W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs C

Transcription

1 Interim Report As of 30 June 2010 ETFs World Index Shares ETFs Fund Manager and Interim Report Issuer BOCI-Prudential Asset Management

2 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs CONTENTS PAGE(S) MANAGEMENT AND ADMINISTRATION 1 REPORT OF THE MANAGER TO THE UNITHOLDERS 2 STATEMENT OF COMPREHENSIVE INCOME 14 STATEMENT OF FINANCIAL POSITION 16 STATEMENT OF CHANGES IN EQUITY 18 W.I.S.E.-CSI 300 CHINA TRACKER 300 INVESTMENT PORTFOLIO 21 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 26 PERFORMANCE TABLE 35 W.I.S.E.-CSI HK 100 TRACKER 100 INVESTMENT PORTFOLIO 36 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 39 PERFORMANCE TABLE 43 W.I.S.E.-SSE 50 CHINA TRACKER 50 INVESTMENT PORTFOLIO 44 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 46 PERFORMANCE TABLE 49 1

3 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs MANAGEMENT AND ADMINISTRATION MANAGER AND LISTING AGENT BOCI-Prudential Asset Management Limited 27/F, Bank of China Tower 1 Garden Road Central Hong Kong DIRECTORS OF THE MANAGER AND LISTING AGENT Wang Zhongze Mak Tat Cheung Tse Yung Hoi Paul Brian Hancock Graham David Mason (appointed on 25 January 2010) TRUSTEE AND CUSTODIAN BOCI-Prudential Trustee Limited 12/F & 25/F, Citicorp Centre 18 Whitfield Road Causeway Bay Hong Kong REGISTRAR Computershare Hong Kong Investor Services Limited 46/F, Hopewell Centre 183 Queen s Road East Wanchai Hong Kong CONVERSION AGENT HK Conversion Agency Services Limited 2nd Floor, Vicwood Plaza 199 Des Voeux Road Central Hong Kong LEGAL ADVISER TO THE MANAGER Baker & McKenzie 14/F, Hutchison House 10 Harcourt Road Central Hong Kong AUDITOR Deloitte Touche Tohmatsu 35/F, One Pacific Place 88 Queensway Hong Kong 1 27 Paul Brian Hancock Graham David Mason

4 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) 300 ETFs Fund Performance The WISE-CSI300 China Tracker is an index-tracking fund which seeks to track the performance of the CSI 300 Price Index in RMB terms. As of 30 June 2010, the NAV per unit of the WISE-CSI300 China Tracker was HKD with a total of 169,600,000 units outstanding, aggregating a total asset under management ( AUM ) size of HKD 4,499,915, ,600,000AUM 4,499,915, The WISE-CSI300 China Tracker invests solely in A-Shares Access Products (AXPs). The Fund seeks to construct a portfolio that its overall capitalization, industry and fundamental investment characteristics are like those of the CSI 300 Index. A summary of the performance tracking of the WISE-CSI300 China Tracker versus the CSI 300 Index is stated below. 300 A (AXP) Month 3-Month 6-Month 1-Year 3-Year 5-Year Since Inception (e) (e) CSI300 Price Index (a) -7.58% % % % N/A N/A % 300 (a) CSI300 Total Return Index (d) -7.32% % % % N/A N/A % 300 (d) WISE-CSI300 China Tracker NAV-to-NAV (c) -6.94% % % % N/A N/A % 300 (c) WISE-CSI300 China Tracker Market-to-Market (d) -3.91% % % % N/A N/A % 300 (d) (as of 30 June 2010) (a) Price Index in RMB. An Investor cannot invest directly in an index and the index performance returns do not reflect management fees, transaction costs or other expenses, which would reduce performance returns. (b) Total Return Index in RMB (c) Unit s NAV in HKD. Units in the Sub-Fund can be created and redeemed at their NAV in exchange for cash at the primary market. (d) Market closing price in HKD. Market returns are calculated using historical market closing prices of the ETF in the secondary market. They do not represent the returns you would receive if you trade units at other times. (e) Sub-Fund inception date is 13 July (a) (b) (c) (d) (e) ETF Source: BOCI-Prudential Asset Management Ltd., Bloomberg 2

5 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 ETFs Fund Activities In the first half of Year 2010, the WISE-CSI300 China Tracker (the Fund ) continued to attract great interest in the A- share market from investors. As of 30 June 2010, the units outstanding stood at 169,600,000 units. The WISE-CSI300 China Tracker fund had exposure to 160 stocks out of the 300 constituents in the CSI300 Index. 300 A 169,600, Index Activities The CSI300 Index underwent one regular semi-annual review during the first half year of In particular, the details of the regular index review are summarized in Figure Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 1-Jul Guilin Sanjin Pharmaceutical Huatai Securities 1-Jul Jiangsu Hengrui Medicine Co Ltd China Merchants Securities 1-Jul Tian Di Science & Technology Co Ltd Everbright Securities 1-Jul Shanghai Waigaoqiao Free Trade Zone Jiangsu Yanghe Brewery 1-Jul Sinotrans Air Transportation China Shipbuilding Industry 1-Jul Beijing Wangfujing Department Store China CNR Corporation 1-Jul Xinyu Iron & Steel Co Ltd China XD Electric 1-Jul Tianjin Capital Environmental Protection BOE Technology Group 1-Jul Hunan TV & Broadcast Intermediary China National Chemical Engineering 3

6 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 ETFs Index Activities (continued) Figure 1 (continued) 1 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 1-Jul Jiangsu Wujiang China Eastern Silk Zhejiang Chint Electrics 1-Jul Shandong Haihua Liuzhou Iron & Steel Co Ltd 1-Jul China Fiber Glass Co Ltd Shenzhen Gas Corporation 1-Jul China Sports Industry China International Travel Service 1-Jul Shanghai Jinqiao Export Processing Zone Inner Mongolia Mengdian Huaneng Thermal Power Corp Ltd 1-Jul Shanghai New Huang Pu Real Estate Shanghai Pharmaceuticals 1-Jul Anxin Trust & Investment Co Ltd Anhui Xinhua Media 1-Jul Wanxiang Qianchao Jiangsu Zhongnan Construction 1-Jul Huawen Media Investment V V Food & Beverage Source: CSI CSI 4

7 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 ETFs Market Review China After the strong rally in 2009, China equities slumped severely over uncertainties in domestic tightening measures and global market volatility triggered by the European sovereign debt crisis. Massive selloffs for consecutive months sent CSI300 Index to a decline of 28.32% during the sixmonth period ended 30 June All sectors retreated as Energy and Materials plunged the most with a decline of 37.99% and 34.34% respectively. The defensive stocks, however, became the best performers as Information Technology and Healthcare sectors recorded losses of 5.01% and 6.68% respectively % 37.99% 34.34% 5.01% 6.68% On the economy front, economic indicators continued to trend up but gradually moderated. The growth in real gross domestic product (GDP) in the second quarter recorded another robust reading of 10.3% year-on-year (YoY), slightly lower than that in the first quarter of 11.9% YoY. Growth in fixed asset investment (FAI) slowed down from a high level in 2009 with a YoY growth of 25% in the first half of 2010 (1H10). Rebound in external demand and upgrade of exports structure helped exports sustain its upward momentum which advanced 35.2% YoY for 1H10. Concurrently, import growth jumped by 52.7% resulting in a trade surplus of USD 55.3 billion. Manufacturing growth showed signs of deceleration as the Purchasing Managers Index (PMI) for the manufacturing sector fell for two consecutive months to 52.1 in June from 55.7 in April while it had been staying above 50 for 16 straight months. Money supply growth dropped from the unprecedented level in 2009 while credit growth also receded on policy normalization. By the end of June, M2 recorded a YoY growth of 18.5% while new loan creation eased to RMB 4.63 trillion. Inflationary pressure persisted as the Consumer Price Index (CPI) accelerated to 3.1% YoY in May and the Producer Price Index (PPI) increased sharply by 7.1%, the quickest pace in 19 months. 10.3% 11.9% 1H10 25% 35.2% 52.7% M2 18.5% % 7.1%19 5

8 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 ETFs Market Review (continued) On the policy front, the Chinese government continued to rely on administrative measures to cool down excessive credit expansion and contain inflationary pressure. The People s Bank of China (PBoC) conducted three hikes with a total of 1.5% in Reserve Requirement Ratio (RRR) in 1H10. In mid-april the Chinese government also announced several tightening measures on the real estate sector targeting speculative housing demand, as well as to strengthen regulations over the money raising policies of property developers. Furthermore, PBoC released a statement in late June that pledged to reform the RMB exchange rate regime and enhance the exchange rate flexibility, signaling the loosening of the RMB-US dollar peg but ruled out a onetime revaluation of the currency. 1.5% Going forward, fear of slower economic growth on the back of policy tightening and weaker global demand recovery may continue to dampen market sentiment. Therefore, investor should assess their risk tolerance and the risk level of the investment product before investing. 6

9 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI HK 100 TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) 100 ETFs Fund Performance The WISE-CSI HK 100 Tracker is an index-tracking fund which seeks to track the performance of the CSI HK 100 Price Index in Hong Kong dollar ( HKD ) terms. As of 30 June 2010, the NAV per unit of the WISE-CSI HK 100 Tracker was HKD with a total of 8,000,000 units outstanding, aggregating a total asset under management ( AUM ) size of HKD 135,456, ,000,000AUM 135,456, The WISE-CSI HK 100 Tracker Fund uses a Representative Sampling Strategy and seeks to construct a portfolio with its overall capitalization, industry and fundamental investment characteristics similar to those of the CSI HK 100 Price Index. A summary of the performance tracking of the WISE-CSI HK 100 Tracker versus the CSI HK 100 Index is stated below Month 3-Month 6-Month 1-Year 3-Year 5-Year Since Inception (e) (e) CSI HK100 Price Index (a) 1.72% -5.52% -7.33% 9.81% N/A N/A % 100 (a) CSI HK100 Total Return Index (b) 2.10% -3.80% -5.48% 12.98% N/A N/A % 100 (b) WISE-CSI HK100 China Tracker NAV-to-NAV (c) 2.01% -3.60% -5.71% 10.96% N/A N/A % 100 (c) WISE-CSI HK100 China Tracker Market-to-Market (d) 2.42% -3.85% -5.67% 10.27% N/A N/A % 100 (d) (as of 30 June 2010) (a) Price Index in HKD. An Investor cannot invest directly in an index and the index performance returns do not reflect management fees, transaction costs or other expenses, which would reduce performance returns. (b) Total Return Index in HKD. (c) Unit's NAV in HKD. Units in the Sub-Fund can be created and redeemed at their NAV in exchange for cash at the primary market. (d) Market Closing Price in HKD. Market returns are calculated using historical market closing prices of the ETF in the secondary market. They do not represent the returns you would receive if you trade units at other times. (e) Sub-Fund inception date is 13 May (a) (b) (c) (d) (e) ETF Source: BOCI-Prudential Asset Management Ltd., Bloomberg 7

10 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI HK 100 TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 100 ETFs Fund Activities As of June , the WISE-CSI HK 100 Tracker fund had exposure to 75 stocks Index Activities The CSI HK 100 Index underwent one regular semi-annual review during the first half year of In particular, the details of the regular index review are summarized in Figure Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 2-Jul HK Huaneng Power 1928.HK Sands China 2-Jul HK TVB 2601.HK China Pacific 2-Jul HK China Ship 3333.HK Evergrande 2-Jul HK R&F Properties 1128.HK Wynn Macau 2-Jul HK PCCW 1211.HK BYD 2-Jul HK Shangri-La Asia 0960.HK Longfor 2-Jul HK Want Want China 0606.HK China Agr Ind 2-Jul HK ICBC Asia 0639.HK Fushan Energy 2-Jul HK Fosun Intl 1988.HK Minsheng Bank 2-Jul HK Country Garden 0489.HK Dongfeng Group Source: CSI, Bloomberg CSI 8

11 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI HK 100 TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 100 ETFs Market Review Hong Kong Hong Kong equity market went on a roller coaster ride amid uncertainties in China s tightening measures and global market volatility triggered by the European sovereign debt crisis. During the six-month period ended 30 June 2010, the CSI HK 100 Index recorded a slump of 7.33% % On the economy front, Hong Kong s GDP expanded 8.2% year-on-year (YoY) for the first quarter of year 2010, the fastest pace in four years as external demand continued to stoke consumption and revive economic growth. Exports for the first five months as a whole sustained the upward momentum as it advanced 24.7% from a year earlier. Concurrently, the value of imports rose by 32.1% YoY, resulting in a trade deficit of HKD billion. Recovery signs were also shown in labour market, where the seasonally adjusted unemployment rate during January- March slid to 4.4%, the lowest level in fourteen months, although it slightly ticked up in April-June to 4.6% YoY, probably due to recent graduates who entered the job market. Optimism on job market, together with the vibrancy in tourism, boosted consumer spending and brought retail sales to a YoY growth of 18.3% in the first five months of The combination of expanding economy and the persistent low interest rate environment added inflationary risk as Consumer Price Index (CPI) in June came in at 2.8% YoY. 8.2% % 32.1% 1, % % % 2.8% Despite of the encouraging economic indicators, local asset prices have been volatile, subject to China s tightening policy and contagion effect of euro-zone debt crisis. Going into the second half of 2010, rising uncertainty in external environment would continue to affect household and business sentiment in the near term. Investors should assess their risk tolerance and the risk level of the investment product before investing. 9

12 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-SSE 50 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 50 ETFs Fund Performance The WISE-SSE50 China Tracker is an index-tracking fund which seeks to track the performance of the SSE 50 Price Index in RMB terms. As of 30 June 2010, the NAV per unit of the WISE-SSE50 China Tracker was HKD with a total of 22,400,000 units outstanding, aggregating a total asset under management ( AUM ) size of HKD 393,648, ,400,000 AUM393,648, A summary of the performance of the WISE-SSE50 China Tracker is stated below Month 3-Month 6-Month 1-Year 3-Year 5-Year Since Inception (e) (e) SSE50 Price Index (a) -5.56% % % % N/A N/A -1.52% 50 (a) SSE50 Total Return Index (b) -5.25% % % % N/A N/A 0.33% 50 (b) WISE-SSE50 China Tracker NAV-to-NAV (c) -4.97% % % % N/A N/A -4.86% 50 (c) WISE-SSE50 China Tracker Market-to-Market (d) -2.45% % % % N/A N/A 3.51% 50 (d) (as of 30 June 2010) (a) Price Index in RMB. An Investor cannot invest directly in an index and the index performance returns do not reflect management fees, transaction costs or other expenses, which would reduce performance returns. (b) Total Return Index in RMB (c) Unit s NAV in HKD. Units in the Sub-Fund can be created and redeemed at their NAV in exchange for cash at the primary market. (d) Market Closing Price in HKD. Market returns are calculated using historical market closing prices of the ETF in the secondary market. They do not represent the returns you would receive if you trade units at other times. (e) Sub-Fund inception date is 9 Apr (a) (b) (c) (d) (e) ETF Source: BOCI-Prudential Asset Management Ltd., Bloomberg 10

13 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-SSE 50 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 50 ETFs Fund Activities During the first half of Year 2010, WISE-SSE50 China Tracker (the Fund ) continued to attract wide interest from investors seeking to get exposure to A-share market. The units outstanding as of 30 June 2010 were 22,400,000 units. The WISE-SSE50 China Tracker fund had exposure to all of the 50 constituents in the SSE50 Index. 50 A 22,400, Index Activities The SSE50 Index underwent one regular semi-annual review during the first half year of In particular, the details of the regular index review are summarized in Figure Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 2-Jul Shanghai International Port Metallurgical Corporation of China 2-Jul China Southern Airlines Company Shanxi Lu an Environmental Energy 2-Jul Shanghai Zhenhua Heavy Industries Everbright Securities 2-Jul Heilongjiang Agriculture Co Ltd China Citic Bank Corporation Limited Source: CSI CSI 11

14 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-SSE 50 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 50 ETFs Market Review China After the strong rally in 2009, China equities slumped severely over uncertainties in domestic tightening measures and global market volatility as triggered by the European sovereign debt crisis. Massive selloffs for consecutive months sent SSE50 Index to a decline of 28.77% during the sixmonth period ended 30 June % On the economy front, economic indicators continued to trend up but gradually moderated. The growth in real gross domestic product (GDP) in the second quarter recorded another robust reading of 10.3% year-on-year (YoY), slightly lower than that in the first quarter of 11.9% YoY. Growth in fixed asset investment (FAI) slowed down from a high level in 2009 with a YoY growth of 25% in the first half of 2010 (1H10). Rebound in external demand and upgrade of exports structure helped exports sustain its upward momentum which advanced 35.2% YoY for 1H10. Concurrently, import growth jumped by 52.7% resulting in a trade surplus of USD 55.3 billion. Manufacturing growth showed signs of deceleration as the Purchasing Managers Index (PMI) for the manufacturing sector fell for two consecutive months to 52.1 in June from 55.7 in April while it had been staying above 50 for 16 straight months. Money supply growth dropped from the unprecedented level in 2009 while credit growth also receded on policy normalization. By the end of June, M2 recorded a YoY growth of 18.5% while new loan creation eased to RMB 4.63 trillion. Inflationary pressure persisted as the Consumer Price Index (CPI) accelerated to 3.1% YoY in May and the Producer Price Index (PPI) increased sharply by 7.1%, the quickest pace in 19 months. 10.3% 11.9% (1H10)25% 35.2% 52.7% M2 18.5% % 7.1%19 12

15 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-SSE 50 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 50 ETFs Market Review (continued) On the policy front, the Chinese government continued to rely on administrative measures to cool down excessive credit expansion and contain inflationary pressure. The People s Bank of China (PBoC) conducted three hikes with a total of 1.5% in Reserve Requirement Ratio (RRR) in 1H10. In mid-april the Chinese government also announced several tightening measures on the real estate sector targeting speculative housing demand, as well as to strengthen regulations over the money raising policies of property developers. Furthermore, PBoC released a statement in late June that pledged to reform the RMB exchange rate regime and enhance the exchange rate flexibility, signaling the loosening of the RMB-US dollar peg but ruled out a onetime revaluation of the currency. 1.5% Going forward, fear of slower economic growth on the back of policy tightening and weaker global demand recovery may continue to dampen market sentiment. Therefore, investor should assess their risk tolerance and the risk level of the investment product before investing. 13

16 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 W.I.S.E.-CSI 300 China Tracker W.I.S.E.-CSI HK 100 Tracker to to to to HKD HKD HKD HKD INCOME Dividend income 33,792,416 62,388,023 2,571,402 3,201,492 Interest income 1, Other income 15 33,793,679 62,389,258 2,571,454 3,201,642 EXPENSE Auditor s remuneration 123, ,500 Legal & professional fee 66,854 2,477,826 Formation costs Maintenance fee 7,420,266 14,115,958 Management fee 28,272,939 61,189, ,214 1,168,950 Custodian and bank charges 850,212 2,643,337 Transaction costs on investments 12,384,615 34,528,028 Transaction handling fee 26,400 1,600 73, ,713 Other expenses 8,318,775 10,689,612 57,464, ,900, ,828 1,271,663 NET (LOSS) PROFIT BEFORE INVESTMENT AND EXCHANGE GAIN (LOSS) (23,670,355) (63,510,757) 1,815,626 1,929,979 NET INVESTMENT AND EXCHANGE GAIN (LOSS) Net exchange gain (loss) 33,021 (9,823) 1, Realised gain/(loss) on sale of investments 4,017, ,034,369 1,815,885 (5,013,200) Uunrealised appreciation (diminution) in value of investments (1,760,016,292) 3,331,533,338 (11,830,232) 55,316,795 (1,755,965,706) 3,478,557,884 (10,012,704) 50,303,739 PROFIT (LOSS) FOR THE PERIOD AND TOTAL COMPREHENSIVE INCOME AND EXPENSE FOR THE PERIOD (1,779,636,061) 3,415,047,127 (8,197,078) 52,233,718 14

17 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 W.I.S.E.-SSE 50 China Tracker (Date of inception) to to HKD HKD INCOME Dividend income 3,161,146 3,432,029 Interest income 80 Other income 3,161,226 3,432,029 EXPENSE Auditor s remuneration Legal & professional fee 21,406 31,690 Formation costs 1,622,137 Maintenance fee 1,056,286 1,260,373 Management fee 2,064,326 2,323,452 Custodian and bank charges Transaction costs on investments 941,689 2,157,834 Transaction handling fee 8, Other expenses 35,917 11,381 4,127,624 7,407,667 NET (LOSS) PROFIT BEFORE INVESTMENT AND EXCHANGE GAIN (LOSS) (966,398) (3,975,638) NET INVESTMENT AND EXCHANGE GAIN (LOSS) Net exchange gain (loss) 4,528 (169) Realised gain/(loss) on sale of investments (3,164,962) 17,400,334 Uunrealised appreciation (diminution) in value of investments (144,713,956) 68,645,925 (147,874,390) 86,046,090 PROFIT (LOSS) FOR THE PERIOD AND TOTAL COMPREHENSIVE INCOME AND EXPENSE FOR THE PERIOD (148,840,788) 82,070,452 15

18 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT 30th JUNE 2010 W.I.S.E.-CSI 300 China Tracker W.I.S.E.-CSI HK 100 Tracker HKD HKD HKD HKD CURRENT ASSETS Bank balances 65,627, ,422,960 1,855,067 1,201,162 Investments 4,445,947,263 6,564,454, ,271, ,303,397 Amount due from brokers 11,988,797 Dividend and other receivables 8,409, , ,106 Prepayments 14,869 18,778 13,982 17,891 Total current assets 4,519,998,971 6,720,896, ,872, ,699,556 CURRENT LIABILITIES Distribution payable 800,000 Management fee payable 4,866,721 7,821, , ,673 Amount due to brokers 13,162,750 Other accounts payable and accruals 15,216,586 17,892,659 20,434 7,367 Total Current liabilities 20,083,307 25,713,904 13,415,977 1,046,040 Net current assets 4,499,915,664 6,695,182, ,456, ,653,516 Units 5,507,386,320 5,923,016, ,743, ,743,200 Retained earnings (1,007,470,656) 772,165,405 (30,286,762) (22,089,684) TOTAL EQUITY 4,499,915,664 6,695,182, ,456, ,653,516 Units in issue 169,600, ,000,000 8,000,000 8,000,000 Net asset value per unit

19 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF FINANCIAL POSITION (UNAUDITED) (continued) AS AT 30th JUNE 2010 W.I.S.E.-SSE 50 China Tracker HKD HKD CURRENT ASSETS Bank balances 2,263,781 8,476,634 Investments 387,398, ,107,102 Amount due from brokers Dividend and other receivables 4,907,303 Prepayments 13,550 17,632 Total current assets 394,583, ,601,368 CURRENT LIABILITIES Distribution payable Management fee payable 399, ,211 Amount due to brokers Other accounts payable and accruals 534, ,585 Total Current liabilities 934,458 1,111,796 Net current assets 393,648, ,489,572 Units 460,419, ,419,120 Retained earnings (66,770,336) 82,070,452 TOTAL EQUITY 393,648, ,489,572 Units in issue 22,400,000 22,400,000 Net asset value per unit

20 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 W.I.S.E.-CSI 300 China Tracker 300 Retained Units earnings Total HKD HKD HKD Balance 1 January 2009 / Date of inception 6,646,099,120 (2,642,881,722) 4,003,217,398 Profit for the year and total comprehensive income 3,415,047,127 3,415,047,127 Proceeds on issue of units 3,341,240,880 3,341,240,880 Payments on redemption of units (4,064,323,200) (4,064,323,200) Distributions Balance 31 December ,923,016, ,165,405 6,695,182,205 Balance 1 January ,923,016, ,165,405 6,695,182,205 (Loss) for the year and total comprehensive expense (1,779,636,061) (1,779,636,061) Proceeds on issue of units 217,007, ,007,440 Payments on redemption of units (632,637,920) (632,637,920) Distributions Balance 30 June ,507,386,320 (1,007,470,656) 4,499,915,664 Number of units in issue W.I.S.E.-CSI 300 China Tracker to to Units Units Units in issue at the beginning of the period 184,000, ,000,000 Issue of units 6,400, ,000,000 Redemption of units (20,800,000) (124,000,000) Units in issue at the end of the period 169,600, ,000,000 18

21 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF CHANGES IN EQUITY (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 W.I.S.E.-CSI HK 100 Tracker 100 Retained Units earnings Total HKD HKD HKD Balance 1 January 2009 / Date of inception 165,743,200 (73,523,402) 92,219,798 Profit for the year and total comprehensive income 52,233,718 52,233,718 Proceeds on issue of units Payments on redemption of units Distributions (800,000) (800,000) Balance 31 December ,743,200 (22,089,684) 143,653,516 Balance 1 January ,743,200 (22,089,684) 143,653,516 (Loss) for the year and total comprehensive expense (8,197,078) (8,197,078) Proceeds on issue of units Payments on redemption of units Distributions Balance 30 June ,743,200 (30,286,762) 135,456,438 Number of units in issue W.I.S.E.-CSI HK 100 Tracker to to Units Units Units in issue at the beginning of the period 8,000,000 8,000,000 Issue of units Redemption of units Units in issue at the end of the period 8,000,000 8,000,000 19

22 W.I.S.E.-CSI 300 CHINA TRACKER, W.I.S.E.-CSI HK 100 TRACKER AND W.I.S.E.-SSE 50 CHINA TRACKER (Sub-funds of World Index Shares ETFs) ETFs STATEMENT OF CHANGES IN EQUITY (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 W.I.S.E.-SSE 50 China Tracker 50 Retained Units earnings Total HKD HKD HKD Balance 1 January 2009 / Date of inception Profit for the year and total comprehensive income 82,070,452 82,070,452 Proceeds on issue of units 460,419, ,419,120 Payments on redemption of units Distributions Balance 31 December ,419,120 82,070, ,489,572 Balance 1 January ,419,120 82,070, ,489,572 (Loss) for the year and total comprehensive expense (148,840,788) (148,840,788) Proceeds on issue of units Payments on redemption of units Distributions Balance 30 June ,419,120 (66,770,336) 393,648,784 Number of units in issue W.I.S.E.-SSE 50 China Tracker (Date of inception) to to Units Units Units in issue at the beginning of the period 22,400,000 Issue of units 22,400,000 Redemption of units Units in issue at the end of the period 22,400,000 22,400,000 20

23 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs INVESTMENT PORTFOLIO (UNAUDITED) AS AT 30th JUNE 2010 % of net asset Fair value Securities name value (%) AXPs* issued by PDs AXP* China HKD Advanced Technology & Materials Co Ltd 725,040 12,196, Air China Ltd 1,823,200 21,512, Aluminum Corp of China Ltd 1,992,800 20,931, Angang Steel Co Ltd 1,759,600 14,487, Anhui Conch Cement Co Ltd 1,420,400 26,239, Anhui Jianghuai Automobile Co Ltd 2,480,400 18,800, AnXin Trust & Investment Co Ltd 1,017,600 15,869, Bank of Beijing Co Ltd 4,494,400 62,463, Bank of China Ltd 7,271,600 28,183, Bank of Communications Co Ltd 18,931, ,253, Bank Of Nanjing Co Ltd 1,568,800 18,061, Bank of Ningbo Co Ltd 1,187,200 15,002, Baoding Tianwei Baobian Electric Co Ltd 402,800 8,706, Baoshan Iron & Steel Co Ltd 5,109,200 34,273, Beijing North Star Co 2,120,000 8,921, Beijing Yanjing Brewery-A A 1,060,000 24,054, Beiqi Foton Motor Co Ltd 1,187,200 23,374, Changjiang Securities Co Ltd 1,441,600 17,853, Changsha Zoomlion Heavy Industry Science and 638,120 11,890, Technology Development Co Ltd China Baoan Group Co Ltd 1,272,000 12,529, China CNR Corp Ltd 2,925,600 16,237, China Coal Energy Co 2,756,000 26,420, China Construction Bank Corp 10,239,600 55,186, China COSCO Co Ltd 3,158,800 31,585, China CSSC Ltd 296,800 18,861, China Life Insurance Co Ltd 1,314,400 37,213, China Merchants Bank Co Ltd 11,664, ,746, China Minsheng Banking Corp Ltd 18,338, ,220, China Pacific Insurance Group Co Ltd 2,777,200 72,545, China Petroleum & Chemical Corp 3,731,200 33,458, China Railway Construction Corp Ltd 4,685,200 38,628, China Railway Erju Co Ltd 2,098,800 19,494, China Railway Group Ltd 5,978,400 28,381, China Resources Sanjiu Medical & Pharmaceutical Co Ltd 657,200 17,295, China Shenhua Energy Co Ltd 2,544,000 63,799,

24 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs INVESTMENT PORTFOLIO (UNAUDITED) (continued) AS AT 30TH JUNE 2010 % of net asset Fair value Securities name value (%) AXPs* issued by PDs (continued) AXP* HKD China (continued) China South Locomotive and Rolling Stock Corp 2,946,800 16,185, China Southern Airlines Co Ltd 2,862,000 20,577, China State Construction Engineering Corp Ltd 7,738,000 31,144, China United Network Communications Ltd 7,462,400 45,523, China Vanke Co Ltd 8,649,600 67,148, China Yangtze Power Co Ltd 3,519,200 50,362, CITIC Guoan Information Industry Co Ltd 911,600 11,519, CITIC Securities Co Ltd/China 6,455,400 86,682, COSCO Shipping Co Ltd 1,441,600 11,852, Daqin Railway Co Ltd 4,558,000 42,649, Dashang Group Co Ltd 466,400 22,622, Datong Coal Industry Co Ltd 784,400 25,158, Dongfang Electric Corp Ltd 275,600 13,753, Everbright Securities Co Ltd 742,000 13,001, Financial Street Holding Co Ltd 3,794,800 36,160, Founder Technology Group Corp 5,787,600 31,656, Fuyao Glass Industry Group Co Ltd 2,113,428 21,544, Gansu Jiu Steel Group Hongxing Iron & Steel Co Ltd 1,823,200 16,788, Gansu Yasheng Industrial Group Co-A 3,158,800 15,756, A GD Midea Holding Co Ltd 2,257,800 29,463, GD Power Development Co Ltd 6,317,600 23,616, Gemdale Corp 4,468,960 31,003, Gezhouba Co Ltd 1,335,600 15,958, Gree Electric Appliances Inc 1,383,300 29,821, Guangshen Railway Co Ltd 4,982,000 20,109, Guangzhou Shipyard International Co Ltd 1,060,000 21,186, Guoyuan Securities Co Ltd 996,400 13,790, Haitong Securities Co Ltd 3,582,800 37,222, Harbin Pharmaceutical Group Co Ltd 1,081,200 22,924, Hebei Iron & Steel Co Ltd 6,782,304 28,853, Heilongjiang Agriculture Co 1,378,000 18,029, Henan Shen Huo Coal Industry & Electricity Power Co Ltd 786,520 15,061, Hong Yuan Securities Co Ltd 1,187,200 19,916,

25 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs INVESTMENT PORTFOLIO (UNAUDITED) (continued) AS AT 30TH JUNE 2010 % of net asset Fair value Securities name value (%) AXPs* issued by PDs (continued) AXP* HKD China (continued) Huafa Industrial Co Ltd Zhuhai 1,802,000 21,118, Hualan Biological Engineering Inc 275,600 14,243, Huaneng Power International Inc 2,607,600 18,957, Huayu Automotive Systems Co Ltd 1,611,200 14,891, Hubei Yihua Chemical IND 1,378,000 20,131, Industrial & Commercial Bank of China 15,327,600 71,183, Industrial Bank Co Ltd 3,985, ,208, Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co Ltd 593,600 24,150, Inner Mongolia Pingzhuang Energy Co Ltd 1,060,000 10,210, Jiangsu Sunshine Co Ltd 2,310,800 13,354, Jiangxi Copper Co Ltd 869,200 23,990, Jiaozuo Wanfang Aluminum Manufacturing Co Ltd 1,123,600 21,787, Jilin Aodong Medicine Industry Groups Co Ltd 402,800 12,263, Jilin Yatai Group Co Ltd 2,385,000 16,710, Joincare Pharmaceutical Group Industry Co Ltd 2,315,040 19,246, Kailuan Energy Chemical Co Ltd 699,600 10,493, Kangmei Pharmaceutical Co Ltd 1,060,000 14,914, Kweichow Moutai Co Ltd 360,400 52,605, Liaoning Cheng Da Co Ltd 805,600 23,186, Liaoning Huajin Tongda Chemicals Co Ltd 2,098,800 18,579, Luzhou Laojiao Co Ltd 593,600 19,208, Milord Real Estate Development Group Co Ltd 3,101,560 11,167, Minmetals Development Co Ltd 1,378,000 22,248, Pacific Securities Co Ltd/China 1,378,000 17,223, PetroChina Co Ltd 4,176,400 49,088, Ping An Insurance Group Co of China Ltd 2,565, ,633, Pingdingshan Tianan Coal Mining Co Ltd 2,078,024 31,144, Poly Real Estate Group Co Ltd 2,488,668 29,193, Qingdao Haier Co Ltd 1,123,600 24,609, Qinghai Salt Lake Potash Co 593,600 26,546, SAIC Motor Corp Ltd 1,401,320 19,636, Sany Heavy Industry Co Ltd 1,367,400 28,662, SDIC Huajing Power Co Ltd 1,378,000 11,140,

26 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs INVESTMENT PORTFOLIO (UNAUDITED) (continued) AS AT 30TH JUNE 2010 % of net asset Fair value Securities name value (%) AXPs* issued by PDs (continued) AXP* China (continued) Shandong Dong-E E-Jiao-A A 678,400 26,954, Shandong Gold Mining Co Ltd 826,800 34,510, Shanghai AJ Corp 1,378,000 11,866, Shanghai Chengtou Holding Co Ltd 1,950,400 19,077, Shanghai Electric Group Co Ltd 1,399,200 10,910, Shanghai Fosun Pharmaceutical Group Co Ltd 975,200 19,547, Shanghai International Airport Co Ltd 1,060,000 14,440, Shanghai Mechanical and Electrical Industry Co Ltd 2,650,000 28,351, Shanghai New Huangpu Real Estate Co Ltd 530,000 5,366, Shanghai Pharmaceuticals Holding Co Ltd 742,000 13,919, Shanghai Pudong Development Bank 6,608, ,908, Shanghai Tunnel Engineering Co Ltd 1,293,200 12,411, Shanghai Yuyuan Tourist Mart Co Ltd 1,135,472 28,840, Shantui Construction Machinery Co Ltd 1,632,400 20,534, Shanxi Guoyang New Energy Co Ltd 1,017,600 15,181, Shanxi Lu'an Environmental Energy Development Co Ltd 593,600 21,107, Shanxi Taigang Stainless Steel Co 2,925,600 17,008, Shanxi Xishan Coal & Electricity Power Co Ltd 1,157,520 24,091, Shenergy Co Ltd 3,540,400 31,219, Shenzhen Airport Co 2,904,400 17,484, Shenzhen Development Bank Co 2,783,560 55,890, Shenzhen Energy Group Co Ltd 1,780,800 19,440, Shenzhen Overseas Chinese Town Co 1,314,400 16,579, Shenzhen Zhongjin Lingnan Nonfemet Co Ltd 1,708,720 25,354, Shunfa Hengye Corp 1,144,800 8,033, Sichuan Changhong Electric Co Ltd 3,243,600 13,687, Sichuan Hongda Co Ltd 932,800 11,038, Sichuan Swellfun Co Ltd 1,102,400 23,259, Sinochem International Corp 2,395,600 24,503, Southwest Securities Co Ltd 954,000 13,335, Suning Appliance Co Ltd 4,595,100 60,016, Suning Universal Co Ltd 1,886,800 18,693, Tangshan Jidong Cement Co 1,250,800 21,385, TBEA Co Ltd 954,000 16,037, Tianjin Port Co Ltd 1,759,600 16,747, HKD 24

27 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs INVESTMENT PORTFOLIO (UNAUDITED) (continued) AS AT 30TH JUNE 2010 % of net asset Fair value Securities name value (%) AXPs* issued by PDs (continued) AXP* China (continued) HKD Tongling Nonferrous Metals Group Co Ltd 784,400 13,042, Tsinghua Tongfang Co Ltd 983,680 23,732, Tsingtao Brewery Co Ltd 360,400 13,621, Weichai Power Co Ltd 487,600 34,380, Western Mining Co Ltd 1,462,800 16,404, Wuhan Iron & Steel Co Ltd 3,349,600 16,401, Wuliangye Yibin Co Ltd 1,759,600 48,869, XCMG Construction Machinery Co Ltd 466,400 16,381, Xiamen C & D Inc 1,420,400 18,470, Xi an Aircraft International Corp 1,208,400 13,565, Xinjiang Goldwind Science & Technology Co Ltd 1,157,520 20,639, Xinjiang Guanghui Industry Co Ltd 672,040 21,438, Xinxing Ductile Iron Pipes 2,811,120 20,082, Yantai Wanhua Polyurethanes Co Ltd 1,420,400 23,763, Yanzhou Coal Mining Co Ltd 1,420,400 26,711, Yunnan Baiyao Group Co Ltd 190,800 14,109, Yunnan Copper Industry Co 424,000 8,698, Zhejiang China Commodities City Group Co Ltd 699,600 15,683, Zhejiang Medicine Co Ltd 614,800 18,097, Zhejiang Xinan Chemical Industrial Group Co Ltd 979,440 11,107, Zhengzhou Yutong Bus Co Ltd 826,800 14,136, Zhongjin Gold Co Ltd 487,600 28,638, Zijin Mining Group Co Ltd 3,922,000 27,253, ZTE Corp 1,653,600 36,482, ,468,908, Total investments 4,468,908, Tax (22,960,742) (0.51) Other net assets 53,968, Net assets attributable to unitholders 4,499,915, Total investments, at cost 5,263,603,765 * AXP A Share access products, being a security (including without limitation, warrant, note or participation certificate) linked to an A Share or a Basket of A Shares. * AXP AA A 25

28 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 AXPs* issued by PDs AXP* China Additions Bonus Disposals Advanced Technology & Materials Co Ltd 448, ,120 (74,480) 725,040 Air China Ltd 1,978,000 68,800 (223,600) 1,823,200 Aluminum Corp of China Ltd 2,162,000 75,200 (244,400) 1,992,800 Angang Steel Co Ltd 1,909,000 66,400 (215,800) 1,759,600 Anhui Conch Cement Co Ltd 908,500 31, ,400 (357,100) 1,420,400 Anhui Jianghuai Automobile Co Ltd 2,691,000 93,600 (304,200) 2,480,400 AnXin Trust & Investment Co Ltd 1,132,800 (115,200) 1,017,600 Bank of Beijing Co Ltd 4,876, ,600 (551,200) 4,494,400 Bank of China Ltd 13,064, ,900 (6,089,300) 7,271,600 Bank of Communications Co Ltd 20,999,000 3,094,400 (5,161,800) 18,931,600 Bank Of Nanjing Co Ltd 1,568,800 1,568,800 Bank of Ningbo Co Ltd 1,187,200 1,187,200 Baoding Tianwei Baobian Electric Co Ltd 437,000 15,200 (49,400) 402,800 Baoshan Iron & Steel Co Ltd 5,543, ,800 (626,600) 5,109,200 Beijing North Star Co 2,300,000 80,000 (260,000) 2,120,000 Beijing Yanjing Brewery-A 1,610,000 56,000 (606,000) 1,060,000 A Beiqi Foton Motor Co Ltd 2,070,000 72,000 (954,800) 1,187,200 Changjiang Securities Co Ltd 1,441,600 1,441,600 Changsha Zoomlion Heavy Industry Science 692,300 24,080 (78,260) 638,120 and Technology Development Co Ltd Chengdu Dr Peng Telecom & Media Group Co Ltd 495,600 (495,600) Chenzhou Mining Group Co Ltd 401,200 (401,200) China Baoan Group Co Ltd 1,272,000 1,272,000 China CNR Corp Ltd 2,925,600 2,925,600 China Coal Energy Co 2,990, ,000 (338,000) 2,756,000 26

29 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 AXPs* issued by PDs (continued) AXP* Additions Bonus Disposals China (continued) China Construction Bank Corp 11,109, ,400 (1,255,800) 10,239,600 China COSCO Co Ltd 3,427, ,200 (387,400) 3,158,800 China CSSC Ltd 460,000 16,000 (179,200) 296,800 China Dongfanghong Spacesat Co Ltd 214, ,800 (423,000) China Life Insurance Co Ltd 1,771,000 51,100 (507,700) 1,314,400 China Merchants Bank Co Ltd 11,688,600 1,964,160 (1,988,520) 11,664,240 China Merchants Property Development Co Ltd 621,000 21,600 (642,600) China Minsheng Banking Corp Ltd 22,080, ,900 (4,479,900) 18,338,000 China Pacific Insurance Group Co Ltd 3,013, ,800 (340,600) 2,777,200 China Petroleum & Chemical Corp 5,014, ,000 (1,427,800) 3,731,200 China Railway Construction Corp Ltd 3,197,000 3,179,200 (1,691,000) 4,685,200 China Railway Erju Co Ltd 2,277,000 79,200 (257,400) 2,098,800 China Railway Group Ltd 6,486, ,600 (733,200) 5,978,400 China Resources Sanjiu Medical & 1,219,000 42,400 (604,200) 657,200 Pharmaceutical Co Ltd China Shenhua Energy Co Ltd 3,565,000 99,500 (1,120,500) 2,544,000 China Shipping Development Co Ltd 1,886,000 32,700 (1,918,700) China South Locomotive and Rolling Stock Corp 2,946,800 2,946,800 China Southern Airlines Co Ltd 2,415,000 3,340,800 (2,893,800) 2,862,000 China Sports Industry Group Co Ltd 519,200 (519,200) 27

30 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 AXPs* issued by PDs (continued) AXP* Additions Bonus Disposals China (continued) China State Construction Engineering Corp Ltd 7,738,000 7,738,000 China United Network Communications Ltd 10,074, ,200 (2,901,800) 7,462,400 China Vanke Co Ltd 10,373, ,700 (2,054,100) 8,649,600 China Yangtze Power Co Ltd 4,669, ,500 (1,286,300) 3,519,200 CITIC Guoan Information Industry Co Ltd 989,000 34,400 (111,800) 911,600 CITIC Securities Co Ltd/China 5,635, ,600 2,151,800 (1,498,000) 6,455,400 COSCO Shipping Co Ltd 1,564,000 54,400 (176,800) 1,441,600 Daqin Railway Co Ltd 1,702,000 4,236,400 (1,380,400) 4,558,000 Dashang Group Co Ltd 690,000 24,000 (247,600) 466,400 Datong Coal Industry Co Ltd 851,000 29,600 (96,200) 784,400 Dongfang Electric Corp Ltd 275, ,600 Everbright Securities Co Ltd 742, ,000 Financial Street Holding Co Ltd 4,117, ,200 (465,400) 3,794,800 Founder Technology Group Corp 6,279, ,400 (709,800) 5,787,600 Fuyao Glass Industry Group Co Ltd 2,292,870 79,752 (259,194) 2,113,428 Gansu Jiu Steel Group Hongxing Iron & 1,978,000 68,800 (223,600) 1,823,200 Steel Co Ltd Gansu Yasheng Industrial Group Co-A 3,427, ,200 (387,400) 3,158,800 A GD Midea Holding Co Ltd 1,633,000 56, ,550 (216,550) 2,257,800 GD Power Development Co Ltd 3,427, ,200 3,367,400 (596,000) 6,317,600 Gemdale Corp 3,979, ,000 2,549,280 (2,175,320) 4,468,960 Gezhouba Co Ltd 1,449,000 50,400 (163,800) 1,335,600 28

31 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 AXPs* issued by PDs (continued) AXP* Additions Bonus Disposals China (continued) Gree Electric Appliances Inc 1,500,750 52,200 (169,650) 1,383,300 Guangshen Railway Co Ltd 5,405, ,000 (611,000) 4,982,000 Guangzhou Shipyard International Co Ltd 1,564,000 54,400 (558,400) 1,060,000 Guilin Sanjin Pharmaceutical Co Ltd 283,200 (283,200) Guizhou Panjiang Refined Coal Co Ltd 424,800 (424,800) Guoyuan Securities Co Ltd 996, ,400 Hainan Airlines Co Ltd 2,645,000 68,200 (2,713,200) Haitong Securities Co Ltd 3,887, ,200 (439,400) 3,582,800 Harbin Pharmaceutical Group Co Ltd 1,610,000 56,000 (584,800) 1,081,200 Hebei Iron & Steel Co Ltd 7,358, ,936 (831,792) 6,782,304 Heilongjiang Agriculture Co 1,534,000 (156,000) 1,378,000 Henan Shenhuo Coal & Power Co Ltd 609,500 21, ,200 (77,380) 786,520 Hong Yuan Securities Co Ltd 1,288,000 44,800 (145,600) 1,187,200 Huafa Industrial Co Ltd Zhuhai 1,955,000 68,000 (221,000) 1,802,000 Hualan Biological Engineering Inc 275, ,600 Huaneng Power International Inc 2,829,000 98,400 (319,800) 2,607,600 Huawen Media Investment Corp 991,200 (991,200) Huayu Automotive Systems Co Ltd 1,748,000 60,800 (197,600) 1,611,200 Hubei Yihua Chemical IND 1,495,000 52,000 (169,000) 1,378,000 Hunan TV & Broadcast Intermediary Co Ltd 472,000 (472,000) Huolinhe Opencut Coal Industry Corp 259,600 48,400 (308,000) 29

32 W.I.S.E.-CSI 300 China Tracker (A Sub-fund of World Index Shares ETFs) 300 ETFs STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) FOR THE PERIOD FROM 1st JANUARY 2010 TO 30th JUNE 2010 AXPs* issued by PDs (continued) AXP* Additions Bonus Disposals China (continued) Industrial & Commercial Bank of China 16,629, ,400 (1,879,800) 15,327,600 Industrial Bank Co Ltd 4,025, ,000 (949,400) 3,985,600 Inner Mongolia Baotou Steel Rare-Earth 644,000 22,400 (72,800) 593,600 Hi-Tech Co Ltd Inner Mongolia Pingzhuang Energy Co Ltd 1,180,000 (120,000) 1,060,000 Jiangsu Sunshine Co Ltd 2,507,000 87,200 (283,400) 2,310,800 Jiangxi Copper Co Ltd 552, ,400 (103,200) 869,200 Jiaozuo Wanfang Aluminum Manufacturing Co Ltd 1,219,000 42,400 (137,800) 1,123,600 Jilin Aodong Medicine Industry Groups Co Ltd 402, ,800 Jilin Yatai Group Co Ltd 2,587,500 90,000 (292,500) 2,385,000 Joincare Pharmaceutical Group Industry Co Ltd 2,737,000 88, ,140 (923,440) 2,315,040 Joyoung Co Ltd 401, ,100 (593,300) Kailuan Energy Chemical Co Ltd 759,000 26,400 (85,800) 699,600 Kangmei Pharmaceutical Co Ltd 1,060,000 1,060,000 Kweichow Moutai Co Ltd 483,000 14,000 (136,600) 360,400 Liaoning Cheng Da Co Ltd 782, ,000 (785,400) 805,600 Liaoning Huajin Tongda Chemicals Co Ltd 2,277,000 79,200 (257,400) 2,098,800 Luzhou Laojiao Co Ltd 644,000 22,400 (72,800) 593,600 Milord Real Estate Development Group Co Ltd 1,771,000 61,600 1,483,020 (214,060) 3,101,560 Minmetals Development Co Ltd 1,495,000 52,000 (169,000) 1,378,000 Pacific Securities Co Ltd/China 1,488,400 (110,400) 1,378,000 PetroChina Co Ltd 5,060, ,900 (1,043,500) 4,176,400 Ping An Insurance Group Co of China Ltd 3,266,000 98,900 (799,700) 2,565,200 30