Fund Evaluator:
Matthews China Innovators (MCSMX)
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Best Performing in Greater China Region Over the Last Year
| 53.4% | Fidelity Advisor China Region Z (FIQFX) |
| 53.2% | Fidelity China Region (FHKCX) |
| 36.9% | Oberweis China Opportunities (OBCHX) |
| 12.4% | Goldman Sachs China Equity Inv (GSAEX) |
| 9.9% | Guinness Atkinson China & Hong Kong (ICHKX) |
Fund Details
Matthews China Innovators Overview
Matthews China Innovators (MCSMX) is an actively managed International Equity Greater China Region fund. Matthews Asia Funds launched the fund in 2011.
The investment seeks long-term capital appreciation. Under normal circumstances, the fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies located in China. China includes its administrative and other districts, such as Hong Kong. A company or other issuer is considered to be "located" in a country or a region, and a security or instrument is deemed to be a Chinese security or instrument, if it has substantial ties to china. The fund is non-diversified.
About Matthews China Innovators (MCSMX)
There are 1 members of the management team with an average tenure of 0.62 years: Tiffany Hsiao (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: MSCI China All Shares NR USD index with a weighting of 100%. Matthews China Innovators has 55 securities in its portfolio. The top 10 holdings constitute 38.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Matthews China Innovators is part of the Equity global asset class and is within the International Equity fund group. Matthews China Innovators has 88.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 4.6%. There is 88.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Matthews China Innovators has 6.7% of the portfolio in cash.
Assets Under Management
The fund has $61 million in total assets, which is below the $82 million average for the Greater China Region category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
MCSMX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Matthews China Innovators expense ratio is high compared to funds in the Greater China Region category. Matthews China Innovators has an expense ratio of 1.40%, which is 10% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Matthews China Innovators has a portfolio turnover rate of 36%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 73% for the Greater China Region category.
Recently, in the month of July 2026, Matthews China Innovators returned -24.1%, which earned it a grade of F, as the Greater China Region category had an average return of -5.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Matthews China Innovators has a trailing yield of 1.83%, which is below the 1.94% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Matthews China Innovators Grades
Year to date, the fund has returned 21.7%, 16.1 percentage points better than the category, which translates into a grade of B. The fund has returned 33.0% over the past year (grade of B), 11.2% over the past three years (grade of B) and -3.4% per year over the past five years (grade of C) and 10.7% per year over the past 10 years (grade of B).
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MCSMX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MCSMX Return (NAV) | -24.1% | -4.9% | 33.0% | 11.2% | -3.4% | 10.7% |
| MCSMX Grade | F | D | B | B | C | B |
| +/- Category | -18.4% | -1.5% | 13.3% | 0.8% | -1.5% | 3.4% |
| Greater China Region Avg | -5.7% | -3.4% | 19.7% | 10.4% | -2.0% | 7.3% |
| MCSMX Tax Cost Ratio | na | na | 0.9% | 0.8% | 1.6% | 1.8% |
MCSMX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MCSMX Return (NAV) | 21.7% | 28.8% | 2.8% | -17.5% | -31.3% | -3.6% | 82.5% | 35.4% | -17.7% | 53.9% | -2.3% |
| MCSMX Grade | B | D | F | C | F | B | A | B | B | B | B |
| +/- Category | 16.1% | -4.5% | -8.5% | -3.4% | -3.5% | 5.7% | 38.0% | 3.3% | -0.4% | 2.7% | -0.0% |
| Greater China Region Avg | 5.6% | 33.3% | 11.3% | -14.1% | -27.7% | -9.3% | 44.5% | 32.1% | -17.3% | 51.2% | -2.3% |
| Risk Measures | |
| Standard Deviation: | 30.3% |
| Total Risk Index: | 2.47 - High |
| Category Risk Index: | 1.37 - High |
| Category Risk Grade: | F (100% Rank) |
| Beta: | 1.10 |
| R-Squared: | 25% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 1.8% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $81 Mil |
| Fund Total Assets: | $ 62 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 37% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 0.6 years | |||
| Average Tenure: 0.6 years | |||
| Managers (Year): Hsiao Tiffany (2025) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 55 |
| % in Top 10 Holdings: | 38.6% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 88.7% |
Portfolio Allocation |
|
| Domestic Stock: | 4.6% |
| Foreign Stock: | 88.7% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 6.7% |
Purchase Information
| Fund Family: | Matthews Asia Funds |
| Phone Number: | 800-789-2742 |
| Website: | www.matthewsasia.com/ |
| Status: | Open |
| Inception Date: | May 31, 2011 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 500 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.00% |
Expenses and Fees | |
| Expense Ratio (%): | 1.40% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.27% |
| Share Class: | Matthews China Innovators |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 50 |
