At Matthews, 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 is the largest dedicated Asia-only investment specialist in the United States. Our investment offerings provide a broad range of choices for building a global portfolio that includes exposure to one of the world’s fastest-growing regions. As of June 30 2017, Matthews Asia had US$30.2 billion in assets under management.
If investors are willing to look outside traditional benchmarks, we would argue that an allocation of traditional EM exposure, combined with the next generation of fast-growing Asian economies, can not only potentially enhance returns, but also provides the opportunity for greater diversification, less cyclicality, reasonable volatility and a longer runway of attractive growth.
Asia’s markets are off to a strong start this year. As of May 17, the MSCI Asia exJapan Index is up by 19.46% and Japan, though it has lagged behind, also has had a positive start to the year.
Many economists believe that “Total Factor Productivity” (TFP) may be the single biggest factor driving GDP growth. And TFP growth is notably high in Asia, influenced by supply-side reforms, market friendly policies, entrepreneurialism, technology and education.