<PAGE> PAGE 1
000 A000000 02/28/99
000 C000000 0000923184
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 MATTHEWS INTERNATIONAL FUNDS
001 B000000 811-08510
001 C000000 8007892742
002 A000000 655 MONTGOMERY STREET, SUITE 1438
002 B000000 SAN FRANCISCO
002 C000000 CA
002 D010000 94111
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 5
007 C010100 1
007 C020100 MATTHEWS PACIFIC TIGER FUND
007 C030100 N
007 C010200 2
007 C020200 MATTHEWS ASIAN GROWTH & INCOME FUND
007 C030200 N
007 C010300 3
007 C020300 MATTHEWS KOREA FUND
007 C030300 N
007 C010400 4
007 C020400 MATTHEWS DRAGON CENTURY CHINA FUND
007 C030400 N
007 C010500 5
007 C020500 MATTHEWS JAPAN FUND
007 C030500 N
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
010 A00AA01 FIRST DATA INVESTOR SERVICES GROUP, INC.
010 B00AA01 84-1761
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02109
011 A00AA01 FIRST DATA DISTRIBUTORS, INC
011 B00AA01 8-45467
011 C01AA01 KING OF PRUSSIA
011 C02AA01 PA
<PAGE> PAGE 2
011 C03AA01 19406
012 A00AA01 FIRST DATA INVESTOR SERVICES GROUP, INC.
012 B00AA01 84-1761
012 C01AA01 KING OF PRUSSIA
012 C02AA01 PA
012 C03AA01 19406
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 SAN FRANCISCO
013 B02AA01 CA
013 B03AA01 94104
015 A00AA01 THE BANK OF NEW YORK
015 B00AA01 C
015 C01AA01 NEW YORK
015 C02AA01 NY
015 C03AA01 10286
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 JAMES CAPEL INCORPORATED
020 B000001 52-1344824
020 C000001 119
020 A000002 TIEDEMANN INTERNATIONAL RESEARCH
020 C000002 70
020 A000003 FANO SECURITIES
020 C000003 67
020 A000004 BARING SECURITIES
020 B000004 04-2455153
020 C000004 27
020 A000005 CROSBY SECURITIES
020 C000005 27
020 A000006 ABN CAPITAL MARKETS
020 C000006 26
020 A000007 HG ASIA
020 C000007 26
020 A000008 SMITH BARNEY
020 C000008 23
020 A000009 MONROE FINANCIAL CORP
020 C000009 12
020 A000010 SF SECURITIES
020 C000010 11
021 000000 458
022 A000001 MORGAN STANLEY & CO. INC.
022 B000001 13-2655998
022 C000001 2603
022 D000001 916
022 A000002 JAMES CAPEL
022 C000002 500
022 D000002 0
022 A000003 GOLDMAN SACHS
022 B000003 13-5108880
<PAGE> PAGE 3
022 C000003 186
022 D000003 0
022 A000004 J.P. MORGAN
022 C000004 61
022 D000004 0
022 A000005 ABN CAPITAL MARKETS
022 C000005 23
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 3372
023 D000000 916
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
034 00AA00 N
035 00AA00 0
036 B00AA00 0
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 1.000
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
<PAGE> PAGE 4
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 Y
053 B00AA00 Y
053 C00AA00 N
054 A00AA00 Y
054 B00AA00 N
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 Y
070 B02AA00 N
070 C01AA00 Y
070 C02AA00 N
070 D01AA00 Y
070 D02AA00 N
070 E01AA00 Y
070 E02AA00 N
070 F01AA00 Y
070 F02AA00 N
<PAGE> PAGE 5
070 G01AA00 Y
070 G02AA00 N
070 H01AA00 Y
070 H02AA00 N
070 I01AA00 Y
070 I02AA00 N
070 J01AA00 Y
070 J02AA00 N
070 K01AA00 Y
070 K02AA00 Y
070 L01AA00 Y
070 L02AA00 Y
070 M01AA00 Y
070 M02AA00 Y
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 N
070 P02AA00 N
070 Q01AA00 Y
070 Q02AA00 N
070 R01AA00 Y
070 R02AA00 N
077 A000000 Y
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 CHUBB GROUP OF INSURANCE COMPANIES
080 C00AA00 600
081 A00AA00 N
081 B00AA00 0
082 A00AA00 Y
082 B00AA00 10
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
<PAGE> PAGE 6
086 F010000 0
086 F020000 0
008 A000101 MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT
008 B000101 A
008 C000101 801-39520
008 D010101 SAN FRANCISCO
008 D020101 CA
008 D030101 94111
028 A010100 1101
028 A020100 0
028 A030100 0
028 A040100 2558
028 B010100 3914
028 B020100 0
028 B030100 0
028 B040100 3914
028 C010100 8059
028 C020100 0
028 C030100 0
028 C040100 3113
028 D010100 3794
028 D020100 0
028 D030100 0
028 D040100 7428
028 E010100 5513
028 E020100 0
028 E030100 0
028 E040100 5047
028 F010100 2860
028 F020100 0
028 F030100 0
028 F040100 7560
028 G010100 25241
028 G020100 0
028 G030100 0
028 G040100 29620
028 H000100 91
029 000100 Y
030 A000100 4
030 B000100 4.95
030 C000100 0.00
031 A000100 0
031 B000100 0
032 000100 4
033 000100 0
037 000100 Y
038 000100 36
039 000100 N
040 000100 Y
041 000100 Y
042 A000100 0
<PAGE> PAGE 7
042 B000100 0
042 C000100 0
042 D000100 100
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 1
044 000100 0
055 A000100 N
055 B000100 N
056 000100 Y
057 000100 N
058 A000100 N
059 000100 Y
060 A000100 Y
060 B000100 Y
061 000100 2500
062 A000100 N
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 0.0
066 A000100 Y
066 C000100 Y
067 000100 N
068 A000100 N
068 B000100 Y
069 000100 N
071 A000100 17668
071 B000100 22171
071 C000100 43721
071 D000100 40
072 A000100 6
072 B000100 28
072 C000100 183
<PAGE> PAGE 8
072 D000100 0
072 E000100 0
072 F000100 225
072 G000100 31
072 H000100 0
072 I000100 34
072 J000100 53
072 K000100 0
072 L000100 6
072 M000100 2
072 N000100 24
072 O000100 0
072 P000100 0
072 Q000100 33
072 R000100 13
072 S000100 5
072 T000100 0
072 U000100 3
072 V000100 0
072 W000100 15
072 X000100 444
072 Y000100 17
072 Z000100 -216
072AA000100 0
072BB000100 7806
072CC010100 25247
072CC020100 0
072DD010100 0
072DD020100 0
072EE000100 0
073 A010100 0.0000
073 A020100 0.0100
073 B000100 0.0600
073 C000100 0.0000
074 A000100 521
074 B000100 0
074 C000100 0
074 D000100 117
074 E000100 0
074 F000100 43810
074 G000100 0
074 H000100 0
074 I000100 20
074 J000100 0
074 K000100 0
074 L000100 433
074 M000100 10
074 N000100 44911
074 O000100 345
074 P000100 33
074 Q000100 0
<PAGE> PAGE 9
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 222
074 S000100 0
074 T000100 44311
074 U010100 6910
074 U020100 28
074 V010100 6.39
074 V020100 6.39
074 W000100 0.0000
074 X000100 1183
074 Y000100 0
075 A000100 0
075 B000100 44390
076 000100 0.00
008 A000201 MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT
008 B000201 A
008 C000201 801-39520
008 D010201 SAN FRANCISCO
008 D020201 CA
008 D030201 94111
028 A010200 21
028 A020200 0
028 A030200 0
028 A040200 346
028 B010200 120
028 B020200 0
028 B030200 0
028 B040200 47
028 C010200 380
028 C020200 0
028 C030200 0
028 C040200 124
028 D010200 328
028 D020200 108
028 D030200 0
028 D040200 200
028 E010200 1357
028 E020200 2
028 E030200 0
028 E040200 257
028 F010200 498
028 F020200 0
028 F030200 0
028 F040200 238
028 G010200 2704
028 G020200 110
028 G030200 0
028 G040200 1212
028 H000200 0
<PAGE> PAGE 10
029 000200 N
030 A000200 0
030 B000200 0.00
030 C000200 0.00
031 A000200 0
031 B000200 0
032 000200 0
033 000200 0
037 000200 Y
038 000200 1
039 000200 N
040 000200 N
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 0
044 000200 0
055 A000200 N
055 B000200 N
056 000200 Y
057 000200 N
058 A000200 N
059 000200 Y
060 A000200 Y
060 B000200 Y
061 000200 2500
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 77.5
062 R000200 17.9
063 A000200 0
063 B000200 4.1
<PAGE> PAGE 11
064 A000200 N
066 A000200 Y
066 E000200 Y
067 000200 N
068 A000200 N
068 B000200 Y
069 000200 N
071 A000200 2513
071 B000200 962
071 C000200 4400
071 D000200 22
072 A000200 6
072 B000200 124
072 C000200 16
072 D000200 0
072 E000200 0
072 F000200 22
072 G000200 1
072 H000200 0
072 I000200 6
072 J000200 6
072 K000200 0
072 L000200 1
072 M000200 1
072 N000200 8
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 2
072 S000200 0
072 T000200 0
072 U000200 3
072 V000200 0
072 W000200 0
072 X000200 50
072 Y000200 7
072 Z000200 97
072AA000200 0
072BB000200 238
072CC010200 532
072CC020200 0
072DD010200 138
072DD020200 0
072EE000200 0
073 A010200 0.2170
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 249
074 B000200 0
074 C000200 0
<PAGE> PAGE 12
074 D000200 4588
074 E000200 0
074 F000200 1060
074 G000200 0
074 H000200 0
074 I000200 5
074 J000200 0
074 K000200 0
074 L000200 82
074 M000200 4
074 N000200 5988
074 O000200 0
074 P000200 15
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 55
074 S000200 0
074 T000200 5918
074 U010200 844
074 U020200 0
074 V010200 7.01
074 V020200 0.00
074 W000200 0.0000
074 X000200 174
074 Y000200 0
075 A000200 0
075 B000200 4633
076 000200 0.00
008 A000301 MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT
008 B000301 A
008 C000301 801-39520
008 D010301 SAN FRANCISCO
008 D020301 CA
008 D030301 94111
008 A000302 DELETE
014 A000301 DAEWOO SECURITIES
014 B000301 8-45034
014 A000302 DAEYU SECURITIES CO.
014 B000302 8-0000
028 A010300 6425
028 A020300 0
028 A030300 0
028 A040300 5820
028 B010300 10001
028 B020300 0
028 B030300 0
028 B040300 9476
028 C010300 11415
028 C020300 0
<PAGE> PAGE 13
028 C030300 0
028 C040300 10930
028 D010300 11453
028 D020300 0
028 D030300 0
028 D040300 16226
028 E010300 22517
028 E020300 0
028 E030300 0
028 E040300 27167
028 F010300 5481
028 F020300 0
028 F030300 0
028 F040300 7476
028 G010300 67292
028 G020300 0
028 G030300 0
028 G040300 77095
028 H000300 154
029 000300 Y
030 A000300 7
030 B000300 4.95
030 C000300 0.00
031 A000300 0
031 B000300 0
032 000300 7
033 000300 0
037 000300 Y
038 000300 480
039 000300 N
040 000300 Y
041 000300 Y
042 A000300 0
042 B000300 0
042 C000300 0
042 D000300 100
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 0
043 000300 8
044 000300 0
055 A000300 N
055 B000300 N
056 000300 Y
057 000300 N
058 A000300 N
059 000300 Y
060 A000300 N
060 B000300 N
061 000300 2500
<PAGE> PAGE 14
062 A000300 N
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 0.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 0
063 B000300 0.0
066 A000300 Y
066 C000300 Y
067 000300 N
068 A000300 N
068 B000300 Y
069 000300 N
071 A000300 28085
071 B000300 41826
071 C000300 103850
071 D000300 27
072 A000300 6
072 B000300 35
072 C000300 38
072 D000300 0
072 E000300 0
072 F000300 534
072 G000300 68
072 H000300 0
072 I000300 85
072 J000300 122
072 K000300 0
072 L000300 13
072 M000300 5
072 N000300 31
072 O000300 0
072 P000300 0
072 Q000300 68
072 R000300 29
072 S000300 13
072 T000300 8
072 U000300 2
<PAGE> PAGE 15
072 V000300 0
072 W000300 4
072 X000300 982
072 Y000300 2
072 Z000300 -907
072AA000300 7003
072BB000300 0
072CC010300 53510
072CC020300 0
072DD010300 0
072DD020300 0
072EE000300 0
073 A010300 0.0000
073 A020300 0.0000
073 B000300 0.0000
073 C000300 0.0000
074 A000300 591
074 B000300 0
074 C000300 0
074 D000300 1009
074 E000300 0
074 F000300 118025
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
074 L000300 1282
074 M000300 122
074 N000300 121029
074 O000300 0
074 P000300 97
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 398
074 S000300 0
074 T000300 120534
074 U010300 30357
074 U020300 1938
074 V010300 3.73
074 V020300 3.71
074 W000300 0.0000
074 X000300 2082
074 Y000300 0
075 A000300 0
075 B000300 104830
076 000300 0.00
008 A000401 MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT
008 B000401 A
<PAGE> PAGE 16
008 C000401 801-39520
008 D010401 SAN FRANCISCO
008 D020401 CA
008 D030401 94111
028 A010400 167
028 A020400 0
028 A030400 0
028 A040400 44
028 B010400 13
028 B020400 0
028 B030400 0
028 B040400 40
028 C010400 34
028 C020400 0
028 C030400 0
028 C040400 44
028 D010400 55
028 D020400 34
028 D030400 0
028 D040400 146
028 E010400 236
028 E020400 0
028 E030400 0
028 E040400 85
028 F010400 57
028 F020400 0
028 F030400 0
028 F040400 77
028 G010400 562
028 G020400 34
028 G030400 0
028 G040400 436
028 H000400 0
029 000400 N
030 A000400 0
030 B000400 0.00
030 C000400 0.00
031 A000400 0
031 B000400 0
032 000400 0
033 000400 0
037 000400 Y
038 000400 0
039 000400 N
040 000400 Y
041 000400 N
042 A000400 0
042 B000400 0
042 C000400 0
042 D000400 0
042 E000400 0
<PAGE> PAGE 17
042 F000400 0
042 G000400 0
042 H000400 0
043 000400 0
044 000400 0
055 A000400 N
055 B000400 N
056 000400 N
057 000400 N
058 A000400 N
059 000400 Y
060 A000400 Y
060 B000400 Y
061 000400 2500
062 A000400 N
062 B000400 0.0
062 C000400 0.0
062 D000400 0.0
062 E000400 0.0
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 0.0
062 M000400 0.0
062 N000400 0.0
062 O000400 0.0
062 P000400 0.0
062 Q000400 0.0
062 R000400 0.0
063 A000400 0
063 B000400 0.0
066 A000400 Y
066 C000400 Y
067 000400 N
068 A000400 N
068 B000400 Y
069 000400 N
071 A000400 755
071 B000400 658
071 C000400 2128
071 D000400 31
072 A000400 6
072 B000400 2
072 C000400 10
072 D000400 0
072 E000400 0
072 F000400 11
072 G000400 0
<PAGE> PAGE 18
072 H000400 0
072 I000400 4
072 J000400 3
072 K000400 0
072 L000400 0
072 M000400 1
072 N000400 7
072 O000400 0
072 P000400 0
072 Q000400 0
072 R000400 0
072 S000400 0
072 T000400 0
072 U000400 2
072 V000400 0
072 W000400 0
072 X000400 28
072 Y000400 5
072 Z000400 -11
072AA000400 0
072BB000400 459
072CC010400 768
072CC020400 0
072DD010400 36
072DD020400 0
072EE000400 0
073 A010400 0.0976
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 113
074 B000400 0
074 C000400 0
074 D000400 0
074 E000400 0
074 F000400 1937
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 0
074 K000400 0
074 L000400 1
074 M000400 15
074 N000400 2066
074 O000400 0
074 P000400 46
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 22
<PAGE> PAGE 19
074 S000400 0
074 T000400 1998
074 U010400 394
074 U020400 0
074 V010400 5.07
074 V020400 0.00
074 W000400 0.0000
074 X000400 88
074 Y000400 0
075 A000400 0
075 B000400 2172
076 000400 0.00
008 A000501 MATTHEWS INTERNATIONAL CAPITAL MANAGEMENT
008 B000501 A
008 C000501 801-39520
008 D010501 SAN FRANCISCO
008 D020501 CA
008 D030501 94111
028 A010500 0
028 A020500 0
028 A030500 0
028 A040500 0
028 B010500 0
028 B020500 0
028 B030500 0
028 B040500 0
028 C010500 0
028 C020500 0
028 C030500 0
028 C040500 0
028 D010500 0
028 D020500 0
028 D030500 0
028 D040500 0
028 E010500 254
028 E020500 0
028 E030500 0
028 E040500 0
028 F010500 0
028 F020500 0
028 F030500 0
028 F040500 0
028 G010500 254
028 G020500 0
028 G030500 0
028 G040500 0
028 H000500 0
029 000500 N
030 A000500 0
030 B000500 0.00
030 C000500 0.00
<PAGE> PAGE 20
031 A000500 0
031 B000500 0
032 000500 0
033 000500 0
037 000500 N
038 000500 0
042 A000500 0
042 B000500 0
042 C000500 0
042 D000500 0
042 E000500 0
042 F000500 0
042 G000500 0
042 H000500 0
043 000500 0
044 000500 0
055 A000500 N
055 B000500 N
056 000500 N
057 000500 N
058 A000500 N
059 000500 Y
060 A000500 N
060 B000500 N
061 000500 2500
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
063 A000500 0
063 B000500 0.0
066 A000500 Y
066 C000500 Y
067 000500 N
068 A000500 N
068 B000500 Y
069 000500 N
<PAGE> PAGE 21
071 A000500 347
071 B000500 98
071 C000500 240
071 D000500 41
072 A000500 2
072 B000500 0
072 C000500 0
072 D000500 0
072 E000500 0
072 F000500 0
072 G000500 2
072 H000500 0
072 I000500 0
072 J000500 1
072 K000500 0
072 L000500 0
072 M000500 0
072 N000500 0
072 O000500 0
072 P000500 0
072 Q000500 6
072 R000500 0
072 S000500 0
072 T000500 0
072 U000500 4
072 V000500 0
072 W000500 0
072 X000500 13
072 Y000500 13
072 Z000500 0
072AA000500 5
072BB000500 0
072CC010500 28
072CC020500 0
072DD010500 0
072DD020500 0
072EE000500 0
073 A010500 0.0000
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 8
074 B000500 0
074 C000500 0
074 D000500 0
074 E000500 0
074 F000500 276
074 G000500 0
074 H000500 0
074 I000500 0
074 J000500 23
<PAGE> PAGE 22
074 K000500 0
074 L000500 0
074 M000500 20
074 N000500 327
074 O000500 25
074 P000500 11
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 4
074 S000500 0
074 T000500 287
074 U010500 25
074 U020500 0
074 V010500 11.31
074 V020500 0.00
074 W000500 0.0000
074 X000500 4
074 Y000500 0
075 A000500 0
075 B000500 274
076 000500 0.00
SIGNATURE MICHELLE WHALEN
TITLE SR. ADMINISTRATOR
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 4
<NAME> MATTHEWS DRAGON CENTURY CHINA FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-1-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 3055105
<INVESTMENTS-AT-VALUE> 1936637
<RECEIVABLES> 791
<ASSETS-OTHER> 2666
<OTHER-ITEMS-ASSETS> 126210
<TOTAL-ASSETS> 2066304
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68257
<TOTAL-LIABILITIES> 68257
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3846659
<SHARES-COMMON-STOCK> 393837
<SHARES-COMMON-PRIOR> 361577
<ACCUMULATED-NII-CURRENT> (8532)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (721612)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1118468)
<NET-ASSETS> 1998047
<DIVIDEND-INCOME> 9901
<INTEREST-INCOME> 1855
<OTHER-INCOME> 0
<EXPENSES-NET> 22579
<NET-INVESTMENT-INCOME> (10823)
<REALIZED-GAINS-CURRENT> (459513)
<APPREC-INCREASE-CURRENT> 768080
<NET-CHANGE-FROM-OPS> 297744
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 35545
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 100491
<NUMBER-OF-SHARES-REDEEMED> 73705
<SHARES-REINVESTED> 5474
<NET-CHANGE-IN-ASSETS> 422053
<ACCUMULATED-NII-PRIOR> 37836
<ACCUMULATED-GAINS-PRIOR> (262099)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11289
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 27275
<AVERAGE-NET-ASSETS> 2276583
<PER-SHARE-NAV-BEGIN> 4.36
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 0.84
<PER-SHARE-DIVIDEND> (0.10)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.07
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 5
<NAME> MATTHEWS JAPAN FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 2-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> DEC-31-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 253488
<INVESTMENTS-AT-VALUE> 276368
<RECEIVABLES> 23449
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 26882
<TOTAL-ASSETS> 326699
<PAYABLE-FOR-SECURITIES> 24799
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15384
<TOTAL-LIABILITIES> 40183
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 253500
<SHARES-COMMON-STOCK> 25337
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (157)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4784
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28389
<NET-ASSETS> 286516
<DIVIDEND-INCOME> 94
<INTEREST-INCOME> 426
<OTHER-INCOME> 0
<EXPENSES-NET> 677
<NET-INVESTMENT-INCOME> (157)
<REALIZED-GAINS-CURRENT> 4784
<APPREC-INCREASE-CURRENT> 28389
<NET-CHANGE-FROM-OPS> 33017
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25337
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 286516
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 338
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13480
<AVERAGE-NET-ASSETS> 209385
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.01)
<PER-SHARE-GAIN-APPREC> 1.32
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.31
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 3
<NAME> MATTHEWS KOREA FUND CLASS A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-1-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 79313374
<INVESTMENTS-AT-VALUE> 119034020
<RECEIVABLES> 1282009
<ASSETS-OTHER> 118784
<OTHER-ITEMS-ASSETS> 594501
<TOTAL-ASSETS> 121029314
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 495197
<TOTAL-LIABILITIES> 495197
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 88511570
<SHARES-COMMON-STOCK> 1938293
<SHARES-COMMON-PRIOR> 2046589
<ACCUMULATED-NII-CURRENT> (907118)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (6790981)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 39720646
<NET-ASSETS> 120534117
<DIVIDEND-INCOME> 37855
<INTEREST-INCOME> 35225
<OTHER-INCOME> 0
<EXPENSES-NET> 980198
<NET-INVESTMENT-INCOME> (907118)
<REALIZED-GAINS-CURRENT> 7002643
<APPREC-INCREASE-CURRENT> 53510445
<NET-CHANGE-FROM-OPS> 59605970
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 52002
<NUMBER-OF-SHARES-REDEEMED> 160298
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 49803458
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (13793624)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 534366
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 981747
<AVERAGE-NET-ASSETS> 6162090
<PER-SHARE-NAV-BEGIN> 2.01
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 1.73
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.71
<EXPENSE-RATIO> 2.07
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 3
<NAME> MATTHEWS KOREA FUND CLASS I
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-1-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 79313374
<INVESTMENTS-AT-VALUE> 119034020
<RECEIVABLES> 1282009
<ASSETS-OTHER> 118784
<OTHER-ITEMS-ASSETS> 594501
<TOTAL-ASSETS> 121029314
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 495197
<TOTAL-LIABILITIES> 495197
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 88511570
<SHARES-COMMON-STOCK> 30357265
<SHARES-COMMON-PRIOR> 32886364
<ACCUMULATED-NII-CURRENT> (907118)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (6790981)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 39720646
<NET-ASSETS> 120534117
<DIVIDEND-INCOME> 37855
<INTEREST-INCOME> 35225
<OTHER-INCOME> 0
<EXPENSES-NET> 980198
<NET-INVESTMENT-INCOME> (907118)
<REALIZED-GAINS-CURRENT> 7002643
<APPREC-INCREASE-CURRENT> 53510445
<NET-CHANGE-FROM-OPS> 59605970
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 21256256
<NUMBER-OF-SHARES-REDEEMED> 23785355
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 49803458
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (13793624)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 534366
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 981747
<AVERAGE-NET-ASSETS> 101596882
<PER-SHARE-NAV-BEGIN> 2.03
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 1.73
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.73
<EXPENSE-RATIO> 1.82
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 1
<NAME> MATTHEWS PACIFIC TIGER FUND CLASS A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-1-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 47231221
<INVESTMENTS-AT-VALUE> 43297476
<RECEIVABLES> 433312
<ASSETS-OTHER> 6621
<OTHER-ITEMS-ASSETS> 544123
<TOTAL-ASSETS> 44911532
<PAYABLE-FOR-SECURITIES> 344768
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 255488
<TOTAL-LIABILITIES> 600256
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 66270084
<SHARES-COMMON-STOCK> 27819
<SHARES-COMMON-PRIOR> 35793
<ACCUMULATED-NII-CURRENT> (141295)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (18514723)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3302790)
<NET-ASSETS> 44311276
<DIVIDEND-INCOME> 182864
<INTEREST-INCOME> 28197
<OTHER-INCOME> 0
<EXPENSES-NET> 427369
<NET-INVESTMENT-INCOME> (216308)
<REALIZED-GAINS-CURRENT> (7805820)
<APPREC-INCREASE-CURRENT> 25247473
<NET-CHANGE-FROM-OPS> 17225345
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14851
<NUMBER-OF-SHARES-REDEEMED> 22825
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12846797
<ACCUMULATED-NII-PRIOR> 75013
<ACCUMULATED-GAINS-PRIOR> (10708903)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 224777
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 444651
<AVERAGE-NET-ASSETS> 124840
<PER-SHARE-NAV-BEGIN> 6.39
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> 2.36
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.71
<EXPENSE-RATIO> 2.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 1
<NAME> MATTHEWS PACIFIC TIGER FUND CLASS I
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-1-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 47231221
<INVESTMENTS-AT-VALUE> 43927476
<RECEIVABLES> 433312
<ASSETS-OTHER> 6621
<OTHER-ITEMS-ASSETS> 544123
<TOTAL-ASSETS> 44911532
<PAYABLE-FOR-SECURITIES> 344768
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 255488
<TOTAL-LIABILITIES> 600256
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 66270084
<SHARES-COMMON-STOCK> 6910180
<SHARES-COMMON-PRIOR> 7689150
<ACCUMULATED-NII-CURRENT> (141295)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (18514723)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3302790)
<NET-ASSETS> 44311276
<DIVIDEND-INCOME> 182864
<INTEREST-INCOME> 28197
<OTHER-INCOME> 0
<EXPENSES-NET> 427369
<NET-INVESTMENT-INCOME> (216308)
<REALIZED-GAINS-CURRENT> (7805820)
<APPREC-INCREASE-CURRENT> 25247473
<NET-CHANGE-FROM-OPS> 17225345
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4046293
<NUMBER-OF-SHARES-REDEEMED> 4825263
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12846797
<ACCUMULATED-NII-PRIOR> 75013
<ACCUMULATED-GAINS-PRIOR> (10708903)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 224777
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 444651
<AVERAGE-NET-ASSETS> 45203219
<PER-SHARE-NAV-BEGIN> 4.07
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 2.35
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.39
<EXPENSE-RATIO> 1.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000923184
<NAME> MATTHEWS INTERNATIONAL FUNDS
<SERIES>
<NUMBER> 2
<NAME> MATTHEWS ASIAN GROWTH AND INCOME FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-1-1998
<PERIOD-END> FEB-28-1999
<INVESTMENTS-AT-COST> 6751216
<INVESTMENTS-AT-VALUE> 5648195
<RECEIVABLES> 82052
<ASSETS-OTHER> 417
<OTHER-ITEMS-ASSETS> 257020
<TOTAL-ASSETS> 5987684
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 69821
<TOTAL-LIABILITIES> 69821
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8089476
<SHARES-COMMON-STOCK> 844057
<SHARES-COMMON-PRIOR> 621136
<ACCUMULATED-NII-CURRENT> (27046)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1041546)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1103021)
<NET-ASSETS> 5917863
<DIVIDEND-INCOME> 15670
<INTEREST-INCOME> 123623
<OTHER-INCOME> 0
<EXPENSES-NET> 42644
<NET-INVESTMENT-INCOME> 96649
<REALIZED-GAINS-CURRENT> (238061)
<APPREC-INCREASE-CURRENT> 532348
<NET-CHANGE-FROM-OPS> 390936
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 137861
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 383755
<NUMBER-OF-SHARES-REDEEMED> 176195
<SHARES-REINVESTED> 15361
<NET-CHANGE-IN-ASSETS> 1855166
<ACCUMULATED-NII-PRIOR> 14166
<ACCUMULATED-GAINS-PRIOR> (803484)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 22444
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 50155
<AVERAGE-NET-ASSETS> 4526073
<PER-SHARE-NAV-BEGIN> 6.54
<PER-SHARE-NII> 0.16
<PER-SHARE-GAIN-APPREC> 0.53
<PER-SHARE-DIVIDEND> 0.22
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.01
<EXPENSE-RATIO> 1.90
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
FORM OF
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this fourth day of December, 1998 by and between
Matthews International Funds, a Delaware Business Trust (the "Trust")
and Matthews International Capital Management, LLC, a Delaware
limited
liability company (the "Adviser").
1. Duties of Adviser. The Trust hereby appoints the Adviser to act as
investment adviser to the Matthews Asian Growth and Income Fund (the "Series")
for the period and on such terms set forth in this Agreement. The Trust
employs the Adviser to manage the investment and reinvestment of the assets
of the Series, to determine in its discretion the assets to be held
uninvested, to provide the Trust with records concerning the Adviser's
activities which the Trust is required to maintain, and to render regular
reports to the Trust's officers and Board of Trustees concerning the Adviser's
discharge of the foregoing responsibilities. The Adviser shall discharge the
foregoing responsibilities subject to the control of the officers and the
Board of Trustees of the Trust, and in compliance with the objectives,
policies and limitations set forth in the Trust's Prospectus and Statement of
Additional Information. The Adviser accepts such employment and agrees to
render the services and to provide, at its own expense, the office space,
furnishings, equipment and the personnel required by it
to perform the services on the terms and for the compensation provided herein.
2. Portfolio Transactions. The Adviser shall provide the Series with a
trading department. The Adviser shall select the brokers or dealers that
will execute the purchases and sales of securities for the Series and is
directed to use its best efforts to ensure that the best available price and
most favorable execution of securities transactions for the Series are
obtained.
The Series will bear all expenses associated with its investment activities,
including, without limitation, brokerage commissions and custody expenses.
Subject to policies established by the Board of Trustees of the Trust and
communicated to the Adviser, it is understood that the Adviser will not be
deemed to have acted unlawfully, or to have breached a fiduciary duty to the
Trust or in respect of the Series, or be in breach of any obligation owing
to the Trust or in respect of the Series under this Agreement, or otherwise,
solely by reason of its having caused the Series to pay a member of a
securities exchange, a broker or a dealer a commission for effecting a
securities transaction for the Series in excess of the amount of commission
another member of an exchange, broker or dealer would have charged if the
Adviser determines in good faith that the commission paid was reasonable in
relation to the brokerage or research services provided by such member,
broker or dealer, viewed in terms of the particular transaction or the
Adviser's overall responsibilities with respect to the accounts, including
the Series, as to which it exercises investment discretion. The Adviser
will promptly communicate to the officers and directors of the Trust such
information relating to Series transactions as they may reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 and 2 of this Agreement, the Series shall
.pay to the Adviser within five business days after the end of each calendar
month, a monthly fee of one twelfth of 1.00% of the Series' average daily
net assets for the month. The net asset value shall be calculated in the
manner provided in the Series' prospectus and statement of additional
information then in effect. The Adviser may reduce any portion of the
compensation or reimbursement of expenses due to it pursuant to this
Agreement. Any fee withheld pursuant to this paragraph from the Adviser
shall be reimbursed by the Series to the Adviser in the first, second or
third (or any combination thereof) fiscal year next succeeding the fiscal
year of the withholding if the aggregate expenses for the next succeeding
fiscal year or second succeeding fiscal year or third succeeding fiscal year
do not exceed any more restrictive limitation to which the Adviser hasagreed.
The Adviser generally may request and receive reimbursement for
the oldest reductions and waivers before payment for fees and expenses
for the current year.
4. In the event of termination of this Agreement, the fee provided in this
Section 3 shall be paid on a pro rate basis, based on the number of days when
this Agreement was in effect.
5. Reports. The Series and the Adviser agree to finish to each other such
information regarding their operations with regard to their affairs as each
may reasonably request.
6. Status of Adviser. The services of the Adviser to the Series are not to
be deemed exclusive, and the Adviser shall be free to render similar services
to others so long as its services to the Series are not impaired thereby.
7. Liability of Adviser. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Adviser of its obligations and
duties hereunder, the Adviser shall not be subject to any liability whatsoever
to the Series, or to any shareholder of the Series, for any error of judgment,
mistake of law or any other act or omission in the course of, or connected
with, rendering services hereunder including, without limitation, for any
losses that may be sustained in connection with the purchase, holding,
redemption or sale of any security on behalf of the Series.
8. Duration and Termination. This Agreement shall become effective on
December 4, 1998 provided that first it is approved by the Board of Trustees
of the Trust, including a majority of those trustees who are not parties to
this Agreement or interested persons of any party hereto, in the manner
provided in section 15(c) of the Investment Company Act of 1940, and by the
holders of a majority of the outstanding voting securities of the Series; and
shall continue in effect until December 4, 2000. Thereafter, this Agreement
may continue in effect only if such continuance is approved at least annually
by: (i) the Trust's Board of Trustees or, (ii) by the vote of a majority of
the outstanding voting securities of the Series; and in either event by a
vote of a majority of those trustees of the Trust who are not parties to
this Agreement or interested persons of any such party in the manner provided
in section 15(c) of the Investment Company Act of 1940. This Agreement may
be terminated by the Trust at any time, without the payment of any penalty,
by the Board of Trustees of the Trust at any time, without the payment of
any penalty, by the Board of Trustees of the Trust or by vote of the holders
of a majority of the outstanding voting securities of the Series on 60 days'
written notice to the Adviser. This Agreement may be terminated by the
Adviser at any time, without the payment of any penalty, upon 60 days'
written notice to the Trust. This Agreement will automatically terminate in
the event of its assignment. Any notice under this Agreement shall be
given in writing, addressed and delivered or mailed postpaid, to the other
party at the principal office of such party.
As used in this Section 8, the terms "assignment" "interested person", and
"a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and
Section 2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
9. Name of Adviser. The parties agree that the Adviser has a proprietary
interest in the name "Matthews," and the Trust agrees to promptly take such
action as may be necessary to delete from its corporate name and/or the
name of the Series any reference to the name of the Adviser or the name
"Matthews," promptly after receipt from the Adviser of a written request
therefore.
10. Severability. If any provisions of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the fourth day of December, 1998.
ATTEST: MATTHEWS INTERNATIONAL FUNDS
_________________________ ___________________________________
Brian Stableford, Secretary G. Paul Matthews, President
ATTEST: MATTHEWS INTERNATIONAL
CAPITAL MANAGEMENT, LLC
_________________________ ___________________________________
Brian Stableford, Secretary Mark W. Headley, Vice President
SF/43883.3 - 6 -
FORM OF
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this fourth day of December, 1998 by and between
Matthews International Funds, a Delaware Business Trust (the "Trust")
and Matthews International Capital Management, LLC, a Delaware limited
liability company (the "Adviser").
1. Duties of Adviser. The Trust hereby appoints the Adviser to act as
investment adviser to the Matthews Dragon Century China Fund (the "Series")
for the period and on such terms set forth in this Agreement. The Trust
employs the Adviser to manage the investment and reinvestment of the assets of
the Series, to determine in its discretion the assets to be held uninvested,
to provide the Trust with records concerning the Adviser's activities which
the Trust is required to maintain, and to render regular reports to the
Trust's officers and Board of Trustees concerning the Adviser's discharge
of the foregoing responsibilities. The Adviser shall discharge the
foregoing responsibilities subject to the control of the officers and the
Board of Trustees of the Trust, and in compliance with the objectives,
policies and limitations set forth in the Trust's Prospectus and Statement
of Additional Information. The Adviser accepts such employment and agrees
to render the services and to provide, at its own expense, the office space,
furnishings, equipment and the personnel required by it to perform the
services on the terms and for the compensation provided herein.
2. Portfolio Transactions. The Adviser shall provide the Series with a
trading department. The Adviser shall select the brokers or dealers that
will execute the purchases and sales of securities for the Series and is
directed to use its best efforts to ensure that the best available price and
most favorable execution of securities transactions for the Series are
obtained. The Series will bear all expenses associated with its investment
activities, including, without limitation, brokerage commissions and custody
expenses. Subject to policies established by the Board of Trustees of the
Trust and communicated to the Adviser, it is understood that the Adviser
will not be deemed to have acted unlawfully, or to have breached a fiduciary
duty to the Trust or in respect of the Series, or be in breach of any
obligation owing to the Trust or in respect of the Series under this
Agreement, or otherwise, solely by reason of its having caused the Series to
pay a member of a securities exchange, a broker or a dealer a commission for
effecting a securities transaction for the Series in excess of the amount
of commission another member of an exchange, broker or dealer would have
charged if the Adviser determines in good faith that the commission paid was
reasonable in relation to the brokerage or research services provided by
such member, broker or dealer, viewed in terms of the particular transaction
are the Adviser's overall responsibilities with respect to the accounts,
including the Series, as to which it exercises investment discretion.
The Adviser will promptly communicate to the officers and directors of the
Trust such information relating to Series transactions as they may
reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 and 2 of this Agreement, the Series shall
pay to the Adviser within five business days after the end of each calendar
month, a monthly fee of one twelfth of 1.00% of the Series' average daily net
assets for the month. The net asset value shall be calculated in the manner
provided in the Series' prospectus and statement of additional information
then in effect. The Adviser may reduce any portion of the compensation or
reimbursement of expenses due to it pursuant to this Agreement. Any fee
withheld pursuant to this paragraph from the Adviser shall be reimbursed by
the Series to the Adviser in the first, second or third (or any combination
thereof) fiscal year next succeeding the fiscal year of the withholding if
the aggregate expenses for the next succeeding fiscal year or second
succeeding fiscal year or third succeeding fiscal year do not exceed any
more restrictive limitation to which the Adviser has agreed. The Adviser
generally may request and receive reimbursement for the oldest reductions
and waivers before payment for fees and expenses for the current year.
4. In the event of termination of this Agreement, the fee provided in this
Section 3 shall be paid on a pro rate basis, based on the number of days
when this Agreement was in effect.
5. Reports. The Series and the Adviser agree to finish to each other such
information regarding their operations with regard to their affairs as each
may reasonably request.
6. Status of Adviser. The services of the Adviser to the Series are not to
be deemed exclusive, and the Adviser shall be free to render similar services
to others so long as its services to the Series are not impaired thereby.
7. Liability of Adviser. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Adviser of its obligations and
duties hereunder, the Adviser shall not be subject to any liability whatsoever
to the Series, or to any shareholder of the Series, for any error of judgment,
mistake of law or any other act or omission in the course of, or connected
with, rendering services hereunder including, without limitation, for any
losses that may be sustained in connection with the purchase, holding,
redemption or sale of any security on behalf of the Series.
8. Duration and Termination. This Agreement shall become effective on
December 4, 1998 provided that first it is approved by the Board of Trustees
of the Trust, including a majority of those trustees who are not parties to
this Agreement or interested persons of any party hereto, in the manner
provided in section 15(c) of the Investment Company Act of 1940, and by the
holders of a majority of the outstanding voting securities of the Series;
and shall continue in effect until December 4, 2000. Thereafter, this
Agreement may continue in effect only if such continuance is approved at
least annually by: (i) the Trust's Board of Trustees or, (ii) by the vote
of a majority of the outstanding voting securities of the Series; and in
either event by a vote of a majority of those trustees of the Trust who are
not parties to this Agreement or interested persons of any such party in
the manner provided in section 15(c) of the Investment Company Act of 1940.
This Agreement may be terminated by the Trust at any time, without the
payment of any penalty, by the Board of Trustees of the Trust at any time,
without the payment of any penalty, by the Board of Trustees of the Trust
or by vote of the holders of a majority of the outstanding voting
securities of the Series on 60 days' written notice to the Adviser. This
Agreement may be terminated by the Adviser at any time, without the payment
of any penalty, upon 60 days' written notice to the Trust. This Agreement
will automatically terminate in the event of its assignment. Any notice
under this Agreement shall be given in writing, addressed and delivered or
mailed postpaid, to the other party at the principal office of such party.
As used in this Section 8, the terms "assignment" "interested person", and "
a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and
Section 2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
9. Name of Adviser. The parties agree that the Adviser has a proprietary
interest in the name "Matthews," and the Trust agrees to promptly take such
action as may be necessary to delete from its corporate name and/or the
name of the Series any reference to the name of the Adviser or the name
"Matthews," promptly after receipt from the Adviser of a written request
therefore.
10. Severability. If any provisions of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the fourth day of December, 1998.
ATTEST: MATTHEWS INTERNATIONAL FUNDS
_________________________ ___________________________________
Brian Stableford, Secretary G. Paul Matthews, President
ATTEST: MATTHEWS INTERNATIONAL
CAPITAL MANAGEMENT, LLC
_________________________ ___________________________________
Brian Stableford, Secretary Mark W. Headley, Vice President
SF/43883.3 - 6 -
FORM OF
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this thirtieth day of December, 1998 by and between
Matthews International Funds, a Delaware Business Trust (the "Trust")
and Matthews International Capital Management, LLC, a Delaware limited
liability company (the "Adviser").
1. Duties of Adviser. The Trust hereby appoints the Adviser to act as
investment adviser to the Matthews Japan Fund (the "Series") for the period
and on such terms set forth in this Agreement. The Trust employs the
Adviser to manage the investment and reinvestment of the assets of the Series,
to determine in its discretion the assets to be held uninvested, to provide
the Trust with records concerning the Adviser's activities which the Trust is
required to maintain, and to render regular reports to the Trust's officers
and Board of Trustees concerning the Adviser's discharge of the foregoing
responsibilities. The Adviser shall discharge the foregoing responsibilities
subject to the control of the officers and the Board of Trustees of the Trust,
and in compliance with the objectives, policies and limitations set forth
in the Trust's Prospectus and Statement of Additional Information.
The Adviser accepts such employment and agrees to render the services and
to provide, at its own expense, the office space, furnishings, equipment and
the personnel required by it to perform the services on the terms and for
the compensation provided herein.
2. Portfolio Transactions. The Adviser shall provide the Series with a
trading department. The Adviser shall select the brokers or dealers that
will execute the purchases and sales of securities for the Series and is
directed to use its best efforts to ensure that the best available price and
most favorable execution of securities transactions for the Series are
obtained. The Series will bear all expenses associated with its investment
activities, including, without limitation, brokerage commissions and custody
expenses. Subject to policies established by the Board of Trustees of the
Trust and communicated to the Adviser, it is understood that the Adviser
will not be deemed to have acted unlawfully, or to have breached a
fiduciary duty to the Trust or in respect of the Series, or be in breach
of any obligation owing to the Trust or in respect of the Series under this
Agreement, or otherwise, solely by reason of its having caused the Series
to pay a member of a securities exchange, a broker or a dealer a commission
for effecting a securities transaction for the Series in excess of the
amount of commission another member of an exchange, broker or dealer would
have charged if the Adviser determines in good faith that the commission paid
was reasonable in relation to the brokerage or research services provided by
such member, broker or dealer, viewed in terms of the particular transaction
or the Adviser's overall responsibilities with respect to the accounts,
including the Series, as to which it exercises investment discretion. The
Adviser will promptly communicate to the officers and directors of the Trust
such information relating to Series transactions as they may reasonably
request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 and 2 of this Agreement, the Series shall
pay to the Adviser within five business days after the end of each calendar
month, a monthly fee of one twelfth of 1.00% of the Series' average daily
net assets for the month. The net asset value shall be calculated in the
manner provided in the Series' prospectus and statement of additional
information then in effect. The Adviser may reduce any portion of the
compensation or reimbursement of expenses due to it pursuant to this
Agreement. Any fee withheld pursuant to this paragraph from the Adviser shall
be reimbursed by the Series to the Adviser in the first, second or third
(or any combination thereof) fiscal year next succeeding the fiscal year of
the withholding if the aggregate expenses for the next succeeding fiscal year
or second succeeding fiscal year or third succeeding fiscal year do not
exceed any more restrictive limitation to which the Adviser has agreed. The
Adviser generally may request and receive reimbursement for the oldest
reductions and waivers before payment for fees and expenses for the current
year.
4. In the event of termination of this Agreement, the fee provided in this
Section 3 shall be paid on a pro rate basis, based on the number of days
when this Agreement was in effect.
5. Reports. The Series and the Adviser agree to finish to each other such
information regarding their operations with regard to their affairs as each
may reasonably request.
6. Status of Adviser. The services of the Adviser to the Series are not to
be deemed exclusive, and the Adviser shall be free to render similar services
to others so long as its services to the Series are not impaired thereby.
7. Liability of Adviser. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Adviser of its obligations and
duties hereunder, the Adviser shall not be subject to any liability whatsoever
to the Series, or to any shareholder of the Series, for any error of judgment,
mistake of law or any other act or omission in the course of, or connected
with, rendering services hereunder including, without limitation, for any
losses that may be sustained in connection with the purchase, holding,
redemption or sale of any security on behalf of the Series.
8. Duration and Termination. This Agreement shall become effective on
December 30, 1998 provided that first it is approved by the Board of Trustees
of the Trust, including a majority of those trustees who are not parties to
this Agreement or interested persons of any party hereto, in the manner
provided in section 15(c) of the Investment Company Act of 1940, and by the
holders of a majority of the outstanding voting securities of the Series;
and shall continue in effect until December 30, 2000. Thereafter, this
Agreement may continue in effect only if such continuance is approved at
least annually by: (i) the Trust's Board of Trustees or, (ii) by the vote
of a majority of the outstanding voting securities of the Series; and in
either event by a vote of a majority of those trustees of the Trust who are
not parties to this Agreement or interested persons of any such party in the
manner provided in section 15(c) of the Investment Company Act of 1940.
This Agreement may be terminated by the Trust at any time, without the
payment of any penalty, by the Board of Trustees of the Trust at any time,
without the payment of any penalty, by the Board of Trustees of the Trust
or by vote of the holders of a majority of the outstanding voting securities
of the Series on 60 days' written notice to the Adviser. This Agreement
may be terminated by the Adviser at any time, without the payment of any
penalty, upon 60 days' written notice to the Trust. This Agreement will
automatically terminate in the event of its assignment. Any notice under
this Agreement shall be given in writing, addressed and delivered or mailed
postpaid, to the other party at the principal office of such party.
As used in this Section 8, the terms "assignment" "interested person", and
"a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and
Section 2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
9. Name of Adviser. The parties agree that the Adviser has a proprietary
interest in the name "Matthews," and the Trust agrees to promptly take such
action as may be necessary to delete from its corporate name and/or the name
of the Series any reference to the name of the Adviser or the name
"Matthews," promptly after receipt from the Adviser of a written request
therefore.
10. Severability. If any provisions of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the thirtieth day of December, 1998.
ATTEST: MATTHEWS INTERNATIONAL FUNDS
_________________________ ___________________________________
Brian Stableford, Secretary G. Paul Matthews, President
ATTEST: MATTHEWS INTERNATIONAL
CAPITAL MANAGEMENT, LLC
_________________________ ___________________________________
Brian Stableford, Secretary Mark W. Headley, Vice President
SF/43883.3 - 6 -
FORM OF
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this fourth day of December, 1998 by and between
Matthews International Funds, a Delaware Business Trust (the "Trust")
and Matthews International Capital Management, LLC, a Delaware limited
liability company (the "Adviser").
1. Duties of Adviser. The Trust hereby appoints the Adviser to act as
investment adviser to the Matthews Korea Fund (the "Series") for the period
and on such terms set forth in this Agreement. The Trust employs the
Adviser to manage the investment and reinvestment of the assets of the
Series, to determine in its discretion the assets to be held uninvested, to
provide the Trust with records concerning the Adviser's activities which the
Trust is required to maintain, and to render regular reports to the Trust's
officers and Board of Trustees concerning the Adviser's discharge of the
foregoing responsibilities. The Adviser shall discharge the foregoing
responsibilities subject to the control of the officers and the Board of
Trustees of the Trust, and in compliance with the objectives, policies and
limitations set forth in the Trust's Prospectus and Statement of Additional
Information. The Adviser accepts such employment and agrees to render the
services and to provide, at its own expense, the office space, furnishings,
equipment and the personnel required by it to perform the services on the
terms and for the compensation provided herein.
2. Portfolio Transactions. The Adviser shall provide the Series with a
trading department. The Adviser shall select the brokers or dealers that
will execute the purchases and sales of securities for the Series and is
directed to use its best efforts to ensure that the best available price and
most favorable execution of securities transactions for the Series are
obtained. The Series will bear all expenses associated with its investment
activities, including, without limitation, brokerage commissions and custody
expenses. Subject to policies established by the Board of Trustees of the
Trust and communicated to the Adviser, it is understood that the Adviser
will not be deemed to have acted unlawfully, or to have breached a fiduciary
duty to the Trust or in respect of the Series, or be in breach of any
obligation owing to the Trust or in respect of the Series under this
Agreement, or otherwise, solely by reason of its having caused the Series
to pay a member of a securities exchange, a broker or a dealer a commission
for effecting a securities transaction for the Series in excess of the amount
of commission another member of an exchange, broker or dealer would have
charged if the Adviser determines in good faith that the commission paid was
reasonable in relation to the brokerage or research services provided by
such member, broker or dealer, viewed in terms of the particular transaction
or the Adviser's overall responsibilities with respect to the accounts,
including the Series, as to which it exercises investment discretion.
The Adviser will promptly communicate to the officers and directors of the
Trust such information relating to Series transactions as they may
reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 and 2 of this Agreement, the Series shall
.pay to the Adviser within five business days after the end of each calendar
month, a monthly fee of one twelfth of 1.00% of the Series' average daily
net assets for the month. The net asset value shall be calculated in the
manner provided in the Series' prospectus and statement of additional
information then in effect. The Adviser may reduce any portion of the
compensation or reimbursement of expenses due to it pursuant to this
Agreement. Any fee withheld pursuant to this paragraph from the Adviser
shall be reimbursed by the Series to the Adviser in the first, second or
third (or any combination thereof) fiscal year next succeeding the fiscal
year of the withholding if the aggregate expenses for the next succeeding
fiscal year or second succeeding fiscal year or third succeeding fiscal year
do not exceed any more restrictive limitation to which the Adviser hasagreed.
The Adviser generally may request and receive reimbursement for
the oldest reductions and waivers before payment for fees and expenses
for the current year.
4. In the event of termination of this Agreement, the fee provided in this
Section 3 shall be paid on a pro rate basis, based on the number of days
when this Agreement was in effect.
5. Reports. The Series and the Adviser agree to finish to each other such
information regarding their operations with regard to their affairs as each
may reasonably request.
6. Status of Adviser. The services of the Adviser to the Series are not to
be deemed exclusive, and the Adviser shall be free to render similar services
to others so long as its services to the Series are not impaired thereby.
7. Liability of Adviser. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Adviser of its obligations and
duties hereunder, the Adviser shall not be subject to any liability
whatsoever to the Series, or to any shareholder of the Series, for any error
of judgment, mistake of law or any other act or omission in the course of,
or connected with, rendering services hereunder including, without limitation,
for any losses that may be sustained in connection with the purchase, holding,
redemption or sale of any security on behalf of the Series.
8. Duration and Termination. This Agreement shall become effective on
December 4, 1998 provided that first it is approved by the Board of
Trustees of the Trust, including a majority of those trustees who are not
parties to this Agreement or interested persons of any party hereto, in the
manner provided in section 15(c) of the Investment Company Act of 1940, and
by the holders of a majority of the outstanding voting securities of the
Series; and shall continue in effect until December 4, 2000. Thereafter, this
Agreement may continue in effect only if such continuance is approved at
least annually by: (i) the Trust's Board of Trustees or, (ii) by the vote
of a majority of the outstanding voting securities of the Series; and in
either event by a vote of a majority of those trustees of the Trust who are
not parties to this Agreement or interested persons of any such party in the
manner provided in section 15(c) of the Investment Company Act of 1940.
This Agreement may be terminated by the Trust at any time, without the
payment of any penalty, by the Board of Trustees of the Trust at any time,
without the payment of any penalty, by the Board of Trustees of the Trust or
by vote of the holders of a majority of the outstanding voting securities of
the Series on 60 days' written notice to the Adviser. This Agreement may be
terminated by the Adviser at any time, without the payment of any penalty,
upon 60 days' written notice to the Trust. This Agreement will automatically
terminate in the event of its assignment. Any notice under this Agreement
shall be given in writing, addressed and delivered or mailed postpaid, to
the other party at the principal office of such party.
As used in this Section 8, the terms "assignment" "interested person", and
a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and
Section 2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
9. Name of Adviser. The parties agree that the Adviser has a proprietary
interest in the name "Matthews," and the Trust agrees to promptly take such
action as may be necessary to delete from its corporate name and/or the name
of the Series any reference to the name of the Adviser or the name
"Matthews," promptly after receipt from the Adviser of a written request
therefore.
10. Severability. If any provisions of this Agreement shall be held or
made invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the fourth day of December, 1998.
ATTEST: MATTHEWS INTERNATIONAL FUNDS
_________________________ ___________________________________
Brian Stableford, Secretary G. Paul Matthews, President
ATTEST: MATTHEWS INTERNATIONAL
CAPITAL MANAGEMENT, LLC
_________________________ ___________________________________
Brian Stableford, Secretary Mark W. Headley, Vice President
SF/43883.3 - 6 -
FORM OF
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this fourth day of December, 1998 by and between
Matthews International Funds, a Delaware Business Trust (the "Trust")
and Matthews International Capital Management, LLC, a Delaware limited
liability
company (the "Adviser").
1. Duties of Adviser. The Trust hereby appoints the Adviser to act as
investment adviser to the Matthews Pacific Tiger Fund (the "Series") for the
period and on such terms set forth in this Agreement. The Trust employs the
Adviser to manage the investment and reinvestment of the assets of the
Series, to determine in its discretion the assets to be held uninvested, to
provide the Trust with records concerning the Adviser's activities which the
Trust is required to maintain, and to render regular reports to the Trust's
officers and Board of Trustees concerning the Adviser's discharge of the
foregoing responsibilities. The Adviser shall discharge the foregoing
responsibilities subject to the control of the officers and the Board of
Trustees of the Trust, and in compliance with the objectives, policies and
limitations set forth in the Trust's Prospectus and Statement of Additional
Information. The Adviser accepts such employment and agrees to render the
services and to provide, at its own expense, the office space, furnishings,
equipment and the personnel required by it to perform the services on the
terms and for the compensation provided herein.
2. Portfolio Transactions. The Adviser shall provide the Series with a
trading department. The Adviser shall select the brokers or dealers that
will execute the purchases and sales of securities for the Series and is d
irected to use its best efforts to ensure that the best available price and
most favorable execution of securities transactions for the Series are
obtained. The Series will bear all expenses associated with its investment
activities, including, without limitation, brokerage commissions and
custody expenses. Subject to policies established by the Board of
Trustees of the Trust and communicated to the Adviser, it is understood
that the Adviser will not be deemed to have acted unlawfully, or to have
breached a fiduciary duty to the Trust or in respect of the Series, or be
in breach of any obligation owing to the Trust or in respect of the Series
under this Agreement, or otherwise, solely by reason of its having caused
the Series to pay a member of a securities exchange, a broker or a dealera
commission for effecting a securities transaction for the Series in excess
of the amount of commission another member of an exchange, broker or dealer
would have charged if the Adviser determines in good faith that the
commission paid was reasonable in relation to the brokerage or research
services provided by such member, broker or dealer, viewed in terms of the
particular transaction or the Adviser's overall responsibilities with
respect to the accounts, including the Series, as to which it exercises
investment discretion. The Adviser will promptly communicate to the
officers and directors of the Trust such information relating to Series
transactions as they may reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 and 2 of this Agreement, the Series shall
pay to the Adviser within five business days after the end of each calendar m
onth, a monthly fee of one twelfth of 1.00% of the Series' average daily
net assets for the month. The net asset value shall be calculated in the
manner provided in the Series' prospectus and statement of additional
information then in effect. The Adviser may reduce any portion of the
compensation or reimbursement of expenses due to it pursuant to this
Agreement. Any fee withheld pursuant to this paragraph from the Adviser
shall be reimbursed by the Series to the Adviser in the first, second or
third (or any combination thereof) fiscal year next succeeding the fiscal
year of the withholding if the aggregate expenses for the next succeeding
fiscal year or second succeeding fiscal year or third succeeding fiscal year
do not exceed any more restrictive limitation to which the Adviser has agreed.
The Adviser generally may request and receive reimbursement for the oldest
reductions and waivers before payment for fees and expenses for the current
year.
4. In the event of termination of this Agreement, the fee provided in this
Section 3 shall be paid on a pro rate basis, based on the number of days
when this Agreement was in effect.
5. Reports. The Series and the Adviser agree to finish to each other such
information regarding their operations with regard to their affairs as each
may reasonably request.
6. Status of Adviser. The services of the Adviser to the Series are not to
be deemed exclusive, and the Adviser shall be free to render similar
services to others so long as its services to the Series are not impaired
thereby.
7. Liability of Adviser. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Adviser of its obligations and
duties hereunder, the Adviser shall not be subject to any liability
whatsoever to the Series, or to any shareholder of the Series, for any error
of judgment, mistake of law or any other act or omission in the course of,
or connected with, rendering services hereunder including, without
limitation, for any losses that may be sustained in connection with the
purchase, holding, redemption or sale of any security on behalf of the
Series.
8. Duration and Termination. This Agreement shall become effective on
December 4, 1998 provided that first it is approved by the Board of Trustees
of the Trust, including a majority of those trustees who are not parties to
this Agreement or interested persons of any party hereto, in the manner
provided in section 15(c) of the Investment Company Act of 1940, and by the
holders of a majority of the outstanding voting securities of the Series;
and shall continue in effect until December 4, 2000. Thereafter, this
Agreement may continue in effect only if such continuance is approved at
least annually by: (i) the Trust's Board of Trustees or, (ii) by the vote
of a majority of the outstanding voting securities of the Series; and in
either event by a vote of a majority of those trustees of the Trust who are
not parties to this Agreement or interested persons of any such party in the
manner provided in section 15(c) of the Investment Company Act of 1940.
This Agreement may be terminated by the Trust at any time , without the
payment of any penalty, by the Board of Trustees of the Trust at any time,
without the payment of any penalty, by the Board of Trustees of the Trust
or by vote of the holders of a majority of the outstanding voting securities
of the Series on 60 days' written notice to the Adviser. This Agreement may
be terminated by the Adviser at any time, without the payment of any penalty,
upon 60 days' written notice to the Trust. This Agreement will automatically
terminate in the event of its assignment. Any notice under this Agreement
shall be given in writing, addressed and delivered or mailed postpaid, to
the other party at the principal office of such party.
As used in this Section 8, the terms "assignment" "interested person", and
"a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and
Section 2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
9. Name of Adviser. The parties agree that the Adviser has a proprietary
interest in the name "Matthews," and the Trust agrees to promptly take such
action as may be necessary to delete from its corporate name and/or the name
of the Series any reference to the name of the Adviser or the name
"Matthews," promptly after receipt from the Adviser of a written request
therefore.
10. Severability. If any provisions of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the fourth day of December, 1998.
ATTEST: MATTHEWS INTERNATIONAL FUNDS
_________________________ ___________________________________
Brian Stableford, Secretary G. Paul Matthews, President
ATTEST: MATTHEWS INTERNATIONAL
CAPITAL MANAGEMENT, LLC
_________________________ ___________________________________
Brian Stableford, Secretary Mark W. Headley, Vice President
SF/43883.3 - 6 -
