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Thanks for that Kenster. Many countries around the world would love 5.5-6% growth, the US included. The Matthews commentary easily counteracts the hyper attitude one experiences on CNBC.
Keep calm and press on. Everything is under control. Its aim was to reassure and comfort. Then, at the very end: ZAP! We might just invest more in India and Indonesia if valuations get much lower... I'm not surprised. The thinking and approach elucidated in this letter is why I remain with Matthews. Fully 42.93% of my money is invested with Matthews.
I was in India a few years ago and while cities appear to be growing, the lack of infrastructure is apparent everywhere. Electrical power is not lacking and the socialists are in total control which limits new investments. Oil prices are hurting economy, so they need nuclear, but can't afford the subsequent rates required to finance. Imho, they need a dictator to run country for 10 years to get country on track. Everything I read on Bloomberg indicates that repeat of 1991 crisis is likely, rupee will keep crashing until elections May 2014. Hopefully, Matthews has taken this into consideration on stock picks there.
Reply to @equalizer: In most of the countries in Asia, the development is primarily in the cities. Once one ventures out into the countryside, it is pretty poor pickings. Indonesia has a problem being not only a large country but one of islands. Much like the Philippines, most of the attention is towards Jakarta. Most of the country has not advanced at all. The Philippines is starting to pay attention to other metro areas of the country but it is hit and miss as well.
Back to Matthews, even though they are concentrated in Asia only, the exposures to Indonesia and India are pretty small in most of their funds. Obviously their India fund has taken a beating, down just over 25% YTD. But looking at MPACX, the exposures to those two countries are 6.3% each. That is significant but not disastrous. MACSX has 3.9% in India and 3.5% in Indonesia. MAPIX has 6.8% in Indonesia and 1.2% in India. Some funds like MEASX which is new has a higher allotment towards India.
In the course of history, this may just be a hiccup. If one has a long term time frame, Matthews is a excellent way to invest in Asia. I cannot match Max's numbers regarding allocation but I have almost 20% of my portfolio with Matthews. I also believe in the old saying; " When the train leaves the station, one had better be on it."
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Back to Matthews, even though they are concentrated in Asia only, the exposures to Indonesia and India are pretty small in most of their funds. Obviously their India fund has taken a beating, down just over 25% YTD. But looking at MPACX, the exposures to those two countries are 6.3% each. That is significant but not disastrous. MACSX has 3.9% in India and 3.5% in Indonesia. MAPIX has 6.8% in Indonesia and 1.2% in India. Some funds like MEASX which is new has a higher allotment towards India.
In the course of history, this may just be a hiccup. If one has a long term time frame, Matthews is a excellent way to invest in Asia. I cannot match Max's numbers regarding allocation but I have almost 20% of my portfolio with Matthews. I also believe in the old saying; " When the train leaves the station, one had better be on it."
https://www.virtus.com/vSiteManager/Upload/Docs/2061_Special_Comm_VT_India_Currency.pdf