2 | ||||||||
5 | ||||||||
Manager Commentaries, Fund Highlights and
Schedules of Investments: |
||||||||
6 | ||||||||
10 | ||||||||
16 | ||||||||
20 | ||||||||
26 | ||||||||
30 | ||||||||
34 | ||||||||
38 | ||||||||
40 | ||||||||
42 | ||||||||
44 | ||||||||
48 | ||||||||
55 | ||||||||
CERTIFICATIONS PURSUANT TO RULE 30a-2(a) | ||||||||
CERTIFICATIONS PURSUANT TO RULE 30a-2(b) UNDER THE 1940 ACT AND SECTION 906 |
PORTFOLIO MANAGEMENT | SYMBOL: MAPTX |
FUND AT A GLANCE | Fund Inception: 9/12/94 |
Average Annual Total Returns | ||||||||||||||||||||||||||||
SINCE | ||||||||||||||||||||||||||||
3 MO | YTD | 1 YR | 3 YRS | 5 YRS | 10 YRS | INCEPTION | ||||||||||||||||||||||
Matthews Pacific Tiger Fund |
3.21 | % | 3.15 | % | 27.90 | % | 20.90 | % | 8.57 | % | 7.43 | % | 6.61 | % | ||||||||||||||
MSCI All Country Far East ex-Japan Index1 |
3.76 | % | 5.65 | % | 25.56 | % | 15.74 | % | 3.33 | % | 0.28 | % | 0.66 | %* | ||||||||||||||
Lipper Pacific ex-Japan Funds Category Avg2 |
3.29 | % | 5.50 | % | 28.16 | % | 15.97 | % | 4.64 | % | 3.73 | % | 1.90 | %* |
* | Calculated from 8/31/94 |
For the six months ended 6/30/05** |
1.32 | % | ||
For Calendar Year 2004 ** |
1.43 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
1.36 | % |
For the six months ended 6/30/05 (annualized)** |
4.00 | % | ||
For Calendar Year 2004 ** |
16.27 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
3.82 | % |
** | Unaudited | |
*** | Audited | |
| For the four months ended 12/31/04 due to the Funds change of fiscal year-end from 8/31 to 12/31. |
China/Hong Kong |
32.1 | % | ||
South Korea |
24.9 | % | ||
Singapore |
13.0 | % | ||
Taiwan |
8.8 | % | ||
India1 |
7.3 | % | ||
Thailand |
6.4 | % | ||
Indonesia |
4.8 | % | ||
Philippines |
0.2 | % | ||
Cash and other |
2.5 | % |
Financials |
28.3 | % | ||
Information Technology |
19.3 | % | ||
Consumer Discretionary |
16.7 | % | ||
Consumer Staples |
14.4 | % | ||
Telecom Services |
9.4 | % | ||
Industrials |
6.4 | % | ||
Health Care |
3.0 | % | ||
Cash and other |
2.5 | % |
Large cap (over $5 billion) |
33.1 | % | ||
Mid cap ($1-$5 billion) |
50.6 | % | ||
Small cap (under $1 billion) |
13.8 | % | ||
Cash and other |
2.5 | % |
| Figures have been rounded to total 100.0% |
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$16.40 |
$1.12 billion | 2.00% within 90 calendar days | None |
1 | The MSCI All Country Far East ex-Japan Index is a free float-adjusted market capitalization-weighted index of the stock markets of Hong Kong, Taiwan, Singapore, Korea, Indonesia, Malaysia, Philippines, Thailand and China that excludes securities not available to foreign investors. As of 6/30/05, 7.28% of the assets in the Matthews Pacific Tiger Fund were invested in India, which is not included in the MSCI All Country Far East ex-Japan Index. Source: Bloomberg. | |
2 | As of 6/30/05, the Lipper Pacific ex-Japan Funds Category Average consisted of 57 funds for the three-month, YTD and one-year periods; 54 funds for the three-year period; 42 funds for the five-year period; 23 funds for the 10-year period; and 13 funds since 8/31/94. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. | |
3 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. | |
4 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
SHARES | VALUE | |||||||
CHINA/HONG KONG: 32.07% |
||||||||
Swire Pacific, Ltd. A Shares |
4,379,000 | $ | 38,740,993 | |||||
Giordano International, Ltd. |
54,903,000 | 37,798,359 | ||||||
Dah Sing Financial Group |
5,475,200 | 36,637,550 | ||||||
Television Broadcasts, Ltd. |
5,538,700 | 31,289,272 | ||||||
Lenovo Group, Ltd. |
99,932,000 | 29,577,094 | ||||||
Hang Lung Group, Ltd. |
15,670,000 | 27,827,307 | ||||||
Shangri-La Asia, Ltd. |
17,566,000 | 27,125,466 | ||||||
China Mobile HK, Ltd. |
5,306,717 | 19,769,587 | ||||||
PICC Property and Casualty
Co., Ltd. H Shares ** |
73,006,000 | 18,319,611 | ||||||
Cosco Pacific, Ltd. |
8,406,000 | 16,333,882 | ||||||
Travelsky Technology,
Ltd. H Shares |
18,217,000 | 15,471,908 | ||||||
Sa Sa International
Holdings, Ltd. |
31,184,000 | 15,248,900 | ||||||
China Mobile HK, Ltd. ADR |
775,850 | 14,423,051 | ||||||
Li Ning Co., Ltd. |
22,462,000 | 10,694,814 | ||||||
Vitasoy International
Holdings, Ltd. |
26,670,750 | 8,751,822 | ||||||
Asia Satellite
Telecommunications
Holdings, Ltd. |
3,946,100 | 6,906,056 | ||||||
China Pharmaceutical
Group, Ltd. ** |
24,935,000 | 5,101,872 | ||||||
Moulin Global Eyecare
Holdings, Ltd. *** |
16,266,000 | 104,658 | ||||||
Total China/Hong Kong |
360,122,202 | |||||||
SOUTH KOREA: 24.88% |
||||||||
Hana Bank |
1,452,607 | $ | 38,895,325 | |||||
AmorePacific Corp. |
140,920 | 37,324,389 | ||||||
Hite Brewery Co., Ltd. |
328,957 | 28,364,393 | ||||||
Samsung Electronics Co., Ltd. |
52,593 | 25,114,492 | ||||||
S1 Corp. |
565,270 | 24,042,417 | ||||||
Nong Shim Co., Ltd. |
77,178 | 22,381,247 | ||||||
Samsung Securities Co., Ltd. |
801,260 | 21,532,168 | ||||||
NHN Corp. ** |
170,716 | 17,657,431 | ||||||
SK Telecom Co., Ltd. |
92,955 | 16,353,610 | ||||||
Kookmin Bank |
335,620 | 15,264,303 | ||||||
GS Home Shopping, Inc. |
171,963 | 12,450,487 | ||||||
SK Telecom Co., Ltd. ADR |
362,100 | 7,386,840 | ||||||
Pulmuone Co., Ltd. |
236,540 | 7,362,579 | ||||||
Kookmin Bank ADR |
115,300 | 5,255,374 | ||||||
Total South Korea |
279,385,055 | |||||||
SINGAPORE: 12.99% |
||||||||
DBS Group Holdings, Ltd. |
4,444,750 | 37,702,005 | ||||||
Venture Corp., Ltd. |
3,725,800 | 35,360,679 | ||||||
Hyflux, Ltd. |
12,418,125 | 31,232,227 | ||||||
Fraser and Neave, Ltd. |
2,985,550 | 27,803,859 | ||||||
Parkway Holdings, Ltd. |
12,339,000 | 13,760,014 | ||||||
Total Singapore |
145,858,784 | |||||||
TAIWAN: 8.80% |
||||||||
Hon Hai Precision Industry
Co., Ltd. |
7,619,688 | 39,571,860 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. |
17,218,949 | 29,953,089 | ||||||
President Chain Store Corp. |
11,753,000 | 23,153,503 | ||||||
Taiwan Mobile Co., Ltd. |
5,918,000 | 6,090,822 | ||||||
Total Taiwan |
98,769,274 | |||||||
SHARES | VALUE | |||||||
INDIA: 7.28% |
||||||||
Infosys Technologies, Ltd. |
437,126 | $ | 23,705,351 | |||||
HDFC Bank, Ltd. |
1,085,883 | 15,838,031 | ||||||
Cipla, Ltd. |
2,084,723 | 15,037,818 | ||||||
Hero Honda Motors, Ltd. |
1,019,800 | 13,565,275 | ||||||
Bank of Baroda |
3,000,492 | 13,547,937 | ||||||
Total India |
81,694,412 | |||||||
THAILAND: 6.42% |
||||||||
Advanced Info Service Public
Co., Ltd. |
14,708,200 | 34,879,700 | ||||||
Bangkok Bank Public Co., Ltd. |
11,850,800 | 30,971,238 | ||||||
Serm Suk Public Co., Ltd. |
12,778,700 | 6,246,334 | ||||||
Total Thailand |
72,097,272 | |||||||
INDONESIA: 4.81% |
||||||||
PT Ramayana Lestari Sentosa |
228,535,500 | 21,073,970 | ||||||
PT Astra International, Inc. |
14,291,730 | 18,596,821 | ||||||
PT Bank Central Asia |
38,758,500 | 14,296,168 | ||||||
Total Indonesia |
53,966,959 | |||||||
PHILIPPINES: 0.25% |
||||||||
SM Prime Holdings, Inc. |
21,119,000 | $ | 2,829,701 | |||||
Total Philippines |
2,829,701 | |||||||
TOTAL INVESTMENTS: 97.50% |
1,094,723,659 | |||||||
(Cost $875,586,119****) |
||||||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 2.50% |
28,041,076 | |||||||
NET ASSETS: 100.00% |
$ | 1,122,764,735 | ||||||
* | As a percentage of net assets as of June 30, 2005 | |
** | Non-income producing security | |
*** | Valued at fair value under direction of the Board of Trustees (Note 1-A) | |
**** | Cost for Federal tax purposes is $876,111,649 and net unrealized appreciation consists of: |
Gross
unrealized appreciation |
||||||||
Gross unrealized depreciation
|
$ | 255,588,521 | ||||||
Net unrealized appreciation
|
( | 36,976,511) | ||||||
ADR American Depositary Receipt
|
$ | 218,612,010 | ||||||
PORTFOLIO MANAGEMENT | SYMBOL: MACSX |
FUND AT A GLANCE | Fund Inception: 9/12/94 |
Average Annual Total Returns | ||||||||||||||||||||||||||||
SINCE | ||||||||||||||||||||||||||||
3 MO | YTD | 1 YR | 3 YRS | 5 YRS | 10 YRS | INCEPTION | ||||||||||||||||||||||
Matthews Asian Growth and Income Fund |
4.27 | % | 4.92 | % | 22.66 | % | 19.94 | % | 16.82 | % | 12.03 | % | 11.32 | % | ||||||||||||||
MSCI All Country Far East ex-Japan Index1 |
3.76 | % | 5.65 | % | 25.56 | % | 15.74 | % | 3.33 | % | 0.28 | % | 0.66 | % | ||||||||||||||
Lipper Pacific ex-Japan Funds Category Avg2 |
3.29 | % | 5.50 | % | 28.16 | % | 15.97 | % | 4.64 | % | 3.73 | % | 1.90 | %* |
For the six months ended 6/30/05** |
1.29 | % | ||
For Calendar Year 2004** |
1.38 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
1.31 | % |
For the six months ended 6/30/05 (annualized)** |
9.01 | % | ||
For Calendar Year 2004 ** |
21.17 | % | ||
For Fiscal Year 2004 (ended 12/31/04) *** |
7.32 | % |
** | Unaudited *** Audited |
China/Hong Kong |
39.5 | % | ||
South Korea |
19.7 | % | ||
Singapore |
10.6 | % | ||
Japan1 |
6.1 | % | ||
Thailand |
5.5 | % | ||
Taiwan |
5.2 | % | ||
India1 |
4.7 | % | ||
United Kingdom1 |
2.1 | % | ||
Indonesia |
2.0 | % | ||
Australia1 |
2.0 | % | ||
Malaysia |
1.0 | % | ||
Cash and other |
1.6 | % |
Financials |
27.8 | % | ||
Telecom Services |
18.9 | % | ||
Consumer Discretionary |
17.3 | % | ||
Utilities |
10.8 | % | ||
Industrials |
7.8 | % | ||
Consumer Staples |
7.6 | % | ||
Energy |
3.8 | % | ||
Health Care |
3.0 | % | ||
Materials |
1.4 | % | ||
Cash and other |
1.6 | % |
Common Equities |
75.2 | % | ||
Convertible Bonds |
17.5 | % | ||
Preferred Equities |
3.8 | % | ||
Corporate Bonds |
1.9 | % | ||
Cash and other |
1.6 | % |
Large cap (over $5 billion) |
55.4 | % | ||
Mid cap
($1$5 billion) |
30.4 | % | ||
Small cap (under $1 billion) |
12.6 | % | ||
Cash and other |
1.6 | % |
| Figures have been rounded to total 100.0% |
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$16.40 |
$1.45 billion | 2.00% within 90 calendar days | None |
1 | The MSCI All Country Far East ex-Japan Index is a free float-adjusted market capitalization-weighted index of the stock markets of Hong Kong, Taiwan, Singapore, Korea, Indonesia, Malaysia, Philippines, Thailand and China that excludes securities not available to foreign investors. As of 6/30/05, 6.13% of the assets of the Matthews Asian Growth and Income Fund were invested in Japan, 4.69% of the Funds assets were invested in India, 2.09% of the Funds assets were invested in the United Kingdom, and 1.97% of the Funds assets were invested in Australia, which are not included in the MSCI All Country Far East ex-Japan Index. Source: Bloomberg. | |
2 | As of 6/30/05, the Lipper Pacific ex-Japan Funds Category Average consisted of 57 funds for the three-month, YTD and one-year periods; 54 funds for the three-year period; 42 funds for the five-year period; 23 funds for the 10-year period; and 13 funds since 8/31/94. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. | |
3 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. | |
4 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
SHARES | VALUE | |||||||
CHINA/HONG KONG: 29.86% |
||||||||
Hongkong Land Holdings, Ltd. |
15,727,700 | $ | 43,880,283 | |||||
Citic Pacific, Ltd. |
12,105,000 | 35,438,007 | ||||||
Hongkong Electric Holdings, Ltd. |
5,914,500 | 27,019,013 | ||||||
CLP Holdings, Ltd. |
4,690,700 | 26,921,274 | ||||||
MTR Corp., Ltd. |
13,930,800 | 26,889,976 | ||||||
Television Broadcasts, Ltd. |
4,390,000 | 24,800,026 | ||||||
Hong Kong & China Gas
Co., Ltd. |
11,938,000 | 24,272,346 | ||||||
China Netcom Group Corp., Ltd. |
14,046,000 | 20,424,630 | ||||||
Shangri-La Asia, Ltd. |
12,379,400 | 19,116,304 | ||||||
PetroChina Co., Ltd. ADR |
255,750 | 18,784,837 | ||||||
Café de Coral Holdings, Ltd. |
16,415,100 | 18,694,330 | ||||||
Hang Seng Bank, Ltd. |
1,366,200 | 18,635,594 | ||||||
Wharf Holdings, Ltd. |
5,142,000 | 18,064,162 | ||||||
Giordano International, Ltd. |
24,585,000 | 16,925,717 | ||||||
Hengan International Group
Co., Ltd. |
22,876,000 | 15,896,333 | ||||||
I-Cable Communications, Ltd. |
40,898,000 | 13,551,969 | ||||||
Cheung Kong Infrastructure
Holdings, Ltd. |
4,475,500 | 13,332,625 | ||||||
Hang Lung Group, Ltd. |
7,309,000 | 12,979,565 | ||||||
PCCW, Ltd. |
20,721,000 | 12,932,293 | ||||||
PetroChina Co., Ltd. H Shares |
15,666,000 | 11,591,751 | ||||||
Vitasoy International
Holdings, Ltd. |
31,031,000 | 10,182,608 | ||||||
China Hong Kong Photo
Products Holdings, Ltd. |
14,998,003 | 1,524,697 | ||||||
Lerado Group Holding Co., Ltd. |
1,454,000 | 153,427 | ||||||
Total China/Hong Kong |
432,011,767 | |||||||
SOUTH KOREA: 12.81% |
||||||||
SK Telecom Co., Ltd. |
170,200 | $ | 29,943,354 | |||||
Shinhan Financial Group Co., Ltd. |
955,040 | 24,833,810 | ||||||
Hana Bank |
670,170 | 17,944,620 | ||||||
Korea Electric Power Corp. |
480,590 | 14,726,634 | ||||||
KT Corp. |
341,680 | 13,871,977 | ||||||
KT Corp. ADR |
631,800 | 13,583,700 | ||||||
Korean Reinsurance Co. |
2,001,610 | 12,576,573 | ||||||
Korea Gas Corp. |
407,790 | 11,687,746 | ||||||
SK Telecom Co., Ltd. ADR |
536,900 | 10,952,760 | ||||||
Korea Electric Power Corp. ADR |
620,950 | 9,730,287 | ||||||
Sindo Ricoh Co., Ltd. |
177,670 | 9,583,360 | ||||||
Daehan City Gas Co., Ltd. |
280,300 | 7,126,042 | ||||||
GIIR Inc. |
340,870 | 5,963,989 | ||||||
Samchully Co., Ltd. |
34,640 | 2,829,464 | ||||||
Total South Korea |
185,354,316 | |||||||
SINGAPORE: 9.60% |
||||||||
Singapore Post, Ltd. |
52,457,000 | 30,960,474 | ||||||
Fraser and Neave, Ltd. |
2,981,820 | 27,769,122 | ||||||
CapitaMall Trust REIT |
17,659,900 | 24,931,377 | ||||||
Singapore Press Holdings, Ltd. |
7,817,500 | 19,939,645 | ||||||
Singapore Exchange, Ltd. |
12,985,000 | 16,251,950 | ||||||
Parkway Holdings, Ltd. |
11,981,000 | 13,360,785 | ||||||
Yellow Pages, Ltd. ** |
6,685,000 | 5,670,463 | ||||||
Total Singapore |
138,883,816 | |||||||
JAPAN: 6.13% |
||||||||
Nippon Building Fund, Inc. REIT |
2,675 | 24,118,655 | ||||||
Japan Retail Fund Investment
Corp. REIT |
2,730 | 23,408,439 | ||||||
Kao Corp. |
932,000 | 21,974,394 | ||||||
Japan Real Estate Investment
Corp. REIT |
2,258 | 19,178,036 | ||||||
Total Japan |
88,679,524 | |||||||
SHARES | VALUE | |||||||
THAILAND: 5.46% |
||||||||
PTT Public Co., Ltd. |
4,753,500 | $ | 25,075,935 | |||||
Advanced Info Service Public
Co., Ltd. |
7,754,100 | 18,388,428 | ||||||
BEC World Public Co., Ltd. |
43,485,100 | 12,206,344 | ||||||
Bangkok Bank Public Co., Ltd. |
4,196,300 | 10,966,737 | ||||||
Charoen Pokphand Foods
Public Co., Ltd. |
66,977,000 | 6,871,929 | ||||||
Thai Reinsurance Public
Co., Ltd. |
25,672,800 | 2,808,011 | ||||||
AEON Thana Sinsap Public
Co., Ltd. NVDR |
2,232,100 | 2,025,500 | ||||||
AEON Thana Sinsap Public
Co., Ltd. |
672,900 | 610,616 | ||||||
Total Thailand |
78,953,500 | |||||||
INDIA: 2.68% |
||||||||
Hindustan Lever, Ltd. |
6,198,089 | 23,323,919 | ||||||
Hero Honda Motors, Ltd. |
812,300 | 10,805,131 | ||||||
Dabur India, Ltd. |
1,523,279 | 4,614,511 | ||||||
Total India |
38,743,561 | |||||||
TAIWAN: 2.62% |
||||||||
Chunghwa Telecom Co.,
Ltd. ADR |
1,342,800 | 28,776,204 | ||||||
Taiwan Secom ** |
5,086,000 | 7,867,845 | ||||||
Chunghwa Telecom Co., Ltd. |
648,000 | 1,313,389 | ||||||
Total Taiwan |
37,957,438 | |||||||
UNITED KINGDOM: 2.09% |
||||||||
HSBC Holdings PLC ADR |
339,700 | $ | 27,057,105 | |||||
HSBC Holdings PLC |
196,800 | 3,165,616 | ||||||
Total United Kingdom |
30,222,721 | |||||||
INDONESIA: 1.98% |
||||||||
PT Telekomunikasi Indonesia
ADR |
745,500 | 15,543,675 | ||||||
PT Tempo Scan Pacific |
12,357,000 | 8,989,211 | ||||||
PT Ramayana Lestari Sentosa |
44,735,500 | 4,125,200 | ||||||
Total Indonesia |
28,658,086 | |||||||
AUSTRALIA: 1.97% |
||||||||
AXA Asia Pacific Holdings, Ltd. |
6,861,981 | 22,878,139 | ||||||
Insurance Australia Groups, Ltd. |
1,227,433 | 5,615,253 | ||||||
Total Australia |
28,493,392 | |||||||
TOTAL COMMON EQUITIES |
||||||||
(Cost $812,975,084) |
1,087,958,121 | |||||||
PREFERRED EQUITIES: 3.80%* | INTERNATIONAL DOLLAR BONDS: 19.41%* |
SHARES | VALUE | |||||||
SOUTH KOREA: 3.80% |
||||||||
Hyundai Motor Co., Ltd., Pfd. |
665,990 | $ | 22,210,396 | |||||
Hyundai Motor Co., Ltd., 2nd Pfd. |
455,790 | 16,301,817 | ||||||
LG Chem Ltd., Pfd. |
242,450 | 6,398,148 | ||||||
Samsung Fire & Marine
Insurance Co., Ltd., Pfd. |
142,820 | 5,950,258 | ||||||
LG Household & Health Care,
Ltd., Pfd. |
177,830 | 4,125,587 | ||||||
Total South Korea |
54,986,206 | |||||||
TOTAL PREFERRED EQUITIES |
||||||||
(Cost $25,740,550) |
54,986,206 | |||||||
FACE AMOUNT | VALUE | |||||||
CHINA/HONG KONG: 9.69% |
||||||||
China Mobile Hong Kong, Ltd., Cnv.
2.250%, 11/03/05 |
$ | 48,650,000 | $ | 48,285,125 | ||||
PCCW Capital II, Ltd., Cnv.
1.000%, 01/29/07 |
38,436,000 | 43,432,680 | ||||||
Shangri-La Finance, Ltd., Cnv.
0.000%, 03/15/09 |
16,422,000 | 21,020,160 | ||||||
Hang Lung Properties, Ltd., Cnv.
5.500%, 12/29/49 |
11,120,000 | 12,927,000 | ||||||
BCA Finance, Ltd., Cnv.
0.000%, 11/28/08 |
12,170,000 | 10,892,150 | ||||||
PCCW Capital, Ltd., Cnv.
3.500%, 12/05/05 |
3,000,000 | 3,585,000 | ||||||
Total China/Hong Kong |
140,142,115 | |||||||
SOUTH KOREA: 3.09% |
||||||||
Korea Deposit Insurance Corp., Cnv.
2.250%, 10/11/05 |
25,486,000 | 31,984,930 | ||||||
KT Corp.
5.875%, 06/24/14 |
12,000,000 | 12,896,880 | ||||||
Total South Korea |
44,881,810 | |||||||
FACE AMOUNT | VALUE | |||||||
TAIWAN: 2.56% |
||||||||
Cathay Financial Holding Co., Cnv.
0.000%, 05/20/07 |
$ | 22,042,000 | $ | 28,158,655 | ||||
Sinopac Holdings Co., Cnv.
0.000%, 07/12/07 |
7,177,000 | 8,827,710 | ||||||
Total Taiwan |
36,986,365 | |||||||
INDIA: 2.01% |
||||||||
Sun Pharma Industries, Cnv.
0.000%, 11/26/09 |
15,795,000 | 16,150,387 | ||||||
Tata Motors, Ltd., Cnv.
1.000%, 04/27/11 |
13,466,000 | 12,893,695 | ||||||
Total India |
29,044,082 | |||||||
MALAYSIA: 1.05% |
||||||||
Prime Venture Labuan, Ltd., Cnv.
1.000%, 12/12/08 |
14,740,000 | 15,163,775 | ||||||
Total Malaysia |
15,163,775 | |||||||
SINGAPORE: 1.01% |
||||||||
DBS Bank, Ltd.
7.875%, 08/10/09 |
12,898,000 | 14,590,475 | ||||||
Total Singapore |
14,590,475 | |||||||
VALUE | ||||||||
TOTAL INTERNATIONAL
DOLLAR BONDS |
$ | 280,808,622 | ||||||
(Cost $272,346,200) |
||||||||
TOTAL INVESTMENTS: 98.41% |
1,423,752,949 | |||||||
(Cost $1,111,061,834***) |
||||||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 1.59% |
23,008,373 | |||||||
NET ASSETS: 100.00% |
$ | 1,446,761,322 | ||||||
* | As a percentage of net assets as of June 30, 2005 | |
** | Non-income producing security | |
*** | Cost for Federal tax purposes is $1,140,881,579 and net unrealized appreciation consists of: |
Gross unrealized appreciation
|
$ | 299,929,380 | ||||
Gross unrealized depreciation
|
(17,058,010 | ) | ||||
Net unrealized appreciation
|
$ | 282,871,370 | ||||
ADR American Depositary Receipt
|
||||||
Cnv. Convertible
|
||||||
NVDR Non-Voting Depositary Receipt
|
||||||
Pfd. Preferred
|
||||||
REIT Real Estate Investment Trust
|
PORTFOLIO MANAGEMENT | SYMBOL: MAKOX |
FUND AT A GLANCE | Fund Inception: 1/3/95 |
Average Annual Total Returns | ||||||||||||||||||||||||||||
SINCE | ||||||||||||||||||||||||||||
3 MO | YTD | 1 YR | 3 YRS | 5 YRS | 10 YRS | INCEPTION | ||||||||||||||||||||||
Matthews Korea Fund |
3.17 | % | 11.52 | % | 34.16 | % | 16.98 | % | 15.96 | % | 4.20 | % | 3.06 | % | ||||||||||||||
KOSPI Index1 |
2.49 | % | 13.30 | % | 43.33 | % | 17.39 | % | 6.39 | % | 1.25 | % | 1.99 | % | ||||||||||||||
Lipper Pacific ex-Japan Funds Category Avg2 |
3.29 | % | 5.50 | % | 28.16 | % | 15.97 | % | 4.64 | % | 3.73 | % | 3.84 | %* | ||||||||||||||
For the six months ended 6/30/05** |
1.37 | % | ||
For Calendar Year 2004 ** |
1.44 | % | ||
For Fiscal Year 2004 (ended 12/31/04) *** |
1.31 | % | ||
For the six months ended 6/30/05 (annualized)** |
5.31 | % | ||
For Calendar Year 2004 ** |
20.62 | % | ||
For Fiscal Year 2004 (ended 12/31/04) *** |
6.53 | % | ||
| For the four months ended 12/31/04 due to the Funds change of fiscal year-end from 8/31 to 12/31. |
South Korea |
98.4 | % | ||
Cash and other |
1.6 | % | ||
Financials |
19.7 | % | ||
Information Technology |
19.1 | % | ||
Consumer Discretionary |
17.4 | % | ||
Consumer Staples |
12.3 | % | ||
Telecom Services |
10.3 | % | ||
Health Care |
9.7 | % | ||
Industrials |
7.5 | % | ||
Utilities |
1.8 | % | ||
Materials |
0.6 | % | ||
Cash and other |
1.6 | % | ||
Large cap (over $5 billion) |
41.6 | % | ||
Mid cap ($1$5 billion) |
28.6 | % | ||
Small cap (under $1 billion) |
28.2 | % | ||
Cash and other |
1.6 | % | ||
| Figures have been rounded to total 100.0% |
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$4.55
|
$149.6 million | 2.00% within 90 calendar days | None | |||
1 | The South Korea Stock Price Index (KOSPI) is a capitalization-weighted index of all common stocks listed on the Korea Stock Exchange. Source: Bloomberg. |
2 | As of 6/30/05, the Lipper Pacific ex-Japan Funds Category Average consisted of 57 funds for the three-month, YTD and one-year periods; 54 funds for the three-year period; 42 funds for the five-year period; 23 funds for the 10-year period; and 16 funds since 12/31/94. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. |
3 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. |
4 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
800.789.ASIA [2742] www.matthewsfunds.com 17 |
SHARES | VALUE | |||||||
FINANCIALS: 19.65% |
||||||||
Commercial Banks: 14.00% |
||||||||
Kookmin Bank |
156,102 | $ | 7,099,661 | |||||
Hana Bank |
262,654 | 7,032,881 | ||||||
Shinhan Financial Group Co., Ltd. |
195,082 | 5,072,698 | ||||||
Kookmin Bank ADR |
38,339 | 1,747,492 | ||||||
20,952,732 | ||||||||
Capital Markets: 2.87% |
||||||||
Samsung Securities Co., Ltd. |
159,625 | 4,289,584 | ||||||
Insurance: 2.78% |
||||||||
Samsung Fire & Marine Insurance
Co., Ltd. |
51,373 | 4,166,452 | ||||||
Total Financials |
29,408,768 | |||||||
INFORMATION TECHNOLOGY: 19.06% |
||||||||
Semiconductors &
Semiconductor Equipment: 10.08% |
||||||||
Samsung Electronics Co., Ltd. |
27,981 | 13,361,638 | ||||||
Samsung Electronics Co., Ltd., Pfd. |
5,260 | 1,726,216 | ||||||
15,087,854 | ||||||||
Internet Software & Services: 3.10% |
||||||||
NHN Corp. ** |
44,772 | 4,630,840 | ||||||
Software: 2.41% |
||||||||
NCsoft Corp. ** |
48,486 | 3,608,914 | ||||||
Electronic Equipment & Instruments: 1.93% |
||||||||
Daeduck GDS Co., Ltd. |
164,500 | 1,532,895 | ||||||
Amotech Co., Ltd. |
117,970 | 1,345,622 | ||||||
2,878,517 | ||||||||
Computers & Peripherals: 1.54% |
||||||||
LG.Philips LCD Co., Ltd. ADR ** |
101,000 | 2,308,860 | ||||||
Total Information Technology |
28,514,985 | |||||||
CONSUMER DISCRETIONARY: 17.43% |
||||||||
Media: 6.15% |
||||||||
Cheil Communications, Inc. |
23,660 | $ | 4,448,400 | |||||
CJ Entertainment, Inc. |
234,441 | 3,569,304 | ||||||
GIIR, Inc. |
67,430 | 1,179,781 | ||||||
9,197,485 | ||||||||
Automobiles: 5.18% |
||||||||
Hyundai Motor Co. |
86,641 | 4,815,715 | ||||||
Hyundai Motor Co., Pfd. |
88,180 | 2,940,754 | ||||||
7,756,469 | ||||||||
Multiline Retail: 3.46% |
||||||||
Hyundai Department Store Co., Ltd. |
85,450 | 3,948,294 | ||||||
Taegu Department Store Co., Ltd. |
133,110 | 1,235,240 | ||||||
5,183,534 | ||||||||
Internet & Catalog Retail: 2.04% |
||||||||
GS Home Shopping, Inc. |
42,234 | 3,057,831 | ||||||
Textiles, Apparel & Luxury Goods: 0.36% |
||||||||
Handsome Co., Ltd. |
56,699 | 537,668 | ||||||
Auto Components: 0.24% |
||||||||
Korea Electric Terminal Co., Ltd. |
25,980 | 354,102 | ||||||
Total Consumer Discretionary |
26,087,089 | |||||||
CONSUMER STAPLES: 12.31% |
||||||||
Food Products: 5.46% |
||||||||
Nong Shim Co., Ltd. |
15,420 | 4,471,726 | ||||||
ORION Corp. |
15,760 | 2,338,482 | ||||||
Pulmuone Co., Ltd. |
43,510 | 1,354,299 | ||||||
8,164,507 | ||||||||
Personal Products: 3.94% |
||||||||
AmorePacific Corp. |
22,240 | 5,890,537 | ||||||
Beverages: 2.91% |
||||||||
Hite Brewery Co., Ltd. |
50,541 | 4,357,909 | ||||||
Total Consumer Staples |
18,412,953 | |||||||
18 MATTHEWS ASIAN FUNDS |
SHARES | VALUE | |||||||
TELECOMMUNICATION SERVICES: 10.27% |
||||||||
Wireless Telecommunication Services: 7.44% |
||||||||
SK Telecom Co., Ltd. |
43,705 | $ | 7,689,038 | |||||
SK Telecom Co., Ltd. ADR |
96,700 | 1,972,680 | ||||||
KT Freetel Co., Ltd. |
63,651 | 1,476,679 | ||||||
11,138,397 | ||||||||
Diversified Telecommunication Services: 2.83% |
||||||||
KT Corp. |
65,880 | 2,674,683 | ||||||
KT Corp. ADR |
72,300 | 1,554,450 | ||||||
4,229,133 | ||||||||
Total Telecommunication Services |
15,367,530 | |||||||
HEALTH CARE: 9.74% |
||||||||
Pharmaceuticals: 9.74% |
||||||||
Yuhan Corp. |
39,433 | 4,555,093 | ||||||
Hanmi Pharm Co., Ltd. |
65,351 | 4,434,645 | ||||||
LG Life Sciences, Ltd. ** |
77,120 | 3,056,472 | ||||||
Daewoong Pharmaceutical Co., Ltd. |
83,960 | 2,520,017 | ||||||
Total Health Care |
14,566,227 | |||||||
INDUSTRIALS: 7.53% |
||||||||
Commercial Services & Supplies: 6.06% |
||||||||
S1 Corp. |
120,455 | 5,123,267 | ||||||
Sindo Ricoh Co., Ltd. |
50,406 | 2,718,854 | ||||||
Shinsegae Food Systems Co., Ltd. |
43,509 | 1,219,682 | ||||||
9,061,803 | ||||||||
Construction & Engineering: 1.47% |
||||||||
Tae Young Corp. |
66,010 | 2,204,587 | ||||||
Total Industrials |
11,266,390 | |||||||
UTILITIES: 1.77% |
||||||||
Electric Utilities: 1.40% |
||||||||
Korea Electric Power Corp. |
68,510 | $ | 2,099,340 | |||||
Gas Utilities: 0.37% |
||||||||
Samchully Co., Ltd. |
6,780 | 553,804 | ||||||
Total Utilities |
2,653,144 | |||||||
MATERIALS: 0.60% |
||||||||
Chemicals: 0.60% |
||||||||
LG Chem, Ltd. |
24,420 | 892,292 | ||||||
Total Materials |
892,292 | |||||||
TOTAL INVESTMENTS: 98.36% |
147,169,378 | |||||||
(Cost $86,581,594***) |
||||||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 1.64% |
2,459,169 | |||||||
NET ASSETS: 100.00% |
$ | 149,628,547 | ||||||
* | As a percentage of net assets as of June 30, 2005 | |
** | Nonincome producing security | |
*** | Cost for Federal tax purposes is $87,804,277 and net unrealized appreciation consists of: |
Gross unrealized appreciation |
$ | 61,988,174 | ||
Gross unrealized depreciation |
(2,623,073 | ) | ||
Net unrealized appreciation |
$ | 59,365,101 | ||
800.789.ASIA [2742] www.matthewsfunds.com 19 |
PORTFOLIO MANAGEMENT | SYMBOL: MCHFX |
20 MATTHEWS ASIAN FUNDS |
FUND AT A GLANCE | Fund Inception: 2/19/98 |
Average Annual Total Returns | ||||||||||||||||||||||||
SINCE | ||||||||||||||||||||||||
3 MO | YTD | 1 YR | 3 YRS | 5 YRS | INCEPTION | |||||||||||||||||||
Matthews China Fund |
0.28 | % | 0.79 | % | 10.24 | % | 13.96 | % | 11.82 | % | 7.17 | % | ||||||||||||
MSCI China Index1 |
5.62 | % | 5.25 | % | 20.17 | % | 20.50 | % | 2.16 | % | 7.05 | % | ||||||||||||
Lipper China Region Funds Category Average2 |
2.97 | % | 1.56 | % | 17.75 | % | 14.55 | % | 3.40 | % | 6.08 | %* | ||||||||||||
For the six months ended 6/30/05** |
1.32 | % | ||
For Calendar Year 2004 ** |
1.47 | % | ||
For Fiscal Year 2004 (ended 12/31/04) *** |
1.43 | % | ||
For the six months ended 6/30/05 (annualized)** |
8.56 | % | ||
For Calendar Year 2004 ** |
28.88 | % | ||
For Fiscal Year 2004 (ended 12/31/04) *** |
4.99 | % | ||
| For the four months ended 12/31/04 due to the Funds change of fiscal year-end from 8/31 to 12/31. |
SAR (Hong Kong) |
37.0 | % | ||
H Share |
29.8 | % | ||
China-affiliated corporations |
25.3 | % | ||
B Share |
6.6 | % | ||
Cash and other |
1.3 | % | ||
Consumer Discretionary |
22.9 | % | ||
Industrials |
15.3 | % | ||
Financials |
14.3 | % | ||
Information Technology |
10.5 | % | ||
Energy |
9.0 | % | ||
Utilities |
8.1 | % | ||
Telecom Services |
7.7 | % | ||
Consumer Staples |
4.8 | % | ||
Materials |
3.6 | % | ||
Health Care |
2.5 | % | ||
Cash and other |
1.3 | % | ||
Large cap (over $5 billion) |
33.6 | % | ||
Mid cap ($1$5 billion) |
49.2 | % | ||
Small cap (under $1 billion) |
15.9 | % | ||
Cash and other |
1.3 | % | ||
| Figures have been rounded to total 100.0% |
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$14.12
|
$385.2 million | 2.00% within 90 calendar days | None | |||
1 | The MSCI China Index is a free floatadjusted market capitalizationweighted index of Chinese equities that includes Red Chips and H shares listed on the Hong Kong exchange, and B shares listed on the Shanghai and Shenzhen exchanges. Source: Bloomberg. |
2 | As of 6/30/05, the Lipper China Region Funds Category Average consisted of 34 funds for the three-month and YTD periods, 32 funds for the one-year period, 22 funds for the three- and five-year periods, and 16 funds since 2/28/98. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. |
3 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. |
4 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
5 | SAR (Hong Kong) companies are companies that conduct business in mainland China. China-affiliated corporations, also known as Red Chips, are mainland China companies with partial state ownership listed and incorporated in Hong Kong. H Shares are mainland China companies listed on the Hong Kong exchange but incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. |
800.789.ASIA [2742] www.matthewsfunds.com 21 |
SHARES | VALUE | |||||||
CONSUMER DISCRETIONARY: 22.90% |
||||||||
Hotels, Restaurants & Leisure: 7.30% |
||||||||
Shangri-La Asia, Ltd. |
8,953,600 | $ | 13,826,174 | |||||
China Travel International
Investment Hong Kong, Ltd. |
24,034,000 | 7,268,035 | ||||||
Café de Coral Holdings, Ltd. |
5,880,100 | 6,696,549 | ||||||
China Travel International
Investment Hong Kong, Ltd.
Warrants, Expires 5/31/06 ** |
2,942,400 | 336,988 | ||||||
28,127,746 | ||||||||
Media: 4.98% |
||||||||
Television Broadcasts, Ltd. |
2,542,000 | 14,360,288 | ||||||
Clear Media, Ltd. ** |
5,534,000 | 4,806,910 | ||||||
19,167,198 | ||||||||
Textiles, Apparel & Luxury Goods: 2.76% |
||||||||
Weiqiao Textile Co., Ltd.
H Shares |
4,445,500 | 6,264,088 | ||||||
Texwinca Holdings, Ltd. |
5,284,000 | 4,385,768 | ||||||
10,649,856 | ||||||||
Automobiles: 2.39% |
||||||||
Denway Motors, Ltd. |
25,805,200 | 9,214,957 | ||||||
Household Durables: 1.86% |
||||||||
TCL Multimedia Technology
Holdings, Ltd. |
24,764,000 | 4,620,744 | ||||||
Lerado Group Holding Co., Ltd. |
24,089,000 | 2,541,884 | ||||||
7,162,628 | ||||||||
Specialty Retail: 1.82% |
||||||||
Giordano International, Ltd. |
10,188,000 | 7,014,001 | ||||||
Distributors: 1.79% |
||||||||
Li & Fung, Ltd. |
3,316,000 | 6,891,443 | ||||||
Total Consumer Discretionary |
88,227,829 | |||||||
INDUSTRIALS: 15.24% |
||||||||
Transportation Infrastructure: 9.86% |
||||||||
Cosco Pacific, Ltd. |
5,948,000 | $ | 11,557,689 | |||||
China Merchants Holdings
International Co., Ltd. |
5,205,000 | 10,113,949 | ||||||
Zhejiang Expressway Co.,
Ltd. H Shares |
9,656,000 | 6,585,613 | ||||||
Beijing Capital International
Airport Co., Ltd. H Shares |
13,616,000 | 5,431,682 | ||||||
GZI Transport, Ltd. |
12,384,000 | 4,302,767 | ||||||
37,991,700 | ||||||||
Machinery: 2.05% |
||||||||
Shanghai Zhenhua Port
Machinery Co., Ltd. B Shares |
7,896,382 | 7,896,382 | ||||||
Electrical Equipment: 2.01% |
||||||||
BYD Co., Ltd. H Shares |
3,599,000 | 7,757,464 | ||||||
Air Freight & Logistics: 0.86% |
||||||||
Sinotrans, Ltd. H Shares |
10,566,000 | 3,297,201 | ||||||
Airlines: 0.46% |
||||||||
Air China, Ltd. ** |
5,230,000 | 1,766,665 | ||||||
Total Industrials |
58,709,412 | |||||||
FINANCIALS: 14.32% |
||||||||
Real Estate: 8.31% |
||||||||
Swire Pacific, Ltd. A Shares |
2,103,500 | 18,609,654 | ||||||
China Vanke Co., Ltd. B Shares |
30,595,287 | 13,386,176 | ||||||
31,995,830 | ||||||||
Commercial Banks: 3.50% |
||||||||
BOC Hong Kong Holdings, Ltd. |
7,131,500 | 13,490,290 | ||||||
Insurance: 2.51% |
||||||||
China Life Insurance Co., Ltd.
H Shares ** |
9,854,000 | 6,720,654 | ||||||
China Insurance International
Holdings Co., Ltd. |
7,934,000 | 2,935,304 | ||||||
9,655,958 | ||||||||
Total Financials |
55,142,078 | |||||||
22 MATTHEWS ASIAN FUNDS |
SHARES | VALUE | |||||||
INFORMATION TECHNOLOGY: 10.49% |
||||||||
Computers & Peripherals: 4.67% |
||||||||
Lenovo Group, Ltd. |
32,702,000 | $ | 9,678,883 | |||||
TPV Technology, Ltd. |
11,942,000 | 8,298,391 | ||||||
17,977,274 | ||||||||
Communications Equipment: 2.45% |
||||||||
ZTE Corp. H Shares |
1,600,000 | 4,787,029 | ||||||
Comba Telecom Systems
Holdings, Ltd. |
11,214,000 | 4,653,861 | ||||||
9,440,890 | ||||||||
Internet Software & Services: 1.57% |
||||||||
SINA Corp. ** |
217,300 | 6,062,670 | ||||||
IT Services: 1.43% |
||||||||
Travelsky Technology, Ltd.
H Shares |
6,487,000 | 5,509,484 | ||||||
Semiconductors &
Semiconductor Equipment: 0.37% |
||||||||
Semiconductor Manufacturing
International Corp. ADR ** |
138,000 | 1,421,400 | ||||||
Total Information Technology |
40,411,718 | |||||||
ENERGY: 8.97% |
||||||||
Oil & Gas: 7.24% |
||||||||
PetroChina Co., Ltd. H Shares |
14,476,000 | 10,711,234 | ||||||
CNOOC, Ltd. |
17,072,000 | 10,215,519 | ||||||
Sinopec Zhenhai Refining and
Chemical Co., Ltd. |
7,352,000 | 6,953,700 | ||||||
27,880,453 | ||||||||
Energy Equipment & Services: 1.73% |
||||||||
China Oilfield Services, Ltd.
H Shares |
18,018,000 | 6,666,034 | ||||||
Total Energy |
34,546,487 | |||||||
UTILITIES: 8.11% |
||||||||
Electric Utilities: 5.25% |
||||||||
Datang International Power
Generation Co., Ltd. H Shares |
10,516,000 | $ | 7,984,095 | |||||
Huaneng Power International,
Inc. H Shares |
7,876,000 | 5,777,017 | ||||||
Guangdong Electric Power
Development Co., Ltd. B Shares |
8,471,726 | 4,120,850 | ||||||
Huaneng Power International,
Inc. ADR |
78,800 | 2,324,600 | ||||||
20,206,562 | ||||||||
Gas Utilities: 2.86% |
||||||||
Hong Kong and China Gas
Co., Ltd. |
5,421,400 | 11,022,792 | ||||||
Total Utilities |
31,229,354 | |||||||
TELECOMMUNICATION SERVICES: 7.66% |
||||||||
Wireless Telecommunication
Services: 5.70% |
||||||||
China Mobile HK, Ltd. |
5,642,083 | 21,018,955 | ||||||
China Mobile HK, Ltd. ADR |
50,500 | 938,795 | ||||||
21,957,750 | ||||||||
Diversified Telecommunication
Services: 1.96% |
||||||||
China Telecom Corp., Ltd.
H Shares |
20,988,000 | 7,562,270 | ||||||
Total Telecommunication Services |
29,520,020 | |||||||
800.789.ASIA [2742] www.matthewsfunds.com 23 |
SHARES | VALUE | |||||||
CONSUMER STAPLES: 4.82% |
||||||||
Food & Staples Retailing: 2.30% |
||||||||
Lianhua Supermarket Holdings,
Ltd. H Shares |
7,772,000 | $ | 8,851,139 | |||||
Beverages: 1.77% |
||||||||
Tsingtao Brewery Co., Ltd.
H Shares |
6,351,000 | 6,824,199 | ||||||
Food Products: 0.75% |
||||||||
China Mengniu Dairy Co., Ltd. |
4,366,000 | 2,893,437 | ||||||
Total Consumer Staples |
18,568,775 | |||||||
MATERIALS: 3.64% |
||||||||
Construction Materials: 2.89% |
||||||||
Cheung Kong Infrastructure
Holdings, Ltd. |
3,734,500 | 11,125,167 | ||||||
Metals & Mining: 0.75% |
||||||||
China Shenhua Energy Co.,
Ltd. H Shares ** |
3,000,000 | 2,895,380 | ||||||
Total Materials |
14,020,547 | |||||||
HEALTH CARE: 2.53% |
||||||||
Pharmaceuticals: 1.35% |
||||||||
China Pharmaceutical
Group, Ltd.** |
25,466,000 | $ | 5,210,519 | |||||
Biotechnology: 1.17% |
||||||||
Global Bio-chem Technology
Group Co., Ltd. |
7,204,000 | 4,472,951 | ||||||
Global Bio-chem Technology
Group Co., Ltd.
Warrants, Expires 5/31/07 ** |
1,089,000 | 18,218 | ||||||
4,491,169 | ||||||||
Health Care Equipment & Supplies: 0.01% |
||||||||
Moulin Global Eyecare
Holdings *** |
7,192,000 | 46,274 | ||||||
Total Health Care |
9,747,962 | |||||||
24 MATTHEWS ASIAN FUNDS |
VALUE | ||||
TOTAL INVESTMENTS: 98.68% |
$ | 380,124,182 | ||
(Cost $349,453,168 ****) |
||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 1.32% |
5,084,644 | |||
NET ASSETS: 100.00% |
$ | 385,208,826 | ||
* | As a percentage of net assets as of June 30, 2005 | |||||
** | Nonincome producing security | |||||
*** | Valued at fair value under direction of the Board of Trustees (Note 1-A) | |||||
**** | Cost for Federal tax purposes is $349,991,692 and net unrealized appreciation consists of: | |||||
Gross unrealized appreciation | $ | 61,562,193 | ||||
Gross unrealized depreciation | (31,429,703 | ) | ||||
Net unrealized appreciation | $ | 30,132,490 | ||||
ADR American Depositary Receipt |
800.789.ASIA [2742] www.matthewsfunds.com 25 |
PORTFOLIO MANAGEMENT | SYMBOL: MJFOX |
26 MATTHEWS ASIAN FUNDS |
FUND AT A GLANCE | Fund Inception: 12/31/98 |
Average Annual Total Returns | ||||||||||||||||||||||||
SINCE | ||||||||||||||||||||||||
3 MO | YTD | 1 YR | 3 YRS | 5 YRS | INCEPTION | |||||||||||||||||||
Matthews Japan Fund |
3.39 | % | 4.47 | % | 2.28 | % | 14.24 | % | 4.79 | % | 9.23 | % | ||||||||||||
MSCI Developed Markets Japan Index1 |
3.55 | % | 5.80 | % | 1.40 | % | 7.28 | % | 6.42 | % | 1.48 | % | ||||||||||||
TOPIX Index2 |
3.73 | % | 4.33 | % | 1.50 | % | 8.49 | % | 5.79 | % | 2.73 | % | ||||||||||||
Lipper Japanese Funds Category Average3 |
2.17 | % | 4.15 | % | 3.86 | % | 6.14 | % | 8.76 | % | 3.13 | % | ||||||||||||
For the six months ended 6/30/05** |
1.31 | % | ||
For Calendar Year 2004** |
1.41 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
1.38 | % | ||
For the six months ended 6/30/05 (annualized)** |
11.46 | % | ||
For Calendar Year 2004** |
17.16 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
5.30 | % | ||
| For the four months ended 12/31/04 due to the Funds change of fiscal year-end from 8/31 to 12/31. |
Japan |
99.5 | % | ||
Cash and other |
0.5 | % | ||
Consumer Discretionary |
32.7 | % | ||
Financials |
23.0 | % | ||
Information Technology |
14.5 | % | ||
Industrials |
10.0 | % | ||
Consumer Staples |
9.6 | % | ||
Telecom Services |
5.8 | % | ||
Health Care |
4.0 | % | ||
Cash and other |
0.5 | % | ||
Large cap (over $5 billion) |
50.5 | % | ||
Mid cap ($1$5 billion) |
35.4 | % | ||
Small cap (under $1 billion) |
13.6 | % | ||
Cash and other |
0.5 | % | ||
| Figures have been rounded to total 100.0% |
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$15.40
|
$185.2 million | 2.00% within 90 calendar days | None | |||
1 | The MSCI Developed Markets Japan Index is a free floatadjusted market capitalizationweighted index of Japanese equities listed in Japan. Source: Bloomberg. |
2 | The Tokyo Price Index (TOPIX) is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. Source: Bloomberg. |
3 | As of 6/30/05, the Lipper Japanese Funds Category Average consisted of 41 funds for the three-month, YTD and one-year periods; 36 funds for the three-year period; 32 funds for the five-year period; and 28 funds since 12/31/98. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. |
4 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. |
5 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
800.789.ASIA [2742] www.matthewsfunds.com 27 |
SHARES | VALUE | |||||||
CONSUMER DISCRETIONARY: 32.70% |
||||||||
Household Durables: 10.02% |
||||||||
Sharp Corp. |
461,000 | $ | 7,207,411 | |||||
Matsushita Electric Industrial
Co., Ltd. |
377,000 | 5,720,774 | ||||||
Makita Corp. |
286,000 | 5,621,495 | ||||||
18,549,680 | ||||||||
Leisure, Equipment &
Products: 6.88% |
||||||||
Shimano, Inc. |
209,000 | 5,935,894 | ||||||
Studio Alice Co., Ltd. |
214,500 | 4,554,571 | ||||||
Fuji Photo Film Co., Ltd. |
70,000 | 2,253,178 | ||||||
12,743,643 | ||||||||
Specialty Retail: 5.73% |
||||||||
Nitori Co., Ltd. |
57,950 | 4,153,841 | ||||||
Yamada Denki Co., Ltd. |
59,900 | 3,445,695 | ||||||
Gulliver International Co., Ltd. |
21,570 | 3,002,802 | ||||||
10,602,338 | ||||||||
Media: 2.53% |
||||||||
Fuji Television Network, Inc. |
1,471 | 2,851,546 | ||||||
Jupiter Telecommunications
Co., Ltd. ** |
2,178 | 1,840,038 | ||||||
4,691,584 | ||||||||
Automobiles: 2.42% |
||||||||
Honda Motor Co., Ltd. ADR |
182,200 | 4,483,942 | ||||||
Multiline Retail: 2.16% |
||||||||
Mitsukoshi, Ltd. |
889,000 | 4,007,754 | ||||||
Internet & Catalog Retail: 1.58% |
||||||||
Rakuten, Inc. |
3,620 | 2,901,614 | ||||||
Belluna Co., Ltd. |
781 | 23,026 | ||||||
2,924,640 | ||||||||
Hotels Restaurants & Leisure: 1.38% |
||||||||
H.I.S. Co., Ltd. |
118,700 | 2,563,218 | ||||||
Total Consumer Discretionary |
60,566,799 | |||||||
FINANCIALS: 22.97% |
||||||||
Commercial Banks: 10.70% |
||||||||
The Sumitomo Trust and Banking
Co., Ltd. |
1,210,000 | $ | 7,364,079 | |||||
Mizuho Financial Group, Inc. |
1,491 | 6,748,553 | ||||||
The Joyo Bank, Ltd. |
1,165,000 | 5,693,175 | ||||||
19,805,807 | ||||||||
Capital Markets: 5.49% |
||||||||
Monex Beans Holdings, Inc. |
5,240 | 5,433,234 | ||||||
Nomura Holdings, Inc. |
395,000 | 4,726,039 | ||||||
10,159,273 | ||||||||
Real Estate: 3.57% |
||||||||
Japan Retail Fund Investment
Corp. REIT |
416 | 3,567,000 | ||||||
Japan Real Estate Investment
Corp. REIT |
359 | 3,049,121 | ||||||
6,616,121 | ||||||||
Insurance: 3.21% |
||||||||
T&D Holdings, Inc. |
126,445 | 5,951,158 | ||||||
Total Financials |
42,532,359 | |||||||
INFORMATION TECHNOLOGY: 14.47% |
||||||||
Software: 6.04% |
||||||||
Square Enix Co., Ltd. |
187,600 | $ | 5,717,140 | |||||
Nintendo Co., Ltd. |
52,215 | 5,461,131 | ||||||
11,178,271 | ||||||||
Office Electronics: 3.35% |
||||||||
Canon, Inc. ADR |
117,900 | 6,205,077 | ||||||
IT Services: 3.19% |
||||||||
NIWS Co., Ltd. |
4,490 | 5,910,558 | ||||||
Electronic Equipment & Instruments: 1.14% |
||||||||
Murata Manufacturing Co., Ltd. |
41,300 | 2,103,913 | ||||||
Internet Software & Services: 0.75% |
||||||||
Kakaku.com, Inc. |
105 | 855,829 | ||||||
Mediaseek, Inc. ** |
218 | 534,632 | ||||||
1,390,461 | ||||||||
Total Information Technology |
26,788,280 | |||||||
28 MATTHEWS ASIAN FUNDS |
SHARES | VALUE | |||||||
INDUSTRIALS: 9.98% |
||||||||
Commercial Services & Supplies: 5.71% |
||||||||
Secom Co., Ltd. |
158,500 | $ | 6,816,743 | |||||
Toppan Forms Co., Ltd. |
334,500 | 3,754,869 | ||||||
10,571,612 | ||||||||
Air Freight & Logistics: 2.29% |
||||||||
Yamato Transport Co., Ltd. |
305,000 | 4,234,965 | ||||||
Building Products: 1.98% |
||||||||
Toto, Ltd. |
464,000 | 3,668,993 | ||||||
Total Industrials |
18,475,570 | |||||||
CONSUMER STAPLES: 9.64% |
||||||||
Beverages: 3.09% |
||||||||
Ito En, Ltd. |
111,600 | 5,725,399 | ||||||
Food Products: 2.98% |
||||||||
Hokuto Corp. |
278,680 | 5,515,306 | ||||||
Food Staples & Retailing: 1.99% |
||||||||
Seven-Eleven Japan Co., Ltd. |
133,000 | 3,693,445 | ||||||
Personal Products: 1.58% |
||||||||
Shiseido Co., Ltd. |
232,000 | 2,928,501 | ||||||
Total Consumer Staples |
17,862,651 | |||||||
TELECOMMUNICATION SERVICES: 5.82% |
||||||||
Diversified Telecommunication Services: 3.53% |
||||||||
Nippon Telegraph and Telephone
Corp. ADR |
176,125 | 3,781,404 | ||||||
Usen Corp. |
104,400 | 2,758,020 | ||||||
6,539,424 | ||||||||
Wireless Telecommunication Services: 2.29% |
||||||||
NTT DoCoMo, Inc. |
2,865 | 4,236,408 | ||||||
Total Telecommunication Services |
10,775,832 | |||||||
HEALTH CARE: 3.95% |
||||||||
Health Care Equipment & Supplies: 2.88% |
||||||||
Nakanishi, Inc. |
53,000 | $ | 5,332,973 | |||||
Pharmaceuticals: 1.07% |
||||||||
Takeda Pharmaceutical Co., Ltd. |
39,900 | 1,978,630 | ||||||
Total Health Care |
7,311,603 | |||||||
TOTAL INVESTMENTS: 99.53% |
184,313,094 | |||||||
(Cost $169,487,403***) |
||||||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 0.47% |
874,123 | |||||||
NET ASSETS: 100.00% |
$ | 185,187,217 | ||||||
* | As a percentage of net assets as of June 30, 2005 | |||||
** | Nonincome producing security | |||||
*** | Cost for Federal tax purposes is $171,364,181 and net unrealized appreciation consists of: | |||||
Gross unrealized appreciation | $ | 23,090,628 | ||||
Gross unrealized depreciation | (10,141,715 | ) | ||||
Net unrealized appreciation | $ | 12,948,913 |
800.789.ASIA [2742] www.matthewsfunds.com 29 |
PORTFOLIO MANAGEMENT | SYMBOL: MATFX |
30 MATTHEWS ASIAN FUNDS |
FUND AT A GLANCE | Fund Inception: 12/27/99 |
Average Annual Total Returns | ||||||||||||||||||||||||
SINCE | ||||||||||||||||||||||||
3 MO | YTD | 1 YR | 3 YRS | 5 YRS | INCEPTION | |||||||||||||||||||
Matthews Asian Technology Fund |
2.24 | % | 0.37 | % | 7.26 | % | 14.78 | % | 7.50 | % | 9.48 | % | ||||||||||||
MSCI/Matthews Asian Technology Index1 |
0.13 | % | 2.63 | % | 0.95 | % | 4.85 | % | 13.38 | % | 15.22 | % | ||||||||||||
Lipper Science and Tech Funds Category Avg2 |
3.25 | % | 6.05 | % | 2.92 | % | 9.69 | % | 18.73 | % | 15.95 | %* | ||||||||||||
For the six months ended 6/30/05** |
1.48 | % | ||
For Calendar Year 2004** |
1.79 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
1.60 | % | ||
For the six months ended 6/30/05 (annualized)** |
16.82 | % | ||
For Calendar Year 2004** |
37.89 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
7.36 | % | ||
| For the four months ended 12/31/04 due to the Funds change of fiscal year-end from 8/31 to 12/31. |
Japan |
27.5 | % | ||
China/Hong Kong |
22.1 | % | ||
South Korea |
19.5 | % | ||
Taiwan |
11.6 | % | ||
India |
7.1 | % | ||
Thailand |
4.3 | % | ||
Singapore |
3.1 | % | ||
Indonesia |
2.8 | % | ||
Australia |
0.6 | % | ||
Cash and other |
1.4 | % | ||
Information Technology |
66.5 | % | ||
Telecom Services |
18.7 | % | ||
Consumer Discretionary |
10.0 | % | ||
Health Care |
3.4 | % | ||
Cash and other |
1.4 | % | ||
Large cap (over $5 billion) |
55.2 | % | ||
Mid cap ($1$5 billion) |
26.7 | % | ||
Small cap (under $1 billion) |
16.7 | % | ||
Cash and other |
1.4 | % | ||
Figures have been rounded to total 100.0% |
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$5.47
|
$36.7 million | 2.00% within 90 calendar days | None | |||
1 | The MSCI/Matthews Asian Technology Index is a free floatadjusted market capitalizationweighted index of Asian equities tracking a broad range of technology stocks including semiconductor equipment and products, communications equipment, computers and peripherals, electronic equipment and instruments, office electronics, software, IT consulting and services, Internet software and services, diversified telecommunications services, and wireless telecommunications services. Source: Morgan Stanley Capital International. |
2 | As of 6/30/05, the Lipper Science and Technology Funds Category Average consisted of 295 funds for the three-month period, 289 funds for the YTD period, 284 funds for the one-year period, 265 funds for the three-year period, 185 funds for the five-year period, and 121 funds since 12/31/99. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. |
3 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. |
4 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
800.789.ASIA [2742] www.matthewsfunds.com 31 |
SHARES | VALUE | |||||||
JAPAN: 27.50% |
||||||||
Matsushita Electric Industrial
Co., Ltd. |
78,000 | $ | 1,183,608 | |||||
Sharp Corp. |
74,000 | 1,156,938 | ||||||
Nintendo Co., Ltd. |
10,685 | 1,117,537 | ||||||
NIWS Co., Ltd. |
810 | 1,066,270 | ||||||
Rakuten, Inc. |
1,161 | 930,600 | ||||||
Nidec Corp. |
8,100 | 857,398 | ||||||
Usen Corp. |
29,600 | 781,967 | ||||||
Canon, Inc. ADR |
12,700 | 668,401 | ||||||
Square Enix Co., Ltd. |
19,300 | 588,171 | ||||||
NTT DoCoMo, Inc. |
367 | 542,674 | ||||||
Jupiter Telecommunications
Co., Ltd. ** |
488 | 412,277 | ||||||
Kakaku.com, Inc. |
49 | 399,387 | ||||||
Access Co., Ltd. ** |
19 | 390,587 | ||||||
Total Japan |
10,095,815 | |||||||
CHINA/HONG KONG: 22.10% |
||||||||
China Mobile HK, Ltd. ADR |
76,400 | 1,420,276 | ||||||
ASM Pacific Technology, Ltd. |
302,500 | 1,416,935 | ||||||
Lenovo Group, Ltd. |
3,335,000 | 987,067 | ||||||
TPV Technology, Ltd. |
1,152,000 | 800,515 | ||||||
SINA Corp. ** |
26,600 | 742,140 | ||||||
The9, Ltd. ADR ** |
24,400 | 635,376 | ||||||
Tencent Holdings, Ltd. |
803,000 | 609,664 | ||||||
Asia Satellite
Telecommunications
Holdings, Ltd. |
346,400 | 606,233 | ||||||
Comba Telecom Systems
Holdings, Ltd. |
1,156,000 | 479,745 | ||||||
ZTE Corp. H Shares |
139,200 | 416,471 | ||||||
Total China/Hong Kong |
8,114,422 | |||||||
SOUTH KOREA: 19.49% |
||||||||
Samsung Electronics Co., Ltd. |
4,048 | $ | 1,933,023 | |||||
NHN Corp. ** |
12,939 | 1,338,302 | ||||||
LG Life Sciences, Ltd. ** |
26,212 | 1,038,852 | ||||||
NCSoft Corp. ** |
13,463 | 1,002,079 | ||||||
SK Telecom Co., Ltd. |
5,129 | 902,347 | ||||||
LG.Philips LCD Co., Ltd. ADR ** |
22,900 | 523,494 | ||||||
Amotech Co., Ltd. |
36,853 | 420,363 | ||||||
Total South Korea |
7,158,460 | |||||||
TAIWAN: 11.62% |
||||||||
Hon Hai Precision Industry
Co., Ltd. |
305,492 | 1,586,533 | ||||||
Taiwan Semiconductor
Manufacturing Co., Ltd. |
879,331 | 1,529,633 | ||||||
Quanta Computer, Inc. |
392,386 | 749,467 | ||||||
Sunplus Technology Co., Ltd. |
285,595 | 402,132 | ||||||
Total Taiwan |
4,267,765 | |||||||
INDIA: 7.11% |
||||||||
Infosys Technologies, Ltd. |
26,584 | 1,441,651 | ||||||
Wipro, Ltd. |
66,423 | 1,169,641 | ||||||
Total India |
2,611,292 | |||||||
THAILAND: 4.28% |
||||||||
Advanced Info Service
Public Co., Ltd. |
462,800 | 1,097,505 | ||||||
Shin Satellite Public Co., Ltd. ** |
1,241,800 | 474,784 | ||||||
Total Thailand |
1,572,289 | |||||||
SINGAPORE: 3.09% |
||||||||
Venture Corp., Ltd. |
119,600 | 1,135,095 | ||||||
Total Singapore |
1,135,095 | |||||||
32 MATTHEWS ASIAN FUNDS |
SHARES | VALUE | |||||||
INDONESIA: 2.84% |
||||||||
PT Telekomunikasi
Indonesia ADR |
50,000 | $ | 1,042,500 | |||||
Total Indonesia |
1,042,500 | |||||||
AUSTRALIA: 0.58% |
||||||||
Novogen, Ltd. ** |
60,532 | 214,257 | ||||||
Total Australia |
214,257 | |||||||
TOTAL INVESTMENTS: 98.61% |
36,211,895 | |||||||
(Cost $30,894,338***) |
||||||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 1.39% |
509,576 | |||||||
NET ASSETS: 100.00% |
$ | 36,721,471 | ||||||
* | As a percentage of net assets as of June 30, 2005 | |||||
** | Nonincome producing security | |||||
*** | Cost for Federal tax purposes is $31,126,867 and net unrealized appreciation consists of: | |||||
Gross unrealized appreciation | $ | 6,958,492 | ||||
Gross unrealized depreciation | (1,873,464 | ) | ||||
Net unrealized appreciation | $ | 5,085,028 |
800.789.ASIA [2742] www.matthewsfunds.com 33 |
PORTFOLIO MANAGEMENT | SYMBOL: MPACX |
34 MATTHEWS ASIAN FUNDS |
FUND AT A GLANCE | Fund Inception: 10/31/03 |
SINCE | ||||||||||||||||
3 MO | YTD | 1 YR | INCEPTION* | |||||||||||||
Matthews Asia Pacific Fund |
1.27 | % | 1.11 | % | 16.06 | % | 15.79 | % | ||||||||
MSCI All Country Asia Pacific Index1 |
0.37 | % | 1.08 | % | 10.52 | % | 13.07 | % | ||||||||
Lipper Pacific Region Funds Category Average2 |
0.11 | % | 0.11 | % | 10.99 | % | 12.36 | % | ||||||||
For the six months ended 6/30/05** |
1.35 | % | ||
For Calendar Year 2004** |
1.59 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
1.51 | % | ||
For the six months ended 6/30/05 (annualized)** |
11.08 | % | ||
For Calendar Year 2004** |
9.05 | % | ||
For Fiscal Year 2004 (ended 12/31/04)*** |
1.28 | % | ||
| For the four months ended 12/31/04 due to the Funds change of fiscal year-end from 8/31 to 12/31. |
Japan |
34.9 | % | ||
China/Hong Kong |
22.0 | % | ||
South Korea |
13.1 | % | ||
Singapore |
7.0 | % | ||
Taiwan |
4.8 | % | ||
India |
4.4 | % | ||
Australia |
3.6 | % | ||
Thailand |
3.3 | % | ||
Indonesia |
2.3 | % | ||
United Kingdom1 |
1.4 | % | ||
Cash and other |
3.2 | % | ||
Consumer Discretionary |
26.2 | % | ||
Financials |
24.4 | % | ||
Information Technology |
17.4 | % | ||
Industrials |
9.0 | % | ||
Consumer Staples |
8.8 | % | ||
Telecom Services |
7.1 | % | ||
Health Care |
2.0 | % | ||
Materials |
1.2 | % | ||
Utilities |
0.7 | % | ||
Cash and other |
3.2 | % | ||
Large cap (over $5 billion) |
49.0 | % | ||
Mid cap ($1$5 billion) |
36.3 | % | ||
Small cap (under $1 billion) |
11.5 | % | ||
Cash and other |
3.2 | % | ||
NAV | NET ASSETS | REDEMPTION FEE | 12B-1 FEES | |||
$12.72
|
$168.5 million | 2.00% within 90 calendar days | None | |||
1 | The MSCI All Country Asia Pacific Index is a free float-adjusted market capitalizationweighted index measuring the equity market performance in 14 emerging and developed markets of the Asia Pacific region. As of 6/30/05, 1.43% of the assets in the Matthews Asia Pacific Fund were invested in the United Kingdom, which is not included in the MSCI All Country Asia Pacific Index. Source: Bloomberg. |
2 | As of 6/30/05, the Lipper Pacific Region Funds Category Average consisted of 28 funds for the three-month period, 27 funds for the YTD and one-year periods, and 27 funds since 10/31/03. Lipper, Inc. fund performance does not reflect sales charges and is based on total return, including reinvestment of dividends and capital gains, for the stated periods. |
3 | Includes management fee, administration and shareholder services fees, waivers, reimbursements, recoupments and other expenses. Matthews Asian Funds do not charge 12b-1 fees. |
4 | The lesser of fiscal year-to-date purchase costs or sales proceeds divided by the average monthly market value of long-term securities. |
800.789.ASIA [2742] www.matthewsfunds.com 35 |
SHARES | VALUE | |||||||
JAPAN: 34.87% |
||||||||
The Sumitomo Trust and
Banking Co., Ltd. |
583,000 | $ | 3,548,147 | |||||
Secom Co., Ltd. |
77,500 | 3,333,108 | ||||||
T&D Holdings, Inc. |
69,480 | 3,270,089 | ||||||
Ito En, Ltd. |
63,700 | 3,267,992 | ||||||
Mizuho Financial Group, Inc. |
713 | 3,227,175 | ||||||
Sharp Corp. |
192,000 | 3,001,785 | ||||||
Yamada Denki Co., Ltd. |
50,600 | 2,910,720 | ||||||
Canon, Inc. ADR |
52,300 | 2,752,549 | ||||||
Seven-Eleven Japan Co., Ltd. |
96,000 | 2,665,945 | ||||||
Matsushita Electric Industrial
Co., Ltd. |
173,000 | 2,625,183 | ||||||
H.I.S. Co., Ltd. |
113,400 | 2,448,769 | ||||||
Rakuten, Inc. |
2,891 | 2,317,283 | ||||||
Nintendo Co., Ltd. |
22,100 | 2,311,424 | ||||||
Jupiter Telecommunications
Co., Ltd. ** |
2,612 | 2,206,694 | ||||||
NIWS Co., Ltd. |
1,612 | 2,122,009 | ||||||
Fuji Television Network, Inc. |
1,010 | 1,957,894 | ||||||
Makita Corp. |
97,000 | 1,906,591 | ||||||
Shimano, Inc. |
66,600 | 1,891,534 | ||||||
Monex Beans Holdings, Inc. |
1,754 | 1,818,682 | ||||||
Toppan Forms Co., Ltd. |
162,000 | 1,818,502 | ||||||
NTT DoCoMo, Inc. |
1,215 | 1,796,592 | ||||||
Gulliver International Co., Ltd. |
12,470 | 1,735,973 | ||||||
Nomura Holdings, Inc. |
139,000 | 1,663,087 | ||||||
Honda Motor Co., Ltd. |
17,000 | 838,428 | ||||||
Honda Motor Co., Ltd. ADR |
31,700 | 780,137 | ||||||
Nippon Telegraph and Telephone
Corp. ADR |
24,400 | 523,868 | ||||||
Total Japan |
58,740,160 | |||||||
CHINA/HONG KONG: 22.01% |
||||||||
Dah Sing Financial Group |
510,800 | $ | 3,418,041 | |||||
Giordano International, Ltd. |
4,924,000 | 3,389,963 | ||||||
China Mobile HK, Ltd. ADR |
181,600 | 3,375,944 | ||||||
Swire Pacific, Ltd. A Shares |
346,000 | 3,061,060 | ||||||
Television Broadcasts, Ltd. |
493,000 | 2,785,060 | ||||||
Lenovo Group, Ltd. |
7,784,000 | 2,303,848 | ||||||
ASM Pacific Technology, Ltd. |
479,500 | 2,246,017 | ||||||
Shangri-La Asia, Ltd. |
1,346,000 | 2,078,497 | ||||||
Lianhua Supermarket Holdings,
Ltd. H Shares |
1,740,000 | 1,981,598 | ||||||
Cosco Pacific, Ltd. |
916,000 | 1,779,900 | ||||||
SINA Corp. ** |
61,200 | 1,707,480 | ||||||
China Travel International
Investment Hong Kong, Ltd. |
5,432,000 | 1,642,672 | ||||||
China Vanke Co., Ltd. B Shares |
3,739,950 | 1,636,318 | ||||||
Sa Sa International
Holdings, Ltd. |
3,222,000 | 1,575,550 | ||||||
PICC Property and Casualty
Co., Ltd. H Shares ** |
5,490,000 | 1,377,622 | ||||||
Denway Motors, Ltd. |
3,538,000 | 1,263,409 | ||||||
Hong Kong and China Gas
Co., Ltd. |
571,000 | 1,160,957 | ||||||
China Mobile HK, Ltd. |
80,500 | 299,894 | ||||||
Total China/Hong Kong |
37,083,830 | |||||||
SOUTH KOREA: 13.11% |
||||||||
AmorePacific Corp. |
12,300 | 3,257,806 | ||||||
Samsung Electronics Co., Ltd. |
6,600 | 3,151,668 | ||||||
S1 Corp. |
65,640 | 2,791,841 | ||||||
SK Telecom Co., Ltd. ADR |
134,700 | 2,747,880 | ||||||
NCsoft Corp. ** |
23,940 | 1,781,904 | ||||||
Kookmin Bank ADR |
35,540 | 1,619,913 | ||||||
Shinhan Financial Group Co., Ltd. |
61,600 | 1,601,779 | ||||||
GS Home Shopping, Inc. |
21,289 | 1,541,369 | ||||||
Nong Shim Co., Ltd. |
5,250 | 1,522,475 | ||||||
Hyundai Motor Co. |
23,730 | 1,318,971 | ||||||
Kookmin Bank |
16,590 | 754,528 | ||||||
Total South Korea |
22,090,134 | |||||||
36 MATTHEWS ASIAN FUNDS |
SHARES | VALUE | |||||||
SINGAPORE: 7.00% |
||||||||
DBS Group Holdings, Ltd. |
421,700 | $ | 3,577,015 | |||||
Venture Corp., Ltd. |
344,600 | 3,270,516 | ||||||
Hyflux, Ltd. |
1,111,875 | 2,796,423 | ||||||
Fraser and Neave, Ltd. |
230,800 | 2,149,396 | ||||||
Total Singapore |
11,793,350 | |||||||
TAIWAN: 4.83% |
||||||||
Hon Hai Precision Industry
Co., Ltd. |
732,549 | 3,804,398 | ||||||
Taiwan Secom ** |
1,751,000 | 2,708,729 | ||||||
Taiwan Semiconductor
Manufacturing Co., Ltd. |
930,848 | 1,619,249 | ||||||
Total Taiwan |
8,132,376 | |||||||
INDIA: 4.38% |
||||||||
Tata Consultancy Services, Ltd. |
73,549 | 2,287,082 | ||||||
Dabur India, Ltd. |
685,364 | 2,076,192 | ||||||
HDFC Bank, Ltd. |
114,104 | 1,664,252 | ||||||
Dr. Reddys Laboratories, Ltd. |
78,117 | 1,353,369 | ||||||
Total India |
7,380,895 | |||||||
AUSTRALIA: 3.59% |
||||||||
AXA Asia Pacific Holdings, Ltd. |
634,153 | 2,114,293 | ||||||
BHP Billiton, Ltd. |
146,272 | 2,020,854 | ||||||
Australia and New Zealand
Banking Group, Ltd. |
115,364 | 1,909,970 | ||||||
Total Australia |
6,045,117 | |||||||
THAILAND: 3.30% |
||||||||
Advanced Info Service Public
Co., Ltd. |
1,322,000 | 3,135,051 | ||||||
Bangkok Bank Public Co., Ltd. |
925,200 | 2,417,946 | ||||||
Total Thailand |
5,552,997 | |||||||
INDONESIA: 2.29% |
||||||||
PT Ramayana Lestari
Sentosa |
22,600,500 | $ | 2,084,063 | |||||
PT Astra International |
1,367,500 | 1,779,431 | ||||||
Total Indonesia |
3,863,494 | |||||||
UNITED KINGDOM: 1.43% |
||||||||
HSBC Holdings PLC ADR |
30,300 | 2,413,395 | ||||||
Total United Kingdom |
2,413,395 | |||||||
TOTAL INVESTMENTS: 96.81% |
163,095,748 | |||||||
(Cost $147,324,360***) |
||||||||
CASH AND OTHER ASSETS,
LESS LIABILITIES: 3.19% |
5,371,180 | |||||||
NET ASSETS: 100.00% |
$ | 168,466,928 | ||||||
* | As a percentage of net assets as of June 30, 2005 | |||||
** | Nonincome producing security | |||||
*** | Cost for Federal tax purposes is $147,388,762 and net unrealized appreciation consists of: | |||||
Gross unrealized appreciation | $ | 20,696,321 | ||||
Gross unrealized depreciation | (4,989,335 | ) | ||||
Net unrealized appreciation | $ | 15,706,986 |
800.789.ASIA [2742] www.matthewsfunds.com 37 |
Operating | ||||||||||||||||
Expenses Paid | ||||||||||||||||
Beginning Account | Ending Account | Expense | During Period | |||||||||||||
Value 1/1/05 | Value 6/30/05 | Ratio1 | 1/1/05 -6/30/052 | |||||||||||||
Matthews Pacific Tiger Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 1,031.50 | 1.32 | % | $ | 6.65 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,018.25 | 1.32 | % | $ | 6.61 | ||||||||
Matthews Asian Growth and Income Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 1,049.20 | 1.29 | % | $ | 6.55 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,018.40 | 1.29 | % | $ | 6.46 | ||||||||
Matthews Korea Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 1,115.20 | 1.37 | % | $ | 7.19 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,018.00 | 1.37 | % | $ | 6.85 | ||||||||
Matthews China Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 1,007.90 | 1.32 | % | $ | 6.57 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,018.25 | 1.32 | % | $ | 6.61 | ||||||||
Matthews Japan Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 955.30 | 1.31 | % | $ | 6.35 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,018.30 | 1.31 | % | $ | 6.56 | ||||||||
Matthews Asian Technology Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 1,003.70 | 1.48 | % | $ | 7.35 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,017.46 | 1.48 | % | $ | 7.40 | ||||||||
Matthews Asia Pacific Fund |
||||||||||||||||
Actual Fund Return |
$ | 1,000.00 | $ | 1,011.10 | 1.35 | % | $ | 6.73 | ||||||||
Hypothetical 5% Return |
$ | 1,000.00 | $ | 1,018.10 | 1.35 | % | $ | 6.76 |
1 | Annualized, based on the Portfolios most recent fiscal half-year expenses. | |
2 | Operating expenses are equal to the Funds annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. |
Matthews | Matthews | |||||||
Pacific Tiger | Asian Growth and | |||||||
Fund | Income Fund | |||||||
Assets: |
||||||||
Investments at value (A) (Note 1-A) |
$ | 1,094,723,659 | $ | 1,423,752,950 | ||||
Cash |
20,967,876 | 21,800,609 | ||||||
Foreign currency at value (B) |
2,548,888 | 1,129,529 | ||||||
Dividends and interest receivable |
1,446,355 | 2,842,500 | ||||||
Receivable for securities sold |
2,501,989 | 3,787,571 | ||||||
Receivable for capital shares sold |
5,938,778 | 2,419,481 | ||||||
Prepaid expenses and other assets |
4,837 | 19,785 | ||||||
Total assets |
1,128,132,382 | 1,455,752,425 | ||||||
Liabilities: |
||||||||
Payable for securities purchased |
3,668,212 | 6,599,996 | ||||||
Payable for capital shares redeemed |
461,469 | 862,203 | ||||||
Cash overdraft |
| | ||||||
Administration and accounting fees payable |
30,786 | 39,543 | ||||||
Transfer agent fees payable |
13,474 | 18,950 | ||||||
Custodian fees payable |
130,939 | 97,776 | ||||||
Due to Advisor (Note 2) |
657,163 | 850,224 | ||||||
Administration and shareholder servicing fees payable |
205,132 | 265,445 | ||||||
Accrued expenses payable |
200,472 | 256,966 | ||||||
Total liabilities |
5,367,647 | 8,991,103 | ||||||
Net Assets: |
$ | 1,122,764,735 | $ | 1,446,761,322 | ||||
Shares Outstanding: |
||||||||
(shares of beneficial interest issued and outstanding, respectively,
unlimited number of shares authorized with a $0.001 par value) |
68,452,575 | 88,193,298 | ||||||
Net asset value, offering price and redemption price |
$ | 16.40 | $ | 16.40 | ||||
Net Assets Consist of: |
||||||||
Capital paid-in |
$ | 888,300,506 | $ | 1,118,079,152 | ||||
Accumulated undistributed net investment income (loss) |
8,237,797 | (9,731,377 | ) | |||||
Accumulated net realized gain (loss) on investments |
7,087,337 | 25,742,037 | ||||||
Net unrealized appreciation/depreciation on investments and
foreign currency related transactions |
219,139,095 | 312,671,510 | ||||||
Net Assets: |
$ | 1,122,764,735 | $ | 1,446,761,322 | ||||
(A) Investments at cost |
$ | 875,586,119 | $ | 1,111,061,834 | ||||
(B) Foreign currency at cost |
$ | 2,549,841 | $ | 1,139,760 | ||||
Matthews | Matthews | |||||||||||||||||||
Matthews | Matthews | Matthews | Asian Technology | Asia Pacific | ||||||||||||||||
Korea Fund | China Fund | Japan Fund | Fund | Fund | ||||||||||||||||
$ | 147,169,378 | $ | 380,124,182 | $ | 184,313,094 | $ | 36,211,895 | $ | 163,095,748 | |||||||||||
2,488,197 | 2,994,009 | | 354,216 | 3,142,468 | ||||||||||||||||
| | | 164,480 | 408,317 | ||||||||||||||||
65,543 | 1,738,244 | 1,088,633 | 100,010 | 555,032 | ||||||||||||||||
83,240 | 2,081,077 | 1,203,835 | | | ||||||||||||||||
168,635 | 809,684 | 513,444 | 52,553 | 3,070,432 | ||||||||||||||||
6,297 | 4,064 | 2,774 | 389 | 6,164 | ||||||||||||||||
149,981,290 | 387,751,260 | 187,121,780 | 36,883,543 | 170,278,161 | ||||||||||||||||
| 1,495,493 | 398,307 | 71,366 | 857,273 | ||||||||||||||||
171,841 | 564,191 | 725,994 | 37,775 | 769,181 | ||||||||||||||||
| | 597,398 | | | ||||||||||||||||
5,616 | 12,201 | 6,708 | 2,705 | 6,678 | ||||||||||||||||
1,826 | 4,647 | 2,663 | 485 | 1,314 | ||||||||||||||||
18,155 | 49,589 | 5,317 | 2,779 | 12,925 | ||||||||||||||||
89,053 | 228,480 | 112,583 | 21,881 | 97,268 | ||||||||||||||||
27,798 | 71,325 | 35,147 | 6,831 | 30,362 | ||||||||||||||||
38,454 | 116,508 | 50,446 | 18,250 | 36,232 | ||||||||||||||||
352,743 | 2,542,434 | 1,934,563 | 162,072 | 1,811,233 | ||||||||||||||||
$ | 149,628,547 | $ | 385,208,826 | $ | 185,187,217 | $ | 36,721,471 | $ | 168,466,928 | |||||||||||
32,856,285 | 27,289,155 | 12,028,200 | 6,710,742 | 13,240,723 | ||||||||||||||||
$ | 4.55 | $ | 14.12 | $ | 15.40 | $ | 5.47 | $ | 12.72 | |||||||||||
$ | 83,510,621 | $ | 353,742,022 | $ | 176,787,685 | $ | 46,751,799 | $ | 152,645,859 | |||||||||||
972,849 | 4,427,383 | (583,495 | ) | 73,673 | 816,818 | |||||||||||||||
4,558,359 | (3,635,812 | ) | (5,807,485 | ) | (15,420,512 | ) | (752,448 | ) | ||||||||||||
60,586,718 | 30,675,233 | 14,790,512 | 5,316,511 | 15,756,699 | ||||||||||||||||
$ | 149,628,547 | $ | 385,208,826 | $ | 185,187,217 | $ | 36,721,471 | $ | 168,466,928 | |||||||||||
$ | 86,581,594 | $ | 349,453,168 | $ | 169,487,403 | $ | 30,894,338 | $ | 147,324,360 | |||||||||||
$ | 0 | $ | 0 | $ | 0 | $ | 164,033 | $ | 412,106 | |||||||||||
Matthews | Matthews | |||||||
Pacific Tiger | Asian Growth and | |||||||
Fund | Income Fund | |||||||
Investment Income: |
||||||||
Dividends |
$ | 15,834,638 | $ | 24,211,197 | ||||
Interest |
65,748 | 3,843,782 | ||||||
Foreign withholding tax |
(1,105,410 | ) | (1,514,923 | ) | ||||
Total investment income |
14,794,976 | 26,540,056 | ||||||
Expenses: |
||||||||
Investment advisory fees (Note 2) |
3,575,892 | 4,834,619 | ||||||
Transfer agent fees |
739,903 | 1,000,079 | ||||||
Administration and accounting fees |
189,172 | 254,840 | ||||||
Professional fees |
32,627 | 41,458 | ||||||
Custodian fees |
333,053 | 287,693 | ||||||
Trustees fees |
12,609 | 17,042 | ||||||
Administration and shareholder servicing fees (Note 2) |
1,423,722 | 1,925,017 | ||||||
Insurance fees |
10,216 | 16,189 | ||||||
Printing fees |
101,852 | 117,266 | ||||||
Registration fees |
46,967 | 30,748 | ||||||
Other expenses |
7,749 | 10,648 | ||||||
Total expenses |
6,473,762 | 8,535,599 | ||||||
Advisory fees waived and administration and shareholder
servicing fees waived (Note 2) |
(12,190 | ) | (16,100 | ) | ||||
Net expenses |
6,461,572 | 8,519,499 | ||||||
Net Investment Income |
8,333,404 | 18,020,557 | ||||||
Realized and Unrealized Gain (Loss) on Investments and Foreign
Currency Related Transactions: |
||||||||
Net realized gain (loss) on investments |
7,312,651 | 23,376,690 | ||||||
Net realized gain (loss) on foreign currency related transactions |
(197,066 | ) | (84,194 | ) | ||||
Net change in unrealized appreciation/depreciation on investments
and foreign currency related transactions |
15,218,460 | 24,792,197 | ||||||
Net realized and unrealized gain (loss) on investments
and foreign currency related transactions |
22,334,045 | 48,084,693 | ||||||
Net Increase (Decrease) in Net Assets from Operations |
$ | 30,667,449 | $ | 66,105,250 | ||||
Matthews | Matthews | |||||||||||||||||||
Matthews | Matthews | Matthews | Asian Technology | Asia Pacific | ||||||||||||||||
Korea Fund | China Fund | Japan Fund | Fund | Fund | ||||||||||||||||
$ | 2,412,948 | $ | 6,915,913 | $ | 1,684,319 | $ | 380,335 | $ | 1,864,741 | |||||||||||
6,811 | 15,417 | 1,538 | 98 | 9,980 | ||||||||||||||||
(395,477 | ) | | (117,902 | ) | (32,935 | ) | (100,029 | ) | ||||||||||||
2,024,282 | 6,931,330 | 1,567,955 | 347,498 | 1,774,692 | ||||||||||||||||
519,531 | 1,382,696 | 727,274 | 134,955 | 512,224 | ||||||||||||||||
108,045 | 286,561 | 150,822 | 27,853 | 105,840 | ||||||||||||||||
33,093 | 78,844 | 43,453 | 13,488 | 36,316 | ||||||||||||||||
11,537 | 17,528 | 12,975 | 8,874 | 11,460 | ||||||||||||||||
58,608 | 71,771 | 23,938 | 15,696 | 42,753 | ||||||||||||||||
1,827 | 4,852 | 2,538 | 473 | 1,808 | ||||||||||||||||
207,160 | 550,958 | 289,915 | 53,727 | 203,838 | ||||||||||||||||
1,710 | 5,408 | 2,733 | 516 | 1,318 | ||||||||||||||||
18,460 | 71,725 | 23,990 | 7,995 | 15,811 | ||||||||||||||||
12,345 | 35,050 | 21,189 | 10,375 | 17,806 | ||||||||||||||||
1,148 | 3,076 | 1,629 | 305 | 1,093 | ||||||||||||||||
973,464 | 2,508,469 | 1,300,456 | 274,257 | 950,267 | ||||||||||||||||
(1,726 | ) | (4,522 | ) | (2,342 | ) | (432 | ) | (1,778 | ) | |||||||||||
971,738 | 2,503,947 | 1,298,114 | 273,825 | 948,489 | ||||||||||||||||
1,052,544 | 4,427,383 | 269,841 | 73,673 | 826,203 | ||||||||||||||||
1,532,483 | (1,118,384 | ) | (2,138,500 | ) | (279,872 | ) | (714,541 | ) | ||||||||||||
11,656 | 5,484 | (10,941 | ) | 313 | (22,027 | ) | ||||||||||||||
12,413,410 | (654,548 | ) | (7,540,549 | ) | 282,995 | 1,622,707 | ||||||||||||||
13,957,549 | (1,767,448 | ) | (9,689,990 | ) | 3,436 | 886,139 | ||||||||||||||
$ | 15,010,093 | $ | 2,659,935 | ($ | 9,420,149 | ) | $ | 77,109 | $ | 1,712,342 | ||||||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Year Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 | ||||||||||
Operations: |
||||||||||||
Net investment income (loss) |
$ | 8,333,404 | ($ | 373,919 | ) | $ | 4,887,817 | |||||
Net realized gain on investments and foreign currency
related transactions |
7,115,585 | 12,295,327 | 9,880,061 | |||||||||
Net change in unrealized appreciation on
investments and foreign currency related transactions |
15,218,460 | 131,675,214 | 28,678,000 | |||||||||
Net increase in net assets from operations |
30,667,449 | 143,596,622 | 43,445,878 | |||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
| (4,820,318 | ) | (1,397,658 | ) | |||||||
Realized gains on investments |
| (10,645,798 | ) | | ||||||||
Net decrease in net assets resulting from distributions |
| (15,466,116 | ) | (1,397,658 | ) | |||||||
Capital Share Transactions (net) (Note 1-K): |
236,944,573 | 139,889,530 | 315,617,520 | |||||||||
Total increase in net assets |
267,612,022 | 268,020,036 | 357,665,740 | |||||||||
Net Assets: |
||||||||||||
Beginning of period |
855,152,713 | 587,132,677 | 229,466,937 | |||||||||
End of period [including undistributed net investment income (loss)
of $8,237,797, ($95,607), and $4,646,983, respectively] |
$ | 1,122,764,735 | $ | 855,152,713 | $ | 587,132,677 | ||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Year Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 | ||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 18,020,557 | $ | 8,118,252 | $ | 20,689,958 | ||||||
Net realized gain on investments and foreign currency
related transactions |
23,292,496 | 9,703,319 | 36,373,758 | |||||||||
Net change in unrealized appreciation on
investments and foreign currency related transactions |
24,792,197 | 121,813,965 | 112,274,452 | |||||||||
Net increase in net assets from operations |
66,105,250 | 139,635,536 | 169,338,168 | |||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
(17,444,312 | ) | (27,982,588 | ) | (16,238,863 | ) | ||||||
Realized gains on investments |
| (28,099,442 | ) | (12,255,109 | ) | |||||||
Net decrease in net assets resulting from distributions |
(17,444,312 | ) | (56,082,030 | ) | (28,493,972 | ) | ||||||
Capital Share Transactions (net) (Note 1-K): |
161,609,096 | 145,751,266 | 333,039,912 | |||||||||
Total increase in net assets |
210,270,034 | 229,304,772 | 473,884,108 | |||||||||
Net Assets: |
||||||||||||
Beginning of period |
1,236,491,288 | 1,007,186,516 | 533,302,408 | |||||||||
End of period [including undistributed net investment income (loss)
of ($9,731,376), ($10,307,622), and $9,691,236, respectively] |
$ | 1,446,761,322 | $ | 1,236,491,288 | $ | 1,007,186,516 | ||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Year Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 | ||||||||||
Operations: |
||||||||||||
Net investment income (loss) |
$ | 1,052,544 | ($ | 274,933 | ) | $ | 584,463 | |||||
Net realized gain on investments and foreign currency
related transactions |
1,544,139 | 4,616,367 | 40,126,849 | |||||||||
Net change in unrealized appreciation/depreciation on
investments and foreign currency related transactions |
12,413,410 | 17,858,180 | (20,703,622 | ) | ||||||||
Net increase in net assets from operations |
15,010,093 | 22,199,614 | 20,007,690 | |||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
| (246,627 | ) | (111,729 | ) | |||||||
Realized gains on investments |
| (17,328,002 | ) | (41,348,079 | ) | |||||||
Net decrease in net assets resulting from distributions |
| (17,574,629 | ) | (41,459,808 | ) | |||||||
Capital Share Transactions (net) (Note 1-K): |
6,824,003 | 12,970,291 | (85,615,445 | ) | ||||||||
Total increase (decrease) in net assets |
21,834,096 | 17,595,276 | (107,067,563 | ) | ||||||||
Net Assets: |
||||||||||||
Beginning of period |
127,794,451 | 110,199,175 | 217,266,738 | |||||||||
End of period [including undistributed net investment income (loss)
of $972,849, ($79,695), and $140,937, respectively] |
$ | 149,628,547 | $ | 127,794,451 | $ | 110,199,175 | ||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Year Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 | ||||||||||
Operations: |
||||||||||||
Net investment income |
$ | 4,427,383 | $ | 1,063,383 | $ | 3,307,021 | ||||||
Net realized gain (loss) on investments and foreign currency
related transactions |
(1,112,900 | ) | (1,737,281 | ) | 18,920,023 | |||||||
Net change in unrealized appreciation/depreciation on
investments and foreign currency related transactions |
(654,548 | ) | 37,381,655 | (22,011,668 | ) | |||||||
Net increase in net assets from operations |
2,659,935 | 36,707,757 | 215,376 | |||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
| (3,755,290 | ) | (1,173,461 | ) | |||||||
Realized gains on investments |
| (13,885,616 | ) | | ||||||||
Net decrease in net assets resulting from distributions |
| (17,640,906 | ) | (1,173,461 | ) | |||||||
Capital Share Transactions (net) (Note 1-K): |
2,427,421 | 20,803,219 | 229,259,390 | |||||||||
Total increase in net assets |
5,087,356 | 39,870,070 | 228,301,305 | |||||||||
Net Assets: |
||||||||||||
Beginning of period |
380,121,470 | 340,251,400 | 111,950,095 | |||||||||
End of period [including undistributed net investment income
of $4,427,383, $0, and $2,696,162, respectively] |
$ | 385,208,826 | $ | 380,121,470 | $ | 340,251,400 | ||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Year Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 | ||||||||||
Operations: |
||||||||||||
Net investment income (loss) |
$ | 269,841 | ($ | 198,170 | ) | ($ | 719,327 | ) | ||||
Net realized gain (loss) on investments and foreign currency
related transactions |
(2,149,441 | ) | 3,464,565 | 1,695,159 | ||||||||
Net change in unrealized appreciation/depreciation on
investments and foreign currency related transactions |
(7,540,549 | ) | 13,716,288 | 5,815,943 | ||||||||
Net increase (decrease) in net assets from operations |
(9,420,149 | ) | 16,982,683 | 6,791,775 | ||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
| | | |||||||||
Realized gains on investments |
| | | |||||||||
Net decrease in net assets resulting from distributions |
| | | |||||||||
Capital Share Transactions (net) (Note 1-K): |
(5,874,519 | ) | (11,756,303 | ) | 164,810,307 | |||||||
Total increase (decrease) in net assets |
(15,294,668 | ) | 5,226,380 | 171,602,082 | ||||||||
Net Assets: |
||||||||||||
Beginning of period |
200,481,885 | 195,255,505 | 23,653,423 | |||||||||
End of period [including undistributed net investment loss
of ($583,495), ($853,336), and ($689,614), respectively] |
$ | 185,187,217 | $ | 200,481,885 | $ | 195,255,505 | ||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Year Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 | ||||||||||
Operations: |
||||||||||||
Net investment income (loss) |
$ | 73,673 | ($ | 101,441 | ) | ($ | 104,586 | ) | ||||
Net realized gain (loss) on investments and foreign currency
related transactions |
(279,559 | ) | 187,863 | 3,486,931 | ||||||||
Net change in unrealized appreciation/depreciation on
investments and foreign currency related transactions |
282,995 | 4,295,150 | (2,095,574 | ) | ||||||||
Net increase in net assets from operations |
77,109 | 4,381,572 | 1,286,771 | |||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
| | (18,196 | ) | ||||||||
Realized gains on investments |
| | | |||||||||
Net decrease in net assets resulting from distributions |
| | (18,196 | ) | ||||||||
Capital Share Transactions (net) (Note 1-K): |
(2,221,061 | ) | 187,191 | 14,259,517 | ||||||||
Total increase (decrease) in net assets |
(2,143,952 | ) | 4,568,763 | 15,528,092 | ||||||||
Net Assets: |
||||||||||||
Beginning of period |
38,865,423 | 34,296,660 | 18,768,568 | |||||||||
End of period [including undistributed net investment income (loss)
of $73,673, $0, and ($22,563), respectively] |
$ | 36,721,471 | $ | 38,865,423 | $ | 34,296,660 | ||||||
Six-Month | ||||||||||||
Period Ended | Four-Month | |||||||||||
June 30, 2005 | Period Ended | Period Ended | ||||||||||
(unaudited) | December 31, 2004 | August 31, 2004 1 | ||||||||||
Operations: |
||||||||||||
Net investment income (loss) |
$ | 826,203 | ($ | 90,081 | ) | $ | 154,814 | |||||
Net realized gain (loss) on investments and foreign currency
related transactions |
(736,568 | ) | 499,140 | (264,757 | ) | |||||||
Net change in unrealized appreciation/depreciation on
investments and foreign currency related transactions |
1,622,707 | 15,010,643 | (876,651 | ) | ||||||||
Net increase (decrease) in net assets from operations |
1,712,342 | 15,419,702 | (986,594 | ) | ||||||||
Dividends and Distributions to Shareholders from: |
||||||||||||
Net investment income |
| (190,985 | ) | | ||||||||
Realized gains on investments |
| (176,807 | ) | | ||||||||
Net decrease in net assets resulting from distributions |
| (367,792 | ) | | ||||||||
Capital Share Transactions (net) (Note 1-K): |
54,712,054 | 20,768,393 | 77,208,823 | |||||||||
Total increase in net assets |
56,424,396 | 35,820,303 | 76,222,229 | |||||||||
Net Assets: |
||||||||||||
Beginning of period |
112,042,532 | 76,222,229 | | |||||||||
End of period [including undistributed net investment income (loss)
of $816,818, ($9,385) and $176,402, respectively] |
$ | 168,466,928 | $ | 112,042,532 | $ | 76,222,229 | ||||||
1 | The Matthews Asia Pacific Fund commenced operations on October 31, 2003. |
Six-Month | ||||||||||||||||||||||||||||||
Period Ended | Four-Month | Fiscal Years Ended August 31, | ||||||||||||||||||||||||||||
6/30/051 | Period Ended | |||||||||||||||||||||||||||||
(unaudited) | 12/31/041 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||
Net Asset Value, beginning of period |
$ | 15.90 | $ | 13.22 | $ | 11.20 | $ | 8.54 | $ | 7.91 | $ | 12.35 | $ | 10.41 | ||||||||||||||||
INCOME (LOSS) FROM
INVESTMENT OPERATIONS |
||||||||||||||||||||||||||||||
Net investment income (loss) |
0.12 | (0.01 | ) | 0.09 | 0.07 | (0.01 | ) | 0.02 | 0.18 | |||||||||||||||||||||
Net realized gain (loss) and
unrealized
appreciation (depreciation) on
investments and foreign currency |
0.37 | 3.00 | 1.95 | 2.58 | 0.66 | (3.37 | ) | 2.01 | ||||||||||||||||||||||
Total from investment operations |
0.49 | 2.99 | 2.04 | 2.65 | 0.65 | (3.35 | ) | 2.19 | ||||||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||||||||
Net investment income |
| (0.10 | ) | (0.04 | ) | | (0.01 | ) | (0.31 | ) | (0.27 | ) | ||||||||||||||||||
Net realized gains on investments |
| (0.21 | ) | | | (0.03 | ) | (0.84 | ) | | ||||||||||||||||||||
Total distributions |
| (0.31 | ) | (0.04 | ) | | (0.04 | ) | (1.15 | ) | (0.27 | ) | ||||||||||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
0.01 | | 0.02 | 0.01 | 0.02 | 0.06 | 0.02 | |||||||||||||||||||||||
Net Asset Value, end of period |
$ | 16.40 | $ | 15.90 | $ | 13.22 | $ | 11.20 | $ | 8.54 | $ | 7.91 | $ | 12.35 | ||||||||||||||||
TOTAL RETURN |
3.15% | 3 | 22.69% | 3 | 18.45 | % | 31.15 | % | 8.44 | % | (27.46 | %) | 21.28 | % | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
Net assets, end of period (in 000s) |
$ | 1,122,765 | $ | 855,153 | $ | 587,133 | $ | 229,467 | $ | 114,798 | $ | 76,503 | $ | 111,502 | ||||||||||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.32% | 2 | 1.39% | 2 | 1.50 | % | 1.75 | % | 1.79 | % | 1.90 | % | 1.88 | % | ||||||||||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.32% | 2 | 1.36% | 2 | 1.48 | % | 1.75 | % | 1.87 | % | 1.90 | % | 1.81 | % | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
1.70% | 2 | (0.19%) | 2 | 0.93 | % | 1.04 | % | (0.17 | %) | 0.67 | % | 1.49 | % | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
1.70% | 2 | (0.16%) | 2 | 0.95 | % | 1.04 | % | (0.09 | %) | 0.67 | % | 1.56 | % | ||||||||||||||||
Portfolio turnover |
2.15% | 3 | 3.82% | 3 | 15.16 | % | 28.24 | % | 57.00 | % | 63.59 | % | 52.11 | % | ||||||||||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | Annualized. | |
3 | Not annualized. |
Six-Month | ||||||||||||||||||||||||||||||
Period Ended | Four-Month | Fiscal Years Ended August 31, | ||||||||||||||||||||||||||||
6/30/051 | Period Ended | |||||||||||||||||||||||||||||
(unaudited) | 12/31/041 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||
Net Asset Value, beginning of period |
$ | 15.82 | $ | 14.65 | $ | 12.21 | $ | 10.71 | $ | 9.08 | $ | 10.50 | $ | 9.37 | ||||||||||||||||
INCOME FROM
INVESTMENT OPERATIONS |
||||||||||||||||||||||||||||||
Net investment income |
0.22 | 0.11 | 0.32 | 0.23 | 0.18 | 0.54 | 0.61 | |||||||||||||||||||||||
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments and foreign currency |
0.56 | 1.83 | 2.56 | 1.61 | 1.70 | (0.49 | ) | 1.09 | ||||||||||||||||||||||
Total from investment operations |
0.78 | 1.94 | 2.88 | 1.84 | 1.88 | 0.05 | 1.70 | |||||||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||||||||
Net investment income |
(0.20 | ) | (0.38 | ) | (0.25 | ) | (0.20 | ) | (0.27 | ) | (0.60 | ) | (0.59 | ) | ||||||||||||||||
Net realized gains on investments |
| (0.39 | ) | (0.20 | ) | (0.15 | ) | | (0.88 | ) | | |||||||||||||||||||
Total distributions |
(0.20 | ) | (0.77 | ) | (0.45 | ) | (0.35 | ) | (0.27 | ) | (1.48 | ) | (0.59 | ) | ||||||||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
| | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 | |||||||||||||||||||||||
Net Asset Value, end of period |
$ | 16.40 | $ | 15.82 | $ | 14.65 | $ | 12.21 | $ | 10.71 | $ | 9.08 | $ | 10.50 | ||||||||||||||||
TOTAL RETURN |
4.92% | 3 | 13.32% | 3 | 23.99 | % | 17.81 | % | 21.11 | % | 1.15 | % | 18.68 | % | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
Net assets, end of period (in 000s) |
$ | 1,446,761 | $ | 1,236,491 | $ | 1,007,187 | $ | 533,302 | $ | 152,681 | $ | 24,447 | $ | 11,469 | ||||||||||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.29% | 2 | 1.35% | 2 | 1.45 | % | 1.69 | % | 1.77 | % | 1.90 | % | 1.97 | % | ||||||||||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.29% | 2 | 1.31% | 2 | 1.44 | % | 1.69 | % | 1.79 | % | 1.90 | % | 1.90 | % | ||||||||||||||||
Ratio of net investment income to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
2.72% | 2 | 2.15% | 2 | 2.27 | % | 2.69 | % | 2.13 | % | 7.71 | % | 6.17 | % | ||||||||||||||||
Ratio of net investment income to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
2.72% | 2 | 2.19% | 2 | 2.28 | % | 2.69 | % | 2.11 | % | 7.71 | % | 6.24 | % | ||||||||||||||||
Portfolio turnover |
4.85% | 3 | 7.32% | 3 | 17.46 | % | 13.33 | % | 32.37 | % | 33.94 | % | 62.23 | % | ||||||||||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | Annualized. | |
3 | Not annualized. |
Six-Month | ||||||||||||||||||||||||||||||
Period Ended | Four-Month | Fiscal Years Ended August 31, | ||||||||||||||||||||||||||||
6/30/051 | Period Ended | |||||||||||||||||||||||||||||
(unaudited) | 12/31/041 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||
Net Asset Value, beginning of period |
$ | 4.08 | $ | 3.94 | $ | 4.37 | $ | 4.42 | $ | 2.68 | $ | 5.19 | $ | 7.49 | ||||||||||||||||
INCOME (LOSS) FROM
INVESTMENT OPERATIONS |
||||||||||||||||||||||||||||||
Net investment income (loss) |
0.03 | | 0.04 | 0.01 | (0.02 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments and foreign currency |
0.43 | 0.78 | 0.34 | 0.32 | 1.81 | (0.90 | ) | (1.45 | ) | |||||||||||||||||||||
Total from investment operations |
0.46 | 0.78 | 0.38 | 0.33 | 1.79 | (0.91 | ) | (1.46 | ) | |||||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||||||||
Net investment income |
| (0.01 | ) | | | (0.01 | ) | | | |||||||||||||||||||||
Net realized gains on investments |
| (0.63 | ) | (0.82 | ) | (0.39 | ) | (0.07 | ) | (1.63 | ) | (0.88 | ) | |||||||||||||||||
Total distributions |
| (0.64 | ) | (0.82 | ) | (0.39 | ) | (0.08 | ) | (1.63 | ) | (0.88 | ) | |||||||||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
0.01 | | 0.01 | 0.01 | 0.03 | 0.03 | 0.04 | |||||||||||||||||||||||
Net Asset Value, end of period |
$ | 4.55 | $ | 4.08 | $ | 3.94 | $ | 4.37 | $ | 4.42 | $ | 2.68 | $ | 5.19 | ||||||||||||||||
TOTAL RETURN |
11.52% | 3 | 20.60% | 3 | 9.91 | % | 8.80 | % | 68.49 | % | (13.09 | %) | (22.92 | %) | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
Net assets, end of period (in 000s) |
$ | 149,629 | $ | 127,794 | $ | 110,199 | $ | 217,267 | $ | 253,003 | $ | 117,138 | $ | 115,158 | ||||||||||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.37 | %2 | 1.49 | %2 | 1.51 | % | 1.72 | % | 1.75 | % | 1.78 | % | 1.75 | % | ||||||||||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.37 | %2 | 1.31 | %2 | 1.50 | % | 1.72 | % | 1.75 | % | 1.78 | % | 1.75 | % | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
1.48 | %2 | (0.87 | %)2 | 0.28 | % | 0.17 | % | (0.64 | %) | 0.75 | % | 0.42 | % | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
1.48 | %2 | (0.69 | %)2 | 0.29 | % | 0.17 | % | (0.64 | %) | 0.75 | % | 0.42 | % | ||||||||||||||||
Portfolio turnover |
2.86 | %3 | 6.53 | %3 | 18.40 | % | 29.90 | % | 46.52 | % | 81.96 | % | 47.80 | % | ||||||||||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | Annualized. | |
3 | Not annualized. |
Six-Month | ||||||||||||||||||||||||||||||
Period Ended | Four-Month | Fiscal Years Ended August 31, | ||||||||||||||||||||||||||||
6/30/051 | Period Ended | |||||||||||||||||||||||||||||
(unaudited) | 12/31/041 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||
Net Asset Value, beginning of period |
$ | 14.01 | $ | 13.26 | $ | 11.54 | $ | 8.96 | $ | 9.21 | $ | 9.93 | $ | 8.48 | ||||||||||||||||
INCOME FROM
INVESTMENT OPERATIONS |
||||||||||||||||||||||||||||||
Net investment income |
0.16 | 0.03 | 0.08 | 0.11 | 0.05 | 0.24 | 0.09 | |||||||||||||||||||||||
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments and foreign currency |
(0.06 | ) | 1.38 | 1.67 | 2.59 | (0.20 | ) | (0.61 | ) | 1.44 | ||||||||||||||||||||
Total from investment operations |
0.10 | 1.41 | 1.75 | 2.70 | (0.15 | ) | (0.37 | ) | 1.53 | |||||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||||||||
Net investment income |
| (0.14 | ) | (0.07 | ) | (0.14 | ) | (0.15 | ) | (0.15 | ) | (0.11 | ) | |||||||||||||||||
Net realized gains on investments |
| (0.53 | ) | | | | (0.28 | ) | | |||||||||||||||||||||
Total distributions |
| (0.67 | ) | (0.07 | ) | (0.14 | ) | (0.15 | ) | (0.43 | ) | (0.11 | ) | |||||||||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
0.01 | 0.01 | 0.04 | 0.02 | 0.05 | 0.08 | 0.03 | |||||||||||||||||||||||
Net Asset Value, end of period |
$ | 14.12 | $ | 14.01 | $ | 13.26 | $ | 11.54 | $ | 8.96 | $ | 9.21 | $ | 9.93 | ||||||||||||||||
TOTAL RETURN |
0.79% | 3 | 10.61% | 3 | 15.48 | % | 30.88 | % | (1.16 | %) | (2.23 | %) | 18.54 | % | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
Net assets, end of period (in 000s) |
$ | 385,209 | $ | 380,121 | $ | 340,251 | $ | 111,950 | $ | 33,675 | $ | 19,843 | $ | 9,232 | ||||||||||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.32 | %2 | 1.47 | %2 | 1.52 | % | 1.78 | % | 1.97 | % | 2.00 | % | 2.15 | % | ||||||||||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.32 | %2 | 1.43 | %2 | 1.50 | % | 1.79 | % | 2.00 | % | 2.00 | % | 2.00 | % | ||||||||||||||||
Ratio of net investment income to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
2.34 | %2 | 0.81 | %2 | 1.02 | % | 1.94 | % | 0.99 | % | 2.62 | % | 1.54 | % | ||||||||||||||||
Ratio of net investment income to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
2.34 | %2 | 0.85 | %2 | 1.04 | % | 1.93 | % | 0.96 | % | 2.62 | % | 1.69 | % | ||||||||||||||||
Portfolio turnover |
4.61 | %3 | 4.99 | %3 | 28.99 | % | 19.34 | % | 43.84 | % | 61.07 | % | 80.90 | % | ||||||||||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | Annualized. | |
3 | Not annualized. |
Six-Month | ||||||||||||||||||||||||||||||
Period Ended | Four-Month | Fiscal Years Ended August 31, | ||||||||||||||||||||||||||||
6/30/051 | Period Ended | |||||||||||||||||||||||||||||
(unaudited) | 12/31/041 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||
Net Asset Value, beginning of period |
$ | 16.12 | $ | 14.73 | $ | 10.90 | $ | 9.60 | $ | 11.22 | $ | 20.76 | $ | 21.70 | ||||||||||||||||
INCOME (LOSS) FROM
INVESTMENT OPERATIONS |
||||||||||||||||||||||||||||||
Net investment income (loss) |
0.02 | (0.02 | ) | (0.05 | ) | (0.03 | ) | (0.07 | ) | (0.26 | ) | (0.24 | ) | |||||||||||||||||
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments and foreign currency |
(0.75 | ) | 1.40 | 3.82 | 1.30 | (1.39 | ) | (7.99 | ) | (0.29 | ) | |||||||||||||||||||
Total from investment operations |
(0.73 | ) | 1.38 | 3.77 | 1.27 | (1.46 | ) | (8.25 | ) | (0.53 | ) | |||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||||||||
Net investment income |
| | | | (0.27 | ) | (0.37 | ) | | |||||||||||||||||||||
Net realized gains on investments |
| | | | | (1.03 | ) | (0.54 | ) | |||||||||||||||||||||
Total distributions |
| | | | (0.27 | ) | (1.40 | ) | (0.54 | ) | ||||||||||||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
0.01 | 0.01 | 0.06 | 0.03 | 0.11 | 0.11 | 0.13 | |||||||||||||||||||||||
Net Asset Value, end of period |
$ | 15.40 | $ | 16.12 | $ | 14.73 | $ | 10.90 | $ | 9.60 | $ | 11.22 | $ | 20.76 | ||||||||||||||||
TOTAL RETURN |
(4.47 | %)3 | 9.44 | %3 | 35.14 | % | 13.54 | % | (12.20 | %) | (40.92 | %) | (1.75 | %) | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
Net assets, end of period (in 000s) |
$ | 185,187 | $ | 200,482 | $ | 195,256 | $ | 23,653 | $ | 9,399 | $ | 7,758 | $ | 23,869 | ||||||||||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.31 | %2 | 1.40 | %2 | 1.46 | % | 1.92 | % | 1.91 | % | 2.08 | % | 1.88 | % | ||||||||||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.31 | %2 | 1.38 | %2 | 1.45 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
0.27 | %2 | (0.33 | %)2 | (0.72 | %) | (0.97 | %) | (1.25 | %) | (0.90 | %) | (0.36 | %) | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
0.27 | %2 | (0.31 | %)2 | (0.71 | %) | (1.05 | %) | (1.34 | %) | (0.82 | %) | (0.48 | %) | ||||||||||||||||
Portfolio turnover |
6.17 | %3 | 5.30 | %3 | 14.57 | % | 77.30 | % | 113.23 | % | 71.09 | % | 23.00 | % | ||||||||||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | Annualized. | |
3 | Not annualized. |
Six-Month | ||||||||||||||||||||||||||||||
Period Ended | Four-Month | Fiscal Years Ended August 31, | Period | |||||||||||||||||||||||||||
6/30/051 | Period Ended | Ended | ||||||||||||||||||||||||||||
(unaudited) | 12/31/041 | 2004 | 2003 | 2002 | 2001 | 8/31/002 | ||||||||||||||||||||||||
Net Asset Value, beginning of period |
$ | 5.45 | $ | 4.83 | $ | 4.30 | $ | 3.13 | $ | 3.53 | $ | 7.61 | $ | 10.00 | ||||||||||||||||
INCOME (LOSS) FROM
INVESTMENT OPERATIONS |
||||||||||||||||||||||||||||||
Net investment income (loss) |
0.01 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.10 | ) | (0.05 | ) | 0.22 | ||||||||||||||||||
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments and foreign currency |
0.01 | 0.64 | 0.53 | 1.16 | (0.31 | ) | (3.97 | ) | (2.65 | ) | ||||||||||||||||||||
Total from investment operations |
0.02 | 0.62 | 0.51 | 1.15 | (0.41 | ) | (4.02 | ) | (2.43 | ) | ||||||||||||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||||||||||||||||||
Net investment income |
| | | | (0.04 | ) | (0.22 | ) | | |||||||||||||||||||||
Net realized gains on investments |
| | | | | | | |||||||||||||||||||||||
Total distributions |
| | | | (0.04 | ) | (0.22 | ) | | |||||||||||||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
| | 0.02 | 0.02 | 0.05 | 0.16 | 0.04 | |||||||||||||||||||||||
Net Asset Value, end of period |
$ | 5.47 | $ | 5.45 | $ | 4.83 | $ | 4.30 | $ | 3.13 | $ | 3.53 | $ | 7.61 | ||||||||||||||||
TOTAL RETURN |
0.37 | %4 | 12.84 | %4 | 12.40 | % | 37.38 | % | (10.40 | %) | (51.54 | %) | (23.90 | %)4 | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||||||||||||||||||
Net assets, end of period (in 000s) |
$ | 36,721 | $ | 38,865 | $ | 34,297 | $ | 18,769 | $ | 6,879 | $ | 9,607 | $ | 24,570 | ||||||||||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.48 | %3 | 1.64 | %3 | 1.63 | % | 2.10 | % | 2.01 | % | 2.69 | % | 2.66 | %3 | ||||||||||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.48 | %3 | 1.60 | %3 | 1.91 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | %3 | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
0.40 | %3 | (0.89 | %)3 | (0.03 | %) | (0.71 | %) | (1.56 | %) | 1.14 | % | 3.75 | %3 | ||||||||||||||||
Ratio of net investment income (loss) to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
0.40 | %3 | (0.85 | %)3 | (0.31 | %) | (0.61 | %) | (1.55 | %) | 1.83 | % | 4.41 | %3 | ||||||||||||||||
Portfolio turnover |
9.06 | %4 | 7.36 | %4 | 41.25 | % | 72.03 | % | 103.60 | % | 181.24 | % | 50.35 | %4 | ||||||||||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | The Matthews Asian Technology Fund commenced operations on December 27, 1999. | |
3 | Annualized. | |
4 | Not annualized. |
Six-Month | ||||||||||||||
Period Ended | Four-Month | |||||||||||||
6/30/051 | Period Ended | Period Ended | ||||||||||||
(unaudited) | 12/31/041 | 8/31/042 | ||||||||||||
Net Asset Value, beginning of period |
$ | 12.58 | $ | 10.70 | $ | 10.00 | ||||||||
INCOME (LOSS) FROM
INVESTMENT OPERATIONS |
||||||||||||||
Net investment income (loss) |
0.06 | (0.01 | ) | 0.02 | ||||||||||
Net realized gain and unrealized
appreciation on
investments and foreign currency |
0.08 | 1.93 | 0.66 | |||||||||||
Total from investment operations |
0.14 | 1.92 | 0.68 | |||||||||||
LESS DISTRIBUTIONS FROM: |
||||||||||||||
Net investment income |
| (0.02 | ) | | ||||||||||
Net realized gains on investments |
| (0.02 | ) | | ||||||||||
Total distributions |
| (0.04 | ) | | ||||||||||
Paid-in capital from redemption
fees (Note 1-K) |
| | 0.02 | |||||||||||
Net Asset Value, end of period |
$ | 12.72 | $ | 12.58 | $ | 10.70 | ||||||||
TOTAL RETURN |
1.11 | %4 | 18.00 | %4 | 7.00 | %4 | ||||||||
RATIOS/SUPPLEMENTAL DATA |
||||||||||||||
Net assets, end of period (in 000s) |
$ | 168,467 | $ | 112,043 | $ | 76,222 | ||||||||
Ratio of expenses to average net assets
before reimbursement, waiver or
recapture of expenses by Advisor (Note 2) |
1.35 | %3 | 1.52 | %3 | 1.67 | %3 | ||||||||
Ratio of expenses to average net assets
after reimbursement, waiver or recapture
of expenses by Advisor |
1.35 | %3 | 1.51 | %3 | 1.66 | %3 | ||||||||
Ratio of net investment income (loss) to
average net assets before reimbursement,
waiver or recapture of expenses by Advisor |
1.18 | %3 | (0.31 | %)3 | 0.38 | %3 | ||||||||
Ratio of net investment income (loss) to
average net assets after reimbursement,
waiver or recapture of expenses by Advisor |
1.18 | %3 | (0.30 | %)3 | 0.39 | %3 | ||||||||
Portfolio turnover |
5.97 | %4 | 1.28 | %4 | 10.75 | %4 | ||||||||
1 | The Funds fiscal year-end changed from August 31 to December 31, effective December 31, 2004. | |
2 | The Matthews Asia Pacific Fund commenced operations on October 31, 2003. | |
3 | Annualized. | |
4 | Not annualized. |
1. | SIGNIFICANT ACCOUNTING POLICIES | |
Matthews Asian Funds (the Trust) is an open-end investment management company registered under the Investment Company Act of 1940, as amended (the Act). The Trust currently issues seven separate series of shares (each a Fund and collectively, theFunds): Matthews Pacific Tiger Fund, Matthews Asian Growth and Income Fund, Matthews Korea Fund, Matthews China Fund, Matthews Japan Fund, Matthews Asian Technology Fund and Matthews Asia Pacific Fund. Matthews Pacific Tiger Fund, Matthews Korea Fund and Matthews China Fund are authorized to offer two classes of shares: Class I shares and Class A shares. Currently, only Class I shares are offered. Effective December 31, 2004, the Funds fiscal year end changed from August 31 to December 31. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. | ||
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 when no market quotations are available or when market quotations have become unreliable. The Board of Trustees has delegated the responsibility of making fair value determinations to the Pricing Committee of Matthews International Capital Management, LLC (the Advisor), subject to the Funds Pricing Policies. The Funds have retained a third-party pricing service which may be utilized by the Pricing 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 investment 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 exchange or over-the-counter 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 of Trustees. | ||
Foreign securities are valued as of the close of trading on the primary exchange 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 at the close of trading on the New York Stock Exchange, Inc. (NYSE). Occasionally, 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, 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, |
B. | FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The Funds may engage in forward foreign currency exchange contracts for hedging a specific transaction in which the currency is denominated as deemed appropriate by the Advisor. Forward foreign currency exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is recorded by the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. | |
The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the Funds portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Funds could be exposed to risks if the counterparts to the contract are unable to meet the terms of their contracts. | ||
C. | RISKS ASSOCIATED WITH FOREIGN SECURITIES: Investments by the Funds in the securities of foreign issuers may involve investment risks different from those of U.S. issuers including possible political or economic instability of the country of the issuer, the difficulty in predicting international trade patterns, the possibility of currency exchange controls, the possible imposition of foreign withholding tax on the interest income payable on such instruments, the possible establishment of foreign controls, the possible seizure or nationalization of foreign deposits or assets, or the adoption of other foreign government restrictions that might adversely affect the foreign securities held by the Funds. Foreign securities may also be subject to greater fluctuations in price than securities of domestic corporations or the U.S. government. | |
D. | FEDERAL INCOME TAXES: It is the policy of the Funds to comply with all requirements of the Internal Revenue Code of 1986, as amended (the Code) applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. The Funds have met the requirements of the Code applicable to regulated investment companies for the period ended June 30, 2005. Therefore, no federal income tax provision is required. Income and capital gains of the Funds are determined in accordance with both tax regulations and accounting principles generally accepted in the United States. Such treatment may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. These reclassifications, which have no impact on the net asset value of the Funds, are primarily attributable to certain differences in computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States and the use of the tax accounting practice known as equalization. | |
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, 2004 were as follows: |
POST | POST | |||||||
OCTOBER | OCTOBER | |||||||
CAPITAL | CURRENCY | |||||||
LOSSES | LOSSES | |||||||
Matthews Pacific Tiger Fund |
$ | | ($97,522 | ) | ||||
Matthews Asian Growth and Income Fund |
| (68,447 | ) | |||||
Matthews Korea Fund |
| (52,643 | ) | |||||
Matthews China Fund |
(1,905,409 | ) | | |||||
Matthews Asian Technology Fund |
(35,907 | ) | | |||||
Matthews Asia Pacific Fund |
| (9,385 | ) |
LOSSES DEFERRED EXPIRING IN: | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | TOTAL | |||||||||||||||||||||
Matthews China Fund |
$ | | $ | | $ | | $ | | $ | | ($78,979 | ) | ($78,979 | ) | ||||||||||||||
Matthews Japan Fund |
| | | (3,216,093 | ) | | | (3,216,093 | ) | |||||||||||||||||||
Matthews Asian |
||||||||||||||||||||||||||||
Technology Fund |
(22,583 | ) | (5,375,361 | ) | (5,967,059 | ) | (3,461,198 | ) | | | (14,826,201 | ) |
E. | DETERMINATION OF GAINS OR LOSSES ON SALES OF SECURITIES: Gains or losses on the sale of securities are determined on the identified cost basis. | |
F. | ORGANIZATION COSTS: Organization costs are amortized on a straight-line basis over one year from each Funds respective commencement of operations. In the event that any of the initial shares are redeemed during the period of amortization of the Funds organization costs, the redemption proceeds will be reduced by any such unamortized organization costs in the same proportion as the number of shares being redeemed bears to the number of those shares outstanding at the time of redemption. | |
G. | DISTRIBUTION TO SHAREHOLDERS: It is the policy of Matthews Asian Growth and Income Fund to distribute net investment income on a semi-annual basis and capital gains, if any, annually. Matthews Pacific Tiger Fund, Matthews Korea Fund, Matthews China Fund, Matthews Japan Fund, Matthews Asian Technology Fund, and Matthews Asia Pacific Fund distribute net investment income and capital gains, if any, annually. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States. Net investment losses may not be utilized to offset net investment income in future periods for tax purposes. | |
The tax character of distributions paid for the four-month period ended December 31, 2004 were as follows: |
ORDINARY | LONG TERM | TOTAL TAXABLE | ||||||||||
INCOME | CAPITAL GAINS | DISTRIBUTIONS | ||||||||||
Matthews Pacific Tiger Fund |
$ | 12,808,269 | $ | 2,657,847 | $ | 15,466,116 | ||||||
Matthews Asian Growth and Income Fund |
34,804,545 | 21,277,485 | 56,082,030 | |||||||||
Matthews Korea Fund |
246,627 | 17,328,002 | 17,574,629 | |||||||||
Matthews China Fund |
3,755,290 | 13,885,616 | 17,640,906 | |||||||||
Matthews Asia Pacific Fund |
367,792 | | 367,792 |
H. | FUND EXPENSE ALLOCATIONS: The Funds account separately for the assets, liabilities and operations of each Fund. Direct expenses of each Fund are charged to the Fund while general expenses are allocated pro-rata among the Funds based on net assets. | |
I. | USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. | |
J. | OTHER: Securities transactions are accounted for on the date the securities are purchased or sold. Interest income is recorded on the accrual basis. Dividend income and distributions to shareholders are recorded on the ex-dividend date. | |
K. | CAPITAL SHARE TRANSACTIONS: Each Fund is authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. |
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | YEAR ENDED | ||||||||||||||||||||||
JUNE 30, 2005(UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
22,509,483 | $ | 360,527,901 | 10,861,164 | $ | 161,170,011 | 42,210,845 | $ | 553,297,425 | |||||||||||||||
Shares
issued through
reinvestment of dividends |
| | 939,003 | 14,319,805 | 102,761 | 1,284,573 | ||||||||||||||||||
Shares redeemed |
(7,840,484 | ) | (123,927,299 | ) | (2,425,788 | ) | (35,600,286 | ) | (18,399,797 | ) | (238,964,478 | ) | ||||||||||||
Net increase |
14,668,999 | $ | 236,600,602 | 9,374,379 | $ | 139,889,530 | 23,913,809 | $ | 315,617,520 | |||||||||||||||
MATTHEWS ASIAN GROWTH AND INCOME FUND | ||||||||||||||||||||||||
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | YEAR ENDED | ||||||||||||||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
14,053,705 | $ | 226,134,584 | 8,932,041 | $ | 138,085,292 | 40,882,235 | $ | 555,066,165 | |||||||||||||||
Shares
issued through
reinvestment of dividends |
980,431 | 16,177,113 | 3,293,024 | 51,173,594 | 1,880,015 | 25,405,726 | ||||||||||||||||||
Shares redeemed |
(5,016,237 | ) | (80,749,311 | ) | (2,816,789 | ) | (43,507,620 | ) | (17,654,943 | ) | (247,431,979 | ) | ||||||||||||
Net increase |
10,017,899 | $ | 161,562,386 | 9,408,276 | $ | 145,751,266 | 25,107,307 | $ | 333,039,912 | |||||||||||||||
MATTHEWS KOREA FUND | ||||||||||||||||||||||||
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | YEAR ENDED | ||||||||||||||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
8,403,903 | $ | 37,142,993 | 3,469,304 | $ | 14,582,599 | 16,683,706 | $ | 70,846,837 | |||||||||||||||
Shares
issued through
reinvestment of dividends |
| | 4,210,605 | 16,337,147 | 5,710,659 | 22,455,641 | ||||||||||||||||||
Shares redeemed |
(6,876,805 | ) | (30,435,454 | ) | (4,341,030 | ) | (17,949,455 | ) | (44,086,992 | ) | (178,917,923 | ) | ||||||||||||
Net increase (decrease) |
1,527,098 | $ | 6,707,539 | 3,338,879 | $ | 12,970,291 | (21,692,627 | ) | ($85,615,445 | ) | ||||||||||||||
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | YEAR ENDED | ||||||||||||||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
5,595,865 | $ | 78,470,734 | 4,375,395 | $ | 61,741,286 | 32,717,708 | $ | 458,457,166 | |||||||||||||||
Shares
issued through
reinvestment of dividends |
| | 1,142,315 | 16,232,294 | 81,100 | 1,089,212 | ||||||||||||||||||
Shares redeemed |
(5,440,022 | ) | (76,155,082 | ) | (4,047,391 | ) | (57,170,361 | ) | (16,834,124 | ) | (230,286,988 | ) | ||||||||||||
Net increase |
155,843 | $ | 2,315,652 | 1,470,319 | $ | 20,803,219 | 15,964,684 | $ | 229,259,390 | |||||||||||||||
MATTHEWS JAPAN FUND | ||||||||||||||||||||||||
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | YEAR ENDED | ||||||||||||||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
3,332,843 | 52,846,526 | 3,632,824 | $ | 53,123,634 | 17,265,451 | $ | 250,032,677 | ||||||||||||||||
Shares
issued through
reinvestment of dividends |
| | | | | | ||||||||||||||||||
Shares redeemed |
(3,741,353 | ) | (58,790,849 | ) | (4,450,277 | ) | (64,879,937 | ) | (6,181,657 | ) | (85,222,370 | ) | ||||||||||||
Net increase (decrease) |
(408,510 | ) | ($ | 5,944,323 | ) | (817,453 | ) | ($ | 11,756,303 | ) | 11,083,794 | $ | 164,810,307 | |||||||||||
MATTHEWS ASIAN TECHNOLOGY FUND | ||||||||||||||||||||||||
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | YEAR ENDED | ||||||||||||||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
1,228,456 | $ | 6,626,353 | 1,152,449 | $ | 5,878,233 | 9,485,777 | $ | 46,781,267 | |||||||||||||||
Shares
issued through
reinvestment of dividends |
| | | | 3,666 | 16,797 | ||||||||||||||||||
Shares redeemed |
(1,649,794 | ) | (8,855,048 | ) | (1,125,047 | ) | (5,691,042 | ) | (6,753,759 | ) | (32,538,547 | ) | ||||||||||||
Net increase (decrease) |
(421,338 | ) | ($ | 2,228,695 | ) | 27,402 | $ | 187,191 | 2,735,684 | $ | 14,259,517 | |||||||||||||
MATTHEWS ASIA PACIFIC FUND* | ||||||||||||||||||||||||
SIX-MONTH PERIOD ENDED | FOUR-MONTH PERIOD ENDED | PERIOD ENDED | ||||||||||||||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||||||||||||||
SHARES | AMOUNT | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Shares sold |
5,651,832 | $ | 71,171,738 | 2,315,867 | $ | 26,850,048 | 8,608,738 | $ | 92,928,911 | |||||||||||||||
Shares
issued through
reinvestment of dividends |
| | 26,617 | 319,672 | | | ||||||||||||||||||
Shares redeemed |
(1,316,063 | ) | (16,495,936 | ) | (561,366 | ) | (6,401,327 | ) | (1,484,902 | ) | (15,720,088 | ) | ||||||||||||
Net increase |
4,335,769 | $ | 54,675,802 | 1,781,118 | $ | 20,768,393 | 7,123,836 | $ | 77,208,823 | |||||||||||||||
* | Matthews Asia Pacific Fund commenced operations on October 31, 2003. |
SIX-MONTH | FOUR-MONTH | |||||||||||
PERIOD ENDED | PERIOD ENDED | YEAR ENDED | ||||||||||
JUNE 30, 2005 (UNAUDITED) | DECEMBER 31, 2004 | AUGUST 31, 2004 | ||||||||||
Matthews Pacific Tiger Fund |
$ | 343,971 | $ | 46,003 | $ | 764,625 | ||||||
Matthews Asian Growth and Income Fund |
46,710 | 17,286 | 270,983 | |||||||||
Matthews Korea Fund |
116,464 | 36,999 | 179,713 | |||||||||
Matthews China Fund |
111,769 | 151,718 | 919,439 | |||||||||
Matthews Japan Fund |
69,804 | 96,091 | 813,418 | |||||||||
Matthews Asian Technology Fund |
7,634 | 6,384 | 171,537 | |||||||||
Matthews Asia Pacific Fund |
36,252 | 4,628 | 105,818 |
2. | INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES | |
The Advisor, a registered investment advisor under the Investment Advisers Act of 1940, as amended, provides the Funds with investment management services. As compensation for these services, the Advisor charges the Funds an annual investment management fee payable at the end of each calendar month based on each Funds respective average daily net asset value for the month. Beginning September 1, 2004, the fee is charged at a rate of 0.75% of average daily net assets if assets in the Matthews Asian Funds complex (the complex) are up to $2 billion. The rate is reduced to 0.70% of average daily net assets if assets in the complex are between $2 billion and $5 billion, and reduced to 0.65% of average daily net assets if assets in the complex are over $5 billion. Additionally, the Advisor has voluntarily agreed to waive its fees by 0.0166% of average daily net assets if assets in the complex are between $3 billion and $4 billion. The voluntary waiver increases to 0.0333% of average daily net assets if assets in the complex are between $4 billion and $5 billion. | ||
Certain officers and Trustees of the Funds are also officers and directors of the Advisor. All officers serve without direct compensation from the Funds. The Funds paid the Independent Trustees $37,500 in aggregate for regular compensation during the six-month period ended June 30, 2005; no special compensation was paid during this period. |
VOLUNTARY | GROSS | ADVISORY FEES | NET | |||||||||||||
EXPENSE | ADVISORY | WAIVED BY | ADVISORY | |||||||||||||
LIMITATION | FEES | THE ADVISOR | FEES | |||||||||||||
Matthews Pacific Tiger Fund |
1.90 | % | $ | 3,575,892 | ($6,095 | ) | $ | 3,569,797 | ||||||||
Matthews Asian Growth and Income Fund |
1.90 | % | 4,834,619 | (8,050 | ) | 4,826,569 | ||||||||||
Matthews Korea Fund |
2.00 | % | 519,531 | (863 | ) | 518,668 | ||||||||||
Matthews China Fund |
2.00 | % | 1,382,696 | (2,261 | ) | 1,380,435 | ||||||||||
Matthews Japan Fund |
2.00 | % | 727,274 | (1,171 | ) | 726,103 | ||||||||||
Matthews Asian Technology Fund |
2.00 | % | 134,955 | (216 | ) | 134,739 | ||||||||||
Matthews Asia Pacific Fund |
1.90 | % | 512,224 | (889 | ) | 511,335 |
GROSS | ADMINISTRATION | NET | ||||||||||||||
ADMINISTRATION | & SHAREHOLDER | ADMINISTRATION | NET FEES | |||||||||||||
& SHAREHOLDER | SERVICING FEES | & SHAREHOLDER | IN BASIS | |||||||||||||
SERVICING FEES | WAIVED | SERVICING FEES | POINTS | |||||||||||||
Matthews Pacific Tiger Fund |
$ | 1,129,875 | ($6,095 | ) | $ | 1,123,780 | 0.23 | % | ||||||||
Matthews Asian Growth and Income Fund |
1,527,905 | (8,050 | ) | 1,519,855 | 0.23 | % | ||||||||||
Matthews Korea Fund |
164,190 | (863 | ) | 163,327 | 0.23 | % | ||||||||||
Matthews China Fund |
437,044 | (2,261 | ) | 434,783 | 0.23 | % | ||||||||||
Matthews Japan Fund |
229,906 | (1,171 | ) | 228,735 | 0.23 | % | ||||||||||
Matthews Asian Technology Fund |
42,665 | (216 | ) | 42,449 | 0.23 | % | ||||||||||
Matthews Asia Pacific Fund |
161,821 | (889 | ) | 160,932 | 0.23 | % |
ADMINISTRATION & | ||||||||||||
TRANSFER | SHAREHOLDER | |||||||||||
AGENT FEES | SERVICING FEES | TOTAL | ||||||||||
Matthews Pacific Tiger Fund |
$ | 596,598 | $ | 293,847 | $ | 890,445 | ||||||
Matthews Asian Growth and Income Fund |
806,258 | 397,112 | 1,203,370 | |||||||||
Matthews Korea Fund |
87,243 | 42,970 | 130,213 | |||||||||
Matthews China Fund |
231,280 | 113,914 | 345,194 | |||||||||
Matthews Japan Fund |
121,837 | 60,009 | 181,846 | |||||||||
Matthews Asian Technology Fund |
22,459 | 11,062 | 33,521 | |||||||||
Matthews Asia Pacific Fund |
85,307 | 42,017 | 127,324 |
3. | INVESTMENT TRANSACTIONS | |
Investment transactions for the six-month period ended June 30, 2005, excluding short-term investments, were as follows: |
PROCEEDS | ||||||||
PURCHASES | FROM SALES | |||||||
Matthews Pacific Tiger Fund |
$ | 252,693,969 | $ | 20,837,527 | ||||
Matthews Asian Growth and Income Fund |
250,931,114 | 63,522,501 | ||||||
Matthews Korea Fund |
9,890,831 | 4,024,532 | ||||||
Matthews China Fund |
22,280,476 | 17,450,859 | ||||||
Matthews Japan Fund |
12,196,327 | 17,646,768 | ||||||
Matthews Asian Technology Fund |
3,361,311 | 5,569,995 | ||||||
Matthews Asia Pacific Fund |
60,268,569 | 8,245,941 |
MATTHEWS ASIAN FUNDS | JUNE 30, 2005 |
1 As defined under the Investment Company Act of 1940, as amended. |
(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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. |
(a)(1) | Not applicable. | ||
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | ||
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(registrant)
|
Matthews International Funds | |||
By
(Signature and
Title)* /s/
G. Paul Matthews |
||||
G. Paul Matthews, President | ||||
(principal executive officer) | ||||
Date |
September 7, 2005 | |||
By
(Signature and
Title)* /s/
G. Paul Matthews |
||||
G. Paul Matthews, President | ||||
(principal executive officer) | ||||
Date |
September 7, 2005 | |||
By
(Signature and
Title)* /s/
Shai Malka |
||||
Shai Malka, Treasurer | ||||
(principal financial officer) | ||||
Date |
September 7, 2005 | |||
* Print the name and title of each signing officer under his or her signature. |