Fund Evaluator:

Matthews Asia Innovators Investor Overview

Matthews Asia Innovators Investor (MATFX) is an actively managed International Equity Pacific/Asia ex-Japan Stk fund. Matthews Asia Funds launched the fund in 1999.

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 companies located in Asia that Matthews believes are innovators in their products, services, processes, business models, management, use of technology, or approach to creating, expanding or servicing their markets. It is non-diversified.

About Matthews Asia Innovators Investor (MATFX)

There are 1 members of the management team with an average tenure of 0.54 years: Tiffany Hsiao (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: MSCI AC Asia Ex Japan NR USD index with a weighting of 100%. Matthews Asia Innovators Investor has 63 securities in its portfolio. The top 10 holdings constitute 38.3% 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 Asia Innovators Investor is part of the Equity global asset class and is within the International Equity fund group. Matthews Asia Innovators Investor has 97.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 97.1% 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 Asia Innovators Investor has 2.9% of the portfolio in cash.

Assets Under Management

The fund has $280 million in total assets, which is below the $317 million average for the Pacific/Asia ex-Japan Stk 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.

MATFX 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 Asia Innovators Investor expense ratio is high compared to funds in the Pacific/Asia ex-Japan Stk category. Matthews Asia Innovators Investor has an expense ratio of 1.27%, which is 4% 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 Asia Innovators Investor has a portfolio turnover rate of 97%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 79% for the Pacific/Asia ex-Japan Stk category.

Recently, in the month of June 2026, Matthews Asia Innovators Investor returned 1.7%, which earned it a grade of C, as the Pacific/Asia ex-Japan Stk category had an average return of 0.7%. 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 Asia Innovators Investor has a trailing yield of 0.00%, which is below the 0.80% 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 Asia Innovators Investor Grades

Year to date, the fund has returned 67.3%, 38.3 percentage points better than the category, which translates into a grade of A. The fund has returned 93.0% over the past year (grade of A), 36.6% over the past three years (grade of A) and 9.2% per year over the past five years (grade of A) and 16.7% per year over the past 10 years (grade of A).

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