UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-08510
Matthews International Funds
(Exact name of registrant as specified in charter)
Four Embarcadero Center, Suite 550
San Francisco, CA 94111
(Address of principal executive offices) (Zip code)
William J. Hackett, President
Four Embarcadero Center, Suite 550
San Francisco, CA 94111
(Name and address of agent for service)
Registrants telephone number, including area code: 415-788-6036
Date of fiscal year end: December 31
Date of reporting period: September 30, 2008
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments.
The Schedule(s) of Investments is attached herewith.
MATTHEWS ASIA PACIFIC FUND | September 30, 2008 | |
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
COMMON EQUITIES: 100.2% |
|||||
SHARES | VALUE | ||||
JAPAN: 47.7% |
|||||
Pigeon Corp. |
334,300 | $ | 9,426,069 | ||
Unicharm Petcare Corp. |
290,700 | 8,712,890 | |||
Benesse Corp. |
201,100 | 8,213,795 | |||
Ichiyoshi Securities Co., Ltd. |
764,900 | 8,022,241 | |||
Nintendo Co., Ltd. |
18,800 | 7,974,467 | |||
Sysmex Corp. |
159,800 | 7,061,715 | |||
Funai Zaisan Consultants Co., Ltd.+ |
7,081 | 5,861,171 | |||
Yahoo! Japan Corp. |
17,612 | 5,765,593 | |||
GCA Savvian Group Corp. |
2,007 | 5,579,104 | |||
The Sumitomo Trust & Banking Co., Ltd. |
748,000 | 4,983,509 | |||
Nidec Corp. |
79,500 | 4,890,739 | |||
Takeda Pharmaceutical Co., Ltd. |
95,600 | 4,813,517 | |||
ORIX Corp. |
37,950 | 4,751,646 | |||
Daibiru Corp. |
598,700 | 4,515,203 | |||
Nomura Research Institute, Ltd. |
208,900 | 4,299,435 | |||
Honda Motor Co., Ltd. ADR |
131,400 | 3,956,454 | |||
Fanuc, Ltd. |
47,500 | 3,573,511 | |||
Sumitomo Realty & Development Co., Ltd. |
162,000 | 3,528,154 | |||
Sekisui House, Ltd. |
383,000 | 3,516,333 | |||
Keyence Corp. |
16,300 | 3,251,575 | |||
Mitsubishi Estate Co., Ltd. |
162,000 | 3,192,234 | |||
Nitto Denko Corp. |
123,500 | 3,141,915 | |||
NGK Insulators, Ltd. |
216,000 | 2,644,365 | |||
Mori Trust Sogo REIT, Inc. |
308 | 2,361,385 | |||
Monex Group, Inc. |
6,094 | 2,207,229 | |||
Hoya Corp. |
97,300 | 1,930,216 | |||
Sony Corp. ADR |
44,000 | 1,358,280 | |||
Total Japan |
129,532,745 | ||||
CHINA/HONG KONG: 25.9% |
|||||
Tingyi (Cayman Islands) Holding Corp. |
5,998,000 | 7,007,303 | |||
Kingdee International Software Group Co., Ltd. |
32,406,000 | 6,247,171 | |||
Dongfeng Motor Group Co., Ltd. H Shares |
14,558,000 | 5,357,845 | |||
China Life Insurance Co., Ltd. H Shares |
1,367,000 | 5,092,566 | |||
Ctrip.com International, Ltd. ADR |
120,400 | 4,648,644 | |||
China Mobile, Ltd. ADR |
92,000 | 4,607,360 | |||
Dairy Farm International Holdings, Ltd. |
891,000 | 4,483,197 | |||
Hang Lung Group, Ltd. |
1,379,000 | 4,368,173 | |||
Lenovo Group, Ltd. |
8,928,000 | 3,940,425 | |||
Shangri-La Asia, Ltd. |
2,556,000 | 3,661,874 | |||
China Merchants Bank Co., Ltd. H Shares |
1,459,500 | 3,524,540 | |||
Ping An Insurance (Group) Co. of China, Ltd. H Shares |
574,000 | 3,361,324 | |||
China South Locomotive and Rolling Stock Corp., H Sharesb |
8,334,900 | 3,166,572 | |||
China Vanke Co., Ltd. B Shares |
4,109,922 | 2,891,056 | |||
Pico Far East Holdings, Ltd. |
34,010,000 | 2,890,612 | |||
China Merchants Holdings International Co., Ltd. |
848,000 | 2,720,156 | |||
China Yurun Food Group, Ltd. |
1,659,000 | 2,163,304 | |||
Total China/Hong Kong |
70,132,122 | ||||
INDIA: 7.0% |
|||||
Sun Pharmaceutical Industries, Ltd. |
201,218 | 6,432,056 | |||
HDFC Bank, Ltd. |
221,500 | 5,823,404 | |||
Bharti Airtel, Ltd.b |
205,528 | 3,486,049 | |||
Dabur India, Ltd. |
736,185 | 1,446,755 | |||
Infosys Technologies, Ltd. |
47,503 | 1,444,686 | |||
Financial Technologies India, Ltd. |
20,015 | 448,947 | |||
Total India |
19,081,897 | ||||
1
SOUTH KOREA: 5.1% |
||||||||
Shinhan Financial Group Co., Ltd. |
113,517 | 4,061,366 | ||||||
NHN Corp.b |
20,470 | 2,625,734 | ||||||
Amorepacific Corp. |
4,091 | 2,212,047 | ||||||
Hanmi Pharmaceutical Co., Ltd. |
22,170 | 2,184,691 | ||||||
Hyundai Department Store Co., Ltd. |
17,652 | 1,372,575 | ||||||
Kiwoom Securities Co., Ltd. |
29,370 | 719,659 | ||||||
Modetour Network, Inc. |
49,754 | 664,711 | ||||||
Total South Korea |
13,840,783 | |||||||
AUSTRALIA: 4.2% |
||||||||
AXA Asia Pacific Holdings, Ltd. |
1,227,841 | 5,052,199 | ||||||
Computershare, Ltd. |
437,302 | 3,305,885 | ||||||
CSL Australia, Ltd. |
96,188 | 2,914,008 | ||||||
Total Australia |
11,272,092 | |||||||
THAILAND: 3.6% |
||||||||
Land & Houses Public Co., Ltd. |
19,564,700 | 3,712,727 | ||||||
Advanced Info Service Public Co., Ltd. |
1,329,800 | 3,193,818 | ||||||
Siam Commercial Bank Public Co., Ltd. |
1,264,400 | 2,609,884 | ||||||
Major Cineplex Group Public Co., Ltd. |
1,255,000 | 359,380 | ||||||
Total Thailand |
9,875,809 | |||||||
INDONESIA: 2.5% |
||||||||
Bank Rakyat Indonesia |
6,988,500 | 3,948,464 | ||||||
PT Astra International |
1,578,000 | 2,814,774 | ||||||
Total Indonesia |
6,763,238 | |||||||
TAIWAN: 2.3% |
||||||||
Taiwan Secom Co., Ltd. |
3,348,160 | 4,834,379 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. |
846,135 | 1,418,995 | ||||||
Total Taiwan |
6,253,374 | |||||||
SINGAPORE: 1.9% |
||||||||
Hyflux, Ltd. |
1,937,812 | 3,291,601 | ||||||
Keppel Land, Ltd. |
951,000 | 1,899,446 | ||||||
Total Singapore |
5,191,047 | |||||||
TOTAL INVESTMENTS: 100.2% (Cost $309,094,394c) |
271,943,107 | |||||||
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS: -0.2% |
(547,944 | ) | ||||||
NET ASSETS: 100.0% |
$ | 271,395,163 | ||||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $309,094,394 and net unrealized depreciation consists of: |
Gross unrealized appreciation |
$ | 29,692,698 | ||
Gross unrealized depreciation |
(66,843,985 | ) | ||
Net unrealized depreciation |
$ | (37,151,287 | ) | |
|
Affiliated Issuer, as defined under the Investment Company Act of 1940 (ownership of 5% or more of the outstanding voting securities of this issuer) |
ADR | American Depositary Receipt |
See accompanying notes to schedules of investments.
2
MATTHEWS ASIA PACIFIC EQUITY INCOME FUND | September 30, 2008 | |
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
COMMON EQUITIES: 96.1% |
|||||
SHARES | VALUE | ||||
JAPAN: 20.5% |
|||||
Lawson, Inc. |
75,700 | $ | 3,490,926 | ||
Eisai Co., Ltd. |
69,800 | 2,725,688 | |||
The Sumitomo Trust & Banking Co., Ltd. |
383,000 | 2,551,716 | |||
Benesse Corp. |
54,800 | 2,238,269 | |||
Monex Group, Inc. |
4,594 | 1,663,934 | |||
Nomura Research Institute, Ltd. |
67,000 | 1,378,948 | |||
Takeda Pharmaceutical Co., Ltd. |
24,700 | 1,243,660 | |||
Hitachi Koki Co., Ltd. |
108,000 | 1,101,335 | |||
Tokyu REIT, Inc. |
155 | 1,007,624 | |||
MID Reit, Inc. |
364 | 859,827 | |||
United Urban Investment Corp., REIT |
125 | 548,108 | |||
Total Japan |
18,810,035 | ||||
CHINA/HONG KONG: 17.9% |
|||||
VTech Holdings, Ltd. |
452,000 | 2,643,677 | |||
CLP Holdings, Ltd. |
289,500 | 2,335,323 | |||
BOC Hong Kong Holdings, Ltd. |
1,116,000 | 1,995,151 | |||
Television Broadcasts, Ltd. |
432,000 | 1,834,494 | |||
Café de Coral Holdings, Ltd. |
912,000 | 1,590,151 | |||
ASM Pacific Technology, Ltd. |
242,000 | 1,398,752 | |||
Sa Sa International Holdings, Ltd. |
4,094,000 | 1,219,763 | |||
Pico Far East Holdings, Ltd. |
10,696,000 | 909,085 | |||
Next Media, Ltd. |
3,466,000 | 846,937 | |||
Hang Seng Bank, Ltd. |
32,600 | 616,274 | |||
Huaneng Power International, Inc. H Shares |
836,000 | 555,812 | |||
Huaneng Power International, Inc. ADR |
17,500 | 465,850 | |||
Total China/Hong Kong |
16,411,269 | ||||
TAIWAN: 15.4% |
|||||
Taiwan Semiconductor Manufacturing Co., Ltd. |
2,411,313 | 4,043,849 | |||
Chunghwa Telecom Co., Ltd. |
1,157,727 | 2,723,477 | |||
Cyberlink Corp. |
540,339 | 2,124,986 | |||
Taiwan Secom Co., Ltd. |
1,086,000 | 1,568,066 | |||
President Chain Store Corp. |
485,000 | 1,429,746 | |||
Johnson Health Tech Co., Ltd. |
1,216,860 | 1,379,052 | |||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR |
50,339 | 471,677 | |||
Chunghwa Telecom Co., Ltd. ADR |
18,000 | 426,060 | |||
Total Taiwan |
14,166,913 | ||||
THAILAND: 8.2% |
|||||
Advanced Info Service Public Co., Ltd. |
810,600 | 1,946,841 | |||
Siam Makro Public Co., Ltd. |
760,000 | 1,848,979 | |||
Thai Beverage Public Co., Ltd. |
10,200,000 | 1,596,406 | |||
Thai Tap Water Supply Public Co., Ltd.b |
12,129,500 | 1,533,203 | |||
PTT Public Co., Ltd. |
91,500 | 627,997 | |||
Total Thailand |
7,553,426 | ||||
AUSTRALIA: 7.6% |
|||||
Billabong International, Ltd. |
185,951 | 2,076,368 | |||
Coca-Cola Amatil, Ltd. |
309,730 | 2,067,997 | |||
AXA Asia Pacific Holdings, Ltd. |
413,439 | 1,701,178 | |||
Insurance Australia Group, Ltd. |
330,121 | 1,095,763 | |||
Total Australia |
6,941,306 | ||||
SINGAPORE: 5.8% |
|||||
Singapore Press Holdings, Ltd. |
1,036,000 | 2,890,413 | |||
Venture Corp., Ltd. |
275,000 | 1,496,135 | |||
Parkway Life REIT |
1,430,868 | 972,791 | |||
Total Singapore |
5,359,339 | ||||
MALAYSIA: 5.7% |
|||||
Top Glove Corp. BHD |
1,757,100 | 2,049,517 | |||
Public Bank BHD |
676,000 | 1,974,946 | |||
Media Prima BHD |
3,235,900 | 1,236,433 | |||
Total Malaysia |
5,260,896 | ||||
3
SOUTH KOREA: 4.4% |
|||||||
SK Telecom Co., Ltd. |
10,570 | 1,809,300 | |||||
SK Telecom Co., Ltd. ADR |
69,300 | 1,304,226 | |||||
Hana Financial Group, Inc. |
37,640 | 885,195 | |||||
Total South Korea |
3,998,721 | ||||||
UNITED KINGDOM: 3.6% |
|||||||
HSBC Holdings PLC ADR |
26,900 | 2,174,327 | |||||
HSBC Holdings PLC |
70,800 | 1,130,732 | |||||
Total United Kingdom |
3,305,059 | ||||||
PHILIPPINES: 3.1% |
|||||||
Globe Telecom, Inc. |
130,560 | 2,883,817 | |||||
Total Philippines |
2,883,817 | ||||||
INDONESIA: 2.5% |
|||||||
PT Telekomunikasi Indonesia ADR |
55,200 | 1,643,856 | |||||
PT Telekomunikasi Indonesia |
859,000 | 641,613 | |||||
Total Indonesia |
2,285,469 | ||||||
INDIA: 1.4% |
|||||||
HCL-Infosystems, Ltd. |
340,167 | 765,554 | |||||
Chennai Petroleum Corp., Ltd. |
105,000 | 483,759 | |||||
Total India |
1,249,313 | ||||||
TOTAL COMMON EQUITIES (Cost $103,102,981) |
88,225,563 | ||||||
PREFERRED EQUITIES: 2.8% |
|||||||
JAPAN: 2.8% |
|||||||
Ito En, Ltd., Pfd. |
246,700 | 2,570,657 | |||||
Total Japan |
2,570,657 | ||||||
TOTAL PREFERRED EQUITIES (Cost $2,711,890) |
2,570,657 | ||||||
TOTAL INVESTMENTS: 98.9% (Cost $105,814,871c) |
90,796,220 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 1.1% |
967,466 | ||||||
NET ASSETS: 100.0% |
$ | 91,763,686 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $105,814,871 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 2,980,673 | ||
Gross unrealized depreciation | (17,999,324 | ) | ||
Net unrealized depreciation | $ | (15,018,651 | ) | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Pfd. | Preferred |
See accompanying notes to schedules of investments.
4
MATTHEWS PACIFIC TIGER FUND | September 30, 2008 | |
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
COMMON EQUITIES: 100.2% |
|||||
SHARES | VALUE | ||||
CHINA/HONG KONG: 34.9% |
|||||
Swire Pacific, Ltd. A Shares |
6,272,000 | $ | 55,131,786 | ||
Dairy Farm International Holdings, Ltd. |
10,138,100 | 51,011,340 | |||
Tencent Holdings, Ltd. |
6,880,600 | 50,292,687 | |||
Hang Lung Group, Ltd. |
15,747,000 | 49,880,796 | |||
Ping An Insurance (Group) Co. of China, Ltd. H Shares |
7,696,000 | 45,067,513 | |||
Lenovo Group, Ltd. |
100,368,000 | 44,298,004 | |||
NWS Holdings, Ltd. |
22,086,636 | 39,631,759 | |||
NetEase.com, Inc. ADRb |
1,479,000 | 33,721,200 | |||
Dongfeng Motor Group Co., Ltd. H Shares |
89,326,000 | 32,875,042 | |||
China Mobile, Ltd. ADR |
610,550 | 30,576,344 | |||
Television Broadcasts, Ltd. |
7,167,700 | 30,437,736 | |||
Ctrip.com International, Ltd. ADR |
772,475 | 29,825,260 | |||
China Resources Enterprise, Ltd. |
11,750,000 | 28,690,460 | |||
Focus Media Holding, Ltd. ADRb |
973,913 | 27,766,260 | |||
Shangri-La Asia, Ltd. |
19,268,000 | 27,604,453 | |||
China Merchants Bank Co., Ltd. H Shares |
11,084,500 | 26,767,910 | |||
China Vanke Co., Ltd. B Shares |
34,472,360 | 24,249,006 | |||
Travelsky Technology, Ltd. H Shares+ |
40,812,000 | 20,272,177 | |||
China Yurun Food Group, Ltd. |
13,968,000 | 18,214,002 | |||
Glorious Sun Enterprises, Ltd. |
41,262,000 | 17,261,017 | |||
Towngas China Co., Ltd.b |
51,937,000 | 16,572,691 | |||
Integrated Distribution Services Group, Ltd. |
10,491,000 | 14,271,158 | |||
New Oriental Education & Technology Group, Inc. ADRb |
208,800 | 13,413,312 | |||
Dickson Concepts International, Ltd.+ |
32,547,900 | 10,895,835 | |||
Dah Sing Financial Holdings, Ltd. |
2,348,400 | 9,921,916 | |||
Dynasty Fine Wines Group, Ltd. |
725,000 | 102,213 | |||
Total China/Hong Kong |
748,751,877 | ||||
INDIA: 19.0% |
|||||
Sun Pharmaceutical Industries, Ltd. |
2,040,363 | 65,221,447 | |||
HDFC Bank, Ltd. |
2,242,184 | 58,948,729 | |||
Dabur India, Ltd. |
25,730,888 | 50,566,504 | |||
Bharti Airtel, Ltd.b |
2,881,740 | 48,878,441 | |||
Infosys Technologies, Ltd. |
1,263,401 | 38,423,221 | |||
Cipla India, Ltd. |
6,800,750 | 33,443,591 | |||
Titan Industries, Ltd. |
1,286,895 | 31,049,798 | |||
Bank of Baroda |
3,993,505 | 25,766,780 | |||
Kotak Mahindra Bank, Ltd. |
1,792,941 | 21,568,192 | |||
Sintex Industries, Ltd. |
3,210,014 | 19,760,722 | |||
Sun TV Network, Ltd. |
2,637,292 | 11,413,553 | |||
HDFC Bank, Ltd. ADR |
40,000 | 3,398,000 | |||
Total India |
408,438,978 | ||||
SOUTH KOREA: 14.8% |
|||||
NHN Corp.b |
351,902 | 45,139,275 | |||
Amorepacific Corp. |
83,434 | 45,113,623 | |||
S1 Korea Corp. |
833,228 | 42,448,166 | |||
Yuhan Corp. |
218,497 | 39,187,342 | |||
Hanmi Pharmaceutical Co., Ltd. |
374,233 | 36,877,914 | |||
Samsung Securities Co., Ltd. |
514,989 | 32,562,888 | |||
MegaStudy Co., Ltd. |
183,231 | 27,908,354 | |||
Hana Financial Group, Inc. |
1,155,743 | 27,180,072 | |||
Hyundai Development Co. |
541,382 | 20,222,266 | |||
ON*Media Corp.b |
604,550 | 1,359,971 | |||
Total South Korea |
317,999,871 | ||||
SINGAPORE: 7.9% |
|||||
Hyflux, Ltd. |
24,090,187 | 40,920,004 | |||
DBS Group Holdings, Ltd. |
3,420,750 | 40,765,912 | |||
Parkway Holdings, Ltd. |
28,144,540 | 37,281,834 | |||
Keppel Land, Ltd. |
11,182,000 | 22,333,968 | |||
Fraser and Neave, Ltd. |
7,626,750 | 19,129,642 | |||
Tat Hong Holdings, Ltd. |
11,947,000 | 9,070,316 | |||
Total Singapore |
169,501,676 | ||||
5
THAILAND: 6.8% |
||||||||
Advanced Info Service Public Co., Ltd. |
24,188,500 | 58,094,191 | ||||||
Bank of Ayudhya Public Co., Ltd. NVDR |
63,468,600 | 30,862,010 | ||||||
Land & Houses Public Co., Ltd. |
154,102,800 | 29,243,569 | ||||||
Amata Corp. Public Co., Ltd.+ |
58,667,900 | 14,624,178 | ||||||
Bangkok Bank Public Co., Ltd. |
3,954,900 | 12,116,999 | ||||||
Total Thailand |
144,940,947 | |||||||
INDONESIA: 6.1% |
||||||||
PT Bank Central Asia |
131,525,000 | 43,321,757 | ||||||
PT Telekomunikasi Indonesia |
44,860,500 | 33,507,678 | ||||||
PT Kalbe Farma |
348,388,000 | 23,735,749 | ||||||
PT Astra International |
13,017,230 | 23,219,623 | ||||||
PT Telekomunikasi Indonesia ADR |
259,500 | 7,727,910 | ||||||
Total Indonesia |
131,512,717 | |||||||
TAIWAN: 5.4% |
||||||||
President Chain Store Corp. |
20,669,000 | 60,930,782 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. |
24,381,362 | 40,888,322 | ||||||
Hon Hai Precision Industry Co., Ltd. |
3,901,950 | 13,975,596 | ||||||
Total Taiwan |
115,794,700 | |||||||
MALAYSIA: 4.7% |
||||||||
Public Bank BHD |
15,777,900 | 46,095,406 | ||||||
Resorts World BHD |
49,121,200 | 36,592,904 | ||||||
Top Glove Corp. BHD+ |
15,609,880 | 18,207,681 | ||||||
Total Malaysia |
100,895,991 | |||||||
PHILIPPINES: 0.6% |
||||||||
SM Prime Holdings, Inc. |
68,769,117 | 12,378,834 | ||||||
Total Philippines |
12,378,834 | |||||||
TOTAL COMMON EQUITIES (Cost $2,173,518,200) |
2,150,215,591 | |||||||
RIGHTS: 0.0% |
||||||||
SINGAPORE: 0.0% |
||||||||
Tat Hong Holdings, Ltd., expire 08/02/13 |
1,194,700 | 120,563 | ||||||
Total Singapore |
120,563 | |||||||
TOTAL RIGHTS |
120,563 | |||||||
(Cost $) |
||||||||
TOTAL INVESTMENTS: 100.2% (Cost $2,173,518,200c) |
2,150,336,154 | |||||||
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS: -0.2% |
(4,606,983 | ) | ||||||
NET ASSETS: 100.0% |
$ | 2,145,729,171 | ||||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $2,173,518,200 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 346,972,596 | ||
Gross unrealized depreciation | (370,154,642 | ) | ||
Net unrealized depreciation | $ | (23,182,046 | ) | |
|
Affiliated Issuer, as defined under the Investment Company Act of 1940 (ownership of 5% or more of the outstanding voting securities of this issuer) |
ADR | American Depositary Receipt |
NVDR | Non-voting Depositary Receipt |
See accompanying notes to schedules of investments.
6
MATTHEWS ASIAN GROWTH AND INCOME FUND |
September 30, 2008 | ||||
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
|||||
COMMON EQUITIES: 71.0% |
|||||
SHARES | VALUE | ||||
CHINA/HONG KONG: 25.8% |
|||||
CLP Holdings, Ltd. |
5,219,700 | $ | 42,105,998 | ||
Hang Seng Bank, Ltd. |
1,849,600 | 34,965,065 | |||
Café de Coral Holdings, Ltd. |
16,031,100 | 27,951,614 | |||
Television Broadcasts, Ltd. |
6,568,000 | 27,891,102 | |||
HongKong Electric Holdings, Ltd. |
4,176,000 | 26,229,328 | |||
VTech Holdings, Ltd. |
4,331,300 | 25,333,090 | |||
Vitasoy International Holdings, Ltd. |
50,051,000 | 21,904,765 | |||
Next Media, Ltd. |
86,614,000 | 21,164,621 | |||
Hang Lung Group, Ltd. |
6,586,000 | 20,862,064 | |||
Hong Kong & China Gas Co., Ltd. |
8,553,490 | 19,525,178 | |||
PCCW, Ltd. |
46,799,000 | 19,500,318 | |||
BOC Hong Kong Holdings, Ltd. |
10,562,000 | 18,882,420 | |||
Hang Lung Properties, Ltd. |
8,019,920 | 18,879,167 | |||
Giordano International, Ltd. |
52,249,000 | 18,248,724 | |||
ASM Pacific Technology, Ltd. |
2,986,800 | 17,263,611 | |||
CITIC Pacific, Ltd. |
5,747,000 | 16,799,252 | |||
I-CABLE Communications, Ltd.+ |
129,832,000 | 15,262,569 | |||
Shandong Weigao Group Medical Polymer Co., Ltd. H Shares |
2,148,000 | 3,224,095 | |||
China-Hong Kong Photo Products Holdings, Ltd. |
14,998,003 | 954,469 | |||
Total China/Hong Kong |
396,947,450 | ||||
SINGAPORE: 12.9% |
|||||
Singapore Press Holdings, Ltd. |
16,866,500 | 47,057,095 | |||
Ascendas REIT |
23,090,000 | 30,502,583 | |||
DBS Group Holdings, Ltd. |
1,904,000 | 22,690,433 | |||
Parkway Holdings, Ltd. |
15,419,093 | 20,424,994 | |||
Fraser and Neave, Ltd. |
7,444,100 | 18,671,514 | |||
Cerebos Pacific, Ltd. |
8,208,000 | 18,400,178 | |||
Singapore Post, Ltd. |
24,105,000 | 16,113,182 | |||
Parkway Life REIT |
20,436,110 | 13,893,710 | |||
Hong Leong Finance, Ltd. |
4,567,000 | 9,446,333 | |||
Yellow Pages Singapore, Ltd. |
6,423,000 | 1,743,376 | |||
Total Singapore |
198,943,398 | ||||
TAIWAN: 9.1% |
|||||
Taiwan Semiconductor Manufacturing Co., Ltd. |
28,737,469 | 48,193,653 | |||
President Chain Store Corp. |
10,312,000 | 30,399,062 | |||
Chunghwa Telecom Co., Ltd. ADR |
1,066,004 | 25,232,315 | |||
Cathay Financial Holding Co., Ltd. |
12,905,240 | 17,820,188 | |||
Cyberlink Corp. |
3,932,862 | 15,466,721 | |||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR |
391,708 | 3,670,304 | |||
Total Taiwan |
140,782,243 | ||||
SOUTH KOREA: 5.1% |
|||||
SK Telecom Co., Ltd. |
170,752 | 29,228,155 | |||
Hana Financial Group, Inc. |
795,809 | 18,715,359 | |||
KT Corp. ADR |
718,800 | 12,068,652 | |||
SK Telecom Co., Ltd. ADR |
522,200 | 9,827,804 | |||
Daehan City Gas Co., Ltd. |
280,300 | 7,222,625 | |||
KT Corp. |
43,200 | 1,491,695 | |||
Total South Korea |
78,554,290 | ||||
7
JAPAN: 4.6% |
||||||
Trend Micro, Inc. |
749,500 | 28,407,740 | ||||
Nippon Building Fund, Inc., REIT |
2,715 | 26,246,350 | ||||
Japan Real Estate Investment Corp., REIT |
1,911 | 15,420,548 | ||||
Total Japan |
70,074,638 | |||||
THAILAND: 4.5% |
||||||
Advanced Info Service Public Co., Ltd. |
15,852,900 | 38,074,349 | ||||
BEC World Public Co., Ltd. |
42,623,300 | 27,035,510 | ||||
Thai Reinsurance Public Co., Ltd. |
25,672,800 | 4,397,585 | ||||
Total Thailand |
69,507,444 | |||||
UNITED KINGDOM: 3.0% |
||||||
HSBC Holdings PLC ADR |
573,300 | 46,339,839 | ||||
Total United Kingdom |
46,339,839 | |||||
AUSTRALIA: 2.3% |
||||||
AXA Asia Pacific Holdings, Ltd. |
6,011,562 | 24,735,780 | ||||
Insurance Australia Group, Ltd. |
3,215,377 | 10,672,730 | ||||
Total Australia |
35,408,510 | |||||
PHILIPPINES: 1.4% |
||||||
Globe Telecom, Inc. |
954,380 | 21,080,402 | ||||
Total Philippines |
21,080,402 | |||||
INDONESIA: 1.3% |
||||||
PT Telekomunikasi Indonesia ADR |
665,900 | 19,830,502 | ||||
Total Indonesia |
19,830,502 | |||||
INDIA: 1.0% |
||||||
Sun Pharmaceutical Industries, Ltd. |
470,814 | 15,049,857 | ||||
Total India |
15,049,857 | |||||
TOTAL COMMON EQUITIES (Cost $1,057,807,728) |
1,092,518,573 | |||||
PREFERRED EQUITIES: 2.1% |
||||||
SOUTH KOREA: 2.1% |
||||||
Hyundai Motor Co., Ltd., Pfd. |
566,280 | 11,200,052 | ||||
LG Household & Health Care, Ltd., Pfd. |
177,830 | 7,809,549 | ||||
Samsung Fire & Marine Insurance Co., Ltd., Pfd. |
119,550 | 7,041,078 | ||||
Hyundai Motor Co., Ltd., 2nd Pfd. |
305,760 | 6,598,642 | ||||
Total South Korea |
32,649,321 | |||||
TOTAL PREFERRED EQUITIES (Cost $19,413,954) |
32,649,321 | |||||
INTERNATIONAL DOLLAR BONDS: 25.4% |
||||||
FACE AMOUNT | ||||||
CHINA/HONG KONG: 9.4% |
||||||
Hongkong Land CB 2005, Ltd., Cnv. |
$ | 50,900,000 | 44,333,900 | |||
China Petroleum & Chemical Corp. (Sinopec), Cnv. |
295,950,000 | b | 34,397,944 | |||
FU JI Food and Catering Services Holdings, Ltd., Cnv. 0.000%, 10/18/10 |
247,500,000 | b | 26,426,969 | |||
Yue Yuen Industrial Holdings, Ltd., Cnv. |
177,190,000 | b | 21,678,526 | |||
Brilliance China Finance, Ltd., Cnv. |
13,600,000 | 12,308,000 | ||||
PB Issuer, Ltd., Cnv. |
8,060,000 | 5,601,700 | ||||
Total China/Hong Kong |
144,747,039 | |||||
8
INDIA: 7.1% |
|||||||
Reliance Communications, Ltd., Cnv. |
27,615,000 | 27,891,150 | |||||
Tata Motors, Ltd., Cnv. |
27,349,000 | 25,530,291 | |||||
Rolta India, Ltd., Cnv. |
22,116,000 | 19,572,660 | |||||
Sintex Industries, Ltd., Cnv. |
20,900,000 | 18,287,500 | |||||
Financial Technologies India Ltd., Cnv. |
17,960,000 | 17,555,900 | |||||
Total India |
108,837,501 | ||||||
MALAYSIA: 6.9% |
|||||||
Rafflesia Capital, Ltd., Cnv. |
42,100,000 | 42,310,500 | |||||
Cherating Capital, Ltd., Cnv. |
44,900,000 | 41,487,600 | |||||
Prime Venture Labuan, Ltd., Cnv. |
11,170,000 | 11,770,387 | |||||
YTL Power Finance Cayman, Ltd., Cnv. |
11,000,000 | 11,412,500 | |||||
Total Malaysia |
106,980,987 | ||||||
SOUTH KOREA: 2.0% |
|||||||
SK Telecom Co., Ltd., Cnv. |
29,430,000 | 31,572,504 | |||||
Total South Korea |
31,572,504 | ||||||
TOTAL INTERNATIONAL DOLLAR BONDS (Cost $442,847,218) |
392,138,031 | ||||||
TOTAL INVESTMENTS: 98.5% (Cost $1,520,068,900d) |
1,517,305,925 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 1.5% |
22,530,183 | ||||||
NET ASSETS: 100.0% |
$ | 1,539,836,108 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Face amount reflects principal in local currency. |
c |
Variable rate security. The rate represents the rate in effect at September 30, 2008. |
d |
Cost of investments is $1,520,068,900 and net unrealized depreciation consists of: |
Gross unrealized appreciation |
$ | 164,163,879 | ||
Gross unrealized depreciation |
(166,926,854 | ) | ||
Net unrealized depreciation |
$ | (2,762,975 | ) | |
|
Affiliated Issuer, as defined under the Investment Company Act of 1940 (ownership of 5% or more of the outstanding voting securities of this issuer) |
ADR | American Depositary Receipt |
Cnv. | Convertible |
Pfd. | Preferred |
REIT | Real Estate Investment Trust |
See accompanying notes to schedules of investments.
9
MATTHEWS ASIA SMALL COMPANIES FUND |
September 30, 2008 | ||||
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
|||||
COMMON EQUITIES: 89.4% |
|||||
SHARES | VALUE | ||||
CHINA/HONG KONG: 25.8% |
|||||
Towngas China Co., Ltd.b |
153,000 | $ | 48,821 | ||
Times, Ltd. |
118,000 | 44,070 | |||
Ctrip.com International, Ltd. ADR |
1,100 | 42,471 | |||
Shandong Weigao Group Medical Polymer Co., Ltd. H Shares |
28,000 | 42,027 | |||
New Oriental Education & Technology Group, Inc. ADRb |
450 | 28,908 | |||
Sina China Corp.b |
700 | 24,640 | |||
China Green Holdings, Ltd. |
30,000 | 24,182 | |||
Kingdee International Software Group Co., Ltd. |
116,000 | 22,362 | |||
Ajisen China Holdings, Ltd. |
38,000 | 22,185 | |||
Golden Eagle Retail Group, Ltd. |
18,000 | 14,714 | |||
Total China/Hong Kong |
314,380 | ||||
INDIA: 19.1% |
|||||
CRISIL, Ltd. |
636 | 47,736 | |||
Container Corp. of India, Ltd. |
2,452 | 43,831 | |||
Dabur India, Ltd. |
19,494 | 38,310 | |||
Asian Paints, Ltd. |
1,364 | 34,767 | |||
Sintex Industries, Ltd. |
4,017 | 24,728 | |||
Jain Irrigation Systems, Ltd. |
1,898 | 16,482 | |||
India Infoline, Ltd. |
6,369 | 13,552 | |||
HT Media, Ltd. |
6,081 | 13,211 | |||
Total India |
232,617 | ||||
TAIWAN: 14.7% |
|||||
Everlight Electronic Co., Ltd. |
18,000 | 37,718 | |||
104 Corp. |
14,000 | 33,898 | |||
Zinwell Corp. |
22,000 | 31,212 | |||
Shin Zu Shing Co., Ltd. |
7,000 | 28,911 | |||
St. Shine Optical Co., Ltd. |
7,000 | 25,637 | |||
Chroma ATE, Inc. |
18,000 | 22,091 | |||
Total Taiwan |
179,467 | ||||
SOUTH KOREA : 14.4% |
|||||
Hankook Tire Co., Ltd. |
3,360 | 47,146 | |||
MegaStudy Co., Ltd. |
278 | 42,343 | |||
Jinsung T.E.C. |
3,099 | 31,387 | |||
NICE e-Banking Services Co., Ltd. |
11,783 | 30,333 | |||
Kiwoom Securities Co., Ltd. |
982 | 24,062 | |||
Total South Korea |
175,271 | ||||
SINGAPORE: 11.4% |
|||||
Singapore Airport Terminal Services, Ltd. |
44,000 | 50,518 | |||
Armstrong Industrial Corp., Ltd. |
295,000 | 36,334 | |||
Tat Hong Holdings, Ltd. |
32,000 | 24,295 | |||
Goodpack, Ltd. |
16,000 | 15,833 | |||
Ezra Holdings, Ltd. |
16,000 | 12,937 | |||
Total Singapore |
139,917 | ||||
10
MALAYSIA: 4.0% |
|||||||
JobStreet Corp. BHD |
64,500 | 31,782 | |||||
Riverstone Holdings, Ltd. |
45,000 | 16,413 | |||||
Total Malaysia |
48,195 | ||||||
TOTAL INVESTMENTS: 89.4% |
1,089,847 | ||||||
(Cost $1,103,226c) |
|||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 10.6% |
129,484 | ||||||
NET ASSETS: 100.0% |
$ | 1,219,331 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $1,103,226 and net unrealized depreciation consists of: |
Gross unrealized appreciation |
$ | 17,822 | ||||
Gross unrealized depreciation |
(31,201 | ) | ||||
Net unrealized depreciation |
$ | (13,379 | ) | |||
ADR | American Depositary Receipt |
See accompanying notes to schedules of investments.
11
MATTHEWS ASIAN TECHNOLOGY FUND |
September 30, 2008 | ||||
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
|||||
COMMON EQUITIES: 99.7% |
|||||
SHARES | VALUE | ||||
CHINA/HONG KONG: 35.3% |
|||||
Tencent Holdings, Ltd. |
834,400 | $ | 6,098,918 | ||
Baidu.com, Inc. ADRb |
24,000 | 5,957,520 | |||
New Oriental Education & Technology Group, Inc. ADRb |
78,100 | 5,017,144 | |||
China Mobile, Ltd. ADR |
91,100 | 4,562,288 | |||
Sina China Corp.b |
119,400 | 4,202,880 | |||
Ctrip.com International, Ltd. ADR |
105,500 | 4,073,355 | |||
Mindray Medical International, Ltd. ADR |
85,000 | 2,867,050 | |||
Kingdee International Software Group Co., Ltd. |
13,080,000 | 2,521,539 | |||
China Communications Services Corp., Ltd. H Shares |
3,528,000 | 2,457,118 | |||
Perfect World Co., Ltd. ADRb |
94,124 | 2,112,143 | |||
Focus Media Holding, Ltd. ADRb |
61,700 | 1,759,067 | |||
Lenovo Group, Ltd. |
2,748,000 | 1,212,846 | |||
The9, Ltd. ADRb |
39,560 | 664,212 | |||
Total China/Hong Kong |
43,506,080 | ||||
JAPAN: 19.7% |
|||||
Nintendo Co., Ltd. |
10,885 | 4,617,132 | |||
Yahoo! Japan Corp. |
9,361 | 3,064,485 | |||
Nidec Corp. |
40,900 | 2,516,116 | |||
Mixi, Inc.b |
349 | 2,498,458 | |||
Toray Industries, Inc. |
525,000 | 2,464,777 | |||
Sony Corp. |
77,800 | 2,399,166 | |||
Nikon Corp. |
81,000 | 1,943,112 | |||
Nomura Research Institute, Ltd. |
93,000 | 1,914,061 | |||
Ibiden Co., Ltd. |
60,800 | 1,480,123 | |||
Sumco Corp. |
84,100 | 1,331,122 | |||
Total Japan |
24,228,552 | ||||
SOUTH KOREA: 15.8% |
|||||
NHN Corp.b |
46,812 | 6,004,682 | |||
Samsung Electronics Co., Ltd. |
11,092 | 5,082,951 | |||
LG Electronics, Inc. |
31,568 | 2,920,948 | |||
JVM Co., Ltd. |
139,221 | 2,012,294 | |||
MegaStudy Co., Ltd. |
7,685 | 1,170,521 | |||
SFA Engineering Corp. |
21,534 | 960,141 | |||
ON*Media Corp.b |
326,820 | 735,201 | |||
CDNetworks Co., Ltd.b |
91,327 | 534,299 | |||
Total South Korea |
19,421,037 | ||||
INDIA: 13.7% |
|||||
Bharti Airtel, Ltd.b |
314,726 | 5,338,204 | |||
Rolta India, Ltd. |
584,443 | 3,018,856 | |||
Sun Pharmaceutical Industries, Ltd. |
65,091 | 2,080,674 | |||
Infosys Technologies, Ltd. |
62,352 | 1,896,282 | |||
Glenmark Pharmaceuticals, Ltd. |
178,971 | 1,893,260 | |||
Television Eighteen India, Ltd. |
306,976 | 1,226,375 | |||
Info Edge India, Ltd. |
85,558 | 1,090,534 | |||
Tata Consultancy Services, Ltd. |
24,466 | 351,632 | |||
Total India |
16,895,817 | ||||
12
TAIWAN: 11.5% |
|||||||
MediaTek, Inc. |
371,789 | 3,855,228 | |||||
Hon Hai Precision Industry Co., Ltd. |
937,550 | 3,358,019 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. |
1,555,854 | 2,609,217 | |||||
Synnex Technology International Corp. |
1,637,000 | 2,565,996 | |||||
InnoLux Display Corp. |
1,164,084 | 1,560,800 | |||||
Epistar Corp. |
215,686 | 292,703 | |||||
Total Taiwan |
14,241,963 | ||||||
INDONESIA: 2.2% |
|||||||
PT Telekomunikasi Indonesia ADR |
90,600 | 2,698,068 | |||||
Total Indonesia |
2,698,068 | ||||||
THAILAND: 1.5% |
|||||||
Advanced Info Service Public Co., Ltd. |
786,600 | 1,889,199 | |||||
Total Thailand |
1,889,199 | ||||||
TOTAL INVESTMENTS: 99.7% (Cost $140,096,638c) |
122,880,716 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 0.3% |
368,208 | ||||||
NET ASSETS: 100.0% |
$ | 123,248,924 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $140,096,638 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 15,398,179 | ||
Gross unrealized depreciation | (32,614,101 | ) | ||
Net unrealized depreciation | $ | (17,215,922 | ) | |
ADR | American Depositary Receipt |
See accompanying notes to schedules of investments.
13
MATTHEWS CHINA FUND |
September 30, 2008 | ||||
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
|||||
COMMON EQUITIES: CHINA/HONG KONG: 99.6% |
|||||
SHARES | VALUE | ||||
CONSUMER DISCRETIONARY: 22.4% |
|||||
Hotels, Restaurants & Leisure: 4.5% |
|||||
Café de Coral Holdings, Ltd. |
11,428,100 | $ | 19,925,884 | ||
Shangri-La Asia, Ltd. |
7,315,600 | 10,480,752 | |||
China Travel International Investment HK, Ltd. |
38,412,000 | 8,728,622 | |||
Ctrip.com International, Ltd. ADR |
162,300 | 6,266,403 | |||
45,401,661 | |||||
Distributors: 3.0% |
|||||
China Resources Enterprise, Ltd. |
7,650,000 | 18,679,321 | |||
Li & Fung, Ltd. |
4,663,200 | 11,411,068 | |||
30,090,389 | |||||
Automobiles: 2.9% |
|||||
Dongfeng Motor Group Co., Ltd. H Shares |
78,950,000 | 29,056,317 | |||
Textiles, Apparel & Luxury Goods: 2.7% |
|||||
Glorious Sun Enterprises, Ltd. |
33,994,000 | 14,220,615 | |||
Ports Design, Ltd. |
7,461,500 | 13,666,044 | |||
27,886,659 | |||||
Media: 2.6% |
|||||
Television Broadcasts, Ltd. |
2,542,000 | 10,794,638 | |||
AirMedia Group, Inc. ADRb |
923,800 | 6,882,310 | |||
Clear Media, Ltd.b |
10,128,000 | 5,133,645 | |||
Pico Far East Holdings, Ltd. |
49,062,000 | 4,169,927 | |||
26,980,520 | |||||
Diversified Consumer Services: 2.6% |
|||||
New Oriental Education & Technology Group, Inc. ADRb |
411,800 | 26,454,032 | |||
Multiline Retail: 1.6% |
|||||
Golden Eagle Retail Group, Ltd. |
19,390,000 | 15,850,194 | |||
Specialty Retail: 1.3% |
|||||
Belle International Holdings, Ltd. |
17,840,000 | 12,818,852 | |||
Leisure Equipment & Products: 1.2% |
|||||
Li Ning Co., Ltd. |
6,686,500 | 11,730,415 | |||
Total Consumer Discretionary |
226,269,039 | ||||
FINANCIALS: 16.8% |
|||||
Commercial Banks: 6.4% |
|||||
China Merchants Bank Co., Ltd. H Shares |
8,009,000 | 19,340,899 | |||
BOC Hong Kong Holdings, Ltd. |
8,909,500 | 15,928,131 | |||
China Construction Bank Corp. H Shares |
23,392,000 | 15,608,697 | |||
Bank of Communications Co., Ltd. H Shares |
15,501,000 | 14,117,637 | |||
64,995,364 | |||||
Real Estate Management & Development: 6.0% |
|||||
China Vanke Co., Ltd. B Shares |
28,600,748 | 20,118,718 | |||
Swire Pacific, Ltd. A Shares |
2,180,000 | 19,162,515 | |||
Hang Lung Group, Ltd. |
4,694,000 | 14,868,893 | |||
Agile Property Holdings, Ltd. |
13,704,000 | 6,260,412 | |||
60,410,538 | |||||
Insurance: 4.4% |
|||||
Ping An Insurance (Group) Co. of China, Ltd. H Shares |
4,619,500 | 27,051,634 | |||
China Life Insurance Co., Ltd. H Shares |
4,592,000 | 17,106,850 | |||
44,158,484 | |||||
Total Financials |
169,564,386 | ||||
14
INFORMATION TECHNOLOGY: 14.8% |
||||
Internet Software & Services: 7.3% |
||||
Sina China Corp.b |
934,300 | 32,887,360 | ||
Tencent Holdings, Ltd. |
2,904,000 | 21,226,341 | ||
NetEase.com, Inc. ADRb |
840,900 | 19,172,520 | ||
73,286,221 | ||||
Software: 2.8% |
||||
Kingdee International Software Group Co., Ltd.+ |
102,944,000 | 19,845,362 | ||
The9, Ltd. ADRb |
532,300 | 8,937,317 | ||
28,782,679 | ||||
Computers & Peripherals: 2.3% |
||||
Lenovo Group, Ltd. |
30,336,000 | 13,388,971 | ||
TPV Technology, Ltd. |
31,868,000 | 9,754,977 | ||
23,143,948 | ||||
Communications Equipment: 1.8% |
||||
ZTE Corp. H Shares |
4,816,920 | 18,245,642 | ||
IT Services: 0.6% |
||||
Travelsky Technology, Ltd. H Shares |
12,178,000 | 6,049,068 | ||
Total Information Technology |
149,507,558 | |||
INDUSTRIALS: 13.4% |
||||
Transportation Infrastructure: 4.6% |
||||
GZI Transport, Ltd. |
36,765,000 | 15,695,336 | ||
China Merchants Holdings International Co., Ltd. |
3,732,581 | 11,973,118 | ||
Beijing Capital International Airport Co., Ltd. H Shares |
13,332,000 | 11,011,883 | ||
COSCO Pacific, Ltd. |
6,730,000 | 7,724,157 | ||
46,404,494 | ||||
Electrical Equipment: 2.6% |
||||
China High Speed Transmission Equipment Group Co., Ltd. |
14,289,000 | 26,151,703 | ||
Construction & Engineering: 2.0% |
||||
China Railway Construction Corp., Ltd. H Sharesb |
8,107,000 | 10,704,313 | ||
China Communications Construction Co., Ltd. H Shares |
10,709,000 | 9,401,815 | ||
20,106,128 | ||||
Industrial Conglomerates: 1.9% |
||||
NWS Holdings, Ltd. |
11,017,276 | 19,769,151 | ||
Machinery: 1.5% |
||||
Shanghai Zhenhua Port Machinery Co., Ltd. B Shares |
17,202,573 | 15,625,992 | ||
Airlines: 0.8% |
||||
Air China, Ltd. H Shares |
16,937,900 | 7,654,578 | ||
Total Industrials |
135,712,046 | |||
UTILITIES: 11.8% |
||||
Independent Power Producers & Energy Traders: 4.4% |
||||
Datang International Power Generation Co., Ltd. H Shares |
36,732,000 | 20,503,158 | ||
Huaneng Power International, Inc. H Shares |
26,630,000 | 17,704,878 | ||
Huaneng Power International, Inc. ADR |
213,400 | 5,680,708 | ||
43,888,744 | ||||
Electric Utilities: 3.8% |
||||
Cheung Kong Infrastructure Holdings, Ltd. |
8,257,500 | 38,427,469 | ||
Gas Utilities: 3.6% |
||||
Hong Kong & China Gas Co., Ltd. |
15,899,594 | 36,294,239 | ||
Total Utilities |
118,610,452 | |||
CONSUMER STAPLES: 7.1% |
15
Food Products: 4.3% |
|||||||
China Yurun Food Group, Ltd. |
17,085,000 | 22,278,509 | |||||
Tingyi (Cayman Islands) Holding Corp. |
17,865,000 | 20,871,200 | |||||
43,149,709 | |||||||
Food & Staples Retailing: 1.8% |
|||||||
Lianhua Supermarket Holdings Co., Ltd. H Shares+ |
12,995,000 | 17,821,773 | |||||
Beverages: 1.0% | |||||||
Tsingtao Brewery Co., Ltd. H Shares |
5,727,000 | 10,352,402 | |||||
Total Consumer Staples |
71,323,884 | ||||||
TELECOMMUNICATION SERVICES: 6.4% | |||||||
Wireless Telecommunication Services: 4.5% | |||||||
China Mobile, Ltd. |
2,766,083 | 27,709,728 | |||||
China Mobile, Ltd. ADR |
345,400 | 17,297,632 | |||||
45,007,360 | |||||||
Diversified Telecommunication Services: 1.9% |
|||||||
China Communications Services Corp., Ltd. H Shares |
27,806,000 | 19,365,819 | |||||
Total Telecommunication Services |
64,373,179 | ||||||
ENERGY: 5.5% | |||||||
Oil, Gas & Consumable Fuels: 4.3% |
|||||||
CNOOC, Ltd. |
16,912,000 | 18,998,877 | |||||
China Petroleum & Chemical Corp. (Sinopec) H Shares |
16,242,000 | 12,818,710 | |||||
China Shenhua Energy Co., Ltd. H Shares |
5,019,500 | 12,312,441 | |||||
44,130,028 | |||||||
Energy Equipment & Services: 1.2% |
|||||||
China Oilfield Services, Ltd. H Shares |
12,740,000 | 11,803,734 | |||||
Total Energy |
55,933,762 | ||||||
MATERIALS: 1.4% |
|||||||
Construction Materials: 1.0% |
|||||||
China National Building Material Co., Ltd. H Shares |
8,606,000 | 9,933,665 | |||||
Paper & Forest Products: 0.4% | |||||||
Nine Dragons Paper Holdings, Ltd. |
10,157,000 | 3,799,639 | |||||
Total Materials |
13,733,304 | ||||||
TOTAL INVESTMENTS: 99.6% (Cost $1,157,375,506c) |
1,005,027,610 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 0.4% |
4,112,346 | ||||||
NET ASSETS: 100.0% |
$ | 1,009,139,956 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $1,157,375,506 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 86,843,248 | ||||
Gross unrealized depreciation | (239,191,144 | ) | ||||
Net unrealized depreciation | $ | (152,347,896 | ) | |||
| Affiliated Issuer, as defined under the Investment Company Act of 1940 (ownership of 5% or more of the outstanding voting securities of this issuer) |
ADR | American Depositary Receipt |
See accompanying notes to schedules of investments.
16
MATTHEWS INDIA FUND |
September 30, 2008 | |||
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
||||
COMMON EQUITIES: INDIA: 97.7% |
SHARES | VALUE | ||||
FINANCIALS: 20.1% |
|||||
Commercial Banks: 13.7% |
|||||
Axis Bank, Ltd. |
1,464,200 | $ | 22,867,536 | ||
HDFC Bank, Ltd. |
845,533 | 22,229,708 | |||
Corporation Bank |
3,084,331 | 18,198,094 | |||
Oriental Bank of Commerce |
2,596,834 | 8,296,607 | |||
HDFC Bank, Ltd. ADR |
50,000 | 4,247,500 | |||
75,839,445 | |||||
Thrifts & Mortgage Finance: 1.9% |
|||||
Housing Development Finance Corp. |
225,973 | 10,509,153 | |||
Comsumer Finance: 1.6% |
|||||
Shriram Transport Finance Co., Ltd. |
1,345,000 | 8,886,061 | |||
Real Estate Management & Development: 1.3% |
|||||
Unitech, Ltd. |
2,763,777 | 7,008,998 | |||
Diversified Financial Services: 0.9% |
|||||
SREI Infrastructure Finance, Ltd. |
3,750,000 | 4,894,235 | |||
Capital Markets: 0.7% |
|||||
IL&FS Investsmart, Ltd. |
1,339,981 | 3,740,138 | |||
Total Financials |
110,878,030 | ||||
INDUSTRIALS: 14.8% |
|||||
Machinery: 6.1% |
|||||
Ashok Leyland, Ltd. |
23,211,277 | 13,348,755 | |||
Jain Irrigation Systems, Ltd. |
1,381,590 | 11,997,520 | |||
Thermax, Ltd. |
940,000 | 8,473,562 | |||
33,819,837 | |||||
Building Products: 2.4% |
|||||
Sintex Industries, Ltd. |
2,101,834 | 12,938,808 | |||
Construction & Engineering: 2.2% |
|||||
Larsen & Toubro, Ltd. |
228,330 | 12,080,336 | |||
Industrial Conglomerates: 1.5% |
|||||
MAX India, Ltd.b |
2,303,102 | 8,185,856 | |||
Road & Rail: 1.1% |
|||||
Container Corp. of India, Ltd. |
347,886 | 6,218,640 | |||
Air Freight & Logistics: 0.8% |
|||||
Gati, Ltd. |
3,606,339 | 4,642,506 | |||
Electrical Equipment: 0.7% |
|||||
Crompton Greaves, Ltd. |
770,000 | 3,864,538 | |||
Total Industrials |
81,750,521 | ||||
INFORMATION TECHNOLOGY: 12.2% |
|||||
IT Services: 9.3% |
|||||
Infosys Technologies, Ltd. |
612,591 | 18,630,442 | |||
Rolta India, Ltd. |
2,468,990 | 12,753,213 | |||
HCL-Infosystems, Ltd. |
4,428,185 | 9,965,731 | |||
Satyam Computer Services, Ltd. |
862,744 | 5,558,667 | |||
Infosys Technologies, Ltd. ADR |
129,500 | 4,313,645 | |||
51,221,698 | |||||
Software: 1.6% |
|||||
Financial Technologies India, Ltd. |
399,855 | 8,968,957 | |||
Internet Software & Services: 1.3% |
|||||
Info Edge India, Ltd. |
566,727 | 7,223,578 | |||
Total Information Technology |
67,414,233 | ||||
17
HEALTH CARE: 12.1% |
||||
Pharmaceuticals: 12.1% |
||||
Sun Pharmaceutical Industries, Ltd. |
879,260 | 28,106,082 | ||
Glenmark Pharmaceuticals, Ltd. |
1,969,797 | 20,837,666 | ||
Cipla India, Ltd. |
3,469,657 | 17,062,499 | ||
Sun Pharma Advanced Research Co., Ltd.b |
594,260 | 963,963 | ||
Total Health Care |
66,970,210 | |||
CONSUMER DISCRETIONARY: 12.0% |
||||
Media: 5.4% |
||||
HT Media, Ltd. |
3,777,688 | 8,206,947 | ||
Zee Entertainment Enterprises, Ltd. |
1,618,908 | 6,882,638 | ||
Sun TV Network, Ltd. |
1,590,091 | 6,881,523 | ||
Television Eighteen India, Ltd. |
801,847 | 3,203,394 | ||
Dish TV India, Ltd.b |
4,737,097 | 2,801,129 | ||
Inox Leisure, Ltd. |
1,516,527 | 2,064,674 | ||
30,040,305 | ||||
Automobiles: 1.9% |
||||
Mahindra & Mahindra, Ltd. |
942,500 | 10,387,497 | ||
Textiles, Apparel & Luxury Goods: 1.3% |
||||
Titan Industries, Ltd. |
289,589 | 6,987,112 | ||
Hotels, Restaurants & Leisure: 1.3% |
||||
Indian Hotels Co., Ltd. |
4,749,840 | 6,903,032 | ||
Auto Components: 1.2% |
||||
Bharat Forge, Ltd. |
1,706,000 | 6,812,635 | ||
Multiline Retail: 0.9% |
||||
Vishal Retail, Ltd.b |
911,436 | 4,877,203 | ||
Total Consumer Discretionary |
66,007,784 | |||
CONSUMER STAPLES: 8.2% |
||||
Personal Products: 6.6% |
||||
Dabur India, Ltd. |
14,249,779 | 28,003,756 | ||
Marico, Ltd. |
6,599,720 | 8,319,755 | ||
36,323,511 | ||||
Household Products: 1.5% |
||||
Hindustan Unilever, Ltd. |
1,487,269 | 8,076,784 | ||
Beverages: 0.1% |
||||
Radico Khaitan, Ltd. |
554,154 | 740,312 | ||
Total Consumer Staples |
45,140,607 | |||
TELECOMMUNICATION SERVICES: 7.7% |
||||
Wireless Telecommunication Services: 7.7% |
||||
Bharti Airtel, Ltd.b |
1,639,191 | 27,803,029 | ||
Reliance Communications, Ltd. |
2,024,755 | 14,627,971 | ||
Total Telecommunication Services |
42,431,000 | |||
UTILITIES: 6.0% |
||||
Gas Utilities: 4.3% |
||||
Gail India, Ltd. |
1,866,501 | 16,481,900 | ||
Gujarat State Petronet, Ltd. |
7,075,000 | 7,072,307 | ||
23,554,207 | ||||
Electric Utilities: 1.7% |
||||
CESC, Ltd. |
1,556,117 | 9,296,578 | ||
Total Utilities |
32,850,785 | |||
18
ENERGY: 4.6% |
||||||||
Oil, Gas & Consumable Fuels: 4.6% |
||||||||
Reliance Industries, Ltd. |
311,871 | 13,106,214 | ||||||
Chennai Petroleum Corp., Ltd. |
2,652,744 | 12,221,800 | ||||||
Total Energy |
25,328,014 | |||||||
TOTAL COMMON EQUITIES: INDIA (Cost $629,704,373) |
538,771,184 | |||||||
INTERNATIONAL DOLLAR BONDS: 1.1% |
||||||||
FACE AMOUNT | ||||||||
CONSUMER STAPLES: 1.1% |
||||||||
Beverages: 1.1% |
||||||||
Radico Khaitan, Ltd., Cnv. |
$ | 7,000,000 | 6,370,000 | |||||
Total Consumer Staples |
6,370,000 | |||||||
TOTAL INTERNATIONAL DOLLAR BONDS (Cost $8,229,360) |
6,370,000 | |||||||
TOTAL INVESTMENTS: 98.8% |
545,141,184 | |||||||
(Cost $637,933,733c) |
||||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 1.2% |
6,823,908 | |||||||
NET ASSETS: 100.0% |
$ | 551,965,092 | ||||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Non-income producing security |
c |
Cost of investments is $637,933,733 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 69,289,759 | ||
Gross unrealized depreciation | (162,082,308 | ) | ||
Net unrealized depreciation | $ | (92,792,549 | ) | |
ADR | American Depositary Receipt |
Cnv. | Convertible |
See accompanying notes to schedules of investments
19
MATTHEWS JAPAN FUND |
September 30, 2008 | |
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
COMMON EQUITIES: JAPAN: 98.7% |
|||||
SHARES | VALUE | ||||
FINANCIALS: 26.7% |
|||||
Real Estate Investment Trusts: 9.8% |
|||||
Tokyu REIT, Inc. |
304 | $ | 1,976,243 | ||
United Urban Investment Corp., REIT |
447 | 1,960,033 | |||
Japan Logistics Fund, Inc., REIT |
267 | 1,609,540 | |||
Global One Real Estate Investment Corp., REIT |
171 | 1,599,065 | |||
Nomura Real Estate Office Fund, Inc., REIT |
233 | 1,592,188 | |||
Advance Residence Investment Corp., REIT |
268 | 971,703 | |||
MID Reit, Inc. |
403 | 951,951 | |||
Premier Investment Corp., REIT |
183 | 779,029 | |||
Joint Reit Investment Corp. |
313 | 641,611 | |||
Fukuoka REIT Corp. |
112 | 580,699 | |||
Crescendo Investment Corp., REIT |
289 | 495,073 | |||
Nippon Commerical Investment Corp., REIT |
207 | 451,954 | |||
TGR Investment Inc., REIT |
282 | 414,557 | |||
Prospect Residential Investment Corp., REIT |
179 | 356,833 | |||
LCP Investment Corp., REIT |
186 | 309,920 | |||
Kenedix Realty Investment Corp., REIT |
76 | 282,874 | |||
Japan Single-Residence REIT, Inc. |
197 | 244,163 | |||
Starts Proceed Investment Corp., REIT |
218 | 185,965 | |||
BLife Investment Corp., REIT |
68 | 180,789 | |||
15,584,190 | |||||
Capital Markets: 5.5% |
|||||
GCA Savvian Group Corp. |
1,306 | 3,630,448 | |||
Ichiyoshi Securities Co., Ltd. |
341,700 | 3,583,736 | |||
Monex Group, Inc. |
4,240 | 1,535,716 | |||
8,749,900 | |||||
Real Estate Management & Development: 5.0% |
|||||
Daibiru Corp. |
271,800 | 2,049,828 | |||
Funai Zaisan Consultants Co., Ltd. |
2,409 | 1,994,007 | |||
Sumitomo Realty & Development Co., Ltd. |
69,000 | 1,502,732 | |||
Mitsubishi Estate Co., Ltd. |
69,000 | 1,359,655 | |||
Shoei Co., Ltd. |
96,080 | 937,402 | |||
7,843,624 | |||||
Commercial Banks: 2.6% |
|||||
The Joyo Bank, Ltd. |
302,000 | 1,374,836 | |||
The Chiba Bank, Ltd. |
243,000 | 1,274,075 | |||
The Sumitomo Trust & Banking Co., Ltd. |
134,000 | 892,768 | |||
Chuo Mitsui Trust Holdings, Inc. |
99,000 | 534,473 | |||
4,076,152 | |||||
Consumer Finance: 2.6% |
|||||
ORIX Corp. |
32,270 | 4,040,465 | |||
Insurance: 1.2% |
|||||
The Fuji Fire & Marine Insurance Co., Ltd. |
853,000 | 1,974,538 | |||
Total Financials |
42,268,869 | ||||
INFORMATION TECHNOLOGY: 20.7% |
|||||
Electronic Equipment & Instruments: 9.0% |
|||||
Nidec Corp. |
70,500 | 4,337,070 | |||
Keyence Corp. |
17,870 | 3,564,763 | |||
Topcon Corp. |
351,100 | 2,315,963 | |||
Murata Manufacturing Co., Ltd. |
37,800 | 1,526,011 | |||
Hoya Corp. |
73,800 | 1,464,028 | |||
Nippon Electric Glass Co., Ltd. |
118,000 | 1,068,898 | |||
14,276,733 | |||||
Internet Software & Services: 3.4% |
|||||
Gourmet Navigator, Inc. |
1,278 | 2,891,496 | |||
Yahoo! Japan Corp. |
7,680 | 2,514,181 | |||
5,405,677 | |||||
20
Software: 3.0% |
||||
Nintendo Co., Ltd. |
11,090 | 4,704,087 | ||
IT Services: 1.7% |
||||
Nomura Research Institute, Ltd. |
127,400 | 2,622,058 | ||
Computers & Peripherals: 1.5% |
||||
Melco Holdings, Inc. |
130,500 | 2,409,130 | ||
Office Electronics: 1.1% |
||||
Ricoh Co., Ltd. |
120,000 | 1,687,316 | ||
Semiconductors & Semiconductor Equipment: 1.0% |
||||
Sumco Corp. |
100,800 | 1,595,447 | ||
Total Information Technology |
32,700,448 | |||
INDUSTRIALS: 15.5% |
||||
Machinery: 8.8% |
||||
Mitsubishi Heavy Industries, Ltd. |
777,000 | 3,374,888 | ||
Fanuc, Ltd. |
43,000 | 3,234,968 | ||
NGK Insulators, Ltd. |
208,000 | 2,546,426 | ||
OSG Corp. |
205,100 | 1,743,961 | ||
Komatsu, Ltd. |
68,400 | 1,119,811 | ||
OKUMA Corp. |
183,000 | 1,061,902 | ||
Aichi Corp. |
233,100 | 919,750 | ||
14,001,706 | ||||
Construction & Engineering: 1.8% |
||||
JGC Corp. |
105,000 | 1,684,553 | ||
Daimei Telecom Engineering Corp. |
149,000 | 1,209,394 | ||
2,893,947 | ||||
Commercial Services & Supplies: 1.6% |
||||
Secom Co., Ltd. |
62,400 | 2,599,437 | ||
Road & Rail: 1.5% |
||||
East Japan Railway Co. |
312 | 2,326,782 | ||
Building Products: 0.9% |
||||
Daikin Industries, Ltd. |
42,800 | 1,443,560 | ||
Trading Companies & Distributors: 0.9% |
||||
Mitsubishi Corp. |
65,800 | 1,372,598 | ||
Total Industrials |
24,638,030 | |||
CONSUMER DISCRETIONARY: 12.6% |
||||
Household Durables: 2.6% |
||||
Sekisui House, Ltd. |
272,000 | 2,497,239 | ||
Panasonic Corp. |
92,000 | 1,586,035 | ||
4,083,274 | ||||
Hotels, Restaurants & Leisure: 2.6% |
||||
Doutor Nichires Holdings Co., Ltd. |
136,300 | 2,046,937 | ||
Pacific Golf Group International Holdings KK |
3,056 | 2,019,922 | ||
4,066,859 | ||||
Diversified Consumer Services: 2.4% |
||||
Benesse Corp. |
92,800 | 3,790,354 | ||
Specialty Retail: 1.7% |
||||
Nitori Co., Ltd. |
45,450 | 2,700,385 | ||
Media: 1.6% |
||||
Toei Co., Ltd. |
531,000 | 2,549,449 | ||
Automobiles: 1.0% |
||||
Toyota Motor Corp. ADR |
9,900 | 849,420 | ||
Honda Motor Co., Ltd. ADR |
26,900 | 809,959 | ||
1,659,379 | ||||
21
Leisure Equipment & Products: 0.7% |
|||||||
Noritsu Koki Co., Ltd. |
92,500 | 1,157,985 | |||||
Total Consumer Discretionary |
20,007,685 | ||||||
CONSUMER STAPLES: 9.1% |
|||||||
Household Products: 3.9% |
|||||||
Pigeon Corp. |
217,000 | 6,118,627 | |||||
Food Products: 2.8% |
|||||||
Unicharm Petcare Corp. |
149,800 | 4,489,821 | |||||
Personal Products: 2.4% |
|||||||
Shiseido Co., Ltd. |
168,000 | 3,762,096 | |||||
Total Consumer Staples |
14,370,544 | ||||||
HEALTH CARE: 8.6% |
|||||||
Health Care Equipment & Supplies: 6.7% |
|||||||
Sysmex Corp. |
122,100 | 5,395,716 | |||||
Terumo Corp. |
54,000 | 2,816,879 | |||||
Nakanishi, Inc. |
28,300 | 2,418,285 | |||||
10,630,880 | |||||||
Pharmaceuticals: 1.9% |
|||||||
Takeda Pharmaceutical Co., Ltd. |
60,400 | 3,041,176 | |||||
Total Health Care |
13,672,056 | ||||||
ENERGY: 2.0% |
|||||||
Oil, Gas & Consumable Fuels: 2.0% |
|||||||
INPEX CORPORATION |
381 | 3,237,902 | |||||
Total Energy |
3,237,902 | ||||||
TELECOMMUNICATION SERVICES: 1.8% |
|||||||
Wireless Telecommunication Services: 1.8% |
|||||||
NTT DoCoMo, Inc. |
1,752 | 2,804,422 | |||||
Total Telecommunication Services |
2,804,422 | ||||||
MATERIALS: 1.7% |
|||||||
Chemicals: 1.7% |
|||||||
Nitto Denko Corp. |
74,500 | 1,895,325 | |||||
OHARA, Inc. |
76,300 | 813,683 | |||||
Total Materials |
2,709,008 | ||||||
TOTAL INVESTMENTS: 98.7% (Cost $194,251,428b) |
156,408,964 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 1.3% |
2,083,233 | ||||||
NET ASSETS: 100.0% |
$ | 158,492,197 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Cost of investments is $194,251,428 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 7,283,929 | ||
Gross unrealized depreciation | (45,126,393 | ) | ||
Net unrealized depreciation | $ | (37,842,464 | ) | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
See accompanying notes to schedules of investments.
22
MATTHEWS KOREA FUND |
September 30, 2008 | ||||
SCHEDULE OF INVESTMENTSa (UNAUDITED) |
|||||
COMMON EQUITIES: SOUTH KOREA: 98.4% |
|||||
SHARES | VALUE | ||||
FINANCIALS: 22.9% |
|||||
Commercial Banks: 10.3% |
|||||
Shinhan Financial Group Co., Ltd. |
135,447 | $ | 4,845,968 | ||
KB Financial Group, Inc.b |
79,057 | 3,452,657 | |||
Hana Financial Group, Inc. |
114,292 | 2,687,851 | |||
KB Financial Group, Inc. ADR |
17,339 | 792,219 | |||
11,778,695 | |||||
Insurance: 7.1% |
|||||
Samsung Fire & Marine Insurance Co., Ltd. |
33,196 | 5,811,163 | |||
Meritz Fire & Marine Insurance Co., Ltd. |
330,960 | 2,336,508 | |||
8,147,671 | |||||
Capital Markets: 5.5% |
|||||
Samsung Securities Co., Ltd. |
63,790 | 4,033,458 | |||
Kiwoom Securities Co., Ltd. |
88,589 | 2,170,713 | |||
6,204,171 | |||||
Total Financials |
26,130,537 | ||||
CONSUMER DISCRETIONARY: 15.1% |
|||||
Media: 3.8% |
|||||
Cheil Worldwide, Inc. |
12,437 | 2,334,819 | |||
SBS Holdings Co., Ltd.c |
49,530 | 1,235,597 | |||
ON*Media Corp.c |
347,370 | 781,430 | |||
4,351,846 | |||||
Household Durables: 3.5% |
|||||
LG Electronics, Inc. |
29,895 | 2,766,147 | |||
Intelligent Digital Integrated Security Co., Ltd. |
84,670 | 1,172,598 | |||
3,938,745 | |||||
Multiline Retail: 3.2% |
|||||
Hyundai Department Store Co., Ltd. |
47,456 | 3,690,060 | |||
Auto Components: 2.2% |
|||||
Hankook Tire Co., Ltd. |
177,550 | 2,491,290 | |||
Automobiles: 1.9% |
|||||
Hyundai Motor Co. |
34,927 | 2,185,710 | |||
Hotels, Restaurants & Leisure: 0.5% |
|||||
Modetour Network, Inc. |
44,023 | 588,145 | |||
Total Consumer Discretionary |
17,245,796 | ||||
INFORMATION TECHNOLOGY: 13.9% |
|||||
Semiconductors & Semiconductor Equipment: 7.8% |
|||||
Samsung Electronics Co., Ltd. |
19,349 | 8,866,752 | |||
Internet Software & Services: 5.4% |
|||||
NHN Corp.c |
44,006 | 5,644,750 | |||
CDNetworks Co., Ltd.c |
95,121 | 556,495 | |||
6,201,245 | |||||
Electronic Equipment & Instruments: 0.7% |
|||||
SFA Engineering Corp. |
16,806 | 749,333 | |||
Total Information Technology |
15,817,330 | ||||
23
CONSUMER STAPLES: 13.4% |
||||
Food & Staples Retailing: 6.2% |
||||
Shinsegae Co., Ltd. |
9,786 | 4,618,810 | ||
Shinsegae Food Co., Ltd. |
63,636 | 2,468,282 | ||
7,087,092 | ||||
Personal Products: 4.2% |
||||
Amorepacific Corp. |
8,870 | 4,796,100 | ||
Beverages: 2.7% |
||||
Hite Brewery Co., Ltd.c |
16,810 | 3,128,893 | ||
Food Products: 0.3% |
||||
CJ CheilJedang Corp.c |
2,278 | 370,399 | ||
Total Consumer Staples |
15,382,484 | |||
INDUSTRIALS: 11.6% |
||||
Commercial Services & Supplies: 4.9% |
||||
S1 Korea Corp. |
109,886 | 5,598,059 | ||
Industrial Conglomerates: 3.0% |
||||
Orion Corp. |
14,093 | 2,291,386 | ||
Samsung Techwin Co., Ltd. |
49,446 | 1,096,858 | ||
3,388,244 | ||||
Construction & Engineering: 2.2% |
||||
GS Engineering & Construction Corp. |
20,657 | 1,668,188 | ||
Hyundai Development Co. |
24,035 | 897,780 | ||
2,565,968 | ||||
Machinery: 1.5% |
||||
JVM Co., Ltd. |
116,674 | 1,686,401 | ||
Total Industrials |
13,238,672 | |||
HEALTH CARE: 10.5% |
||||
Pharmaceuticals: 10.5% |
||||
Yuhan Corp. |
25,617 | 4,594,398 | ||
Hanmi Pharmaceutical Co., Ltd. |
35,373 | 3,485,749 | ||
Daewoong Pharmaceutical Co., Ltd. |
61,669 | 2,785,797 | ||
LG Life Sciences Service Ltd.c |
26,554 | 1,138,926 | ||
Total Health Care |
12,004,870 | |||
TELECOMMUNICATION SERVICES: 6.0% |
||||
Wireless Telecommunication Services: 4.5% |
||||
SK Telecom Co., Ltd. |
18,877 | 3,231,235 | ||
SK Telecom Co., Ltd. ADR |
99,400 | 1,870,708 | ||
5,101,943 | ||||
Diversified Telecommunication Services: 1.5% |
||||
KT Corp. |
32,250 | 1,113,591 | ||
KT Corp. ADR |
36,900 | 619,551 | ||
1,733,142 | ||||
Total Telecommunication Services |
6,835,085 | |||
24
MATERIALS: 3.5% |
|||||||
Chemicals: 1.8% |
|||||||
LG Chem, Ltd. |
26,488 | 2,078,277 | |||||
Metals & Mining: 1.7% |
|||||||
POSCO ADR |
20,500 | 1,914,085 | |||||
Total Materials |
3,992,362 | ||||||
ENERGY: 1.5% |
|||||||
Oil, Gas & Consumable Fuels: 1.5% |
|||||||
GS Holdings Corp. |
66,727 | 1,716,415 | |||||
Total Energy |
1,716,415 | ||||||
TOTAL COMMON EQUITIES (Cost $114,597,333) |
112,363,551 | ||||||
PREFERRED EQUITIES: SOUTH KOREA: 1.0% |
|||||||
CONSUMER STAPLES: 1.0% |
|||||||
Food Products: 1.0% |
|||||||
CJ CheilJedang Corp., 2nd Pfd.c |
6,893 | 1,103,731 | |||||
Total Consumer Staples |
1,103,731 | ||||||
TOTAL PREFERRED EQUITIES (Cost $1,604,234) |
1,103,731 | ||||||
TOTAL INVESTMENTS: 99.4% (Cost $116,201,567d) |
113,467,282 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES: 0.6% |
644,581 | ||||||
NET ASSETS: 100.0% |
$ | 114,111,863 | |||||
a |
Certain securities were fair valued under the discretion of the Board of Trustees (Note A). |
b |
Illiquid security |
c |
Non-income producing security |
d |
Cost of investments is $116,201,567 and net unrealized depreciation consists of: |
Gross unrealized appreciation | $ | 23,159,775 | ||
Gross unrealized depreciation | (25,894,060 | ) | ||
Net unrealized depreciation | $ | (2,734,285 | ) | |
ADR | American Depositary Receipt |
Pfd. | Preferred |
See accompanying notes to schedules of investments.
25
NOTES TO SCHEDULES OF INVESTMENTS (Unaudited)
A. SECURITY VALUATION: The Funds equity securities are valued based on market quotations or at fair value as determined in good faith by or under the direction of the Board of Trustees (the Board) when no market quotations are available or when market quotations have become unreliable. The Board has delegated the responsibility of making fair value determinations to the Funds Valuation Committee (the Valuation Committee), subject to the Funds Pricing Policies. The Funds have retained third-party pricing services which may be utilized by the Valuation Committee under circumstances described in the Pricing Policies to provide fair value prices for certain securities held by the Funds. When fair value pricing is employed, the prices of securities used by a Fund to calculate its NAV differ from quoted or published prices for the same securities for that day. All fair value determinations are made subject to the Boards oversight.
The books and records of the Funds are maintained in U.S. Dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the current exchange rate. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Funds do not isolate that portion of gains and losses on investments in equity securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. International dollar bonds are issued offshore, pay interest and principal in U.S. Dollars, and are denominated in U.S. Dollars.
Market values for equity securities are determined based on the last sale price on the principal (or most advantageous) market on which the security is traded. If a reliable last sale price is not available, market values for equity securities are determined using the mean between the last available bid and asked price. Securities are valued through valuations obtained from a commercial pricing service or at the most recent mean of the bid and asked prices provided by investment dealers in accordance with procedures established by the Board.
Foreign securities are valued as of the close of trading on the primary (or most advantageous) market on which they trade. The value is then converted to U.S. dollars using current exchange rates and in accordance with the Pricing Policies. Foreign currency exchange rates are determined as of the close of trading on the New York Stock Exchange, Inc. (NYSE)
Events affecting the value of foreign investments occur between the time at which they are determined and the close of trading on the NYSE. Such events would not normally be reflected in a calculation of a Funds NAV on that day. If events that materially affect the value of the Funds foreign investments occur during such period, and the impact of such events can be reasonably determined, the investments will be valued at their fair value as described above.
Foreign securities held by the Funds may be traded on days and at times when the NYSE is closed. Accordingly, the NAV of the Funds may be significantly affected on days when shareholders have no access to the Funds. For valuation purposes, quotations of foreign portfolio securities, other assets and liabilities, and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates.
B. ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 157 FAIR VALUE MEASUREMENTS (FAS 157): In September 2006, the Financial Accounting Standards Board issued FAS 157 effective for fiscal years beginning after November 15, 2007. This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. The Funds have adopted FAS 157 as of January 1, 2008. The three levels of the fair value hierarchy under FAS 157 are described below:
Level 1: Quoted prices in active markets for identical securities
Level 2: Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3: Significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The summary of inputs used to value the Funds net assets as of September 30, 2008 is as follows:
Matthews Asian Growth and Income Fund |
Matthews Asia Pacific Equity Income Fund |
Matthews Asia Pacific Fund |
Matthews Pacific Tiger Fund |
Matthews China Fund | |||||||||||
Level 1: Quoted Prices |
$ | 123,110,377 | $ | 6,485,995 | $ | 17,737,310 | $ | 146,548,849 | $ | 123,578,282 | |||||
Level 2: Other Significant |
1,394,195,548 | 84,310,224 | 254,205,797 | 2,003,787,305 | 881,449,328 | ||||||||||
Level 3: Significant |
| | | | | ||||||||||
Total Market Value of Investments |
$ | 1,517,305,925 | $ | 90,796,220 | $ | 271,943,107 | $ | 2,150,336,154 | $ | 1,005,027,610 |
Matthews India Fund |
Matthews Japan Fund |
Matthews Korea Fund |
Matthews Asia Small |
Matthews Asian Technology Fund | |||||||||||
Level 1: Quoted Prices |
$ | 8,561,145 | $ | 1,659,379 | $ | 5,196,563 | $ | 140,089 | $ | 33,913,727 | |||||
Level 2: Other Significant |
536,580,039 | 154,749,585 | 108,270,719 | 949,757 | 88,966,989 | ||||||||||
Level 3: Significant |
| | | | | ||||||||||
Total Market Value of Investments |
$ | 545,141,184 | $ | 156,408,964 | $ | 113,467,282 | $ | 1,089,847 | $ | 122,880,716 |
Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
Matthews Asian Growth and Income Fund |
Matthews Asia Pacific Equity Income Fund |
|||||||
Balance as of 12/31/07 (market value) |
$ | 6,791,533 | $ | 2,115,979 | ||||
Transfers in/and or out of Level 3 |
(6,791,533 | ) | (2,115,979 | ) | ||||
Balance as of 9/30/08 (market value) |
$ | | $ | |
C. TAX INFORMATION: Under current tax law, capital and currency losses realized after October 31 and prior to the Funds fiscal year end may be deferred as occurring on the first day of the following fiscal year. Post October losses at fiscal year end December 31, 2007 were as follows:
POST OCTOBER CAPITAL LOSSES |
POST OCTOBER CURRENCY LOSSES |
|||||||
Matthews Asian Growth and Income Fund |
$ | | ($ | 22,680 | ) | |||
Matthews Pacific Tiger Fund |
| (220,413 | ) | |||||
Matthews China Fund |
| (19,959 | ) | |||||
Matthews India Fund |
| (31,442 | ) | |||||
Matthews Korea Fund |
| (10,385 | ) | |||||
Matthews Asian Technology Fund |
(587,611 | ) | |
For federal income tax purposes, the Fund indicated below has capital loss carryforwards, which expire in the year indicated, as of December 31, 2007, which are available to offset future capital gains, if any:
LOSSES DEFERRED EXPIRING IN: |
2008 | 2009 | 2010 | TOTAL | ||||||||||||
Matthews Asian Technology Fund |
($ | 1,570,881 | ) | ($ | 5,967,059 | ) | ($ | 3,461,198 | ) | ($ | 10,999,138 | ) |
For additional information regarding the accounting policies of the Matthews Asia Funds, refer to the most recent financial statements in the N-CSR filing at www.sec.gov.
Item 2. Controls and Procedures.
(a) | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting. |
Item 3. Exhibits.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) |
Matthews International Funds |
By (Signature and Title)* |
/s/ William J. Hackett |
|||
William J. Hackett, President | ||||
(principal executive officer) |
Date |
November 17, 2008 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* |
/s/ William J. Hackett |
|||
William J. Hackett, President | ||||
(principal executive officer) |
Date |
November 17, 2008 |
By (Signature and Title)* |
/s/ Shai Malka |
|||
Shai Malka, Treasurer | ||||
(principal financial officer) |
Date |
November 17, 2008 |
* |
Print the name and title of each signing officer under his or her signature. |