Matthews Pacific Tiger Active ETF (ASIA US) – Portfolio Construction Methodology

The investment process underpinning the actively managed Matthews Pacific Tiger Active ETF targets long-term capital appreciation by investing predominantly in Asia ex-Japan equities while retaining flexibility to own companies across the Asia Pacific region. The portfolio focuses on businesses demonstrating sustainable growth characteristics supported by bottom-up fundamental research on balance-sheet quality, cash-flow durability, governance, competitive positioning and management execution; depositary receipts and up to a modest allocation to debt securities may be used for efficiency. Day-to-day construction is driven by conviction-weighted positions in medium and large companies, with diversification by country and sector but tolerance for active tilts when research indicates. Liquidity and investability are addressed through exchange-listed instruments and prudent position sizing. Rebalancing is ongoing as valuations, fundamentals and risk metrics evolve; holdings are trimmed or sold when price targets are approached, thesis quality deteriorates, or capital can be redeployed to higher expected risk-adjusted return ideas.

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