Some Stocks Spoil a Decent Year-to-Date 2016 for MAPTX

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Performance evaluation of the Matthews Pacific Tiger Fund

The Matthews Pacific Tiger Fund Investor Class (MAPTX) has been an above-average performer across all periods. It stands fourth among the funds under review YTD (year-to-date) in 2016.

We’ve graphed the fund’s performance against the iShares MSCI All Country Asia ex Japan ETF (AAXJ) and the WisdomTree Asia Pacific ex-Japan ETF (AXJL). Let’s look at what has contributed to this performance YTD in 2016.

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Portfolio composition and contribution to returns

Consumer staples has been the most beneficial sector to MAPTX in 2016. Indofood CBP and President Chain Store have boosted the sector to the top spot in terms of positive contributions. However, Orion chipped away much of these positive contributions.

The telecommunications services sector was a major negative contributor. The common stocks and sponsored ADR (American depositary receipt) of Telekom Indonesia (TLK) helped the sector up. China Mobile (CHL) made a small negative contribution.

Genting Berhad and Yum! Brands (YUM), among others, helped the consumer discretionary sector to contribute positively to the fund. However, Cheil Worldwide capped gains from the sector due to its negative contribution.

Information technology stocks have been the biggest negative contributors to the fund. Lenovo Group (LNVGF) and Baidu (BIDU) have driven down returns from the sector.

Investor takeaway

MAPTX has been troubled by a few stock picks that have hindered its performance in 2016. However, its low portfolio turnover shows that its fund managers have faith in their stock picks, and the fund’s performance shows that their faith is not unfounded.

The fund has done well in the past, and it looks well positioned to navigate the challenging times of 2016. It could certainly be on your shortlist of funds providing exposure to Asian securities.

Let’s move on to the T. Rowe Price New Asia Fund (PRASX).

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