Investing in Asia for Dividend Income

by Jesper Madsen, CFA and Charles Rotblut, CFA

Jesper Madsen manages the Matthews Asia Dividend Fund MAPIX and the Matthews China Dividend Fund MCDFX. I spoke with him in late July about dividend investing in Asia.

—Charles Rotblut

Charles Rotblut (CR): In your Asian funds, what guides your allocation decisions?

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Jesper Madsen, CFA CFA, manages the Matthews Asia Dividend Fund (MAPIX) and the Matthews China Dividend Fund (MCDFX).
Charles Rotblut, CFA is a vice president at AAII and editor of the AAII Journal. Follow him on Twitter at


Robert from Illinois posted over 2 years ago:

The dividend payout of MAPIX was $.32+ in 2008, and then went up to $.47 in 2009, but then decreased in 2910 to $.45.4, probably because of currency translations. So this type of Fund effort is still very complex for individuals trying to build a dividend growth portfolio. See "Dividend Growth Investing" for a portfolio selection process that is global, and very low risk.

Rick from New York posted over 2 years ago:

I am considering adding this fund to my portfolio in an IRA. Now I have a concern about the foreign taxes applied to the dividends. Is this fund better for a taxable or non taxable account? Comments would be appreciated.

Charles from Illinois posted over 2 years ago:

Rick - You can only get a refund on foreign taxes if the fund is held in a taxable account. If you hold foreign investments in a tax-deferred account and are charged foreign taxes, you lose the amount. - Charles Rotblut

Rick from New York posted over 2 years ago:

thank you for your comment Charles

Barry from Alabama posted over 2 years ago:

I purchased one of the dividend funds recently after much study . This will be a core long term holding.

Micheal from Georgia posted over 2 years ago:

Our beloved USA is broke.... $15 trillion in Debt and climbing.....Investing outside of the USA is wise at this time and the next few decades.

George from Pennsylvania posted about 1 year ago:

As in the US: a diversified strategy for Asia investments is safer than a non-diversified one.

MatthewsAsia recommends diversifying your Asian investments the same way that you do in the US: some in growth, some in value, some in large cap, some in small...

Dividend and interest paying funds can further diversify your Asian portfolio -- but few investors think of that aspect in the same breath as Asia.

For most people, Asia = Export oriented Growth and nothing more. Jesper Madsen's dividend oriented funds offer a very nice counterbalance. I have about 10% of my total portfolio in his funds.

Dawn Wride from Ohio posted about 1 month ago:

There are companies in the U.S. who are pretty sound paying dividends in the 6% to 12% range. Do you include them in your total portfolio?

Charles Rotblut from Illinois posted about 1 month ago:


Are you referring to AAII Dividend Investing?

The answer is no because we are not finding financially sound companies with both free cash flow and a record of raising their dividends with those levels of yields. We also do hold REITs or MLPs because of their different tax treatment.


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