1. China Sets Sail for New Leadership: 2013 Reforms Mansfield Mok Portfolio Manager New Capital China Equity FundFor Qualified and Accredited Investors Only April 2013

2. China Sets Sail For New Leadership: 2013 ReformsEFG Asset Management An independently managed business of EFG international. EFG Asset Management (EFGAM) is the asset management arm of EFG International, a global private banking group headquartered in Zurich, Switzerland. It is an integral part of EFG Internationals private banking activities, working closely with Client Relationship Officers and their clients. It is also a distinct, specialist asset manager, providing a range of actively-managed investment solutions to professional advisors and institutional investors worldwide. The business prides itself on its long-term outlook, and seeks to earn the trust of clients based on independent, expert and objective advice. EFGAMs investment professionals are based in London, Geneva, Zurich, New York, Hong Kong, Singapore and Miami, and manage over USD 82billion on behalf of clients. 3. China Sets Sail For New Leadership: 2013 ReformsSpecialist Strategies for Thoughtful Investors EFGAM is an international advisor delivering leading investment solutions for clients worldwide. With over $8 billion in assets under management, we have over 100 investment professionals located around the world. We offer a wide range of investment solutions reflecting the varied needs and preferences of our clients. Our clients can access our investment solutions through a variety of product structures, including individual and institutional separate accounts, mutual funds and other pooled investment vehicles. Our range of funds span a broad spectrum of investment options with circa $2 billion in assets.3Figures as at end February 2013 4. China Sets Sail For New Leadership: 2013 ReformsEconomic IndicatorIs Power Consumption a good proxy to China economic growth?China power consumption growth slowed down to 5.5% yoy in 2012 (11.9% in 2011)Secondary Industry (Light and Heavy industries) saw significant slow downBoth household and service industries are robust, reflecting a change in growth driver in Chinese economy China Power Consumption by Industry 2012 yoy Growth %Share of Total (%) Primary Industry0.0%2% Secondary Industry3.9% 74% Tertiary Industry11.5% 11% Household10.7% 13% Source: Deutsche Bank4 5. China Sets Sail For New Leadership: 2013 ReformsPolicy Statements From LeadersTop priority: Stimulate domestic consumption and implement banking reformPresident Hus Opening Speech on 8 November 2012: No change in direction of macro-economic policiesBuild a moderately prosperous society by 2020Double 2010 GDP and per capita income for both urban and rural residents by 2020Deepen reform of financial systemDevelopment of next generation information infrastructure China GDP per Capita * 2010 2020** Urban Household Rmb 21,033 (USD 3,183) Rmb 42,066 (USD 7,011) Rural Household Rmb 8,119 (USD 1,229)Rmb 16,238 (USD 2,706)Source: CEIS, Nomura5 Note: ** 2020 GDP per capita assumption: GDP per capita double in RMB terms and 6 RMB per USD 6. China Sets Sail For New Leadership: 2013 ReformsReforms Create OpportunitiesMost likely reforms in the coming 3-4 yearsMost likely reforms Possible reforms Least likely reformsResource pricing reform Personal income tax reform SOE reformInterest rate liberalisationHukou reform Property taxCapital account liberalisationRural land reformCentral-local relationsGreater exchange rate flexibility Budget transparencyVAT reformDe-monopolisationResource/environmental tax reform Pension reformIncrease in social spending Relaxing one-child policy6 Source: Deutsche Bank 7. China Sets Sail For New Leadership: 2013 ReformsBanking Sector TrendNon traditional loan credit is rising; Non bank financials will become a fast growing sector. Breakdown of Total Credit (%) CAGRs (%)200920122009-2012 Traditional Loan74.467.3 16.5 Social Financing (defined by PBOC)21.428.0 31.7Entrusted Loans6.2 7.025.4Trust Loans & others 2.1 3.137.2Banker Acceptance Bills5.6 7.633.6Corporate Bonds5.5 7.935.7 Other Non Bank Financing4.2 4.725.6 Total Credit100 10020.5 Total Credit ex-RMB Loan30.137.0 29.07Source: PBOC, CBRC, CEIC, Bernstein 8. China Sets Sail For New Leadership: 2013 ReformsChinese Labour Market TrendSlow down in growth of working age population8Source: IMF 9. China Sets Sail For New Leadership: 2013 ReformsEconomic Activities: Moving West and Central2012 Real GDP China: Real GDP growth of 9.4% in 2011GrowthChina 7.8%Beijing 7.7%Shanghai7.5%Zhejiang8.0%Guangdong10.2%Guizhou13.6%Chongqing13.6%Sichuan12.6%Inner11.7%Mongolia9Source: National Bureau of Statistics China Database 10. China Sets Sail For New Leadership: 2013 ReformsChina Selects The Regional Expansion Model10 Source: McKinsey Global Institute 11. China Sets Sail For New Leadership: 2013 ReformsConsumer Demand Will Come In WavesVariation in income level across China: Tier 2 markets are experiencing strong growth now.11 Source: China Statistical Year Book, Deutsche Bank 12. China Sets Sail For New Leadership: 2013 ReformsGlobal Financial Crisis: An Opportunity For China The current financial crisis presents an opportunity for China Low interest rates will prevail and surplus liquidity will look for areas with strong growth potential Chinese central government has healthy balance sheet and stronger economic growth vs. G3 Policy reforms taking place: Economic driver: domestic consumption will take the lead supported by the increase in minimum wage Pricing reform: facilitated by lower commodity prices and low inflation rate Financial System ReformReal GDP Growth Outlook10 CurrentFiscal Gross PublicTotal Return 8 Countries Account Deficits Debt (USD)* 6 US -2.97.892 24.5% 4 Japan 1.111.3243 1.6% Euro area 1.03.294 8.6% 2 China 3.01.642 4.5% 0 All figures are CS estimates and represented as % of 2012 GDP-2ChinaJapan US Euro World *Note: Index performance from 1 Jan 2011 to 31 Jan 2013 US( SPX Index); Japan (NKY Index); Euro (SX5E Index); China (MXCN Index) 2011 2012E 2013F12 Source: Morgan Stanley 13. China Sets Sail For New Leadership: 2013 ReformsSentiments Shifting to a Soft Landing ScenarioThe bear arguments look overstated and there are some signs of shifting sentiment. Concern about property crash in China Signs of stability in the equity market: Property selling prices have stabilised There are some early signs of stabilisation Loan-to-value ratio of 60-65% should provide GDP growth stabilises at 7.4% in 3Q and cushion to the banking system 7.9% in 4Q 2012 China M2 growth bottomed at 13.5% in Fear of banking crisis in China Aug 2012 LGFV loan Economists on the bear camp are changing their Refinanced by the fast growing corporate tone after the improving economic numbers bond market Some brokers are making a Buy call on Shadow banking defaults China. e.g. Credit Suisse in Nov 2012 No new cases reported Continuous inflows into Asian markets Surge in NPL Reported NPL is still below 1% and loan growth remains healthy at 15% Worries of a hard landing The change of Chinese demographics China has a slow down in working population13 14. China Sets Sail For New Leadership: 2013 ReformsChina Stock Market: An Attractive Asset ClassMSCI China 12 month Fwd P/E(X)* Attractive valuation Valuations at historically low level in both P/B and P/E terms Under-owned asset class APAC hedge fund managers are still bearishon China as reported by Credit Suisse PrimeServices dataNet exposure Change Since Sept 2012 to Feb 2013** (%pt) Net ex posure change (%) Removal of political uncertainties 12% 10% Structural change in industries 8% 6% Creates opportunities to new players and 4%industries who are at the early stage of their 2% S-Curve 0% -2% e.g. Banking and consumer sectors -4%Hong Kong IndonesiaAustraliaIndiaChinaSingaporeKoreaJapanPhilippinesMalaysia New Zealand Taiwan14Source: * Nomura Securities ** Credit Suisse 15. China Sets Sail For New Leadership: 2013 ReformsThe Performance Gap Should NarrowBig changes after the US election and new Chinese leadership US Market Worries of fiscal cliff Concern about raising tax China Market Removal of political uncertainties Soft landing of economy15 Source: Bloomberg as at 22 March 2013 16. China Sets Sail For New Leadership: 2013 ReformsInvestment PhilosophyIdentify stocks with Re-rating Potential Zone A: Re-Rating (Accumulate) Company gradually increases its market share and gains pricing power Investors are sceptical about the growth potential of the company and put in a low valuation. e.g. Insurance companies in the current cycle are trading at historic low New Business Multiple despite the low penetration rate of insurance product Zone B: De-Rating (Reduce) Company sees declining growth Chinese oil companies saw a sharp decline in production growth over the years. They became utilities and experienced P/E contraction16 17. China Sets Sail For New Leadership: 2013 ReformsEconomic Growth vs Index PerformanceIndex performance fell behind GDP growth during 2007-2012 and 2010-2012China Nominal GDP MSCI China Index Performancecompound annual Growth p.a.compound annual return p.a.3 Year to6 Years to3 Years to6 Years to 2006 +16.8+14.6 +24.5+24.0 2007 +18.5+15.9 +43.7+28.3 2012 +15.0+15.7-4.0 -0.6 Note: * GDP growth and performance number are in CNY17 Source: Bloomberg 18. China Sets Sail For New Leadership: 2013 ReformsTop 10 MSCI China Index ComponentsWeighting of mature companies rising80% of top 10 Index component are mature companies and may not catch up with the economic growth of China MSCI China Dec 2012 % Outlook and ViewChina Mobile9.91 Mature; Zone BCCB H 8.17 De-rating due to interest rate deregulationICBC H6.52 De-rating due to interest rate deregulationCNOOC 5.45 Mature; Zone BBOC H 4.74 De-rating due to interest rate deregulationTencent 4.60Petrochina H4.22 Mature; Zone BChina Life Insurance3.43China Petroleum & Chemical2.68 Mature; Zone BPing An Insurance 2.2218 Source: Nomura 19. China Sets Sail For New Leadership: 2013 ReformsChinas Investment Outlook Sustainable, above-average economic growth Among the major economies, China offers attractive GDP growth of 7% pa backed by fiscal stimulus China is changing its economic model to one that is based on self-sustainable domestic consumption Supported by healthy demographics and high saving rates Global interest rate to stay low for a longer period of time The US Federal Reserve expects fed fund rate to stay below 0.25% until mid 2015 In view of lacklustre global economy and low inflationary pressure, PBOC will continue the monetary easing policy Attractive valuation Market is trading at historical low levels in both P/B and P/E terms Change of leadership Removal of political uncertainties Risks Geo-political uncertainty19 20. China Sets Sail For New Leadership: 2013 ReformsCurrent Investment ThemesDomestic Consumption Products with low penetration rates: e.g. autos, Smartphones, insurance products Consumer companies with pricing power and good distribution networks Consumer staples benefit from rising rural consumptionRMB Internationalisation Stronger pipeline for RMB offshore products Banking reform Deregulation of Chinas interest rate policyGradual breakdown of old monopoly Structural de-rating of some State Owned Enterprises e.g. Big policy banksInternet Boom Growing importance of E-commerce and on-line shopping Rising CAPEX for telecom operators20 21. China Sets Sail For New Leadership: 2013 ReformsIndustry TrendImportant Quotes China Construction Bank 2013 Annual Results page 62: market competition tends to be more intensive as both non-bank financial and quasi-bank institutions intervene in banking businesses including wealth management, payment and settlement.. China Banking Regulatory Commission CBRC warns of risks from industries including property,solar Industry, machinery, steel, wind power and PV. China Mobile: will spend Rmb 41bn to build 200+ TD-LTE base stations to cover 100 major cities. Jack Ma, Chairman of Alibaba Group at Credit Suisse AIC 2013:e-commerce in the US is a dessert. Its an addition to their main business, because in the US theinfrastructure of doing business is so good. But in China, because the infrastructure of commerce isbad, e-commerce becomes the main course.21 22. China Sets Sail For New Leadership: 2013 ReformsPositioning & OutlookOverweight Information technology Telecom equipment provider Autos and consumer staplesUnderweight Chinese banks but overweight special lenders, insurance and HK financials Telecom operators because of rising expenses due to handset subsidy Energy. Prefer refineries as they are beneficiaries of Chinas pricing reform. Zero weighting in materials and capital goodsStrategy Cautiously optimistic Accumulate growth stocks on price consolidation22 23. China Sets Sail For New Leadership: 2013 ReformsTop 10 HoldingsAs at 28 March 2013 Holding %Nature of Business Wilmar International4.97 A plantation conglomerate which will distribute corn flakes in China New China Life H Share4.82 One of the largest life insurance companies in China Wharf Holdings4.42 A big landlord in China Chongqing Rural Commercial Bank 4.40 A restructured commercial bank China Minzhong Food 4.14 A farming company China Everbright Ltd4.08 A listed China Fund manager Tecent Holdings 4.05 The China internet company having a Facebook business model HK Exchange & Clearing3.73 A platform to distribute RMB financial products Dah Chong Hong3.65 A car distributor and services company Far East Horizon3.60 A financial leasing company in China23 24. China Sets Sail For New Leadership: 2013 ReformsNew Capital China Equity FundInvestment objective & strategy.The New Capital China Equity Fund invests in equitiesof public companies with significant business activities Sub-Fund NameNew Capital China Equity Fundin the Peoples Republic of China and Hong Kong. Theequities are quoted securities listed or traded on stockEquities Long Only, with options and futures for Investment Styleprotectionexchanges worldwide MarketsChina and Hong Kong primarily (all caps)The investment strategy adopts a fundamental stock-Benchmark MSCI China Indexpicking approach by investing in small, medium andBase Currency USDlarge companies which have re-rating potential Max Cash No cash limit and no leverageStock selection is driven by bottom-up analysis ofUCITS IV New Capital UCIT FUND PLCearnings outlook, profitability trend, balance sheet Fund EntityRegulated by the Central Bank of Irelandstrength and management quality of a companyBase Fee1.75% (Ordinary) 0.90% (Institutional)The investment horizon of the strategy is between one Liquidity Daily dealingto three years, allowing the hidden potential of thecompanies to be reflected in the share price over timeto achieve capital appreciation24 25. China Sets Sail For New Leadership: 2013 ReformsPeer Group Performance ComparisonNew Capital China Equity Fund outperformed peers and benchmark since inception (20/8/2012) 130 125 120 115 110 105 1009590 Aug-12 Sep-12Oct-12 Nov-12Dec-12 Jan-13Feb-13 Mar-13 New Capital UCITS Fund PLC - China Equity Fund MSCI China Index25Source: Bloomberg as at 27 March 2013BAIF-Open End Chinese Equity Funds Domiciled in an Offshore Market 26. China Sets Sail For New Leadership: 2013 ReformsStock Example: Wharf Holdings (4 HK Equity)A big landlord in China.72.0070.00Wharf is a major beneficiary of rising Chinese68.0066.00tourism through its retail property portfolios in64.0062.00 Hong Kong which provides good cash flow for60.00building its empire in China58.0056.0054.00Rental income from China could jump at leastPrice52.0050.004x after the completion of 2.1m sqm48.0046.00International Finance Centres in five second44.0042.00tier cities40.0038.0036.00Wharf stands out from its Chinese property34.0032.00peers because of its prudent managementMar-11May-11 Jun-11Jul-11 Oct-11Nov-11 Dec-11Jan-12 Feb-12Mar-12May-12 Jun-12Jul-12 Oct-12Nov-12 Dec-12Jan-13Sep-11Sep-12 Apr-11 Aug-11 Apr-12 Aug-12 and healthy balance sheet Date26Source: Bloomberg 27. China Sets Sail For New Leadership: 2013 ReformsAn Experienced Investment TeamA dedicated, locally-based team supported globally. Years denote investment experience in industry. Please refer to individual biographies within this presentation for more information.27 28. China Sets Sail For New Leadership: 2013 ReformsAppendix28 29. China Sets Sail For New Leadership: 2013 ReformsDefinition Of Various China SharesA-Share: RMB-denominated ordinary share. It is issued by domestic companies for trade with RMB by domesticinstitutions, organizations and individuals (exclude Taiwan, HK and Macao investors).B-Share: RMB-denominated special share. It is traded in foreign currency on the Shanghai and Shenzhen markets.B-share transaction was only for natural persons, legal persons and other organizations overseas or in Taiwan, HKand Macao, Chinese citizens settled in foreign countries, and other investors allowed by the CSRC. After February19, 2001, the commission opened the B-share market to domestic investors with foreign currency.H-Share: companies incorporated in Mainland China and whose listings in Hong Kong are approved by the ChinaSecurities Regulatory Commission (CSRC). Shares in these companies are listed in Hong Kong, subscribed for andtraded in Hong Kong dollars or other currencies, and referred to as H shares.Red Chip: enterprises that are incorporated outside of the Mainland and are controlled by Mainland Governmententities. The most important difference between a red chip company and an H-share company is that a red chipcompany is not Mainland-incorporated Source: China Securities Regulatory Commission website29 HK Stock Exchange website 30. China Sets Sail For New Leadership: 2013 ReformsMSCI China Index Top Ten Components2007 vs 2012 Dec 2012 % Dec 2007%China Mobile 9.91 China Mobile 17.57CCB H8.17 China Life Insurance 6.05ICBC H 6.52 Petrochina 5.60CNOOC5.45 CNOOC4.28BOC H4.74 China Petroleum & Chemical 4.20Tencent4.60 CCB H3.47Petrochina H 4.22 ICBC H 3.46China Life Insurance 3.43 China Shenhua3.19China Petroleum & Chemical 2.68 Ping An Insurance2.50Ping An Insurance2.22 BOC H1.8330 Source: Nomura 31. China Sets Sail For New Leadership: 2013 ReformsHighlights of Investment ThemesExtract from Chinas Stock Market: A Stock Pickers Paradise (Oct/Nov 2012)31 32. China Sets Sail For New Leadership: 2013 ReformsRMB Internationalisation: Banking ReformChina banks are to focus on their main banking business. Basel III: Banks are required to increase their Capital Adequacy Ratios and have no additional capital for other businesses e.g. insurance Interest rate deregulation: This will break the oligopoly of the big five banks and provide a more favourable operating environment for other specialty lenders Deepening/broadening corporate bond market: This will result in an additional funding source for new players. Emergence of the non-bank financial sector: Insurance and specialty lender32 33. China Sets Sail For New Leadership: 2013 ReformsInsurance: An Underpenetrated BusinessGDP, Penetration and Life Market(Life Insurance penetration vs. GDP per CapitaMature 2011 Premium as % of GDPMarkets Future Giants Emerging Markets2011 GDP per Capita (US$)33 Source: IMF, Swiss Re, Manulife 34. China Sets Sail For New Leadership: 2013 ReformsChina Consumption Has a Much Bigger ScaleIncomes are rising in developing economies faster, and at a greater scale, than at anyprevious point in history.1Time to increase per capita GDP in PPP terms from $1,300 to $2,60034 Source: McKinsey Global Institute 35. China Sets Sail For New Leadership: 2013 ReformsA Big Increase in Middle Income Group Chinas middle income consumer household is expected to reach 166m by 2020, double the total of US, Japan and Germany combined. The increase in middle income consumers should support the demand for discretionary goods.35 Source: McKinsey Insights China 36. China Sets Sail For New Leadership: 2013 ReformsStrong Demand for DiscretionaryRising importance of consumer spending.36 Source: McKinsey Insights China 37. 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