Chinese Equity

Monthly Update April 2021

Performance (% Total Return)

Periods ended April 30, 20211 1 Month YTD Since Inception2

HL Chinese Equity (Gross) 3.39 2.70 2.70 HL Chinese Equity (Net) 3.31 2.37 2.37 MSCI China All Shares Index3,4 2.32 0.79 0.79

Portfolio Positioning (% Weight) Investment Perspectives MSCI Market China All As COVID-19 remains well controlled within China and travel Sector HL CE Shares (Under) / Over restrictions are eased, domestic travel seems poised to rebound Industrials 18.5 7.5 during the longest holiday in the first half of this year, the five-day period beginning on May 1 (known as Labor Day). This augurs well Health Care 14.9 8.9 for leisure- and travel-related businesses.

Cons Discretionary 29.9 25.1 Portfolio Cash 1.7 – For US investors in Chinese securities, the Holding Foreign Companies Accountable Act imposed in the waning days of the Trump Info Technology 9.3 8.3 administration is a slow-moving threat—but one from which we have nonetheless chosen to insulate the portfolio altogether. To side-step Comm Services 14.5 14.1 the risk (which we still judge to be low) that ADRs would be de-listed from US exchanges in 2023 either because of non-compliant auditing Utilities 1.5 2.0 standards or purported connections to the Chinese military, we exchanged the four such ADR holdings for the underlying ordinary Energy 0.0 1.3 shares, following their secondary listing in Hong Kong. The strategy no longer holds any US-listed ADRs. Real Estate 0.0 3.4

Cons Staples 5.7 9.2

Materials 0.0 4.5

Financials 4.0 15.7

-12 -6 0 6 12 Top Ten Holdings Company Market Sector Alibaba Mainland China DSCR Tencent Mainland China COMM MSCI China All China Tourism Group Duty Free Mainland China DSCR Geography HL CE Shares (Under) / Over WuXi Biologics Mainland China HLTH Other Emerging Markets5 6.3 – WuXi AppTec Mainland China HLTH AirTAC Taiwan INDU Cash 1.7 – Techtronic Industries Hong Kong INDU Mainland China + Hong Kong 92.0 100.0 Haitian International Mainland China INDU AIA Group Hong Kong FINA -12 -6 0 6 12 Wuliangye Yibin Mainland China STPL

Top Ten Holdings are the top ten holdings by weight. Please read the disclosures on the last page, which are an integral part of this presentation. Benchmark Performance | Apr. Benchmark Performance | YTD

Total Return by Sector (%) Total Return by Sector (%) 15 15

10 10 5 5 0 0 -5

-5 -10 UTIL UTIL INFT INFT FINA FINA INDU INDU STPL STPL RLST RLST HLTH HLTH ENER DSCR DSCR ENER MATS MATS COMM COMM

Portfolio Attribution | Apr. Portfolio Attribution | YTD

Effect (%) Selection Allocation Total Effect (%) Selection Allocation Total Sector -0.1 1.2 1.1 Sector 1.4 0.6 2.0

2.0 2.0

1.0 1.0

0.0 0.0

-1.0 -1.0 UTIL UTIL INFT INFT FINA FINA INDU INDU STPL STPL RLST RLST HLTH HLTH ENER DSCR DSCR ENER CASH CASH MATS MATS COMM COMM

. The portfolio’s underweight to Financials, especially the absence . Technology outperformed thanks to strong returns in Silergy. of banks, helped relative performance in April. Hong Kong-based . We also outperformed in Industrials where AirTAC, Haitian life insurer AIA Group outperformed, helped by a strong start this International, and Techtronic Industries all reported strong earnings. year with a pandemic recovery bounce in new business in . Our underweights in Materials and Energy sectors hurt relative Mainland China. performance in a period when these sectors have been strong, . Information Technology and Industrials outperformed, helped by buoyed by rising commodity prices. positive stock selection. Silergy, a power-management integrated . In Consumer Staples, our stocks underperformed. Soy sauce maker circuit maker, benefitted from continuation of strong pandemic Foshan Haitian was weak due to the threat of margin pressure from demand for consumer gadgetry. Taiwan-based pneumatic rising commodity prices. component manufacturer AirTAC led in Industrials, with strong Q1 sales and margins, and raised full-year guidance. . Consumer Discretionary was a notable drag, where wardrobe and kitchen cabinet maker Suofeiya pulled back in April after a strong run of pandemic stay-at-home DIY and redecorating projects. Top Five Contributors/Detractors (%) | Apr. Top Five Contributors/Detractors (%) | YTD to Relative Returns to Relative Returns Index Index Contributors Market Sector Weight Effect Contributors Market Sector Weight Effect AirTAC Taiwan INDU – 0.63 AirTAC Taiwan INDU – 0.63 Silergy Taiwan INFT – 0.48 Techtronic Industries Hong Kong INDU – 0.58 WuXi AppTec Mainland China HLTH 0.4 0.39 Haitian International Mainland China INDU 0.1 0.55 WuXi Biologics Mainland China HLTH 0.9 0.32 Pinduoduo* Mainland China DSCR 1.3 0.37 ASM Pacific Technology Hong Kong INFT – 0.26 Xiaomi* Mainland China INFT 1.1 0.36 Detractors Detractors SF Holding Mainland China INDU 0.4 -0.55 Tencent Mainland China COMM 9.9 -1.63 Suofeiya Mainland China DSCR <0.1 -0.27 SF Holding Mainland China INDU 0.4 -1.14 TravelSky Technology Mainland China INFT 0.1 -0.22 Alibaba Mainland China DSCR 9.5 -1.01 Shanghai Intl Airport Mainland China INDU 0.1 -0.22 Shanghai Intl Airport Mainland China INDU 0.1 -0.69 Jiangsu Hengrui Medicine Mainland China HLTH 0.5 -0.15 Midea Group Mainland China DSCR 0.1 -0.49 *Company was not held in the portfolio; its absence had an impact on the portfolio’s return relative to the MSCI China All Shares Index. . April 2021 Monthly Update Index weight is the average weight of the security in the index over the MTD and YTD periods. 2 Please read the disclosures on the last page, which are an integral part of this presentation. Endnotes

(1) The April 2021 Composite performance shown is preliminary (2) Inception date: December 31, 2020 (3) The Benchmark Index (4) Gross of withholding taxes (5) Includes countries listed in emerging markets, excluding Mainland China and Hong Kong. Sources

Benchmark Performance: FactSet; MSCI Inc. and S&P. Sector/Geographic Attribution: FactSet; Harding Loevner Chinese Equity Composite; MSCI Inc. and S&P. Sector/Geographic Exposure and Top Ten Holdings: FactSet; Harding Loevner Chinese Equity Model; MSCI Inc. and S&P. Disclosures

Composite performance shown is preliminary. For comparison purposes the Composite return is measured against the MSCI China All Shares Total Return Index (Gross). Harding Loevner LP is an investment adviser registered with the Securities and Exchange Commission. Harding Loevner LP is an investment adviser registered with the Securities and Exchange Commission. Harding Loevner claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Harding Loevner has been independently verified for the period November 1, 1989 through December 31, 2020. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The verification reports are available upon request. Verification does not ensure the accuracy of any composite presentation. Performance data quoted represents past performance; past performance does not guarantee future results. Returns are presented both gross and net of management fees and include the reinvestment of all income. Net returns are calculated using actual fees. The US dollar is the currency used to express performance. For complete information on the construction and historical record of the Chinese Equity Composite, please contact Harding Loevner at (908) 218-7900 or visit www.hardingloevner.com. The firm maintains a complete list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds, which are available upon request. The MSCI China All Shares Index is a free float-adjusted market capitalization index designed to measure large and mid-cap China share classes listed in Hong Kong, Shanghai, Shenzhen, and outside of China. You cannot invest directly in this Index. Companies held in the portfolio during the month appear in bold type; only the first reference to a particular holding appears in bold. The portfolio is actively managed therefore holdings may not be current. They should not be considered recommendations to buy or sell any security. It should not be assumed that investment in the securities identified has been or will be profitable. The portfolio holdings identified above do not represent all of the securities held in the portfolio. To request a complete list of holdings since inception, please contact Harding Loevner. The following information is available upon request: (1) information describing the methodology of the contribution data and (2) a list showing the weight and relative contribution to return of all holdings during the month. Portfolio holdings, portfolio attribution, contributors and detractors, and sector/geographic portfolio positioning are supplemental information only and complement a fully compliant Chinese Equity Composite GIPS Presentation, which is available upon request. The Composite and Attribution returns may show discrepancies due to the different data sources for these returns. Composite performance is obtained from Harding Loevner’s accounting system and Attribution returns are obtained from the FactSet portfolio analysis system. Please note returns from FactSet are not audited for GIPS compliance and are for reference only. FactSet Fundamentals, Copyright 2021 FactSet Research Systems, Inc. All rights reserved. MSCI Inc. and S&P do not make any express or implied warranties or representations and shall have no liability whatsoever with respect to any GICS data contained herein.