未命名-1

Transcription

1 Annual Report As of 31 December 2016 ETFs World Index Shares ETFs Fund Manager and Report Issuer BOCI-Prudential Asset Management

2 W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF), W.I.S.E.-CSI HK 100 TRACKER TM, W.I.S.E.-SSE 50 CHINA TRACKER, W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER AND W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUNDS OF WORLD INDEX SHARES ETFs) 300 * * 100 TM 50 ETFs CONTENTS PAGE(S) MANAGEMENT AND ADMINISTRATION 1 REPORT OF THE MANAGER TO THE UNITHOLDERS 2 REPORT OF THE TRUSTEE TO THE UNITHOLDERS 25 INDEPENDENT AUDITOR S REPORT 26 AUDITED FINANCIAL STATEMENTS STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 34 STATEMENTS OF FINANCIAL POSITION 39 STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 44 STATEMENTS OF CASH FLOWS 49 NOTES TO THE FINANCIAL STATEMENTS 54 W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) 300 * * INVESTMENT PORTFOLIO 100 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 127 HOLDINGS OF COLLATERAL 173 PERFORMANCE TABLE 174 W.I.S.E.-CSI HK 100 TRACKER TM 100 TM INVESTMENT PORTFOLIO 175 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 179 PERFORMANCE TABLE 185 W.I.S.E.-SSE 50 CHINA TRACKER 50 INVESTMENT PORTFOLIO 186 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 189 PERFORMANCE TABLE 193 W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER INVESTMENT PORTFOLIO 194 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 196 PERFORMANCE TABLE 199 W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER INVESTMENT PORTFOLIO 200 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS 201 PERFORMANCE TABLE 203

3 W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF), W.I.S.E.-CSI HK 100 TRACKER TM, W.I.S.E.-SSE 50 CHINA TRACKER, W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER AND W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUNDS OF WORLD INDEX SHARES ETFs) 300 * * 100 TM 50 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 Guy Robert Strapp Julian Christopher Vivian Pull TRUSTEE AND CUSTODIAN BOCI-Prudential Trustee Limited 12/F & 25/F, Citicorp Centre 18 Whitfield Road Causeway Bay Hong Kong Standard Chartered Bank (China) Limited 28/F, Standard Chartered Tower 201 Century Avenue Pudong Shanghai China AUDITORS Ernst & Young 22/F, CITIC Tower 1 Tim Mei Avenue Central, Hong Kong REGISTRAR Computershare Hong Kong Investor Services Limited 46/F, Hopewell Centre 183 Queen s Road East Wanchai Hong Kong CONVERSION AND SERVICE AGENT HK Conversion Agency Services Limited 1/F One & Two Exchange Square 8 Connaught Place Central Hong Kong LEGAL ADVISER TO THE MANAGER Baker & McKenzie 23/F, One Pacific Place 88 Queensway Hong Kong 1 27 Guy Robert Strapp Julian Christopher Vivian Pull

4 REPORT OF THE MANAGER TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) 300 * * ETFs Fund Performance The W.I.S.E.- CSI 300 China Tracker * (*This is a synthetic ETF) ( WISE-CSI300 or the Sub-Fund ) is an indextracking exchange traded fund which seeks to track the performance of the CSI 300 Index (the Underlying Index or CSI300 ). As of 31 December 2016, the net asset value ( NAV ) per unit of the Sub-Fund was HKD with a total of 110,400,000 units outstanding and total assets under management ( AUM ) of HKD3,296,694, * * ,400,000 AUM 3,296,694,212 The WISE-CSI300 adopts a representative sampling strategy. A summary of the performance of the WISE- CSI300 is shown below Total Return (a) YTD Since Inception (Annualized) (f) (a) (f) CSI 300 (RMB) (b) -9.47% -9.47% 7.04% 55.61% -5.33% 9.80% 0.06% 300 (b) CSI 300 (HKD) (c) % % 2.13% 51.95% -2.55% 10.78% 0.88% 300 (c) WISE-CSI300 NAV-to-NAV (d) % % 2.13% 40.27% -8.24% 7.28% -2.57% 300 (d) WISE-CSI300 Market-to-Market (e) % % 2.80% 28.29% % 5.97% -2.90% 300 (e) as of 30 December 2016 (last dealing date of December, 2016) Past performance figures shown are not indicative of the future performance of the sub-fund. Starting from 1 July 2014, CSI 300 Total Return Index is replaced with CSI 300 Net Total Return Index for index performance calculation. CSI 300 Net Total Return Index is denominated in RMB. For the purpose of performance comparison, index performance is presented in HKD and calculated by referring to the foreign exchange rates for RMB / HKD quoted by Bloomberg Bloomberg RMB (CNY) rate (Tokyo Composite) at 4:00 p.m. Hong Kong time on the corresponding dealing dates (CNY) 2

5 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Fund Performance (continued) (a) Total returns represent the rate that an investor would have earned (or lost) on an investment, assuming reinvestment of all dividends and distributions. (a) (b) The index performance in RMB calculated on a total return basis reflects returns due to both price changes and dividend income. 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) of the sub-fund. (c) The index performance in HKD calculated on a total return basis reflects returns due to both price changes and dividend income. 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 (c) of the sub-fund. (d) (e) The sub-fund performance is calculated in HKD on NAV-to-NAV basis with gross distribution reinvested. Units in the sub-fund are issued and redeemed at NAV. Market returns are calculated in HKD using historical market closing prices, and do not represent the returns you would receive if you traded units at other times. (d) (e) (f) This is the annualized return since the sub-fund inception. The sub-fund inception date is 13 July (f) Source: BOCI-Prudential Asset Management Ltd., China Securities Index Co., Ltd., Bloomberg Fund Activities As of 31 December 2016, there were 110,400,000 units outstanding in the Sub-Fund and the Sub-Fund had exposure to 297 stocks. 110,400, On 12 January 2016, the Manager announced that Moody s Investor Service, Inc. ( Moody s ) had downgraded Credit Suisse International s Long-term Issuer Rating to A2 from A1. As at the date of that Announcement, the credit ratings of Credit Suisse International remained above the minimum credit rating requirement as disclosed in the Prospectus. On 26 January 2016, the Manager announced that Moody s had downgraded Deutsche Bank AG s issuer rating and senior unsecured debt rating to Baa1 from A3. As at the date of that Announcement, the credit ratings of Deutsche Bank AG remain above the minimum credit rating requirement as disclosed in the Prospectus. Credit Suisse International A1 A2 Credit Suisse International A3 Baa1 3

6 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Fund Activities (continued) On 24 May 2016, the Manager further announced that Moody s had downgraded Deutsche Bank AG s issuer rating and senior unsecured debt rating to Baa2 from Baa1. As at the date of that Announcement, the credit ratings of Deutsche Bank AG remain above the minimum credit rating requirement as disclosed in the Prospectus. AG Baa1 Baa2 AG On 25 May 2016, the Manager announced that Fitch Ratings Limited ( Fitch ) had downgraded Credit Suisse International s Long-term Issuer Default Rating and senior unsecured debt rating to A- from A. As at the date of that Announcement, the credit ratings of Credit Suisse International remained above the minimum credit rating requirement as disclosed in the Prospectus. Credit Suisse International A A- Credit Suisse International On 21 September 2016, the Manager announced that the prospectus was updated relating to the announcement jointly issued by the China Securities Regulatory Commission and the Securities and Futures Commission ( SFC ) on 16 August 2016 which, inter alia, abolished the aggregate quota under Shanghai-Hong Kong Stock Connect. On 1 December 2016, the Manager announced the following changes which to be become effective on 3 January 2017 ( Effective Date ): 1. The investment strategy of the Fund will gradually be changed to a physical representation strategy and it is the Manager s intention to gradually and orderly decrease the Fund s reliance on synthetic representation strategy and increase the Fund s reliance on physical representation strategy In order to increase the Fund s reliance on physical representation strategy, the Manager will seek to invest directly in A Shares through the Manager s QFII quota and/or Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect using the representative sampling strategy 2. QFII A 4

7 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Fund Activities (continued) 3. Creation applications by Participating Dealers shall be made in-cash, and no in-kind Creation Application will be accepted Redemption applications by Participating Dealers may be made in-cash, in addition to in-kind There is a new Dealing Deadline for in-cash Creation Applications and in-cash Redemption Applications The definition of Business Day and Dealing Day will be changed by adding the requirement that it should be a day on which the A Shares invested in by the fund through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are traded 6. A 7. The Transaction Fee for in-cash Creation Application and Redemption Application is HKD20, ,000 Please refer to the corresponding public announcements on our company web-site ( for details. ( Index Activities The CSI 300 Index underwent two regular semi-annual reviews in The details of the index changes are summarized in Figure 1 and

8 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Index Activities (continued) On 16 December 2016, China Securities Index Company Limited decided to adjust non-negotiated shares description in free float rules, in order to make the description of free float rules more in line with the actual situation of China securities market and international practices. The adjustment is as below. Before 1. Long term holdings by founders, families and senior executives: Shares held by founders or founder families as well as shares held by members of the directorates and senior managers etc Government holdings: Shares held by the government or its subsidiaries. After Remain unchanged Remain unchanged Strategic holdings: Shares held by strategic investors for long-term strategic interests in lock-in period Restricted employee shares: Stocks held by enterprise employee include employee pension plan, annuities for employees or management staff Frozen shares: Frozen shares held by investors before released. 3. Strategic holdings: Shares held by strategic investors for long-term strategic interests Employee share plans: Shares held by employee share plans. 4. Delete Cross holdings: Two or more companies hold shares one another for specific purpose. 6. Delete Please refer to the corresponding announcements on the CSI web-site ( for details. ( 6

9 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Index Activities (continued) Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 13-Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun XJ Electric Co., Ltd Guangdong Electric Power Development Co., Ltd Weifu High-technology Group Co., Ltd Chengdu Xingrong Investment Co., Ltd Pangang Group Vanadium Titanium and Resources Co., Ltd China Minmetals Rare Earth Co., Ltd Jizhong Energy Resources Co., Ltd Shanxi Xishan Coal and Electricity Power Co., Ltd Beijing SL Pharmaceutical Co., Ltd Yantai Jereh Oilfield Services Group Co., Ltd Zhejiang Yasha Decoration Co., Ltd Glodon Software Company Limited Beiqi Foton Motor Co., Ltd Shanghai Jahwa United Co., Ltd Shandong Hi-speed Company Limited CITIC Guoan Information Industry Co., Ltd Inspur Electronic Information Industry Co.,Ltd Focus Media Information Technology Co., Ltd GRG Banking Equipment Co Ltd Eternal Asia Supply Chain Management Ltd Guizhou Bailing Group Pharmaceutical Co Ltd Shanghai Bairun Investment Holding Group Co Ltd Shenzhen Infogem Technologies Co., Ltd Wonders Information Co Ltd Shandong Iron and Steel Company Ltd Beijing Gehua CATV Network Co Ltd SDIC Essence Co.,Ltd Jiangsu Protruly Vision Technology Group Co., Ltd Guangzhou Development Group Incorporated Beijing Capital Development Co.,Ltd. Source: China Securities Index Co., Ltd., Shanghai Stock Exchange, Shenzhen Stock Exchange : 7

10 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Index Activities (continued) Figure 1 (continued) Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 13-Jun Jun Jun Jun Jun Jun Jun Jun Jun Xiamen Tungsten Co., Ltd Zhe Jiang Daily Media Group Co., Ltd Tianjin Port Co., Ltd Chongqing Water Group Co., Ltd Universal Scientific Industrial (Shanghai) Co., Ltd Guangzhou Automobile Group Co., Ltd Shanxi Lu an Environmental Energy Development Co., Ltd Hainan Mining Co., Ltd Foshan Haitian Flavouring and Food Company Ltd Shenzhen Kingdom Technology Co Ltd Tiandi Science & Technology Co Ltd Greenland Corporation Limited Aurora Optoelectronics Co., Ltd CSSC Offshore & Marine Engineering (Group) Zhejiang Material Industrial Zhongda Yuantong Group Co Ltd Cofco Tunhe Co Ltd Anxin Trust Co., Ltd Sinopec Oilfield Service Corporation Source: China Securities Index Co., Ltd., Shanghai Stock Exchange, Shenzhen Stock Exchange : 8

11 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Index Activities (continued) Figure 2 2 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 12-Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Oceanwide Hoodings Co., Ltd Beijing Yanjing Brewery Co Ltd Shanxi Taigang Stainless Steel Co Ltd Hubei Energy Group Co Ltd Angang Steel Co Ltd China Resources Sanjiu Medical & Pharmaceutical Co Ltd Shenzhen Salubris Pharmaceuticals Co Ltd Shenzhen Hepalink Pharmaceutical Co Ltd Sichuan Kelun Pharmaceutical Co Ltd Lepu Medical Technology (Beijing) Co Ltd Huaneng Power International Inc Shandong Iron and Steel Company Ltd Huadian Power International Corporation Ltd Guangzhou Development Group Incorporated Yingkou Port Liability Co Ltd China High-Speed Railway Technology Co., Ltd Digital China Information Service Company Ltd Hubei Biocause Pharmaceutical Co Ltd Sunshine City Group Co., Ltd Suning Universal Co Ltd Unisplendour Co., Ltd Shanxi Xishan Coal and Electricity Power Co Ltd Unigroup Guoxin Co., Ltd Guoxuan High-Tech Co.,Ltd Zhejiang Wanfeng Auto Wheel Co.,Ltd Leo Group Co., Ltd YOUZU Interactive Co., LTD Fujian Sunner Development Co Ltd Beijing Orient Landscape Co Ltd Suzhou Victory Precision Manufacture Co Ltd Source: China Securities Index Co., Ltd., Shanghai Stock Exchange, Shenzhen Stock Exchange : 9

12 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF) (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 300 * * ETFs Index Activities (continued) Figure 2 (continued) 2 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 12-Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Heilan Home Co.,Ltd Beijing Jingneng Power Co., Ltd Tsingtao Brewery Co Ltd Shenergy Co Ltd Inner Mongolia Mengdian Huaneng Thermal Power Corp Ltd Jointown Pharmaceutical Group Co Ltd CECEP Wind-Power Corporation China South Publishing & Media Group Co Ltd China First Heavy Industries Co Ltd China National Chemical Engineering Co Ltd China XD Electric Co Ltd China Oilfield Services Limited China Coal Energy Co Ltd Datang International Power Generation Co.,Ltd BBMG Corporation Tianqi Lithium Industries, Inc Muyuan Foodstuff Co., Ltd First Capital Securities Co., Ltd Hithink Royalflush Information Network Co.,Ltd Beijing SJ Environmental Protection and New Material Co Ltd Beijing Jetsen Technology Co Ltd China Grand Automotive Services Co., Ltd China Shipbuilding Industry Group Power Co.,Ltd Fiberhome Telecommunication Technologies Co Ltd China Security & Fire Co.,Ltd Shanghai Jinjiang International Hotels Development Co Ltd Chongqing Sokon Industry Group Co.,Ltd Future Land Co., Ltd China Nuclear Engineering Corporation Limited Zhejiang Chint Electrics Co Ltd Source: China Securities Index Co., Ltd., Shanghai Stock Exchange, Shenzhen Stock Exchange : 10

13 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI HK 100 TRACKER TM (SUB-FUND OF WORLD INDEX SHARES ETFs) 100 TM ETFs Fund Performance The W.I.S.E. - CSI HK 100 TrackerTM ( WISE-CSIHK100 or the Sub-Fund ) is an index-tracking exchange traded fund which seeks to track the performance of the CSI Hong Kong 100 Index (the Underlying Index or CSIHK100 ). As of 31 December 2016, the net asset value ( NAV ) per unit of the Sub-Fund was HKD with a total of 31,000,000 units outstanding and total assets under management ( AUM ) of HKD590,916, TM ,000,000 AUM 590,916,660 The WISE-CSIHK100 adopts a representative sampling strategy, and invests in a representative sample of the index securities of the Underlying Index. A summary of the performance of the WISE-CSIHK100 is shown below Total Return (a) in HKD Since Inception (Annualized) (e) (a) (e) CSIHK100 (b) 4.39% -5.78% 5.31% 6.61% 26.23% 1.63% 100 (b) WISE-CSIHK100 NAV-to-NAV (c) 2.09% -6.38% 4.44% 4.55% 25.97% 0.45% 100 (c) WISE-CSIHK100 Market-to-Market (d) 3.58% -7.42% 5.03% 3.31% 27.17% 0.57% 100 (d) as of 30 December 2016 (last dealing date of December, 2016) Past performance figures shown are not indicative of the future performance of the sub-fund. (a) Total returns represent the rate that an investor would have earned (or lost) on an investment, assuming reinvestment of all (a) dividends and distributions. (b) The index performance calculated on a total return basis reflects returns due to both price changes and dividend income. An investor cannot invest directly in an index and the index performance returns do not reflect management fees, transaction (b) costs or other expenses, which would reduce performance returns of the sub-fund. (c) Units in the sub-fund are issued and redeemed at NAV. The subfund performance is calculated on NAV-to-NAV basis with gross (c) distribution reinvested. (d) Market returns are calculated using historical market closing prices, and do not represent the returns you would receive if you (d) traded units at other times. (e) This is the annualized return since the sub-fund inception. The sub-fund inception date is 13 May (e) Source: BOCI-Prudential Asset Management Ltd., China Securities Index Co., Ltd., Bloomberg 11

14 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI HK 100 TRACKER TM (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 100 TM ETFs Fund Activities As of 31 December 2016, there were 31,000,000 units outstanding in the Sub-Fund and the Sub-Fund had exposure to 94 stocks. A final distribution for the financial year ended 31 December 2016 of HK$0.34 per unit was paid on 26 January The Ex. Distribution Date was 28 December Please refer to the corresponding public announcements on our company web-site ( for details. Index Activities The CSI HK 100 Index underwent two regular semi-annual reviews in The details of the index changes are summarized in Figure 1 and 2. On 16 December 2016, China Securities Index Company Limited decided to adjust non-negotiated shares description in free float rules, in order to make the description of free float rules more in line with the actual situation of China securities market and international practices. The adjustment is as below. 31,000, ( Before 1. Long term holdings by founders, families and senior executives: Shares held by founders or founder families as well as shares held by members of the directorates and senior managers etc Government holdings: Shares held by the government or its subsidiaries. After Remain unchanged Remain unchanged Strategic holdings: Shares held by strategic investors for long-term strategic interests in lock-in period Restricted employee shares: Stocks held by enterprise employee include employee pension plan, annuities for employees or management staff Strategic holdings: Shares held by strategic investors for long-term strategic interests Employee share plans: Shares held by employee share plans

15 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI HK 100 TRACKER TM (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) 100 TM ETFs Index Activities (continued) Before 5. Frozen shares: Frozen shares held by investors before released. Delete After Cross holdings: Two or more companies hold shares one another for specific purpose. 6. Delete Please refer to the corresponding announcements on the CSI web-site ( for details. ( Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 13-Dec HK Dongfeng Motor Group Company Limited 0530.HK Goldin Financial Limited () 13-Dec HK Anhui Conch Cement Company Limited 1929.HK Chow Tai Fook Jewellery Group Limited 13-Dec HK COSCO Pacific Limited 3799.HK Dali Foods Group Company Limited 13-Dec HK Great Wall Motor Company Limited 6837.HK Haitong Securities Co., Ltd. Source: China Securities Index Co., Ltd., HKEx Figure 2 2 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 12-Dec HK Alibaba Health Information Technology Limited 0607.HK Fullshare Limited 12-Dec HK CITIC Limited 1031.HK Kingston Financial Group Limited 12-Dec HK Chow Tai Fook Jewellery Group Limited 1913.HK PRADA S.p.A. Source: China Securities Index Co., Ltd., HKEx 13

16 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. SSE 50 CHINA TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) 50 ETFs Fund Performance W.I.S.E. SSE 50 CHINA TRACKER ( WISE-SSE50 or the Sub-Fund ) is an index-tracking exchange traded fund which seeks to provide investment performance (before taxes) that tracks the performance of the SSE 50 Index (the Underlying Index or SSE50 ). As of 31 December 2016, the net asset value ( NAV ) per unit of the Sub-Fund was HKD with a total of 4,000,000 units outstanding and total assets under management ( AUM ) of HKD81,394, ,000,000 AUM 81,394,805 The WISE-SSE50 adopts a representative sampling strategy. The Sub-Fund, at present, invests directly in A Shares via the Shanghai-Hong Kong Stock Connect. A summary of the performance of the WISE-SSE50 is shown below. 50 A50 Total Return (a) Since Inception (Annualized) (f) (a) (f) SSE50 (RMB) (b) -3.01% -4.42% 69.34% % 18.10% 5.25% 50 (b) SSE50 (HKD) (c) -9.35% -8.73% 65.23% -9.75% 19.19% 5.03% 50 (c) WISE-SSE50 NAV-to-NAV (d) -3.66% % 57.60% % 14.33% 1.26% 50 (d) WISE-SSE50 Market-to-Market (e) -6.85% -7.34% 52.10% % 11.05% 1.02% 50 (e) as of 30 December 2016 (last dealing date of December, 2016) It was a synthetic ETF during 15 April 2009 to 11 May Please note that the investment strategy of the Sub-Fund has changed from synthetic replication to physical replication with effect from 12 May Past performance figures shown are not indicative of the future performance of the sub-fund. Starting from 1 July 2014, SSE 50 Total Return Index is replaced with SSE 50 Net Total Return Index for index performance calculation. SSE 50 Net Total Return Index is denominated in RMB. For the purpose of performance comparison, index performance is presented in HKD and calculated by referring to the foreign exchange rates for RMB / HKD quoted by Bloomberg Bloomberg RMB (CNY) rate (Tokyo Composite) at 3:00 p.m. Hong Kong time on the corresponding dealing dates (CNY) 14

17 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 (continued) (a) Total returns represent the rate that an investor would have earned (or lost) on an investment, assuming reinvestment of all dividends and distributions. (a) (b) The index performance in RMB calculated on a total return basis reflects returns due to both price changes and dividend income. 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) of the sub-fund. (c) The index performance in HKD calculated on a total return basis reflects returns due to both price changes and dividend income. 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 (c) of the sub-fund. (d) (e) The sub-fund performance is calculated in HKD on NAV-to-NAV basis with gross distribution reinvested. Units in the sub-fund are issued and redeemed at NAV. Market returns are calculated in HKD using historical market closing prices, and do not represent the returns you would receive if you traded units at other times. (d) (e) (f) This is the annualized return since the sub-fund inception. The sub-fund inception date is 9 April (f) Source: BOCI-Prudential Asset Management Ltd., China Securities Index Co., Ltd., Bloomberg Fund Activities As of 31 December 2016, there were 4,000,000 units outstanding in the Sub-Fund and the Sub-Fund had exposure to 49 stocks. 4,000,00049 Upon the finalization of the CGT liability (if any) payable by the Sub-Fund to the remaining AXP issuer of the Sub-Fund in respect of the Sub-Fund s investment in the relevant AXPs (previously acquired by the Sub-Fund when it was a synthetic ETF), there was a positive adjustment of % to the NAV of the Sub-Fund as of 15 June AXP % Prospectus was updated relating to the announcement jointly issued by the China Securities Regulatory Commission and the Securities and Futures Commission ( SFC ) on 16 August 2016 which, inter alia, abolished the aggregate quota under Shanghai-Hong Kong Stock Connect. Please refer to the corresponding public announcements on our company web-site ( for details. ( 15

18 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 Index Activities The SSE 50 Index underwent two regular semi-annual reviews in The details of the index changes are summarized in Figure 1 and 2. On 16 December 2016, China Securities Index Company Limited decided to adjust non-negotiated shares description in free float rules, in order to make the description of free float rules more in line with the actual situation of China securities market and international practices. The adjustment is as below Before 1. Long term holdings by founders, families and senior executives: Shares held by founders or founder families as well as shares held by members of the directorates and senior managers etc Government holdings: Shares held by the government or its subsidiaries Strategic holdings: Shares held by strategic investors for long-term strategic interests in lock-in period Restricted employee shares: Stocks held by enterprise employee include employee pension plan, annuities for employees or management staff Frozen shares: Frozen shares held by investors before released Cross holdings: Two or more companies hold shares one another for specific purpose. 6. Please refer to the corresponding announcements on the CSI web-site ( for details. Remain unchanged Remain unchanged After 3. Strategic holdings: Shares held by strategic investors for longterm strategic interests Employee share plans: Shares held by employee share plans. 4. Delete Delete ( 16

19 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 Index Activities (continued) Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 13-Jun Jun Jun Jun Jun Hua Xia Bank Co., Ltd Shanghai International Port (Group) Co., Ltd China CSSC Limited Anhui Conch Cement Company Limited Founder Securities Co., Ltd China Southern Airlines Co., Ltd Industrial Securities Co., Ltd Shanghai Electric Group Company Limited Everbright Securities Company Limited China COSCO Company Limited Source: China Securities Index Co., Ltd., Shanghai Stock Exchange :, Figure 2 2 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 12-Dec Dec Dec Dec Dec Inner Mongolia Baotou Steel Union Co., Ltd GD Power Development Co., Ltd Power Construction Corporation of China, Ltd Shanghai Electric Group Company Limited China COSCO Company Limited Tsinghua Tongfang Co., Ltd Beijing Xinwei Telecom Technology Group Co., Ltd Shandong Gold Mining Co., Ltd Dongxing Securities Co., Ltd Founder Securities Co., Ltd. Source: China Securities Index Co., Ltd., Shanghai Stock Exchange :, 17

20 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND CONSUMPTION TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) ETFs Fund Performance The W.I.S.E. - CSI HK Listed Mainland Consumption Tracker ( WISE-CSIMLCT or the Sub-Fund ) is an index-tracking exchange traded fund which seeks to provide investment returns, before fees and expenses, that closely correspond to the performance of the CSI Hong Kong Listed Tradable Mainland Consumption Index (the Underlying Index or CSI HKT Mainland Consumption ). As of 31 December 2016, the net asset value ( NAV ) per unit of the Sub-Fund was HKD with a total of 750,000 units outstanding and total assets under management ( AUM ) of HKD 5,003, ,000 AUM 5,003,840 The WISE-CSIMLCT adopts a representative sampling strategy. A summary of the performance of the WISE- CSIMLCT is shown below. Total Return (a) in HKD Since Inception (Annualized) (e) (a) (e) CSI HKT Mainland Consumption (b) 0.32% -3.67% % 8.48% 10.42% -3.76% (b) WISE-CSIMLCT NAV-to-NAV (c) -1.33% -5.41% % 7.48% 3.24% -5.73% (c) WISE-CSIMLCT Market-to-Market (d) -5.63% % % 8.65% 2.05% -7.26% (d) as of 30 December 2016 (last dealing date of December, 2016) Past performance figures shown are not indicative of the future performance of the sub-fund. (a) Total returns represent the rate that an investor would have earned (or lost) on an investment, assuming reinvestment of all (a) dividends and distributions. (b) The index performance calculated on a total return basis reflects returns due to both price changes and dividend income. An investor cannot invest directly in an index and the index performance returns do not reflect management fees, transaction (b) costs or other expenses, which would reduce performance returns of the sub-fund. (c) Units in the sub-fund are issued and redeemed at NAV. The subfund performance is calculated on NAV-to-NAV basis with gross (c) distribution reinvested. (d) Market returns are calculated using historical market closing prices, and do not represent the returns you would receive if you (d) traded units at other times. (e) This is the annualized return since the sub-fund inception. The sub-fund inception date is 7 January (e) Source: BOCI-Prudential Asset Management Ltd., China Securities Index Co., Ltd., Bloomberg 18

21 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND CONSUMPTION TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) ETFs Fund Activities As of 31 December 2016, there were 750,000 units outstanding in the Sub-Fund and the Sub-Fund had exposure to 38 stocks. 750,00038 On 4 August 2016, the manager announced that the minimum Application Unit size for creation or redemption by the Participating Dealer(s) or Eligible Investor(s) of Units of the Consumption Tracker would be reduced from 1,500,000 Units to 750,000 Units with effect from 5 September ,500, ,000 Please refer to the corresponding public announcements on our company web-site ( for details. ( Index Activities The CSI Hong Kong Listed Tradable Mainland Consumption Index underwent two regular semi-annual reviews in In particular, the details of the index review are summarized in Figure 1 and On 16 December 2016, China Securities Index Company Limited decided to adjust non-negotiated shares description in free float rules, in order to make the description of free float rules more in line with the actual situation of China securities market and international practices. The adjustment is as below. Before 1. Long term holdings by founders, families and senior executives: Shares held by founders or founder families as well as shares held by members of the directorates and senior managers etc Government holdings: Shares held by the government or its subsidiaries. After Remain unchanged Remain unchanged Strategic holdings: Shares held by strategic investors for long-term strategic interests in lock-in period Strategic holdings: Shares held by strategic investors for long-term strategic interests

22 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND CONSUMPTION TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) ETFs Index Activities (continued) Before 4. Restricted employee shares: Stocks held by enterprise employee include employee pension plan, annuities for employees or management staff Frozen shares: Frozen shares held by investors before released Cross holdings: Two or more companies hold shares one another for specific purpose. 6. After 4. Employee share plans: Shares held by employee share plans. 4. Delete Delete Please refer to the corresponding announcements on the CSI web-site ( for details. ( Figure 1 Deletion 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 13-Jun HK Daphne International Limited 1089.HK Leyou Technologies Limited 13-Jun HK WH Group Limited 1317.HK China Maple Leaf Educational Systems Limited 13-Jun HK Lianhua Supermarket Co., Ltd HK Fuguiniao Co., Ltd 13-Jun HK Wisdom Sports Group 13-Jun HK Man Wah Limited 13-Jun HK Golden Eagle Retail Group Limited 13-Jun HK China Huishan Dairy Company Limited Source: China Securities Index Co., Ltd., HKEx :, 20

23 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND CONSUMPTION TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) ETFs Index Activities (continued) Figure 2 2 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 12-Dec HK Fuguiniao Co., Ltd 0817.HK China Jinmao Group Limited 12-Dec HK HC International, Inc HK Xtep International Limited 12-Dec HK Shanghai Pharmaceuticals Holding Co., Ltd HK Red Star Macalline Group Corporation Ltd. 12-Dec HK China Dongxiang (Group) Co., Ltd. () 1616.HK Silverman Limited 12-Dec HK Wisdom Group 12-Dec HK Xingda International Limited 12-Dec HK IMAX China Holding. Inc. IMAX 12-Dec HK Man Wah Limited 12-Dec HK Regina Miracle International () Limited 12-Dec HK China Overseas Property Limited 12-Dec HK Fuyao Glass Industry Group Co., Ltd. 12-Dec HK Dali Foods Group Company Limited 12-Dec HK China Huishan Dairy Company Limited Source: China Securities Index Co., Ltd., HKEx :, 21

24 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) Fund Performance The W.I.S.E. - CSI HK Listed Mainland Real Estate Tracker ( WISE-CSIMLRET or the Sub-Fund ) is an index-tracking exchange traded fund which seeks to provide investment returns, before fees and expenses, that closely correspond to the performance of the CSI Hong Kong Listed Tradable Mainland Real Estate Index (the Underlying Index or CSI HKT Mainland Real Estate ). As of 31 December 2016, the net asset value ( NAV ) per unit of the Sub-Fund was HKD5.504 with a total of 1,250,000 units outstanding and total assets under management ( AUM ) of HKD6,880,027. ETFs ,250,000 AUM 6,880,027 The WISE-CSIMLRET adopts a representative sampling strategy. A summary of the performance of the WISE- CSIMLRET is shown below. Total Return (a) in HKD Since Inception (Annualized) (e) (a) (e) CSI HKT Mainland Real Estate (b) % 14.29% -3.15% -7.69% 73.89% 0.57% (b) WISE-CSIMLRET NAV-to-NAV (c) % 13.71% -4.15% % 68.88% -1.29% (c) WISE-CSIMLRET Market-to-Market (d) % 4.66% -4.00% -8.50% 49.57% -4.55% (d) as of 30 December 2016 (last dealing date of December, 2016) Past performance figures shown are not indicative of the future performance of the sub-fund. (a) (b) (c) (d) (e) Total returns represent the rate that an investor would have earned (or lost) on an investment, assuming reinvestment of all dividends and distributions. The index performance calculated on a total return basis reflects returns due to both price changes and dividend income. 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 of the sub-fund. Units in the sub-fund are issued and redeemed at NAV. The subfund performance is calculated on NAV-to-NAV basis with gross distribution reinvested. Market returns are calculated using historical market closing prices, and do not represent the returns you would receive if you traded units at other times. This is the annualized return since the sub-fund inception. The sub-fund inception date is 7 January (a) (b) (c) (d) (e) Source: BOCI-Prudential Asset Management Ltd., China Securities Index Co., Ltd., Bloomberg 22

25 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) ETFs Fund Activities As of 31 December 2016, there were 1,250,000 units outstanding in the Sub-Fund and the Sub-Fund had exposure to 22 stocks. 1,250,00022 On 4 August 2016, the manager announced that the minimum Application Unit size for creation or redemption by the Participating Dealer(s) or Eligible Investor(s) of Units of the Real Estate Tracker would be reduced from 2,500,000 Units to 1,250,000 Units with effect from 5 September ,500,000 1,250,000 Please refer to the corresponding public announcements on our company web-site ( for details. ( Index Activities The CSI Hong Kong Listed Tradable Mainland Real Estate Index underwent two regular semi-annual reviews in The details of the index review are summarized in Figure 1 and On 16 December 2016, China Securities Index Company Limited decided to adjust non-negotiated shares description in free float rules, in order to make the description of free float rules more in line with the actual situation of China securities market and international practices. The adjustment is as below. Before 1. Long term holdings by founders, families and senior executives: Shares held by founders or founder families as well as shares held by members of the directorates and senior managers etc Government holdings: Shares held by the government or its subsidiaries. After Remain unchanged Remain unchanged Strategic holdings: Shares held by strategic investors for long-term strategic interests in lock-in period Strategic holdings: Shares held by strategic investors for long-term strategic interests

26 REPORT OF THE MANAGER (continued) TO THE UNITHOLDERS OF W.I.S.E. CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUND OF WORLD INDEX SHARES ETFs) (continued) ETFs Index Activities (continued) Before 4. Restricted employee shares: Stocks held by enterprise employee include employee pension plan, annuities for employees or management staff Frozen shares: Frozen shares held by investors before released Cross holdings: Two or more companies hold shares one another for specific purpose. 6. Please refer to the corresponding announcements on the CSI web-site ( for details. Figure 1 Deletion After 4. Employee share plans: Shares held by employee share plans. 4. Delete Delete ( 1 Addition Effective Date Stock Code Stock Name Stock Code Stock Name 13-Jun HK China Overseas Grand Oceans Group Limited 2669.HK China Overseas Property Limited 13-Jun HK Yuzhou Properties Company Limited Source: China Securities Index Co., Ltd., HKEx :, Figure 2 2 Deletion Addition Effective Date Stock Code Stock Name Stock Code Stock Name 12-Dec HK China Jinmao Group Limited 0884.HK CIFI (Group) Co. Ltd. 12-Dec HK China Overseas Property Limited 1628.HK Yuzhou Properties Company Limited 12-Dec HK Logan Property Company Limited Source: China Securities Index Co., Ltd., HKEx :, 24

27 REPORT OF THE TRUSTEE TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * This is a synthetic ETF), W.I.S.E.-CSI HK 100 TRACKER TM, W.I.S.E.-SSE 50 CHINA TRACKER, W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER AND W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUNDS OF WORLD INDEX SHARES ETFs) 300 * * 100 TM 50 ETFs We hereby confirm that, in our opinion, the Manager of W.I.S.E.-CSI 300 China Tracker * (*This is a synthetic ETF), W.I.S.E.-CSI HK 100 TrackerTM, W.I.S.E.-SSE 50 China Tracker, W.I.S.E.-CSI HK Listed Mainland Consumption Tracker and W.I.S.E.-CSI HK Listed Mainland Real Estate Tracker (the Sub-Funds of World Index Shares ETFs, the Sub-Funds ) has, in all material respects, managed the Sub-Funds in accordance with the provisions of the Trust Deed dated 11 July 2007, as amended, for the year ended 31 December * * 100 TM 50 ETFs For and on behalf of BOCI-Prudential Trustee Limited 6 April

28 INDEPENDENT AUDITOR S REPORT TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * THIS IS A SYNTHETIC ETF), W.I.S.E.-CSI HK 100 TRACKER TM, W.I.S.E.-SSE 50 CHINA TRACKER, W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER AND W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUNDS OF WORLD INDEX SHARES ETFs) Report on the Audit of the Financial Statements 300 * * 100 TM 50 ETFs Opinion We have audited the financial statements of W.I.S.E.-CSI 300 China Tracker * (*This is a synthetic ETF), W.I.S.E.-CSI HK 100 Tracker TM, W.I.S.E.-SSE 50 China Tracker, W.I.S.E.-CSI HK Listed Mainland Consumption Tracker and W.I.S.E.-CSI HK Listed Mainland Real Estate Tracker (collectively the Sub-Funds of World Index Shares ETFs or the Sub-Fund(s) ) set out on pages 34 to 99, which comprise the statements of financial position 31 December 2016, and the statements of profit or loss and other comprehensive income, the statements of changes in net assets attributable to unitholders and the statements of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. 300 * * 100 TM 50 ETFs In our opinion, the financial statements give a true and fair view of the financial disposition of the Sub-Funds 31 December 2016, and of its financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards ( HKFRSs ) issued by the Hong Kong Institute of Certified Public Accountants ( HKICPA ). Basis for Opinion We conducted our audit in accordance with Hong Kong Standards on Auditing ( HKSAs ) issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Sub-Funds in accordance with the HKICPA s Code of Ethics for Professional Accountants ( the Code ), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 26

29 INDEPENDENT AUDITOR S REPORT (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * THIS IS A SYNTHETIC ETF), W.I.S.E.-CSI HK 100 TRACKER TM, W.I.S.E.-SSE 50 CHINA TRACKER, W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER AND W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUNDS OF WORLD INDEX SHARES ETFs) (continued) 300 * * 100 TM 50 ETFs Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. 27

30 INDEPENDENT AUDITOR S REPORT (continued) TO THE UNITHOLDERS OF W.I.S.E.-CSI 300 CHINA TRACKER * ( * THIS IS A SYNTHETIC ETF), W.I.S.E.-CSI HK 100 TRACKER TM, W.I.S.E.-SSE 50 CHINA TRACKER, W.I.S.E.-CSI HK LISTED MAINLAND CONSUMPTION TRACKER AND W.I.S.E.-CSI HK LISTED MAINLAND REAL ESTATE TRACKER (SUB-FUNDS OF WORLD INDEX SHARES ETFs) (continued) 300 * * 100 TM 50 ETFs Key Audit Matters (continued) Key audit matter How our audit addressed the key audit matter Existence and valuation of financial assets at fair value through profit or loss The financial assets at fair value through profit or loss included in the statement of financial position of each Sub-Fund were listed shares in Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Stock Exchange and A-share access products ( AXPs ) issued by AXP issuers. As of 31 December 2016, there were 300, 100, 50, 48 and 25 constituent securities of the underlying indexes in W.I.S.E.-CSI 300 China Tracker *, W.I.S.E.-CSI HK 100 Tracker TM, W.I.S.E.-SSE 50 China Tracker, W.I.S.E.-CSI HK Listed Mainland Consumption Tracker and W.I.S.E.-CSI HK Listed Mainland Real Estate Tracker, respectively. These financial assets were measured at fair value as required by the Hong Kong Financial Reporting Standards. As at 31 December 2016, they represented more than 98% of net asset value of W.I.S.E.-CSI 300 CHINA TRACKER *, W.I.S.E.-CSI HK 100 Tracker TM, W.I.S.E.-SSE 50 China Tracker, W.I.S.E.-CSI HK Listed Mainland Consumption Tracker and W.I.S.E.-CSI HK Listed Mainland Real Estate Tracker. A (AXP)AXP 300 * 100 TM * 100 TM 50 98% We obtained independent confirmation from the custodians of the investment portfolio held at 31 December 2016 and agreed the quantity held to the accounting records. In addition, we independently checked the valuation of all financial assets at fair value through profit or loss against third party vendor sources. Details are set out in note 12 to the financial statements