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I having graphed these two funds over different time frames and they seem similar enough performance-wise to make me think I could get away owning just one of these Matthews funds.
Any thoughts? If just one fund, which would be your singular choice?
In my mind it all depends on your penchant for holding Japanese equities. MAPIX is there with +25% Japan stocks presumably for the dividends they generate in tune with the fund being called the Asian dividend fund. MASCX, on the other hand, eschews Japan for the most part and doesn't appear to miss them all that much. I am hard pressed to pound the table for one over the other outside of this. I bought and still hold MAPIX simply because at inception I thought they were getting Japanese stocks at bargain prices and I was looking for a little capital appreciation to go along with a hopefully rising dividend. I haven't really gotten either but I can't say that I am disappointed all that much.
If I had an over supply of investment funds I might own both just to give me a sense of being diversified even though I think that's mostly an illusion in my own mind. Both funds have just been solid, albeit unspectacular, offerings which suits me just fine.
I own both, but then I have a pretty big chunk in Matthews so am able to have meaningful positions in both. I do think they're different enough to consider owning both: MAPIX, like Mark said, is heavier in the "really developed" developed Asia-Pacific countries. Also, they don't always track together - MAPIX ran well ahead of MACSX for a couple of years, and this year, they've switched places.
I guess if I had to pick one, I'd lean toward MACSX 'cause I have some Japan exposure in other funds, and my bias is toward growth in less developed economies. So I'd suggest looking at what else you own to see how much Japan & Australia you have otherwise, decide if that's enough, and use that as one of your criteria if you want to pick just one of two really excellent funds.
Reply to @Mark: Thanks for comments. Lots of great points. Seem like a good way to get exposure to Japan. I often graph other funds against MAPIX when I am comparing and considering other Asian funds...I also reallocate profits from other Asian funds into MAPIX. This keeps me fully invested but with a lot less volatility.
I had both but now only have MAPIX. I think while the design of the portfolios are somewhat different, the external risk factors are effecting the portfolios in similar ways so the end result is looking pretty similar. Could they behave in a different way. Possibly but at this time, I did not feel like having both was providing sufficient diversification. For simplification of my own portfolio, I only hold MAPIX.
Thanks...different income approach compared MAPIX with similar results. Maybe they are different enough to keep both and monitor. I was invested in MSMLX, MATFX, and MJFOX but have since consolidated into these two "income" funds.
Thanks Investor...I recently did something similar with MSMLX and WAEMX...different funds but, with relatively equal results. I chose WAEMX as it was exhibiting smaller downward pullbacks compared to MSMLX over the last year though the opposite was true for the two funds during the 2009 pulback.
A technique I try to discipline myself to do is to gauge the more volatile fund (WAEMX) against the tamer MACSX or MAPIX...taking profits when it trend above (I'll sell 10% of WAEMX when it gets 10% above MAPIX) or dollar cost average in when it trend below (I'll usually use a 3 month chart as an indicator here).
Reply to @bee: It used to be Matthews Asia Convertible Securities (thus MACSX) & they kept that as a minor emphasis when they broadened the fund to "Growth and Income."
I still hold both MAPIX and MACSX. The input you're getting, bee, is along the lines of what I'd have to offer you. I bought into MACSX in 2003 when I first began investing. I find that it pleases me because it doesn't run hot and cold. It's just plain reliable, slow and steady--- without much in Japan. This year it seems to be outperforming MAPIX, which I like, and is, in its own way, also doing all the right things. My MAPIX position is a long-term IRA position which I took after selling-off all my TAVIX. ...TAVIX underperformed for a couple of years leading up to and through the Crash of '08-'09. MAPIX and MACSX remain different enough so that I still do hold both.
...Just now noticed that M* has downgraded the ranking on MAPIX re: the risk/reward profile. The profit/returns are now rated not HIGH as before, but merely "above average." So BOTH MAPIX and MACSX now carry the same "grades" from Morningstar. That is to say, LOW risk and Above Average returns.
My thinking is they both perform the same purpose, which is giving you Asian exposure with low(er) volatility. So, why hold both? I guess I don't care if one has more or less Japan or not. So, because of that, I only hold MACSX. I like the fact it has more options than just holding equities (MAPIX). I like the added flexibility MACSX gives the manager.
If I were to pair MACSX or MAPIX with another fund, I would hold one of these Matthews funds along with SFGIX. Same approach as MACSX but different market choices. I've wanted to do this, but sadly I can't buy SFGIX threw my TRP account.
Comments
If I had an over supply of investment funds I might own both just to give me a sense of being diversified even though I think that's mostly an illusion in my own mind. Both funds have just been solid, albeit unspectacular, offerings which suits me just fine.
I guess if I had to pick one, I'd lean toward MACSX 'cause I have some Japan exposure in other funds, and my bias is toward growth in less developed economies. So I'd suggest looking at what else you own to see how much Japan & Australia you have otherwise, decide if that's enough, and use that as one of your criteria if you want to pick just one of two really excellent funds.
Thanks for comments. Lots of great points. Seem like a good way to get exposure to Japan. I often graph other funds against MAPIX when I am comparing and considering other Asian funds...I also reallocate profits from other Asian funds into MAPIX. This keeps me fully invested but with a lot less volatility.
Any idea what M* refers to as "other"? MACSX portfolio is 16% of this stuff...seems like a lot of "other".
http://matthewsasia.com/our-funds/f-1/matthews-asian-growth-and-income-fund/composition.fs
It's convertibles & preferreds ...
Thanks...different income approach compared MAPIX with similar results. Maybe they are different enough to keep both and monitor. I was invested in MSMLX, MATFX, and MJFOX but have since consolidated into these two "income" funds.
Thanks Investor...I recently did something similar with MSMLX and WAEMX...different funds but, with relatively equal results. I chose WAEMX as it was exhibiting smaller downward pullbacks compared to MSMLX over the last year though the opposite was true for the two funds during the 2009 pulback.
A technique I try to discipline myself to do is to gauge the more volatile fund (WAEMX) against the tamer MACSX or MAPIX...taking profits when it trend above (I'll sell 10% of WAEMX when it gets 10% above MAPIX) or dollar cost average in when it trend below (I'll usually use a 3 month chart as an indicator here).
If I were to pair MACSX or MAPIX with another fund, I would hold one of these Matthews funds along with SFGIX. Same approach as MACSX but different market choices. I've wanted to do this, but sadly I can't buy SFGIX threw my TRP account.