Matthews Asia - Small Companies Fund
Matthews Asia believes small companies in Asia offer long-term growth opportunities given their innovation and domestic consumption orientation while also being less exposed to regulatory and geo-political risks. The Small Companies Fund invests in equities of small companies located in the Asia ex-Japan region. The fund defines small companies as companies with market capitalisation no higher than $5 bn or the market capitalisation of the largest company included in the Fund’s primary benchmark, the MSCI All Country Asia ex Japan Small Cap Index.
Key Information
Investment Category | Asia ex-Japan Small/Mid-cap Equities |
ISIN | LU0871673728 |
Benchmark Index | MSCI All Country Asia ex Japan Small Cap Index |
Inception Date | 30 April 2013 |
Assets Under Management (AUM) | 188,85 mn USD* |
Management Fee | 1.50% |
*as of 29 February 2024
Strategy
The Asia universe of small companies is vast, deep and diverse. It offers numerous opportunities to bet on different themes, yet research coverage of opportunities is patchy. Therefore, a disciplined investment process and active, in-depth research are key to finding resilient and successful small companies, emphasises Matthews Asia.
The Small Companies Fund directly or indirectly invests at least 65% of its total net assets in equities of small companies located in the Asia ex-Japan region and may invest in other permitted assets worldwide. The fund defines small companies as companies with market capitalisation no higher than $5 bn or the market capitalisation of the largest company included in the Fund’s primary benchmark, the MSCI All Country Asia ex Japan Small Cap Index.
Performance
2023 (Fund / Benchmark) | 10.30% / 22.09% |
2022 (Fund / Benchmark) | -15.26% / -19.93% |
2021 (Fund / Benchmark) | 21.09% / 21.23% |
in %; at year-end, 31 December
Note: Past performance is no guarantee of future performance.
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Portfolio
Der Matthews Asia – Small Companies Fund holds 69 positions.
At country level, the fund is overweight in China/Hong Kong (31.7% / benchmark: 12.2%), Vietnam (3.5% / 0.0%), the Philippines (3.4% / 0.9%), Bangladesh (0.5% / 0.0%) and the USA (0.5% / 0.0%). China/Hong Kong, India (30.2%) and Taiwan (19.6%) account for over 80% of the portfolio.
At sector level, the fund is overweight in the five largest sectors: Information Technology (28.2% / Benchmark: 21.5%), Industrials (22.9% / 17.7%), Consumer Discretionary (13.6% / 11.1%), Financials (13.6% / 9.4%) and Healthcare (12.7% / 9.6%).
The 5 largest holdings are:
- Shriram Finance (India)
- Bandhan Bank (India)
- Legend Biotech (China/Hong Kong)
- M31 Technology (Taiwan)
- Full Truck Alliance (China/Hong Kong)
as of 29 February 2024