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Ken Teale
Ken Teale

1. Performance is calculated on I class shares, post management fees of between 1.50% and 2.25% per annum. The performance inception date is 31 July 2009. 2. The fund¡¯s share price decreased by 5.4% over the quarter, compared to a 6.5% decrease in the benchmark index (UBS Developed Infrastructure & Utilities Index), due to favorable stock selection and cash holdings. 3. The portfolio saw additions in Japanese gas utilities and reductions in European integrated utilities, while maintaining overweight in US and underweight in European stocks.

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1 Performance is calculated on I class shares, post management fees of between 1.50% and 2.25% per annum 2 Performance inception date is 31 July 2009 3 The UBS Developed Infrastructure & Utilities Index is a USD hedged, total return index IMPORTANT NOTES This report has been prepared for information only, and it does not represent an offer to purchase or subscribe for shares. While Nucleus Global Investors Pty Ltd (¡°Nucleus¡±) believes that the information is correct at the date of production, no warranty or representation is given to this effect and no liability can be assumed for the correctness or accuracy of the given information, which may be subject to change at any time, without notice. Returns can be volatile, reflecting increases and decreases in the value of underlying investments. Changes in market conditions and exchange rates can cause a decrease or an increase in the share value. Past performance does not guarantee the same results in the future. The WIOF Global Listed Utilities Fund (the ¡°Fund¡±) is a sub fund of World Investment Opportunities Funds (the ¡°SICAV¡±), an open-ended investment company registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 20th December 2002 on collective investment undertakings (the ¡°2002 Law¡±). Julius Baer (Luxembourg) S.A is the designated management company of the SICAV, authorised under the provisions of Chapter 13 of the 2002 Law. Applications can only be made on the form in the current WIOF Prospectus dated April 2010. Prospectus can be obtained by contacting the Nucleus investment team on +61 2 8226 5126, by fax +61 2 9235 2800, or by emailing gfisher@nucleusglobal.com.au or at http://www.wiof.eu/institutional/download/prospectus/. Before investing in the Fund, investors should contact their financial adviser and refer to all relevant documents relating to the Fund, such as the latest annual report and prospectus, which specify the particular risks associated with the Fund, together with any specific restrictions applying, and the basis of dealing. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is a suitable investment for him. WIOF Global Listed Utilities Fund ¨C June 2010 Performance Summary (total return before fees) Performance 1 1 Month 3 Months 6 Months Inception 2 WIOF Global Listed Utilities Fund (1.1%) (5.4%) (6.7%) 4.0% Benchmark (UBS Developed Infrastructure & Utilities Index 3 ) (0.8%) (6.5%) (6.3%) 3.7% Sector Allocation Semi Regulated Utility 64% Regulated Utility 19% Rail 2% Generation 3% Communications Infrastructure 4% Ports 4%Airports 4% Geographic Allocation US 54% Europe ex UK 28% UK 6% Canada 6% Japan 6% Overview The fund¡¯s share price decreased by 5.4% over the quarter, compared to a 6.5% decrease in our benchmark index. Stock selection and asset allocation (we maintained an average cash balance of around 16% during the quarter) were the primary reason for our outperformance compared to the benchmark. European utilities and infrastructure stocks declined sharply over the quarter, falling by 14.4%. In contrast, US stocks in the index fell by only 3.7% and Japanese stocks by only 3.2%. The large integrated European utilities with significant merchant generation capacity were hardest hit as investors continued to worry about the impact an economic slowdown in the Eurozone would have on their earnings. Iberdrola fell by 23.1%, GDF Suex by 15.5%, E.On by 13.9%, RWE by 13.5% and Enel by 12.1%. Together, these stocks account for almost half of the total capitalization of European stocks in the index and around 14% of its total capitalization, but only account for 7% of the fund¡¯s holdings. The best performing stocks in the fund over the quarter were Flughafen Wien (Vienna Airport) +23.1%, Northumbrian Water (a water utility in the UK) +7.6% and Vopak (a global operator of liquid storage facilities at major ports) +5.6%. Combined with our underweight position in the large integrated European utilities, they contributed the bulk of the outperformance attributable to stock selection. The worst performing stocks were E.On (a pan European electricity and gas utility with merchant generation operations) -13.9%, RWE (a German electricity utility with merchant generation operations) -13.5% and Southern Union (a gas utility with pipelines and gas storage facilities in the US) -13.3%. Portfolio Changes The correction in equity markets over the last quarter presented us with the opportunity to establish positions at attractive prices in a number of utilities in Japan ¨C a market in which we have struggled to find value in the past. Whilst we are mindful of Japan¡¯s sovereign debt levels, the fact that it finances around 95% of that debt domestically and consistently runs large current account surpluses means that Japan has ample foreign currency reserves to service the small stock of sovereign debt that is held offshore and consequently faces very little pressure from international bond markets. As such, we feel comfortable with the small position we have taken in Japanese equities. Company Name Country Sector % of Portfolio Dominion Resources US Semi Regulated Utility 5.7% Southern Co. US Semi Regulated Utility 4.5% Consolidated Edison US Regulated Utility 4.4% RWE AG Germany Semi Regulated Utility 4.1% SES Luxembourg Communications Infrastructure 3.8% Top 5 Holdings During the quarter, we established positions in Centrica (an integrated gas utility in the UK), TransCanada (a pipeline operator in Canada), Central Japan Railway Co (the operator of a high speed rail link between Tokyo and Osaka) and in three gas utilities in Japan - Osaka Gas Co, Toho Gas Co and Tokyo Gas Co. We exited our position in GDF Suez (a global transporter and distributor of natural gas), Public Service Enterprises (a electricity and gas utility in the US), Severn Trent (a UK water utility) and American Water Works (a US water utility). Outlook We expect continental European utilities to continue underperform those in the rest of the OECD over the next few months, as investors continue to have concerns about the health of the European banking system and the impact of budget deficit reduction plans by European governments on economic growth prospects for the region. The current scale of budget deficits across Europe is not sustainable and greater levels of fiscal responsibility, whilst a positive over the longer term, will inevitably lead to more subdued levels of economic growth in the short to medium term and possibly double dip recessions in some European countries. At present, we believe that the best value in our investment universe is to be found in the more regulated businesses whose earnings are less dependent on the prevailing economic conditions and it is here that we expect it is more likely we will find interesting investment opportunities over the coming months.

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  • 1. 1 Performance is calculated on I class shares, post management fees of between 1.50% and 2.25% per annum 2 Performance inception date is 31 July 2009 3 The UBS Developed Infrastructure & Utilities Index is a USD hedged, total return index IMPORTANT NOTES This report has been prepared for information only, and it does not represent an offer to purchase or subscribe for shares. While Nucleus Global Investors Pty Ltd (¡°Nucleus¡±) believes that the information is correct at the date of production, no warranty or representation is given to this effect and no liability can be assumed for the correctness or accuracy of the given information, which may be subject to change at any time, without notice. Returns can be volatile, reflecting increases and decreases in the value of underlying investments. Changes in market conditions and exchange rates can cause a decrease or an increase in the share value. Past performance does not guarantee the same results in the future. The WIOF Global Listed Utilities Fund (the ¡°Fund¡±) is a sub fund of World Investment Opportunities Funds (the ¡°SICAV¡±), an open-ended investment company registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 20th December 2002 on collective investment undertakings (the ¡°2002 Law¡±). Julius Baer (Luxembourg) S.A is the designated management company of the SICAV, authorised under the provisions of Chapter 13 of the 2002 Law. Applications can only be made on the form in the current WIOF Prospectus dated April 2010. Prospectus can be obtained by contacting the Nucleus investment team on +61 2 8226 5126, by fax +61 2 9235 2800, or by emailing gfisher@nucleusglobal.com.au or at http://www.wiof.eu/institutional/download/prospectus/. Before investing in the Fund, investors should contact their financial adviser and refer to all relevant documents relating to the Fund, such as the latest annual report and prospectus, which specify the particular risks associated with the Fund, together with any specific restrictions applying, and the basis of dealing. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is a suitable investment for him. WIOF Global Listed Utilities Fund ¨C June 2010 Performance Summary (total return before fees) Performance 1 1 Month 3 Months 6 Months Inception 2 WIOF Global Listed Utilities Fund (1.1%) (5.4%) (6.7%) 4.0% Benchmark (UBS Developed Infrastructure & Utilities Index 3 ) (0.8%) (6.5%) (6.3%) 3.7% Sector Allocation Semi Regulated Utility 64% Regulated Utility 19% Rail 2% Generation 3% Communications Infrastructure 4% Ports 4%Airports 4% Geographic Allocation US 54% Europe ex UK 28% UK 6% Canada 6% Japan 6% Overview The fund¡¯s share price decreased by 5.4% over the quarter, compared to a 6.5% decrease in our benchmark index. Stock selection and asset allocation (we maintained an average cash balance of around 16% during the quarter) were the primary reason for our outperformance compared to the benchmark. European utilities and infrastructure stocks declined sharply over the quarter, falling by 14.4%. In contrast, US stocks in the index fell by only 3.7% and Japanese stocks by only 3.2%. The large integrated European utilities with significant merchant generation capacity were hardest hit as investors continued to worry about the impact an economic slowdown in the Eurozone would have on their earnings. Iberdrola fell by 23.1%, GDF Suex by 15.5%, E.On by 13.9%, RWE by 13.5% and Enel by 12.1%. Together, these stocks account for almost half of the total capitalization of European stocks in the index and around 14% of its total capitalization, but only account for 7% of the fund¡¯s holdings. The best performing stocks in the fund over the quarter were Flughafen Wien (Vienna Airport) +23.1%, Northumbrian Water (a water utility in the UK) +7.6% and Vopak (a global operator of liquid storage facilities at major ports) +5.6%. Combined with our underweight position in the large integrated European utilities, they contributed the bulk of the outperformance attributable to stock selection. The worst performing stocks were E.On (a pan European electricity and gas utility with merchant generation operations) -13.9%, RWE (a German electricity utility with merchant generation operations) -13.5% and Southern Union (a gas utility with pipelines and gas storage facilities in the US) -13.3%. Portfolio Changes The correction in equity markets over the last quarter presented us with the opportunity to establish positions at attractive prices in a number of utilities in Japan ¨C a market in which we have struggled to find value in the past. Whilst we are mindful of Japan¡¯s sovereign debt levels, the fact that it finances around 95% of that debt domestically and consistently runs large current account surpluses means that Japan has ample foreign currency reserves to service the small stock of sovereign debt that is held offshore and consequently faces very little pressure from international bond markets. As such, we feel comfortable with the small position we have taken in Japanese equities. Company Name Country Sector % of Portfolio Dominion Resources US Semi Regulated Utility 5.7% Southern Co. US Semi Regulated Utility 4.5% Consolidated Edison US Regulated Utility 4.4% RWE AG Germany Semi Regulated Utility 4.1% SES Luxembourg Communications Infrastructure 3.8% Top 5 Holdings During the quarter, we established positions in Centrica (an integrated gas utility in the UK), TransCanada (a pipeline operator in Canada), Central Japan Railway Co (the operator of a high speed rail link between Tokyo and Osaka) and in three gas utilities in Japan - Osaka Gas Co, Toho Gas Co and Tokyo Gas Co. We exited our position in GDF Suez (a global transporter and distributor of natural gas), Public Service Enterprises (a electricity and gas utility in the US), Severn Trent (a UK water utility) and American Water Works (a US water utility). Outlook We expect continental European utilities to continue underperform those in the rest of the OECD over the next few months, as investors continue to have concerns about the health of the European banking system and the impact of budget deficit reduction plans by European governments on economic growth prospects for the region. The current scale of budget deficits across Europe is not sustainable and greater levels of fiscal responsibility, whilst a positive over the longer term, will inevitably lead to more subdued levels of economic growth in the short to medium term and possibly double dip recessions in some European countries. At present, we believe that the best value in our investment universe is to be found in the more regulated businesses whose earnings are less dependent on the prevailing economic conditions and it is here that we expect it is more likely we will find interesting investment opportunities over the coming months.