International Mutual Funds: Matthews Asia Small Companies (MSMLX)
Matthews Asia Small Companies (MSMLX) is a quality mutual fund that felt the impact last year of the weakness in Chinese stocks. This fund invests in Asian markets (with the exception of Japan), and it has gained just 2.2% during the past 12 months.
Still, manager Lydia So is a fine manager who has positioned MSMLX in the top 1% of its Morningstar category during the past five years — even with last year’s hiccup, the fund has returned an annualized 25.3% in that time. Currently 27% of the fund is invested in China, with 15% in India and 12% devoted to Taiwan. In terms of sector weightings, industrial names are 18% of the portfolio while financials account for 17%.
MSMLX is classified as a midcap offering by Morningstar and has a reasonable asset base of $452 million, which gives the manager flexibility in positioning the fund. Expenses run 1.5%.
As of this writing, Bill Wysor did not hold a position in any of the aforementioned securities.