1. Baring Asset Management Limited 155 Bishopsgate, London EC2M 3XY Tel+44 (0)20 7628 6000 Fax+44 (0)20 7638 7928 www.barings.com Authorised and regulated by the Financial Services Authority Baring Hong Kong China Fund For Professional Investors Only February 2011 Agnes Deng – Head of HK China Equities Quarterly Investment Update For Professional Advisers only

2. 1 Baring Hong Kong China Fund Performance (Periods to 31 st December 2010) Source: Morningstar, performance figures are shown in US Dollars on a NAV per share basis, with gross income reinvested. Please refer to the page headed “Important information” for further regulatory disclosure of the Fund. 70.64 * The performance of the benchmark index is based on Hang Seng Total Return Index until 31 August 2006. The benchmark index became MSCI Zhong Hua Total Return Index with effect from 1 September 2006. From 1 February 2008, the benchmark index became MSCI China Index. Data of Hang Seng Total Return Index is sourced from HSI Services Limited. Reference to the benchmark index is for comparative purposes only. Past performance is not a guide to future performance

3. 2 2010 China market with wall of worries Performance Source: Factset as at January 2011 NPL issue Inflation risk? Exit strategy? Property sector policy risk Sovereign debt risk RMB appreciation to hurt exports? Local government debt Labour shortage QE2  QEn ? Credit tightening Raising inflation

4. 3 GDP led by domestic consumption and Investment Source: CEIC, NBS, CLSA as at January 2011 Composition of China’s GDP Growth Re-defining the growth driver in the economy

5. 4 The key investment themes in 2011 Rising inflation risk and credit tightening concerns Strong capex spending, including advertising from corporates to improve productivity or to gain pricing power. Increasing telecom data usage on the back of 3G initiatives in China and further penetration of the smart phone in China. Rising wages and demand on service industry Continuing trend on RMB internationalization

6. 5 Valuation at reasonable level Source: Goldman Sachs as at January 2011 Offshore-listed Chinese stocks are trading below the historical mean in P/E terms Forward P/E for MSCI China

7. 6 Investment strategy SectorView MSCI China Sector Weighting (%) MSCI China Notes FY1 P/E (X) FY1 P/B (X) Consumer Disc. Positive5.519.44.0Benefit from domestic consumption story. Health Care Positive0.839.57.1 Healthcare reform in China provides industry consolidation opportunities and potential growth Info. Technology Positive5.428.19.6Positive on internet plays/telecommunication equipment vendors Consumer Staples Positive5.224.05.8 Valuations are reasonable after pull back but earnings growth less volatile. Industrials Neutral8.415.72.2 Prefer equipment makers with industry leadership. Neutral on conglomerates. Insurances Neutral8.726.23.9Benefit from steepened yield curve and interest rate hikes Materials Negative6.221.52.8Fixed asset investment slowing down Utilities Negative1.815.71.8Utilization rate recovery but tariff capped with potential cost increase Properties Negative5.612.71.8Policy risks persist to cap the valuation Banks Negative22.810.42.0 Credit demand is strong from both public project and private sector. NPL should not be near term problem. Energy Negative18.113.02.5Prefer coal with better supply consolidation and demand recovery Telecoms Negative11.315.82.1Lower growth for China Mobile (UW) but selective overweight CU+CT Performance source: Factset as at 31 st December 2010

8. Baring Asset Management Limited 155 Bishopsgate, London EC2M 3XY Tel+44 (0)20 7628 6000 Fax+44 (0)20 7638 7928 www.barings.com Authorised and regulated by the Financial Services Authority Appendix

9. 8 Source: Baring Asset Management (%) China Construction Bank7.5 China Mobile5.7 Bank of China Ltd.4.6 SINA Corp.4.0 Industrial & Commercial Bank of China3.6 China Pacific Insurance3.6 Tencent Holdings3.2 China Shenhua Energy2.6 China Life Insurance2.5 China Petroleum & Chemical2.5 Baring Hong Kong China Fund Top 10 Holdings (31 st December 2010)

10. 9 Source: Baring Asset Management Greater focus on China direct plays, due to their compelling valuation and growth prospects Baring Hong Kong China Fund Fund Breakdown (31 st December 2010) (%) Overseas listed Chinese companies89.5 H share45.1 Red chip19.7 Others – listed in HK17.5 Others – listed outside HK7.2 China listed Chinese companies5.1 A share5.1 B share0.0 Hong Kong companies2.2 Cash & Others3.2 Total100.0

11. 10 PortfolioIndex* Forward P/E16.013.9 Price/Book 2.82.6 ROE22.119.3 Number of Stocks69 The rolling 12 month portfolio turnover (adjusted)= 99% Tracking Error vs. Index4.4% Beta vs. Index0.96 Individual stock holding limit ≤10% (soft limit) (≤5%) * Index = MSCI China Baring Hong Kong China Fund Portfolio Characteristics (31 st December 2010) Investment involves risk. Past performance is not a guide to future performance Source: Baring Asset Management Portfolio Characteristics Risk Summary Portfolio TurnoverStock Holding Limit

12. 11 Important information For Professional Investors/Advisers only. It should not be distributed to or relied on by Retail Investors. This document is approved and issued by Baring Asset Management Limited, authorised and regulated by the Financial Services Authority and in jurisdictions other than the UK it is provided by the appropriate Baring Asset Management company/affiliate whose name(s) and contact details are specified herein. The information in this document does not constitute investment, tax, legal or other advice or recommendation. It is not an invitation to subscribe and is for information only. Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance. Where yields have been quoted they are not guaranteed. Changes in rates of exchange may have an adverse effect on the value, price or income of an investment. There are additional risks associated with investments (made directly or through investment vehicles which invest) in emerging or developing markets. Investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a greater risk of default and have a negative impact on income and capital value. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth. We reasonably believe that the information contained herein from 3rd party sources, as quoted, is accurate as at the date of publication. The information and any opinions expressed herein may change at any time. Companies and employees of the Baring Asset Management group may hold positions in the investment(s) concerned. This document may include internal portfolio construction guidelines. As guidelines the fund is not required to and may not always be within these limits. These guidelines are subject to change without prior notice and are provided for information purposes only. This document may include forward looking statements which are based on our current opinions, expectations and projections. 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. This document must not be used, or relied on, for purposes of any investment decisions. Before investing in any product, we recommend that appropriate financial advice should be sought and all relevant documents relating to the product, such as Reports and Accounts and Prospectus should be read. Compensation arrangements under the Financial Services and Markets Act 2000 of the United Kingdom will not be available in respect to any Offshore Fund. 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. Lists of locations, or location indicators on maps, are non-exhaustive. They may include locations where Barings has an office and/or where Barings has appointed a local organisation or individual to act on its behalf for certain aspects of its business. For data sourced from Morningstar: © Morningstar, Inc. all rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Version 06/SD Complied: 16 February 2011