A New Approach to Investing in Emerging Markets

Uncovering investment opportunities with the potential to generate long-term outperformance.

For over a decade, emerging markets have been considered a core diversifier for investors seeking long-term growth. Today, Asia dominates the emerging markets (EM) in terms of economic growth, consumption, and trade. As a result, deep experience investing in Asia — and especially China — is critical to investing in emerging markets.

Asia Is the Primary Driver of EM Economies

Asia already accounts for over half of GDP among emerging market economies. Asia, and China in particular, will continue to be key economic contributors in the future.

Asia Plays an Outsized Role in Emerging Markets

Indices have evolved as EM economies have matured, with companies domiciled in Asia now representing 75% of the MSCI Emerging Market index. Asia also represents over 80% of the investible emerging market universe.

Asia Forms the Economic Hub of Emerging Markets

Throughout Asia, policy makers have strengthened trading and investment connections. Emerging and developed countries alike have benefited from these policies; China, India, Japan and Korea are now substantial trading partners throughout global emerging markets. At the same time, China’s import program as well as its outward infrastructure investments have been expanding to help sustain long-term growth.

With Asia serving as the engine of growth in emerging markets, the need to optimize investments in Asia has never been more important. Matthews Asia brings 29 years of investment expertise to help provide real insights and uncover investment opportunities that have the potential to generate long-term out-performance.

Our experience has shown that the characteristics of world-class businesses are consistent regardless of geography. An active, bottom-up investment approach has the potential to identify high-quality, fast growing companies.

At Matthews Asia, we offer an active approach designed to optimize an emerging markets allocation.

Emerging Markets Research & Insights

Explore our in-depth coverage of innovation and investment opportunities in Emerging Markets.

Investment Team Spotlight

Our portfolio managers offer deep experience in emerging markets and are committed to uncovering investment opportunities with the potential to generate long-term out-performance.

John Paul Lech

Portfolio Manager

We concentrate our efforts on investing in companies with the potential to provide attractive, sustainable growth and who can ultimately translate growth and innovation into positive cash generation.
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Disclosure and Notes

FOR INSTITUTIONAL USE ONLY – NOT FOR RETAIL DISTRIBUTION

The views and information discussed in this report are as of the date of publication, are subject to change and may not reflect current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. Investment involves risk. Past performance is no guarantee of future results. Investing in international and emerging markets may involve additional risks, such as s ocial and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. The information contained herein has been derived from several sources believed to be r eliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information. This report is for informational purposes and is not a solicitation, offer or recommendation of any security, investment management service or advisory service.

Matthews Asia is the brand for Matthews International Capital Management, LLC and its direct and indirect subsidiaries.