Look to Asia for Growth

Funds that focus on Asian markets excelled last year and could do well in the future

most investors, however, we’d recommend a look at the Matthews Asian Growth & Income fund (MACSX) for a couple of reasons. Growth and Income’s track record isn’t quite as dazzling as that of its Korea-based cousin, but with a portfolio that has holdings spread widely around the region, it offers investors good diversity and a mix that could cushion bumps. The fund tends to gravitate toward solid, conservative holdings in Hong Kong, where 31% of its assets are invested, and South Korea, which accounts for 14% of the fund’s money in equities. Management has also opted to hold convertible bonds, securities that pay dividend income and are less volatile than stocks. Asia Growth and Income has averaged a solid 24.5% annual total return over the past three years and logged a 17.2% gain in 2001.

Top Asian Mutual Funds

  Year-to-Date 1-Year Ann. 3-Year Ann. 5-Year Ann. Toll-Free Minimum
Fund Name (Ticker) Total Return* Total Return* Total Return* Total Return* Number Initial Investment
Matthews Korea (makox) 21.23% 75.29% 30.56 7.10 800-789-2742 $2,500
Matthews China (mCHFx) 3.39 5.93 27.47 N/A 800-789-2742 2,500
Matthews Asian Growth & Income (mACsx) 7.41 17.24 24.46 7.94 800-789-2742 2,500
Dreyfus Premier Greater China A (DPCAX) 7.08 3.44 22.60 N/A 888-338-8084 1,000
Matthews Pacific Tiger (MAPTX) 8.97 7.37 21.69 -1.31 800-789-2742 2,500
Liberty Newport Greater China A (NGCAX) 3.66 -9.71 19.82 N/A 800-322-2847 1,000
Fidelity Advisor Korea A (FAKAX) 22.22 44.38 18.82 N/A 800-522-7297 2,500
Fidelity Southeast Asia (FSEAX) 12.75 4.84 14.74 -3.58 800-544-8888 2,500
pacific Capital new Asia A (PNAAX) 7.61 5.70 14.72 -1.67 800-258-9232 1,000
Fidelity China Region (FHKCX) 1.62 -8.23 12.21 0.61 800-544-8888 2,500

*As of March 6, 2002
Source: Morningstar Inc.

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