Investing in the Future of AsiaThe views and information discussed herein are as of the date of publication, are subject to change and may not reflect current views. The views expressed

The views and information discussed herein are as of the date of publication, aresubject to change and may not reflect current views. The views expressedrepresent an assessment of market conditions at a specific point in time, areopinions only and should not be relied upon as investment advice regarding aparticular investment or markets in general. Such information does notconstitute a recommendation to buy or sell specific securities or investmentvehicles.

Investment involves risk. Past performance is no guarantee of future results. Thevalue of an investment in the Fund can go down as well as up. The informationcontained herein has been derived from sources believed to be reliable andaccurate at the time of compilation, but no representation or warranty (expressor implied) is made as to the accuracy or completeness of any of thisinformation. Matthews Asia and its affiliates do not accept any liability for losseseither direct or consequential caused by the use of this information.

Investing in international and emerging markets may involve additional risks,such as social and political instability, market illiquidity, exchange-ratefluctuations, a high level of volatility and limited regulation. Fixed incomeinvestments are subject to additional risks, including, but not limited to, interestrate, credit and inflation risks. In addition, single-country and sector strategiesmay be subject to a higher degree of market risk than diversified strategiesbecause of concentration in a specific industry, sector or geographic location.Investing in small companies is more risky and more volatile than investing inlarge companies.

Matthews Asia is the brand for Matthews International Capital Management, LLCand its direct and indirect subsidiaries.

For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.

© 2019 Matthews International Capital Management, LLC PT001b_3Q19

Investing in the Future of Asia

Matthews Asia I Q3 2019

Matthews Pacific Tiger Fund

For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.© 2019 Matthews International Capital Management, LLC 3Q19 2

Asia’s Global Relevance


Asia’s Global Relevance More people, more wealth, more growth

Sources: United Nations, Department of Economic and Social Affairs, Population Division (2017), CIA World Fact Book (2017)

More than 4 billion of the 7.5 billion peopleworldwide live within the circle, but it’s not justIndia and China that make up this population:

Indonesia: 260 million

Pakistan: 205 million

Bangladesh: 158 million

Philippines: 104 million

Vietnam: 96 million

Average age: 27


Asia Continues to Lead Global Growth

COMPOSITION OF GROWTH*2009 – 2019

ASIA: 56%

EXPECTED COMPOSITION OF GROWTH*2018 – 2024

ASIA: 59%

China/Hong Kong28%

India 15%

Japan2%

Rest of Asia 14%

U.S. / Canada

11%

Europe14%

Latin America

6%

Mid East/ Africa 10%

28%

India 12%

Japan3%

Rest of Asia 13%

U.S. / Canada

13%

Europe15%

Latin America

5%

Mid East/ Africa 11%

*Based on GDP on Purchasing Power Parity (PPP) basis. There is no guarantee any estimates or projections will be realizedSource: International Monetary Fund; World Economic Outlook Database, April 2019

China/Hong Kong


Emerging Markets Are Not Created EqualMany Asian countries have achieved “Economic Take Off”

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0.0 0.2 0.4 0.6 0.8 1.0 1.2

Asia

Europe

Latin America

Middle East/Africa

North America

Nominal GDP per capita, PPP, relative to the U.S. (2017)

Nominal GDP per capita, PPP, relative to the U.S. (1980)

Note: Data depicted shows 50 most populous countries in IMF database in 1980 Sources: IMF; Matthews Asia

TAIWAN

SOUTH KOREAJAPAN

MALAYSIA

THAILANDCHINA

INDIA

U.S.


Asia’s Growth Still Has a Long Way To Go…Asia per capita GDP in historical context to the U.S.

Sources: Maddison Historic GDP through 1987, IMF World Economic Database October 2017

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1 1650 1808 1821 1834 1847 1860 1873 1886 1899 1912 1925 1938 1951 1964 1977 1990 2003

U.S. Asia Countries

Taiwan

South Korea

MalaysiaChina

GDP per capita (US$)

Basic NecessitiesEnergyConsumer StaplesUtilities

Specialty BrandsConsumer DiscretionaryMaterialsInfrastructure

Technology and ServicesInformation TechnologyFinancials/InsuranceTravel/Leisure

Japan

Hong Kong

Singapore

Thailand

Mongolia,Indonesia,Sri Lanka

PhilippinesVietnamIndiaBangladeshPakistan, Myanmar

2017


Peeling the EM Onion—Asia Stands OutLong-Term Performance of MSCI Emerging Market Regions as of September 30, 2019

6.7%

4.4%

5.6%

7.2%

-0.5% -0.2%

11.6%

1.9%1.4%

4.4%

-0.5%

1.5%

3 Years 5 Years 10 Years

MSCI Emerging Markets Asia Index MSCI Emerging Markets Latin America Index

MSCI Emerging Markets Europe Index MSCI Emerging Markets EMEA Index

Past performance is no guarantee of future results. Indexes are unmanaged and it is not possibleto invest directly in an index.

Sources: MSCI, FactSet Research Systems, Inc.; data as of September 30, 2019


Asia Leads Innovation in EM

Note: Matthews Asia considers Innovative sectors to include Technology, Industrials and Health Care. Weights represent thecumulative % of health care, technology and industrials sectors. Data as of September 30, 2019. Indexes are unmanaged and it is notpossible to invest directly in an index.

Sources: MSCI, FactSet Research Systems, Inc.

% WEIGHT IN INNOVATIVE SECTORS

27.6%

8.5%

3.2%

MSCI AC Asia ex Japan Index MSCI EM Latin America Index MSCI Emerging Markets EMEA Index


Rising Wages and Productivity Behind Asia’s Rising Share of ConsumptionAn estimated 2.3 billion people will enter the middle class—88% from Asia!

*Data represented are estimates only. Matthews Asia has not independently verified any of the figures and cannot confirm their accuracy. There is no guarantee that any estimates or projections will be realized. Middle class is defined as income range of $11 to $110 per person per day in 2011 PPP terms.Source: Brookings, Global Economy and Development Working Paper, February 2017, “The Unprecedented Expansion of the Global Middle Class.”

SPENDING BY THE GLOBAL MIDDLE CLASS, 2015 – 2030* (PPP, Constant 2011 billion $ and shares)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2020* 2025* 2030*

Middle East & North Africa

Sub-Saharan Africa

Asia Pacific

Central and South America

North America

Europe


Current Economic Cycle


Asia Earnings Per Share and Economic Growth

Note: Universe as defined by FactSet AggregatesSource: FactSet Aggregates, MSCI, Matthews Asia; data as of December 31, 2017

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14 Dec-16

Asia ex Japan EPS Asia ex Japan Nominal GDP

US$; Indexed 12/31/2002=1

Dec-17


When to Invest in Emerging Markets—Four Pillars

STABLE U.S. GROWTHAND INFLATION

STABLE OR RISINGCOMMODITIES

FAIRLY VALUED CURRENCIES

FAIRLY VALUEDCREDIT SPREADS


Things to Consider—Asia Can Outperform Late CyclePerformance measured during the previous FED hiking cycle—6/30/2005 through 12/31/2007

Past performance is no guarantee of future results. Indexes are unmanaged and it is not possibleto invest directly in an index.

Source: Bloomberg

CUMULATIVE PERFORMANCE IN %

-5%

10%

25%

40%

55%

70%

85%

100%

115%

130%

145%

Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07

MSCI Asia ex Japan Index S&P 500 Index


Asia ex Japan (September 2001 – September 2019)

Asian Valuations

ChinaHongKong

India Japan U.S. EuropeAsia ex Japan

Forward P/E 14.7x 9.9x 18.1x 13.6x 17.3x 14.0x 13.1x

Dividend Yield (%) 1.9 3.1 1.5 2.3 2.0 3.4 2.5

Source: FactSet Research Systems, Inc.

Note: Valuations chart data as of September 30, 2019Trailing Dividend yield estimates for 2019 as of September 30, 2019 based on FactSet aggregates as defined by FactSet. The forwardprice per earnings ratio (“Forward P/E”) is calculated by dividing the market price per share by the expected earnings per share for2019. Forward P/E was calculated as of September 30, 2019 and is forward looking. There is no guarantee that Forward P/E or anyestimates or projections will be realized.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

2

4

6

8

10

12

14

16

18

20

Asia ex Japan Forward Price to Earnings Asia ex Japan Price to Book Linear (Asia ex Japan Forward Price to Earnings)

Global Financial CrisisSARS Outbreak

Forward P/E Ratio P/B Ratio


Environment and Outlook

U.S. / China trade relations dominate the headlines—dispute now threatens U.S. economy

Earnings growth looks set to outpace the U.S. over the long term as the U.S. tax-cut effects fade

Asia’s valuations are reasonable on cyclically depressed earnings; we believe they are cheap in a global context

The International Monetary Fund (IMF) projects Asia’s nominal US$ GDP growth to outpace the developed world—Asia’s profits could follow

Asia continues to pursue structural reform even as monetary policy appears to be loosening

Most of Asia is living within its means with stable inflation and high savings—current accounts are improving, unlike other emerging markets

We look for companies that can grow profits and cash flows sustainably and benefit from an evolving middle class culture

As of September 30, 2019

The statements above are based on the beliefs and assumptions of our portfolio management team and on the information currentlyavailable to our team at the time of such statements. Although we believe that the expectations reflected in these statements arereasonable, we can give no assurance that these expectations will prove to be correct.


Implementing Asia in Portfolios


Most Client Portfolios are Under-Allocated to Asia Compared to Current Measures

The MSCI All Country World Index is a free float‐adjusted market capitalization weighted index that is designed to measure the equity marketperformance of developed and emerging markets. The MSCI ACWI consists of 46 country indexes comprising 23 developed and 23 emerging marketcountry indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, HongKong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and theUnited States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India,Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.Sources: MSCI, International Monetary Fund and World Federation of Exchange Members, IMF GDP data as of 4/30/19; Stock Market Value data as of04/30/19; MSCI All Country World Index as of 06/30/2019. Figures in US$

U.S.55%

Canada3%China/HK

5% India1%

Japan7%

Other Asia6%

Europe20%

Latin America

2%

Mid East/ Africa

1%

U.S.41%

Canada3%

China/HK14% India

3%

Japan7%

Other Asia8%

Europe19%

Latin America2%

Mid East/Africa

3%

U.S.24%

Canada2%

China/HK17%

India3%

Japan6%

Other Asia10%

Europe26%

MSCI ALL COUNTRY WORLD INDEX

ASIA: 19%

WORLD STOCK MARKET VALUE

ASIA: 32%

GDP

ASIA: 36%

Mid East/ Africa

6%

Latin America6%


Banker’s Acceptance Bills

Trust Loans

Implementation—Get the Asia Part Right

Note: EM equity refers to the MSCI Emerging Markets Equity Index. All regional weights are shown as of September 30, 2019. It is not possible to invest directly in an index.Sources: FactSet Research Systems, Inc., MSCI

EM EQUITY REGIONAL WEIGHTS

72.5%

12.0%9.2%

6.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Asia Latin America ME/Africa Europe


Banker’s Acceptance Bills

Trust Loans

EM Equity Index—What Are You Buying?

Note: EM equity refers to the MSCI EM Equity Index as of September 30, 2019. Cyclical sectors for this purpose refer tofinancials, materials, energy, real estate and information technology. Less-Cyclical sectors for this purpose includeconsumer staples, health care, consumer discretionary, telecom and utilities.


MSCI EM EQUITY EXPOSURES

Large and Mega Caps72.0%

Mid Caps23.4%

Small Caps4.6%

Cyclicals63.1%

Less-Cyclical36.9%


Implementation—Consumer Staples has Outperformed more Cyclical Sectors

Past performance is no guarantee of future results. Volatility is the standard deviation of returns.Indexes are unmanaged and it is not possible to invest directly in an index.

Note: Universe represented by the MSCI EM Equity Index. Volatility calculation are using average daily returns from the January 31, 2001 to September30, 2019 time period. The sector returns shown are cumulative for the dates listed above.


EM SECTOR PERFORMANCE + VOLATILITY (Jan 2001– September 2019)

369.0%

546.2%577.8%

25.6% 27.0% 17.0%

0%

100%

200%

300%

400%

500%

600%

700%

EM Materials EM Energy EM Consumer Staples

Return Average Volatility


Which are the Next Drivers of EM Growth?Asia per capita GDP in historical context to the U.S.

Sources: Maddison Historic GDP through 1987, IMF World Economic Database October 2017

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1 1650 1808 1821 1834 1847 1860 1873 1886 1899 1912 1925 1938 1951 1964 1977 1990 2003 2016

U.S. Asia Countries

Hong Kong

Singapore

Taiwan

IndiaBangladesh

South Korea

Malaysia

Thailand

ChinaVietnam Philippines

Mongolia,Indonesia,Sri LankaPakistan,

Myanmar

GDP per capita (US$)

Traditional GEMs

Next GEMs

Japan

2017


Implementation—Achieving Better Balance

MSCI EM

INDEX

Growth

Consumer

Value

Cyclical

Matthews Emerging AsiaMatthews Asia Growth

Matthews Asia InnovatorsMatthews Pacific Tiger

Matthews Asia ESG

Matthews Asia Dividend

Matthews Asian Growth and IncomeMatthews Asia Value


Matthews Asia Overview

About Matthews Asia

Specialist asset management firm with singular focus on Asia

Established in 1991—managed assets through 28 years of diverse market environments

Independent, privately owned firm with significant employee ownership

48-person experienced investment team solely focused on identifying opportunities in Asia

Clients include global institutional investors, family offices, private banks, professional and high net worth investors

Largest dedicated Asia investment specialist in the United States

*Assets under management may rise or fall due to market conditions and other factors.Please refer to MatthewsAsia.com for most recent month-end AUM data.

KEY FACTSAs of September 30, 2019

Total assets under management*

$27.1 billion

Regional strategies$21.2 billion

Single-country strategies$5.9 billion

Investment team members†

48

Office LocationsSan Francisco, London, Hong Kong, Shanghai, Singapore

† Effective as of October 28, 2019.


1991G. Paul Matthewsfounds MatthewsInternational CapitalManagement

1994Matthews Asiaintroduces Asia ex-Japan and Asian Growth & Income Strategy

1998China Strategy inception

1998Japan Strategy inception

2003Asia Growth

Strategy inception

2008Asia Small Companies

Strategy inception

2010Matthews Asia introduces

off-shore funds for non-U.S. investors

2005India Strategy

inception

2006Asia Dividend

Strategy inception

1999Asia InnovatorsStrategy inception

1995Korea Strategy inception

1992Firm launches an investment vehiclefor the Asiaex-Japan region

2009China Dividend

Strategy inception

2011China Small

Companies Strategy inception

2011Asia Strategic Income

Strategy inception

Matthews Asia HistoryMatthews Asia has chosen to launch new strategies when there are compelling investment opportunities

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2013Emerging Asia

Strategy inception

2015Asia ESG Strategy

inception

2015Asia Credit

Opportunities Strategy inception

2015Asia Value and Asia

ex Japan Dividend Strategy Inception


Investment Philosophy and ApproachThe foundation of Matthews Asia’s investment philosophy is our belief in the long-term economic growth and development of the countries in Asia

ACTIVE MANAGEMENT

BOTTOM-UP RESEARCH

LONG-TERM FOCUS ON ASIA

RANGE OF ASIA INVESTMENT STRATEGIES


Matthews Asia Investment Team*

Diverse team in a highly collaborative environment

*Effective as of October 28, 2019.Note: Traders not referenced above but are included in overall investment team count.

Chief Investment OfficerRobert J. Horrocks, PhD

Portfolio ManagersWinnie ChwangRaymond Z. DengRahul GuptaRobert Harvey, CFARobert J. Horrocks, PhDTiffany Hsiao, CFA Taizo IshidaTeresa Kong, CFA John Paul LechElli LeeS. Joyce Li, CFAKenneth Lowe, CFA Andrew Mattock, CFAPeeyush Mittal, CFAMichael J. Oh, CFA Satya Patel Sharat Shroff, CFALydia So, CFAInbok SongShuntaro TakeuchiVivek Tanneeru Weihao XuSherwood Zhang, CFAYu Zhang, CFA Wei Zhang Beini Zhou, CFA

Research Principal, ChinaRichard Gao

AnalystsSiddharth Bhargava Kathlyn CollinsYuanyuan JiGrace MaBo NingSojung ParkRyan RutkowskiYinyan Ibanez, CFA Jeremy Sutch, CFAHaopeng Yang, PhDHardy ZhuJulia Zhu

Macro Investment StrategistsAndy Rothman, ChinaSriyan Pietersz, ASEAN

Portfolio StrategistsDavid DaliJeremy MurdenNick Walker

Open Communication and Exchange of Ideas

Formal

— Weekly all-hands meeting to discuss macro, stock ideas, trip debriefs and ad-hoc topics

— Bi-weekly portfolio review meeting to review trades, macro, risk

— Monthly portfolio compliance meeting to discuss potential compliance matters

— Weekly strategy-specific team meeting to discuss specific portfolio construction issues or individual stocks

— Committee meetings: Trade Management Oversight, Investment Risk, other

Informal

— Sit together—open floor plan

— Daily ad-hoc meetings around trip debriefs, fixed income insights, macro strategy, team structure and process, new product ideas, etc.


Senior Investment Team Members*—Redefining “Local”

*List of team members as of 10/28/2019.Note: Years of experience as of January 22, 2019

Name Investment Focus Asia Industry FirmCountry of

OriginAsia Countries

Lived InAsian Languages &

Dialects SpokenRobert Horrocks, PhD Asia Regional 25 25 11 U.K. China, Hong Kong, Taiwan, Korea Mandarin

Winnie Chwang China, Asia ESG 15 15 15 Singapore Singapore Mandarin, Cantonese

David Dali Broad EM 22 30 4 U.S. N/A N/A

Raymond Deng, CFA China 10 11 5 China China, Thailand Mandarin

Richard Gao China 30 30 22 China China Mandarin, Cantonese, Shanghainese

Rahul Gupta Asia Regional 17 25 5 India India Hindi

Robert Harvey, CFA Emerging and Frontier Asia 19 25 7 South Africa Vietnam, Hong Kong N/A

Tiffany Hsiao, CFA China Small Cap 18 18 5 Taiwan Hong Kong, Japan, Taiwan Mandarin, Taiwanese, Cantonese

Taizo Ishida Japan, Emerging Asia, Asia Growth 29 35 13 Japan Japan, Bangladesh Japanese

Teresa Kong, CFA Asia Debt 19 24 9 Hong Kong Hong Kong, China Cantonese

John Paul Lech Asia Regional 11 15 1 U.S. N/A N/A

Kenneth Lowe, CFA Asia Regional 13 13 9 U.K. N/A N/A

S. Joyce Li, CFA Asia Regional 13 13 3 China China Mandarin, Cantonese

Andrew Mattock, CFA China 20 24 4 Australia Singapore N/A

Peeyush Mittal, CFA India 10 10 4 India India Hindi

Michael Oh, CFA Korea, Asia Regional 19 19 19 South Korea South Korea Korean

Satya Patel Asia Debt 8 12 8 U.S. N/A Gujarati

Sriyan Pietersz ASEAN, Frontier Markets 26 28 3 Sri Lanka Sri Lanka, India, Thailand, Hong Kong Sinhalese, Thai

Andy Rothman China 35 35 5 U.S. China, Indonesia Mandarin

Sharat Shroff, CFA India, Asia Regional 16 19 14 India Hong Kong, India, Taiwan Hindi, Bengali

Lydia So, CFA Small Cap, Asia Regional 15 20 15 Hong Kong Hong Kong Cantonese, Mandarin

Inbok Song Asia Regional 14 14 8 Korea Korea Korean

Jeremy Sutch, CFA Small Cap, Asia Regional 24 24 4 Hong Kong China, Hong Kong N/A

Shuntaro Takeuchi Japan 14 18 3 Japan Japan Japanese

Vivek Tanneeru Asia ESG, Asia Regional 14 14 8 India India Telegu, Hindi

Weihao Xu China 7 13 <1 China China, Hong Kong Mandarin, Cantonese, Shanghainese

Sherwood Zhang, CFA China, Asia Regional 11 16 8 China China, Hong Kong Mandarin, Cantonese

Yu Zhang, CFA China, Asia Regional 15 15 12 China China, Japan Mandarin

Beini Zhou, CFA Asia Small Cap, Asia Value 14 14 6 China China Mandarin

Julia Zhu China 22 17 2 China China, Hong Kong Mandarin

Years of Experience


Matthews Asia—“Boots on-the-Ground”Fundamental, bottom-up investment process

*From 1/1/2016 to 12/31/2018

Over 2,700 company meetings each year

Half of the meetings are on-site visits in Asia in

locations ranging from Asian financial centers to

remote island outposts

Identifying investment opportunities that stand to prosper from Asia’s transformation calls for in-depth, on-the-ground, bottom-up research and active management:

3,800+ On-Site Meetings in Asia Since 2016*

China 1,055+

Hong Kong710+

Japan520+

Korea270+

India275+

Taiwan180

Singapore180

Thailand160+

Indonesia165+

Philippines75+

Malaysia35+

Vietnam 55+

Australia40+

Sri Lanka35+

Bangladesh15+

Macau10

New Zealand9

Myanmar 2


Strategies for Investing in AsiaMatthews Asia offers a range of strategies across the risk-reward spectrum

Asian Growth and Income

Asia Dividend

China Dividend

ASIA GROWTH

China

India

Japan

Korea

ASIA FIXED INCOME

Asia Strategic Income

Asia Credit Opportunities

ASIA GROWTH AND INCOME

Asia Value

ASIA VALUE

Asia Small Companies

China Small Companies

ASIA SMALL COMPANY

Asia Growth

Pacific Tiger

Asia ESG

Emerging Asia

Asia Innovators

For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.© 2019 Matthews International Capital Management, LLC PT001c_3Q19 30

FUND FACTS

Inception DateInvestor Class: 9/12/94Institutional Class: 10/29/10

TickerInvestor Class: MAPTXInstitutional Class: MIPTX

Cap RangeAll Cap

Number of Holdings 60 to 75

Turnover Range10% to 30%

BenchmarkMSCI All Country Asia ex Japan Index

Investment Objective

Long-term capital appreciation in Asia ex-Japan

Approach

Invest in companies located in Asia excluding Japan that are capable of sustainable growth based on the fundamental characteristics of those companies. Seek to invest in domestically oriented companies; selectively seeks globally competitive companies.

Fund Profile | Matthews Pacific Tiger Fund*

*Effective as of October 28, 2019This presentation must be preceded or accompanied by a Matthews Asia Funds prospectus.

SHARAT SHROFF, CFA

Lead Manager

RAHUL GUPTA RAYMOND DENG

Co-Managers

INBOK SONG

31Do not give, show or quote to any other person. This document is not for public distribution and is for professional investoruse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.

© 2019 Matthews International Capital Management, LLC HK.PT001b_3Q19

Equity Selection Framework

GOOD BUSINESS (GB)

• Industry structure conducive to sustained profitability

• Secular growth

• Recurring demand

• Barriers to entry

• Self-financing

APPROPRIATE VALUATION (AV)

• Sanity check

• Less about market timing

• Try not to overpay

GOOD MANAGEMENT (GM)

• Transparency, integrity,professionalism

• Alignment with minority shareholders

• Execution track record

• Deployment of capital

Parameters set by Matthews Asia are subject to change and may differ from the fundamental policy of the Fund.

32Do not give, show or quote to any other person. This document is not for public distribution and is for professional investoruse only and has not been registered with, or approved by, any regulatory authority in any jurisdiction.

© 2019 Matthews International Capital Management, LLC HK.PT001b_3Q19

Matthews Pacific Tiger Fund Investment Process

ROIC: Return on invested capitalParameters set by Matthews Asia are subject to change and may differ from the fundamental policy of the Fund.

About 2,500 companies, with market cap over US$500 million with ADV of at least US$1 million

Potential for sustainable growth across cycles

Research trips to Asia/ Institutional knowledge

Cross team fertilization across Matthews Asia

Screening for fundamental factors

IPOs

Ability to generate a positive economic spread

Strength of balance sheet to endure economic cycles

Margin sustainability—barriers to entry; pricing power

Potential for growth with less reliance on external capital

Multiple company visits and channel checks

Sensibility of capital budgeting and allocation

Management team incentives and corporate governance oversight Execution track record—look for positive signals of good governance

Multiple-based analysis relative to history and peers

Private market multiple—review of strategic M&A

Intrinsic value analysis through tools like Discounted cash flow (DCF)

Long-term risk / reward guides position sizing

Never sacrifice business quality for valuation

Regular company visits to monitor progress Intelligence from broad Matthews Asia team

Milestone-based approach for risk mitigation, and building conviction Relative attractiveness of existing holdings vs watch-list candidate

1. Actionable Research Universe

2. Idea Generation

3. Business Assessment

4. Management Assessment

5. ValuationAssessment

6. PortfolioConstruction and Monitoring

1. Actionable Research Universe

2. Idea Generation

3. Business Assessment

4. Management Assessment

5. ValuationAssessment

6. Portfolio Construction and

Monitoring

For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.© 2018 Matthews International Capital Management, LLC PT001c_4Q17

33

Actionable Research UniverseOpening of A-shares nearly doubles the actionable research universe

Asia ex Japan Universe

Market Capitalization

Average Trading Volume

Return on Capital

1. Asia ex Japan Universe

— Total companies: 18,000

2. Market Capitalization

— Market capitalization: > US$500 MN

— Passed companies: 4,500

3. Average Trading Volume

— Average daily volume: US$1 MN

— Passed companies: 3,900

4. Return on Capital

— 5-year average return on invested capital over cost of capital

— Passed companies: 2,500 (about 50% are Chinese A-shares listed on Shanghai and Shenzhen stock exchanges)



Idea Generation—Focused on Research Trips and Cross Team Fertilization

This information is solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of anysecurity listed, nor a representation as to whether a security is currently held by the Fund. The results of any possible investment in asecurity are not representative of the results of other investments by the Fund. Performance of the Fund and a list of current holdingsas of a recent date are available at matthewsasia.com. Past performance does not guarantee future results.

Source: Matthews Asia, data as of September 2018

IPO

Screening

Cross Team Fertilization

Research Trip

For institutional use only. Do not give, show or quote to any other person. Not to be used with retail investors. Do not duplicate or reproduce.© 2018 Matthews International Capital Management, LLC PT001c_4Q17

35

Business Assessment—Durability of a Business ModelA focus on domestically oriented business models to seek to raise the odds

Note: Universe represents all Asian companies as defined by FactSet that have grown more than 10% for the 2004 – 2014 time period.This information is solely to illustrate Matthews Asia’s investment process. This process is subject to change. It should not beconsidered a recommendation of any security listed, nor a representation as to whether a security is currently held by the Fund. Suchinformation should not be relied upon as investment advice regarding a particular investment, sector, industry or markets in general.Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles.

Sources: FactSet Research Systems, Inc., Matthews Asia, data as of March 2018

Energy Industrial MaterialsConsumerDiscretion

ConsumerStaples

HealthCare

Financials IT Telecom Utilities

Malaysia

Indonesia

Hong Kong

India

China

36Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professional use only andhas not been registered with, or approved by, any regulatory authority in any jurisdiction.

© 2019 Matthews International Capital Management, LLC G.PT001b_3Q19

Management Assessment—Qualitative Framework

Key Financial Assessment

Corporate Governance Track Record

— Related-party transactions

— Board independence

— CEO selection process

Management Team Incentives

— Senior management’s key performance indicators

— Compensation structure

— Management ownership and changes such as insider buying and selling

— Stock and option incentive plan coverage and criteria to implement

Capital Budgeting and Allocation

— Capital expenditure guidance and actual result

Look for positive signals of good governance



Management Assessment—Deployment of Capital

Generation of cash vs. consumption of cash

Return to shareholders

Frequent raising of capital is a significant hurdle to investment

Capital Usage (Local Currency)

Debt Equity Ops Div Acq Invest CapexCash (Local

Currency, MN)

Titan Company Limited 251 — 17,418 8,077 — 588 8,059 348

Peer 1 3,696 1,836 (3,842) 176 0 (349) 823 311

Peer 2 9,275 5,633 (8,883) 524 — (2,133) 1,156 2,563

Peer 3 1,117 — (14) 303 — — 914 (23)

Peer 4 12,520 15,501 2,041 12,812 1,360 61 5,878 6,163

TOTAL FIVE YEARS SOURCES OF CASH USE OF CASH CASH

Past performance does not guarantee future results.

Note: For five year period 2009 – 2014This information in this case study is solely to illustrate Matthews Asia’s investment process. It should not be considered arecommendation of the security discussed (the “Security”), nor a representation as to whether the Security is currently held by theFund. The results of any possible investment in the Security are not representative of the results of other investments by the Fund.Performance of the Fund and a list of current holdings as of a recent date are available at matthewsasia.com.

Sources: FactSet Research Systems, Matthews Asia

38Do not give, show or quote to any other person. This document is not for public distribution and is for institutional/professional use only andhas not been registered with, or approved by, any regulatory authority in any jurisdiction.

© 2019 Matthews International Capital Management, LLC G.PT001b_3Q19

Valuation Assessment

Intrinsic valuation models: discounted cash flow, EVA analysis

— Scenarios analysis (Bull, Bear, Base)

Multiples (PE, EV/EBITDA etc.) vs. company’s own historical and peer group

Private market multiples

Triangulation of methods to assess long-term market capitalization potential



Strategy | Pacific Tiger FundAs of September 30, 2019

The statements above are based on the beliefs and assumptions of our portfolio management team and on the information currentlyavailable to our team at the time of such statements. Although we believe that the expectations reflected in these statements arereasonable, we can give no assurance that these expectations will prove to be correct. Please see the Prospectus for the Funds foradditional information and the risks of investing in the Funds.

Portfolio Positioning

— Focus on sustainable, secular growth with a greater emphasis on Asian domestic demand

— Seek optimal combination of attractive businesses run by motivated, transparent management teams that we believe can create value across investment cycles

— Maintain overweight allocations in services-related sectors as we continue to see income levels rise in Asia

— Continue to be selective and focused on identifying businesses that are not overly dependent on capital markets

Outlook

— Across many parts of Asia, central bankers and policy makers are moving from defense to offense, shifting the economic imperative to boosting growth. Many central banks, especially in south Asia, have aggressively cut interest rates to lower the cost of funding

— U.S. – China trade tensions remain unresolved. The Chinese government, however, continues to balance the long-term goal of deleveraging the economy and maintaining consumption related growth

— India’s policy makers are willing to deploy more stimulus, but may be constrained by government budgets. Ongoing economic reforms may help improve India’s fiscal math

— Market volatility may continue over the short term amid macroeconomic risks. However, we believe Asian equities offer compelling growth opportunities over a full market cycle. Many economies in Asia benefit from political stability, rising middle-class incomes and growing entrepreneurship


Case Study | iQiyiOn track to duopoly position in rising online video consumption environment

CHINA MOBILE ENTERTAINMENT DAILY TIME SPENT

MARCH 2016: 2.0B HOURS MARCH 2018: 3.2B HOURS

599 571404

115 94

iQiyi (Baidu) Tencent Video Youku (Alibaba) Mivideo Hunan TV

IDEA GENERATION

— Institutional knowledge

— Through our holdings in Baidu and Tencent

MILESTONES

2018: Leading position in number of active users, paying subscribers and user time spent

2019: Increasing portion of self-produced contents, lower content cost

Looking to continue enlarging the gap with Youku to achieve a duopoly position

MONTHLY ACTIVE USERS OF VIDEO PLATFORMS IN CHINA (MILLIONS)

Social network

47%

Video22%

Game13%

News11%

Audio4%

Reading3%

Social network

60%

Video13%

Game13%

News7%

Audio4%

Reading3%

The information in this case study is presented solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of thesecurity discussed (the “Security”), nor a representation as to whether the Security is currently held by the Fund. The results of any possible investment in theSecurity are not representative of the results of other investments by the Fund. Performance of the Fund and a list of current holdings as of a recent date areavailable at matthewsasia.com. Performance quoted represents past performance and is no guarantee of future results. The statements above are based on thebeliefs and assumptions of our portfolio management team and on the information currently available to our team at the time of such statements. Although webelieve that the expectations reflected in these statements are reasonable, we can give no assurance that these expectations will prove to be correct.

Sources: Matthews Asia; Mary Meeker Internet Trends Report 2018


Case Study | United SpiritsA premiumization story

11.4% 12.6% 14.3%

FY17 FY18 FY19

IDEA GENERATION

Institutional knowledge Research trips

MILESTONES

Consumers with higher disposable incomes are lured to its strong, aspirational brands

Whiskey retains its dominant position in a fast growing spirits market

Margins continue to expand on mix as consumers upgrade from popular to prestige to premium

41%

59%

FY 2017

33%

67%

FY 2019

Popular Prestige & Above

EBITDA MARGIN

PERCENTAGE OF REVENUES BY SEGMENT

The information in this case study is presented solely to illustrate Matthews Asia’s investment process. It should not be considered a recommendation of thesecurity discussed (the “Security”), nor a representation as to whether the Security is currently held by the Fund. The results of any possible investment in theSecurity are not representative of the results of other investments by the Fund. Performance of the Fund and a list of current holdings as of a recent date areavailable at matthewsasia.com. Performance quoted represents past performance and is no guarantee of future results. The statements above are based on thebeliefs and assumptions of our portfolio management team and on the information currently available to our team at the time of such statements. Although webelieve that the expectations reflected in these statements are reasonable, we can give no assurance that these expectations will prove to be correct.

Source: United Spirits


Investment Returns | Matthews Pacific Tiger FundAs of September 30, 2019

Index since inception value calculated from 08/31/1994 Sources: BNY Mellon Investment Servicing, Bloomberg, Matthews Asia

AVERAGE ANNUAL TOTAL RETURNS

-3.94%

-0.46%

5.20%4.60%

7.55%8.28%

-4.39%

-3.15%

6.62%

4.53%

5.82%

4.26%

3 Months 1 Year 3 Years 5 Years 10 YearsSince Inception(09/12/1994)

Matthews Pacific Tiger Fund (Investor Class) MSCI All Country Asia ex Japan Index

Assumes reinvestment of all dividends and/or distributions before taxes. All performance quotedrepresents past performance and is no guarantee of future results. Investment return and principal value willfluctuate with market conditions so that when redeemed, shares may be worth more or less than their originalcost. Current performance may be lower or higher than the return figures quoted. Returns would have beenlower if certain of the Fund’s fees and expenses had not been waived. For the Fund’s most recent month-endperformance visit matthewsasia.com. It is not possible to invest directly in an index.


Competitive Returns | Matthews Pacific Tiger FundAs of September 30, 2019

Year to Date 1 Year 3 Years 5 Years 10 Years Since InceptionInception

Date

Investor Class (MAPTX) 3.39% -0.46% 5.20% 4.60% 7.55% 8.28% 9/12/94

Institutional Class (MIPTX) 3.50% -0.33% 5.36% 4.78% n.a 5.47% 10/29/10

MSCI All Country Asia ex Japan Index

5.96% -3.15% 6.62% 4.53% 5.82% 4.26%1

Lipper Pacific ex Japan Fund Category Average

9.71% -0.38% 5.83% 3.79% 5.74% 5.13%1

AVERAGE ANNUAL TOTAL RETURNS

1 As of 08/31/1994

Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents pastperformance and is no guarantee of future results. Investment return and principal value will fluctuate with marketconditions so that when redeemed, shares may be worth more or less than their original cost. Current performance maybe lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees andexpenses had not been waived. For the Fund’s most recent month-end performance visit matthewsasia.com. Indexesare unmanaged and it is not possible to invest directly in an index. Please refer to disclosures for index definition.

The Lipper Category Average does not reflect sales charges and is based on total return,including reinvestment of dividends and capital gains, for the stated periods.

Sources: BNY Mellon Investment Servicing, Bloomberg, Matthews Asia


Portfolio Characteristics | Matthews Pacific Tiger FundAs of September 30, 2019

Benchmark: MSCI All Country Asia ex Japan Index

The information contained in this presentation does not, in any way, constitute investment advice. Portfolio characteristics for the Fund may vary from time to time from what is shown.

Sources: FactSet Research Systems, Inc., Matthews Asia

SECTOR ALLOCATION (%)

Fund Benchmark Difference

Financials 24.9 23.4 1.5

Consumer Staples 19.5 5.4 14.1

Communication Services 17.0 12.0 5.0

Consumer Discretionary 10.9 13.6 -2.7

Real Estate 7.6 5.9 1.7

Information Technology 6.8 17.8 -11.0

Industrials 5.8 6.9 -1.1

Health Care 3.7 2.8 0.9

Utilities 2.5 3.3 -0.8

Materials 1.2 4.4 -3.2

Energy 0.0 4.4 -4.4

Cash and Other Assets, Less Liabilities

0.1 0.0 0.1

COUNTRY ALLOCATION (%)


China/Hong Kong 40.1 48.3 -8.2

India 19.7 10.4 9.3

South Korea 11.2 14.3 -3.1

Indonesia 8.4 2.4 6.0

Thailand 4.7 3.4 1.3

Taiwan 4.4 13.5 -9.1

Philippines 2.7 1.3 1.4

Switzerland 2.4 0.0 2.4

Malaysia 1.9 2.4 -0.5

United States 1.8 0.0 1.8

Vietnam 1.7 0.0 1.7

Japan 0.9 0.0 0.9

Singapore 0.0 3.8 -3.8

Pakistan 0.0 0.0 0.0


0.1 0.0 0.1


Portfolio Characteristics | Matthews Pacific Tiger FundAs of September 30, 2019

MARKET CAP EXPOSURE (%)


Mega Cap (over $25B) 44.6 54.4 -9.8

Large Cap ($10B-$25B) 25.9 22.2 3.7

Mid Cap ($3B-$10B) 22.1 19.3 2.8

Small Cap (under $3B) 7.4 4.1 3.3


0.1 0.0 0.1

The information contained in this presentation does not, in any way, constitute investment advice. Portfolio characteristics for the Fund may vary from time to time from what is shown.

Sources: FactSet Research Systems, Inc., Bloomberg, Matthews Asia

PORTFOLIO CHARACTERISTICS

Fund

Assets $8.5 billion

Weighted Average Market Cap $74.6 billion

P/E using FY1 Estimates* 18.2x

P/E using FY2 Estimates* 16.0xBenchmark: MSCI All Country Asia ex Japan Index

*The P/E Ratio is the share price of a stock as of the report date, divided by theforecasted earnings per share for a 12-month period (FY1) and 24 month period(FY2). For the Fund, this is the weighted harmonic average estimated P/E ratio of allthe underlying stocks in the Fund, excluding negative earners. There is no guaranteethat the composition of the Fund will remain unchanged, or that forecasted earningsof a stock will be realized. Information provided is for illustrative purposes only.


Top Ten Holdings | Matthews Pacific Tiger Fund As of September 30, 2019

This information does not, in any way, constitute investment advice. Portfolio holdings may vary from time to time from what isshown. It should not be assumed that any investment in the securities listed was or will be profitable. The information does notconstitute a recommendation to buy or sell any securities mentioned.

Sources: BNY Mellon Investment Servicing, Matthews Asia

Company Sector Country %

Alibaba Group Holding, Ltd. Consumer Discretionary China/Hong Kong 4.3

NAVER Corp. Communication Services South Korea 4.1

Ping An Insurance Group Co. of China, Ltd. Financials China/Hong Kong 4.1

China Resources Land, Ltd. Real Estate China/Hong Kong 3.8

Tencent Holdings, Ltd. Communication Services China/Hong Kong 3.5

China Resources Beer Holdings Co., Ltd. Consumer Staples China/Hong Kong 3.4

AIA Group, Ltd. Financials China/Hong Kong 3.1

Kotak Mahindra Bank, Ltd. Financials India 3.0

PT Telekomunikasi Indonesia Persero Communication Services Indonesia 2.7

HDFC Bank, Ltd. Financials India 2.5

Total for Top 10 34.5%


Attribution by Country | Matthews Pacific Tiger FundThird Quarter 2019

Published Portfolio Return1 -3.94%

Published Benchmark Return -4.39%

Published Relative Return2 0.45%

Attributable Portfolio Return -3.56%

Attributable Relative Return 0.83%

1 Published portfolio return represents that of the Investor Share Class.

2 The published relative return is calculated as the difference of the published benchmark return from the published portfolio return.

Average Portfolio Wt

Average Benchmark Wt

Allocation Effect

Selection + Interaction

Effect

Total Effect

Total 100.00 100.00 -0.37 1.19 0.83

Indonesia 8.05 2.52 -0.06 0.81 0.75

South Korea 10.71 13.89 0.03 0.56 0.59

China/Hong Kong 40.11 49.06 0.19 0.24 0.43

India 18.80 10.22 -0.02 0.39 0.37

Japan 0.80 0.00 0.21 0.00 0.21

Vietnam 1.62 0.00 0.18 0.00 0.18

Philippines 2.71 1.32 -0.01 0.05 0.05

Singapore 0.00 3.91 0.04 0.00 0.04

Pakistan 0.00 0.03 0.00 0.00 0.00

United States 1.88 0.00 -0.01 0.00 -0.01

Malaysia 2.01 2.49 0.01 -0.04 -0.03

Switzerland 2.39 0.00 -0.27 0.00 -0.27

Thailand 4.83 3.48 -0.02 -0.29 -0.31

Taiwan 4.55 13.08 -0.83 -0.53 -1.36

Cash 1.94 0.00 0.19 0.00 0.19

Unassigned -0.39 0.00 -0.01 0.00 -0.01


The attribution report shows the extent to which the portfoliomanager’s strategies affect a fund’s performance relative to theperformance of the fund’s benchmark index. Allocation Effectshows the effect on fund performance of either over- or under-weighting a market (a sector, country or region, depending on thetype of fund) relative to its benchmark. Selection + InteractionEffect shows how the decision to hold individual securities withinthe particular sector, country or region performed relative to thebenchmark.

Attributed performance is calculated using FactSet ResearchSystems, Inc. The methodology of calculation is different from thepublished NAV and will not match performance based on thepublished NAV. Performance shown is historical and no guaranteeof future results. Current performance may be lower or higher.Returns current to the most recent month-end are available atmatthewsasia.com. Investment returns and principal value willfluctuate so that when redeemed, shares may be worth more orless than their original cost. Benchmark performance is unaudited.

Please refer to the disclosures for index definition. Unassigned mayinclude fees, expense accruals, offsets, warrants and rights.


Attribution by Sector | Matthews Pacific Tiger FundThird Quarter 2019Published Portfolio Return1 -3.94%



Attributable Portfolio Return -3.56%




Average Portfolio Wt

Average Benchmark Wt

Allocation Effect


Effect

Total Effect

Total 100.00 100.00 -0.49 1.31 0.83

Communication Services

16.47 12.30 -0.08 0.84 0.77

Consumer Staples 19.50 5.27 0.31 0.36 0.67

Health Care 4.15 2.86 -0.02 0.48 0.46

Real Estate 7.42 6.19 -0.09 0.48 0.39

Industrials 5.62 6.99 0.05 0.09 0.15

Materials 1.21 4.45 0.18 -0.03 0.14

Financials 24.82 23.79 -0.03 0.12 0.08

Energy 0.00 4.30 -0.01 0.00 -0.01

Consumer Discretionary

9.77 13.57 -0.06 -0.02 -0.08

Utilities 2.67 3.40 0.02 -0.24 -0.23

Information Technology

6.83 16.87 -1.00 -0.71 -1.71

Cash 1.94 0.00 0.19 0.00 0.19

Unassigned -0.39 0.00 0.05 -0.06 -0.01




Please refer to the disclosures for index definition. Unassignedmay include fees, expense accruals, offsets, warrants and rights.


Attribution by Country | Matthews Pacific Tiger Fund One Year September 30, 2018 to September 30, 2019




Attributable Portfolio Return 0.93%




Average Portfolio

WtAverage

Benchmark WtAllocation

Effect


EffectTotal

Effect

Total Portfolio 100.00 100.00 0.73 3.36 4.09

India 19.61 10.26 0.80 1.18 1.98

China/Hong Kong 37.97 48.29 -0.07 1.86 1.79

Indonesia 7.23 2.50 0.61 1.05 1.66

South Korea 11.49 15.08 0.44 0.34 0.78

Philippines 2.41 1.27 0.16 -0.02 0.14

Japan 0.46 0.00 0.03 0.00 0.03

Pakistan 0.00 0.04 0.02 0.00 0.02

Vietnam 2.04 0.00 0.00 0.00 0.00

Malaysia 3.00 2.60 -0.02 -0.06 -0.08

Singapore 0.00 3.95 -0.12 0.00 -0.12

United States 1.80 0.00 -0.34 0.00 -0.34

Thailand 5.07 3.01 0.05 -0.60 -0.55

Switzerland 2.36 0.00 -0.56 0.00 -0.56

Taiwan 4.80 12.98 -0.36 -0.40 -0.76

Cash 2.03 0.00 0.38 0.00 0.38

Unassigned -0.25 0.00 -0.28 0.00 -0.28










Attribution by Sector | Matthews Pacific Tiger Fund One Year September 30, 2018 to September 30, 2019

Average Portfolio

WtAverage


Effect


EffectTotal

Effect

Total Portfolio 100.00 100.00 0.61 3.48 4.09

Financials 24.40 23.86 -0.02 1.62 1.60

Consumer Staples 19.99 5.05 0.72 0.18 0.90


8.28 12.79 -0.16 0.93 0.77


15.48 12.59 -0.07 0.72 0.65

Materials 1.21 4.63 0.41 0.18 0.59

Energy 0.00 4.56 0.53 0.00 0.53

Industrials 5.81 7.15 0.08 0.35 0.42

Real Estate 7.11 6.27 0.03 0.12 0.15

Health Care 5.91 2.92 -0.83 0.56 -0.27

Utilities 3.32 3.41 0.04 -0.40 -0.36


6.72 16.77 -0.45 -0.55 -0.99

Cash 2.03 0.00 0.38 0.00 0.38

Unassigned -0.25 0.00 -0.06 -0.22 -0.28









Attribution by Country | Matthews Pacific Tiger Fund Three Years September 30, 2016 to September 30, 2019

Published Portfolio Return1 5.20%

Published Benchmark Return 6.62%

Published Relative Return2 -1.42%


Attributable Relative Return -0.92%



Average Portfolio

WtAverage


Effect


EffectTotal

Effect

Total Portfolio 100.00 100.00 -1.58 0.66 -0.92

India 20.10 10.05 0.05 1.01 1.06

China/Hong Kong 35.17 46.37 -0.11 1.16 1.05

Indonesia 6.57 2.60 -0.11 0.23 0.12

Pakistan 0.00 0.06 0.03 0.00 0.03

United States 2.24 0.00 0.02 0.00 0.02

Japan 0.21 0.00 0.00 0.00 0.00

Vietnam 2.36 0.00 -0.04 0.00 -0.04

Malaysia 3.57 2.73 0.00 -0.06 -0.07

Singapore 0.07 4.15 -0.06 -0.02 -0.08

Thailand 5.37 2.75 0.13 -0.27 -0.14

Philippines 2.40 1.28 -0.08 -0.07 -0.15

Switzerland 2.44 0.00 -0.36 0.00 -0.36

Taiwan 5.27 13.49 -0.31 -0.29 -0.61

South Korea 12.21 16.53 0.12 -1.03 -0.90

Cash 2.15 0.00 -0.05 0.00 -0.05

Unassigned -0.13 0.00 -0.79 0.00 -0.79










Attribution by Sector | Matthews Pacific Tiger Fund Three Years September 30, 2016 to September 30, 2019

Average Portfolio

WtAverage


Effect


EffectTotal

Effect

Total Portfolio 100.00 100.00 -1.74 0.83 -0.92

Financials 21.37 23.54 -0.01 1.21 1.20


8.97 12.85 0.06 0.80 0.87

Real Estate 6.58 5.93 0.01 0.36 0.36

Consumer Staples 20.03 4.80 -0.16 0.48 0.32

Materials 1.28 4.56 0.07 -0.08 -0.01

Industrials 6.04 7.39 0.10 -0.17 -0.07

Energy 0.00 4.36 -0.17 0.00 -0.17

Utilities 4.45 3.33 -0.09 -0.13 -0.22


14.57 13.14 -0.03 -0.40 -0.43

Health Care 7.28 2.63 -0.32 -0.52 -0.83


7.41 17.47 -0.50 -0.59 -1.09

Cash 2.15 0.00 -0.05 0.00 -0.05

Unassigned -0.13 0.00 -0.65 -0.14 -0.79



Published Relative Return2 -1.42%


Attributable Relative Return -0.92%




Attribution by Country | Matthews Pacific Tiger Fund Five Years September 30, 2014 to September 30, 2019








Average Portfolio

WtAverage


Effect


EffectTotal

Effect

Total Portfolio 100.00 100.00 -1.16 1.66 0.50

China/Hong Kong 33.04 44.28 -0.17 0.86 0.68

India 19.87 9.82 0.01 0.63 0.64

Vietnam 2.20 0.00 0.27 0.00 0.27

Indonesia 6.68 2.80 -0.04 0.30 0.25

Singapore 0.29 4.66 0.13 0.00 0.13

Philippines 2.58 1.44 -0.06 0.14 0.08

South Korea 13.63 17.05 0.09 -0.03 0.07

Thailand 5.33 2.74 0.04 0.01 0.06

Malaysia 3.61 3.22 0.03 0.02 0.04

United States 2.26 0.00 0.03 0.00 0.03

Pakistan 0.00 0.03 0.02 0.00 0.02

Japan 0.13 0.00 0.00 0.00 0.00

Switzerland 2.47 0.00 -0.22 0.00 -0.22

Taiwan 5.74 13.97 -0.33 -0.25 -0.58

Cash 2.25 0.00 -0.06 0.00 -0.06

Unassigned -0.09 0.00 -0.91 0.00 -0.91










Attribution by Sector | Matthews Pacific Tiger Fund Five Years September 30, 2014 to September 30, 2019

Average Portfolio

WtAverage


Effect


EffectTotal

Effect

Total Portfolio 100.00 100.00 -1.28 1.78 0.50

Financials 19.51 24.41 -0.02 1.45 1.43

Consumer Staples 20.11 5.05 -0.04 0.95 0.91


8.69 11.30 0.04 0.64 0.69

Real Estate 7.38 5.98 0.07 0.35 0.42

Industrials 6.32 8.07 0.12 0.07 0.19

Materials 1.45 4.49 0.09 0.02 0.11

Energy 0.00 4.45 0.11 0.00 0.11

Health Care 7.90 2.54 -0.19 -0.05 -0.25


13.52 12.55 0.00 -0.35 -0.35

Utilities 4.92 3.74 -0.08 -0.41 -0.50


8.04 17.42 -0.49 -0.79 -1.29

Cash 2.25 0.00 -0.06 0.00 -0.06

Unassigned -0.09 0.00 -0.81 -0.10 -0.91









Attribution Disclosure

Performance attribution reports are calculated with a holdings-based methodology using software supplied by FactSetResearch Systems, Inc. The performance shown will not equate to the standard, published performance for the Fund. The quarterly or annual periods shown in the attribution reports should be considered short-term, while it is appropriate to have a long-term horizon when investing in a mutual fund. Fund performance should be evaluated over such a long-term horizon. Relative performance in a particular sector or country over a short period, and relative performance due to asset allocation or stock selection over a short period is no indication or guarantee of performance over longer time horizons. The sector or country allocation shown may not be representative of the Fund’s current or future investments. None of the data displayed should be considered as a recommendation. The attribution report must be preceded or accompanied by the Fund’s prospectus.


Matthews Pacific Tiger Fund Investment Team

SHARAT SHROFF, CFA Sharat Shroff is a Portfolio Manager at Matthews Asia and manages the firm’s Pacific Tiger Strategy and co-manages the India and Asia Growth Strategies. Prior to joining Matthews Asia in 2005 as a Research Analyst, Sharat worked in the San Francisco and Hong Kong offices of Morgan Stanley as an Equity Research Associate. Sharat received a Bachelor of Technology from the Institute of Technology in Varanasi, India and an M.B.A. from the Indian Institute of Management, in Calcutta, India. He is fluent in Hindi and Bengali.

RAHUL GUPTA Rahul Gupta is a Portfolio Manager at Matthews Asia and co-manages the firm’s Pacific Tiger Strategy. Prior to joining the firm in 2014, he spent almost a decade at Oaktree Capital Management as a Senior Vice President on the Emerging Market Long Short Equity Fund. In this role, he managed portfolios in the technology, industrial and health care industries. Rahul began his career in 1994 with Citibank, and as a Vice President was responsible for heading the development of new financial products. Rahul earned his M.B.A. from INSEAD in France and was also an exchange student at The Wharton School of the University of Pennsylvania. Hereceived a Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology in New Delhi. He is fluent in Hindi.

RAYMOND Z. DENG Raymond Deng is a Portfolio Manager at Matthews Asia, and co-manages the firm’s Pacific Tiger Strategy. Prior to joining the firm in 2014, Raymond earned an M.B.A from The University of Chicago Booth School of Business. From 2008 to 2012, he worked at Booz &Company, most recently as a Senior Consultant responsible for developing corporate growth strategies, financial analysis and modeling and client management. Raymond received a B.S. in Industrial Engineering from Tsinghua University in Beijing. He is fluent in Mandarin.

INBOK SONG Inbok Song is a Portfolio Manager at Matthews Asia and co-manages the firm’s Pacific Tiger Strategy. Prior to rejoining the firm in 2019, Inbok spent three years at Seafarers Capital Partners as a portfolio manager, the firm’s Director of Research and chief data scientist. Previously she was at Thornburg Investment Management as an associate portfolio manager. From 2007 to 2015, she was at Matthews Asia, most recently as a portfolio manager. From 2005 to 2006, In-Bok served as an Analyst and Technology Specialistat T. Stone Corp., a private equity firm in Seoul, South Korea. From 2004 to 2005, she was a research engineer for Samsung SDI in Seoul. Inbok received both a B.A. and Masters in Materials Science and Engineering from Seoul National University. She received a Masters in International Management from the University of London, King’s College, and also an M.A. in Management Science andEngineering, with a concentration in finance from Stanford University. Inbok is fluent in Korean.


Matthews Pacific Tiger Fund Investment Team

ELLI LEE Elli Lee is a Portfolio Manager at Matthews Asia and co-manages the firm's Korea Strategy. Prior to joining the firm in 2016, Elli worked at Bank of America Merrill Lynch for 10 years, most recently in Korean Equity Sales and previously as an Equity Research Analyst covering South Korea’s engineering, construction, steel and education sectors. From 2003 to 2005, Elli was an Investor Relations Specialist at Hana Financial Group in Seoul. She received a B.A. in Economics from Bates College, and is fluent in Korean.

JEREMY SUTCH, CFA Jeremy Sutch is a Senior Research Analyst at Matthews Asia. Prior to joining the firm in 2015, he was Director and Global Head of Emerging Companies at Standard Chartered Bank in Hong Kong from 2012 to 2015, responsible for the fundamental analysis of companies in Asia, with a particular focus on small- and mid-capitalization companies. From 2009 to 2012, he was Managing Director at MJP Capital in Hong Kong, which he co-founded. His prior experience has included managing small-cap equities at Indus Capital Advisors and serving as Head of Hong Kong Research for ABN AMRO Asia Securities. Jeremy earned an M.A. in French and History from the University of Edinburgh.


Contact Us

To learn more about Matthews Asia or how our strategies can complement globally diversified portfolios, please contact the Matthews Asia Client Services Team.

CONTACTING THE MATTHEWS ASIA CLIENT SERVICES TEAM

Phone888.289.7988

[email protected]

Webmatthewsasia.com


DisclosureYou should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus or summary prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international and emerging markets.

The information contained in this presentation is for informational purposes only and does not, in any way, constitute investment advice or an offer to sell or a solicitation of an offer to buy any security or product mentioned herein. No representation is given that shares, products or services mentioned herein are suitable for any investor.

Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange rate fluctuations, a high level of volatility and limited regulation. Fixed income investments are subject to additional risks, including, but not limited to, interest rate, credit and inflation risks. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic location. Investing in small- and mid-size companies is more risky than investing in large companies as they may be more volatile and less liquid than large companies.

Matthews Asia is the brand for Matthews International Capital Management, LLC and its direct and indirect subsidiaries.

Matthews International Capital Management, LLC is the advisor to the Matthews Asia Funds.

The Lipper China Region Funds Category includes Funds that concentrate their investments in equity securities whose primary trading markets or operations are concentrated in the China region or in a single country within this region.

The Lipper Emerging Markets Funds Category includes Funds that seek long-term capital appreciation by investing at least 65% of total assets in emerging market equity securities, where "emerging market" is defined by a country's GNP per capita or other economic measures.

The Lipper India Region Funds Category includes Funds that concentrate their investments in equity securities with primary trading markets or operations concentrated in the India region.

The Lipper Japanese Funds Category includes Funds that concentrate their investments in equity securities of Japanese companies.

The Lipper Pacific Region Funds Category includes Funds that concentrate their investments in equity securities with primary trading markets or operations concentrated in the Western Pacific Basin region or a single country within this region.

The Lipper Pacific ex Japan Funds Category includes Funds that concentrate their investments in equity securities with primary trading markets or operations concentrated in the Pacific region (including Asian countries) and that specifically do not invest in Japan.

Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC

Matthews Asia Funds are distributed in Latin America by HMC Partners


Index DefinitionsThe Bloomberg European 500 Index is a free float capitalization-weighted index of the 500 most highly capitalized European companies.

The iShares MSCI Emerging Markets ETF (EEM) is an exchange-traded fund incorporated in the USA. The ETF tracks the performance of the MSCI TR Emerging Markets Index. The ETF holds emerging market stocks that can predominantly be classified as large and mid-cap.

The iShares MSCI Europe Small-Cap ETF seeks to track the investment results of an index composed of small-capitalization developed market equities in Europe.

The iShares MSCI Frontier 100 ETF seeks to track the investment results of an index composed of frontier market equities.

The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.

The MSCI All Country Asia ex Japan Small Cap Index is a free float-adjusted market capitalization–weighted index of small cap index of the stock markets of China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.

The MSCI All Country Asia Pacific Index is a free float-adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand.

The MSCI All Country World Index (ACWI) captures large and mid cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,489 constituents, the index covers approximately 85% of the global investable equity opportunity set.

The MSCI Australia Index is a free float–adjusted, market capitalization–weighted index of equity market performance in Australia.

The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs).

The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).

The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

The MSCI Emerging Markets (EM) Asia Index captures large and mid cap representation across 9 Emerging Markets countries. With 567 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Emerging Markets (EM) Index is a float-adjusted market capitalization index that consists of indices in 23 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and the United Arab Emirates.

The MSCI Emerging Markets Equity Index captures large and mid cap representation across 23 Emerging Markets (EM) countries. With 829 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Emerging Markets (EM) Latin America Index captures large and mid-cap representation across 5 Emerging Markets (EM) countries in Latin America. With 110 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Emerging Markets EMEA Index captures large and mid cap representation across 10 Emerging Markets (EM) countries in Europe, the Middle East and Africa (EMEA). With 163 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Europe Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe. The MSCI Europe Index consists of the following 15 developed market country indexes: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.


Index DefinitionsThe MSCI Europe Small Cap Index captures small cap representation across the 15 Developed Markets (DM) countries in Europe. With 985 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in the European equity universe.

The MSCI Frontier Markets Index captures large and mid cap representation across 29 Frontier Markets (FM) countries. The index includes 110 constituents, covering about 85% of the free float-adjusted market capitalization in each country.

The MSCI India Index is a free float–adjusted market capitalization index that is designed to measure the performance of the large and mid -cap segments of the Indian market.

The MSCI India Small Cap Index is designed to measure the performance of the small cap segment of the Indian market. With 253 constituents, the index represents approximately 14% of the free float-adjusted market capitalization of the India equity universe.

The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan. The MSCI Japan Value Index captures large and mid cap Japanese securities exhibiting overall value style characteristics. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. With 173 constituents, the index targets 50% coverage of the free float-adjusted market capitalization of the MSCI Japan Index.

The MSCI Japan Growth Index is a free-float weighted equity index.

The MSCI Japan Small Cap Index is designed to measure the performance of the small cap segment of the Japanese market. With 926 constituents, the index represents approximately 14% of the free float-adjusted market capitalization of the Japan equity universe.

The MSCI Japan Value Index captures large and mid cap Japanese securities exhibiting overall value style characteristics. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. With 176 constituents, the index targets 50% coverage of the free float-adjusted market capitalization of the MSCI Japan Index.

The Korea Composite Stock Price Index (KOSPI) is a capitalization-weighted index of all common stocks listed on the Korea Stock Exchange.

The MSCI United Kingdom Index is a free float–adjusted market capitalization index designed to measure the performance of the large and mid-cap segments of the UK market.

The MSCI USA Index is a free float adjusted market capitalization index that is designed to measure large and mid cap US equity market performance.

The MSCI USA Small Cap Index is designed to measure the performance of the small cap segment of the US equity market. With 1,782 constituents, the index represents approximately 14% of the free float-adjusted market capitalization in the US.

The Russell 2000 index is an index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. The weighted average market capitalization for companies in the Russell 2000 is about US$1.3 billion and the index itself is frequently used as a benchmark for small-cap mutual funds.

The S&P 500 Index is a broad market-weighted index dominated by blue-chip stocks in the U.S.

The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.

The SSE Composite Index also known as SSE Index is a stock market index of all stocks that are traded at the Shanghai Stock Exchange.

The Shanghai Stock Exchange Composite Index is a capitalization-weighted index. The index tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Tokyo Stock Price Index (TOPIX) is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange.

The TOPIX Small Index is a capitalization-weighted index designed to measure the performance of the stocks listed on the First Section of the Tokyo Stock Exchange, excluding the TOPIX 500 stocks and non-eligible stocks.

Indexes are unmanaged and it is not possible to invest directly in an index.


GlossaryCAGR (Compound Annual Growth Rate) is the year-over-year growth rate of an investment over a specified period of time.

DCF (Discounted Cash Flow) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment.

EBIT Margin (Earnings Before Interest and Taxation Margin) is a profitability measure equal to EBIT divided by net revenue. This value is useful when comparing multiple companies, especially within a given industry, and also helps evaluate how a company has grown over time.

EBITDA (Earnings Before Interest and Taxation, Depreciation and Amortization) is a measure of a company’s earnings before considering the financing of that company (the share of equity capital and debt employed), and disregarding potential depreciation and amortization policies, which can be very different. EBITDA allows like-for-like comparisons between different companies’ performance.

EPS (Earnings per Share) is the amount of annual profit (after tax and all other expenses) attributable to each share in a company. EPS is calculated by dividing profit by the average number of shares on issue.

EVA (Economic Value Added) is a measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis).

EV/EBITDA (Enterprise Multiple) is a ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account - an item which other multiples like the P/E ratio do not include.

EV (Enterprise Value) is a measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is calculated as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

FCF (Free Cash Flow) is a measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

Forward P/E (Forward Price to Earnings) is a measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there still may be benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.

Gross Margin is a company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by a company.

Net Margin is the ratio of net profits to revenues for a company or business segment—typically expressed as a percentage—that shows how much of each dollar earned by the company is translated into profits. It is calculated by dividing net profit by revenue.

Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency. Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production.

P/E Ratio (Price-to-Earnings Ratio) is a valuation ratio of a company’s current share price compared to its per-share earnings, calculated as marketing value per share divided by earnings per share (EPS).

P/B Ratio (Price-to-Book Ratio) is used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. A lower P/B ratio could mean that the stock is undervalued.

PPP (Purchasing Power Parity) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.

ROE (Return on Equity) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested, and is calculated as net income divided by shareholder’s equity.

ROIC (Return on Invested Capital) is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. The return on invested capital measure gives a sense of how well a company is using its money to generate returns.

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Investing in the Future of AsiaThe views and information discussed herein are as of the date of publication, are subject to change and may not reflect current views. The views expressed