Matthews Asia adds five more ETFs to its actively managed line-up

Matthews has launched five actively managed exchange traded funds, doubling the number of active ETFs it now offers.

Four of the ETFs are Asia-focused, while the fifth invests in global emerging markets, the announcement notes.

The Matthews Asia Dividend Active ETF invests in growth companies in Asia Pacific with lower volatility, regulatory filings show.

The Matthews India Active ETF seeks to invest in “innovative and entrepreneurial” Indian businesses across sectors and themes that the group believes are long-term structural growth drivers, according to the fund prospectus.

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The Matthews Japan Active ETF is a high-conviction fund that seeks to invest in Japanese companies that are “domestic, regional and global” leaders in their sectors, filings show.

The Matthews Pacific Tiger Active ETF is a core regional fund that invests in Asian growth companies, excluding Japan, according to its prospectus.

The Matthews Emerging Markets Sustainable Future Active ETF seeks to invest in companies that make a “positive environmental, social and economic impact” within global emerging markets, its prospectus shows.

The funds charge expense ratios of 79 basis points, prospectuses show.

“After a period of under-allocation, institutions and professional investors are increasingly seeking greater control by adding more customised emerging market exposures to their portfolios,” said Matthews Asia chief executive officer Cooper Abbott in the announcement.

The company’s active ETF suite aims to be “substantially similar” to its existing mutual fund line-up, Matthews Asia noted.

Matthews Asia launched its first three ETFs, the actively managed Asia Innovators Active, China Active and Emerging Markets Equity Active, in July 2022.

The manager converted the then $80mn Korea Fund into an active ETF a year later.

The company’s active ETF line-up has amassed a combined $280mn in assets as of August 31, according to data from Morningstar Direct.

Matthews Asia’s $9.2bn mutual fund line-up bled a collective $4.1bn for the year that ended that date.

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