Matthews Asia Strategic Income Fund
SUMMARY PROSPECTUS |
April 30, 2015 | |||
TICKER: MAINX (INVESTOR CLASS), MINCX (INSTITUTIONAL CLASS)
Before you invest, you may want to review the Funds Prospectus, which contains more information about the Fund and its risks. You can find the Funds Prospectus and other information about the Fund online at matthewsasia.com/prospectus. You may also obtain this information at no additional cost by calling 800.789.ASIA (2742) or by sending an e-mail request to prospectus@matthewsasia.com. The Funds Prospectus and Statement of Additional Information, both dated April 30, 2015, are incorporated by reference into this Summary Prospectus.
Investment Objective
The Matthews Asia Strategic Income Fund (the Strategic Income Fund or the Fund) seeks total return over the long term, with an emphasis on income.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy and hold shares of this Fund.
SHAREHOLDER FEES
(fees paid directly from your investment)
Investor Class | Institutional Class | |||||||
Maximum Account Fee on Redemptions (for wire redemptions only) |
$9 | $9 |
ANNUAL OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your investment)
Management Fee | 0.65% | 0.65% | ||||||||||||||
Distribution (12b-1) Fees | | | ||||||||||||||
Other Expenses | 0.62% | 0.42% | ||||||||||||||
Administration and Shareholder Servicing Fees |
0.14% | 0.14% | ||||||||||||||
Total Annual Fund Operating Expenses | 1.27% | 1.07% | ||||||||||||||
Fee Waiver and Expense Reimbursement1 |
(0.17% | ) | (0.17% | ) | ||||||||||||
Total Annual Fund Operating Expenses After |
1.10% | 0.90% |
1 | Matthews has contractually agreed (i) to waive fees and reimburse expenses to the extent needed to limit Total Annual Fund Operating Expenses (excluding Rule 12b-1 fees, front-end or contingent deferred loads, taxes, interest, brokerage commissions, short sale dividend expenses, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation) of the Institutional Class to 0.90%, and (ii) if any Fund-wide expenses (i.e., expenses that apply to both the Institutional Class and the Investor Class) are waived for the Institutional Class to maintain the 0.90% expense limitation, to waive an equal amount (in annual percentage terms) of those same expenses for the Investor Class. The Total Annual Fund Operating Expenses After Fee Waiver and Expense Reimbursement for the Investor Class may vary from year to year and will in some years exceed 0.90%. If the operating expenses fall below the expense limitation in a year within three years after Matthews has made a waiver or reimbursement, the Fund may reimburse Matthews up to an amount that does not cause the expenses for that year to exceed that fee waiver and/or expense reimbursement or to exceed any other agreed upon expense limitation for that year. This agreement will remain in place until April 30, 2016, may be renewed for additional periods not exceeding one year and may be terminated at any time by the Board of Trustees or the Trust on behalf of the Fund on 60 days written notice to Matthews. Matthews may decline to renew this agreement by written notice to the Trust at least 30 days before its annual expiration date. |
EXAMPLE OF FUND EXPENSES
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
One year | Three years | Five years | Ten years | |||||||||
Investor Class | $112 | $380 | $675 | $1,514 | ||||||||
Institutional Class | $92 | $318 | $568 | $1,285 |
PORTFOLIO TURNOVER
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example of fund expenses, affect the Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 34% of the average value of its portfolio.
PS-MAINX-MINCX-0415
2 MATTHEWS ASIA STRATEGIC INCOME FUND | Continued on Page 4 |
Past Performance
The bar charts below show the Funds performance for each full calendar year since inception and how it has varied from year to year, reflective of the Funds volatility and some indication of risk. Also shown are the best and worst quarters for this time period. The table below shows the Funds performance over certain periods of time, along with performance of its benchmark index. The index performance does not take into consideration fees, expenses or taxes. The information presented below is past performance, before and after taxes, and is not a prediction of future results. The bar charts and performance table assume reinvestment of all dividends and distributions. For the Funds most recent month-end performance, please visit matthewsasia.com or call 800.789.ASIA (2742).
ANNUAL RETURNS FOR YEARS ENDED 12/31
Investor Class:
Institutional Class:
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2014
1 year | Since Inception (11/30/11) |
|||||||
Matthews Strategic Income FundInvestor Class |
||||||||
Return before taxes |
2.54% | 4.73% | ||||||
Return after taxes on distributions1 |
1.05% | 3.29% | ||||||
Return after taxes on distributions and sale of Fund shares1 |
1.52% | 3.08% | ||||||
Matthews Strategic Income FundInstitutional Class |
||||||||
Return before taxes |
2.64% | 4.90% | ||||||
Return after taxes on distributions1 |
1.06% | 3.38% | ||||||
Return after taxes on distributions and sale of Fund shares1 |
1.58% | 3.17% | ||||||
HSBC Asian Local Bond Index (reflects no deduction for fees, expenses or taxes) |
4.36% | 2.53% |
1 | After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. |
3 |
4 MATTHEWS ASIA STRATEGIC INCOME FUND