Matthews Asian Growth & IncomeMACSX

Morningstar Rating

Fund Research and Analysis

by Arijit Dutta

Matthews Asian Growth & Income has had a tough time keeping up in the rally, but management is far from running out of ideas.

The Pacific/Asia ex-Japan category is home to markets that have enjoyed some of this year's most powerful rebounds; its average fund is up a whopping 66% through Oct. Read more

Kudos

Fund has suffered far less volatility than its peers.

Has gained much more than the majority of its peers over the long run.

Experienced management. Read more

Risks

A good portion of the fund's returns come in the form of income, so it works better in a tax-deferred account for many investors.

Tends to lag during strong rallies. Read more

Strategy

The fund concentrated on convertible bonds in its early years and then began to pay a lot of attention to undervalued stocks with nice payouts and other types of tame securities in the late 1990s and early 2000s as the supply of converts diminished. Read more

Management

Andrew Foster took over as the lead manager here as of February 2008. Foster, who also comanages Matthews India MINDX and Matthews Asia Pacific Equity Income MAPIX, joined as a comanager on this fund in early 2005. Robert Horrocks, who is also Chief Investment Officer at the firm, joined Foster in 2009, replacing founding manager Paul Matthews as Foster's deputy. Read more

Inside Scoop

This fund is much tamer than most of its rivals. Besides buying dividend-paying common stocks, it focuses on convertible bonds and preferred shares (hybrid securities that aren't as turbulent as the region's stocks). Read more

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