Matthews Asia has confirmed its top-performing manager Tiffany Hsiao is leaving the firm next week along with two deputy managers to pursue other opportunities.
Hsiao (pictured), who is lead manager of the Matthews China Small Companies and Matthews Asia Small Companies strategies, will leave the firm on 31 August, the firm said in a statement.
It also confirmed Beini Zhou and Yuanyuan Ji will leave the company on the same day. Zhou is deputy manager on the Asia Small Companies fund while Ji is deputy on the China strategy.
The China Small Companies strategy will be taken over by Winnie Chwang and Andrew Mattock as co-lead managers. The duo currently manages the core $1.3bn Matthews China strategy which has outperformed its benchmark over one, three and five years.
“Both Winnie and Andrew have significant experience researching and investing in small companies in China and have a deep understanding of the China Small Companies strategy’s current portfolio holdings,” the firm said.
Vivek Tanneeru, who currently manages Matthews Asia’s Asia ESG strategy, will take over the Asia Small Companies fund.
Fairview Investing investment consultant Ben Yearsley described the departure of Hsiao as a “real shame”.
“I did an excellent conference call with her a couple of months back,” he said. “She really knew her stuff so definitely a loss to Matthews.
“Obviously the fund is being taken over by Matthews existing large cap China team, so good level of experience.”
The Matthews China Small Companies strategy has topped the IA China/Greater China sector over one, three and five years, according to FE Fundinfo data. It has outperformed its sector and benchmark over these periods, delivering a return of 69.7%, 93.7% and 254.9% over one, three and five years respectively.
The Asia Small Companies fund is top quartile over one and three years but third over five. It has delivered a return of 19.2%, 25.7% and 91.2% over one, three and five years respectively.
Tiffany Hsiao fund performance versus sector and benchmark
| 1m | 3m | 6m | 1yr | 3yr | 5yr | |
| Matthews China Small Companies Fund I in GB | 0.31 | 9.92 | 35.07 | 69.69 | 93.72 | 254.94 |
| MSCI China Small Cap TR in GB | 4.95 | 19.96 | 14.04 | 14.92 | 4.73 | 59.92 |
| IA China/Greater China TR in GB | 4.61 | 18.34 | 21.67 | 28.55 | 33.82 | 138.17 |
| Matthews Asia Small Companies Fund I in GB | 2.10 | 12.42 | 14.37 | 19.16 | 25.65 | 91.20 |
| MSCI AC Asia ex Japan Small Cap TR in GB | 4.21 | 16.23 | 11.14 | 10.90 | 1.65 | 56.37 |
| IA Asia Pacific Excluding Japan TR in GB | 3.47 | 14.58 | 9.27 | 10.45 | 14.32 | 94.93 |
Source: FE Fundinfo
Matthews Asia said while it is disappointed in Tsiao’s decision to leave the firm, it has a “deep bench of investment team talent” with more than 40 investment professionals. “We are pleased that our firm has played an important role in Tiffany’s development as a portfolio manager since she joined our firm as an analyst in 2014, and we would like to take this opportunity to thank Tiffany for her many contributions.”
It added: “We can confirm the departures of Beini Zhou and Yuanyuan Ji on August 31, 2020 to pursue other opportunities.”
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