We believe that by including a portion of dedicated Asian exposure to a global investment portfolio, investors may enhance long-term returns, while simultaneously reducing risk, through diversification. With a specialized approach to Asian investing, the Matthews International Funds offer a complete and prudent long-term investment program for investors seeking exposure to the Asian Pacific Rim. The following is our view on how to use the funds. In general, we recommend our funds for investors who are ready to commit a portion of their portfolio to Asia. Choosing which fund to use is a matter of judgment, depending on your particular circumstances, goals, personality and risk tolerance.
Japan is a developed market with relatively mature markets and large, global companies.
The risk associated with investing in emerging markets is not as relevant for this fund. Single country funds may be subject to a higher degree of market risk than diversified funds because of concentration in a geographic region. The lower risk profile is due to a primary emphasis on convertible bonds. With this Fund, the portfolio manager aims to outperform its benchmark index, the Morgan Stanley Capital International All Country Far East ex-Japan Index with less volatility than a pure equity fund such as our Matthews Pacific Tiger Fund. However, we expect long-tem returns to be lower because it is not a pure stock fund.