MEMX | Matthews Emerging Markets ex China Active ETF

MEMX ISSUER

The Matthews Asia Funds issues the Matthews Emerging Markets ex China Active ETF, which, under normal circumstances, aims to invest at least 80% of its net assets in the common and preferred stocks of companies situated in emerging market countries excluding China. Operating under a comprehensive set of guidelines, Matthews defines a company's location based on various factors, including its organizational laws, revenue sources, and trading markets. The fund may also invest in developed countries or China, with certain limitations to ensure diversification. While focusing on companies poised for sustainable growth, Matthews considers fundamental criteria such as balance sheet strength, management quality, and corporate governance. Additionally, the fund incorporates environmental, social, and governance (ESG) factors into its investment process, employing exclusionary screens and third-party ESG data to assess companies' sustainability risks. Matthews actively engages with portfolio companies on sustainability and governance matters, aligning its investment strategy with principles outlined in the UN Global Compact and OECD Guidelines for Multinational Enterprises.

MEMX DIVIDEND

The Matthews Asia Funds introduces the Matthews Emerging Markets ex China Active ETF, designed to prioritize investments in emerging market nations excluding China, with at least 80% of its net assets dedicated to common and preferred stocks of such companies. Through a meticulous approach, Matthews delineates company location based on legal structures, revenue origins, and trading platforms. While allowing for limited investments in developed countries or China to uphold diversification, the fund concentrates on companies demonstrating potential for sustainable growth, evaluating factors like financial robustness, managerial proficiency, and corporate governance. Moreover, the fund integrates environmental, social, and governance (ESG) considerations into its investment framework, employing exclusionary screens and third-party ESG data to gauge sustainability risks. Matthews actively collaborates with portfolio firms on sustainability and governance issues, aligning its investment strategy with the principles espoused in the UN Global Compact and OECD Guidelines for Multinational Enterprises.

MEMX TRACKING

MEMX, the Matthews Emerging Markets ex China Active ETF, employs a strategy aimed at closely tracking the performance of its underlying index, the Matthews Emerging Markets ex China Index. This index consists of companies located in emerging market countries excluding China and is designed to capture the potential growth opportunities within these markets. To achieve its tracking goal, MEMX utilizes a combination of fundamental analysis and active management techniques. The fund's investment team selects and manages a diversified portfolio of common and preferred stocks, focusing on companies with sustainable growth potential and strong fundamental characteristics. Through diligent research and ongoing portfolio management, MEMX seeks to closely mirror the performance of its benchmark index over time, providing investors with exposure to emerging market equities while mitigating tracking error.

MEMX CORRELATION

MEMX, the Matthews Emerging Markets ex China Active ETF, aims to manage its correlation with its benchmark index, the Matthews Emerging Markets ex China Index, through a combination of strategic investment selection and risk management techniques. The fund's investment approach involves selecting companies located in emerging market countries excluding China, focusing on those with promising growth prospects and strong fundamentals. By employing a diversified portfolio of common and preferred stocks, MEMX seeks to mitigate the impact of individual stock volatility on its overall performance, thereby managing its correlation with the benchmark index. Additionally, MEMX's active management strategy allows for adjustments to the portfolio based on changing market conditions and emerging opportunities, further influencing its correlation with the index over time. Through rigorous risk assessment and portfolio optimization, MEMX aims to provide investors with exposure to emerging market equities while seeking to manage correlation risk relative to its benchmark.

MEMX SECTOR

MEMX, the Matthews Emerging Markets ex China Active ETF, adopts a sector-agnostic investment approach, allowing for flexibility in allocating assets across various industries within emerging market countries excluding China. While the fund may concentrate its investments in specific sectors from time to time, it does not limit itself to any particular industry. Instead, MEMX focuses on identifying companies with sustainable growth potential and strong fundamental characteristics, regardless of sector classification. By maintaining a diversified portfolio of common and preferred stocks, MEMX aims to capture opportunities across different sectors while managing sector-specific risks. This approach enables the fund to adapt to changing market dynamics and capitalize on emerging trends within emerging market economies. Through active management and careful selection of securities, MEMX seeks to optimize returns for investors while navigating sectoral shifts and market volatility effectively.

MEMX EXPOSURE

MEMX, the Matthews Emerging Markets ex China Active ETF, provides investors with exposure to the dynamic and rapidly evolving economies of emerging markets, excluding China. Through its strategic investment approach, MEMX seeks to capture the growth potential of companies located in these regions while mitigating risks associated with individual market fluctuations. By investing in a diversified portfolio of common and preferred stocks, MEMX offers exposure to a wide range of industries and sectors within emerging markets, providing investors with access to opportunities for capital appreciation. Additionally, MEMX's active management strategy allows for adjustments to the portfolio composition based on evolving market conditions, ensuring that investors can benefit from emerging trends and opportunities while managing risk effectively. With MEMX, investors can gain targeted exposure to emerging market equities, contributing to a well-rounded investment portfolio.