Macquarie Bank Limited ABN ("Macquarie") or any Macquarie Group company and are subject to investments

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1 omacquarie MACQUARIE UNIT TRUST SERIES (formerly the MQ UNIT TRUST SERIES) MACQUARIE GLOBAL THEMATIC RESOURCES REPORTS AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2010 Investments in the Macquarie Unit Trust Series (formerly the MQ Unit Trust Series) are not deposits with or liabilities of Macquarie Bank Limited ABN ("Macquarie") or any Macquarie Group company and are subject to investments risk, including possible delays in repayment and loss of income and capital invested. None of Macquarie or any other Macquarie Group company guarantees the performance of the Macquarie Unit Trust Series, the repayment of capital from the Macquarie Unit Trust Series or any particular rate of return.

2 MACQUARIE UNIT TRUST SERIES.. MACQUARIE GLOBAL THEMATIC RESOURCES TABLE OF CONTENTS MANAGEMENT AND ADMINISTRATION... 1 STATEMENT OF RESPONSIBILITIES OF THE MANAGER AND THE TRUSTEE... 2 REPORT OF THE TRUSTEE TO THE UNITHOLDERS... 3 INDEPENDENT AUDITOR'S REPORT... 4 STATEMENT OF COMPREHENSIVE INCOME... 6 STATEMENT OF FINANCIAL POSiTION...7 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS... 8 STATEMENT OF CASH FLOWS... 9 NOTES TO THE FINANCIAL STATEMENTS The Fund and the Sub-Funds Summary of significant accounting policies Reconciliation of net assets attributable to unitholders Financial risk management Cash and cash equivalents Financial assets held at fair value through profit or loss Net gains/(iosses) on financial instruments held at fair value through profit or loss Related party transactions/transactions with the Trustee, the Manager and their connected persons16 9 Taxation Soft commission arrangements Contingent assets and liabilties and commitments Events occurring after year end Approval of financial statements

3 MANAGEMENT AND ADMINISTRATION Directors of the Manager John Charles Bugg Paul Wai Hung Li Robert Hector John Spence Damon Richard Hambly (appointed 25 August 2009) Trustee and Registrar HSBC Trustee (Cayman) Limited P.O. Box 484 HSBC House 68 West Bay Road Grand Cayman KY Cayman Islands Manager Macquarie Funds Management Hong Kong Limited Level 18, One International Finance Centre 1 Harbour View Road Central, Hong Kong Service Provider to the Trustee HSBC Institutional Trust Services (Asia) Limited No 1 Queen's Road Central Hong Kong Sub-Manager Macquarie Investment Management Limited (ABN ) Mezzanine Level, NO.1 Martin Place Sydney, NSW 2000 Australia Legal Advisors As to matters of Cayman Islands law Maples and Calder 1504, One International Finance Centre 1 Harbour View Street Hong Kong Auditor Ernst & Young Limited 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman, KY Cayman Islands As to matters of Hong Kong law Deacons 5th, Floor, Alexandra House Chater Road Central Hong Kong

4 STATEMENT OF RESPONSIBILITIES OF THE MANAGER AND THE TRUSTEE Manager's responsibilities The Manager of the Macquarie IPO China Concentrated Core Fund (formerly the MQ IPO China Concentrated Core Fund), Macquarie IPO China Gateway Fund (formerly the MQ IPO China Gateway Fund), Macquarie Asia New Stars Fund (formerly the MQ China New Stars Fund), MQ Infrastructure Strategies Fund, China Agriculture Commodity Index Fund and the Macquarie Global Thematic Resources Fund (each a sub-fund of Macquarie Unit Trust Series (collectively the "Fund" and individually the "Sub-Funds")) is required by the Trust Deed dated 23 January 2007 (the "Trust Deed") to prepare financial statements for each annual accounting period which give a true and fair view of the financial position of each of the Sub-Funds at the end of that period and of the transactions for the period then ended. In respect of these financial statements the Manager is required to:. select suitable accounting policies and then apply them consistently;. make judgments and estimates that are prudent and reasonable; and. prepare or arrange for the preparation of the financial statements on the basis that each of the Sub- Funds will continue in operation unless it is inappropriate to presume this. The Manager is also required to manage the Fund in accordance with the Trust Deed and take reasonable steps for the prevention and detection of fraud and other irregularities. The Fund is an umbrella unit trust governed by its Trust Deed. As at 30 June 2010, the Fund has established the following Sub-Funds that are authorized by the Securities and Futures Commission of Hong Kong: - Macquarie IPO China Concentrated Core Fund - Macquarie IPO China Gateway Fund - Macquarie Asia New Stars Fund - MQ Infrastructure Strategies Fund (ceased operations on 30 September 2009) As at 30 June 2010, the Fund has established the following Sub-Funds that are not authorized by the Securities and Futures Commission of Hong Kong and are not available to Hong Kong residents: - China Agriculture Commodity Index Fund - Macquarie Global Thematic Resources Fund The financial statements that follow include the financial report for the Macquarie Global Thematic Resources Fund, a Sub-Fund of the Macquarie Unit Trust Series. Separate financial statements have been prepared for the other Sub-Funds. The Macquarie Global Thematic Resources Fund commenced trading on 30 October Trustee's responsibilities The Trustee of the Fund and the Sub-Fund is required to:. ensure that the Fund and the Sub-Fund are managed by the Manager in accordance with the Trust Deed and that the investment and borrowing powers are complied with;. satisfy itself that sufficient accounting and other records have been maintained;. safeguard the property of the Fund and the Sub-Fund and rights attaching thereto; and. report to the unitholders for each annual accounting period on the conduct of the Manager in the management of the Fund and the Sub-Fund. 2

5 REPORT OF THE TRUSTEE TO THE UNITHOLDERS We hereby confirm that, in our opinion, the Manager of the Macquarie Global Thematic Resources Fund (a sub-fund of Macquarie Unit Trust Series (the "Fund" and individually the "Sub-Fund")) has, in all material respects, managed the Sub-Fund in accordance with the provisions of the Trust Deed dated, 23 January 2007, for the period from 30 October 2009 to 30 June For and on behalf of HSBC Tru t e (Cayman) lmited, Trustee 3

6 1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'''''!i ERNST & YOUNG Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY Cayman Islands Tel: Fax: ww.ey.com Independent Auditors' Report The Trustee Macquarie Unit Trust Series - Macquarie Global Thematic Resources Fund We have audited the accompanying financial statements of Macquarie Unit Trust Series - Macquarie Global Thematic Resources Fund (the "Fund") which comprise the statement of financial position as at June 30, 2010, and the statement of comprehensive income, statement of changes in net assets attributable to unitholders and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. This repoli is made solely to the trustee, as a body. Our audit work has been undertaken so that we might state to the trustee those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Fund and the trustee as a body, for our audit work, for this report, or for the opinions we have formed. Management's Responsibilty for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors' Responsibilty Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. A member firm of Ernsl& Young Global Limited

7 111/ i / i'"'' = ERNST & UNG Independent Auditors' Report (continued) Auditors' Responsibilty (continued) An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Macquarie Unit Trust Series - Macquarie Global Thematic Resources Fund as of June 30, 2010, and of its financial performance and its cash flows for the year then ended in accordance with ~T~ International Financial Reporting Standards. September 27,2010

8 STATEMENT OF COMPREHENSIVE INCOME Income Interest income Dividend income Net losses on financial assets at fair value through profit or loss Net foreign exchange losses Total net investment loss Note From 30 October 2009 to 30 June 2010 JPY 2,912 47,551,140 7 (488,599,082) (32,863,419) (473,908,449) Expenses Management fee Trustee fee Transaction costs Forrnation costs Audit fee Legal and professional fees Bank Charges Interest expenses Transaction handling fee Other expenses Total expenses Operating loss Finance costs attributable to unitholders Change in net assets attributable to unitholders from operations Other Comprehensive Income Total comprehensive income 8(a) 8(c) 8(b) 13,188,849 3,222,448 14,542,378 2,118,837 1,286, ,224 24,236 32,350 2,851,606 1,300,286 38,697,412 (512,605,861 ) (512,605,861) The notes on pages 10 to 18 are an integral part of these financial statements. 6

9 STATEMENT OF FINANCIAL POSITION Assets Cash and cash equivalents Dividends receivable Amounts receivable on unsettled foreign exchange Other receivables Financial assets held at fair value through profit or loss Total assets Note 30 June20tO JPV 5 51,158,612 2,962, , ,309,807,573 3,364,585,972 Liabilities Management fee payable Trustee fee payable Amounts payable on unsettled foreign exchange Audit fee payable Other payables Totalliablltles (excluding net assets attributable to unitholders) 8(a) 8(c) 4,731, , ,034 1,171, ,994 7,191,833 Net assets attributable to unitholders 3,357,394,139 For and on behalf of Macquarie Funds Management Hong Kong Limited, the Manager Director n behalf of......d=(:a~~an) Limned, t~e Tr~2:~.A. The notes on pages 10 to 18 are an integru of these financial statements. 7

10 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS Net assets attributable to unitholders at the beginning of the year From 30 October 2009 to 30 June 2010 JPY Proceeds on units issued 5,970,000,000 Redemption of units (2,100,000,000) Net increase from unit transactions 3,870,000,000 Decrease in net assets attributable to unitholders frorn operations (512,605,861 ) Net assets attributable to unitholders at the end of the year 3,357,394,139 Units in issue at the beginning of the year Units issued 5,871,370,444 Units redeemed (1,883,296,427) Units in issue at the end of the year 3,988,074,017 The notes on pages 10 to 18 are an integral part of these financial statements. 8

11 STATEMENT OF CASH FLOWS Cash flow from operating activities Payment on purchase of financial assets at fair value through profit or loss Proceeds from sales of financial assets at fair value through profit or loss Interest received Dividend received Net operating expenses paid Net cash used in operating activities Cash flows from financing activities Proceeds from issue of units Payment on redemption of units Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of period Note From 30 October 2009 To 30 June 2010 JPY (8,007,312,277) 4,208,705,077 2,905 44,588,268 (64,825,361 ) (3,818,841,388) 5,970,000,000 (2,100,000,000) 3,870,000,000 51,158,612 Cash and cash equivalents at end of period, represented by bank balances 5 51,158,612 The notes on pages 10 to 18 are an integral part of these financial statements. 9

12 1 The Fund and the Sub-Funds Macquarie Unit Trust Series (formally the MQ Unit Trust Series) (the "Fund") is a Cayman Islands based umbrella trust. The Fund was established as an exempted trust under the laws of the Cayman Islands by a trust deed (the "Trust Deed") dated 23 January 2007, as amended, made between MQ Portfolio Management Limited as manager and HSBC Trustee (Cayman) Limited as trustee (the "Trustee"). Effective from 1 July 2008, Macquarie Funds Management Hong Kong Limited ("MFMHKL") was appointed as the manager of the Fund (the "Manager"). MQ Portfolio Management Limited ("MQPML") retired as the manager of the Fund on this date. MFMHKL appointed MQPML as the sub-manager (the Sub-Manager) in respect of the Fund pursuant to a sub-management agreement. The Trust Deed of the Fund provides for the establishment of a number of different sub-funds. At 30 June 2010, there were six established sub-funds: Macquarie IPO China Concentrated Core Fund (formerly the MQ IPO China Concentrated Core Fund), Macquarie IPO China Gateway Fund (formerly the MQ IPO China Gateway Fund), Macquarie Asia New Stars Fund (formerly the MQ China New Stars Fund), MQ Infrastructure Strategies Fund, China Agriculture Commodity Index Fund and the Macquarie Global Thematic Resources Fund. This financial report presents the financial statements of Macquarie Global Thematic Resources Fund which commenced operations on 30 October 2009 (the "Sub-Fund") and was established and constituted by a deed supplemental to the Trust Deed (the "Supplemental Deed"). Separate financial statements have been prepared for the other Sub-Funds. The investment objective of Macquarie Global Thematic Resources Fund is to capture the growing global demand for resources driven by the urbanisation and industrialisation of countries such as India and China through investment in the listed equities of resource and resource-related companies. 2 Summary of significant accounting policies The principal accounting policies adopted in the preparation of these financial statements are set out below. a) Basis of preparation The financial statements of the Macquarie Global Thematic Resources Fund have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the Manager and the Trustee to exercise their judgment in the process of applying the accounting policies the Sub-Funds. The term net assets refers to net assets attributable and redeemable by unitholders unless otherwise stated. New standards and amendments to standards that are not yet effective and have not been early adopted by the Sub-Fund Accounting standards and interpretations that have been issued or amended but are not yet effective have not been adopted by the Sub-Fund for the annual reporting period ended 30 June, The directors of the fund are yet to assess the impact of these standards and interpretations but those likely to impact the Sub-Fund are: IFRS 9 - IFRS 9 was issued by the IASB in November 2009 and introduces new requirements for the classification and measurement of financial assets effective from January 1, 2013, with early adoption 10

13 2 Summary of significant accounting policies (continued) a) Basis of preparation (continued) New standards and amendments to standards that are not yet effective and have not been early adopted by the Sub-Fund (continued) permitted. Standards and interpretations that are not expected to have a material impact on the Sub-Fund have not been included. b) Foreign currency translation i) Functional and presentation currency In view of the international nature of the operations the Sub-Funds, the amounts shown in these financial statements are presented in Japanese Yen ("JPY") which is the Sub-Fund's functional and presentation currency. The Manager considers the Japanese Yen to be the functional currency of the Macquarie Global Thematic Resources Fund due to unitholders' funds being raised in Japanese Yen. ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. Translation differences on non-monetary financial assets such as financial assets at fair value through profit or loss are recognised on the statement of comprehensive income within the fair value net gains or losses. c) Financial assets at fair value through profit or loss i) Classification The Sub-Fund classifies its investments in listed equity securities as financial assets at fair value through profit o'r loss. These financial assets are designated by the Manager at fair value through profit or loss upon inception. Financial assets designated as held at fair value through profit or loss upon inception are those that are managed and their performance evaluated on a fair value basis in accordance with the documented investment strategy of the Sub-Fund. The Manager evaluates the information about these financial assets on a fair value basis together with other related financial information. ii) Recognition/derecognition Regular-way purchases and sales of investments are recognised on the trade date - the date on which the Sub-Fund commits to purchase or sell the investment. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Sub-Fund has transferred substantially all risks and rewards of ownership. iii) Measurement Financial assets held at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed in the statement of comprehensive income. Subsequent to initial recognition, all financial assets held at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value of the "financial assets held at fair value through profit or loss" category are presented in the statement of comprehensive income in the period in which they arise. ivy Fair value estimation The fair value of financial instruments traded in active markets (such as trading securities) is based on quoted market prices at the period end date. The quoted market price used for bought listed equity securities held by the Sub-Fund is the current bid price, for sold listed equity is current ask price. d) Income and expense Dividend income is recognised in the statement of comprehensive income when the right to receive payment by the Sub-Fund is established. Interest income is recognised in the statement of comprehensive income on a time-proportion basis using the effective interest method. 11

14 2 Summary of significant accounting policies (continued) (d) Income and expense (continued) Expenses are accounted for on an accruals basis and charged to the statement of comprehensive income as incurred. e) Payables Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. f) Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest method, less provision for impairment. g) Cash and cash equivalents Cash and cash equivalents include cash on hand and deposits held at call with financial institutions with original maturities of three months or less. h) Amounts due from and due to brokers Amounts due from and due to brokers represent receivables for listed equity securities sold and payables for listed equity securities purchased that have been contracted for but not yet settled or delivered on the period end date, respectively. i) Units Units of the Sub-Fund are redeemable at the option of the unitholders and are classified as financial liabilities. The units can be put back to the Sub-Fund for cash equal to a proportionate share of the Sub- Fund's net asset value. The units are carried at the redemption amount that is payable at the period end date if the unitholder exercises the right to put the units back to the Sub-Fund. Units are issued and redeemed at the Unitholder's option at prices based on the Sub-Fund's net asset value per unit at the time of issue or redemption. The Sub-Fund's net asset value per unit is calculated by dividing the net assets attributable to the unitholders with the total number of outstanding units. The minimum initial investment for Units in the Sub-Fund is JPY 100,000,000 (or such lesser amount as the Manager may in it discretion agree from time to time, whether generally or in a particular case). Additional subscriptions for Units in the Sub-Fund may be made in increments equal to JPY 100,000, subject to the discretion of the Manager to accept applications for a lesser amount, whether generally or in a particular case. The minimum remaining holding for the Sub-Fund is JPY 100,000,000. The Manager or the Trustee may suspend the realisation of Units or delay the payment of realisation proceeds during any periods in which the determination of the Net Asset Value of the Sub-Fund is suspended. In accordance with the provisions of the Explanatory Memorandum of the Sub-Fund, investment positions are valued based on the last traded market price for the purpose of determining the net asset value per unit for subscriptions and redemptions. However, as stated in note 2c), for the purpose of compliance with IFRS, investment positions are valued at bid/ask price. Consequently, the differences described above adjust the carrying amount of the net assets attributable to unitholders and is discussed in note 3. j) Proceeds and payments on subscriptions and redemption of units The net asset value of the Sub-Fund is computed daily. Prices for subscriptions and redemptions are based on the net asset value per unit calculated as at the close of business on the relevant valuation day in accordance with the Sub-Fund's Explanatory Memorandum. Proceeds and payments for units subscribed and redeemed are shown as movements in the statement of changes in net assets attributable to unitholders. 12

15 2 Summary of significant accounting policies (Continued) k) Transaction costs Transaction costs are costs incurred to acquire financial assets or liabilities at fair value through profit or loss. They include fees and commissions paid to agents, advisors, brokers and dealers. Transaction costs, when incurred, are immediately recognised in the statement of comprehensive income as other expenses. I) Taxation There is currently no taxation imposed on income of capital gains by the Government of the Cayman Islands. The only taxes payable by the Sub-Fund are withholding taxes of other countries applicable to certain investment income. As a result, no income tax liability or expense has been recorded in the financial statements. 3 Reconciliation of net assets attributable to unitholders In accordance with the provisions in the Explanatory Memorandum of the Sub-Fund, listed investments are stated at the last traded price on the valuation day for the purpose of determining net asset value per unit for subscriptions and redemptions and for various fee calculations. However, as stated in note 2c), the accounting policy of the Sub-Fund for the purpose of compliance with las 39 and for reporting purposes is to value its listed investments at the relevant bid/ask market prices on the period end date. As at 30 June 2010, the difference between the valuation of investments stated in the financial statements and the valuation methodology indicated in the Explanatory Memorandum of the Sub-Fund, results in an increase in values of investments by: Net assets attributable to unitholders (calculated in accordance with redemption requirements) Adjustment for amortised Inception costs Adjustment from last traded prices to bid/ask market prices Net assets attributable to unitholders (calculated in accordance with International Accounting Standards) 2010 JPY 3,363,303,177 (1,565,407) (4,343,631) 3,357,394,139 4 Financial risk management a) Strategies in using financial instruments The Sub-Fund's activities expose it to a variety of financial risks: market risk (including price risk, currency risk, and interest rate risk), credit risk and liquidity risk. The overall risk management programme of the Sub-Fund focuses on ensuring compliance with the Sub- Fund investment objective and seeks to maximise the returns derived for the level of risk to which the Sub- Fund is exposed. Financial risk management is carried out by the Manager. Financial risk management is carried out by the investment management department under policies approved by Macquarie Funds Management Hong Kong Limited's senior managers or by the board of the Manager. b) Market risk i) Price risk Market price risk is the risk that the value of the investments held by the Sub-Fund will fluctuate as a result of changes in market prices (other than those arising from currency risk or interest rate risk). Price risk is monitored by the Manager on an ongoing basis and is managed through diversification of the investment portfolio and following the policies to minimise exposure to price risk as follows:. Overall portfolio exposure - managed by ensuring that the overall exposure of the portfolio is in compliance with the investment objective of the Sub-Fund;. Stocks limits - manage exposure to any single stock and ensure diversification;. Country limits - manage exposure to any single country and ensure diversification across allowable countries. 13

16 . 4 Financial risk management (continued). b) Market risk (continued) Details in terms of how the price risk is managed by the Manager of the Sub-Fund are discussed in note 4a) above. The Sub-Funds investments in equity securities are substantially publicly traded. The Sub-Fund is not directly correlated with any particular stock market indices. The Manager makes stock selections and i) Price risk (continued) monitors the Sub-Funds investment portfolios based on details discussed in note 4a) above. The below table shows the impact in absolute terms on the statement of comprehensive income and net asset values of the Sub-Fund from both the negative and positive reasonable possible movements in equity prices. Actual movements of the reasonable possible shift may be greater or less than anticipated due to a number of factors, including unusually large market shocks resulting from changes in the performance of economies, markets and securities subsequent to the statement of financial position date in which the Sub- Fund invests. As a result, the reasonable possible shift used for the purpose of market price risk sensitivity analysis may not be a definitive indicator of future variations in the risk variables. The analysis is undertaken to reflect the fact that the Manager does not benchmark the performance of the Sub-Fund against the any stock indices. In deriving the reasonable possible movement for the purpose of market price risk sensitivity analysis under "IFRS 7 - Financial Instruments: Disclosures", the Manager considers the historical price movements and economic conditions of the investments by the Sub-Fund as at period end date based on a time frame that the Sub-Fund next presents the financial statements. When deciding the historical price movements and economic conditions that the Sub-Fund is exposed to from the investments held at the period end date, the Manager considers the price movements of the location of stock exchanges in which the equity securities are being listed and the economic environment of the countries that the equity securities are exposed to. Results below exclude the impact from performance fees, if any: Location of stock exchanges Australia Canada Europe Great Britain Hong Kong Indonesia Japan Norway South Africa Sweden United States Period ended 30 June 2010 Reasonable Impact to statement of possible shift comprehensive income % JPY 15 55,865, ,538, ,113, ,723, ,160, ,161, ,578, ,310, ,986, ,552, ,479,423 ii) Interest rate risk The majority of the Sub-Funds financial assets and liabilities are non-interest bearing. As a result, the Sub- Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Any excess cash and cash equivalents are invested at short-term market interest rates. iii) Currency risk The Sub-Fund may hold monetary assets and liabilities denominated in currencies other than its functional currency. However, the majority of the Sub-Funds monetary assets and liabilities are in Japanese Yen, therefore the Sub-Fund is not exposed to significant amounts of risk due to fluctuations in foreign currency exchange rates. 14

17 4 Financial risk management (Continued) c) Credit risk Credit risk arises from cash and cash equivalents, deposits with banks and other financial institutions and amounts due from brokers. None of these assets are impaired nor past due but not impaired. The Sub-Fund limits exposure to credit risk by transacting the majority of its securities and contractual commitment activities with broker-dealers, banks and regulated exchanges with high credit ratings and that the Manager considers to be well established. In accordance with the policy of the Sub-Fund, the Manager monitors the credit position of the Sub-Fund on a monthly basis. d) Liquidity risk The Sub-Fund is exposed to daily cash redemptions of redeemable units. It therefore invests the majority of its assets in investments that are traded in ordinarily active markets and can generally be liquidated within a short period of time. The Sub-Fund may, from time to time, invest in derivative contracts traded over the counter, which are not traded in an organised market and may be illiquid. As a result, the Sub-Fund may not be able to realise its investments in these instruments quickly at an amount close to their fair value to meet its liquidity requirements or to respond to specific events such as a deterioration in the creditworthiness of any particular issuer. No such investments were held at the end of the reporting period. In accordance with the Trust's policy, the risk management area of the Investment Manager monitors the Trust's liquidity position on a daily basis. This risk is managed by:. monitoring liquidity with respect to liquid assets and large single client holdings. restricting exposure to illiquid, long-dated stock floats The Compliance Committee of the Manager reviews any identified exceptions to internal risk policies and procedures on a quarterly basis. Redemption of units in the Sub-Fund is not subject to any notice period requirement. Units in the Sub-Fund are redeemable on a daily basis. If the Sub-Fund receives withdrawal requests comprising more than 10% of units in issue, the Sub-Fund may pro rata the withdrawal request and stagger the processing of remaining unsatisfied withdrawal requests. The Manager or the Trustee may suspend the realisation of Units or delay the payment of realisation proceeds during any periods in which the determination of the Net Asset Value of the Sub-Fund is suspended. All other liabilities are payable within 30 days. e) Fair value estimation The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and trading securities) are based on quoted market prices at the statement of financial position date. The fair value of financial assets and liabilities that are not traded in an active market (for example, overthe-counter derivatives) is determined by using valuation techniques. The Sub-Fund uses a variety of methods and makes assumptions that are based on market conditions existing at the end of the reporting period. Valuation techniques used include the use of comparable recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as litte as possible on entity-specific inputs. All over-the-counter derivatives valued in this manner are based on observable market inputs. The carrying value less impairment provision of other receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Sub- Fund for similar financial instruments. The carrying amounts of financial assets and liabilities included in the statement of financial position are a reasonable estimate of their fair value and of the credit risk of these assets and liabilities. 15

18 4 Financial risk management (Continued) e) Fair value estimation (continued) The Sub-Fund has adopted the amendments to IFRS 7, effective 1 July The fair value hierarchy has the following levels:. Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);. inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and. inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. The following table analyses within the fair value hierarchy of the Sub-Funds financial assets and liabilities (by class) measured at fair value at 30 June 2010: 30 June 2010 Assets Level 1 JPV Level 2 JPV Level 3 JPV Total balance JPV Financial assets held at fair value through profit and loss - Equity securities 3,309,807,573 3,309,807,573 Total Assets 3,309,807,573 3,309,807,573 5 Cash and cash equivalents Cash at bank Currency As at 30 June 2010 MACQUARIE GLOBAL THEMATIC RESOURCES JPV 51,158,612 6 Financial assets held at fair value through profit or loss 30 June 2010 Designated at fair value through profit or loss Listed equity securities Total financial assets held at fair value through profit or loss JPV 3,309,807,573 3,309,807,573 7 Net gains/(iosses) on financial instruments held at fair value through profit or loss Financial Assets Net losses on financial instruments designated as at fair value through profit or loss Net losses on foreign exchange Net gains/(iosses) on financial instruments designated as at fair value through profit or loss Year ended 30 June 2010 JPV (488,599,082) (32,863,419) (521,462,501 ) 8 Related party transactions/transactions with the Trustee, the Manager and their connected persons Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. Related parties of the Sub-Fund are the Trustee, the Manager and their connected persons. All transactions entered into during the year between the Sub-Fund, the Trustee, the Manager and their 16

19 8 Related party transactions/transactions with the Trustee, the Manager and their connected persons (continued) connected persons were carried out in the normal course of business and on normal commercial terms. To the best of the knowledge of the Trustee and the Manager, the Sub-Fund does not have any other transactions with its connected persons except for those disclosed below. a) Management fee The Manager is entitled to receive a management fee from the Sub-Funds of 0.5% per annum of the net asset value of the Sub-Fund calculated as at each valuation day. The management fee is accrued on a daily basis and payable quarterly. The management fees charged during the period and the amount outstanding at period end date were: MACQUARIE GLOBAL THEMATIC RESOURCES Management fee expense 2010 JPY 13,188,849 Management fee payable 2010 JPY 4,731,993 b) Transaction handling fee The Trustee is entitled to receive a transaction handling fee for each purchase and sales transaction based on the stock exchanges where the equity securities are listed. The transaction handling fees charged during the period and the amount outstanding as at period end were: MACQUARIE GLOBAL THEMATIC RESOURCES c) Trustee fee Transaction handling fee expense 2010 JPY 2,851,606 Transaction handling fee payable 2010 JPY 193,994 The Trustee is entitled to receive a trustee fee of 0.1 % per annum of the net asset value of the Sub-Fund. The trustee fee is borne by the fund for any transaction, processing and valuation fees, and such other applicable fees as may be agreed with the Manager. d) Bank balances Bank balances are maintained with an affiliated company of the Trustee. Bank balances held with this affiliated company of the Trustee as at period end date were: MACQUARIE GLOBAL THEMATIC RESOURCES 2010 JPY 51,158,612 e) Manager's and its related parties' holding in the Sub-Funds As at 30 June 2010, no key management personnel or parties related to the Manager held units in the Sub- Fund. f) Transactions in equity securities of companies with a common director As at 30 June 2010, no equity securities that the Sub-Fund invested in have a common director with the Manager. g) Holdings in other Sub-Funds As at 30 June 2010, the Sub-Fund held no investments in any schemes which are also managed by Macquarie Funds Management Hong Kong Limited or its related parties. 17

20 8 Related party transactions/transactions with the Trustee, the Manager and their connected persons (continued) h) Other services The Sub-Funds may utilize the brokerage, custodian, agency and banking services of the Trustee, the Manager and their connected persons. 9 Taxation The Fund was established as an exempted trust under the laws of Cayman Islands, and obtained an undertaking from the Governor-in-Council of the Cayman Islands that, in accordance with Section 81 of the Trusts Law (2001 Revision) of the Cayman Islands, for a period of 50 years from 23 January 2007, no laws thereafter enacted in the Cayman Islands imposing any tax or duty on income, capital assets, gains or appreciations will apply to the Fund. The reporting entity, being the Macquarie Global Thematic Resources Fund which is a Sub-Fund constituted by a Supplemental Deed to the Trust Deed of the Fund, is accorded the same exemption received by the Fund. Overseas withholding tax was charged on certain dividend and interest income received during the period. 10 Soft commission arrangements The Manager may effect transactions, provided that any such transaction is consistent with standards of best execution, by or through the agency of another person for the account of the Sub-Fund with whom the Manager or any of its connected persons have an arrangement under which that party will from time to time provide to or procure for the Manager or any of its connected persons goods, services or other benefits (such as research and advisory services, computer hardware associated with specialized software or research services and performance measures) the nature of which is such that their provision can reasonably be expected to benefit the Sub-Fund as a whole and may contribute to an improvement in the performance of the Sub-Fund. For the avoidance of doubt, such goods and services may not include travel, accommodation, entertainment, general administrative goods or services, general office equipment or premises, membership fees, employees' salaries or direct money payments. As at 30 June 2010 neither the Manager nor any of its connected persons received soft commissions from brokers or dealers in respect of transactions for the account of the Sub-Fund. 11 Contingent assets and liabilities and commitments The Fund and the Sub-Fund have no contingent assets, contingent liabilities or commitments as at 30 June Events occurring after year end No significant events have occurred since the end of the financial period which would impact on the financial position of the Sub-Fund disclosed in the statement of financial position as at 30 June 2010, or on the results and cash flows of the Sub-Fund for the year ended on that date. 13 Approval of financial statements The financial statements were authorised to issue by the Trustee and the Manager on 27 September