SAN FRANCISCO--(BUSINESS WIRE)--Matthews Asia has announced the expansion of its fixed income offerings today with the launch of the Matthews Asia Credit Opportunities Fund (MCRDX, Investor Class; MICPX, Institutional Class).
Co-Lead managed by Teresa Kong, CFA, and Satya Patel, the Matthews Asia Credit Opportunities Fund seeks total return over the long term. The Fund invests primarily in USD-denominated high yield bonds of Asian issuers.
The Matthews Asia Credit Opportunities Fund was launched to provide investors with a compelling fixed income solution that aims to offer both yield enhancement and diversification. Asia has a large and liquid corporate bond market and, as a relatively under-researched asset class, it provides opportunities to potentially benefit not only from attractive levels of yield, but also capital appreciation. Q&A about the Fund provides extensive details on Asia’s credit and the Fund’s investment approach.
Teresa Kong, CFA, Lead Manager comments, “Asia credit provides a compelling investment solution—historically, it has generated higher return with similar or even lower volatility than U.S., Euro and Latin American high yield bonds. This strategy will appeal to investors seeking a lower risk profile than our equity strategies, yet are comfortable with the risks associated with sub-investment grade debt.”
Satya Patel, Lead Manager added, “The Asian credit market offers a rich and diverse universe of strong companies trading at an attractive yield. With our emphasis on bottom-up, fundamental analysis, we can find attractive companies with relatively low risk across a variety of countries and industries.”
Robert Horrocks, PhD, CIO added, “Over the course of the past two decades, investors have benefited from a dedicated allocation to Asian equities within their overall investment portfolios. Over the next decade, we believe that investors will discover the benefits of implementing dedicated allocation to Asian fixed income within their global fixed income portfolios. The attractive risk-adjusted return profile and the income-generating potential of Asian credit complement existing fixed income exposures within investors’ portfolios. We are pleased to capitalize on Matthews Asia’s equity and fixed income expertise to provide this Fund to our global clients.”
About Matthews Asia
At Matthews Asia, we believe in the long-term growth of Asia. Since 1991, we have focused our efforts and expertise within the region, investing through a variety of market environments. As an independent, privately owned firm, Matthews Asia is the largest dedicated Asia-only investment specialist in the United States. With US$25.8 billion in assets under management as of March 31, 2016, Matthews Asia employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information please visit matthewsasia.com.
Disclosure
Diversification does not ensure a profit or protect against a loss. An investment in the Fund is subject to credit, interest rate and currency risks. Credit risk is the change in the value of debt securities reflecting the ability and willingness of issuers to make principal and interest payments. Interest rate risk is the possibility that a Fund’s yield will decline due to falling interest rates and the potential for bond prices to fall as interest rates rise. Currency risk is a decline in value of a foreign currency relative to the Fund’s base currency which reduces the value of the foreign currency and investments denominated in that currency. Where a Class of Shares is denominated in a currency other than the Fund’s base currency, additional currency risk may exist. The Fund may invest in the following: derivatives which can be volatile and affect Fund performance; high yield bonds (junk bonds) which can subject the Fund to substantial risk of loss; and structured investments which can change the risk or return, or replicate the risk or return of an underlying asset.
You 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.
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. In addition, single-country funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific 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 Funds are distributed in the United States by BNY Mellon
Distributors Inc.
Matthews Asia Funds are distributed in Latin
America by HMC Partners
©2016 Matthews International Capital Management, LLC
