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Morningstar
July 14, 2008
Matthews Asian Growth and Income is showing off its merits

Read the article, Morningstar’s Take: Matthews Asian Growth and Income Fund
(PDF -85kb)



The Matthews Asian Growth and Income Fund re-opened to new investors on September 2, 2008. As of 9/30/08, the average annual total returns for the Matthews Asian Growth and Income Fund for the one-, five- ten-year and since inception (9/12/1994) periods were –18.18%, 13.26%, 17.70%, and 10.72%, respectively.

All performance quoted in this report is past performance and is no guarantee of future results. Unusually high returns may not be sustainable. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived. View the Fund’s most recent month-end performance »

Annual Operating Expenses1
Fiscal Year 2007 (ended 12/31/07)
Gross    
1.15%     

    Morningstar® Rating™ Fund
Fund Morningstar
Category
Overall 3
Year
5
Year
10
Year
Inception
Date
Matthews Asian Growth and Income (MACSX) Pacific/Asia ex-Japan startstartstartstartstart
out of 88 funds
startstartstartstart
out of 88 funds
startstartstartstart
out of 71 funds
startstartstartstartstart
out of 54 funds
9/12/94

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

You should consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds carefully before making an investment decision. A prospectus with this and other information about the Funds may be obtained by calling 800.789.ASIA or visiting www.matthewsasia.com. Please read the prospectus carefully before investing as it explains the risks associated with investing in international markets.

Investing in international 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 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.

As of 9/30/2008, HSBC Holdings HBC represented 3.0% of the Matthews Asian Growth and Income Fund assets.

The information contained in this article does not, in any way, constitute investment advice. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.

Matthews Asia Funds and PFPC Distributors, Inc. have no editorial control over the content, subject matter and timing of this article and are independent of Morningstar.

The Matthews Asia Funds are distributed by PFPC Distributors, Inc.

1 Ratio has been restated to reflect current management and administrative and shareholder servicing fees expected to be incurred by the funds and paid to the advisor. Matthews Asia Funds do not charge 12b-1 fees.