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Matthews Asia Dividend Fund will close to new investors (both individual & institutional)

edited May 2013 in Fund Discussions
http://www.sec.gov/Archives/edgar/data/923184/000114420413032182/v346546_497.htm (individual)
http://www.sec.gov/Archives/edgar/data/923184/000114420413032181/v346547_497.htm (institutional)


497 1 v346546_497.htm 497



SUPPLEMENT DATED MAY 30, 2013

TO THE PROSPECTUS OF MATTHEWS ASIA FUNDS

DATED APRIL 30, 2013


For all existing and prospective shareholders of Matthews Asia Dividend Fund - Investor Class (MAPIX)


Effective at market close on June 14, 2013, the Matthews Asia Dividend Fund (the “Asia Dividend Fund”) will be closed to most new investors. The Asia Dividend Fund will continue to accept investments from existing shareholders. However, once a shareholder closes an account, additional investments in the Asia Dividend Fund will not be accepted from that shareholder.

The following section entitled “Who Can Invest in a Closed Fund?” is hereby added to page 74 of the prospectus immediately before the section entitled “Exchanging Shares”:

Who Can Invest in a Closed Fund?


The Asia Dividend Fund has limited sales of its shares after June 14, 2013 because Matthews and the Trustees believe continued unlimited sales may adversely affect the Asia Dividend Fund’s ability to achieve its investment objective.


If you were a shareholder of the Asia Dividend Fund when it closed and your account remains open, you may make additional investments in the Asia Dividend Fund, reinvest any dividends or capital gains distributions in that account or open additional accounts in the Asia Dividend Fund under the same primary Social Security Number. To establish a new account in the Asia Dividend Fund, you must provide written proof of your existing account (e.g., a copy of the account statement) to the Asia Dividend Fund. A request to open a new account in the Asia Dividend Fund will not be deemed to be “in good order” until you provide sufficient written proof of existing ownership of the Asia Dividend Fund to the Asia Dividend Fund or its representative.

In addition, the following categories of investors may continue to invest in the Asia Dividend Fund:

• Financial advisors and discretionary programs with existing clients in the Asia Dividend Fund
• Retirement plans or platforms with participants that currently invest in the Asia Dividend Fund
• Model-based programs with existing accounts in the Asia Dividend Fund
• Trustees, officers and employees of the Funds and Matthews, and their family members

Please note that some intermediaries may not be able to operationally accommodate additional investments in a closed Fund. The Board of Trustees reserves the right to close a Fund to new investments at any time (including further restrictions on one or more of the above categories of investors) or to re-open a closed Fund to all investors at any future date. If you have any questions about whether you are able to purchase shares of a closed Fund, please call 800-789-ASIA [2742].

Comments

  • And on June 30, Matthews will launch the Matthews Asia Strategic Dividend fund (MADIX). It will allocate positions strategically into twice the number of securities typically held in the now closed Matthews Asia Dividend fund (MAPIX).
  • The Matthews China Fund and the Matthews China Dividend Fund were fine, but my portfolio was still missing something. Thankfully, Matthews introduced their new Matthews China Small Company Fund, MCSMX, and now my portfolio is complete. While other mutual fund companies are overtly consumed with asset gathering and will slice and dice an investing space to death, the Matthews family is sharply focused on the needs of the investing public. Thank you Matthews !

    Kevin
  • edited May 2013
    Reply to @VintageFreak: Close one fund so you can channel new money to the new fund?
  • Reply to @kevindow: I'm waiting for Matthews China Extra Small Company Fund and Matthews China Itsy Bitsy Company Fund. Then I can retire and move to Tibet.
  • edited May 2013
    Reply to @Investor:

    Ditto Grandeur Peak Global Reach Fund. All cut from the same cloth.

    Mike_E
  • edited May 2013
    MACSX has nearly as much in AUM (in the investor class) as MAPIX; I wonder if it's next.

  • I was looking to add MAPIX to my portfolio so is it now too large to consider and rather look at a maybe more nimble Strategic Dividend (MADIX) ? I have been unable to find any information on the new fund can anyone guide me ? I get more new information from MFO making it a truly worthwhile site to use in my investment endeavors.
  • edited May 2013
    Reply to @VintageFreak: Help me with this. I can't find any record of such a fund. I do have Asia Focus and Emerging Asia just launched, but can't for the life of me find a Strategic Dividend.

    Where'd you track it down?

    David
  • Reply to @VintageFreak: I'm waiting for Matthews Chinese Food. I'll be hungry again for dividends after an hour.
  • Reply to @sligo: No, I don't think it's too big ... it's 2/3 large caps, and it has a geographically large investment universe. All the new Matthews funds are coming it at really high expense ratios; I seriously doubt any of them are going to be as good as the old standbys, at least for a few years. Open a MAPIX account while you still can.
  • Reply to @David_Snowball: David, I think it was a tongue-in-cheek comment by VintageFreak.
  • Reply to @rmt: Whew! Thanks. I'm okay with "clueless" as a description, but "sloppy researcher" sort of panicked me. David
  • Reply to @David_Snowball: I'm so sorry. Anyone else Sir, I would be laughing my butt off. It was as rmt said, a joke. Apologies.
  • Reply to @sligo: Err, sligo. There is no MADIX. Please see above.
  • Reply to @AndyJ: Thanks, good point about ER's
  • Reply to @scott: ROFL. Classic!
  • Reply to @VintageFreak: Bit slow on the uptake, and didn't go through the whole thread - thanks
  • Reply to @VintageFreak: Nah. My bad. I'm in the midst of my monthly writingfest and I only intermittently connect with reality from here.

    Off I go!

    David
  • Reply to @sligo: Alternatively you could consider going with the old standby MACSX.
  • Reply to @VintageFreak: I did not even attempt to research as I did not care if MADIX exists or not... So, I took you in your word. I am glad I did not waste my time beyond a quick reply:)
  • Reply to @GregFromBoston: Yup, agree MACSX is a worthy standby also.
  • Reply to @GregFromBoston: or SFGIX.
  • Reply to @Investor: Yes, I smelled that, too.
  • edited June 2013
    Reply to @sligo: I worry that Matthews is doing things now the way TRP and a million others are doing it: create a million different specialty funds and present them in such a way that they all fill a bit of a niche in anyone's portfolio... China Div, Laos Div, Thai Birds Nest Div....... I own MACSX. The very first fund I ever invested in, in '03. And since '09 I've owned MAPIX. Lately, I bought SFGIX, with former Matthews guy, Andrew Foster, at the helm. .....SFGIX has an expressed investment world which goes out beyond Asia and Matthews has chosen Asia ONLY. Remember: Asia is the future. But don't ignore the rest of the world.
  • I received a email from Matthews regarding the closing of MAPIX. They mentioned that they have a Luxembourg based MAPIX that will still be open. I still have my holding though.

    They are starting two new funds, the Asia Focus Fund and the Emerging Asia Fund. The latter seems to be a offshoot of MAPTX. I'm not sure why the duplication other than perhaps their assets are getting too big? I haven't researched it out yet but I don't plan any moves.
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