REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
|
/X/
|
Pre-Effective
Amendment No.
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/
/
|
Post-Effective
Amendment No. 29
|
/X/
|
REGISTRATION
STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
|
/X/
|
immediately
upon filing pursuant to paragraph (b)
|
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on
____________ pursuant to paragraph (b)
|
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60
days after filing pursuant to paragraph (a)(1)
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on
____________ pursuant to paragraph (a)(1)
|
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75
days after filing pursuant to paragraph (a)(2)
|
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X
|
on
October
31, 2006
pursuant to paragraph (a)(2) of Rule 485.
|
||
If appropriate, check the following box: | |||
This
post-effective amendment designates a new effective date for a previously
filed post-effective amendment.
|
PROSPECTUS
October
__, 2006
Matthews
Asia Pacific Equity Income Fund
|
The
information in this Prospectus is not complete and may be changed.
We may
not sell these securities until the registration statement filed
with the
Securities and Exchange Commission is effective. This prospectus
is not an
offer to sell these securities and it is not soliciting an offer
to buy
these securities in any state where the offer or sale is not
permitted.
|
Please
read this document carefully before
you
make any
investment decision. If
you
have any questions, do not
hesitate to
contact
us at 800-789-ASIA
[2742] or visit www.matthewsfunds.com.
Also,
please keep this prospectus
with your
other
account documents for future reference.
Please
see important information
about
redemption
fees on
page xx
The
Matthews Asia Pacific Equity Income Fund is part of the Matthews
Asian
Funds family. Other funds in the Matthews Asian Funds family are
offered
through a separate prospectus that can be obtained from Matthews
Asian
Funds or its Distributor, PFPC Distributors, Inc.
|
Investment
Objective of the Fund
Principal
Investment Strategy
Principal
Risks of Investing in the Fund
Past
Performance
Fees
and Expenses
Management
of the Fund
Shareholder
Information
Pricing
of Fund Shares
Purchase
of Shares
Exchange
of Shares
Selling
(Redeeming) Shares
Redemption
Fees
Other
Shareholder Information
General
Information
Privacy
Statement
|
||
The
investment objective of the Fund is fundamental. This means that
it cannot
be changed without the approval of the Fund’s shareholders. The
manner in which the Advisor attempts to achieve the Fund’s investment
objective as well as the Fund’s intention to consistently distribute its
realized income to shareholders are not fundamental and may be
changed
without shareholder approval. While an investment policy or restriction
may be changed by the Fund’s Board of Trustees (which oversees the
management of the Fund) without shareholder approval, shareholders
will be
given 60 days’ advance notice of any material change to an investment
policy or restriction.
|
There
is no guarantee that your investment in the Fund will increase
in value,
that the Fund will provide a yield that is higher than available
in Asia
Pacific equity markets, or that it will be able to distribute
its realized
income regularly to shareholders. The value of your investment
in the Fund
could go down, meaning you could lose money. An investment in
the Fund is
not a bank deposit and is not insured or guaranteed by the Federal
Deposit
Insurance Corporation or any other government
agency.
|
SHAREHOLDER
FEES (FEES
PAID DIRECTLY FROM YOUR INVESTMENT)
|
|
Maximum
Sales Charge (Load) imposed on purchases (as a percentage of offering
price)
|
None
|
Maximum
Sales Charge (Load) imposed on reinvested dividends
(as
a percentage of offering price)
|
None
|
Maximum
Deferred Sales Charge (Load)
(as
a percentage of original purchase price)
|
None
|
Redemption
Fee on shares redeemed within 90 calendar days of purchase
(as
a percentage of amount redeemed)
|
2.00%*
|
OPERATING
EXPENSES (EXPENSES
THAT ARE DEDUCTED FROM FUND ASSETS)
|
|
Management
Fee
|
0.XX%**
|
Distribution
(12b-1) Fees
|
None
|
Administration
and Shareholder Servicing Fees
|
0.XX%†
|
Other
Expenses
|
0.XX%††
|
Fee
Waiver and Expense Reimbursement
|
0.XX%*†
|
Total
Annual Operating Expenses
|
1.50%
|
One
Year
|
$XXX
|
Three
Years
|
$XXX
|
Minimum
Investments in the Fund (U.S. Residents*)
|
||
Non-retirement
plan accounts
|
||
Initial
investment:
|
$2,500
|
|
Subsequent
investments:
|
$250
|
|
Retirement
plan accounts**
|
||
Initial
investment:
|
$500
|
|
Subsequent
investments:
|
$50
|
Opening
an account
(Initial
Investment)
|
Adding
to an Account
(Subsequent
Investments)
|
|
BY
MAIL
Regular
Mail
Overnight
Delivery
|
■
Complete
and sign application
■
Make
check payable to:
Matthews
Asian Funds
■
Mail
application and check to:
Matthews
Asian Funds
P.O.
Box 9791
Providence,
RI 02940
Matthews
Asian Funds
101
Sabin Street
Pawtucket,
RI 02860-1427
|
■
Make
check payable to:
Matthews Asian
Funds
■
Mail
check with a statement stub
indicating your fund(s) selection to:
Matthews
Asian Funds
P.O.
Box 9791
Providence,
RI 02940
Matthews
Asian Funds
101
Sabin Street
Pawtucket,
RI 02860-1427
|
BY
PHONE
*Note
that wire fees are charged by most banks.
|
■
Call
800-789-ASIA [2742] or visit www.matthewsFund.com
for a New Account Application.
■
Complete
and sign the New Account Application
■
Send your New Account Application by regular mail or overnight
delivery to
one of the addresses above
Wire*
■
Then
wire funds using instructions at right
|
■
Notify
Fund’s agent by calling 800-789-ASIA
[2742].
Wire*
■ Then
wire funds to:
PNC
Bank
ABA
#031000053
Credit:
Matthews Asia Pacific Equity Income Fund
Account
#8606905986
FBO:
[your
name and account number]
|
VIA
INTERNET**
|
You
cannot currently open a new account over the Internet.
|
■
When
you open your account, complete
the Online
Account Access
section
and attach a voided
check.
■
After
you have received confirmation
of your purchase, call
800-789-ASIA [2742] and request a
personal identification number
(PIN).
■
Go
to www.matthewsfunds.com
and click on Account
Access.
|
VIA
AUTOMATIC
INVESTMENT
PLAN**
|
N/A
|
■
Complete
the Automatic
Investment Plan section
of the application. Be sure to sign the application and include
a voided
check.
|
THROUGH
A BROKER OR INTERMEDIARY
|
■
Contact
your broker or intermediary, who may charge you a fee for their
services.
|
■
Contact
your broker or intermediary, who may charge you a fee for their
services.
|
BY
MAIL
|
■
Send a letter to the Fund at the following
address:
|
Regular
Mail:
|
Matthews
Asian Funds
P.O.
Box 9791
Providence,
RI 02940
|
Overnight
Delivery:
|
Matthews
Asian Funds
101
Sabin Street
Pawtucket,
RI 02860-1427
The
letter must include your name and account number, the name of the
Fund,
and the amount you want to sell in dollars or shares. This letter
must be
signed by each owner of the account.
For
security purposes, a medallion signature guarantee will be required
if:
■
Your written request is for an amount over $100,000; or
■
The money is to be paid to anyone other than the registered owners;
or
■
The money is to be sent to an address that is different from the
registered address or to a bank account other than the account
that was
preauthorized.
|
BY
PHONE
|
Call
800-789-ASIA [2742]. When you open your account you will automatically
have the ability to exchange and redeem shares by telephone unless
you
specify otherwise on your New Account Application.
|
BY
WIRE
|
If
you have wiring instructions already established on your account,
contact
us at 800-789-ASIA [2742] to request a redemption by wire. Please
note
that the Fund charges $9.00 for wire redemptions, in addition to
a wire
fee that may be charged by your bank.
Note:
When you opened your account you must have provided the wiring
instructions for your bank with your application.*
|
If
your account has already been opened, you may send us a written
request to
add wiring instructions to your account. Send your request to one
of the
addresses above and include a signature guarantee.
|
|
VIA
INTERNET
|
You
must have already obtained Online Account Access and a PIN from
the Fund’s
transfer agent. (See Adding
to an Account: Via Internet
on page xx.)
Go
to www.matthewsfunds.com
and click on Account Access, then follow the instructions on how
to place
a redemption.
|
THROUGH
A BROKER
OR
INTERMEDIARY
|
Contact
your broker or intermediary, who may charge you a fee for their
services.
|
■ |
Reject
a purchase or exchange
|
■
|
Delay
payment of immediate cash redemption proceeds for up to seven calendar
days
|
■ |
Revoke
a shareholder’s privilege to purchase Fund shares (including
exchanges)
|
■ |
Limit
the amount of any exchange
|
Not
part of the
prospectus.
|
For
additional information
about
Matthews Asian Funds:
|
|
www.matthewsfunds.com
|
|
800-789-ASIA
[2742]
|
|
Matthews
Asian Funds
P.O.
Box 9791
Providence,
RI 02940
|
|
Investment
Company Act
File
Number: 811-08510
|
|
Distributed
by PFPC Distributors, Inc.
|
|
Matthews
Asian Funds
www.matthewsfunds.com
|
|
|
|
|
|
Matthews
Asian Funds
P.O.
Box 9791
Providence,
RI 02940
|
|
|
MAPEIFP-1006-50M-FST
|
800-789-ASIA
[2742]
|
The
information in this Statement of Additional Information is not
complete
and may be changed. We may not sell these securities until the
registration statement filed with the Securities and Exchange Commission
is effective. This Prospectus is not an offer to sell these securities
and
it is not soliciting an offer to buy these securities in any state
where
the offer or sale is not permitted.
|
TABLE
OF CONTENTS
|
PAGE
|
Fund
History
|
3
|
Description
of the Fund
|
3
|
Classification
|
3
|
Investment
Process
|
4
|
Investment
Objective
|
5
|
Principal
Investment Strategy and Risks
|
5
|
Additional
Investment Strategies
|
12
|
Fund
Policies
|
24
|
Temporary
Defensive Position
|
26
|
Portfolio
Turnover
|
26
|
Disclosure
of Portfolio Holdings
|
26
|
Management
of the Fund
|
28
|
Shareholders’
Voting Powers
|
34
|
Compensation
|
35
|
Code
of Ethics
|
35
|
Proxy
Voting Policies and Procedures
|
35
|
Control
Persons and Principal Holders of Securities
|
37
|
Investment
Advisory and Other Service Providers
|
37
|
Brokerage
Allocation and Other Practices
|
44
|
Shares
of Beneficial Interest
|
45
|
Purchase,
Redemption and Pricing of Shares
|
45
|
Taxation
of the Trust
|
48
|
Other
Information
|
51
|
Reports
to Shareholders
|
51
|
Financial
Statements
|
51
|
1.
|
Issue
senior securities;
|
2.
|
Borrow
money, except that the 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. The Fund will not purchase
securities when borrowings exceed 5% of the Fund’s total net
assets;
|
3.
|
Act
as an underwriter of securities, except that, in connection with
the
disposition of a security, the Fund may be deemed to be an “underwriter”
as that term is defined in the 1933
Act;
|
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 the Fund’s investments in such industry would
exceed 25% of the value of the total assets of the
Fund;
|
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 Fund from investing 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;
|
6.
|
Make
loans, except that this restriction shall not prohibit (i) the
purchase
and holding of debt instruments in accordance with the Fund’s investment
objectives and policies, (ii) the lending of portfolio securities,
or
(iii) entry into repurchase agreements with banks or
broker-dealers;
|
7.
|
Change
its diversification status under the 1940
Act;
|
8.
|
Purchase
or sell commodities or commodity contracts, except that the 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;
|
9.
|
Make
investments in securities for the purpose of exercising control;
or
|
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.
|
1.
|
Following
the end of each fiscal quarter (generally within 60 days), the
Fund’s full
portfolio holdings will be made publicly available by the following
means:
|
a.
|
The
Fund shall send shareholders portfolio holdings in the Fund’s annual,
semi-annual and quarterly reports, which are mailed to shareholders
and
posted on the Fund’s website.
|
b.
|
PFPC
shall send portfolio holdings to nationally recognized rating agencies
via
electronic transmission.
|
2.
|
The
Fund will also release top ten holdings on a monthly basis via
the Fund’s
website and written communication within approximately 21 days
of each
month end;
|
3.
|
The
Fund or a Service Provider may disclose the Fund’s portfolio securities
holdings in advance of general release and without delay to the
Fund’s
custodian bank, independent public accountant, independent legal
counsel,
proxy voting agent, financial printers, and pricing service provider.
In
addition, the Fund may make such disclosure to selected third parties
when
the Fund has a legitimate business purpose for doing so. Examples
of
legitimate business purposes in which selective disclosure of the
Fund’s
portfolio securities may be appropriate include disclosure for
due
diligence purposes to an investment advisor that is in merger or
acquisition talks with the Advisor; disclosure to a newly hired
investment
advisor or sub-advisor prior to its commencing its duties; or disclosure
to a rating or ranking
organization.
|
Name,
Year of Birth, and Address
|
Position(s)
Held with the Trust
|
Term
of Office and Length of Time
Served1
|
Principal
Occupation(s)
During
Past 5 Years
|
Number
of Portfolios in Fund Complex Overseen by Trustee
|
Other
Trusteeships/
Directorships
(number
of portfolios)
Held
by Trustee
|
INDEPENDENT
TRUSTEES
|
|||||
Richard
K. Lyons
Born
1961
Four
Embarcadero Center
Suite
550
San
Francisco, CA 94111
|
Chairman
of the Board of Trustees and Trustee
|
Since
1994
|
Executive
Associate Dean (since 2005) and Sylvan Coleman Professor of Finance
(since
2004) Acting Dean (2004-2005) and Professor (since 1993), Haas
School of
Business, University of California at Berkeley; Consultant for
IMF World
Bank, Federal Reserve Bank and Citibank, N.A. (since
2000).
|
9
|
Director,
iShares Fund Complex, consisting of iShares, Inc. (24 portfolios)
and
iShares Trust (over 70 portfolios) managed by Barclays Global Investors;
Trustee, Barclays Global Investor Fund Complex, consisting of Barclays
Global Investor Funds and Barclays Master Investment Portfolios
(15
portfolios).
|
Robert
K. Connolly
Born
1932
Four
Embarcadero Center
Suite
550
San
Francisco, CA 94111
|
Trustee
|
Since
1994
|
Retired
since 1990. Prior thereto: Institutional Sales Manager and Securities
Analyst for Barrington Research Associates.
|
9
|
None
|
Name,
Year of Birth, and Address
|
Position(s)
Held with the Trust
|
Term
of Office and Length of Time
Served1
|
Principal
Occupation(s)
During
Past 5 Years
|
Number
of Portfolios in Fund Complex Overseen by Trustee
|
Other
Trusteeships/
Directorships
(number
of portfolios)
Held
by Trustee
|
INDEPENDENT
TRUSTEES
|
Toshi
Shibano
Born
1950
Four
Embarcadero Center
Suite
550
San
Francisco, CA 94111
|
Trustee
|
Since
2003
|
President,
Toshi Shibano Consulting, Inc. since 1995; Adjunct Associate Professor,
Columbia Graduate School of Business since 2001; Adjunct Professor,
Thunderbird American Graduate School of International Management
2000-2005; Faculty, General Electric Corporate Leadership Development
Center since 2000; Executive Education Lecturer, Haas School of
Business,
University of California at Berkeley since 1995.
|
9
|
None
|
Geoffrey
H. Bobroff
Born
1944
Four
Embarcadero Center
Suite
550
San
Francisco, CA 94111
|
Trustee
|
Since
2006
|
President,
Bobroff Consulting, Inc. (since 1993).
|
9
|
None
|
Rhoda
Rossman
Born
1958
Four
Embarcadero Center
Suite
550
San
Francisco, CA 94111
|
Trustee
|
Since
2006
|
Senior
Vice President, Treasurer, Portfolio Manager (since 2003);
Vice
President and Treasurer (2001-2003); Assistant Vice President (1999-2001);
Portfolio Manager (1997-2001), The PMI Group, Inc.
|
9
|
Director
of each of PMI Mortgage Insurance Co., PMI Mortgage Guaranty Co.,
PMI
Mortgage Services Co., Residential Guaranty Co., Residential Insurance
Co., PMI Securities Co., Commercial Loan Insurance Corporation,
WMAC
Credit Insurance Corporation, PMI Mortgage Insurance Ltd., PMI
Mortgage
Insurance Australia (Holdings) Pty. Limited, and PMI Indemnity
Limited.
|
INTERESTED
TRUSTEES2
|
|||||
David
FitzWilliam-Lay
Born
1931
Four
Embarcadero Center
Suite
550
San
Francisco, CA 94111
|
Trustee
|
Since
1994
|
Retired
in 1993. Prior thereto Chairman of GT Management, PLC, United
Kingdom.
|
9
|
None
|
G.
Paul Matthews
Born
1956
Four
Embarcadero Center Suite 550
San
Francisco, CA 94111
|
Trustee
and President
|
Since
1994
|
Chairman
and Chief Investment Officer, Matthews International Capital
Management,
LLC since 1991.
|
9
|
N/A
|
OFFICER(S)
WHO ARE NOT TRUSTEES2
|
|||||||
Mark
W. Headley
Born
1959
Four
Embarcadero Center Suite 550
San
Francisco, CA 94111
|
Vice
President
|
Since
1999
|
Chief
Executive Officer, President and Portfolio Manager, Matthews International
Capital Management, LLC since 2001; President and Portfolio Manager,
1999-2001; Portfolio Manager and Managing Director 1996-1999.
|
N/A
|
N/A
|
||
Andrew
T. Foster
Born
1974
Four
Embarcadero Center Suite 550
San
Francisco, CA 94111
|
Vice
President
|
Since
2005
|
Director
of Research and Portfolio Manager, Matthews International Capital
Management, LLC since 2003; Student at INSEAD, Fontainebleau, France;
M.B.A, in 2002; Analyst, Matthews International Capital Management,
LLC,
1998-2001.
|
N/A
|
N/A
|
||
John
P. McGowan
Born
1964
Four
Embarcadero Center Suite 550
San
Francisco, CA 94111
|
Vice
President and Secretary
|
Since
2005
|
Chief
Operating Officer, Matthews International Capital Management, LLC,
since
2004; Chief Operating Officer, Treasurer, and Chief Compliance
Officer,
Forward Management LLC, 1998-2004.
|
N/A
|
N/A
|
||
Shai
Malka
Born
1973
Four
Embarcadero Center Suite 550
San
Francisco, CA 94111
|
Treasurer
|
Since
2005
|
Senior
Manager of Fund Accounting and Operations since 2004; Manager of
Fund
Accounting (2003-2004, Fund Accountant (2000-2003), Matthews International
Capital Management, LLC; Supervisor of Fund Accounting, SEI Investments,
1999-2000.
|
N/A
|
N/A
|
OFFICER(S)
WHO ARE NOT TRUSTEES2
|
Manoj
K. Pombra
Born
1964
Four
Embarcadero Center Suite 550
San
Francisco, CA 94111
|
Chief
Compliance Officer
|
Since
2005
|
Chief
Compliance Officer, Matthews International Capital Management,
LLC since
March 2005; Senior Manager, Mutual Fund Compliance/Manager Portfolio
Compliance, Franklin Templeton Investments,
April
2001-March 2005; Senior
Financial Reporting Manager, InfoUSA.com,
May
2000-March 2001.
|
N/A
|
N/A
|
1 |
Each
Trustee serves for an indefinite term, until retirement age or
until
his/her successor is elected. Officers serve at the pleasure of
the Board
of Trustees.
|
2
|
These
Trustees and officers are considered “interested persons” of the Trust as
defined under the 1940 Act either because of an ownership interest
in the
Advisor or an office held with the Trust.
|
Name
of Trustee
|
Dollar
Range of
Equity
Securities in the Matthews Asian Funds
|
Aggregate
Dollar Range of
Equity
Securities in All Registered Investment Companies Overseen by Trustee
within the Family of Investment Companies
|
Richard
K. Lyons
|
§ Matthews
Pacific Tiger Fund $10,001-$50,000
§ Matthews
Asian Growth and Income Fund Above $100,000
|
Above
$100,000
|
Robert
K. Connolly
|
§ Matthews
Asian Growth and Income Fund $10,001-$50,000
§ Matthews
China Fund $1-$10,000
§ Matthews
Asia Pacific Fund $1-$10,000
|
$10,001-$50,000
|
Toshi
Shibano
|
§ Matthews
China Fund $10,001-$50,000
|
$10,001-$50,000
|
Geoffrey
H. Bobroff
|
§ Matthews
Asian Growth and Income Fund ($10,001-$50,000)
§ Matthews
Pacific Tiger Fund ($10,001-$50,000)
|
$10,001-$50,000
|
Rhoda
Rossman
|
§ Matthews
Asian Growth and Income Fund ($10,001-$50,000)
§ Matthews
India Fund ($10,001-$50,000)
|
$10,001-$50,000
|
David
FitzWilliam-Lay
|
None
|
None
|
G.
Paul Matthews
|
§ Matthews
Asia Pacific Fund ($10,001-$50,000)
§ Matthews
Pacific Tiger Fund (Above $100,000)
§ Matthews
Asian Growth and Income Fund (Above $100,000)
§ Matthews
Asian Technology Fund ($10,001-$50,000)
§ Matthews
China Fund ($10,001-$50,000)
§ Matthews
India Fund ($10,001-$50,000)
§ Matthews
Japan Fund ($10,001-$50,000)
§ Matthews
Korea Fund ($10,001-$50,000)
|
Above
$100,000
|
Fiscal
Year End of 12-31-05
|
||||
Independent
Trustee
|
Aggregate
Compensation
from
the Trust
|
Pension
or Retirement Benefits Accrued as Part of Fund Expenses
|
Estimated
Annual
Benefits Upon
Retirement
|
Total
Compensation
From
Fund
Complex
Paid
to Trustees*
|
Richard
K. Lyons
|
$36,500
|
None
|
None
|
$36,500
|
Robert
K. Connolly
|
$29,000
|
None
|
None
|
$29,000
|
Toshi
Shibano
|
$29,000
|
None
|
None
|
$29,000
|
* |
Since
the Fund has not commenced operations, no portion of the above
amounts is
allocable to the Fund. Once the Fund commences operations, it would
pay
its allocated portion of said compensation on a prorated
basis.
|
1.
|
Its
allocated portion of the fees and expenses of the Trust’s Independent
Trustees;
|
2.
|
Its
allocated portion of the salaries and expenses of the Trust’s officers or
employees who are not affiliated with the
Advisor;
|
3.
|
Interest
expenses;
|
4.
|
Taxes
and governmental fees;
|
5.
|
Brokerage
commissions and other expenses incurred in acquiring or disposing
of
portfolio securities;
|
6.
|
The
expenses of registering and qualifying shares for sale with the
SEC and
with various state securities
commissions;
|
7.
|
Accounting
and legal costs;
|
8.
|
Its
allocated portion of the Trust’s insurance
premiums;
|
9.
|
Its
allocated portion of fees and expenses of the Trust’s custodian,
administrator and transfer agent and any related
services;
|
10.
|
Expenses
of obtaining quotations of the Fund’s portfolio securities and of pricing
the Fund’s shares;
|
11.
|
Its
allocated portion of expenses of maintaining the Trust’s legal existence
and of shareholders’ meetings;
|
12.
|
Its
allocated portion of expenses of preparation and distribution to
existing
shareholders of reports, proxies and prospectuses;
|
13.
|
Its
allocated portion of fees and expenses of membership in industry
organizations; and
|
14.
|
Its
allocated portion of expenses related to the development and maintenance
of the Trust’s Compliance Program as required by the 1940
Act.
|
Name
of
Portfolio
Manager
|
Account
Category
|
Number
of Accounts
|
Total
Assets in Accounts
|
Number
of Accounts Where Advisory Fee is Based on Account Performance
|
Total
Assets in Accounts Where Advisory Fee is Based on Account
Performance
|
Andrew
T. Foster
Lead
Portfolio Manager of the Matthews India Fund; Co-Portfolio Manager
of the
Matthews Asia Pacific, Asian Growth and Income, and Asian Technology
Funds.
|
Registered
Investment Companies
|
1
|
$______
|
0
|
0
|
Other
Pooled Investment Vehicles
|
1
|
$76,942,108
|
0
|
0
|
|
Other
Accounts
|
0
|
0
|
0
|
0
|
|
Jesper
Madsen
|
Registered
Investment Companies
|
0
|
0
|
0
|
0
|
Other
Pooled Investment Vehicles
|
0
|
o
|
0
|
0
|
|
Other
Accounts
|
0
|
0
|
0
|
0
|
Base Salary |
Each
portfolio manager receives a fixed base salary that takes into
account his
or her experience and responsibilities and is intended to be competitive
with salaries offered by other similar
firms.
|
Bonus
|
The
Advisor emphasizes teamwork and a focus on client needs. Bonuses
are
structured to emphasize those principles and are based on a number
of
factors, including the profitability of the Advisor, the employee’s
contributions to the firm, the performance of accounts managed
by the
employee and, in some cases, assets under management.
|
Benefit
Programs
|
Portfolio
managers participate in benefit plans and programs available generally
to
all employees.
|
Equity
Ownership
|
Most
portfolio managers are members of the Advisor, which is a private
limited
liability company. An employee’s interest in the Advisor provides
pass-through income of the Advisor’s profits and losses. Subject to
certain required amounts, member distributions are generally determined
based on considerations of the Advisor’s working capital requirements and
on estimated tax liabilities associated with the pass-through of
income.
|
Item
23.
|
Exhibits
|
(a)
|
Trust
Instrument and Certificate of Trust is incorporated herein by
reference to
and was filed electronically with Post-Effective Amendment No.
5 on
December 26, 1996.
|
(b)
|
By-Laws
are incorporated herein by reference to and were filed electronically
with
Post-Effective Amendment No. 5 on December 26, 1996.
|
(c)
|
Not
Applicable.
|
(d)(1)
|
Form
of Investment Advisory Agreement between Matthews International
Funds and
Matthews International Capital Management, LLC, is incorporated
herein by
reference to and was filed electronically with Post-Effective
Amendment
No. 16 on December 21, 2001.
|
(d)(2)
|
Investment
Advisory Agreement between Matthews International Capital Management,
LLC
and Matthews International Funds on behalf of the Matthews Asia
Pacific
Fund, dated October 31, 2003, is incorporated herein by reference
to and
was filed electronically with Post-Effective Amendment No. 20
on December
23, 2003.
|
(d)(3)
|
Investment
Advisory Agreement between Matthews International Capital Management,
LLC
and Matthews International Funds on behalf of each series of
the Trust,
dated August 31, 2004, is incorporated herein by reference to
and was
filed electronically with Post-Effective Amendment No. 22 on
October 28,
2004.
|
(d)(4)
|
Amended
Appendix A to the Investment Advisory Agreement between Matthews
International Capital Management, LLC and Matthews International
Funds,
dated August 12, 2005 to reflect the addition of the Matthews
India Fund,
is incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 27 on October 31, 2005.
|
(d)(5)
|
Amended
Appendix A to the Investment Advisory Agreement between Matthews
International Capital Management, LLC and Matthews International
Funds,
dated August 11, 2006 to reflect the addition of the Matthews
Asia Pacific
Equity Income Fund, is filed herewith.
|
(e)(1)
|
Underwriting
Agreement for Matthews International Funds with PFPC Distributors,
Inc.,
dated December 31, 2000, is incorporated herein by reference
to and was
filed electronically with Post-Effective Amendment No. 16 on
July 16,
2001.
|
(e)(2)
|
Amended
Schedule A to Underwriting Agreement for Matthews International
Funds with
PFPC Distributors, Inc., dated August 15, 2003 to reflect the
addition of
the Matthews Asia Pacific Fund, is incorporated herein by reference
to and
was filed electronically with Post-Effective Amendment No. 20
on December
23, 2003.
|
(e)(3)
|
Amended
Schedule A to Underwriting Agreement for Matthews International
Funds with
PFPC Distributors, Inc., dated August 12, 2005 to reflect the
addition of
the Matthews India Fund, is incorporated herein by reference
to and was
filed electronically with Post-Effective Amendment No. 27 on
October 31,
2005.
|
(e)(4)
|
Amended
Schedule A to Underwriting Agreement for Matthews International
Funds with
PFPC Distributors, Inc., dated August 11, 2006 to reflect the
addition of
the Matthews Asia Pacific Equity Income Fund, is filed
herewith.
|
(f)
|
Not
Applicable.
|
(g)(1)
|
Custody
Agreement with The Bank of New York, dated September 25, 2000
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 16 on December 21, 2001.
|
(g)(2)
|
Amended
Schedule II to Custody Agreement with The Bank of New York, dated
August
15, 2003 to reflect the addition of the Matthews Asia Pacific
Fund, is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 20 on December 23, 2003.
|
(g)(3)
|
Amended
Schedule II to Custody Agreement with The Bank of New York, dated
August
12, 2005 to reflect the addition of the Matthews India Fund,
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 27 on October 31, 2005.
|
(g)(4)
|
Amended
Schedule II to Custody Agreement with The Bank of New York, dated,
dated
August 11, 2006 to reflect the addition of the Matthews Asia
Pacific
Equity Income Fund, is filed herewith.
|
(h)(1)
|
Investment
Company Services Agreement for Matthews International Funds with
FPS Services, Inc., dated October 1, 1997, is incorporated herein
by
reference to and was filed electronically with Post-Effective
Amendment
No. 8 on December 31, 1997.
|
(h)(1)(i)
|
Amendment
to Investment Company Services Agreement dated November 11, 1997,
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 8 on December 31, 1997.
|
(h)(1)(ii)
|
Amendment
to Investment Company Services Agreement, dated July 31, 1998,
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 16 on December 21, 2001.
|
(h)(1)(iii)
|
Amendment
to Investment Company Services Agreement, dated December 30,
1998, is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 16 on December 21, 2001.
|
(h)(1)(iv)
|
Amendment
No. 3 to Investment Company Services Agreement, dated October
15, 1999, is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 13 on December 20, 1999.
|
(h)(1)(v)
|
Amendment
to Investment Company Services Agreement, dated December 1, 1999,
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 13 on December 20, 1999.
|
(h)(1)(vi)
|
Amendment
to Investment Company Services Agreement, dated May 1, 2001,
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 16 on December 21, 2001.
|
(h)(1)(vii)
|
Anti-Money
Laundering and Privacy Amendment dated, July 24, 2002 to Investment
Company Services Agreement, is incorporated herein by reference
to and was
filed electronically with Post-Effective Amendment No. 18 on
July 18,
2003.
|
(h)(1)(viii)
|
Amendment
to Investment Company Services Agreement, dated August 1, 2002,
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 18 on July 18, 2003.
|
(h)(1)(ix)
|
Amendment
to Investment Company Services Agreement, dated August 15, 2003
to reflect
the addition of the Matthews Asia Pacific Fund, is incorporated
herein by
reference to and was filed electronically with Post-Effective
Amendment
No. 20 on December 23, 2003.
|
(h)(1)(x)
|
Customer
Identification Services Amendment to Investment Company Services
Agreement, dated October 1, 2003, is incorporated herein by reference
to
and was filed electronically with Post-Effective Amendment No.
20 on
December 23, 2003.
|
(h)(1)(xi)
|
Amended
and Restated Investment Company Services Agreement dated June
1, 2004 is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 27 on October 31, 2005.
|
(h)(1)(xii)
|
Amended
Schedule A to Investment Company Services Agreement, dated August
12, 2005
to reflect the addition of the Matthews India Fund, is incorporated
herein
by reference to and was filed electronically with Post-Effective
Amendment
No. 27 on October 31, 2005.
|
(h)(1)(xiii)
|
Amended
Schedule A to Investment Company Services Agreement, dated, dated
August
11, 2006 to reflect the addition of the Matthews Asia Pacific
Equity
Income Fund, is filed herewith.
|
(h)(2)(i)
|
Shareholder
Services Agreement between Matthews International Funds and Matthews
International Capital Management, LLC, dated April 17, 1998 and
as amended
April 3, 2002, is incorporated herein by reference to and was
filed
electronically with Post-Effective Amendment No. 18 on July 18,
2003.
|
(h)(2)(ii)
|
Amendment
to Shareholder Services Agreement between Matthews International
Funds and
Matthews International Capital Management, LLC, dated August
15, 2003 is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 20 on December 23, 2003.
|
(h)(2)(iii)
|
Administration
and Shareholder Services Agreement between Matthews International
Funds
and Matthews International Capital Management, LLC, dated August
31, 2004
is incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 22 on October 28, 2004.
|
(h)(2)(iv)
|
Amended
Schedule A to Administration and Shareholder Services Agreement
between
Matthews International Funds and Matthews International Capital
Management, LLC, dated August 12, 2005 to reflect the addition
of the
Matthews India Fund, is incorporated herein by reference to and
was filed
electronically with Post-Effective Amendment No. 27 on October
31,
2005.
|
(h)(2)(v)
|
Amended
Schedule A to Administration and Shareholder Services Agreement
between
Matthews International Funds and Matthews International Capital
Management, LLC, dated, dated August 11, 2006 to reflect the
addition of
the Matthews Asia Pacific Equity Income Fund, is filed
herewith.
|
(h)(3)
|
Operating
Expenses Agreement between Matthews International Funds and Matthews
International Capital Management, LLC, dated November 14, 2003
is
incorporated herein by reference to and was filed electronically
with
Post-Effective Amendment No. 28 on April 28, 2006.
|
(h)(3)(i)
|
Amendment
to Operating Expenses Agreement Operating Expenses Agreement
between
Matthews International Funds and Matthews International Capital
Management, LLC, dated August 12, 2005 to reflect the addition
of the
Matthews India Fund is incorporated herein by reference to and
was filed
electronically with Post-Effective Amendment No. 28 on April
28, 2006.
|
(h)(3)(ii)
|
Amendment
to Operating Expenses Agreement Operating Expenses Agreement
between
Matthews International Funds and Matthews International Capital
Management, LLC, dated, dated August 11, 2006 to reflect the
addition of
the Matthews Asia Pacific Equity Income Fund, is filed
herewith.
|
(i)
|
Legal
Opinion and Consent of Counsel will be filed by amendment pursuant
to Rule
485(b) prior to effective date.
|
(j)
|
Consent
of Independent Registered Public Accounting Firm will be filed
by
amendment to Rule 485(b) prior to effective date.
|
(k)
|
Not
Applicable.
|
(l)
|
Not
Applicable.
|
(m)(1)
|
12b-1
Plan is incorporated herein by reference to and filed electronically
with
Post-Effective Amendment No. 13 on December 20, 1999.
|
(m)(2)
|
Distribution
Plan - Class A dated August 13, 2004 is incorporated herein by
reference
to and was filed electronically with Post-Effective Amendment
No. 27 on
October 31, 2005.
|
(n)
|
Not
Applicable.
|
(o)
|
Second
amended and restated 18f-3 Plan is incorporated herein by reference
to and
was filed electronically with Post-Effective Amendment No. 16
on December
21, 2001.
|
(p)(1)
|
Code
of Ethics of Matthews International Funds is incorporated herein
by
reference to and was filed electronically with Post-Effective
Amendment
No. 16 on December 21, 2001.
|
(p)(2)
|
Code
of Ethics of Matthews International Capital Management, LLC is
incorporated herein by reference to and filed electronically
with
Post-Effective Amendment No. 14 on October 12, 2000.
|
(p)(3)
|
Code
of Ethics of Matthews Asian Funds and Matthews International
Capital
Management, LLC, dated December 15, 2003, is incorporated herein
by
reference to and was filed electronically with Post-Effective
Amendment
No. 20 on December 23, 2003.
|
(p)(4)
|
Code
of Ethics of Matthews Asian Funds and Matthews International
Capital
Management, LLC, dated October 11, 2004, is incorporated herein
by
reference and was filed electronically with Post-Effective Amendment
No.
23 on December 29, 2004.
|
(p)(5)
|
Code
of Ethics of Matthews Asian Funds and Matthews International
Capital
Management, LLC, dated May 2005, is incorporated herein by reference
and
was filed electronically with Post-Effective Amendment No, 26
on August
10, 2005.
|
(q)(1)
|
Power
of Attorney dated, November 14, 2003, is incorporated herein
by reference
to and was filed electronically with Post-Effective Amendment
No. 20 on
December 23, 2003.
|
(q)(2)
|
Power
of Attorney dated, January 27, 2004, is incorporated herein by
reference
to and was filed electronically with Post-Effective Amendment
No. 21 on
January 28, 2004.
|
(q)(3)
|
Power
of Attorney dated, August 12, 2005, is incorporated herein by
reference to
and was filed electronically with Post-Effective Amendment No.
27 on
October 31, 2005.
|
(q)(4)
|
Power
of Attorney dated May 25, 2006, is filed herewith.
|
Item
24.
|
Persons
Controlled by or under Common Control with the
Registrant
|
Not
Applicable.
|
|
Item
25.
|
Indemnification
|
Name
and Position with the Advisor
|
Other
Company
|
Position
With Other Company
|
G.
Paul Matthews
Chairman
and Chief Investment Officer
|
Matthews
International Funds (d/b/a Matthews Asian Funds)
Four
Embarcadero Center
San
Francisco, CA 94111
|
President
|
Mathews
Asian Selections Funds Plc
Floor
3
Brooklawn
House
Crampton
Ave.
Ballsbridge
Dublin
4, Ireland
|
Director
|
Mark
W. Headley
President,
Chief Executive Officer and Portfolio Manager
|
Matthews
International Funds (d/b/a Matthews Asian Funds)
Four
Embarcadero Center
San
Francisco, CA 94111
|
Vice
President
|
Mathews
Asian Selections Funds Plc
Floor
3
Brooklawn
House
Crampton
Ave.
Ballsbridge
Dublin
4, Ireland
|
Director
|
|
Robert
L. Schooler
Controller
|
None
|
N/A
|
John
P. McGowan
Chief
Operating Officer
|
Matthews
International Funds (d/b/a Matthews Asian Funds)
Four
Embarcadero Center
San
Francisco, CA 94111
|
Vice
President and Secretary
|
Mathews
Asian Selections Funds Plc
Floor
3
Brooklawn
House
Crampton
Ave.
Ballsbridge
Dublin
4, Ireland
|
Director
|
|
Andrew
T. Foster
Director
of Research
|
None
|
N/A
|
David
C.R. Harding
Managing
Director, Client Service
and
Marketing
|
None
|
N/A
|
Anna
Schweizer
Member,
Board of Representatives
|
W.R.
Hambrecht + Co
539
Bryant Street
Suite
100
San
Francisco, CA 94107
|
Director,
Strategy and Business Development
|
Vernon
C. Kozlen
Member,
Board of Representatives
|
City
National Corporation City National Center
400
North Roxbury Drive
Suite
800
Beverly
Hills, CA 90210
|
Executive
Vice President and Director of Asset Management
Development
|
Item
27.
|
Principal
Underwriter
|
|
(a)
|
PFPC
Distributors, Inc. (the “Distributor”) acts as principal underwriter for
the following investment companies as of July 31, 2006:
|
|
AFBA
5 Star Funds, Inc.
|
|||
Atlantic
Whitehall Funds Trust
|
|||
CRM
Mutual Fund Trust
|
|||
E.I.I.
International Property Fund
|
|||
E.I.I.
Realty Securities
|
|||
GuideStone
Funds
|
|||
Highland
Floating Rate Fund
|
|||
Highland
Floating Rate Advantage Fund
|
|||
Harris
Insight Funds Trust
|
|||
Kalmar
Pooled Investment Trust
|
|||
Matthews
Asian Funds
|
|||
Metropolitan
West Funds
|
|||
Old
Westbury Funds
|
|||
The
RBB Fund, Inc.
|
|||
RS
Investment Trust
|
|||
Stratton
Growth Fund, Inc.
|
|||
Stratton
Monthly Dividend REIT Shares, Inc.
|
|||
The
Stratton Funds, Inc.
|
|||
Van
Wagoner Funds
|
|||
Wilshire
Mutual Funds, Inc.
|
|||
Wilshire
Variable Insurance Trust
|
|||
Distributed
by BlackRock Distributors, Inc., a wholly owned subsidiary
of PFPC
Distributors, Inc.:
|
|||
BlackRock
Funds
|
|||
BlackRock
Bond Allocation Target Shares
|
|||
BlackRock
Liquidity Funds
|
|||
International
Dollar Reserve Fund I, Ltd.
|
|||
Distributed
by MGI Funds Distributors, Inc., a wholly owned subsidiary
of PFPC
Distributors, Inc.:
|
|||
MGI
Funds
|
|||
Distributed
by Northern Funds Distributors, LLC., a wholly owned subsidiary
of PFPC
Distributors, Inc.:
|
|||
Northern
Funds
|
|||
Northern
Institutional Funds
|
Distributed
by ABN AMRO Distribution Services (USA), Inc., a wholly owned
subsidiary
of PFPC Distributors, Inc.:
|
|||
ABN
AMRO Funds
|
|||
PFPC
Distributors, Inc. is a Massachusetts corporation located
at 301 Bellevue
Parkway, Wilmington, DE 19809. The Distributor is a wholly-owned
subsidiary of PFPC, Inc. and an indirect wholly-owned subsidiary
of The
PNC Financial Services Group, Inc., a publicly traded
company.
|
||||
(b)
|
The
following is a list of the executive officers, directors,
and partners of
PFPC Distributors, Inc.:
|
Brian
Burns
|
-
|
Chairman,
Chief Executive Officer,
|
|
Director
and President
|
|||
Michael
Denofrio
|
-
|
Director
|
|
Nick
Marsini
|
-
|
Director
|
|
Rita
G. Adler
|
-
|
Chief
Compliance Officer
|
|
John
Munera
|
-
|
Anti-Money
Laundering Officer
|
|
Christine
A. Ritch
|
-
|
Chief
Legal Officer,
|
|
Assistant
Secretary and Assistant Clerk
|
|||
Julie
Bartos
|
-
|
Assistant
Secretary and Assistant Clerk
|
|
Bradley
A. Stearns
|
-
|
Secretary
and Clerk
|
|
Amy
Brennan
|
-
|
Assistant
Secretary and Assistant Clerk
|
|
Craig
Stokarski
|
-
|
Treasurer,
Chief Financial Officer and Financial & Operations
Principal
|
|
Maria
Schaffer
|
-
|
Controller
and Assistant Treasurer
|
|
Bruno
Di Stefano
|
-
|
Vice
President
|
|
Susan
K. Moscaritolo
|
-
|
Vice
President
|
(c)
|
Not
applicable.
|
Item
28.
|
Location
of Accounts and Records
|
|
Books
or other documents required to be maintained by Section 31(a)
of the
Investment Company Act of 1940, and the rules promulgated thereunder,
are
maintained as follows:
|
||
(a)
|
With
respect to Rules 31a-1(a); 31a-1(b)(1); (2)(a) and (b); (3);
(6); (8);
(12); and 31a-1(d), the required books and records will be
maintained at
the offices of Registrant’s Custodian:
The
Bank of New York, One Wall Street, New York, N.Y. 10286
|
|
(b)/(c)
|
With
respect to Rules 31a-1(a); 31a-1(b),(4); (2)(C) and (D); (4);
and
31a-1(f), the required books and records are maintained at
the offices of
Registrant’s Administrator, Transfer Agent and Fund Accounting Services
Agent:
|
|
PFPC
Inc., 760 Moore Road, King of Prussia, 19406-0903.
|
||
(c)
|
With
respect to Rules 31a-1(b)(5), (6), (9), (10) and (11) and 31a-1(f),
the
required books and records are maintained at the principal
offices of the
Registrant’s Advisor:
|
|
Matthews
International Capital Management, LLC, Four Embarcadero Center,
Suite 550,
San Francisco, CA 94111
|
||
Item
29.
|
Management
Services
|
|
Not
Applicable.
|
||
Item
30.
|
Undertakings
|
|
Not
Applicable.
|
Signature
|
Capacity
|
Date
|
||
/s/
G. Paul Matthews
|
President
and Principal Executive Officer
|
August
15, 2006
|
||
G.
Paul Matthews
|
||||
/s/
Shai Malka
|
Treasurer
|
August
15, 2006
|
||
Shai
Malka
|
||||
/s/
Geoffrey H. Bobroff*
|
Trustee
|
August
15, 2006
|
||
Geoffrey
H. Bobroff
|
||||
/s/
Robert K. Connolly*
|
Trustee
|
August
15, 2006
|
||
Robert
K. Connolly
|
||||
/s/
Richard K. Lyons*
|
Trustee
|
August
15, 2006
|
||
Richard
K. Lyons
|
||||
/s/
David FitzWilliam-Lay*
|
Trustee
|
August
15, 2006
|
||
David
FitzWilliam-Lay
|
||||
/s/
Rhoda Rossman*
|
Trustee
|
August
15, 2006
|
||
Rhoda
Rossman
|
||||
/s/
Toshi Shibano*
|
Trustee
|
August
15, 2006
|
||
Toshi
Shibano
|
EXHIBIT
NO.
|
DESCRIPTION
|
|
(d)(5)
|
Amended
Appendix A to the Investment Advisory Agreement between Matthews
International Capital Management, LLC and Matthews International
Funds,
dated August 11, 2006, to reflect the addition of the Matthews
Asia
Pacific Equity Income Fund
|
|
(e)(4)
|
Amended
Schedule A to Underwriting Agreement for Matthews International
Funds with
PFPC Distributors, Inc., dated August 11, 2006 to reflect the
addition of
the Matthews Asia Pacific Equity Income Fund
|
|
(g)(4)
|
Amended
Schedule II to Custody Agreement with The Bank of New York,
dated August
11, 2006 to reflect the addition of the Matthews Asia Pacific
Equity
Income Fund
|
|
(h)(1)(xiii)
|
Amended
Schedule A to Investment Company Services Agreement, dated
August 11, 2006
to reflect the addition of the Matthews Asia Pacific Equity
Income
Fund
|
|
(h)(2)(v)
|
Amended
Schedule A to Administration and Shareholder Services Agreement
between
Matthews International Funds and Matthews International Capital
Management, LLC, dated August 11, 2006 to reflect the addition
of the
Matthews Asia Pacific Equity Income Fund
|
|
(h)(3)(ii)
|
Amendment
to Operating Expenses Agreement dated August 11, 2006 to reflect
the
addition of the Matthews Asia Pacific Equity Income Fund
|
(q)(4)
|
Power
of Attorney Dated May 25,
2006
|