iShares MSCI Malaysia Index Fund (EWM)

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The below is too glowing. Top almost at hand?

SUMMARY
We rate iShares MSCI Malaysia at A. Positive factors that influence this rating include a well
above average total return, low asset volatility, low expense structure and long term portfolio
management tenure. The fund invests approximately 100% of its assets in stocks and may be
considered for investors seeking a Non-US Equity strategy.

POSITIVES AND RISKS
Total return ranks well below peers over the last three years. The iShares MSCI Malaysia has
returned an annual rate of 0.51% since inception. More recently, the fund has generated a total
return of 15.72% in the last five years, 19.95% in the last three years, and 51.55% in the last
year. How does that compare to other equity funds? In the last five years, it has outperformed
80% of them. It has also outpaced 83% of its competitors on a three year basis and 99% of them
over the last year for the period ending 3/31/2007. On a year to date basis, EWM has returned
24.40%.



Downside risk has been above average. EWM has a draw down risk of -13.58%, which is the
largest price decline experienced over the last three years. This fund has a three year standard
deviation of 15.6. This fund has had moderate volatility in its monthly performance over the last
36 months. As of 3/31/2007, the fund was trading at a price of $10.83, which is 4.6% below its
52-week high of $11.35 and 56.1% above its 52-week low of $6.94.



No load expense structure helps performance. On total assets of $374.33 million, EWM
maintains a low expense ratio compared to its Non-US Equity peers of just 0.54% to cover all
operating costs. Brokerage costs for the fund to buy and sell shares are not included in the
expense ratio. As EWM is an exchange traded fund, it has no front end or back end load.



Manager tenure and performance record are net positives. Substandard fund managers tend to
be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The
iShares MSCI Malaysia has been managed by S. Jane Leung / Patrick O' Connor for the last 11
years. Over that period, the manager was able to capture more actual gains in excess of the
expected return than 52% of other fund managers.