Global X S&P Crude Oil Futures Enhanced ER ETF Summary (Year Ended 31 March 2022)
Core Content Overview
The document provides the audited financial statements and related reports for Global X S&P Crude Oil Futures Enhanced ER ETF, a sub-fund of Global X ETF Series II, for the year ended 31 March 2022. It includes the statement of net assets, statement of profit or loss and other comprehensive income, statement of changes in net assets attributable to unitholders, statement of cash flows, and notes to the financial statements. The report is issued by HSBC Institutional Trust Services (Asia) Limited as the Trustee and PricewaterhouseCoopers as the Independent Auditor.
Key Sections and Highlights
1. Trustee's Report
- The Trustee confirms that the Manager, Mirae Asset Global Investments (Hong Kong) Limited, has managed the Sub-Fund in accordance with the Trust Deed (dated 25 May 2016, with amendments on 1 November 2019 and 31 December 2019).
- The Sub-Fund's main business is to track the S&P GSCI Crude Oil Enhanced Index Excess Return through investments in crude oil futures contracts.
2. Independent Auditor's Report
- The auditor, PricewaterhouseCoopers, issued an unqualified opinion, stating that the financial statements present a true and fair view in accordance with IFRSs.
- The audit focused on the existence, valuation, and net gain/loss of financial liabilities at fair value through profit or loss (FVPL), which primarily include listed future contracts.
- No material exceptions were found during the audit.
- The auditor confirmed that the financial statements were prepared in accordance with the Trust Deed and Appendix E of the SFC Code.
3. Financial Statements
Statement of Net Assets (as at 31 March 2022)
| Item |
2022 (HK$) |
2021 (HK$) |
| Assets |
84,586,569 |
105,427,085 |
| - Amount due from a broker |
16,195,033 |
19,561,018 |
| - Amount due from the Manager |
9,982 |
65,407 |
| - Interest receivables |
9,463 |
4,829 |
| - Time deposits |
15,092,769 |
- |
| - Cash and cash equivalents |
53,279,322 |
85,795,831 |
| Liabilities |
22,145,767 |
7,203,715 |
| - Financial liabilities at FVPL |
6,118,751 |
5,218,988 |
| - Management fee payable |
96,034 |
73,165 |
| - Trustee fee payable |
11,720 |
11,706 |
| - Formation fee payable |
- |
1,704,010 |
| - Administration fee payable |
395,611 |
191,566 |
| - Amount payable on redemption of units |
15,446,250 |
- |
| - Other payables and accruals |
69,081 |
120 |
| Equity |
62,440,802 |
98,223,370 |
| Number of units in issue |
10,500,000 |
31,000,000 |
| Net asset value per unit |
5.9467 |
3.1685 |
4. Statement of Profit or Loss and Other Comprehensive Income
| Item |
2022 (HK$) |
2021 (HK$) |
| Income |
51,198,546 |
87,356,116 |
| - Interest income |
57,840 |
290,751 |
| - Other income |
1,571,016 |
- |
| - Net gain on FVPL financial assets and liabilities |
49,512,350 |
87,046,881 |
| - Net exchange gain |
57,340 |
18,484 |
| Expenses |
(1,232,361) |
(1,333,552) |
| - Management fee |
(602,693) |
(900,602) |
| - Trustee fee |
(133,452) |
(144,096) |
| - Transaction costs |
(143,090) |
(204,798) |
| - Auditor's remuneration |
(48,067) |
(10,335) |
| - Other administration fees |
(305,059) |
(73,721) |
| Operating profit |
49,966,185 |
86,022,564 |
| Finance costs |
(1,503) |
(1,528) |
| Profit and total comprehensive income |
49,964,682 |
86,021,036 |
5. Statement of Changes in Net Assets Attributable to Unitholders
| Item |
2022 (HK$) |
2021 (HK$) |
| Net assets at beginning of year |
98,223,370 |
49,321,209 |
| Issue of units |
3,745,100 |
105,066,450 |
| Redemption of units |
(89,492,350) |
(142,185,325) |
| Net redemption of units |
(85,747,250) |
(37,118,875) |
| Profit and total comprehensive income |
49,964,682 |
86,021,036 |
| Net assets at end of year |
62,440,802 |
98,223,370 |
6. Statement of Cash Flows
| Item |
2022 (HK$) |
2021 (HK$) |
| Cash flows from operating activities |
37,784,491 |
91,770,485 |
| - Profit and total comprehensive income |
49,964,682 |
86,021,036 |
| - Adjustments for non-cash items |
- |
- |
| - Interest received |
53,206 |
314,849 |
| - Interest paid |
(1,503) |
(1,528) |
| Net cash flows from operating activities |
37,784,491 |
91,770,485 |
| Cash flows from financing activities |
(70,301,000) |
(25,131,995) |
| - Proceeds from issue of units |
3,745,100 |
117,053,330 |
| - Payments on redemption of units |
(74,046,100) |
(142,185,325) |
| Net (decrease)/increase in cash and cash equivalents |
(32,516,509) |
66,638,490 |
| - Cash and cash equivalents at beginning of year |
85,795,831 |
19,157,341 |
| - Cash and cash equivalents at end of year |
53,279,322 |
85,795,831 |
7. Notes to the Financial Statements
- The Sub-Fund is an umbrella unit trust governed by Hong Kong law.
- The investment objective is to provide returns closely corresponding to the S&P GSCI Crude Oil Enhanced Index Excess Return, which tracks WTI crude oil futures contracts.
- The financial instruments are classified under IFRS 9:
- Financial assets at amortised cost: Includes short-term receivables, time deposits, and cash equivalents.
- Financial assets at FVPL: Includes futures contracts.
- The net gain on FVPL for the year was HK$49,512,350, representing the main component of the Sub-Fund's comprehensive income.
- The auditor's responsibilities include assessing the accuracy, completeness, and fair presentation of the financial statements, and ensuring they are free from material misstatement.
8. Key Audit Matters
- The primary audit focus was on the valuation and existence of financial liabilities at FVPL, specifically listed future contracts.
- The auditor confirmed the valuation of these liabilities by comparing the Sub-Fund’s pricing with external sources.
- The existence of these liabilities was verified through direct confirmations from the custodian.
- The net gain on FVPL financial assets and liabilities was tested for accuracy.
- No material exceptions were identified during the audit.
9. Other Information
- The manager and trustee are responsible for other information in the annual report, excluding the financial statements and auditor's report.
- The auditor does not express an opinion on the other information and does not provide assurance on it.
- The audit procedures were conducted in accordance with International Standards on Auditing (ISAs).
10. Important Notes
- The opinion expressed is based on the Manager's view and is subject to change.
- Investors should not rely on the information contained in this report for investment decisions.
- The financial statements are prepared in HK$ and follow the historical cost convention, except for FVPL items.
