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NEWS
Contact: Matthews Launches Asia Pacific Equity Income FundSan Francisco, CA, October 31, 2006 — Matthews International Capital Management, LLC, advisor to the Matthews Asian Funds, announces the launch of the Matthews Asia Pacific Equity Income Fund today. The Fund will focus on dividend-paying common stocks and preferred stocks of Asia Pacific companies and seeks to provide a level of current income that is higher than the yield generally available in Asia Pacific equity markets over the long term. The Fund will seek out companies that have paid high dividends in the past, or which are well-positioned to grow future dividends, or both. The Fund's investment objective is to generate total returns (measured over long investment horizons), with a focus on providing current income. It will be managed by Andrew Foster and Jesper Madsen. In creating this fund, Matthews cited that dividends have been an important catalyst of long-term return in Asia. "What is exciting from our point of view is that the emphasis on dividends in the region continues to grow," said Andrew Foster, lead manager of the new fund. "As corporate governance standards have risen in the region, companies have recognized the importance of rewarding minority shareholders through higher dividend payouts. In addition, a growing body of evidence, both in the U.S. as well as Asia Pacific, suggests that sound dividend policies are often linked with better corporate performance. We are thus pleased to offer the Equity Income Fund as a means to participate in this important evolution in Asia." In a recent review of dividends in Asia, Andrew Foster and Jesper Madsen draw attention to the changes that have taken place during the last decade. The company paying the largest dividends in the region is a Chinese company listed on the Hong Kong exchange only in late 2000. Many of China's largest dividend-paying companies were only listed in the last decade. Japan's dividend policies have evolved substantially in recent years, as companies have begun to move away from low, "fixed" dividends per share, towards a larger payout of earnings. In Australia, a favorable tax regime, has spurred companies to adopt much more generous dividend policies. Founded in 1991, Matthews International Capital Management specializes in Asian investing and manages the no-load Matthews Asian Funds. The Matthews Asian Funds also include the Matthews Pacific Tiger Fund, Asian Growth & Income Fund, Asia Pacific Fund, Asian Technology Fund, China Fund, India Fund, Japan Fund and Korea Fund. Investing in foreign securities may involve certain additional risks, including exchange-rate fluctuations, less liquidity, greater volatility and less regulation. Single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific sector or geographic region. You should consider the investment objectives, risks, charges and expenses of the Matthews Asian Funds carefully before making an investment decision. A prospectus with this information and other information about the Funds may be obtained by calling 1-800-789-ASIA (2742) or by visiting www.matthewsfunds.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international markets. Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve, or any other government agency, and are subject to investment risks, including possible loss of the principal amount invested. Distributor: PFPC Distributors, Inc., 760 Moore Road, King of Prussia, PA 19406 |
