Morningstar Rating

Fund Research and Analysis

by Arijit Dutta
Matthews Asia Pacific Equity Income is putting on a remarkable repeat performance.

It's been quite a challenge to outperform both in last year's brutal sell-off and in the sharp rally of 2009, but this fund is among the rare ones to pull it off. The fund did lose 26% in 2008, but that was by far the best result in the diversified Pacific/Asia category (the typical peer lost 41% last year).  Read more 

Kudos

Strong research analyst support.
Experienced management. Read more 

Risks

A little pricey.
Investing in this region can be volatile. Read more 

Strategy

Instead of looking for growth stocks, as do most Asia-focused funds--as well as many of the Matthews funds--this offering invests in dividend-paying firms. The team here argues that this focus is a sustainable venture and points to increasing shareholder friendliness across the region as evidence of that.  Read more 

Management

Jesper Madsen and Andrew Foster have managed the fund since inception. Madsen, the lead manager here, has been at Matthews since 2004. Foster is a supporting comanager here and has been with the firm since 1998 (with a two-year break to get his MBA).  Read more 

Inside Scoop

This newest fund from Matthews International is a bit different. The managers here take a value bent when evaluating stocks and look for firms that pay dividends and have strong cash flows and clean balance sheets.  Read more 

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