects that the companies in which the Fund invests typically will be of small or medium size, but the Fund may invest in companies of any size. Matthews measures a company's size with respect to fundamental criteria such as, but not limited to, market capitalization, book value, revenues, profits, cash flow, dividends paid and number of employees.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● Matthews expects that the companies in which the Fund invests typically will be of medium or large size, but the Fund may invest in companies of any size. Matthews measures a company's size with respect to fundamental criteria such as, but not limited to, market capitalization, book value, revenues, profits, cash flow, dividends paid and number of employees.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● The implementation of the principal investment strategies of the Fund may result in a significant portion of the Fund's assets being invested from time to time in one or more sectors, but the Fund may invest in companies in any sector.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● The implementation of the principal investment strategies of the Fund may result in a significant portion of the Fund's assets being invested from time to time in one or more sectors, but the Fund may invest in companies in any sector.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● The Fund may invest in affiliated and unaffiliated ETFs for cash equitization purposes, which allows the Fund to invest in a manner consistent with its investment strategy while managing daily cash flows, including purchases and redemptions by investors.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● The Fund may invest in affiliated and unaffiliated ETFs, including the Matthews Asia Dividend Active ETF, a series of the Trust with a substantially similar investment strategy to the Fund, for cash equitization purposes, which allows the Fund to invest in a manner consistent with its investment strategy while managing daily cash flows, including purchases and redemptions by investors.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; ● The Fund is diversified.<br>| &nbsp;&nbsp;&nbsp;&nbsp; ● The Fund is diversified.<br>|

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***Matthews' Investment Approach***

In seeking to achieve the investment objectives for the Funds, Matthews also employs the investment approach and other principal investment strategies as described below.

Matthews invests primarily in the Asia Pacific region for the Funds, other Matthews Asia funds and other advisory clients with such an investment focus based on its assessment of the future development and growth prospects of companies located in the markets of that region. The Asia Pacific region includes all countries and markets in Asia plus all countries and markets in the Pacific region, including Australia and New Zealand. In addition to the Asia

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Pacific region, Matthews also invests broadly in emerging countries and markets outside the Asia Pacific region on behalf of certain funds and clients.

Matthews researches the fundamental characteristics of individual companies to help to understand the foundation of a company's growth. This may include consideration of non-financial information as part of its investment process, such as governance and sustainability factors, when it believes such information is likely to have a material financial impact on a company's value. Such factors may be used as inputs alongside other factors and may not be determinative on investment decisions of the Funds. Matthews evaluates potential portfolio holdings on the basis of their individual merits, and seeks to invest in companies that it believes are positioned to help a Fund achieve its investment objective.

Matthews has long-term investment goals, and its process aims to identify potential portfolio investments that can be held over an indefinite time horizon. Matthews regularly tests its beliefs and adjusts portfolio holdings in light of prevailing market conditions and other factors, including, among other things, economic, political or market events (e.g., changes in credit conditions or military action), changes in relative valuation (of a company's growth prospects relative to other issuers), liquidity requirements and corporate governance.

<u>Matthews Seeks to Invest in the Long-Term Growth Potential of Asian and Emerging Markets</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews believes that the countries in which the Funds invest will continue to benefit from economic
development over longer investment horizons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews seeks to invest in those companies that it believes will benefit from the long-term economic
evolution of Asian and emerging markets, and that will help each Fund achieve its investment objective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews generally does not hedge currency risks.

<u>Matthews Is an Active Investor with Strong Convictions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews uses an active approach to investment management (rather than relying on passive or index strategies)
because it believes that the current composition of the stock markets and indices may not be the best guide to the most successful industries and companies of the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews invests in individual companies based on fundamental analysis that aims to develop an understanding
of a company's long-term business prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews monitors the composition of benchmark indices but is not constrained by their composition or
weightings, and constructs portfolios independently of indices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews believes that investors benefit in the long term when the Funds are fully invested, subject to market
conditions and a Fund's particular investment objective.

<u>Matthews Is a Fundamental Investor</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews believes that fundamental investing is based on identifying, analyzing and understanding basic
information about a company or security. These factors may include matters such as balance sheet information; number of employees; size and stability of cash flow; management's depth, adaptability and integrity; product lines; marketing
strategies; corporate governance; and financial health.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews may also consider factors such as:

- Management: Does management exhibit integrity? Is there a strong corporate governance culture? What is the business strategy? Does management exhibit the ability to adapt to change and handle risk appropriately?

- Evolution of Industry: Can company growth be sustained as the industry and environment evolve?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Following this fundamental analysis, Matthews seeks to invest in companies and securities that it believes are
positioned to help a Fund achieve its investment objective.

<u>Matthews Focuses on Individual Companies</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews develops views about the course of growth in the region over the long term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews then seeks to combine these beliefs with its analysis of individual companies and their fundamental
characteristics.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Matthews then seeks to invest in companies and securities that it believes are positioned to help a Fund
achieve its investment objective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Target Fund and the Acquiring Fund may invest in companies of any equity market capitalization (the number
of shares outstanding times the market price per share). For the Target Fund and the Acquiring Fund, a company's size (including its market capitalization) is not a primary consideration for Matthews when it decides whether to include that
company's securities in one or more of the Funds.

**Fees and Expenses** 

Following the completion of the Reorganization, holders of Target Fund Institutional Class shares will receive Acquiring Fund Institutional Class shares and holders of Target Fund Investor Class shares will receive Acquiring Fund Investor Class shares.

**Fee Table** 

<u>Fee Table of the Target Fund, the Acquiring Fund and the Pro Forma Combined Fund</u> 

(as of December 31, 2024 (unaudited))

The fee table below describes the fees and expenses that you may pay if you buy and hold shares of the Funds. The percentages presented in the fee table are based on fees and expenses incurred during the 12-month period ended December 31, 2024 for each class of shares of the Funds and estimated pro forma fees and expenses attributable to each class of shares of the Pro Forma Combined Fund for the 12-month period ended December 31, 2024, assuming the Reorganization had taken place at the beginning of the fiscal year. Future fees and expenses may be greater or less than those indicated below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | | **Actual** | **Actual** | |
| | **<u>Target Fund</u>**<br>**(Matthews<br>China<br>Dividend<br>Fund)** | **<u>Acquiring</u><br> <u>Fund</u>**<br> **(Matthews<br>Asia**<br> **Dividend<br>Fund)** | <br>**<u>Pro Forma<br>Combined<br>Fund</u>** | **<u>Target</u>**<br> **<u>Fund</u>**<br> **(Matthews<br>China<br>Dividend<br>Fund)** | **<u>Acquiring<br>Fund</u>**<br> **(Matthews<br>Asia**<br> **Dividend<br>Fund)** | <br>**Pro Forma<br>Combined<br>Fund** |
| | **Institutional<br>Class** | **Institutional<br>Class** | **Institutional<br>Class** | **Investor Class** | **Investor**<br> **Class** | **Investor**<br> **Class** |
| <br>&nbsp;&nbsp;&nbsp;**Shareholder Fees (fees paid directly from your investment)** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Maximum Account Fee on Redemptions (for wire redemptions only) | $9 | $9 | $9 | $9 | $9 | $9 |
| &nbsp;&nbsp;&nbsp;**Annual Fund Operating Expenses (expenses that you pay each year as a percentage of** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**the value of your investment)** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Management Fees | 0.71% | 0.71% | 0.71% | 0.71% | 0.71% | 0.71% |

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|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Service (12b-1) Fees | 0.00% | 0.00% | 0.00% | 0.00% |
| &nbsp;&nbsp;&nbsp; Other Expenses | 0.48% | 0.38% | 0.61% | 0.49% |
| &nbsp;&nbsp;&nbsp; Total Annual Fund Operating Expenses | 1.19% | 1.09% | 1.32% | 1.20% |

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**EXAMPLE:** 

This Example is intended to help you compare the cost of investing in the relevant Fund with the cost of investing in other mutual funds. This Example assumes that you invest $10,000 in the relevant Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Fund also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

<u>Target Fund into Acquiring Fund</u> 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| &nbsp;&nbsp; **Institutional Class** |  |  |  |  |
| &nbsp;&nbsp; Target Fund (Matthews China Dividend Fund) | $121 | $378 | $654 | $1443 |
| &nbsp;&nbsp; Acquiring Fund (Matthews Asia Dividend Fund) | $111 | $347 | $601 | $1329 |
| &nbsp;&nbsp; Pro Forma Combined Fund | $111 | $347 | $601 | $1329 |
| &nbsp;&nbsp; **Investor Class** |  |  |  |  |
| &nbsp;&nbsp; Target Fund (Matthews China Dividend Fund) | $134 | $418 | $723 | $1590 |
| &nbsp;&nbsp; Acquiring Fund (Matthews Asia Dividend Fund) | $122 | $381 | $660 | $1455 |
| &nbsp;&nbsp; Pro Forma Combined Fund | $122 | $381 | $660 | $1455 |

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**Portfolio Turnover** 

Each Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example of fund expenses, affect the Fund's performance. During the most recent fiscal year, the Target Fund's portfolio turnover rate was 76% of the average value of its portfolio. For the same period, the Acquiring Fund's portfolio turnover rate was 17%.

**Federal Tax Consequences** 

The Reorganization is expected to qualify as a tax-free "reorganization" for U.S. federal income tax purposes. If the Reorganization so qualifies, in general, neither the Target Fund nor the Acquiring Fund will recognize gain or loss for U.S. federal income tax purposes in the transactions contemplated by the Reorganization except for any gain or loss that may be required to be recognized as a result of the closing of the tax year of the Target Fund or upon the transfer of an asset regardless of whether such transfer would otherwise be a non-recognition transaction under the Internal Revenue Code of 1986, as amended (the "Code"). As a condition to the closing of the Reorganization, the Trust, on behalf of the Acquiring Fund, and the Trust, on behalf of the Target Fund, will receive an opinion from Paul Hastings LLP to that effect. An opinion of counsel is not binding on the Internal Revenue Service ("IRS") or any court and thus does not preclude the IRS from asserting, or a court from rendering, a contrary position.

For more information about the U.S. federal income tax consequences of the Reorganization, see "Material U.S. Federal Income Tax Consequences of the Reorganization."

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**Purchase, Redemption and Valuation of Shares** 

Procedures for the purchase, redemption and valuation of shares of the Target Fund and the Acquiring Fund are identical.

**COMPARISON OF THE FUNDS** 

**Principal Investment Risks** 

The Target Fund and the Acquiring Fund are subject to similar principal investment risks associated with an investment in the relevant Fund. The principal risks of each Fund are set out in the table below.

Although the Target Fund invests almost exclusively in companies located in China, the Acquiring Fund also is subject to country concentration risk, which in the past has included both China and Japan but that concentration in China has been to a much lesser extent than the Target Fund. The Acquiring Fund, unlike the Target Fund, therefore, is subject to the risks of having a concentration in Japan.

Both Funds have from time to time concentrated their assets in one or more economic sectors (which means investments with a total value approaching or exceeding 25% of a Fund's total assets). The Target Fund has concentrated its investments in the consumer discretionary sector, but the Acquiring Fund has concentrated its investments in the financial sector. More information about the Acquiring Fund's financial sector risk is provided below.

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| | | |
|:---|:---|:---|
|  | **Target Fund**<br> **(Matthews China Dividend Fund)** | **Acquiring Fund**<br> **(Matthews Asia Dividend Fund)** |
|  | &nbsp;&nbsp;&nbsp; ◾<br>Active Management Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Active Management Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Consumer Discretionary Sector Risk<br>| |
|  | | &nbsp;&nbsp;&nbsp; ◾<br>Country Concentration Risk<br>|
| &nbsp;&nbsp;&nbsp; Principal Risks | &nbsp;&nbsp;&nbsp; ◾<br>Currency Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Currency Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Cybersecurity Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Cybersecurity Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Convertible Securities Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Convertible Securities Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Depositary Receipts Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Depositary Receipts Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Dividend-Paying Securities Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Dividend-Paying Securities Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Equity Securities Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Equity Securities Risk<br>|
|  | | &nbsp;&nbsp;&nbsp; ◾<br>Financial Sector Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Geopolitical Events Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Geopolitical Events Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Political, Social and Economic Risks of Investing in Asia <br>(particularly China and Hong Kong)<br>| &nbsp;&nbsp;&nbsp; ◾<br>Political, Social and Economic Risks of Investing in Asia<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with China and Hong Kong<br>| &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with China and Hong Kong<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Emerging Markets<br>| &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Emerging and Frontier Markets<br>|
|  | | &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Japan<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Medium-Size Companies<br>| &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Medium-Size Companies<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Smaller Companies<br>| &nbsp;&nbsp;&nbsp; ◾<br>Risks Associated with Smaller Companies<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Underlying ETF Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Underlying ETF Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>U.S. Trade Policy Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>U.S. Trade Policy Risk<br>|
|  | &nbsp;&nbsp;&nbsp; ◾<br>Volatility Risk<br>| &nbsp;&nbsp;&nbsp; ◾<br>Volatility Risk<br>|

---

The following are the principal investment risks associated with the Acquiring Fund and, therefore, also with the Combined Fund. You will find additional descriptions of specific risks in the Prospectus and Statement of Additional Information for the Acquiring Fund.

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**Active Management Risk.** The Fund is actively managed by Matthews. There is the risk that Matthews may select securities that underperform the relevant stock market(s), the Fund's benchmark index or other funds with similar investment objectives and investment strategies.

**Country Concentration Risk.** The Fund may invest a significant portion of its assets in the securities of issuers located in a single country. An investment in the Fund therefore may entail greater risk than an investment in a fund that does not concentrate its investments in a single or small number of countries because these securities may be more sensitive to adverse social, political, economic or regulatory developments affecting that country or countries. As a result, events affecting a single or small number of countries may have a significant and potentially adverse impact on the Fund's investments, and the Fund's performance may be more volatile than that of funds that invest globally. The Fund has concentrated or may concentrate its investments in China and Japan.

**Currency Risk.** When the Fund conducts securities transactions in a foreign currency, there is the risk of the value of the foreign currency increasing or decreasing against the value of the U.S. dollar. The value of an investment denominated in a foreign currency will decline in U.S. dollar terms if that currency weakens against the U.S. dollar. While the Fund is permitted to hedge currency risks, Matthews does not anticipate doing so at this time. Additionally, Asian countries may utilize formal or informal currency-exchange controls or "capital controls." Capital controls may impose restrictions on the Fund's ability to repatriate investments or income. Such controls may also affect the value of the Fund's holdings.

**Cybersecurity Risk.** With the increased use of technologies such as the internet to conduct business, the Fund is susceptible to operational, information security, and related risks. Cyber incidents affecting the Fund or its service providers may cause disruptions and impact business operations, potentially resulting in financial losses, interference with the Fund's ability to calculate its NAV, impediments to trading, the inability of shareholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs.

**Depositary Receipts Risk.** Although depositary receipts have risks similar to the securities that they represent, they may also involve higher expenses and may trade at a discount (or premium) to the underlying security. In addition, depositary receipts may not pass through voting and other shareholder rights, and may be less liquid than the underlying securities listed on an exchange.

**Dividend-Paying Securities Risk.** The Fund will invest in dividend-paying equity securities. There can be no guarantee that companies that have historically paid dividends will continue to pay them or pay them at the current rates in the future. The prices of dividend-paying equity securities (and particularly of those issued by Asian companies) can be highly volatile. In addition, dividend-paying equity securities, in particular those whose market price is closely related to their yield, may exhibit greater sensitivity to interest rate changes. The Fund's investment in such securities may also limit its potential for appreciation during a broad market advance.

**Equity Securities Risk.** Equity securities may include common stock, preferred stock or other securities representing an ownership interest or the right to acquire an ownership interest in an issuer. Equity risk is the risk that stocks and other equity securities generally fluctuate in value more than bonds and may decline in value over short or extended periods. The value of stocks and other equity securities may be affected by changes in an issuer's financial condition, factors that affect a particular industry or industries, or as a result of changes in overall market, economic and political conditions that are not specifically related to a company or industry.

**Financial Sector Risk.** To the extent that the Fund emphasizes, from time to time, investments in a particular sector, the Fund will be subject to a greater degree to the risks particular to that sector, including the sector(s) described below. Market conditions, interest rates, and economic, regulatory, or financial developments could significantly affect a single sector. By focusing its investments in a particular sector, the Fund may face more risks than if it were diversified broadly over numerous sectors. As of December 31, 2024, 20% of the Fund's assets were invested in the financial sector. Financial companies are subject to extensive government regulation and can be significantly affected by the availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, price competition and other sector-specific factors.

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**Geopolitical Events Risk.** The interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, trade disputes, supply chain disruptions, natural disasters, climate change and climate-related events, pandemics, epidemics, terrorism, international conflicts, cybersecurity events, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years may result in market volatility and may have long term effects on the global financial markets.

**Political, Social and Economic Risks of Investing in Asia.** The value of the Fund's assets may be adversely affected by political, economic, social and religious instability; inadequate investor protection; changes in laws or regulations of countries within the Asian region (including countries in which the Fund invests, as well as the broader region); international relations with other nations; natural disasters; corruption and military activity. The economies of many Asian countries differ from the economies of more developed countries in many respects, such as rate of growth, inflation, capital reinvestment, resource self-sufficiency, financial system stability, the national balance of payments position and sensitivity to changes in global trade.

**Risks Associated with China and Hong Kong.** The Chinese government exercises significant control over China's economy through its industrial policies, monetary policy, management of currency exchange rates, and management of the payment of foreign currency-denominated obligations. Changes in these policies could adversely impact affected industries or companies in China. As its consumer class continues to grow, China's domestically oriented industries may be especially sensitive to changes in government policy and investment cycles. The Chinese government has been accused of state-sponsored cyberattacks against foreign governments and companies, and responses to such activity, including sanctions, tariffs or cyberattacks on the Chinese government or Chinese companies, may negatively affect China's economy and Chinese securities issuers. In addition, the current political climate has intensified concerns about trade tariffs or trade disputes with China's major trading partners, including a potential trade war between the U.S. and China. These consequences may trigger a significant reduction in international trade, shortages or oversupply of certain manufactured goods, substantial price increases or decreases of goods, inflationary pressures, and possible failure of individual companies and/or large segments of the foreign export industry in China with a potentially negative impact on the Fund's investments. As demonstrated by Hong Kong protests in recent years over political, economic, and legal freedoms, and the Chinese government's response to them, considerable political uncertainty continues to exist within Hong Kong. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty in the Hong Kong and Chinese markets. If China were to exert its authority so as to alter the economic, political or legal structures or the existing social policy of Hong Kong, investor and business confidence in Hong Kong could be negatively affected and have an adverse effect on the Fund's investments.

**Risks Associated with Emerging and Frontier Markets.** Many Asian countries are considered emerging and/or frontier markets. Such markets are often less stable politically and economically than developed markets such as the U.S., and investing in these markets involves different and greater risks due to, among other factors, different accounting standards; variable quality and reliability of financial information and related audits of companies; higher brokerage costs and thinner trading markets as compared to those in developed countries; the possibility of currency transfer restrictions; and the risk of expropriation, nationalization or other adverse political, economic or social developments. There may be less publicly available information about companies in many Asian countries, and the stock exchanges and brokerage industries in many Asian countries typically do not have the level of government oversight as do those in the U.S. Securities markets of many Asian countries are also substantially smaller, less liquid and more volatile than securities markets in the U.S. Additionally, investors may have substantial difficulties bringing legal actions to enforce or protect investors' rights, which can increase the risks of loss. Frontier markets, a subset of emerging markets, generally have smaller economies and even less mature capital markets than emerging markets. As a result, the risks of investing in emerging market countries are magnified in frontier market countries. Frontier markets are more susceptible to having abrupt changes in currency values, less mature markets and settlement practices, and lower trading volumes, which could lead to greater price volatility and illiquidity.

**Risks Associated with Japan.** The Japanese economy has only recently emerged from a prolonged economic downturn. Since the year 2000, Japan's economic growth rate has remained relatively low. The Japanese economy is characterized by an aging demographic, declining population, large government debt and highly regulated labor

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market. Economic growth in Japan is dependent on domestic consumption, deregulation and consistent government policy. International trade, particularly with the U.S., also impacts growth of the Japanese economy, and adverse economic conditions in the U.S. or other trade partners may affect Japan.

**Risks Associated with Medium-Size Companies.** Medium-size companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

**Risks Associated with Smaller Companies.** Smaller companies may offer substantial opportunities for capital growth; they also involve substantial risks, and investments in smaller companies may be considered speculative. Such companies often have limited product lines, markets or financial resources. Securities of smaller companies may trade less frequently and in lesser volume than more widely held securities and the securities of smaller companies generally are subject to more abrupt or erratic price movements than more widely held or larger, more established companies or the market indices in general.

**Underlying ETF Risk.** Because the Fund may invest in affiliated and unaffiliated ETFs, it is subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of ETF shares held by the Fund may trade at a discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which an ETF trades, which may impact the Fund's ability to sell its shares of an ETF.

**U.S. Trade Policy Risk.** The Trump administration recently enacted and proposed to enact significant new tariffs on imports from certain countries. Additionally, President Trump has directed various federal agencies to further evaluate key aspects of U.S. trade policy and there has been ongoing discussion and commentary regarding potential significant changes to U.S. trade policies, treaties and tariffs. There continues to exist significant uncertainty about the future relationship between the U.S. and other countries with respect to such trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. Any of these factors could depress economic activity and restrict a portfolio company's access to suppliers or customers and have a material adverse effect on its business, financial condition or operations, which in turn could negatively impact the Fund.

**Volatility Risk.** The smaller size and lower levels of liquidity in emerging markets, as well as other factors, may result in changes in the prices of Asian securities that are more volatile than those of companies in more developed regions. This volatility can cause the price of the Fund's shares to go up or down dramatically. Because of this volatility, this Fund is better suited for long-term investors. If the value of the Fund's investments declines, the net asset value of the Fund will decline and investors may lose some or all of the value of their investments.

**Fundamental and Non-Fundamental Investment Restrictions** 

Each of the Funds has identical fundamental investment restrictions. The Funds are not subject to any non-fundamental investment restrictions. The complete list of the fundamental investment restrictions of the Target Fund and the Acquiring Fund is set out in "<u>Appendix A</u> – Fundamental and Non-Fundamental Investment Restrictions." Following the completion of the Reorganization, Matthews will manage the Combined Fund pursuant to the same fundamental investment restrictions as the Target Fund and the Acquiring Fund.

**Performance Information** 

The following bar charts and tables illustrate the risks of investing in each Fund by showing changes in the Fund's performance from calendar year to calendar year and comparing the Fund's average annual returns to those of one or more broad-based securities indices. Fees and expenses incurred at the contract level are not reflected in the bar charts or tables. If these amounts were reflected, returns would be less than those shown. Of course, past performance is not necessarily an indication of how the Fund will perform in the future.

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**Matthews China Dividend Fund (Target Fund)** 

**Annual Total Returns for Years Ended 12/31** 

**Investor Class:**![LOGO](g78426dsp25a.jpg)

During the 10-year period shown in the bar chart, the highest return for a quarter was 19.18% (quarter ended June 30, 2020) and the lowest return for a quarter was -17.71% (quarter ended September 30, 2015).

**Matthews China Dividend Fund (Target Fund)** 

**Average Annual Total Returns** (for periods ended December 31, 2024)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 1 Year | 5 years | 10 Years | Since Inception<br> (10/29/10 Institutional)<br>(11/30/09 Investor) |
| Institutional Class Shares<sup>1</sup> | 15.07% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-1.13% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.62% | 5.23%<sup>2</sup> |
| Investor Class Shares<sup>1</sup> | 14.94% | -1.26% | 4.47% | 6.03% |
| MSCI China Index (reflects no deduction for fees, expenses or taxes) | 19.68% | -3.29% | 2.05% | 2.55%<sup>3</sup> |

---

<sup>1</sup> Returns are exclusive of taxes.

<sup>2</sup> Because the inception date of the Institutional Class is later than that of the Index returns shown, the since-inception performance of the Institutional Class is not directly comparable to the performance of the Index.

<sup>3</sup> Calculated from 11/30/09.

**Matthews Asia Dividend Fund (Acquiring Fund)** 

**Annual Total Returns for Years Ended 12/31** 

**Investor Class:**![LOGO](g78426dsp25b.jpg)

During the 10-year period shown in the bar chart, the highest return for a quarter was 20.37% (quarter ended June 30, 2020) and the lowest return for a quarter was -19.10% (quarter ended March 31, 2020).

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**Matthews Asia Dividend Fund (Acquiring Fund)** 

**Average Annual Total Returns** (for periods ended December 31, 2024)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 1 Years | 5 Years | 10 Years | Since Inception<br> (10/29/10 Institutional)<br>(10/31/06 Investor) |
| Institutional Class Shares<sup>1</sup> | 6.05% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.01% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.58% | 4.17%<sup>2</sup> |
| Investor Class Shares<sup>1</sup> | 5.92% | -0.08% | 3.48% | 6.08% |
| MSCI All Country Asia Pacific Index (reflects no deduction for fees, expenses or taxes) | 10.01% | 3.93% | 5.57% | 4.49%<sup>3</sup> |

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<sup>1</sup> Returns are exclusive of taxes.

<sup>2</sup> Because the inception date of the Institutional Class is later than that of the Index returns shown, the since-inception performance of the Institutional Class is not directly comparable to the performance of the Index.

<sup>3</sup> Calculated from 10/31/06.

Because the Combined Fund will most closely resemble the Acquiring Fund, the Acquiring Fund will be the accounting survivor of the Reorganization. The Combined Fund will also maintain the performance history of the Acquiring Fund at the closing of the Reorganization.

**Management of the Funds** 

Matthews, located at Four Embarcadero Center, Suite 550, San Francisco, CA 94111, serves as the investment adviser to each Fund. Matthews invests the Funds' assets, manages the Funds' business affairs, supervises the Funds' overall day-to-day operations, and provides the personnel needed by the Funds with respect to Matthews' responsibilities. Matthews also furnishes the Funds with office space and provides certain administrative, clerical and shareholder services to the Funds. Matthews is a limited liability company organized under the laws of Delaware, and managed, advised or administered assets in excess of $6.8 billion as of October 31, 2025.

The Target Fund is managed by Sherwood Zhang, CFA, Winnie Chwang, and Andrew Mattock, CFA. Sherwood Zhang is a Portfolio Manager at Matthews. Prior to joining Matthews in 2011, he was an analyst at Passport Capital from 2007 to 2010, where he focused on such industries as property and basic materials in China as well as consumer-related sectors. Before earning his M.B.A. in 2007, Mr. Zhang served as a Senior Treasury Officer for Hang Seng Bank in Shanghai and Hong Kong, and worked as a Foreign Exchange Trader at Shanghai Pudong Development Bank in Shanghai. He received his M.B.A. from the University of Maryland and his Bachelor of Economics in Finance from Shanghai University. Mr. Zhang is fluent in Mandarin and speaks conversational Cantonese. He has been a Portfolio Manager of the Target Fund since 2014.

Winnie Chwang is a Portfolio Manager at Matthews. She joined the firm in 2004 and has built her investment career at the firm. Ms. Chwang earned an M.B.A. from the Haas School of Business and received her B.A. in Economics with a minor in Business Administration from the University of California, Berkeley. She is fluent in Mandarin and conversational in Cantonese. Ms. Chwang has been a Portfolio Manager of the Target Fund since 2022

Andrew Mattock is a Portfolio Manager at Matthews. Prior to joining the firm in 2015, he was a Fund Manager at Henderson Global Investors for 15 years, first in London and then in Singapore, managing Asia Pacific equities. Mr. Mattock holds a Bachelor of Business majoring in Accounting from ACU. He began his career at PricewaterhouseCoopers LLP and qualified as a Chartered Accountant. Mr. Mattock has been a Portfolio Manager of the Target Fund since 2022.

The Acquiring Fund is managed by Sean Taylor and Sojung Park. Sean Taylor is Chief Investment Officer and Portfolio Manager at Matthews. Prior to joining the firm in October 2023, he was Chief Investment Officer APAC, Global Head of Emerging Markets Equity at DWS Group based in Hong Kong since 2013. From 2004 to 2011, he was an Investment Director at GAM Investments, based in London and Dubai. From 1997 to 2004, he was at Societe Generale as Head of International and Emerging Markets. Mr. Taylor has over 30 years of experience, including more than a decade as a CIO. He has overseen a number of emerging markets active strategies, including Latin America, India, China, Brazil, Russia as well as international and global strategies during his career. He received his MBA from Manchester Business School and is a graduate of the Royal Military Academy, Sandhurst. Mr. Taylor has been a Portfolio Manager of the Acquiring Fund since 2025.

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Sojung Park is a Portfolio Manager at Matthews. Prior to joining the firm in 2016, she earned an MBA from the University of Chicago's Booth School of Business. From 2010 to 2013, Ms. Park worked as an Equity Research Analyst at HSBC Securities as primary analyst for mid-cap companies in the Korean financial services sector, and from 2009 to 2010, was an Equity Research Associate at E\*Trade Securities. She received a Bachelor of Business Administration from Seoul National University and is fluent in Korean. Sojung has been a Portfolio Manager of the Acquiring Fund since 2025.

Additional information about the compensation of each Fund's portfolio managers, other accounts managed by such managers and such managers' ownership of securities in each Fund and other funds managed by Matthews can be found in each Fund's SAI.

As discussed below under "Investment Advisory Agreement," following the Reorganization, Matthews will continue to serve as the investment adviser of the Combined Fund. It is anticipated that Mr. Taylor and Ms. Park will be Portfolio Managers of the Combined Fund following the Reorganization.

**Investment Advisory Agreement** 

Pursuant to the Trust's Investment Advisory Agreement with Matthews (the "Advisory Agreement"), each of the Target Fund and the Acquiring Fund pays Matthews a fee equal to 0.75% of its average daily net assets up to $2 billion, 0.6834% of its average daily net assets over $2 billion up to $5 billion, 0.65% of its average daily net assets over $5 billion up to $25 billion, 0.64% of its average daily net assets over $25 billion up to $30 billion, 0.63% of its average daily net assets over $30 billion up to $35 billion, 0.62% of its average daily net assets over $35 billion up to $40 billion, 0.61% of its average daily net assets over $40 billion up to $45 billion, and 0.60% of its average daily net assets over $45 billion. Each Fund pays Matthews a monthly fee at this annual rate using the applicable management fee calculated based on the actual number of days of that month and based on such Fund's average daily net assets for the month.

For the fiscal year ended December 31, 2024, each Fund paid investment management fees to Matthews as follows (as a percentage of average net assets):

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| | |
|:---|:---|
| **Fund** | **Fee** |
|  Target Fund | 0.71% |
|  Acquiring Fund | 0.71% |

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The terms of the Advisory Agreement and the services provided to each Fund under the Advisory Agreement are identical.

A discussion regarding the basis for the Board of Trustees' approval of the Advisory Agreement is available in the most recent annual report to shareholders.

**Service Providers** 

Brown Brothers Harriman & Co., 50 Post Office Square, Boston, MA 02110, is the custodian of the Trust's assets pursuant to a custodian agreement. Under the custodian agreement, Brown Brothers Harriman & Co. (i) maintains a separate account or accounts in the name of each Fund, (ii) holds and transfers portfolio securities on account of each Fund, (iii) accepts receipts and makes disbursements of money on behalf of each Fund, (iv) collects and receives all income and other payments and distributions on account of each Fund's securities, and (v) makes periodic reports to the Board of Trustees concerning each Fund's operations. Although the Trust no longer has in effect a committed line of credit for purposes of funding proceeds for redemptions, a Fund might be able to use an overdraft from the custodian if needed under certain circumstances for temporary or emergency purposes. Any overdraft made available by the custodian would be in the discretion of the custodian, may not be available when needed by a Fund and would likely be more expensive than a comparable borrowing under a formal line of credit.

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BNY Mellon Investment Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, DE 19809, provides transfer agency and dividend disbursing agent services for the Funds. As part of these services, BNY Mellon maintains records pertaining to the sale, redemption and transfer of each Fund's shares and distributes each Fund's cash distributions to shareholders.

PricewaterhouseCoopers LLP, 405 Howard Street, Suite 600, San Francisco, CA 94105, serves as the independent registered public accounting firm of the Trust. The firm provides audit services and assistance and consultation with respect to regulatory filings with the Securities and Exchange Commission (the "SEC"). The books of each Fund will be audited at least once each year by PricewaterhouseCoopers LLP.

Paul Hastings LLP, 101 California Street, 48th Floor, San Francisco, CA 94111, serves as counsel to the Trust.

***Combined Fund.*** Each Fund currently uses the same service providers and it is anticipated that the Combined Fund will continue to use those service providers.

**Rule 12b-1 Plan** 

The Trust's Rule 12b-1 Plan (the "Plan") is inactive. The Plan authorizes the use of the Funds' assets to compensate parties that provide distribution assistance or shareholder services, including, but not limited to, printing and distributing prospectuses to persons other than shareholders, printing and distributing advertising and sales literature and reports to shareholders used in connection with selling shares of the Funds, and furnishing personnel and communications equipment to service shareholder accounts and prospective shareholder inquiries. Although the Plan currently is not active, it is reviewed by the Board annually in case the Board decides to re-activate the Plan. The Plan would not be re-activated without prior notice to shareholders. If the Plan were re-activated, the fee would be up to 0.25% for the Investor Class.

**Distributions** 

The Target Fund seeks to distribute income twice each year, generally in June and December. The Acquiring Fund seeks to distribute income quarterly in March, June, September and December. Any net realized gain from the sale of portfolio securities and net realized gains from foreign currency transactions are distributed at least once each year unless they are used to offset losses carried forward from prior years. All such distributions are reinvested automatically in additional shares at the current NAV, unless you elect to receive them in cash. If you hold the shares directly with the Funds, the manner in which you receive distributions may be changed at any time by writing to the Funds. Additionally, details of distribution-related transactions will be reported on quarterly account statements. You may not receive a separate confirmation statement for these transactions.

Any check for payment of dividends or other distributions that cannot be delivered by the post office or that remains uncashed for a period of more than one year will be reinvested in your account.

Distributions are treated the same for tax purposes, whether received in cash or reinvested. If you buy shares when a Fund has realized but not yet distributed ordinary income or capital gains, you will be "buying a dividend" by paying the full price of the shares and then receiving a portion of the price back in the form of a taxable dividend.

**Taxes** 

The tax implications of an investment in each Fund are generally the same. For more information about the tax implications of investments in the Funds, see each Fund's prospectus under the heading "Taxes."

**Purchase and Redemption of Shares** 

The purchase and redemption procedures employed by the Target Fund and the Acquiring Fund are identical. Please see the Acquiring Fund's prospectus for details regarding how shareholders can purchase or redeem Fund shares.

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**Market Timing Activities** 

The Board of Trustees has approved policies and procedures applicable to most purchases, exchanges and redemptions of Fund shares to discourage market timing by shareholders (the "Market Timing Procedures"). Market timing can harm other shareholders because it may dilute the value of their shares. Market timing may also disrupt the management of a Fund's investment portfolio and cause the targeted Fund to incur costs, which are borne by non-redeeming shareholders.

The Funds, because they invest in overseas securities markets, are particularly vulnerable to market timers who may take advantage of time zone differences between the close of the foreign markets on which each Fund's portfolio securities trade and the U.S. markets that generally determine the time as of which the Fund's NAV is calculated (this is sometimes referred to as "time zone arbitrage"). The Funds also can be the targets of market timers if they invest in small-cap securities and other types of investments that are not frequently traded, including high-yield bonds.

The Funds deem market timing activity to refer to purchase and redemption transactions in shares of the Funds that have the effect of (i) diluting the interests of long-term shareholders; (ii) harming the performance of the Funds by compromising portfolio management strategies or increasing Fund expenses for non-redeeming shareholders; or (iii) otherwise disadvantaging the Funds or their shareholders. Market timing activity includes time zone arbitrage (*i.e.*, seeking to take advantage of differences between the closing times of foreign markets on which portfolio securities of each Fund may trade and the U.S. markets that generally determine when each Fund's NAV is calculated), market cycle trading (*i.e.*, buying on market down days and selling on market up days); and other types of trading strategies.

The Funds and their agents have adopted procedures to assist them in identifying and limiting market timing activity. The Funds have also adopted and implemented a Pricing and Valuation Policy and Procedures, which the Funds believe may reduce the opportunity for certain market timing activity by fair valuing the Funds' portfolios. However, there is no assurance that such practices will eliminate the opportunity for time zone arbitrage or prevent or discourage market timing activity.

The Funds may reject for any reason, or cancel as permitted or required by law, any purchase order or exchange request, including transactions deemed to represent excessive trading, at any time.

<u>Identification of Market Timers</u> 

The Funds have adopted procedures to identify transactions that appear to involve market timing. However, the Funds do not receive information on all transactions in their shares and may not be able to identify market timers. Moreover, investors may elect to invest in a Fund through one or more financial intermediaries that use a combined or omnibus account. Such accounts obscure, and may be used to facilitate, market timing transactions. The Funds or their agents request representations or other assurances related to compliance with the Market Timing Procedures from parties involved in the distribution of Fund shares and administration of shareholder accounts. In addition, the Funds have entered into agreements with intermediaries that permit the Funds to request greater information from intermediaries regarding transactions. These arrangements may assist the Funds in identifying market timing activities. However, the Funds will not always know of, or be able to detect, frequent trading (or other market timing activity).

Omnibus accounts, in which shares are held in the name of an intermediary on behalf of multiple investors, are a common form of holding shares among retirement plans and financial intermediaries such as brokers, investment advisors and third-party administrators. Individual trades in omnibus accounts are often not disclosed to the Funds, making it difficult to determine whether a particular shareholder is engaging in excessive trading. Excessive trading in omnibus accounts may not be detected by the Funds and may increase costs to the Funds and disrupt their portfolio management.

Under policies approved by the Board of Trustees, the Funds may rely on intermediaries to apply the Funds' Market Timing Procedures and, if applicable, their own similar policies. In these cases, the Funds will typically not request or receive individual account data but will rely on the intermediary to monitor trading activity in good faith in accordance with its or the Funds' policies. Reliance on intermediaries increases the risk that excessive trading may go undetected. For some intermediaries, the Funds will generally monitor trading activity at the omnibus account level to attempt to identify disruptive trades. The Funds may request transaction information, as frequently as daily, from any intermediary at any time, and may apply the Funds' Market Timing Procedures to such transactions. The

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Funds may prohibit purchases of Fund shares by an intermediary or request that the intermediary prohibit the purchase of Fund shares by some or all of its clients. There is no assurance that the Funds will request data with sufficient frequency, or that the Funds' analysis of such data will enable them to detect or deter market timing activity effectively.

The Funds (or their agents) attempt to contact shareholders whom the Funds (or their agents) believe have violated the Market Timing Procedures and notify them that they will no longer be permitted to buy (or exchange) shares of the Funds. When a shareholder has purchased shares of the Funds through an intermediary, the Funds may not be able to notify the shareholder of a violation of the Funds' policies or that the Funds have taken steps to address the situation (for example, the Funds may be unable to notify a shareholder that his or her privileges to purchase or exchange shares of the Funds have been terminated). Nonetheless, additional purchase and exchange orders for such investors will not be accepted by the Funds.

Many intermediaries have adopted their own market timing policies. These policies may result in a shareholder's privileges to purchase or exchange the Matthews Asia Funds' shares being terminated or restricted independently of the Matthews Asia Funds. Such actions may be based on other factors or standards that are different than or in addition to the Funds' standards. For additional information, please contact your intermediary.

**Pricing of Fund Shares** 

The price at which the Funds' shares are bought or sold is called the net asset value per share, or NAV. The NAV is computed once daily as of the close of regular trading on the NYSE, generally 4:00 PM Eastern Time, on each day that the exchange is open for trading. In addition to Saturday and Sunday, the NYSE is closed on the days that the following holidays are observed: New Year's Day, Martin Luther King, Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

For more information about the pricing of Fund shares, the calculation of NAV and the valuation of the Funds' securities holdings, please see the Funds' prospectus under the heading "Pricing of Fund Shares."

**Shareholder Rights** 

The Target Fund and the Acquiring Fund are series of the same Delaware statutory trust, with the same governing instruments, including the declaration of trust and bylaws. As a result, there are no material differences between the rights of shareholders under the governing state laws of the Target Fund and the Acquiring Fund. Each share of an Acquiring Fund represents an equal proportionate interest with each other share of the Fund, and each such share is entitled to equal dividend, liquidation, redemption and voting rights, except where class voting is required by the Trust's governing instruments, the Board of Trustees or applicable law, in which case shareholders of a class will have exclusive voting rights on matters affecting only that class. The assets and liabilities of each Fund are legally separate from the assets and liabilities of any other fund that is a series of the Trust. More information about the voting, dividend and other rights associated with shares of the Funds can be found in the Funds' Statement of Additional Information.

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**FINANCIAL HIGHLIGHTS** 

The financial highlights are intended to help you understand each Fund's financial performance for the past five years or, if shorter, the period of that Fund's operations, as indicated by the table.

For the Target Fund, the financial highlights are included in the [Target Fund's prospectus](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/923184/000119312525107556/d888655d485bpos.htm), which is incorporated by reference herein. The financial highlights for the Target Fund have been audited by PricewaterhouseCoopers LLP, whose report, along with the Target Fund's audited annual financial statements, are included in the Target Fund's annual report.

For the Acquiring Fund, the financial highlights are included in the [Acquiring Fund's prospectus](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/923184/000119312525107556/d888655d485bpos.htm), which is incorporated by reference herein. The financial highlights for the Acquiring Fund have been audited by PricewaterhouseCoopers LLP, whose report, along with the Acquiring Fund's audited annual financial statements, are included in the Acquiring Fund's annual report.

Further information about the Funds' performance is contained in the Annual and Semi-Annual Reports. The Funds will furnish, without charge, a copy of their most recent Annual and Semi-annual Report to any shareholder upon request.

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**INFORMATION ABOUT THE REORGANIZATION** 

**General** 

Under the Reorganization Agreement, the Target Fund will transfer its assets and liabilities to the Acquiring Fund in exchange for Institutional Class and Investor Class shares of the Acquiring Fund. For more details about the Reorganization Agreement, see <u>Appendix B</u>— "Form of Agreement and Plan of Reorganization." The shares of the Acquiring Fund issued to the Target Fund will have an aggregate net asset value equal to the aggregate net asset value of the Target Fund's shares outstanding immediately prior to the Reorganization. Upon receipt by the Target Fund of the shares of the Acquiring Fund, the Target Fund will distribute the shares to its shareholders. Then, as soon as practicable after the Closing Date (as defined in <u>Appendix B</u>), the Target Fund will be terminated as a series of the Trust under applicable state law.

Accordingly, as a result of the Reorganization, the Target Fund shareholders will own the same class of shares of the Acquiring Fund having an aggregate net asset value immediately after the Closing Date equal to the aggregate net asset value of that shareholder's Target Fund shares immediately prior to the Closing Date. The Reorganization will not result in dilution of either Fund's net asset value. As a result of the Reorganization, however, a shareholder of the Target Fund or the Acquiring Fund will hold a reduced percentage of ownership in the larger Combined Fund than the shareholder did in the applicable Fund.

**Terms of the Reorganization Agreement** 

Pursuant to the Reorganization Agreement, the Acquiring Fund will acquire the assets of the Target Fund on the Closing Date in consideration for the assumption of all of the Target Fund's liabilities and shares of the Acquiring Fund.

On the Closing Date, the Target Fund will transfer to the Acquiring Fund its assets in exchange solely for Institutional Class and Investor Class shares of the Acquiring Fund that are equal in value to the value of the net assets of the Target Fund transferred to the Acquiring Fund as of the Closing Date, as determined in accordance with the Acquiring Fund's valuation procedures or such other valuation procedures as shall be mutually agreed upon by the Funds, and the assumption by the Acquiring Fund of all of the liabilities of the Target Fund. In order to minimize any potential for undesirable federal income and excise tax consequences in connection with the Reorganization, the Target Fund will distribute on or before the Closing Date all of its undistributed net investment income and net capital gains as of such date.

The Target Fund expects to distribute the shares of the Acquiring Fund to the shareholders of the Target Fund promptly after the Closing Date. Upon distribution of such shares, all outstanding shares of the Target Fund will be redeemed in accordance with Delaware law and the Declaration of Trust of the Trust. Thereafter, the Target Fund will be terminated as a series of the Trust under Delaware law.

Each of the Funds has made certain standard representations and warranties to each other regarding capitalization, status and conduct of business.

Unless waived in accordance with the Reorganization Agreement, the obligations of the Trust, on behalf of the Funds, are conditioned upon, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of any rule, regulation, order, injunction or proceeding preventing or seeking to prevent the
consummation of the transactions contemplated by the Reorganization Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the receipt of all necessary approvals, consents, registrations and exemptions under federal, state and local
laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the truth in all material respects as of the Closing Date of the representations and warranties of the Funds
and performance and compliance in all material respects with the Funds' agreements, obligations and covenants required by the Reorganization Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effectiveness under applicable law of the registration statement of the Trust of which this Combined
Prospectus/Information Statement forms a part and the absence of any stop orders under the Securities Act of 1933, as amended, pertaining thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the declaration of a dividend by the Target Fund to distribute all of its undistributed net investment income
and net capital gains; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the receipt of opinions of counsel relating to, among other things, the tax-free nature of the Reorganization.

The Reorganization Agreement may be terminated or amended by the mutual consent of the Trust, on behalf of the relevant Funds.

**Reasons for the Reorganization** 

In considering and approving the Reorganization at a meeting held on September 29, 2025, the Board discussed the future of the Target Fund and the advantage of reorganizing it into the Acquiring Fund. Among other things, the Board also reviewed, with the assistance of independent legal counsel, the overall proposal for the Reorganization and the principal terms and conditions of the Reorganization Agreement. The factors considered by the Board of Trustees with regard to the Reorganization include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the investment objective of the Target Fund is identical to the investment objective of the
Acquiring Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the principal investment strategies of the Target Fund are similar to those of the Acquiring
Fund. The Board of Trustees considered the principal differences in investment strategies between the Acquiring Fund and the Target Fund, in particular with respect to geographic focus. See "Summary—Investment Objectives and Principal
Investment Strategies."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the Target Fund has a narrower geographic universe, limited by its focus on China as compared to
the Acquiring Fund. The Board of Trustees considered the possibility that shareholders of the Target Fund may benefit from a more geographically diverse investment strategy with a broader range of investment opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The possibility that the Combined Fund is more likely to achieve further operating efficiencies and economies
of scale from its larger net asset size compared to the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that each Fund has the same investment advisory contract and that the advisory fee for both Funds is
the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The expectation that the Combined Fund will have total annual operating expenses below those of the Target
Fund. See "Summary – Fees and Expenses."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The expectation that a portion of the portfolio holdings of the Target Fund would be sold before the
Reorganization would be completed or would not continue to be held by the Acquiring Fund after completion of the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the portfolio managers who will manage the Combined Fund will not be the same portfolio managers
for the Target Fund. The Trustees noted, however, that each member of the investment team is supported by and consults with other members of the investment team. The Trustees considered that Matthews will continue to serve as the investment adviser
of the Combined Fund after the Reorganization. See "Comparison of the Funds—Management of the Funds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The relative performance history of each Fund over different time periods compared with each other and the
fact that the Acquiring Fund has had better historical performance over certain periods

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compared with the Target Fund, while the Target Fund has had better historical performance over certain other periods. The Trustees also considered that the Acquiring Fund has lower historic volatility than the Target Fund. While not predictive of future results, the Board of Trustees also considered certain data with respect to the performance of each Fund as compared to the performance of its relevant peer group. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that it is currently anticipated that there will be no gain or loss recognized by shareholders for
federal income tax purposes as a result of the Reorganization because the Reorganization is expected to be a tax-free transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the aggregate net asset value of the shares that shareholders of the Target Fund will receive in
the Reorganization will equal the aggregate net asset value of the shares that shareholders of the Target Fund own immediately prior to the Reorganization, and that shareholders of the Target Fund will not be diluted as a result of the
Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that shareholders who do not want to participate in the Reorganization are able to redeem their
shares of the Target Fund prior to the closing of the Reorganization without the imposition of any redemption fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that the costs of the Reorganization will be allocated between Matthews and the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The possible alternatives to the Reorganization, including the potential liquidation of the Target Fund which
would result in tax consequences to Target Fund shareholders that are avoided in the Reorganization.

The Board also considered factors that may not weigh in favor of the Reorganization, which include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fact that brokerage commissions and other portfolio transaction costs associated with the disposition of
certain of the holdings of the Target Fund in preparation for the Reorganization will be borne by the Target Fund and indirectly by shareholders of the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The possibility that the Reorganization may result in some benefits and economies of scale for Matthews, which
may include, for example, a reduction in the level of operational expenses incurred for administrative, compliance and portfolio management services as a result of the elimination of the Target Fund as a separate series of the Trust.

Additionally, the Board, which also serves as the Board of the Acquiring Fund, considered that Rule 17a-8 under the 1940 Act permits a merger of affiliated investment companies without a shareholder vote if certain conditions are met as noted below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No fundamental policy of the merging company is materially different from the fundamental policy of the
surviving company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No advisory contract of the merging company is materially different from an advisory contract of the surviving
company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trustees of the merging company who are not interested persons of the merging company and who were elected by
its shareholders will comprise a majority of the trustees of the surviving company who are not interested persons of the surviving company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any distribution fees authorized to be paid by the surviving company pursuant to Rule 12b-1 are no greater than the distribution fees of the merging company.

The Board noted that all of these conditions were met. For these and other reasons, the Board of Trustees unanimously concluded that, based upon the factors and determinations summarized above, consummation of the Reorganization

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is in the best interests of the Target Fund and the interests of the Target Fund's existing shareholders will not be diluted as a result of the Reorganization. The Board of Trustees also determined that the Reorganization is in the best interests of the Acquiring Fund and that the Acquiring Fund's existing shareholders will not be diluted as a result of the Reorganization. The approval determinations were made on the basis of each Trustee's business judgment after consideration of all of the factors taken as a whole, though individual Trustees may have placed different weight on various factors and assigned different degrees of materiality to various conclusions.

**Material U.S. Federal Income Tax Consequences of the Reorganization** 

The following is a general summary of the material anticipated U.S. federal income tax consequences of the Reorganization. The discussion is based upon the Code, Treasury regulations, court decisions, published positions of the IRS and other applicable authorities, all as in effect on the date hereof and all of which are subject to change or differing interpretations (possibly with retroactive effect). This summary does not address all of the U.S. federal income tax consequences that may be relevant to a particular shareholder or to shareholders who may be subject to special treatment under federal income tax laws. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax aspects described below.

It is a condition to the closing of the Reorganization that the Trust, on behalf of each Fund, receive an opinion from Paul Hastings LLP, counsel to each Fund, dated as of the Closing Date, that the Reorganization will be a "reorganization" within the meaning of Section 368(a) of the Code and that the Target Fund and the Acquiring Fund each will be a "party to a reorganization" within the meaning of Section 368(b) of the Code. As a "reorganization" within the meaning of Section 368(b) of the Code, the U.S. federal income tax consequences of the Reorganization can be summarized as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No gain or loss will be recognized by the Target Fund or by the Acquiring Fund upon the transfer of all of the
assets of the Target Fund to the Acquiring Fund solely in exchange for the shares of the Acquiring Fund and the assumption by the Acquiring Fund of all of the liabilities of the Target Fund; or upon the distribution of the shares of the Acquiring
Fund by the Target Fund to its shareholders in the subsequent termination of the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No gain or loss will be recognized by a shareholder of the Target Fund that exchanges all of its shares of the
Target Fund solely for the shares of the Acquiring Fund pursuant to the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The tax basis of the shares of the Acquiring Fund received by a shareholder of the Target Fund pursuant to the
Reorganization (including any fractional share) will be the same as the tax basis of the shares of the Target Fund surrendered in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The holding period of the shares of the Acquiring Fund received by a shareholder of the Target Fund pursuant
to the Reorganization (including any fractional share) will include the holding period of the shares of the Target Fund surrendered in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Acquiring Fund's tax basis in assets of the Target Fund received by the Acquiring Fund pursuant to
the Reorganization will, in each instance, equal the tax basis of such assets in the hands of the Target Fund immediately prior to the Reorganization increased by the amount of gain (or decreased by the amount of loss), if any, recognized by the
Target Fund upon the transfer, and the Acquiring Fund's holding period for such assets will, in each instance, include the period during which the assets were held by the Target Fund except for any assets which may be marked to market for
federal income taxes on the termination of the Target Fund's taxable year or on which gain was recognized upon the transfer to the Acquiring Fund.

The opinion of Paul Hastings LLP relating to the Reorganization will be based on U.S. federal income tax law in effect on the Closing Date. In rendering each opinion, Paul Hastings LLP will also rely upon certain representations of the management of the Acquiring Fund and the Target Fund and assume, among other things, that the Reorganization will be consummated in accordance with the operative documents. Each opinion will not express an opinion as to the tax effects to the Target Fund or the Acquiring Fund from the marking to market of certain categories of assets as of the

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closing of the taxable year of the Target Fund at the time of the Reorganization or as a result of the transfer of certain types of assets. An opinion of counsel is not binding on the IRS or any court.

The Acquiring Fund intends to continue to be taxed under the rules applicable to regulated investment companies as defined in Section 851 of the Code, which are the same rules currently applicable to the Target Fund and its shareholders.

As of December 31, 2024, the Target Fund had a capital loss carryforward position of $84,769,393 that will not expire. As of December 31, 2024, the Acquiring Fund had a capital loss carryforward position of $308,935,845 that will not expire.

**Effect on Shareholders** 

Shareholders will not recognize gain or loss as a result of the Reorganization. Although the Reorganization is expected to be tax-free for shareholders, the Target Fund may make one or more distributions to shareholders prior to the Closing. Any such distribution generally will be taxable as ordinary income or capital gains to shareholders that hold their shares in a taxable account.

As discussed above, a portion of the portfolio securities of the Target Fund are expected to be sold in connection with the Reorganization. The tax impact of any such sales will depend on the difference between the price at which such portfolio securities are sold and the Target Fund's basis in such securities. Any capital gains recognized in such sales on a net basis following the closing of the Reorganization will be distributed, if required, to the shareholders of the Combined Portfolio as capital gain dividends (to the extent of net realized long-term capital gains) and/or ordinary dividends (to the extent of net realized short-term capital gains) during or with respect to the year of sale. Any capital gains recognized in such sales on a net basis prior to the closing of the Reorganization will be distributed, if required, to the shareholders of the Target Fund as capital gain dividends (to the extent of net realized long-term capital gains) and/or ordinary dividends (to the extent of net realized short-term capital gains) during or with respect to the year of sale. Matthews also has advised that neither the Target Fund nor the Combined Fund will dispose of holdings in the Target Fund's or the Combined Fund's portfolios to such an extent that it would adversely affect the tax-free nature of the Reorganization for federal income tax purposes.

As a result of the Reorganization, the Acquiring Fund will succeed to tax attributes, including capital loss carryforwards, if any, of the Target Fund. The capital loss carryforwards of the Funds will be available to offset future capital gains recognized by the Combined Fund, subject to limitations under the Code. These limitations generally apply to a fund that experiences a greater than 50% ownership change as a result of a reorganization. In addition, pursuant to Section 381 of the Code, an acquiring fund generally may not use a target fund's capital loss carryforwards to offset gains recognized during the portion of the year before the date of a reorganization, but may use such capital loss carryforwards to offset post-reorganization gains. Where these limitations apply, the Combined Fund may not be able to use all or a portion of a Fund's capital loss carryforwards in a particular year, the effect of which may be to accelerate the recognition of taxable gains to the Combined Fund and its shareholders post-closing of the Reorganization. The Reorganization is not expected to result in an ownership change of the Funds. In addition, any limitation under Section 381 of the Code is not expected to be material. Thus, it is not anticipated that the limitations on use of a Fund's capital loss carryforwards, if any, would be material.

**Expenses of the Reorganization** 

The costs of the Reorganization, as set forth in the Reorganization Agreement, will be allocated in equal proportion among Matthews, the Target Fund, and the Acquiring Fund. Matthews estimates that these expenses will be approximately $210,000, such that Matthews, the Target Fund, and the Acquiring Fund would bear approximately $70,000, $70,000, and $70,000 of those expenses, respectively.

Expenses incurred in connection with the Reorganization include, but are not limited to: all costs related to the preparation and distribution of materials distributed to the Board of Trustees, including legal and accounting costs; all expenses incurred in connection with the preparation of the Reorganization Agreement and a registration statement on Form N-14; SEC filing fees and legal and audit fees in connection with the Reorganization; the costs of printing and distributing this Combined Prospectus/Information Statement; auditing fees associated with inclusion of each

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Portfolio's financial statements in the Form N-14; tabulation expenses; portfolio transfer taxes (if any); and any similar expenses incurred in connection with the Reorganization.

In addition, Matthews has estimated that approximately 70% of the Target Fund's holdings will be sold in connection with the Reorganization. As of October 31, 2025, the brokerage commission and other transaction costs associated with the pre-Reorganization sales of the Target Fund's portfolio securities are estimated to be approximately $135,000, equal to approximately 0.14% of the Target Fund's assets or, based on shares outstanding as of October 31, 2025, $0.02 per share. These costs will be borne by the Target Fund and indirectly by the Target Fund's shareholders (including Target Fund shareholders who receive shares of the Acquiring Fund in the Reorganization). These sales could result in estimated capital gains of approximately $7 million in total or, based on shares outstanding as of October 31, 2025, $1.06 per share.

All other expenses of each of the Funds shall be paid by the applicable Fund. Such other expenses include, without limitation, brokerage commission and other transaction costs mentioned above, taxes on capital gains and any transfer taxes for foreign securities incurred in connection with the Reorganization.

**Legal Matters** 

Certain legal matters concerning the federal income tax consequences of the Reorganization and issuance of shares of the Acquiring Fund will be passed on by Paul Hastings LLP, counsel to the Trust.

**OTHER INFORMATION** 

**Capitalization** 

The following tables set forth as of October 31, 2025: (i) the unaudited capitalization of the Target Fund, (ii) the unaudited capitalization of the Acquiring Fund, and (iii) the unaudited pro forma combined capitalization of the Combined Fund. The capitalizations are likely to be different when the Reorganization is scheduled to be completed as a result of daily share purchase and redemption activity.

<u>Target Fund (Matthews China Dividend Fund)</u> 

---

| | | |
|:---|:---|:---|
|  | **Institutional Class** | **Investor Class** |
| &nbsp;&nbsp;&nbsp; Net Assets: | $24400281 | $74905568 |
| &nbsp;&nbsp;&nbsp; Shares Outstanding: | 1615017 | 4968845 |
| &nbsp;&nbsp;&nbsp; Net Assets Per Share: | $15.11 | $15.08 |

---

<u>Acquiring Fund (Matthews Asia Dividend Fund)</u> 

---

| | | |
|:---|:---|:---|
|  | **Institutional Class** | **Investor Class** |
| &nbsp;&nbsp;&nbsp; Net Assets: | $294393162 | $266881131 |
| &nbsp;&nbsp;&nbsp; Shares Outstanding: | 17189228 | 15567768 |
| &nbsp;&nbsp;&nbsp; Net Assets Per Share: | $17.13 | $17.14 |

---

<u>Target Fund into Acquiring Fund\*</u> 

<u>Pro Forma Combined Fund</u> 

---

| | | |
|:---|:---|:---|
|  | **Class 1** | **Class 3** |
| &nbsp;&nbsp;&nbsp; Net Assets: | $318793443 | $341786699 |
| &nbsp;&nbsp;&nbsp; Shares Outstanding: | 18610242 | 19940881 |
| &nbsp;&nbsp;&nbsp; Net Assets Per Share: | $17.13 | $17.14 |

---

\* The pro forma figures do not contain any material adjustments other than to reflect the estimated expenses of the Reorganization.

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**Shareholder Information** 

As of October 31, 2025, there were 6,583,862 shares of the Target Fund outstanding. As of such date, the Trustees and officers of the Trust as a group owned less than 1% of the shares of the Target Fund. As of October 31, 2025, no person was known by the Target Fund to own beneficially or of record 5% or more of any class of shares of the Target Fund's shares, except as follows:

---

| | | |
|:---|:---|:---|
| Fund | Account Holder Name and Address | Percentage of Shares |
| Matthews China Dividend Fund – Investor Class | Charles Schwab & Co Inc<br> Fbo Special Custody Acct For Exclusive Benefit Of Customers<br> Attn Mutual Funds<br> 101 Montgomery St<br> San Francisco CA 94104-4122 | 47.91 |
| Matthews China Dividend Fund – Investor Class | National Financial Services Corp<br> (Fbo) Our Customers Attn Mutual Funds Department 4th Fl<br> 499 Washington Blvd Fl 5<br> Jersey City NJ 07310-2010 | 22.67 |
| Matthews China Dividend Fund – Institutional Class | Charles Schwab & Co Inc<br> Special Custody Acct Fbo Customers Attn Mutual Funds<br> 101 Montgomery Street<br> San Francisco CA 94104-4122 | 50.89 |
| Matthews China Dividend Fund – Institutional Class | National Financial Services Corp<br> (Fbo) Our Customers Attn Mutual Funds Department 4th Fl<br> 499 Washington Blvd Fl 5<br> Jersey City NJ 07310-2010 | 19.04 |
| Matthews China Dividend Fund – Institutional Class | Morgan Stanley Smith Barney LLC<br> For The Exclusive Benefit Of Its Customers<br> 1 New York Plaza Fl 12<br> New York NY 10004-1901 | 17.73 |

---

As of October 31, 2025, there were 32,756,996 shares of the Acquiring Fund outstanding. As of such date, the Trustees and officers of the Trust as a group owned less than 1% of the shares of the Acquiring Fund. As of October 31, 2025, no person was known by the Acquiring Fund to own beneficially or of record 5% or more of any class of shares of the Acquiring Fund's shares, except as follows:

---

| | | |
|:---|:---|:---|
| Fund | Account Holder Name and Address | Percentage of <br>Shares |
| Matthews Asia Dividend Fund – Investor Class | Charles Schwab & Co Inc<br> Fbo Special Custody Acct For Exclusive Benefit Of Customers<br> Attn Mutual Funds<br> 101 Montgomery St<br> San Francisco CA 94104-4122 | 37.04 |
| Matthews Asia Dividend Fund – Investor Class | National Financial Services Corp<br> (Fbo) Our Customers Attn Mutual Funds Department 4th Fl<br> 499 Washington Blvd Fl 5<br> Jersey City NJ 07310-2010 | 27.39 |
| Matthews Asia Dividend Fund – Institutional Class | Charles Schwab & Co Inc Special Custody Acct<br> Fbo Customers Attn Mutual Funds<br> 101 Montgomery Street<br> San Francisco CA 94104-4122 | 39.52 |
| Matthews Asia Dividend Fund – Institutional Class | Mac & Co<br> Attn Mutual Fund Ops<br> 500 Grant Street Room 151-1010<br> Pittsburgh PA 15258 | 16.05 |
| Matthews Asia Dividend Fund – Institutional Class | Morgan Stanley Smith Barney LLC<br> For The Exclusive Benefit Of Its Customers<br> 1 New York Plaza Fl 12<br> New York NY 10004-1901 | 15.24 |
| Matthews Asia Dividend Fund – Institutional Class | National Financial Services Corp<br> (Fbo) Our Customers Attn Mutual Funds Department 4th Fl<br> 499 Washington Blvd Fl 5<br> Jersey City NJ 07310-2010 | 9.68 |

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**Shareholder Rights** 

The Target Fund and the Acquiring Fund are series of the same Delaware statutory trust, with the same governing instruments, including the declaration of trust and bylaws. As a result, there are no material differences between the rights of shareholders under the governing state laws of the Target Funds and the Acquiring Funds. Each share of an Acquiring Fund represents an equal proportionate interest with each other share of the Fund, and each such share is entitled to equal dividend, liquidation, redemption and voting rights, except where class voting is required by the Trust's governing instruments, the Board or applicable law, in which case shareholders of a class will have exclusive voting rights on matters affecting only that class. The assets and liabilities of each Fund are legally separate from the assets and liabilities of any other fund that is a series of the Trust. More information about the voting, dividend and other rights associated with shares of the Funds can be found in each Fund's SAI.

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**APPENDIX A** 

**FUNDAMENTAL AND NON-FUNDAMENTAL INVESTMENT RESTRICTIONS** 

The Trust, on behalf of each Fund, has adopted certain fundamental investment restrictions which cannot be changed without approval by a majority of the outstanding voting securities (as defined in the 1940 Act) of that Fund. A majority of the outstanding voting securities of a Fund means the lesser of (a) 67% or more of the voting securities present at a meeting of shareholders, if the holders of more than 50% of the outstanding voting securities of a Fund are present or represented by proxy, or (b) more than 50% of the outstanding voting securities of a Fund. Unless otherwise indicated, all percentage limitations listed below apply to the Funds and apply only at the time of the transaction. Accordingly, if a percentage restriction is adhered to at the time an investment is made, a later increase or decrease in the percentage which results from a relative change in values or from a change in a Fund's total assets will not be considered a violation.

**Fundamental Investment Restrictions** 

Except as otherwise set forth herein and in each Fund's prospectus, the Target Fund and the Acquiring Fund may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Issue senior securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Borrow money, except that each Fund may borrow from banks and enter into reverse repurchase agreements for
temporary purposes in amounts up to one-third of the value of its total assets at the time of such borrowing; or mortgage, pledge, or hypothecate any assets, except in connection with any such borrowing and in
amounts not in excess of the lesser of the dollar amounts borrowed or 10% of the value of the total assets of the Fund at the time of its borrowing. All borrowing will be done from a bank and asset coverage of at least 300% is required. A Fund will
not purchase securities when borrowings exceed 5% of the Fund's total net assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Act as an underwriter of securities, except that, in connection with the disposition of a security, a Fund may
be deemed to be an "underwriter" as that term is defined in the Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Purchase the securities of issuers conducting their principal business activities in the same industry (other
than obligations issued or guaranteed by the U.S. government, its agencies or instrumentalities) if immediately after such purchase the value of a Fund's investments in such industry would exceed 25% of the value of the total assets of the
Fund. This policy does not apply to Matthews Asia Innovators Fund, which concentrates its investments in the science and technology industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Purchase or sell real estate, real estate limited partnership interests, interests in oil, gas and/or mineral
exploration or development programs or leases. This restriction shall not prevent the Funds from investing

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directly or indirectly in portfolio instruments secured by real estate or interests therein or acquiring securities of real estate investment trusts or other issuers that deal in real estate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Make loans, except that this restriction shall not prohibit (a) the purchase and holding of debt
instruments in accordance with a Fund's investment objectives and policies, (b) the lending of portfolio securities, or (c) entry into repurchase agreements with banks or broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Change its diversification status under the 1940 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Purchase or sell commodities or commodity contracts, except that a Fund may purchase or sell currencies, may
enter into futures contracts on securities, currencies, or on indexes of such securities or currencies, or any other financial instruments, and may purchase or sell options on such futures contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Make investments in securities for the purpose of exercising control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Purchase the securities of any one issuer if, immediately after such purchase, the Fund would own more than 10%
of the outstanding voting securities of such issuer.

With respect to policy number 2 related to the restriction on purchasing securities when borrowings exceed 5% of a Fund's total net assets, the Trust excludes from the amount of a Fund's outstanding borrowings the amount of proceeds that are expected to be received from the settlement of securities transactions that are in process and that are intended or designated for repayment of outstanding borrowings.

**Non-Fundamental Investment Restrictions** 

The Funds are not subject to any non-fundamental investment restrictions. Non-fundamental investment restrictions are those that may be changed by the Board of Trustees without shareholder approval.

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**[APPENDIX B](#protx78426_32)** 

**AGREEMENT AND PLAN OF REORGANIZATION** 

**Agreement and Plan of Reorganization** 

THIS AGREEMENT AND PLAN OF REORGANIZATION (this "<u>Agreement</u>"), dated as of December 1, 2025, is entered into by and between the Trust (as defined in paragraph 1), on behalf of the Target Fund (as defined in paragraph 1), a series of the Trust, and the Trust, on behalf of the Acquiring Fund (as defined in paragraph 1), a series of the Trust.

The reorganization contemplated by this Agreement consists of (i) the transfer of all assets of the Target Fund in exchange for the Acquisition Shares (as defined in paragraph 1), (ii) the Acquiring Fund's assumption of all liabilities of the Target Fund, and (iii) the distribution of (a) the Institutional Class Acquisition Shares (as defined in paragraph 1) to the Target Fund Institutional Class shareholders and (b) the Investor Class Acquisition Shares (as defined in paragraph 1) to the Target Fund Investor Class shareholders, in liquidation of the Target Fund, all upon the terms and conditions set forth in this Agreement.

Each of the Target Fund and the Trust acting for itself and on behalf of the Target Fund, and each of the Acquiring Fund and the Trust acting for itself and on behalf of the Acquiring Fund, is acting separately from all of the other parties and their series, and not jointly or jointly and severally with any other party.

This Agreement is adopted as a plan of reorganization, and the reorganization between the Target Fund and the Acquiring Fund contemplated hereunder is intended to qualify as a "reorganization" under Section 368(a) of the United States Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), or any successor provision.

The parties therefore agree as follows:

1. DEFINITIONS.

"<u>Acquiring Fund</u>" means the series of the Trust listed in the column entitled "Acquiring Fund" on Exhibit A.

"<u>Acquiring Fund Prospectus</u>" means, collectively, the prospectus(es) and statement(s) of additional information of the Acquiring Fund, as amended or supplemented from time to time.

"<u>Acquisition Shares</u>" means, collectively, the Institutional Class Acquisition Shares and Investor Class Acquisition Shares.

"<u>Closing</u>" means the time at which the transactions contemplated by paragraph 4.1 is consummated.

"<u>Closing Date</u>" means the date on which the Closing occurs.

"<u>Institutional Class</u> <u>Acquisition Shares</u>" means the Institutional Class shares of the Acquiring Fund to be issued to the Target Fund in exchange for the Institutional Class shares of the Target Fund.

"<u>Investments</u>" means the Target Fund's investments that would be shown on its schedule of investments if such a schedule were prepared as of the close of business on the Valuation Date.

"<u>Investor Class</u> <u>Acquisition Shares</u>" means the Investor Class shares of the Acquiring Fund to be issued to the Target Fund in exchange for the Investor Class shares of the Target Fund.

"<u>Liquidation Date</u>" means the date on which the Target Fund liquidates and distributes the Acquisition Shares to its shareholders of record pursuant to paragraph 2.1.

"<u>Obligations</u>" means all liabilities and obligations of the Target Fund of any kind whatsoever, whether absolute, accrued, contingent or otherwise, in existence on the Closing Date.

"<u>Target Fund</u>" means the series of the Trust listed in the column entitled "Target Fund" on Exhibit A.

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"<u>Target Fund Prospectus</u>" means, collectively, the prospectus(es) or statement(s) of additional information of the Target Fund, as amended or supplemented from time to time.

"<u>Trust</u>" means the entity listed in the column entitled "Trust" on Exhibit A.

"<u>Valuation Date</u>" means the day on which valuation occurs, which will be the same date as the Closing Date.

2. TRANSFER OF ASSETS OF THE TARGET FUND IN EXCHANGE FOR ASSUMPTION OF LIABILITIES AND FOR ISSUANCE OF THE ACQUISITION SHARES AND LIQUIDATION OF THE TARGET FUND.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Subject to the terms and conditions herein set forth and on the basis of the representations and warranties
contained herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Target Fund will transfer and deliver to the Acquiring Fund all its assets, as set forth in paragraph
2.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Acquiring Fund will assume all Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Acquiring Fund will issue and deliver to the Target Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in exchange for the net assets attributable to its Institutional Class shares a number of the
Institutional Class Acquisition Shares (including fractional shares, if any) determined by dividing the value of such net assets, computed in the manner and as of the time and date set forth in paragraph 3.1, by the net asset value of one
Institutional Class Acquisition Share computed in the manner and as of the time and date set forth in paragraph 3.2. Such transactions shall take place at the Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in exchange for the net assets attributable to its Investor Class shares a number of the Investor
Class Acquisition Shares (including fractional shares, if any) determined by dividing the value of such net assets, computed in the manner and as of the time and date set forth in paragraph 3.1, by the net asset value of one Investor
Class Acquisition Share computed in the manner and as of the time and date set forth in paragraph 3.2. Such transactions shall take place at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. The assets of the Target Fund to be acquired by the Acquiring Fund shall consist of all cash, securities,
dividends and interest receivable, receivables for shares sold and all other assets that are owned by the Target Fund on the Closing Date shown as an asset on the books of the Target Fund on the Closing Date. The Acquiring Fund agrees that all
rights to indemnification and all limitations of liability existing in favor of the Target Fund's current and former trustees and officers, acting in their capacities as such shall survive the reorganization, and shall continue in full force
and effect, without any amendment thereto. The Acquiring Fund further agrees that such rights and limitations may be asserted against the Acquiring Fund, its successors or assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. As provided in paragraph 4.4, on the Liquidation Date, the Target Fund will liquidate and distribute pro
rata to its shareholders of record, determined as of the close of business on the Valuation Date, the Acquisition Shares received by the Target Fund pursuant to paragraph 2.1. Such liquidation and distribution will be accomplished by the transfer of
the Acquisition Shares then credited to the account of the Target Fund on the books of the Acquiring Fund to open accounts on the share records of the Acquiring Fund in the names of the Target Fund shareholders and representing the respective pro
rata number of the Acquisition Shares due such shareholders. The Acquiring Fund shall not be obligated to issue certificates representing the Acquisition Shares in connection with such exchange.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. With respect to the Acquisition Shares distributable pursuant to paragraph 2.3 to a Target Fund shareholder
holding a certificate or certificates for shares of the Target Fund, if any, on the Valuation Date, the Target Fund will not permit such shareholder to receive Acquisition Share certificates therefor, to exchange such Acquisition Shares for shares
of other investment companies, to effect an account transfer of such Acquisition Shares or to pledge or redeem such Acquisition Shares until such shareholder has surrendered all his, her or its outstanding certificate(s) for Target Fund shares or,
in the event of lost certificate(s), posted adequate bond.

3. VALUATION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. The value of the Target Fund's assets to be acquired by the Acquiring Fund hereunder shall be the
value of such assets computed as of the close of regular trading on the New York Stock Exchange on the Valuation Date, which value shall reflect the declaration of any dividends, using the valuation procedures set forth in the organizational
documents of the Acquiring Fund and/or the then current Acquiring Fund Prospectus for determining net asset value and shall be certified by the Target Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. For the purpose of paragraph 3.1, the net asset value of an Acquisition Share shall be the net asset value
per share computed as of the close of regular trading on the New York Stock Exchange on the Valuation Date, which value shall reflect the declaration of any dividends, using the valuation procedures set forth in the organizational documents of the
Acquiring Fund and/or the then current Acquiring Fund Prospectus for determining net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. The Acquiring Fund's shares delivered to the Target Fund Shareholders will be delivered at the
applicable net asset value for each share class without the imposition of a sales load, commission, transaction fee or similar fees.

4. CLOSING AND CLOSING DATE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Closing Date shall be on such date as the Acquiring Fund and the Target Fund may agree. The Closing
shall be held at the offices of the Acquiring Fund (or such other place as the parties may agree), at such time as the parties may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. As of the Closing Date, the Target Fund's assets, including all the Target Fund's cash, shall be
delivered by the Target Fund to the custodian for the Acquiring Fund (the " <u>Custodian</u> ") for the account of the Acquiring Fund. All portfolio securities so delivered to be duly endorsed in proper form for transfer in such manner and
condition as to constitute good delivery thereof in accordance with the custom of brokers or, in the case of portfolio securities held in the U.S. Treasury Department's book-entry system or by the Depository Trust Company, Participants Trust
Company or other third party depositories, by transfer to the account of the Custodian in accordance with Rule 17f-4, Rule 17f-5 or Rule 17f-7, as the case may be, under the Investment Company Act of 1940, as amended (the " <u>1940 Act</u> "), and accompanied by all necessary federal and state stock transfer stamps or a check for the
appropriate purchase price thereof. The cash delivered shall be in the form of currency or certified or official bank checks, payable to the order of "Brown Brothers Harriman, custodian for Matthews Asia Dividend Fund."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. In the event that on the Valuation Date (a) the New York Stock Exchange or another primary trading
market for portfolio securities of the Target Fund (each, an " <u>Exchange</u> ") shall be closed to trading or trading thereon shall be restricted, or (b) trading or the reporting of trading on such Exchange or elsewhere shall be
disrupted so that, in the judgment of the board of trustees of the Trust or the authorized officers of the Trust, accurate appraisal of the value of the net assets of the Target Fund or the Acquiring Fund is impracticable, the Valuation Date and the
Closing Date shall be postponed until the first business day after the day on which trading shall have been fully resumed and reporting shall have been restored; provided that if trading shall not be fully resumed and reporting restored within three
business days of the Valuation Date, this Agreement may be terminated by either the Target Fund or the Acquiring Fund upon the giving of written notice to the other party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. As of the Closing, the Target Fund or its transfer agent shall deliver to the Acquiring Fund or its
designated agent a list of the names and addresses of the Target Fund shareholders, the number and class of outstanding shares of the Target Fund owned by each Target Fund shareholder and the number, if any, of such shares represented by an
outstanding share certificate, all as of the close of business on the Valuation Date. As of the Closing Date, the Acquiring Fund will provide to the Target Fund evidence satisfactory to the Target Fund that the Acquisition Shares issuable pursuant
to paragraph 2.1 have been credited to the Target Fund's account on the books of the Acquiring Fund. On the Liquidation Date, the Acquiring Fund will provide to the Target Fund evidence satisfactory to the Target Fund that such Acquisition
Shares have been credited pro rata to open accounts in the names of the Target Fund shareholders as provided in paragraph 2.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. At the Closing, each party shall deliver to the other such bills of sale, instruments of assumption of
liabilities, checks, assignments, stock certificates, receipts or other documents as such other party or its counsel may reasonably request in connection with the transfer of assets, assumption of liabilities and liquidation contemplated by
paragraph 2.

5. REPRESENTATIONS AND WARRANTIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The Target Fund represents and warrants the following to the Acquiring Fund as of the date hereof and agrees
to confirm the continuing accuracy and completeness in all material respects of the following on the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Target Fund is a series of the Trust that is duly organized, validly existing and in good standing under
the laws of its state of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trust is a duly registered investment company classified as a management company of the open-end type, its registration with the Securities and Exchange Commission as an investment company under the 1940 Act is in full force and effect, and the Target Fund is a separate series thereof duly designated
in accordance with the applicable provisions of the organizational documents of the Trust and the 1940 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Target Fund is not in violation in any material respect of any provision of its organizational documents
or of any agreement, indenture, instrument, contract, lease or other undertaking to which the Target Fund is a party or by which the Target Fund is bound, and the execution, delivery and performance of this Agreement will not result in any such
violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Target Fund has no material contracts or other commitments (other than this Agreement and such other
contracts as may be entered into in the ordinary course of its business) that if terminated may result in material liability to the Target Fund or under which (whether or not terminated) any material payments for periods subsequent to the Closing
Date will be due from the Target Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the knowledge of the Target Fund, except as disclosed in writing to the Acquiring Fund, no litigation or
administrative proceeding or investigation of or before any court or governmental body is presently pending or threatened as to the Target Fund, any of its properties or assets, or any person whom the Target Fund may be obligated to indemnify in
connection with such litigation, proceeding or investigation, and the Target Fund is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body that materially and adversely affects its business or
its ability to consummate the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The statement of assets and liabilities, the statement of operations, the statement of changes in net
assets, and the schedule of investments of the Target Fund, as of the last day of and for its most recently completed fiscal year, audited by the Target Fund's independent registered public accounting firm (and, if applicable, an unaudited
statement of assets and

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liabilities, statement of operations, statement of changes in net assets and schedule of investments for any subsequent semiannual period following the most recently completed fiscal year), copies of which have been filed with the Securities and Exchange Commission or furnished to the Acquiring Fund, fairly reflect the financial condition and results of operations of the Target Fund as of such dates and for the periods then ended in accordance with generally accepted accounting principles consistently applied. In addition, the Target Fund has no known liabilities of a material amount, contingent or otherwise, other than those shown on the statements of assets and liabilities referred to above or those incurred in the ordinary course of its business since the last day of the Target Fund's most recently completed fiscal year. No significant deficiency, material weakness, fraud, significant change or other factor that could significantly affect the internal controls of the Target Fund has been disclosed or is required to be disclosed in the Target Fund's reports on Form N-CSR and, to the knowledge of the Target Fund, no such disclosure will be required as of the Closing Date; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Since the last day of the Target Fund's most recently completed fiscal year, there has not been any
material adverse change in the Target Fund's financial condition, assets, liabilities or business (other than changes occurring in the ordinary course of business), or any incurrence by the Target Fund of indebtedness, except as disclosed in
writing to the Acquiring Fund. For the purposes of this subparagraph (g), distributions of net investment income and net realized capital gains, changes in portfolio securities, changes in the market value of portfolio securities and net redemptions
shall be deemed to be in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Target Fund has met the requirements of Subchapter M of the Code for treatment as a "regulated
investment company" within the meaning of Sections 851 and 852 of the Code in respect of each taxable year since the commencement of its operations, and it meets and will continue to meet such requirements at all times through the Closing
Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the Closing Date, all federal, state and other tax returns and reports of the Target Fund required by
law to have been filed by such date (giving effect to extensions) shall have been filed, and all federal, state and other taxes (if any) shown to be due on such returns and reports or on any assessment received shall have been paid, or provisions
shall have been made for the payment thereof. All of the Target Fund's tax liabilities will have been adequately provided for on its books. To the best of the Target Fund's knowledge, it will not have any tax deficiency or liability
asserted against it or question with respect thereto raised by the Internal Revenue Service or by any state or local tax authority, and it will not be under audit by the Internal Revenue Service or by any state or local tax authority for taxes in
excess of those already paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All issued and outstanding shares of the Target Fund are, and at the Closing Date will be, duly and validly
issued and outstanding, fully paid and non-assessable (except as set forth in the most recent Target Fund Prospectus) and will have been issued in compliance with all applicable registration or qualification
requirements of federal and state securities laws. No options, warrants or other rights to subscribe for or purchase, or securities convertible into, any shares of the Target Fund are outstanding, and none will be outstanding on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Target Fund's investment operations from inception to the date hereof have been in compliance in
all material respects with the investment policies and investment restrictions set forth in the Target Fund Prospectus, except as previously disclosed in writing to the Acquiring Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The execution, delivery and performance of this Agreement has been duly authorized by the trustees of the
Target Fund, and this Agreement will constitute the valid and binding obligation of the Target Fund enforceable in accordance with its terms except as the same

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may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and other equitable principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Acquisition Shares to be issued to the Target Fund pursuant to paragraph 2 will not be acquired for the
purpose of making any distribution thereof other than to the Target Fund shareholders as provided in paragraph 2.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) No consent, approval, authorization or order of any court or governmental authority is required for the
consummation by the Target Fund of the transactions contemplated by this Agreement, except such as may be required under the Securities Act of 1933, as amended (the " <u>1933 Act</u> "), the Securities Exchange Act of 1934, as amended (the
" <u>1934 Act</u> "), the 1940 Act and state securities or "Blue Sky" laws (which terms used herein shall include the laws of the District of Columbia and of Puerto Rico);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) On the Closing Date, the Target Fund will have good and marketable title to its assets to be transferred to
the Acquiring Fund pursuant to paragraph 2.1 and will have full right, power and authority to sell, assign, transfer and deliver the Investments and any other of its assets and liabilities to be transferred to the Acquiring Fund pursuant to this
Agreement. At the Closing Date, subject only to the delivery of the Investments and any such other assets and liabilities and payment therefor as contemplated by this Agreement, the Acquiring Fund will acquire good and marketable title thereto and
will acquire the Investments and any such other assets and liabilities subject to no encumbrances, liens or security interests whatsoever and without any restrictions upon the transfer thereof, except as previously disclosed to the Acquiring Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) On the Closing Date, the Target Fund will have sold such of its assets, if any, as are necessary based on
information provided by the Acquiring Fund and contingent on the accuracy of such information to assure that, after giving effect to the acquisition of the assets of the Target Fund pursuant to this Agreement, the Acquiring Fund, if classified as a
"diversified company" within the meaning of Section 5(b)(1) of the 1940 Act, will remain a "diversified company" and in compliance in all material respects with such other investment restrictions as are set forth in the
Acquiring Fund Prospectus, as amended through the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) No registration of any of the Investments would be required if they were, as of the time of such transfer,
the subject of a public distribution by either of the Target Fund or the Acquiring Fund, except as previously disclosed by the Target Fund to the Acquiring Fund; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Trust shall operate the business of the Target Fund in the ordinary course between the date hereof and
the Closing Date, except that the Trust shall complete all measures in respect of the Target Fund prior to the Closing Date to ensure that the reorganization contemplated hereby qualifies as a "reorganization" within the meaning of
Section 368(a) of the Code, regardless of whether such measures are in the ordinary course. It is understood that such ordinary course of business will include the declaration and payment of customary dividends and distributions and any other
dividends and distributions deemed advisable in anticipation of the reorganization contemplated hereby. Notwithstanding anything to the contrary herein, the Trust shall take all appropriate actions necessary in order for the Acquiring Fund and the
Target Fund to receive the opinion provided for in paragraph 9.4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Acquiring Fund represents and warrants the following to the Target Fund as of the date hereof and agrees
to confirm the continuing accuracy and completeness in all material respects of the following on the Closing Date:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust is duly organized, validly existing and in good standing under the laws of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trust is a duly registered investment company classified as a management company of the open-end type, its registration with the Securities and Exchange Commission as an investment company under the 1940 Act is in full force and effect, and the Acquiring Fund is a separate series thereof duly
designated in accordance with the applicable provisions of the organizational documents of the Trust and the 1940 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Closing Date, the registration statement under the 1933 Act with respect to the Acquisition Shares
will, as of the Closing Date, be in full force and effect, no stop order suspending such effectiveness shall have been instituted or, to the knowledge of the Acquiring Fund or the Target Fund, threatened by the Securities and Exchange Commission,
such registration statement will conform in all material respects to the applicable requirements of the 1933 Act and the rules and regulations of the Securities and Exchange Commission thereunder and does not include any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and there are no material contracts to which the
Acquiring Fund is a party that are not referred to in the Acquiring Fund Prospectus or in the registration statement of which it is a part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the Closing Date, the Acquiring Fund will have good and marketable title to its assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Acquiring Fund is not in violation in any material respect of any provisions of its organizational
documents or of any agreement, indenture, instrument, contract, lease or other undertaking to which the Acquiring Fund is a party or by which the Acquiring Fund is bound, and the execution, delivery and performance of this Agreement will not result
in any such violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the knowledge of the Acquiring Fund, except as disclosed in writing to the Target Fund, no litigation or
administrative proceeding or investigation of or before any court or governmental body is presently pending or threatened as to the Acquiring Fund, any of its properties or assets, or any person whom the Acquiring Fund may be obligated to indemnify
in connection with such litigation, proceeding or investigation, and the Acquiring Fund is not a party to or subject to the provisions of any order, decree or judgment of any court or governmental body that materially and adversely affects its
business or its ability to consummate the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The statement of assets and liabilities, the statement of operations, the statement of changes in net
assets, and the schedule of investments of the Acquiring Fund, as of the last day of and for its most recently completed fiscal year, audited by the Acquiring Fund's independent registered public accounting firm (and, if applicable, an
unaudited statement of assets and liabilities, statement of operations, statement of changes in net assets and schedule of investments for any subsequent semiannual period following the most recently completed fiscal year), copies of which have been
furnished to the Target Fund, fairly reflect the financial condition and results of operations of the Acquiring Fund as of such dates and for the periods then ended in accordance with generally accepted accounting principles consistently applied,
and the Acquiring Fund has no known liabilities of a material amount, contingent or otherwise, other than those shown on the statements of assets and liabilities referred to above or those incurred in the ordinary course of its business since the
last day of the Acquiring Fund's most recently completed fiscal year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Since the last day of the Acquiring Fund's most recently completed fiscal year, there has not been any
material adverse change in the Acquiring Fund's financial condition, assets, liabilities or business (other than changes occurring in the ordinary course of business), or

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any incurrence by the Acquiring Fund of indebtedness, except as disclosed in writing to the Target Fund. For the purposes of this subparagraph (h), any distributions of net investment income and net realized capital gains, changes in portfolio securities, changes in the market value of portfolio securities and net redemptions shall be deemed to be in the ordinary course of business; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Acquiring Fund has met the requirements of Subchapter M of the Code for treatment as a "regulated
investment company" within the meaning of Sections 851 and 852 of the Code in respect of each taxable year since the commencement of operations, and it meets and will continue to meet such requirements at all times through the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) As of the Closing Date, all federal, state and other tax returns and reports of the Acquiring Fund required
by law to have been filed by such date (giving effect to extensions) shall have been filed, and all federal, state and other taxes (if any) shown to be due on such returns and reports or any assessments received shall have been paid, or provisions
shall have been made for the payment thereof. All of the Acquiring Fund's tax liabilities will have been adequately provided for on its books. To the best of the Acquiring Fund's knowledge, it will not have any tax deficiency or
liability asserted against it or question with respect thereto raised by the Internal Revenue Service or by any state or local tax authority, and it will not be under audit by the Internal Revenue Service or by any state or local tax authority for
taxes in excess of those already paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All issued and outstanding shares of the Acquiring Fund are, and at the Closing Date will be, duly and
validly issued and outstanding, fully paid and non-assessable (except as set forth in the Acquiring Fund Prospectus) and will have been issued in compliance with all applicable registration or qualification
requirements of federal and state securities laws. No options, warrants or other rights to subscribe for or purchase, or securities convertible into, any shares of common stock of the Acquiring Fund are outstanding, and none will be outstanding on
the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Acquiring Fund's investment operations from inception to the date hereof have been in compliance
in all material respects with the investment policies and investment restrictions set forth in the Acquiring Fund Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The execution, delivery and performance of this Agreement have been duly authorized by all necessary action
on the part of the Acquiring Fund, and this Agreement constitutes the valid and binding obligation of the Acquiring Fund enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors' rights generally and other equitable principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Acquisition Shares to be issued and delivered to the Target Fund pursuant to the terms of this Agreement
will at the Closing Date have been duly authorized and, when so issued and delivered, will be duly and validly issued shares in the Acquiring Fund, and will be fully paid and non-assessable (except as set
forth in the Acquiring Fund Prospectus), and no shareholder of the Acquiring Fund will have any preemptive right of subscription or purchase in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) No consent, approval, authorization or order of any court or governmental authority is required for the
consummation by the Acquiring Fund of the transactions contemplated by this Agreement, except such as may be required under the 1933 Act, the 1934 Act, the 1940 Act and state securities or "Blue Sky" laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Trust shall operate the business of the Acquiring Fund in the ordinary course between the date hereof
and the Closing Date, except that the Trust shall complete all measures in respect of the Acquiring Fund prior to the Closing Date to ensure that the reorganization

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contemplated hereby qualifies as a "reorganization" within the meaning of Section 368(a) of the Code, regardless of whether such measures are in the ordinary course. It is understood that such ordinary course of business will include the declaration and payment of customary dividends and distributions and any other dividends and distributions deemed advisable in anticipation of the reorganization contemplated hereby. Notwithstanding anything to the contrary herein, the Trust shall take all appropriate actions necessary in order for the Acquiring Fund and the Target Fund to receive the opinion provided for in paragraph 9.4 hereof. <br>

6. COVENANTS OF THE TARGET FUND AND THE ACQUIRING FUND.

Each of the Target Fund and the Acquiring Fund hereby covenants and agrees with the other as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. The Acquiring Fund and the Target Fund will each operate its business in the ordinary course between the
date hereof and the Closing Date, it being understood that such ordinary course of business will include regular and customary periodic dividends and distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Acquiring Fund will advise the Target Fund promptly if at any time prior to the Closing Date the assets
of the Target Fund include any securities that the Acquiring Fund is not permitted to acquire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Subject to the provisions of this Agreement, the Target Fund and the Acquiring Fund will each take, or cause
to be taken, all actions, and do or cause to be done, all things reasonably necessary, proper or advisable to cause the conditions to the other party's obligations to consummate the transactions contemplated hereby to be met or fulfilled and
otherwise to consummate and make effective such transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. The Acquiring Fund will use all reasonable efforts to obtain the approvals and authorizations required by
the 1933 Act, the 1940 Act and such state securities or "Blue Sky" laws as it may deem appropriate in order to continue its operations after the Closing Date.

7. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE TARGET FUND.

The obligation of the Target Fund to consummate the transactions provided for herein shall be subject, at its election, to the performance by the Acquiring Fund of all the obligations to be performed by it hereunder on or before the Closing Date and, in addition thereto, to the following further conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The Acquiring Fund shall have delivered to the Target Fund a certificate executed in its name by its
President or a Vice President and its Treasurer or an Assistant Treasurer, in form and substance satisfactory to the Target Fund and dated as of the Closing Date, to the effect that the representations and warranties of the Acquiring Fund made in
this Agreement are true and correct at and as of the Closing Date, except as they may be affected by the transactions contemplated by this Agreement, and that the Acquiring Fund has complied with all the covenants and agreements and satisfied all of
the conditions on its part to be performed or satisfied under this Agreement at or prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. The Target Fund shall have received a certificate from an officer of the Acquiring Fund, dated the Closing
Date and in a form satisfactory to the Target Fund, to the following effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust is duly organized and validly existing under the laws of its state of organization and has power
to own all of its properties and assets and to carry on its business as presently conducted, and the Acquiring Fund is a separate series thereof duly constituted in accordance with the applicable provisions of the 1940 Act and the organizational
documents of the Trust;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement has been duly authorized, executed and delivered on behalf of the Acquiring Fund and,
assuming the due authorization, execution and delivery of this Agreement by the Target Fund, is the valid and binding obligation of the Acquiring Fund enforceable against the Acquiring Fund in accordance with its terms, except as the same may be
limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights generally and other equitable principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Acquiring Fund has the power to assume the liabilities to be assumed by it hereunder, and, upon
consummation of the transactions contemplated hereby, the Acquiring Fund will have duly assumed such liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Acquisition Shares to be issued for transfer to the Target Fund shareholders as provided by this
Agreement are duly authorized and upon such transfer and delivery will be validly issued and outstanding and, assuming receipt by the Acquiring Fund of the consideration contemplated hereby, fully paid and nonassessable shares in the Acquiring Fund,
and no shareholder of the Acquiring Fund has any preemptive right of subscription or purchase in respect thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery of this Agreement did not, and the performance by the Acquiring Fund of its
obligations hereunder will not, violate the Acquiring Fund's organizational documents.

8. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING FUND.

The obligations of the Acquiring Fund to complete the transactions provided for herein shall be subject, at its election, to the performance by the Target Fund of all the obligations to be performed by it hereunder on or before the Closing Date and, in addition thereto, to the following further conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. The Target Fund shall have delivered to the Acquiring Fund a certificate executed in its name by its
President or a Vice President and its Treasurer or an Assistant Treasurer, in form and substance satisfactory to the Acquiring Fund and dated as of the Closing Date, to the effect that the representations and warranties of the Target Fund made in
this Agreement are true and correct at and as of the Closing Date, except as they may be affected by the transactions contemplated by this Agreement, and that the Target Fund has complied with all the covenants and agreements and satisfied all of
the conditions on its part to be performed or satisfied under this Agreement at or prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. The Acquiring Fund shall have received a certificate from an officer of the Target Fund dated the Closing
Date and in a form satisfactory to the Acquiring Fund, to the following effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust is duly organized and validly existing under the laws of its state of organization and has power
to own all of its properties and assets and to carry on its business as presently conducted, and the Target Fund is a separate series thereof duly constituted in accordance with the applicable provisions of the 1940 Act and the organizational
documents of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement has been duly authorized, executed and delivered on behalf of the Target Fund and, assuming
the due authorization, execution and delivery of this Agreement by the Acquiring Fund, is the valid and binding obligation of the Target Fund enforceable against the Target Fund in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights generally and other equitable principles;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Target Fund has the power to sell, assign, transfer and deliver the assets to be transferred by it
hereunder, and, upon consummation of the transactions contemplated hereby, the Target Fund will have duly transferred such assets to the Acquiring Fund; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution and delivery of this Agreement did not, and the performance by the Target Fund of its
obligations hereunder will not, violate the Target Fund's organizational documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. On or prior to the Closing Date, the Target Fund shall have declared a dividend or dividends which, together
with all previous dividends, shall have the effect of distributing (i) all of the excess (if any) of (a) the Target Fund's interest income excludable from gross income under Section 103(a) of the Code over (b) the Target
Fund's deductions disallowed under Sections 265 or 171(a)(2) of the Code, (ii) all of the Target Fund's investment company taxable income as defined in Section 852 of the Code (if any) (in the case of both (i) and (ii)
computed without regard to any deduction for dividends paid), and (iii) all of the Target Fund's net capital gain (if any) (after reduction for any capital loss carryover); the amounts in (i), (ii) and (iii) shall in each case
include amounts for both (x) the Target Fund's taxable year that will end on the Closing Date, and (y) any prior taxable year of the Target Fund, to the extent such dividend or dividends are eligible to be treated as paid during such
prior year under Section 855(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. The Target Fund shall have furnished to the Acquiring Fund a certificate as to the adjusted tax basis in the
hands of the Target Fund of the assets delivered to the Acquiring Fund pursuant to this Agreement, and shall have delivered a copy of the tax books and records of the Target Fund necessary for purposes of preparing any tax returns (including,
without limitation, any informational returns) required by law to be filed or otherwise provided by the Acquiring Fund after the Closing Date.

9. FURTHER CONDITIONS PRECEDENT TO OBLIGATIONS OF THE TARGET FUND AND THE ACQUIRING FUND.

The respective obligations of the Target Fund and the Acquiring Fund hereunder are subject to the further conditions that on or before the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. On the Closing Date, no action, suit or other proceeding shall be pending before any court or governmental
agency in which it is sought to restrain or prohibit, or obtain damages or other relief in connection with, this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. All consents of other parties and all other consents, orders and permits of federal, state and local
regulatory authorities (including those of the Securities and Exchange Commission and of state "Blue Sky" and securities authorities) deemed necessary by the Target Fund or the Acquiring Fund to permit consummation, in all material
respects, of the transactions contemplated hereby shall have been obtained, except when failure to obtain any such consent, order or permit would not involve a risk of a material adverse effect on the assets or properties of the Target Fund or the
Acquiring Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. The registration statement under the 1933 Act with respect to the Acquisition Shares shall be in full force
and effect, no stop order suspending the effectiveness thereof shall have been issued, and, to the best knowledge of the parties hereto, no investigation or proceeding for that purpose shall have been instituted or be pending, threatened or
contemplated under the 1933 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. The Target Fund and the Acquiring Fund shall have received a favorable opinion of Paul Hastings LLP
satisfactory to each of them (which opinion will be subject to certain qualifications), substantially to the effect that, on the basis of existing provisions of the Code, U.S. Treasury regulations promulgated thereunder, current administrative rules
and court decisions, as further described below, generally for U.S. federal income tax purposes, the transactions contemplated by this Agreement will constitute a reorganization within the meaning of Section 368(a)(1) of the Code,

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and the Target Fund and the Acquiring Fund will each be a "party to a reorganization" within the meaning of Section 368(b) of the Code.

Paul Hastings LLP will express no view with respect to the effect of a reorganization on any transferred asset as to which any unrealized gain or loss is required to be recognized under U.S. federal income tax principles (i) at the end of a taxable year or upon the termination thereof or (ii) upon the transfer of such asset regardless of whether such a transfer would otherwise be a non-taxable transaction.

The opinion will be based on certain factual certifications made by officers of the Target Fund and the Acquiring Fund and will also be based on customary assumptions. The opinion may note and distinguish certain published precedent. The opinion is not a guarantee that the tax consequences of the reorganization will be as described above. There is no assurance that the Internal Revenue Service or a court would agree with the opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. At any time prior to the Closing, any of the foregoing conditions of this Agreement may be waived jointly by
the board of trustees, or the officers in consultation with counsel, of the Target Fund and the Acquiring Fund, if, in their judgment, such waiver will not have a material adverse effect on the interests of the shareholders of the Target Fund or the
Acquiring Fund.

10. TAX MATTERS.

&nbsp;&nbsp;&nbsp;&nbsp;10.1 The Trust hereby represents and warrants on behalf of the Target Fund and the Acquiring Fund that it shall
use its best efforts to cause the reorganization contemplated hereby to qualify, and will not (whether before or after consummation of such reorganization) take any actions that could prevent such reorganization from qualifying, as a
"reorganization" under the provisions of Section 368 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;10.2 Except where otherwise required by law, the parties hereto shall not take a position on any tax returns
inconsistent with the treatment of the reorganization contemplated hereby for tax purposes as a "reorganization," within the meaning of Section 368(a) of the Code, and the Acquiring Fund and the Target Fund will comply with the
record keeping and information filing requirements of Section 1.368-3 of the U.S. Treasury regulations in accordance therewith.

11. BROKERAGE FEES AND OTHER EXPENSES.

&nbsp;&nbsp;&nbsp;&nbsp;11.1. Each of the Target Fund and the Acquiring Fund represents and warrants to the other that there are no
brokers or finders entitled to receive any payments in connection with the transactions provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;11.2. Matthews International Capital Management, LLC ("Matthews"), as the investment adviser to the
Target Fund and the Acquiring Fund, hereby agrees to pay one-third (1/3) of the Reorganization Expenses (as defined below). The remainder of the Reorganization Expenses will be shared equally between the
Target Fund and the Acquiring Fund, such that the total Reorganization Expenses will be allocated in equal proportion among Matthews, the Target Fund, and the Acquiring Fund. " <u>Reorganization Expenses</u> " include following expenses
incurred in connection with the transactions contemplated hereby: (i) all fees paid to governmental authorities for the registration or qualification of the Acquisition Shares and all transfer agency costs related to the Acquisition Shares;
(ii) all fees and expenses related to preparing, printing and mailing communications to Target Fund shareholders; and (iii) all of the other expenses of the transactions contemplated by this Agreement, including without limitation,
accounting, legal and custodial expenses. In the event the Closing does not occur, the Target Fund and the Acquiring Fund shall nonetheless bear all such expenses not required to be borne by Matthews International Capital Management, LLC. The
Reorganization Expenses shall remain subject to applicable expense limitations for each of the Target Fund and the Acquiring Fund. For the avoidance of doubt, the

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Target Fund and the Acquiring Fund shall each bear their respective brokerage or other transaction costs, if any, associated with the sale or purchase of portfolio securities in connection with the reorganization contemplated hereby.

12. ENTIRE AGREEMENT; SURVIVAL OF WARRANTIES.

&nbsp;&nbsp;&nbsp;&nbsp;12.1. Each of the Target Fund and the Acquiring Fund agrees that neither party has made any representation,
warranty or covenant not set forth herein and that this Agreement constitutes the entire agreement between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;12.2. The representations, warranties and covenants contained in this Agreement or in any document delivered
pursuant hereto or in connection herewith shall not survive the consummation of the transactions contemplated hereunder except paragraphs 2.1, 2.2, 2.3, 6.3, 10, 11, 12, 15 and 16.

13. TERMINATION.

&nbsp;&nbsp;&nbsp;&nbsp;13.1. This Agreement may be terminated by the mutual agreement of the Target Fund and the Acquiring Fund. In
addition, either the Target Fund or the Acquiring Fund may at its option terminate this Agreement at or prior to the Closing Date because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) of a material breach by the other of any representation, warranty, covenant or agreement contained herein to
be performed by the other party at or prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a condition herein expressed to be precedent to the obligations of the terminating party has not been met
and it reasonably appears that it will not or cannot be met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any governmental authority of competent jurisdiction shall have issued any judgment, injunction, order,
ruling or decree or taken any other action restraining, enjoining or otherwise prohibiting this Agreement or the consummation of any of the transactions contemplated herein and such judgment, injunction, order, ruling, decree or other action becomes
final and non-appealable; provided that the party seeking to terminate this Agreement pursuant to this paragraph 13.1(c) shall have used its reasonable best efforts to have such judgment, injunction, order,
ruling, decree or other action lifted, vacated or denied.

If any transaction contemplated by this Agreement has not been substantially completed by the first anniversary of this Agreement, this Agreement shall automatically terminate on that date with respect to that transaction, unless a later date is agreed to by both the Target Fund and the Acquiring Fund.

&nbsp;&nbsp;&nbsp;&nbsp;13.2. If for any reason any transaction contemplated by this Agreement is not consummated, no party shall be
liable to any other party for any damages resulting therefrom, including without limitation consequential damages.

14. AMENDMENTS.

This Agreement may be amended, modified or supplemented in such manner as may be mutually agreed upon in writing by the authorized officers of the Target Fund and the Acquiring Fund; provided, however, that no amendment that under applicable law requires approval by shareholders of the Target Fund or the Acquiring Fund, as applicable, shall be effective without such approval having been obtained.

15. NOTICES.

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Any notice, report, statement or demand required or permitted by any provisions of this Agreement shall be in writing and shall be given by prepaid telegraph, telecopy or certified mail addressed to the Target Fund or the Acquiring Fund, Four Embarcadero Center, Suite 550, San Francisco, CA 94111, Attention: Deepa Damre Smith, Vice President of the Trust.

16. HEADINGS; COUNTERPARTS; GOVERNING LAW; ASSIGNMENT; NON- RECOURSE.

&nbsp;&nbsp;&nbsp;&nbsp;16.1. The article and paragraph headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;16.2. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original.

&nbsp;&nbsp;&nbsp;&nbsp;16.3. This Agreement shall be governed by and construed in accordance with the domestic substantive laws of
Delaware, without giving effect to any choice or conflicts of law rule or provision that would result in the application of the domestic substantive laws of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;16.4. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and
assigns, but no assignment or transfer hereof or of any rights or obligations hereunder shall be made by any party without the written consent of the other party. Nothing herein expressed or implied is intended or shall be construed to confer upon
or give any person, firm or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;16.5. Notice is hereby given that no trustee, officer, agent or employee of the Trust shall have any personal
liability under this Agreement, and that insofar as it relates to any Acquiring Fund or Target Fund, this Agreement is binding only upon the assets and properties of such Acquiring Fund or Target Fund.

**THE REST OF THIS PAGE IS INTENTIONALLY BLANK.** 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as set forth below.

**Matthews International Funds** 

On behalf of the Target Fund thereof identified on Exhibit A

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| | |
|:---|:---|
| By: | <u>/s/ Deepa Damre Smith</u> |
| Name: | Deepa Damre Smith |
| Title: | Vice President |

---

**Matthews International Funds** 

On behalf of the Acquiring Fund thereof identified on Exhibit A

---

| | |
|:---|:---|
| By: | <u>/s/ Deepa Damre Smith</u> |
| Name: | Deepa Damre Smith |
| Title: | Vice President |

---

**Matthews International Capital Management, LLC** 

Only for purposes of Section 11.2

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| | |
|:---|:---|
| By: | <u>/s/ John McGowan</u> |
| Name: | John McGowan |
| Title: | Global Head of Fund Administration and IT |

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*Signature Page for Agreement and Plan of Reorganization* 

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**<u>EXHIBIT A</u>**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Trust** | **Target**<br> **Fund** <br>| **Acquiring**<br> **Fund**  |
| &nbsp;&nbsp;&nbsp;Matthews International Funds | Matthews China Dividend Fund<br>| Matthews Asia Dividend Fund |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Share Class Involved** | &nbsp;&nbsp;&nbsp;**Share Class Involved** |
| &nbsp;&nbsp;&nbsp;**Target Fund Share Class** | **Acquiring Fund Share Class** |
| &nbsp;&nbsp;&nbsp;Institutional Class | Institutional Class |
| &nbsp;&nbsp;&nbsp;Investor Class | Investor Class |

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Both the Target Fund and the Acquiring Fund have two classes of shares, the Institutional Class and the Investor Class.

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**MATTHEWS INTERNATIONAL FUNDS** 

**Matthews China Dividend Fund** 

**Matthews Asia Dividend Fund** 

**PART B** 

**STATEMENT OF ADDITIONAL INFORMATION** 

December 12, 2025

This Statement of Additional Information (the "SAI") relates to the reorganization ("Reorganization") of the Matthews China Dividend Fund (the "Target Fund"), a series of Matthews International Funds, d/b/a Matthews Asia Funds (the Trust"), into the Matthews Asia Dividend Fund (the "Acquiring Fund" and together with the Target Fund, the "Funds"), also a series of the Trust.

This SAI contains information which may be of interest to shareholders of the Target Fund relating to the Reorganization, but which is not included in the Combined Prospectus/Information Statement dated December 12, 2025 (the "Combined Prospectus/Information Statement"). As described in the Combined Prospectus/Information Statement, the Reorganization would involve the transfer of all of the assets and liabilities of the Target Fund in exchange for shares of the Acquiring Fund. The Target Fund will distribute the Acquiring Fund shares it receives to its shareholders in complete liquidation of the Target Fund.

This SAI is not a prospectus, and should be read in conjunction with the Combined Prospectus/Information Statement. The Combined Prospectus/Information Statement has been filed with the Securities and Exchange Commission, and is available upon request and without charge by writing to the Target Fund or the Acquiring Fund, c/o Matthews International Funds, Four Embarcadero Center, Suite 550, San Francisco, CA 94111, or by calling 800.789.ASIA (2742).

Capitalized terms used in this SAI and not otherwise defined herein have the meanings given them in the Combined Prospectus/Information Statement.

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**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  [ADDITIONAL INFORMATION ABOUT THE TARGET FUND AND THE ACQUIRING FUND](#sai78426_1) | 3 |
|  [FINANCIAL STATEMENTS](#sai78426_2) | 3 |
|  [SUPPLEMENTAL FINANICAL INFORMATION](#sai78426_3) | 3 |

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**ADDITIONAL INFORMATION ABOUT THE TARGET FUND AND THE ACQUIRING FUND** 

**For each of the Target Fund and the Acquiring Fund**: Incorporated by reference is the [Statement of Additional Information](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/0000923184/000119312525050789/d867281dncsr.htm) included in the Trust's Registration Statement on Form N-1A dated April 30, 2025, as supplemented and amended, as filed with the U.S. Securities and Exchange Commission (the "SEC") (SEC Accession No. 0001193125-25-107556).

**FINANCIAL STATEMENTS** 

This SAI incorporates by reference the [Annual Report to Shareholders](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/0000923184/000119312525050789/d867281dncsr.htm) of the Target Fund and the Acquiring Fund for the fiscal year ended December 31, 2024, filed March 10, 2025 (SEC Accession No. 0001193125-25-050789), and the [Semi-Annual Report to Shareholders](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/0000923184/000119312525196995/d150332dncsrs.htm) of the Target Fund and the Acquiring Fund for the period ended June 30, 2025, filed September 5, 2025 (SEC Accession No. 0001193125-25-196995), each as filed with the SEC. The Annual Report and the Semi-Annual Report contain historical financial information regarding the Funds.

**SUPPLEMENTAL FINANCIAL INFORMATION** 

A table showing the fees of the Acquiring Fund and the Target Fund, and the fees and expenses of the Acquiring Fund on a pro forma basis after giving effect to the proposed Reorganization, is included in the section entitled "Summary – Fees and Expenses" of the Combined Prospectus/Information Statement.

The Reorganization will not result in a material change to the Target Fund's investment portfolio due to investment restrictions. As a result, a schedule of investments of the Target Fund modified to show the effects of the change is not required and is not included. Notwithstanding the foregoing, changes may be made to the Target Fund in advance of the Reorganization and/or the Acquiring Fund following the Reorganization.

There are no material differences in accounting policies of the Target Fund as compared to those of the Acquiring Fund.