MCRDX — Matthews Asia Credit Opportunities Fund
Data updated: 2023-03-09
MCRDX — Matthews Asia Credit Opportunities Fund. Bond · $29.25M AUM · 1.07% expense ratio · -13.3% 1-yr return. Holdings, fees, performance and SEC filings.
MCRDX Fund Overview
MCRDX — Matthews Asia Credit Opportunities Fund is a US mutual fund managed by Matthews International Funds, categorised as Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Matthews International Funds
- Category: Bond
- Assets under management: $29.25M
- 1-year return: -13.3%
- Ticker: MCRDX
- SEC CIK: 0000923184
- SEC series ID: S000053714
- Share class ID: C000168876
MCRDX Investment Objective and Strategy
Matthews Asia Credit Opportunities Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Matthews International Funds.
Investment objective
Total return over the long term.
Principal investment strategy
Under normal market conditions, the Matthews Asia Credit Opportunities Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in debt and debt-related instruments issued by companies as well as governments, quasi-governmental entities, and supra-national institutions in Asia. Debt and debt-related instruments typically include bonds, debentures, bills, securitized instruments (which are vehicles backed by pools of assets such as loans or other receivables), notes, certificates of deposit and other bank obligations, bank loans, senior secured bank debt, convertible debt securities (including contingent capital financial instruments or CoCos), exchangeable bonds, credit-linked notes, inflation-linked instruments, repurchase agreements, payment-in-kind securities and derivative instruments with fixed income characteristics.
Asia consists of all countries and markets in Asia, such as China and Indonesia, in addition to the developed, emerging, and frontier countries and markets in the Asian region. A company or other issuer is considered to be located in a country or a region, and a security or instrument will deemed to be an Asian (or specific country) security or instrument, if it has substantial ties to that country or region. Matthews currently makes that determination based primarily on one or more of the following criteria: (A) with respect to a company or issuer, whether (i) it is organized under the laws of that country or any country in that region; (ii) it derives at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed, or has at least 50% of its assets located, within that country or region; (iii) it has the primary trading markets for its securities in that country or region; (iv) it has its principal place of business in or is otherwise headquartered in that country or region; or (v) it is a governmental entity or an agency, instrumentality or a political subdivision of that country or any country in that region; and (B) with respect to an instrument or issue, whether (i) its issuer is headquartered or organized in that country or region; (ii) it is issued to finance a project with significant assets or operations in that country or region; (iii) it is secured or backed by assets located in that country or region; (iv) it is a component or its issuer is included in a recognized securities index for the country or region; or (v) it is denominated in the currency of an Asian country and addresses at least one of the other above criteria.
The term located and the associated criteria listed above have been defined in such a way that Matthews has latitude in determining whether an issuer should be included within a region or country. The evaluation of credit risk of securities and issuers will be a key element of our analysis. Matthews uses a fundamentals-based approach with a focus on risk-adjusted return. Matthews seeks to assess whether an instruments return is consistent with its risks and its value relative to other investment opportunities. Matthews judges this by analyzing each issuer based on a variety of factors. These factors include, but are not limited to, the strength of the balance sheet, the quality and sustainability of cash flows, the incentives and alignment of management, the ability of a company to weather business cycles, and each issuers corporate and capital structure.
As a result, Matthews may look for investments such as oversold assets with intrinsic value, potential ratings upgrade candidates, event-driven opportunities, as well as relative value opportunities within a companys capital structure. A substantial portion of the Funds portfolio will be rated below investment grade or, if unrated, may be deemed by the Funds portfolio managers to be of comparable quality. Below investment grade securities are commonly referred to as high yield securities or junk bonds. Such investments should be considered speculative and may include distressed and defaulted securities. High yield bonds tend to provide high income in an effort to compensate investors for their higher risk of default, which is the failure to make required interest or principal payments. High yield bond issuers often include small or relatively new companies lacking the history or capital to merit investment-grade status, former blue chip companies downgraded because of financial problems, companies electing to borrow heavily to finance or avoid a takeover or buyout, and firms with heavy debt loads.
Convertible securities are often below investment grade and perform more like a stock when the underlying share price is high and more like a bond when the underlying share price is low. The Fund may invest a significant portion of its total net assets, 25% or more, in securities of issuers from a single country (including companies from that country, the government of that country, its agencies, instrumentalities and political subdivisions, and quasi-governmental entities and supra-national institutions issuing debt deemed to be of that country) and up to 25% of the Funds total net assets, may be invested in the securities issued by any one Asian government (including its agencies, instrumentalities and political subdivisions). The Fund may engage in derivative transactions for speculative purposes as well as to manage credit, interest rate and currency exposures of underlying instruments or market exposures.
The Fund may use a variety of derivative instruments, including for example, forward contracts, option contracts, futures and options on futures, and swaps (including interest rate swaps, credit default swaps, options or swaptions). The Fund may seek to take on or hedge credit, currency, and interest rate exposure by using derivatives, and, as a result, the Funds exposure to credit, currency, and interest rates could exceed the value of the Funds assets denominated in that currency and could exceed the value of the Funds net assets. The Fund has no stated maturity or duration target and the average effective maturity or duration target may change. Matthews has implemented risk management systems to monitor the Fund to reduce the risk of loss through overemphasis on a particular issuer, country, industry, currency, or interest rate regime.
MCRDX Performance
Total returns for MCRDX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -13.3% |
| 3 years (annualised) | -6.1% |
MCRDX Risk Information
Risk metrics for MCRDX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 17.4%
MCRDX Costs and Fees
MCRDX costs about $107 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.07%
- Gross expense ratio: 1.07%
- Portfolio turnover: 80%
- Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)
MCRDX Cashflows
Over the 12 months to 2022-12, Matthews Asia Credit Opportunities Fund had net inflows of $31.60M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2022-12 | $1.91M |
| 2022-11 | $739.50K |
| 2022-10 | $2.27M |
| 2022-09 | $6.71M |
| 2022-08 | $506.45K |
| 2022-07 | $1.11M |
MCRDX Debt Constituents
No individual debt constituents are reported in Matthews Asia Credit Opportunities Fund's latest SEC N-PORT filing.
MCRDX Prospectus and SEC Filings
Official Matthews Asia Credit Opportunities Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2022-04-28
- Prospectus (485BPOS) — filed 2021-04-30
- Prospectus (485BPOS) — filed 2020-05-07
- Portfolio holdings (N-PORT) — filed 2023-02-23
- Portfolio holdings (N-PORT) — filed 2022-11-28
- Portfolio holdings (N-PORT) — filed 2022-08-19
- Annual census (N-CEN) — filed 2023-03-09
- Annual census (N-CEN) — filed 2022-03-11
Related Funds
Other Bond funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.