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MATTHEWS INTERNATIONAL FUNDS
Matthews Pacific Tiger Fund
Matthews Korea Fund
Matthews Dragon Century China Fund
Class A Shares
Supplement dated December 11, 1998
to Prospectus dated December 31, 1997
At a meeting held on October 8, 1998, shareholders of Matthews International
Funds approved new investment advisory agreements (the "New Agreements") with
Matthews International Capital Management, LLC (the "Advisor") to take effect
upon the purchase by Hambrecht 1980 Revocable Trust ("Hambrecht") of additional
ownership interest in the Advisor.
On December 4, 1998 Hambrecht made an additional investment in the Advisor (the
"Second Purchase"), which brought Hambrecht's total interest in the Advisor to
more than 25%. Consumation of this Second Purchase has resulted in the
termination of the existing investment advisory agreements with the Advisor
under the Investment Company Act of 1940, as amended, and the implementation of
the New Agreements with the Advisor. There are no changes in the fees payable by
each Fund to the Advisor. The New Agreements will continue in effect for a
period of two years and thereafter from year to year, only if such continuation
is specifically approved at least annually by the Fund's Board of Trustees.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE.
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MATTHEWS INTERNATIONAL FUNDS
Matthews Pacific Tiger Fund
Matthews Asian Convertible Securities Fund
Matthews Korea Fund
Matthews Dragon Century China Fund
Class I Shares
Supplement dated December 11, 1998
to Prospectus dated December 31, 1997
At a meeting held on October 8, 1998, shareholders of Matthews International
Funds approved new investment advisory agreements (the "New Agreements") with
Matthews International Capital Management, LLC (the "Advisor") to take effect
upon the purchase by Hambrecht 1980 Revocable Trust ("Hambrecht") of additional
ownership interest in the Advisor.
On December 4, 1998 Hambrecht made an additional investment in the Advisor (the
"Second Purchase"), which brought Hambrecht's total interest in the Advisor to
more than 25%. Consumation of this Second Purchase has resulted in the
termination of the existing investment advisory agreements with the Advisor
under the Investment Company Act of 1940, as amended, and the implementation of
the New Agreements with the Advisor. There are no changes in the fees payable by
each Fund to the Advisor. The New Agreements will continue in effect for a
period of two years and thereafter from year to year, only if such continuation
is specifically approved at least annually by the Fund's Board of Trustees.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE.
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