This document provides an overview of the Excel China Fund managed by Barings. It discusses the fund's investment strategy, which focuses on undervalued Chinese companies positioned for growth. The portfolio managers believe inflation and policy risks in China will moderate and that government policy will emphasize pro-growth initiatives. The fund takes larger overweight positions in sectors like technology and consumer discretionary compared to its benchmark. It focuses on companies with favorable valuations, growth potential, and credible management teams.

1. For Professional Investors Only
China Confidential
EXCEL CHINA FUND
Agnes Deng
Co-Portfolio Manager of Excel China Fund
& Head of Hong Kong Equities at Barings
February 2012
For Dealer Use Only February 2012

2. Excel Funds Management Inc. is Canada’s first and only emerging markets focused mutual fund
provider. For over 12 years, we have been partnering exclusively with best in class, on-the-ground
portfolio managers that bring Canadian investors firsthand insight and expertise in these flourishing
economies. Through our funds, investors gain early exposure to companies positioned to become
future leaders in some of the world’s fastest growing markets. Excel Funds maintains a highly ranked
fund family that is focused on emerging market growth opportunities.
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3. China Market
Investment Strategy

4. Inflation and policy risk should start moderate. Policy sensitive sector could reverse the
under-performance.
Market valuation is close to the historical trough on bearish sentiment. Upcoming earning
downgrade risk is largely priced in.
Expect China policy to place more emphasis on “pro-growth”. Policy easing targeting the
small and medium enterprises already begun.
Raising wages will continue to support consumption. Social housing and public utilities
becomes the new driver for fixed asset investment growth. Domestic demand will largely
offset export slowdown.
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5. Tightening bias to remain, key is when it will peak out
Source: NBS, CEIC, UBS estimates (January 2012)
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6. China: Purchasing Manager Index Interest rate
(PMI)
Economic
Expansion
Economic
Contraction
China shifting policy, but slowly
Source: HSBC as at January 2012 Source: CLSA as at January 2012
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7. YoY growth rate of M2 Loan-to-deposit ratio
We do not share the view of an ‘imminent’
banking crisis in China
Source: YoY growth rate of M2 – CLSA as at January 2012; Loan-to-deposit ratio - CEIC, RBS as at January 2012
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8. Central Government Debt Outstanding
(as a % of GDP)
China appears to be able to service its debt
with ease, even if it had to absorb all local government debt
Source :IMF, RBS as at September 2011
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9. China: average annual wage Wage inflation in different sectors
Double
compared
with 2010
Note: Assuming the average annual wage for 2015 = twice that for 2009, as 2010 figure
is not available
Source: (China: average annual wage) Ministry of Human Resources and Social Security, Daiwa Securities Group as of 30 September 2010;
(Wage inflation in different sectors) CEIC, HSBC as at September 2011
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10. Offshore-listed Chinese stocks are trading below the historical
mean in P/E terms
Forward P/E for MSCI China
Source: Goldman Sachs as at January 2012
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11. Increase exposure in policy sensitive sector valuation largely priced in policy risk and
concern of economic slowdown
Property stocks become attractive on low valuation and recovery of transaction volume
Focus on earnings visibility and quality growth ideas in Technology and Internet sector
Revisit the export sector focus on market leaders which play consolidator roles and with
strong balance sheet
Source: Barings
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12. China’s Team and
Investment Process

13. Agnes Deng
Head of HK China
Equities
Investment Experience:
13 Years
Investment Managers Analysts
William Fong Jim Chen Winston Ke Derick Leung Lin Tang Zhi Zhi Tan Nicola Lai
Investment Experience: Investment Experience: Investment Experience: Investment Experience: Investment Experience: Investment Experience: Investment Experience:
12 Years 9 Years 6 Years 6 Years 3 Years 6 Years 6 Years
(Taiwan Specialist)
Strategic Policy Group Portfolio Analytics Risk Management Asian Country Specialists
Source: Barings
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14. Cheap Valuation Expensive
We seek to identify “Unrecognized Growth” High
opportunities at their earliest stages in an
unconstrained investment universe.
Growth at a
reasonable
price
90/120 rule : 90-120% of market PER
Growth
Low
We seek under-recognised growth companies that will deliver positive surprise
Source: Barings
Source: Barings
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15. GROWTH VALUATION MANAGEMENT LIQUIDITY CURRENCY
Unrecognized Favorable Credible Ability to finance Sensitivity to
growth risk/reward management growth currency
Research augmented by regular contact with target companies
Enterprise Value/Earnings Before Interest, Tax, Depreciation and Amortization
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16. Consumer
- C. Staples
- Healthcare Construction
- C. Disc.
- Retails
Financials:
Banks .
Insurance . Brokerage
Property
- Commercial
- Residential Telecoms Manu-
IT + Internet facture
Transportation:
Airline . Shipping .
Port . Toll Road
Commodities
- Energy Utilities
- Basic Material - IPP
Coal
Effective, Efficient and Focus
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17. Stock Universe 1720
Screening Process
Primary Companies Researched 169
Index Stocks Covered 78
Index weight researched 84.4%
Non-index names researched 91
“1” & “2” rated stocks 104
Company visit in last twelve months 1001*
Active comprehensive coverage and rating
Data as of 31 January 2012, Source: Barings, MSCI, Factset
* Data as at 30 June 2011
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18. Common, transparent stock Stock Score versus Benchmark
research and scoring system June 2007 to June 2011
All research ideas scored by conviction:
1 (outperform) to 5 (underperform)
Same treatment on index stocks vs non
index stock, small-mid caps vs big caps
Portfolio focused on companies scored 1
and 2
System engenders accountability,
transparency and communication
Transparent methodology of conviction based scoring
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19. We buy when we identify Triggers for a sell
Unrecognised earnings growth prospects Stock is downgraded to sell
Bottoming of earnings expectations and We detect deterioration in fundamental outlook
valuations
We believe valuations have fully discounted
Catalyst that will lead to the stock being re-rated growth prospects
We have a significantly more attractive idea
Focus on stocks rated 1 to 2
IPO Process
Selective in IPO subscription
Focus on long term investment conviction
Clear target on both price and position size
A disciplined approach to buy and sell
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20. Portfolio Construction
& Fund Performance

21. Greater focus on China direct plays, due to their
compelling valuation and growth prospects
Source: Baring Asset Management
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22. Sector Allocation vs Index*
Fund (%) Index (%)*
Major Underweight/Overweight Positions
Information Tech 24.4 6.0
Consumer Disc 13.2 6.0
Health Care 4.0 0.8
[Cash] 2.3 --
Materials 5.0 5.3
Industrials 5.9 6.6
Utilities -- 2.1
Consumer Staples 0.9 5.3
Energy 13.4 19.0
Telecom Services 4.0 12.7
Financials 27.0 36.2
Focusing on the secular ‘growth’ sectors
* Index - MSCI China
Source: Baring Asset Management
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23. Portfolio Characteristics Market Capitalization Comparison
Portfolio Index* Portfolio Benchmark*
(%) (%) (%) (%)
Forward P/E (FY2) 10.2x 8.9x Over US$10 bn 39.8 63.9
Price/Book 2.2x 1.9x US$1-10 bn 51.3 34.7
ROE 22.8% 21.4% Below US$1 bn 7.7 1.4
Number of Stocks 60 148 Weighted Avg (US$ bn) 24.1 54.3
Portfolio Turnover Risk Summary
The rolling 12 month portfolio 79.2% Tracking Error vs. Index* 8.1%
turnover (adjusted)
Beta vs. Index* 1.1
Remarks: Investment involves risk. Past performance is not an indication of future performance. Please refer to the Regulatory Disclosure.
Source : MSCI, Style Research, Barings
* Index: MSCI China
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24. Agnes Deng, CFA
Head of Hong Kong China Equities Last updated: 30th January 2012
Investment Director, Asia Pacific Equity
Location: Hong Kong
Investment Experience: 13 Years
Agnes is the investment manager of the Baring Hong Kong China Fund and Greater China Fund Inc. She also takes the lead role in Hong Kong China specialist
research. Agnes joined Baring Asset Management in 2007 from Standard Life Investment (SLI) in Asia where she was an Investment Director with considerable
experience in running portfolios focusing on the Hong Kong China as well as the Asian region. The SLI China Fund she managed consistently ranked in the top quartile
positions in the peer group performance surveys. Agnes also worked closely with Standard Life’s asset management joint venture in China and provided
recommendations on strategy and asset allocation. Agnes received a BA in English Literature from Xiang Tan University (Hunan) China and an M.B.A. from the McGill
University, Montreal, Canada. Agnes was awarded the CFA designation in 2001. She speaks English, Mandarin and Cantonese fluently.
William Fong, CFA
Investment Director, Asia Pacific Equity Last updated: 30th January 2012
Location: Hong Kong
Investment Experience: 12 Years
William is the lead manager of Baring China Select Fund and Baring China Growth Fund. He also manages a number of dedicated Hong Kong China portfolios including
the co-manager role of Greater China Fund, Inc. His research responsibilities include Hong Kong, China and Taiwan. He is also a member of the Technology Global
sector team. William joined Baring Asset Management in 2004 from Primasia Securities where as an Investment Analyst specialising on Taiwanese stocks. He received a
B.B.A. (Hons.) in Finance from The Chinese University of Hong Kong. William was awarded the CFA designation in 2003. He is fluent in Cantonese, English and
Mandarin.
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25. Jim Chen, CFA
Investment Manager, Asia Pacific Equity Last updated: 30th January 2012
Location: Hong Kong
Investment Experience: 9 Years
Industry Experience: 11 Years
Jim is an investment manager responsible for institutional China portfolios in our Hong Kong China equities team. He joined Barings in July 2010 from Sumitomo Mitsui
Asset Management (Hong Kong) where he managed Greater China funds and led the China research analyst team. Prior to that, he worked for CITIC Capital Holdings
as a fund manager of its China funds. Jim received a BA in International Trade from Wuhan University China, an MA in Financial Economics from the University of Maine,
USA, and an MBA from Northeastern University, Boston, USA. He is also a CFA Charterholder. Jim speaks English, Cantonese and Mandarin fluently.
Winston Ke, CFA
Senior Investment Analyst, Asia Pacific Equity Last updated: 30th January 2012
Location: Hong Kong
Investment Experience: 6 Years
Winston has research responsibility for Hong Kong and China. He joined Baring asset management in April 2010 from First State Cinda Asset Management where he
covered China A share market as a senior equity analyst. He started his career as a management trainee with HSBC. He is a CFA Charterholder and received a BA and
a MA from Nanjing University. He is fluent in English and Mandarin.
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26. Derick Leung
Investment Analyst, Asia Pacific Equity Last updated: 30th January 2012
Location: Hong Kong
Investment Experience: 6 Years
Derick Leung has research responsibility for Hong Kong and China . He joined Baring Asset Management in May 2008 from Geminis Capital International, where he
worked as an analyst covering Greater China markets. He received a BEng from The University of Hong Kong and an Msc from University of Warwick. He is fluent in
Cantonese, English and Mandarin.
Zhi Zhi Tan
Investment Analyst, Asia Pacific Equity Last updated: 30th January 2012
Location: Hong Kong
Investment Experience: 6 Years
Zhizhi has research responsibility for Hong Kong and China. He joined Baring Asset Management in December 2011 from Heju Investment, where he was a senior
equity analyst. Prior to that, he worked as an investment analyst for ABN AMRO TEDA Fund Management, covering commodities and telecommunication sector from
2006 to 2010. Zhizhi received a BA from Renmin University of China. He is fluent in English and Mandarin.
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27. Lin Tang
Investment Analyst, Asia Pacific Equity Last updated: 30th January 2012
Location: Hong Kong
Investment Experience: 3 Years
Lin Tang has research responsibility for Hong Kong and China. She joined Baring Asset Management in October 2010 from HSBC Markets (Asia) Limited, where she
worked as an equity sales covering Hong Kong and China markets. She received an MBA in Finance from The University of Chicago Graduate School of Business. She
is fluent in Mandarin, English and Cantonese.
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28. EXCEL FUNDS
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before
investing. The indicated rates of return are the historical annual compounded total return including changes in unit value and reinvestment of all distributions and do not
take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are
not guaranteed, their values change frequently and past performance may not be repeated. The rates of return shown are used only to illustrate the effects of the
compound growth rate and are not intended to reflect future values of the returns on investment in Excel Funds.
BARINGS ASSET MANAGEMENT (ASIA) LIMITED
This document is issued by Baring Asset Management (Asia) Limited. This document is intended for receipt solely by persons who are professional investors/advisors
and must not be circulated or distributed to other persons. The information in this document does not constitute investment, tax, legal or other advice or
recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management. We reasonably believe that the information
contained herein is accurate as at the date of publication but no warranty (express or implied) or guarantee is given as to accuracy. The information and any opinions
expressed herein may change at any time. This document must not be used, or relied on, for purposes of any investment decisions. Baring Asset Management group
and its affiliates/staff may own or have positions in any investment mentioned herein or any investment related thereto and from time to time add to or dispose of any
such investment. This document may include forward-looking statements which are based on our current opinions, expectations and projections as of the date on the
cover hereof. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-
looking statements.
Transactions in derivative instruments may be used to meet the investment objectives of the Fund and may therefore lead to higher volatility to its net asset value and
may involve a greater degree of risk than is the case with conventional securities.
A portion of the fund’s portfolio is invested into emerging markets and investors should be aware of the risk associated with such investments.
Investment involves risks. The price of units may go down as well as up and the past performance does not indicate future performance. Investors should read the
offering documents for details and the risk factors. Investors should not base on this document alone to make investment decisions. Investors please refer to offering
documents for further details, including risk factors. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.
Research Material
Baring Asset Management only produces research for its own internal use. Where details of research are provided in this document it is provided as an example of
research undertaken by Baring Asset Management and must not be used, or relied upon, for the purposes of any investment decisions. The information and opinions
expressed herein may change at anytime.
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