Matthews Asia launches UCITS version of $2.2bn Innovators fund

Matthews Asia announced today that it will make available its $2bn Matthews Asia Innovators Strategy in UCITS format through the launch of the Matthews Asia Innovative Growth Fund.

Managed by 20-year veteran Michael Oh, CFA, the fund seeks to invest in innovative, high-quality companies that can capitalize on structural growth trends and large addressable markets across Asia.  

Matthews Asia said it believes that the next generation of leading innovation-driven businesses will come from Asia because the region has the key ingredients for innovation-led economic growth: large addressable markets; substantial entrepreneurial talent; and sustainable sources of capital.  

The firm now finds five broad types of innovation driving long-term growth for business in Asia: business model innovation; product and services innovation; business strategy innovation; marketing innovation; and organisational design innovation.  

Using bottom-up fundamental research, the Fund will seek to invest in quality growth companies that demonstrate innovation in their businesses, whether through their product offerings, services, or disruptive business models and that allow them to build strong market leading positions.

The high-conviction all-cap portfolio is expected to consist of 30-50 stocks and will invest across the Asia (excluding-Japan) region.  

Matthews Asia has a long track record of investing in innovative companies in Asia. The Matthews Asia Innovators Strategy, also managed by Michael Oh, has been available to investors in the U.S. since 1999, and delivered a five-year annualized return of 27.45% versus a benchmark return of 17.17%. 

Michael Oh, CFA, lead manager: "We believe Asia represents a significant opportunity for investors seeking innovative companies that offer the potential for long-term capital appreciation. Asia as a region now has three key essentials for innovation: a large addressable market size, entrepreneurs and abundant human capital, and a vibrant venture capital industry."

"This means that there is now an entire ecosystem of innovative growth companies for investors to invest in as they turn their attention to Asia." 

Robert Horrocks, chief investment officer, added: "Matthews Asia has been investing in companies across Asia for nearly three decades and we understand what it takes for companies to be successful in this region."

"This strategy has been an early investor in some of today's most well-known Asian companies, and continues to seek to identify many smaller ‘game changing' and innovative companies. Our bottom-up fundamental approach is well-suited to identifying the most attractive innovative companies in the region." 

Jonathan Schuman, global head of sales and client service: "The strategy behind the Asia Innovative Growth Fund has been a highly successful approach for investing in growth companies in Asia since 1999, and it is an approach that we believe will enable us to identify attractive growth companies in an innovation-inspired world."

"The fund provides exposure to structural trends that have caught the attention of global investors including: health care; education; fintech; internet services; and online entertainment."

ROLLING 12 MONTH RETURNS (for the period ended 31 December 2020)