(PUB) Investing 2016

5

October 2 016

Morningstar FundInvestor

Data through September 30, 2016 FINRA members: For internal or institutional use only. Matthews Asian Growth & Inc Investor

Ticker MACSX

Yield 1.9%

Total Assets $3,100 mil

Mstar Category Pacific/Asia ex-Japan Stk

Benchmark 1: MSCI AC Far East Ex Japan NR USD Benchmark 2: MSCI ACWI Ex USA NR USD Morningstar Analyst Rating 09-26-16 „

Investment Style Equity

Historical Profile Return Risk Rating Average Low QQQ Neutral

1 1 4 4 4 4 4 4

12.5 15.0 17.5 20.0 22.5

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

Performance

10.0

People Parent

Performance Quartile (within Category)

) ) & ) ( & & & ) & ( 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 09-16 18.68 19.78 11.49 15.77 18.04 15.07 18.61 18.91 18.01 16.03 17.56 23.38 21.54 -32.07 41.44 19.18 -10.62 26.90 4.83 -0.65 -4.50 10.51 -8.36 -14.95 18.50 -27.45 -0.27 4.16 4.88 1.07 -3.81 5.01 -2.65 -3.27 4.89 13.46 -0.01 8.02 3.09 10.06 -10.46 3.22 1.16 4.69 3.63 4.97 2.13 3.85 3.02 2.65 3.14 2.49 1.84 2.34 0.92 19.75 16.57 -34.20 37.59 16.16 -13.27 23.76 2.34 -2.49 -6.85 9.59 0.62 0.90 0.41 0.44 0.47 0.47 0.47 0.46 0.35 0.42 0.15 1.77 2.00 1.67 0.00 0.24 0.61 0.00 0.12 0.44 0.76 0.00 1.20 1.16 1.16 1.18 1.13 1.12 1.11 1.08 1.08 1.09 1.11 2.27 2.59 3.19 3.47 2.47 2.71 2.52 2.14 2.03 2.17 1.79 84 92 1 97 60 11 24 25 96 24 65

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 09-30-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

11.02 -1.35 10.37 4.99 26.90 4.41 -2.52 1.87 1.10 4.83 0.48 4.41 -1.88 -3.49 -0.65 2.00 1.43 -10.26 2.86 -4.50

.

28

28

25

18

20

17

17

15

17

16

2,021 2,273 1,085 2,545 3,922 2,344 3,206 3,277 3,055 2,053 2,043

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 06-30-16 Total Stocks: 53 Share change since 03-31-16

4.05 2.88 3.23

— —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

Country

% Assets

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

AIA Group Ltd

Finan Svcs Hong Kong

3.65 2.64 2.49 2.41 2.41 2.35 2.28 2.27 2.25 2.23 2.20 2.17 2.15 2.06 2.05 1.99 1.98 1.96 1.95 1.93

1 Yr 3 Yr 5 Yr

13.68

3 Mo 6 Mo

3.23 -7.39 -3.68 6.20 -4.47 -0.02 13.68 -4.43 4.42 1.96 -0.84 1.78 7.13 0.04 1.09 6.81 0.79 4.65

100 10,323 100 10,620 79 11,368 86 10,601 82 14,111 60 19,328 68 52,453

Jardine Matheson Holdings

Industrl

Hong Kong

Low QQ Low QQQ Low QQQQ

1.96 7.13 6.81 9.58

-Avg -Avg

Genting Malaysia Bhd

Cnsmr Cyc Malaysia

1 Yr

CLP Holdings Ltd

Utilities

Hong Kong

10 Yr Incept

Avg

3 Yr Avg 5 Yr Avg 10 Yr Avg

T SkyCity Entertainment Gro Singapore Telecommunicati

Cnsmr Cyc New Zealand Comm Svcs Singapore

China Mobile Ltd ADR

Comm Svcs China

Other Measures

Standard Index

Best Fit Index

15 Yr Avg 11.68 0.40 5.12

Ascendas Real Estate Inve

Real Est

Singapore

Alpha

1.8

2.0

KDDI Corp

Comm Svcs Japan

Beta

0.75

0.61

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Y Japan Tobacco Inc

Cnsmr Def Cnsmr Def

Japan

R-Squared

78

87

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

0.44 5.62 4.94

87 85 65

1.49 1.41 1.75

80 96

KT&G Corp

South Korea Hong Kong Hong Kong

Standard Deviation

10.79

Guangdong Investment Ltd.

Utilities Industrl

100

Mean

1.96 0.22

Y Techtronic Industries Co United Overseas Bank Ltd

Sharpe Ratio

Finan Svcs Singapore

Potential Capital Gain Exposure: 18% of assets

Singapore Technologies En

Industrl

Singapore

Morningstar's Take by William Samuel Rocco 09-26-16 Matthews Asian Growth & Income merits a Morningstar Analyst Rating of Silver because it has several appealing traits, including an attractive strategy that is quite distinctive as well as rather conservative. Co-lead managers Robert Horrocks and Kenneth Lowe invest individend-payingcommonstocks,preferred equities, and convertible and other bonds, whereas all of their peers focus exclusively or nearly exclusively on common stocks and many of them favor bolder, fast- growing equities. This fund’s geographic range is also relatively broad, because the managers regularly invest in the region’s developed markets--including Australia and Japan--while most of their counterparts do not. But the strategy is not tamer than the Pacific/Asia ex-Japan norm in every respect. The managers readily pile into areas and sectors that are packed with securities that meet their standards, so this fund normally has several sizable country and sector overweightings versus its average peer and its benchmark, the MSCI All Country Asia ex Japan Index. And the managers normally invest in roughly 50 to 60 names, whereas their typical

Taiwan Semiconductor Manu Technology Taiwan

Kangwon Land Inc

Cnsmr Cyc South Korea — South Korea Comm Svcs Indonesia Cnsmr Cyc United States

counterpart holds more than 100 stocks and the benchmark includes more than 600. This conservative but distinctive approach has served this fund well. Thanks to its reserved traits and the managers’ execution, the fund has consistently held up well in downturns, and it has been the least volatile member of its category by far--and much steadier than the index--over time. Although it has lagged in frothier rallies, it has posted solid results in others, so it has earned competitive total returns and superior risk- adjusted returns over the long run. Finally, Horrocks and Lowe have strong credentials as well as a great support team. The expense ratios are modest here, and Matthews has delivered good long-term results with all sorts of Asia offerings. As a result, this fund is a terrific Asia vehicle for the long run.

Lg Household&Healt Pfd PT Telekomunikasi Indones

Yum Brands Inc

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 47.9 Large 36.8 Mid 15.3 Small 0.0 Micro 0.0 Avg $mil: 14,788

Value Blend Growth

Large Mid Small

33.25 0.71 0.00 0.00 16.88 1.41 11.42 0.49 4.95 0.72 44.37 1.03 17.77 2.89 0.00 0.00 18.61 2.41 7.99 0.30 22.39 2.21 11.19 2.36 3.46 2.26 7.74 2.01

Value Measures

Rel Category

Price/Earnings 15.21

0.98 0.89 1.10 1.55 1.36 0.76 1.42 0.64 -0.12 0.12

Price/Book Price/Sales

1.71 1.79

Price/Cash Flow 10.63 Dividend Yield % 3.80

Growth Measures

% Rel Category

Long-Term Erngs 9.38

Regional Exposure % Stock UK/W. Europe 4 N. America 4 Japan 9 Latn America 0 Asia X Japan 83 Other 0

Book Value

8.37 3.27 -0.60

Sales

Address:

Four Embarcadero Center San Francisco CA 94111

Minimum Purchase: Min Auto Inv Plan:

$2500 Add: $100 IRA: $500

Cash Flow

$2500 Add: —

Historical Erngs 0.76

800-789-2742

Sales Fees:

No-load

Country Exposure Hong Kong 22 Singapore 16 South Korea 11

% Stock

Web Address:

www.matthewsasia.com/

Management Fee:

0.75% mx./0.60% mn., 0.14%A

Composition - Net Cash

Japan

9 7

Inception:

09-12-94

Actual Fees:

Mgt:0.66% Dist:0.00%

0.0 Bonds

0.0 9.9

Advisor:

Matthews International Cap Mgmt LLc

Expense Projections: 3Yr:$347 5Yr:$601 10Yr:$1329

Malaysia

Stocks 90.1 Other

Subadvisor:

None

Income Distribution:

Semi-Annually

Foreign (% of Stock)

95.9

A

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