Fact Sheet MarketGrader CSI MarketGrader 200 Index RESEARCH & INDEXES

The CSI MarketGrader China 200 Index seeks to follow the most fundamentally sound companies with the best growth prospects in Mainland China. It seeks to give local and global investors access to a market that has been gradually opening to foreign invest- ments, and that houses some of the most promising companies in China. As the Shanghai and Shenzhen stock markets continue to develop into world-class investor destinations, the CSI MarketGrader Index series seeks to expose investors to the best opportunities within them. Since its constituents are equally weighted, the index gives each company an equal opportunity to contribute to the performance of the portfolio regardless of market size, sector, business model or affiliation with the state.

Index Rules Performance

Underlying Universe Cumulativea share 200 Total Return, Jan. 2008 - May. 2019* All data as of May 31, 2019 All A shares listed in the Shanghai and Shen- 250% zhen Stock Exchanges that are covered and rated by MarketGrader and are not 200% “ST” stocks.

Objective 150% Designed to serve as the basis of investment funds providing access to investors to some 100% of the most promising stocks in China.

Weighting 50% The index is equally weighted. 0% Rebalance Frequency The index is reconstituted and rebalanced -50% twice a year on the next trading day after the close of trading on the second Friday in -100% 5/31/19 June and December. 12/31/07 12/31/08 12/31/09 12/31/10 12/30/11 12/31/12 12/31/13 12/31/14 12/31/15 12/30/16 12/29/17 12/28/18

Selection Criteria CSI MarketGrader China 200 CSI 300 CSI All Share All index components are selected based New Econ on their overall MarketGrader Grade. Built Calendar Year Returns Annualized Returns 300% on a scale between 0 and 100, our Overall CSI MG 200 CSI 300 CSI All Sh. CSI MG 200 CSI 300 CSI All Sh. Grade is based on our 24 fundamental 250% 3-Years -0.20% 7.00% -1.70% indicators, which are broken down into four 2019* 21.86% 21.13% 20.67% 5 -Years 13.50% 13.40% 9.50% analytical categories: Growth, Value, Prof- 200% Since 12/31/07 7.10% -1.70% -0.80% itability and Cash Flow. All of our indicators 2018 -26.71% -23.64% -28.79% and our overall grades are calculated daily 150% Cumulative Returns for all companies under coverage. 2017 7.96% 24.25% 3.68% 100% CSI MG 200 CSI 300 CSI All Sh. Market Cap Requirements 3-Years -0.60% 22.40% -5.00% 201650% -14.68% -9.26% -13.31% All index constituents must have a minimum 5 -Years 88.60% 87.60% 57.20% total market cap of RMB 700 million. At least 20150% 68.22% 7.22% 33.78% 20% of all index components (40 compa- Since 12/31/07 118.10% -17.60% -8.70% nies) must have a market cap of at least 2014-50% 35.76% 55.85% 48.41% RMB 14 billion. Standard Deviation -100% CSI MG 200 CSI 300 CSI All Sh. 2013 22.01% -5.33% 7.10% Liquidity Requirements 12/31/07 12/31/08 12/31/09 12/31/10 12/30/11 12/31/123-Years12/31/13 12/31/1417.82% 12/31/1515.96% 12/30/1616.67%1/31/18 A minimum 3-month daily traded value of 2012 10.29% 9.80% 6.24% 5 -Years 28.07% 25.40% 26.58% RMB 14 million and at least RMB 350 million Since 12/31/07 30.29% 28.78% 29.32% in aggregate trading volume in the trailing 2011 -29.22% -24.05% -27.32% 12 months preceding the index selection Sharpe Ratio date. 2010 20.23% -11.58% -2.99% CSI MG 200 CSI 300 CSI All Sh.

Sector Limits 2009 140.87% 98.58% 108.10% 3-Years -0.01 0.44 -0.10 200 new econ china+hk japan The number of selections in a single eco- 5 -Years 0.48 0.53 0.36 nomic sector cannot exceed 20% of the 2008 -56.72% -65.91% -64.33% index (40 companies). Since 12/31/07 0.23 -0.06 -0.03 All values in RMB. *YTD values as of 05/31/2018 All values in RMB. Frequency: Monthly. Sources: CSI, FactSet, MarketGrader.com Sources: CSI, FactSet, MarketGrader.com Licensing opportunities [email protected] Sources: MarketGrader Research, China Securities Index Co., FactSet. +1 (305) 529-1767 * The CSI MarketGrader China 200 Index was first published on March 20, 2015. Backtested performance information is purely hy- www.marketgrader.com pothetical and is solely for informational purposes. Backtested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance is not indicative of future results. CSI is a registered trademark of China Securities Index Co. MarketGrader.com © 2019.

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new econ china+hk japan Sector Breakdown200 (based on constituent count) Most Selections Since Inception

1.0% 1.5% Consumer Discretionary Ticker Name Times 9.5% new econ china+hk japan 14.5% 200 Consumer Staples 600519.CN Co., Ltd. Class A 24 9.0% Energy 000651.CN Appliances, Inc. of 20 Financials 4.0% 600660.CN Fuyao Glass Industry Group Co., 20 Health Care 600763.CN Topchoice Medical Investment 18 20.0% 8.0% Industrials 000568.CN Luzhou Laojiao Company Limited 17 Materials Technology 000858.CN Co., Ltd. Class A 17 15.5% Telecommunication 600406.CN NARI Technology Co., Ltd. Class A 16 17.0% Utilities 600309.CN Co. Ltd. 15 002415.CN Hangzhou Digital Technol- 15 600809.CN Shanxi Xinghuacun Fen Wine Fac- 15 601006.CN Daqin Railway Co., Ltd. Class A 14 Market Cap Breakdown (based on constituent count) 002508.CN Hangzhou Robam Appliances Co., 14 002035.CN Vatti Corp. Ltd. Class A 14 002128.CN Huolinhe Opencut Coal Industry 13 28.0% 002372.CN Zhejiang Weixing New Building 12 Large Cap 600062.CN China Resources Double-Crane 12 Small Cap 600161.CN Beijing Tiantan Biological Products 11 300113.CN Hangzhou Shunwang Technology 11

72.0% 002572.CN Suofeiya Home Collection Co. Ltd 11 002001.CN Zhejiang NHU Co. Ltd. Class A 11 a+HK

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