PDF《中期报告 Interim Report》

3 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) Fund Activities In the first half of this year, the WISE-CSI300 (the Sub- Fund ) continued to attract wide interest from investors seeking to get exposure to A-share market. The outstanding units by the end of June stood at 260,800,000 units. As of

29 June 2012, the Sub-Fund had exposure to

215 stocks. With effect from

16 April 2012, in order to increase transparency of the Sub-Fund and to enhance disclosure relating to the Sub-Fund'

s collateral holdings, the Manager published the Summary of Collateral Disclosure on its website on a weekly basis, instead of monthly basis, within three business days from end of the week. With effect from

26 April 2012, the selection criteria adopted by the Manager in relation to an AXP issuer of the Sub- Fund were revised. The credit rating of an AXP issuer prescribed under the section headed AXP issuer under Appendix IV Operation of the Sub-Fund of the Prospectus, that is, an AXP issuer must have a credit rating in respect of senior debt of at least A- by Standard &

Poor'

s or equivalent rating given by Moody'

s or by Fitch, ceased to be applicable from

26 April 2012, and from this date the Manager may determine the minimum credit rating that is appropriate for an AXP issuer, taking into account factors such as the prevailing market conditions, the credit ratings of other entities with comparable financial standing and the credit ratings of the holding company of the AXP issuer (if applicable). However, as a general requirement, the Manager expects that the relevant AXP issuer or the guarantor of the relevant AXP (if any) should have a minimum credit rating of investment grade. The other selection criteria as currently stated in the Prospectus remain unchanged. The Manager also updated its risk management process. The Manager continued to monitor and manage the risk of the Sub-Fund including counterparty risk with a view to protect the interest of the Sub-Fund and its investors. An Addendum........