WisdomTree Hedged Commodity
Securities Limited
Registered No: 109413
Annual Report and Audited Financial Statements for the
Year ended 31 December 2025
WisdomTree Hedged Commodity Securities Limited
Contents
Management and Administration 1
Directors' Report 2 - 9
Statement of Directors' Responsibilities 10
Independent Auditor's Report 11-18
Statement of Profit or Loss and Other Comprehensive Income 19
Statement of Financial Position 20
Statement of Changes in Equity 21
Statement of Cash Flows 22
Notes to the Financial Statements 23-38
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WisdomTree Hedged Commodity Securities Limited
Management and Administration
Directors Administrator
Bryan Governey (As from 21 January 2025)
Vinod Rajput (Appointed on 21 January 2025) Apex Financial Services (Alternative Funds) Limited
Elizabeth Casely (Appointed on 02 July 2025) IFC 5
Timothy Darcy (Appointed on 07 August 2025) St Helier
Olivia Vuillemin (Appointed on 21 January 2025 Jersey, JE1 1ST
and resigned on 02 July 2025)
Christopher Foulds (Resigned on 21 January 2025) (Up to 21 January 2025)
Steven Ross (Resigned on 21 January 2025) R&H Fund Services (Jersey) Limited
Peter Ziemba (Resigned on 07 August 2025) Ordnance House
PO Box 83
Registered Office
31 Pier Road
IFC 5 St Helier
St Helier Jersey,JE4 8PW
Jersey, JE1 1ST
Manager Company Secretary
(As from 21 January 2025) (As from 21 January 2025)
WisdomTree Management Jersey Limited Apex Financial Services (Secretaries) Limited
IFC 5 IFC 5
St Helier St Helier
Jersey, JE1 1ST
Jersey, JE1 1ST
(Up to 21 January 2025) (Up to 21 January 2025)
WisdomTree Management Jersey Limited R&H Fund Services (Jersey) Limited
Ordnance House Ordnance House
3 1 Pier Road PO Box 83
St Helier 31 Pier Road
Jersey, JE4 8PW St Helier
Jersey,JE4 8PW
Commodity Contract Counterparty
Citigroup Global Markets Limited
Jersey Legal Advisers
Citigroup Centre Mourant Ozannes (Jersey) LLP
Canada Square, Canary Wharf 22 Grenville Street
London, E14 5LB St Helier
United Kingdom Jersey, JE4 8PX
Commodity Contract Counterparty Registrar
Merrill Lynch International
Computershare Investor Services (Jersey) Limited
2 King Edward Street 1 Castle Street
London, EC1A 1HQ St Helier
United Kingdom Jersey, JE1 1ES
Trustee Auditor
The Law Debenture Trust Corporation plc Ernst & Young LLP
8th Floor Liberation House
100 Bishopsgate Castle Street
London, EC2N 4AG St Helier
United Kingdom Jersey, JE1 1EY
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- 1 -
WisdomTree Hedged Commodity Securities Limited
Directors’ Report
Directors
Bryan Governey
Vinod Rajput (Appointed on 21 January 2025)
Elizabeth Casely (Appointed on 02 July 2025)
Timothy Darcy (Appointed on 07 August 2025)
Olivia Vuillemin (Appointed on 21 January 2025 and resigned on 02 July 2025)
Christopher Foulds (Resigned on 21 January 2025)
Steven Ross (Resigned on 21 January 2025)
Peter Ziemba (Resigned on 07 August 2025)
Directors’ Interests
Principal Activities
Each time Currency-Hedged Commodity Securities are issued or redeemed, matching Commodity Contracts between the Company and a Commodity
Contract Counterparty are created or cancelled by the Company.
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The price of each class of Currency-Hedged Commodity Security is calculated on a daily basis and reflects movements in the commodity index relevant
to that class since the previous day, adjusted by any applicable fees. Therefore, the return for a particular class of Currency-Hedged Commodity Security
will primarily be based on the performance of the relevant commodity index.
Each currency-hedged commodity index is calculated by reference to the corresponding un-hedged commodity index and provides a hedge against
movements in the exchange rate between the US Dollar and the currency of denomination of that commodity index, which is rebalanced on a daily basis.
As the Company issues securities which provide exposure to the daily movements in one of the currency-hedged Commodity Indices and the Company
gains exposure to the movements in that Commodity Index by holding corresponding Commodity Contracts, the Company is not required to undertake
any currency hedging activities.
The Company earns a management fee and a licence allowance based upon the number of Currency-Hedged Commodity Securities in issue. These fees
are expressed as an annual percentage, calculated on a daily basis and reflected in the net asset value (“NAV”) of the Currency-Hedged Commodity
Securities on a daily basis, and paid monthly in arrears.
The directors of WisdomTree Hedged Commodity Securities Limited (“HCSL” or the “Company”) submit herewith the annual report and financial
statements of the Company for the year ended 31 December 2025.
The names and particulars of the directors of the Company during and since the end of the financial year are:
No director has an interest in the Shares of the Company as at the date of this report.
The Company’s principal activity is the issue and listing of currency-hedged commodity securities (“Currency-Hedged Commodity Securities”).
Currency-Hedged Commodity Securities are undated secured limited recourse financial instruments designed to track the price of individual commodity
futures contracts or baskets of commodity futures contracts for which the effects of foreign exchange risks are hedged, and give investors an exposure
similar to that which could be achieved by managing a long fully cash collateralised unleveraged position in futures contracts of specific maturities, less
applicable fees. However, unlike managing a futures position, Currency-Hedged Commodity Securities involve no need to roll from one futures contract
to another, no margin calls, and no other brokerage or other costs in holding or rolling futures contracts (although security holders incur other costs in
holding Currency-Hedged Commodity Securities). No trading or management of futures contracts is required by the Company. Currency-Hedged
Commodity Securities allow investors to buy and sell their interest through the trading of a security on the London Stock Exchange and any other
exchange to which that security may be admitted to trading from time to time.
Currency-Hedged Commodity Securities are backed by commodity contracts (“Commodity Contracts”) with terms corresponding to the terms of
Currency-Hedged Commodity Securities. The Company gains exposure to the movements in the commodity indices by holding corresponding
Commodity Contracts. The Company is currently party to two facility agreements, one with Citigroup Global Markets Limited (“Citigroup”) and one
with Merrill Lynch International (“Merrill Lynch”) (together the “Commodity Contract Counterparties”), enabling the Company to create and cancel
Commodity Contracts on an ongoing basis.
WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Principal Activities (continued)
Review of Operations
Classic and Longer Dated GBP-Hedged Commodity Securities 3 - -
Classic and Longer Dated EUR-Hedged Commodity Securities - 17 12
Total Currency-Hedged Commodity Securities
3 17 12
•
•
•
all Commodity Securities are subject to the licence allowance of 0.05% per annum.
The Company has entered into contractual obligations to issue and redeem Currency-Hedged Commodity Securities at set prices on each trading day.
These prices are based on an agreed formula published in the Prospectus, and are equal to the published NAVs of each class of Currency-Hedged
Commodity Security. Each time Currency-Hedged Commodity Securities are issued or redeemed, matching Currency-Hedged Commodity Contracts
between the Company and a Currency-Hedged Commodity Contract Counterparty are created or cancelled by the Company.
The Company recognises its financial assets (Commodity Contracts) and financial liabilities (Currency-Hedged Commodity Securities) at fair value in
the Statement of Financial Position. The gain or loss on Currency-Hedged Commodity Securities and Commodity Contracts is recognised through profit
or loss in line with the Company’s accounting policy. This is presented in more detail in note 6 and 7 to the financial statements.
The Company is entitled to a management fee and licence allowance which are calculated on a daily basis:
Currency-Hedged classic and longer Dated EUR-Hedged Commodity Securities have a management fee rate of 0.49% per annum; and
The Company is also entitled to apply creation and redemption fees on the creation and redemption of Currency-Hedged Commodity Securities.
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Creation and redemption fees are included and settled between the Authorised Participants and the Commodity Contract Counterparties as part of each
creation or redemption, and are transferred directly to ManJer by the Commodity Contract Counterparties on a monthly basis. Accordingly, there are no
cash flows through the Company.
The most recent Prospectus was issued on 24 September 2025. As at 31 December 2025, the Company had the following number of classes, in aggregate,
of Currency-Hedged Commodity Securities in issue and admitted to trading on the following exchanges:
The Company has entered into a service agreement with WisdomTree Management Jersey Limited (“ManJer” or the “Manager”), whereby ManJer is
responsible for supplying or procuring the supply of all management and administration services required by the Company, (including marketing) as well
as the payment of costs relating to the listing and issue of Currency-Hedged Commodity Securities. In return for these services, the Company has an
obligation to remunerate ManJer with an amount equal to the aggregate of the management fee, licence allowance and the creation and redemption fees
(the “ManJer Fee”). The management fee and licence allowance are transferred directly to ManJer by the Commodity Contract Counterparties under the
terms of the Commodity Contracts.
London
Stock
Exchange
Borsa
Italiana
Deutsche
Börse
IFRS 13 requires the Company to identify the principal market for the Currency-Hedged Commodity Securities and to utilise the available price within
that principal market. The directors consider the stock exchanges where the Currency-Hedged Commodity Securities are listed to be the principal market
and as a result the fair value of the Currency-Hedged Commodity Securities is the on-exchange price as quoted on the stock exchange demonstrating
active trading with the highest trading volume on each day that the price is obtained. As a result of the difference in valuation between Commodity
Contracts and Currency-Hedged Commodity Securities, there is a mis-match between the values recognised, and the results of the Company reflect a gain
or loss on the difference between the NAV of the Commodity Contracts and the price of Currency-Hedged Commodity Securities.
classic and longer dated GBP-Hedged Commodity Securities have a management fee rate of 0.49% per annum;
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WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
2025 2024
USD USD
Creation and Redemption Fees
440,877 165,215
Management Fees and Licence Allowance
1,427,852 1,261,743
Total Fee Income
1,868,729 1,426,958
Non-GAAP Performance Measures
Recent Developments
Bryan Governey
Vinod Rajput (Appointed on 21 January 2025)
Elizabeth Casely (Appointed on 02 July 2025)
Timothy Darcy (Appointed on 07 August 2025)
Olivia Vuillemin (Appointed on 21 January 2025 and resigned on 02 July 2025)
Christopher Foulds (Resigned on 21 January 2025)
Steven Ross (Resigned on 21 January 2025)
Peter Ziemba (Resigned on 07 August 2025)
Future Developments
Dividends
Going Concern
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The nature of the Company’s business dictates that the outstanding Currency-Hedged Commodity Securities may be redeemed at any time by Authorised
Participants and in certain circumstances by individual holders and also, in certain circumstances, may be compulsorily redeemed by the Company. As
the redemption of Currency-Hedged Commodity Securities will always coincide with the cancellation of an equal amount of Commodity Contracts,
liquidity risk is mitigated such that there is no material residual risk. All other expenses of the Company are met by ManJer.
The directors closely monitor the financial position and performance of ManJer, its assets under management, and therefore its related revenue streams, in
respect of fulfilling the obligations under the services agreement.
During the year, the Company generated income from creation and redemption fees, management fees and licence allowance as follows:
Under the terms of the service agreement with ManJer, the Company accrued expenses equal to the management fees, licence allowance and creation and
redemptions fees, which, after taking into account other operating income and expenses, resulted in a result before fair value movements for the year of
USD Nil (2024: USD Nil).
There were no dividends declared or paid during the year (2024: USD Nil). It is the Company’s policy that dividends will only be declared when the
directors are of the opinion that there are sufficient distributable reserves.
The Currency-Hedged Commodity Securities are not redeemable at fair value but at their contractual value, hence the difference in the valuation of
Commodity Contracts (held to support the Currency-Hedged Commodity Securities) and Currency-Hedged Commodity Securities would be reversed on
a subsequent redemption of the Currency-Hedged Commodity Securities and cancellation of the corresponding Commodity Contracts (as described
further in note 6), the Company presents an adjusted Statement of Profit or Loss and Other Comprehensive Income and an adjusted Statement of Changes
in Equity in note 14 to the financial statements.
Board members are not aware of any developments that might have a significant effect on the operations of the Company in subsequent financial periods
not already disclosed in this report or attached financial statements.
As of 21 January 2025, the administration and company secretarial services provided to ManJer changed from R&H Fund Services (Jersey) Limited
("R&H" or the "Administrator") to Apex Financial Services (Alternative Funds) Limited and Apex Financial Services (Secretaries) Limited respectively,
resulting in a change of ManJer's registered office and directors. At reporting date, the directors of ManJer are as follows:
WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Going Concern (continued)
Corporate Social Responsibility
Directors’ Remuneration
Sustainability and corporate responsibility are embedded throughout the business of the WisdomTree group as the board believe this benefits
shareholders, employees of the WisdomTree group, investors in WisdomTree’s products as well as the wider society.
(https://www.wisdomtree.eu/en-gb/wisdomtree-corporate-responsibility).
The Board acknowledges that climate change and its impact on the global economy is of increasing interest and focus for stakeholders and that, where
relevant, stakeholders will seek information from companies regarding how climate change is expected to impact the operations of the business and how
climate change risk has been considered in the context of reported results.
In acknowledging the above, the Board has considered the Company’s exposure to climate change and determined that due to the nature of the Company
and its operations there are no directly observed impacts of climate change on the business. As a result, the Board concluded that there is no basis on
which to provide extended information of analysis relating to climate change, including as part of the basis of accounting or individual accounting
policies adopted by the Company.
In the above determination, the Board has concluded specifically that climate change, including physical and transition risks, does not have a material
impact on the recognition and separate measurement considerations of the assets and liabilities in these financial statements as at 31 December 2025.
This conclusion is based on the fact that assets are reported at fair value under IFRS, are short dated and as set out in note 11 (g) to the financial
statements are categorised as Level 2 of the fair value hierarchy due to the use of observable, verifiable inputs, including use of third party information
sources within the agreed pricing formulae (set out in the Prospectus). The liabilities are valued utilising listed market prices at the year end. These
observable inputs and market prices will reflect wider market sentiment, which inherently includes market perspectives relating to the impact of climate
change.
The Board recognises that government and societal responses to climate change risks are developing and the future impact cannot be predicted. Future
valuations of assets and liabilities may therefore differ as the market responds to these changing impacts or assesses the impact of current requirements
differently.
No director has a service contract with the Company. The directors of the Company who are employees within the WisdomTree, Inc. group do not
receive separate remuneration in their capacity as directors of the Company. The directors of the Company who are employees of Apex Financial
Services (Securities) Limited (“Apex” or the “Administrator”) and previously R&H Fund Services (Jersey) Limited do not receive separate remuneration
in their capacity as directors of the Company; however Apex receives a fee from ManJer which includes services in respect of the Company, including
for the provision of directors who are employees of Apex.
Environmental, Social and Governance (“ESG”) investing is guided at the WisdomTree group level by an ESG Steering Committee, which includes
senior leaders from across the WisdomTree group business, and which included several sub-committees focused on particular ESG considerations, such
as improving data and transparency into the ESG attributes of WisdomTree’s products. Particular ESG considerations relevant to the Company’s
products are overseen by the directors, leveraging the work undertaken by the ESG Steering Committee. More information on WisdomTree’s corporate
social responsibility strategy can be found on the WisdomTree group website
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As Commodity Contracts are held to support Currency-Hedged Commodity Securities, any deficit or surplus reported on unrealised positions would be
reversed on a subsequent redemption of the Currency-Hedged Commodity Securities and the related cancellation of Commodity Contracts. A reported
deficit is not considered indicative of any issues relating to solvency of the Company and the directors are satisfied that any obligations arising in respect
of the Currency-Hedged Commodity can be managed in accordance with the terms of the applicable Prospectus.
The directors continue to monitor price changes impacting the Commodity Contracts. Market volatility increased at the beginning of 2026 due to the
impact of geopolitical developments, including the recent significant escalation of conflict in the Middle East since February 2026, which has heightened
regional instability and continues to create rapidly evolving geopolitical and economic conditions including the increased volatility in global commodity
markets particularly oil prices. These developments may influence market sentiment and global economic activity, and the directors remain alert to any
potential implications for the Company’s operations and on the assets under management of the Company and will take any potential actions needed or
as required under the terms of the prospectus, as facts and circumstances are subject to change and may be specific to investments and jurisdictions.
The directors consider the operations of the Company to be ongoing, with a reasonable expectation that the Company has adequate resources to continue
in operational existence until 30 April 2027(being the period of assessment), and accordingly these financial statements have been prepared on the going
concern basis.
WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Employees
Auditor
Principal Risks and Uncertainties
Movement in
Securities NAV USD Securities NAV USD NAV
2,460,567 6.94 17,084,446 572,767 7.26 4,159,373
(4.36%)
881,550 3.63 3,202,244 782,750 3.79 2,964,937
(4.16%)
887,395
11.87
10,531,223 463,695 9.27 4,297,264
28.02%
230,786 6.74 1,556,439 230,686 6.30 1,453,295
7.05%
209,312 7.42 1,552,108 194,812 5.85 1,139,432
26.76%
There is an inherent risk from the point of view of investors as the values of commodities, and thus the value of the Currency-Hedged Commodity
Securities, may vary widely due to, amongst other things, changing supply and demand for a particular commodity, government and monetary policy or
intervention, interest rate levels and global or regional political, economic or financial events. The market price of Currency-Hedged Commodity
Securities is (and will remain) a function of supply and demand amongst investors wishing to buy and sell Currency-Hedged Commodity Securities and
the bid or offer spread that the market makers are willing to quote.
2025
2024
WisdomTree GBP Daily
Hedged Brent Crude Oil
Movements in the value of the underlying hedged commodity index, and thus the value of the Currency- Hedged Commodity Securities, may vary widely
which could have an impact on the demand for the Currency- Hedged Commodity Securities issued by the Company. These movements are shown in
notes 6 and 7 to the financial statements.
WisdomTree GBP Daily
Hedged WTI Crude Oil
WisdomTree GBP Daily
Hedged Industrial Metals
WisdomTree EUR Daily
Hedged Agriculture
The Currency-Hedged Commodity Securities provide investors with exposure to the performance of the relevant commodity index. Each Currency-
Hedged Commodity Security is a debt instrument whose redemption price is linked to the performance of the underlying commodity index. Each class of
Currency-Hedged Commodity Security is issued under limited recourse arrangements whereby the holders have recourse only to the relevant Commodity
Contracts held to support the Currency-Hedged Commodity Securities and not to the Commodity Contracts of any other class of Currency-Hedged
Commodity Security or the Company.
Any price movements in the value of the Commodity Contracts are wholly attributable to the holders of the Currency-Hedged Commodity Securities,
therefore the Company has no residual exposure to movements in the value of the Commodity Contracts. From a commercial perspective the Company
does not retain any net gains or losses or net risk exposures, as (with the exception of the impact of management fees and license allowance) the gains or
losses attributable to the Commodity Contracts are matched economically by corresponding the losses or gains on the liability (see detail on page 3
regarding the accounting mis-match).
WisdomTree EUR Daily
Hedged All Commodities
Furthermore, the Company has an obligation to remunerate ManJer with the ManJer Fee, which results in the Company recognising a result before fair
value movements of nil at each year. As a result, the principal risks and uncertainties to which the Company is exposed has not materially changed
during the year ended 31 December 2025.
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The contractual value (at NAV) of the Commodity Securities at year end, and the movement over the year are as follows:
The Independent Auditor is Ernst & Young LLP. A resolution to re-appoint Ernst & Young LLP will be proposed at the next Board meeting
of the directors on behalf of the sole shareholder.
The Company does not have any employees. It is the Company’s policy to use the services of specialist subcontractors or consultants
as far as possible.
WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Principal Risks and Uncertainties (Continued)
Movement in
Securities NAV USD Securities NAV USD NAV
1,886,385 8.23 15,530,998 1,717,685 6.28 10,788,787
31.10%
5,160,130 5.36 27,645,087
3,437,230
5.41 18,581,474
(0.97%)
222,196 9.19 2,041,250 212,596 6.54 1,390,909
40.47%
10,995,915 10.65 117,086,138 5,139,515 7.05 36,217,610
51.04%
306,871 3.56 1,090,997 286,871 3.60 1,032,507
(1.24%)
45,045 8.69 391,361 40,545 8.83 358,064
(1.61%)
12,228,685 2.78 33,945,239
10,930,085
2.74 29,908,584
1.31%
1,763,945
17.26
30,452,014 1,846,645 9.75 17,996,686
77.06%
1,591,432 10.49 16,699,363 1,694,932 7.92 13,415,805
32.49%
28,455,816
0.26 7,426,854
26,307,516
0.31 8,220,160
(15.81%)
276,424 6.85 1,894,678 140,924 5.84 823,662
17.37%
228,465
16.35
3,735,638 116,465 8.32 969,464
96.53%
7,261,767 13.10 95,131,445 5,792,816 5.03 29,155,446
160.44%
49,650
10.00
496,738 26,150 8.72 228,015
14.73%
104,123 3.81 396,260 73,523 4.17 306,926
(8.74%)
2,529,508 2.07 5,228,288 1,752,708 2.28 3,988,923
(9.35%)
13,938
14.13
196,875 37,438 11.83 442,807
19.40%
WisdomTree EUR Daily
Hedged Wheat
WisdomTree EUR Daily
Hedged Zinc
www.wisdomtree.eu
WisdomTree EUR Daily
Hedged Soybeans
WisdomTree EUR Daily
Hedged Sugar
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2025
2024
WisdomTree EUR Daily
Hedged Corn
WisdomTree EUR Daily
Hedged Cotton
WisdomTree EUR Daily
Hedged WTI Crude Oil
WisdomTree EUR Daily
Hedged Gold
WisdomTree EUR Daily
Hedged Industrial Metals
WisdomTree EUR Daily
Hedged Natural Gas
WisdomTree EUR Daily
Hedged Coffee
WisdomTree EUR Daily
Hedged Copper
WisdomTree EUR Daily
Hedged Aluminium
WisdomTree EUR Daily
Hedged Nickel
WisdomTree EUR Daily
Hedged Precious Metals
WisdomTree EUR Daily
Hedged Silver
WisdomTree EUR Daily
Hedged Brent Crude
WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Principal Risks and Uncertainties (Continued)
Movement in
Securities NAV USD Securities NAV USD NAV
372,899 10.17 3,793,632 257,399 8.00 2,060,371
27.17%
128,749 2.83 363,916 91,749 2.87 263,156
(1.51%)
397,473,231 190,163,657
Corporate Governance
Internal Control
WisdomTree EUR Daily
Hedged Forward All
Commodities
WisdomTree EUR Daily
Hedged Energy
There is no standard code of corporate governance in Jersey. The operations, as previously described in the Directors’ Report, are such that the directors
have determined that the Company is not required to apply, and has elected not to voluntarily apply, the UK Corporate Governance Code.
2025
2024
As the Board is small, there is no nomination committee and appointments of new directors are considered by the Board as a whole. The Board does not
consider it appropriate that directors should be appointed for a specific term. Furthermore, the structure of the Board is such that it is considered
unnecessary to identify a senior non- executive director.
The constitution of the Board is disclosed on page 1.The Board meets regularly as required by the operations of the Company, but at least quarterly to
review the overall business of the Company and to consider matters specifically reserved for its review.
During the year, the Company did not have any employees or subsidiaries (2024: none), and there is no intention that this will change. The Company,
being a special purpose company established for the purpose of issuing Currency- Hedged Commodity Securities, has not undertaken any business, save
for issuing and redeeming Currency- Hedged Commodity Securities, entering into the required documents, performing the obligations and exercising its
rights in relation thereto, since its incorporation. The Company does not intend to undertake any business other than issuing and redeeming Currency-
Hedged Commodity Securities and performing the obligations and exercising its rights in relation thereto.
The Board, having reviewed the effectiveness of the internal control systems of the Manager and the Administrator, does not consider that there is a need
for the Company to establish its own internal audit function.
In addition, whilst the table above also reflects the NAV at 31 December 2025 and 31 December 2024, together with the movement, this does not reflect
the recommended holding period for Currency-Hedged Commodity Securities, which in some cases is one day. Further information on the contractual
value (at NAV) of the Currency-Hedged Commodity Securities on a daily basis can be found on the WisdomTree website
(https://www.wisdomtree.eu/en-gb/products).
The Company is dependent upon ManJer for the provision of management and administration services to it. ManJer is licensed under the Financial
Services (Jersey) Law 1998 to conduct classes U and Z of Fund Services Business. ManJer outsources the administration services in respect of the
Company to the Administrator. Documented contractual arrangements are in place with the Administrator which define the areas where the authority is
delegated to them. The performance of the Manager and Administrator are reviewed on an ongoing basis by the Board through their review of periodic
reports.
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ManJer provides management and other services to both the Company and other companies issuing exchange-traded products.
Additional information on other financial and operational risks and uncertainties faced by the Company, including further details surrounding the value
of Currency-Hedged Commodity Securities and the Commodity Contracts are disclosed in note 11 to these financial statements.
WisdomTree Hedged Commodity Securities Limited
Directors’ Report (Continued)
Audit Committee
Vinod Rajput
Director
Jersey
Date:
24 April 2026
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The Board has not established a separate audit committee; instead the Board meets to consider the financial reporting of the Company, the internal
controls, and relations with the external auditor. In addition, the Board reviews the independence and objectivity of the auditor.
WisdomTree Hedged Commodity Securities Limited
Statement of Directors' Responsibilities
•
•
•
•
•
•
•
By order of the Board
Vinod Rajput
Director
Jersey
Date:
24 April 2026
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
With regard to Directive 2004/109/EC, amended by Directive 2013/50/EU (collectively the Transparency Directive), the Central Bank (Investment
Market Conduct) Rules of the Central Bank of Ireland and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the
directors confirm that to the best of their knowledge that:
the financial statements for the year ended 31 December 2025 give a true and fair view of the assets, liabilities, financial position and profit or
loss of the Company as required by law and in accordance with IFRS as issued by the IASB; and
the Directors’ Report gives a fair view of the development and performance of the Company’s business, including financial position and the
important events that have occurred during the year, and their impact on these financial statements, together with a description of the principal
risks and uncertainties they face.
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select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but
to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose
with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the
Companies (Jersey) Law 1991. They are responsible for such internal control as they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The directors are responsible for preparing the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial
statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”) and applicable law.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:
11
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
Opinion
We have audited the financial statements of WisdomTree Hedged Commodity Securities Limited (the
“company”) for the year ended 31 December 2025 which comprise the Statement of Profit or Loss and
Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity,
the Statement of Cash Flows and the related notes 1 to 14, including material accounting policy
information. The financial reporting framework that has been applied in their preparation is applicable
law and International Financial Reporting Standards as issued by the International Accounting
Standards Board (“IFRS”).
In our opinion, the financial statements:
► give a true and fair view of the state of the company’s affairs as at 31 December 2025 and of its
loss for the year then ended;
► have been properly prepared in accordance with IFRS;
► have been properly prepared in accordance with the requirements of the Companies (Jersey) Law
1991.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent of the
company in accordance with the ethical requirements that are relevant to our audit of the financial
statements, including the UK FRC’s Ethical Standard as applied to listed entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the
directors’ assessment of the company’s ability to continue to adopt the going concern basis of
accounting included:
► We obtained an understanding of management’s rationale for using the going concern basis of
accounting and confirmed our understanding of management’s Going Concern assessment
process including the process they adopted to capture all key factors in their assessment;
► We obtained management’s board approved going concern assessment covering the period of
assessment from the date of signing to 30 April 2027. Management’s assessment has focussed
on a combination of;
o Assessing the ongoing viability of the company through continued involvement of its
Commodity Contract Counterparties and Authorised Participants;
o Assessing the ongoing ability of WisdomTree Management Jersey Limited (“ManJer”)
to continue to meet its obligations as manager and pay all expenses of the company.
This includes consideration of the assets under management of all managed issuer
entities (“Issuer Platform”) which includes this company. In assessing this ability
management considered the fixed and variable operating costs that could be supported
under varying levels of total assets under management for the Issuer Platform.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
12
► Using our understanding of the business, we evaluated whether the considerations and method
adopted by management in assessing going concern was appropriate.
► We performed reverse stress testing on the forecasts to understand how severe the downside
scenarios would have to be, and the reduction in platform assets under management, to result
in the platform generating insufficient management fees to cover operating costs. We observed
significant headroom in management fee income, at current Assets Under Management
(“AUM”) levels, in excess of fixed and AUM based costs which supports management’s
assumption that the Issuer Platform is able to absorb heightened levels of volatility in AUM.
► We considered whether management’s disclosures, in the Annual Report and financial
statements, sufficiently and appropriately discloses information required in respect of the going
concern assumption applied through consideration of relevant disclosure standards.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the company’s ability
to continue as a going concern for a period to 30 April 2027.
Our responsibilities and the responsibilities of the directors with respect to going concern are described
in the relevant sections of this report. However, because not all future events or conditions can be
predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern.
Overview of our audit approach
Key audit
matters
► Valuation of Financial Assets at fair value through profit and loss – Commodity
Contracts
► Valuation of Financial Liabilities at fair value through profit and loss – Currency-
Hedged Commodity Securities
Materiality
► Overall materiality of US$4.05m which represents 1% of total assets.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality
determine our audit scope for the company. This enables us to form an opinion on the financial
statements. We take into account size, risk profile, the organisation of the company and effectiveness
of controls, changes in the business environment and the potential impact of climate change when
assessing the level of work to be performed. All audit work was performed directly by the audit
engagement team.
Changes from the prior year
There were no scoping changes compared to the prior year.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
13
Climate change
There has been increasing interest from stakeholders as to how climate change will impact companies.
The company has determined that there are no directly observed impacts of climate change on the
business due to the nature of the company and its operations. This is explained on page 5 in the
corporate social responsibility section, which form part of the “Other information,” rather than the audited
financial statements. Our procedures on these disclosures therefore consisted solely of considering
whether they are materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appear to be materially misstated.
Our audit effort in considering climate change was focused on evaluating management’s assessment of
the impact of climate risk, physical and transition, the adequacy of the company’s disclosures in the
financial statements as set out in note 2 and conclusion that there was no further impact of climate
change to be taken into account as the material assets and liabilities are valued based on market pricing
as required by IFRS.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed risks
of material misstatement (whether or not due to fraud) that we identified. These matters included those
which had the greatest effect on the overall audit strategy, the allocation of resources in the audit; and
directing the efforts of the engagement team. These matters were addressed in the context of our audit
of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate
opinion on these matters.
Risk
Our response to the risk
Key observations
communicated to the Board
Valuation of Financial Assets
at fair value through profit and
loss
–
Commodity Contracts
2025:
USD
397,473,231
(2024: USD
190,163,656)
Refer to the Accounting policies
(pages
25-26); and Note
6
of the
Financial Statements (pages
28-29)
Risk that
Commodity Contracts
values are misstated or that
valuations are incorrectly
calculated, including as a result of
management override of internal
controls.
The Commodity Contracts held
comprise a range of commodity
derivatives that are used by the
company to provide holders of
issued securities with exposure
that is designed to track the
price of commodity futures.
Our response to the risk
comprised:
We walked through the
company’s systems, controls
and process implemented in
respect of the valuation of
Commodity Contracts.
We assessed the design of the
company’s systems and controls
implemented in respect of
Commodity Contract valuation.
In executing our strategy, we
adopted a fully substantive
approach.
We obtained independent
confirmation, from the contract
counterparty, of the contractual
value of contracts as at the
reporting date.
We agreed the valuation
methodology applied to the
definition set out in the
There were no matters identified
during our audit work on
valuation of Commodity
Contracts that we brought to the
attention of the Board of
Directors of the company.
Based on our testing we are
satisfied that the valuation of the
Commodity Contracts is not
materially misstated.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
14
Risk
Our response to the risk
Key observations
communicated to the Board
The Commodity Contracts are
carried at fair value as a
Financial Asset.
The risk comprises the risk of
errors in both the valuation
methodology applied (including
the risk that the valuation
methodology has not been
determined in accordance with
the terms of the applicable
prospectus) and in the source
and timing of valuation inputs
utilised.
The balance of Commodity
Contracts represents 98% of the
company’s total assets as at 31
December 2025 (2024: 99%)
and therefore any error in
valuation approach could be
significant.
The risk has remained
consistent with that observed in
the prior year.
prospectus and validation of key
inputs used to derive the value
of the Commodity Contracts.
This included agreement on a
sample basis of the price of the
referenced commodities or
commodities indices to external
pricing sources as at 31
December 2025 against
relevant IFRS requirements.
We recalculated the value of a
sample of Commodity Contracts
held at 31 December 2025,
representing 100% of the total
value of Commodity Contracts
held.
Specifically, in addressing the
risks of management override of
controls, we assessed the
Commodity Contracts valuation
for evidence of management
bias, considered whether any
significant unusual transactions
arose based on our
understanding of the Company
and its activities and tested the
appropriateness of journal
entries recorded in the general
ledger and other adjustments
made in the preparation of the
financial statements.
Valuation of Financial
Liabilities at fair value through
profit or loss
–
Currency-Hedged
Commodity
Securities
2025: USD 409,081,734
(2024: USD
192,137,223)
Refer to the Accounting policies
(pages
25-26); and Note
7
of the
Financial Statements (pages
29-30)
Risk that values of securities in
issue are misstated or that
valuations are incorrectly
captured.
The Commodity
Securities in
issue comprise a range of
financial instruments that provide
holders of issued securities with
exposure to movements in
Our response to the risk
comprised:
We walked through the
company’s systems, controls
and process implemented in
respect of the valuation of
Commodity Securities.
We assessed the design of the
company’s systems and controls
implemented in respect of
Commodity Securities valuation.
In executing our strategy, we
adopted a fully substantive
approach.
We assessed the
appropriateness of the valuation
methodology applied,
comprising the use of traded
security prices to value the
There were no matters identified
during our audit work on
valuation of Commodity
Securities that we brought to the
attention of the Board of
Directors of the company.
Based on our testing we are
satisfied that the valuation of
Commodity Securities is not
materially misstated.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
15
Risk
Our response to the risk
Key observations
communicated to the Board
prices of associated
commodities without needing to
take physical delivery.
The Commodity Securities are
carried at fair value as a
Financial Liability.
The risk comprises the risk of
errors in both the valuation
methodology applied and, in the
source, and timing of valuation
inputs utilised.
The balance of Commodity
Securities represents 98% of the
company’s total liabilities as at
31 December 2025 (2024: 99%)
and therefore any error in
valuation approach could be
significant.
The risk has remained
consistent with that observed in
the prior year.
Commodity Securities, against
relevant IFRS requirements.
We independently obtained
security prices using external
pricing sources at the balance
sheet date.
We recalculated the value of
Commodity Securities held at
31 December 2025, by
multiplying the security price by
the confirmed security balance
in issue. This represented 100%
of the total value of Commodity
Securities in issue.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of
identified misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably
be expected to influence the economic decisions of the users of the financial statements. Materiality
provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the company to be US$4.05 million (2024: US$1.9 million), which is 1%
(2024: 1%) of Total Assets. We believe that Total Assets provides us with an appropriate basis for audit
materiality as Total Assets reflects the relevant exposure of holders of issued securities to the underlying
asset base.
There has been no change in the basis of materiality used compared to the prior year.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce
to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the company’s overall control
environment, our judgement was that performance materiality was 50% (2024: 50%) of our planning
materiality, namely US$2.03m (2024: US$0.95m). We have set performance materiality in both periods
at this percentage in response to the value of errors identified and corrected in the financial statement
close process.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
16
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Board that we would report to them all uncorrected audit differences in excess of
US$0.20m (2024: US$0.095m), which is set at 5% of materiality, as well as differences below that
threshold that, in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality
discussed above and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report set out on pages 1 to
10, other than the financial statements and our auditor’s report thereon. The directors are responsible
for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of the other information, we are required
to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies (Jersey)
Law 1991 requires us to report to you if, in our opinion:
► proper accounting records have not been kept by the company, or proper returns adequate for our
audit have not been received from branches not visited by us; or
► the financial statements are not in agreement with the company’s accounting records and returns;
or
► we have not received all the information and explanations we require for our audit
Responsibilities of directors
As explained more fully in the Statement of Directors’ Responsibilities set out on page 10, the directors
are responsible for the preparation of the financial statements and for being satisfied that they give a
true and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the company or to
cease operations, or have no realistic alternative but to do so.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
17
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The
risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the company and management.
► We obtained an understanding of the legal and regulatory frameworks that are applicable to the
company and determined that the most significant are those that relate to the reporting
framework, comprising IFRS and the Companies (Jersey) Law 1991. In addition, we concluded
that there are certain significant laws and regulations that may have an effect on the
presentation and disclosure of the financial statements being the applicable Listing Rules of the
Central Bank of Ireland (Investment Market Conduct) and UK Listing Authority Rules;
► We understood how WisdomTree Hedged Commodity Securities Limited is complying with
those frameworks by making enquiries of the directors and key management of the
administrative service provider. We corroborated our enquiries through our review of minutes of
Board meetings, papers provided to the board and correspondence received from regulatory
bodies and noted no contradictory evidence;
► We assessed the susceptibility of the company’s financial statements to material misstatement,
including how fraud might occur by understanding the investment objectives of the Company
and discussing with management to understand where reporting was considered susceptible to
fraud. Where this risk was considered to be higher, we performed audit procedures in response
to the identified fraud risk. These procedures included testing of transactions to supporting
documentation, testing of specific accounting journal entries, and focused testing, including that
referred to in the key audit matters section above. These procedures were designed to provide
reasonable assurance that the financial statements were free from fraud or error;
► Based on this understanding we designed our audit procedures to identify non-compliance with
such laws and regulations. Our procedures involved reading board minutes to identify any non-
compliance with laws and regulations, a review of any associated reporting submitted to the
board on compliance with laws and regulations and enquiries of members of management of
the appointed administrative service provider;
As the Company operates in the asset management industry the Audit Partner assessed the experience
of the engagement team and concluded that the team had the appropriate competence and capabilities.
A further description of our responsibilities for the audit of the financial statements is located on the
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED COMMODITY SECURITIES LIMITED
(continued)
18
Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Other matters we are required to address
► Following the recommendation from those charged with governance, we were appointed by the
company on 3 December 2019 to audit the financial statements for the year ending 31 December
2019 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and reappointments is
7 years, covering the years ending 31 December 2019 to 31 December 2025.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the company
and we remain independent of the company in conducting the audit. The audit opinion is
consistent with the additional report to those charged with governance.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Article 113A of the
Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them in an auditor’s 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 company and the company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Ove Toennes Svejstrup
for and on behalf of Ernst & Young LLP
Jersey, Channel Islands
Date: 24 April 2026
WisdomTree Hedged Commodity Securities Limited
Statement of Profit or Loss and Other Comprehensive Income
For the financial year ended 31 December 2025
2025 2024
Notes USD USD
Income 3 1,868,729 1,426,958
Expenses 3 (1,868,729) (1,426,958)
Result Before Fair Value Movements
3
- -
Change in Contractual and Fair Value of Commodity Contracts 6 125,239,334 (1,465,565)
Change in Fair Value of Currency-Hedged Commodity Securities 7 (134,874,270) 249,795
Loss for the Year
1,
2
(9,634,936) (1,215,770)
All items dealt with in arriving at the loss for the financial year are from continuing operations.
The notes on pages 23 to 38 form part of these financial statements
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www.wisdomtree.eu
Year ended
31 December
Year ended
31 December
1
A non-statutory and non-GAAP Statement of Profit or Loss and Other Comprehensive Income reflecting adjustments representing the movement in the difference
between the value of the Commodity Contracts and the price of Currency- Hedged Commodity Securities is set out in note 14 to the financial statements.
2
There are no items of Other Comprehensive Income, the Loss for the Year also represented the Total Comprehensive Expense for the Year.
WisdomTree Hedged Commodity Securities Limited
Statement of Financial Position
As at 31 December 2025
2025 2024
Notes USD USD
Assets
Commodity Contracts 6 397,473,231 190,163,656
6 6,321,255 482,374
7 678,388 8,300
Trade and Other Receivables 5 275,568 115,428
Total Assets 404,748,442 190,769,758
Liabilities
Currency-Hedged Commodity Securities 7 409,081,734 192,137,223
6 678,388 8,300
Trade and Other Payables 8 275,565 115,425
Total Liabilities 416,356,942 192,743,322
Equity
Stated Capital 9 3 3
Revaluation Reserve 14 (11,608,503) (1,973,567)
Total Equity (11,608,500) (1,973,564)
Total Equity and Liabilities 404,748,442 190,769,758
Vinod Rajput
Director
The assets and liabilities in the above Statement of Financial Position are presented in order of liquidity from most to least liquid.
The financial statements on pages 19 to 38 were approved and authorised for issue by the Board of Directors and signed on its behalf on
24
April 2026
The notes on pages 23 to 38 form part of these financial statements
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Amounts Receivable on Currency Hedged
Commodity Securities Awaiting Settlement
Amounts Payable on Currency Hedged Commodity
Securities Awaiting Settlement
7
6,321,255
482,374
Amounts Payable on Commodity Contracts Awaiting
Settlement
As at
31 December
As at
31 December
Amounts Receivable on Commodity Contracts
Awaiting Settlement
WisdomTree Hedged Commodity Securities Limited
Statement of Changes in Equity
For the financial year ended 31 December 2025
Stated Retained Revaluation Total
Capital Earnings Reserve Equity
Note USD USD USD USD
Balance at 1 January 2024
3 - (757,797) (757,794)
- (1,215,770) - (1,215,770)
Transfer to Revaluation Reserve 14 - 1,215,770 (1,215,770) -
Balance at 31 December 2024
3
3 - (1,973,567) (1,973,564)
Balance at 1 January 2025
3 - (1,973,567) (1,973,564)
- (9,634,936) - (9,634,936)
Transfer to Revaluation Reserve 14 - 9,634,936 (9,634,936) -
Balance at 31 December 2025
3
3 - (11,608,503) (11,608,500)
The notes on pages 23 to 38 form part of these financial statements
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www.wisdomtree.eu
Loss and Total Comprehensive Expense for the Year
Loss and Total Comprehensive Expense for the Year
3
A non-statutory and non-GAAP Statement of Changes in Equity reflecting adjustments representing the difference between the value of Commodity
Contracts and the price of Currency- Hedged Commodity Securities is set out in note 14 to the financial statements.
WisdomTree Hedged Commodity Securities Limited
Statement of Cash Flows
For the financial year ended 31 December 2025
2025 2024
Notes USD USD
Loss for the Year (9,634,936) (1,215,770)
Non-cash Reconciling Items
6 (125,239,334) 1,465,565
7 134,874,270 (249,795)
Cash Generated from Operating Activities
- -
Net Movement in Cash and Cash Equivalents
- -
Cash and Cash Equivalents at the Beginning of the Year
- -
Cash and Cash Equivalents at the End of the Year - -
Change in Contractual and Fair Value of Commodity
Contracts
Change in Fair Value of Currency-Hedged
Commodity Securities
Currency-Hedged Commodity Securities are issued through a direct transfer of cash from the Authorised Participants to the Commodity Contract
Counterparties or redeemed by the direct transfer of cash by the Commodity Contract Counterparties to the Authorised Participants. As such the
Company is not a party to any cash transactions. The creations and redemptions of Currency-Hedged Commodity Securities and creations and
cancellations of Commodity Contracts, which are non-cash transactions for the Company, are disclosed in notes 6 and 7 to the financial statements in the
reconciliation of opening to closing Currency-Hedged Commodity Securities and Commodity Contracts.
Under the terms of the service agreement with ManJer' as written on page 4, the management fee and licence allowance are transferred directly to ManJer
by the Commodity Contract Counterparties under the terms of the Commodity Contracts. The creation and redemption fees are included and settled
between the Authorised Participants and the Commodity Contract Counterparties as part of each creation or redemption, being transferred directly to
ManJer by the Commodity Contract Counterparties on a monthly basis. Accordingly, there are no cash flows through the Company. These fees are
disclosed in note 3 to the financial statements.
The notes on pages 23 to 38 form part of these financial statements
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Year ended
31 December
Year ended
31 December
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements
For the financial year ended 31 December 2025
1. General Information
(1)
(2)
As a result of the service agreement with ManJer, the Company recognises a result before fair value movements of nil for each period.
WisdomTree Hedged Commodity Securities Limited (the “Company”) is a company incorporated and domiciled in Jersey. The address of the registered
office is
IFC 5
St. Helier
Jersey, JE1 1ST
The Company’s principal activity is the issue and listing of currency-hedged commodity securities (“Currency-Hedged Commodity Securities”).
Currency-Hedged Commodity Securities are undated secured limited recourse financial instruments designed to track the price of individual commodity
futures contracts or baskets of commodity futures contracts for which the effects of foreign exchange risks are hedged, and give investors an exposure
similar to that which could be achieved by managing a long fully cash collateralised unleveraged position in futures contracts of specific maturities, less
applicable fees. However, unlike managing a futures position, Currency-Hedged Commodity Securities involve no need to roll from one futures contract
to another, no margin calls, and no other brokerage or other costs in holding or rolling futures contracts (although security holders incur other costs in
holding Currency-Hedged Commodity Securities). No trading or management of futures contracts is required by the Company. Currency-Hedged
Commodity Securities allow investors to buy and sell their interest through the trading of a security on the London Stock Exchange and any other
exchange to which that security may be admitted to trading from time to time.
Currency-Hedged Commodity Securities are backed by commodity contracts (“Commodity Contracts”) with terms corresponding to the terms of
Currency-Hedged Commodity Securities. Each class of Currency-Hedged Commodity Security is issued under limited recourse arrangements whereby
the holders have recourse only to the relevant Commodity Contract held to support the Currency-Hedged Commodity Securities and not to the
Commodity Contracts of any other class of Currency-Hedged Commodity Securities or to the Company. The Company does not make gains from trading
in the underlying Commodity Contracts. As a result (and with the exception of the impact of management fees and licence allowance), from a
commercial perspective gains and losses in respect of Commodity Contracts will always be offset by a corresponding loss or gain on the Currency-
Hedged Commodity Securities and therefore commercially the Company does not retain any net gains or losses or net risk exposures. However, the
difference in valuation between Commodity Contracts and Currency-Hedged Commodity Securities creates a mis-match between values reported within
these financial statements. This difference in valuation would be reversed on a subsequent redemption of the Currency- Hedged Commodity Securities
and cancellation of the corresponding Commodity Contracts. Further details are disclosed within the Accounting Policies and in note 14 to the financial
statements, with additional information regarding the risks of the Company disclosed in note 11 to the financial statements. Furthermore, the Company
presents an adjusted Statement of Profit or Loss and Other Comprehensive Income and an adjusted Statement of Changes in Equity in note 14 to the
financial statements to reflect the economic results of the Company through the reversal of the difference in valuation between Commodity Contracts and
Currency-Hedged Commodity Securities given the gain or loss would be reversed on a subsequent redemption of the Currency-Hedged Commodity
Securities and cancellation of the corresponding Commodity Contracts, and therefore will not be realised.
Exchange-traded products are not typically actively managed, are significantly lower in cost when compared to actively managed mutual funds and are
easily accessible to investors. No trading or management of futures contracts is required of the Company because the Company has entered into
arrangements to acquire an equivalent asset exposure represented by the Currency-Hedged Commodity Securities from third parties which fully hedges
the exposure of the Company.
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apply creation and redemption fees on the issue and redemption of the Currency-Hedged Commodity Securities.
No creation or redemption fees are payable to the Company when investors trade in the Currency-Hedged Commodity Securities on a listed market such
as the London Stock Exchange.
The Company is entitled to:
a management fee and a licence allowance which are calculated by applying a fixed percentage to the Contractual Value of Currency-Hedged
Commodity Securities in issue on a daily basis (the “Management Fee and Licence Allowance”); and
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
2. Material Accounting Policy Information
Basis of Preparation
Critical Accounting Estimates and Judgements
Significant Judgements
Significant Estimates
Going Concern
The directors do not consider that any significant estimates have been applied in the preparation of these financial statements.
The material accounting policies of the Company are described below.
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The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”), and interpretations issued by the IFRS Interpretations Committee of the IASB. The financial
statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and financial liabilities held
at fair value through profit or loss. The financial statements are presented in the United States Dollars (USD) and all values are rounded to the nearest
USD, except when otherwise indicated.
The Board has concluded specifically that climate change, including physical and transition risks, does not have a material impact on the recognition and
separate measurement considerations of the assets and liabilities in these financial statements as at 31 December 2025.
This conclusion is based on the fact that assets are reported at fair value under IFRS, are short dated, and as set out in note 11 to the financial statements
are categorised as Level 2 of the fair value hierarchy due to the use of observable, verifiable inputs, including use of third party information sources
within the agreed pricing formulae (set out in the Prospectus). The liabilities are valued utilising listed market prices at the year end. These observable
inputs and market prices will reflect wider market sentiment, which inherently includes market perspectives relating to the impact of climate change.
The presentation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Company’s accounting policies. The Company makes estimates and assumptions that affect the
reported amounts of assets and liabilities. Estimates are continually evaluated and based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances.
The nature of the Company’s business dictates that the outstanding Currency-Hedged Commodity Securities may be redeemed at any time by Authorised
Participants and in certain circumstances by individual holders and also, in certain circumstances, may be compulsorily redeemed by the Company. As
the redemption of Currency-Hedged Commodity Securities will always coincide with the cancellation of an equal amount of Commodity Contracts,
liquidity risk is mitigated such that there is no material residual risk. All other expenses of the Company are met by ManJer. The directors closely monitor
the financial position and performance of ManJer, its assets under management, and therefore its related revenue streams, in respect of fulfilling the
obligations under the services agreement.
As Commodity Contracts are held to support Currency-Hedged Commodity Securities, any deficit or surplus reported on unrealised positions would be
reversed on a subsequent redemption of the Currency-Hedged Commodity Securities and the related cancellation of Commodity Contracts. A reported
deficit is not considered indicative of any issues relating to solvency of the Company and the directors are satisfied that any obligations arising in respect
of the Currency-Hedged Commodity can be managed in accordance with the terms of the applicable Prospectus.
The directors continue to monitor price changes impacting the Commodity Contracts. Market volatility increased at the beginning of 2026 due to the
impact of geopolitical developments, including the recent significant escalation of conflict in the Middle East since February 2026, which has heightened
regional instability and continues to create rapidly evolving geopolitical and economic conditions including the increased volatility in global commodity
markets particularly oil prices. These developments may influence market sentiment and global economic activity, and the directors remain alert to any
potential implications for the Company’s operations and on the assets under management of the Company and will take any potential actions needed or
as required under the terms of the prospectus, as facts and circumstances are subject to change and may be specific to investments and jurisdictions.
The directors consider the operations of the Company to be ongoing, with a reasonable expectation that the Company has adequate resources to continue
in operational existence until 30 April 2027(being the period of assessment), and accordingly these financial statements have been prepared on the going
concern basis.
The key accounting judgement required to prepare these financial statements is in respect of the presentation of non-statutory and non-GAAP
adjustments to the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Changes in Equity, as disclosed in note 14 to the
financial statements.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
2. Material Accounting Policy Information (continued)
Accounting Standards
(a)
Standards, amendments and interpretations considered by the Company:
•
Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates: lack of exchangeability
(b)
New and revised IFRSs in issue but not yet effective:
•
•
•
• Annual Improvements to IFRS Accounting Standards - Volume 11 (effective for reporting periods beginning on or after 1 January 2027)
The following are standards and amendments effective for accounting periods beginning on or after 1 January 2025 but which did not have any effect
on the financial statements of the Company:
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There were no other new standards, amendments and interpretations adopted in the current year that resulted in a significant effect on these financial
statements.
IFRS 18 - Presentation and Disclosure in Financial Statements (effective for reporting periods beginning on or after 1 January 2027)
IFRS 19 - Subsidiaries without Public Accountability: Disclosures (effective for reporting periods beginning on or after 1 January 2027)
The
directors
do
not
expect
the
adoption
of
the
above
standards,
amendments
and
interpretations
that
are
in
issue
will
have
a
material
impact
on
the
financial statements of the Company in future periods.
Currency-Hedged Commodity Securities and Commodity Contracts
i) Issue and Redemption
Each
time
a
Currency-Hedged
Commodity
Security
is
issued
or
redeemed
by
the
Company
a
corresponding
number
and
value
of
Commodity
Contracts
are
created
or
cancelled
with
Citigroup
Global
Markets
Limited
(“Citigroup”)
and
Merrill
Lynch
International
(“Merrill
Lynch”)
(collectively
the
“Commodity
Contract
Counterparties”).
The
Commodity
Contracts
represent
the
financial
assets
of
the
Company
and
the
Currency-
Hedged
Commodity
Securities
give
rise
to
the
financial
liabilities.
Upon
initial
recognition,
the
fair
value
is
recorded
using
the
price
calculated
based
on
the
formula
set
out
in
the
Prospectus,
referred
to
as
the
“Contractual
Value”.
The
issue
and
redemption
of
Currency-Hedged
Commodity
Securities
is
recorded
at
a
value
that
corresponds
to
the
value
of
the
Commodity
Contracts
transferred
in
respect
of
the
issue
and
redemption. As
a
result,
the
Company
has
no
net
exposure
to
gains
or
losses
on
the
Currency-Hedged
Commodity
Securities
and
Commodity
Contracts.
Financial assets and liabilities are recognised and de-recognised on the transaction (trade) date.
ii) Classification at fair value through Profit or Loss
Each
Currency-Hedged
Commodity
Security
and
Commodity
Contract
comprises
a
financial
instrument
whose
redemption
or
cancellation
price
is
linked to the performance of the relevant commodity index adjusted by the applicable fees and expenses.
The
Commodity
Contracts
held
are
classified
as
financial
assets
at
fair
value
through
profit
or
loss
under
IFRS
9
and
the
Currency-Hedged
Commodity
Securities
are
classified
as
financial
liabilities
measured
at
fair
value
through
profit
or
loss
under
IFRS
9
due
to
an
embedded
derivative.
This
also
significantly
reduces
a
measurement
or
recognition
inconsistency
that
would
otherwise
arise
from
measuring
assets
or
liabilities
or
recognising the gains and losses on them on different bases.
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial
statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they
become effective.
Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments (effective for reporting
periods beginning on or after 1 January 2026)
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
2. Material Accounting Policy Information (continued)
Currency-Hedged Commodity Securities and Commodity Contracts (continued)
iii)
Pricing
Commodity Contracts and Securities Awaiting Settlement
Other Financial Assets and Liabilities
Reserves
Income and Expenses
The Company has entered into a service agreement with WisdomTree Management Jersey Limited (“ManJer” or the “Manager”), whereby ManJer is
responsible for supplying or procuring the supply of all management and administration services required by the Company, (including marketing) as well
as the payment of costs relating to the listing and issue of Currency-Hedged Commodity Securities
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Consequently, a difference arises between the value of Commodity Contracts (held to support the Currency-Hedged Commodity Securities) and
Currency-Hedged Commodity Securities (at market value) presented in the Statement of Financial Position. This difference is reversed on a
subsequent redemption of the Currency-Hedged Commodity Securities and cancellation of the corresponding Commodity Contracts.
The issue and redemption of Currency-Hedged Commodity Securities, and the creation or cancellation of Commodity Contracts, is accounted for on the
transaction date. The transaction will not settle until two days after the transaction date. Where transactions are awaiting settlement at the year end, the
value of the Commodity Contracts and the Currency-Hedged Commodity Securities due to be settled is separately presented within the relevant assets
and liabilities on the Statement of Financial Position. The fair value of these receivables and payables is considered equivalent to their carrying value.
Other financial assets and liabilities are non-derivative financial assets and liabilities including trade and other receivables and trade and other payables
with a fixed payment amount and are not quoted in an active market. After initial measurement the other financial assets and liabilities are subsequently
measured at amortised cost using the effective interest method less any allowance for expected credit losses (in respect of financial assets only). The
effective interest method is a method of calculating the amortised cost of an instrument and of allocating interest over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash flows (including all fees paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the instrument, or, where appropriate, a shorter period, to the
net carrying amount on initial recognition. Impairment losses, including reversals of impairment losses and impairment gains, are recorded through profit
or loss.
A revaluation reserve and a retained earnings reserve are maintained within equity. All profit or loss is taken to the retained earnings reserve at the end of
the accounting period to which it relates and the gain or loss relating to the mis-match of accounting values is transferred to the revaluation reserve,
which the directors have deemed to be non-distributable, as the balance relates to unrealised gains and losses on Commodity Contracts (held to support
the Currency-Hedged Commodity Securities) and Currency-Hedged Commodity Securities, which will be reversed on a subsequent redemption of the
Currency-Hedged Commodity Securities and the related cancellation of Commodity Contracts and will therefore not be realised.
The Commodity Contracts are priced by reference to certain currency-hedged commodity indices calculated and published by Bloomberg L.P. or
Bloomberg Finance L.P. (together “Bloomberg”) and a multiplier calculated by the Company and agreed with the Commodity Contract
Counterparties. The multiplier takes into account the daily accrual of the Management Fee and Licence Allowance and swap spread as well as the
incremental capital enhancement component of the Currency-Hedged Commodity Security, and is the same across all Currency-Hedged Commodity
Securities of the same type (i.e. all classic Currency-Hedged Commodity Securities use the same multiplier). This price (the Contractual Value) is
calculated based on the formula set out in the Prospectus and is considered to be the fair value of the Commodity Contracts.
IFRS 13 requires the Company to identify the principal market and to utilise the available price within that principal market. The directors consider
the stock exchanges where the Currency-Hedged Commodity Securities are listed to be the principal market and as a result the fair value of the
Currency-Hedged Commodity Securities is the on-exchange price as quoted on the stock exchange demonstrating active trading with the highest
trading volume. The Currency-Hedged Commodity Securities are priced using the latest traded mid-market price on (or before) the reporting date that
is, when the reporting date is not on a date that the market is open.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
2. Material Accounting Policy Information (continued)
Income and Expenses (continued)
i) Management Fees and Licence Allowance
•
Classic and longer dated GBP-Hedged Commodity Securities have a management fee rate of 0.49% per annum;
•
•
all Commodity Securities are subject to the licence allowance of 0.05% per annum.
ii) Creation and Redemption Fees
Foreign Currency
Segmental Reporting
In return for these services, the Company has an obligation to remunerate ManJer with an amount equal to the aggregate of the management fee, licence
allowance and the creation and redemption fees (the “ManJer Fee”). The management fee and licence allowance are transferred directly to ManJer by the
Commodity Contract Counterparties under the terms of the Commodity Contracts.
The Company derives its income over time (in respect of management fees), and at a point in time (in respect of creation and redemption fees) as follows:
A segment is a distinguishable component of the Company that is engaged either in providing products or services (business segment), or in providing
products and services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from
those of other segments. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Company that are
regularly reviewed by the Chief Operating Decision Maker (“CODM”) in order to allocate resources to the segments and to assess their performance. The
CODM has been determined as the Board of Directors.
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Whilst the Company has a number of different Currency-Hedged Commodity Securities in issue, the financial information reviewed by CODM is not
segregated by those different Currency-Hedged Commodity Securities and therefore the board of directors concluded that these components do not meet
the criteria of operating segments. Furthermore marketing of the Currency-Hedged Commodity Securities is undertaken on a centralised basis and the
terms of the Currency-Hedged Commodity Securities of any class rank pari passu in all respects irrespective of stock exchange listing.
As a result, the CODM determined that the Company is operating a single segment or product group, classic and longer dated Currency-Hedged
Commodity Securities, and one geographical segment which is Europe. Therefore the Company discloses its results on an equivalent aggregated form and
does not provide any further segmental information. In addition, the Company has no single major customer from which greater than 10% of income is
generated. All information relevant to the understanding of the Company’s activities is included in these financial statements.
Management Fees and Licence Allowance are calculated by applying a fixed percentage to the Contractual Value of Currency-Hedged Commodity
Securities in issue on a daily basis in accordance with the terms of the securities issued:
classic and longer Dated EUR-Hedged Commodity Securities have a management fee rate of 0.49% per annum; and
The Management Fees and Licence Allowance are accrued and recognised on a daily basis and are invoiced on a monthly basis and settled directly
between ManJer and the Commodity Contract Counterparties.
Fees for the issue and redemption of Commodity Securities are recognised at the fair value of the consideration expected to be received, on the date
on which the transaction becomes legally binding. Creation and redemption fees are included as part of each creation or redemption and settled
between the Authorised Participants and the Commodity Contract Counterparties, and transferred directly to ManJer by the Commodity Contract
Counterparties on a monthly basis.
The financial statements of the Company are presented in the currency in which the majority of Currency-Hedged Commodity Securities issued by the
Company are denominated (its functional currency). For the purpose of the financial statements, the results and financial position of the Company are
expressed in United States Dollars (USD), which is the functional currency of the Company, and the presentation currency of the financial statements.
Transactions in foreign currencies are initially recorded at the spot rate at the date the transaction. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated at rates ruling at that date.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
3. Result Before Fair Value Movements
2025 2024
USD USD
Creation and Redemption Fees
440,877 165,215
Management Fees
1,295,627 1,144,915
License Allowance
132,225 116,828
Total Income 1,868,729 1,426,958
ManJer Fees
(1,868,729) (1,426,958)
Total Operating Expenses (1,868,729) (1,426,958)
Result Before Fair Value Movements
- -
4. Taxation
5. Trade and Other Receivables
2025 2024
USD USD
Management Fee and Licence Allowance 188,535 93,930
Creation and Redemption Fees
87,030 21,495
Receivable from Related Party 3 3
275,568 115,428
6. Commodity Contracts
2025 2024
USD USD
Change in Contractual and Fair Value of Currency-Hedged Commodity Contracts
125,239,334 (1,465,565)
Commodity Contracts at Fair Value
397,473,231 190,163,656
As at
As at
The fair value of these receivables is equal to the carrying value. The Trade and Other Receivables, except the receivable from Related Party, are due to
be recovered within 12 months after the year end.
31 December
31 December
www.wisdomtree.eu
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Year ended
31 December
Year ended
31 December
Audit Fees for the year amounting to GBP 26,910 will be met by ManJer (2024: GBP 33,083).
The Company is subject to Jersey Income Tax. During the year the Jersey Income Tax rate applicable to the Company is zero percent (2024: zero
percent).
Result Before Fair Value Movements for the year comprised:
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
6. Commodity Contracts (continued)
•
The amount receivable on Commodity Contracts awaiting settlement is USD 6,321,255 (2024: USD 482,374).
•
The amount payable on Commodity Contracts awaiting settlement is USD 678,388 (2024: USD 8,300).
2025 2024
USD USD
Opening Commodity Contracts 190,163,656 215,850,633
Additions 426,191,314 178,839,361
Disposals (342,693,221) (201,799,030)
Management Fee and Licence Allowance (1,427,852) (1,261,743)
Change in Fair Value 125,239,334 (1,465,565)
Closing Commodity Contracts 397,473,231 190,163,656
7.
Currency-Hedged Commodity Securities
2025 2024
USD USD
Change in Fair Value of Currency-Hedged Commodity Securities
(134,874,270) 249,795
Currency-Hedged Commodity Securities at Fair Value
409,081,734 192,137,223
The Contractual Values and changes thereof during the year based on the contractual settlement values are:
2025 2024
USD USD
Change in Contractual Value for the Year
(125,239,334) 1,465,565
Currency-Hedged Commodity Securities at Contractual Value
397,473,231 190,163,656
As At
31 December
As At
31 December
As At
31 December
As At
31 December
As At
31 December
As At
31 December
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Whilst the Currency-Hedged Commodity Securities are quoted on the open market, the Company’s ultimate liability relates to its contractual obligations
to issue and redeem Currency-Hedged Commodity Securities at set prices on each trading day. These prices are based on an agreed formula, and are
equal to the published net asset value (“NAV”) of each class of Currency-Hedged Commodity Security. Therefore, the actual contractual issue and
redemption of Currency-Hedged Commodity Securities occur at a price that corresponds to the fair value of the Commodity Contracts. As a result, the
Company has no net exposure to gains or losses on the Currency-Hedged Commodity Securities and Commodity Contracts.
The Company measures the Currency-Hedged Commodity Securities at their fair value in accordance with IFRS 13 rather than at the Contractual Value
(as described in the Prospectus). The fair value is the price quoted on stock exchanges or other markets where the Currency-Hedged Commodity
Securities are listed or traded. The fair values and changes thereof during the year based on prices available on the open market as recognised in the
financial statements are:
As at 31 December 2025, there were certain Commodity Contracts awaiting settlement in respect of the creation or redemption of Currency-Hedged
Commodity Securities with transaction dates before the year end and settlement dates in the following year:
The below reconciliation of changes in the Commodity Contracts includes only non-cash changes.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
7.
Currency-Hedged Commodity Securities (continued)
•
•
2025 2024
USD USD
Opening Commodity Securities 192,137,223 216,608,430
Securities Created 426,191,314 178,839,361
Securities Redeemed (342,693,221) (201,799,030)
Management Fee and Licence Allowance (1,427,852) (1,261,743)
Change in Fair Value 134,874,270 (249,795)
Closing Commodity Securities
409,081,734 192,137,223
8.
Trade and Other Payables
2025 2024
USD USD
ManJer Fees Payable
275,565 115,425
9. Stated Capital
2025 2024
USD USD
2 Shares of Nil Par Value, Issued at GBP 1 Each and Fully Paid
3 3
The Company can issue an unlimited capital of Nil par value shares in accordance with its Memorandum of Association.
All shares issued by the Company carry one vote per Share without restriction and carry the right to dividends. All shares are held by WisdomTree
Holdings Jersey Limited (“HoldCo”).
As at
31 December
As at
31 December
The fair value of these payables is equal to the carrying value. The ManJer Fee Payable is due to be settled within 12 months of the year end.
As at
31 December
As at
31 December
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As at 31 December 2025, there were certain Currency-Hedged Commodity Securities awaiting settlement in respect of creations or redemptions with
transaction dates before the year end and settlement dates in the following year:
The amount receivable on Currency-Hedged Commodity Securities awaiting settlement is USD 678,388 (2024: USD 8,300).
The amount payable on Currency-Hedged Commodity Securities awaiting settlement is USD 6,321,255 (2024 USD 482,374).
The below reconciliation of changes in the Commodity Securities, being liabilities arising from financing activities, includes only non-cash changes.
As at
31 December
As at
31 December
The gain or loss on the difference between the value of the Commodity Contracts and the fair value of Currency-Hedged Commodity Securities would be
reversed on a subsequent redemption of the Currency- Hedged Commodity Securities and cancellation of the corresponding Commodity Contracts. Refer
to note 14 to the financial statements for the non-statutory and non-GAAP adjustments which reflect the results of this reversal.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
10.
Related Party Disclosures
Fees charged by ManJer during the year:
2025 2024
USD USD
ManJer Fees
1,868,729 1,426,958
The following balances were due to ManJer at year end:
2025 2024
USD USD
ManJer Fees Payable
275,565 115,425
At 31 December 2025, USD 3 is receivable from ManJer (2024: USD 3).
11.
Financial Risk Management
www.wisdomtree.eu
No director has a service contract with the Company. The directors of the Company who are employees within the WisdomTree, Inc. group do not
receive separate remuneration in their capacity as directors of the Company. The directors of the Company who are employees of Apex Financial
Services (Alternative Funds) Limited (“Apex” or the “Administrator”) and previously R&H Fund Services (Jersey) Limited do not receive separate
remuneration in their capacity as directors of the Company, however Apex receives a fee from ManJer which includes services in respect of the
Company, including for the provision of directors who are employees of Apex.
On 21st Jan 2025 R&H Fund Services (Jersey Limited (“R&H”) resigned as Administrator, and Apex Financial Services (Alternative Funds) Limited
were appointed as Administrator. Vinod Rajput, Elizabeth Casely, and Olivia Vuillemin (up to her date of resignation) are employees of Apex. During
the period,Apex charged ManJer administration fees which include the Company and other entities for which the ManJer is the Manager and R&H and
Apex are the Administrators. Apex total fees amounting GBP 1,324,915 (31 December 2024: GBP 1,209,042) translated in USD 1,781,746 (2024:
USD1,515,534), of which GBP 429,076 (2024: GBP 73,384) translated in USD 577,021 (31 December 2024: USD 91,987) was outstanding at the
period end.
Timothy Darcy is an employee of WisdomTree Ireland Limited, a wholly owned subsidiary of WisdomTree, Inc. Peter Ziemba was an executive officer
of WisdomTree, Inc. and Bryan Governey is European General Counsel for the WisdomTree, Inc. group.
- 31 -
The Company's financial instruments include a number of risks to which the Company is exposed,arising from its activities, including credit risk,
settlement risk, liquidity risk and market risk. The Board is responsible for the overall risk management approach and for approving the risk management
strategies and principles. The Board meets frequently to consider the risk exposures of the Company and to determine appropriate management policies.
The risk management policies employed by the Company to manage these are discussed below.
The Currency-Hedged Commodity Securities are subject to normal market fluctuations and other risks inherent to investing in securities and other
financial instruments. There can be no assurance that any appreciation in the value of securities will occur, and the capital value of an investor’s original
investment is not guaranteed. The value of investments may go down as well as up, and an investor may not get back the original amount invested.
Entities and individuals which have significant influence over the Company, either through ownership or by virtue of being a director of the Company
are considered to be related parties. In addition, entities with common ownership to the Company and entities with common directors are also considered
to be related parties.
Year ended
31 December
Year ended
31 December
As at
31 December
As at
31 December
The information provided below is not intended to be a comprehensive summary of all the risks associated with the Currency-Hedged Commodity
Securities and investors should refer to the most recent Prospectus for a detailed summary of the risks inherent in investing in the Currency-Hedged
Commodity Securities. Any data provided should not be used or interpreted as a basis for future forecast or investment performance.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
11.
Financial Risk Management (continued)
(a) Credit Risk
The realised value of the collateral may differ from the amount owed by the Commodity Contract Counterparty, as prices fluctuate intraday (i.e. from the
last point the exposure and collateral were valued). The collateral posted by the Commodity Contract Counterparties can include cash invested in Eligible
Money Market Funds with a minimum rating of AAA, publicly traded debt securities with a minimum rating of A- or in eligible equities (that in
summary also meet these minimum requirements). These collateral schemes also apply strict margins and concentration limits (both by Issuer and
Jurisdiction) to reduce the risk of such a loss, but do not completely remove it. Full details of “Eligible Collateral” can be found in the Company’s
prospectus.
The collateral pledged with the Collateral Custodian is re-assessed on a daily basis to ensure that the value of the collateral in the pledged account is
sufficient relative to value of the Commodity Contracts outstanding and to ensure that the eligibility criteria for the collateral continues to be met on a
daily basis. Should the quality of the underlying collateral change on any day, it is removed from the collateral account and replaced with collateral that
meets the eligibility criteria.
The collateral held with the Collateral Custodian is held in accounts in the names of the Commodity Contract Counterparties. The Company
publishes the collateral posted by the Commodity Contract Counterparties each day on its website (http://www.wisdomtree.eu/pricing).
In the event that a Commodity Contract Counterparty defaults on its payment obligations, the Company is entitled to exercise control over the
collateral amounts placed in the pledged account
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To cover the credit risk under the Commodity Contracts, the Commodity Contract Counterparties are obliged to place an amount of collateral, equal to or
greater than the exposure, into a pledged account with a third party custodian, being the Bank of New York Mellon (the “Collateral Custodian"). The
level of collateral deposited into the pledged account is assessed against the total outstanding value of the Commodity Contracts outstanding at the end of
the previous trading day, which on the 31 December 2025 totalled USD 404,292,658 (2024: USD 193,735,960), with collateral pledged with a total
value of USD 421,138,687 (2024: USD 201,333,695).
The Board monitors credit risk exposure, including through an assessment of the credit rating of the Commodity Contract Counterparties Citigroup
Global Markets Limited: A+ (Fitch, 15 August 2025) (2024: A+) (Fitch, 28 August 2024) and Merrill Lynch International: AA (Fitch, 03 June 2025)
((2024: AA) (Fitch, 12 June 2024)), in order to ensure the Company’s exposure is managed, and has continued to do so more closely with a focus on any
potential impact of, or developments relating to the Geopolitical conflicts.
Credit risk primarily refers to the risk that Authorised Participants or the Commodity Contract Counterparties will default on their contractual obligations
resulting in financial loss.
There are compulsory redemption provisions as outlined in the prospectus that can be triggered by the Company or the Commodity Contract
Counterparties in certain circumstances whereby a compulsory redemption of all Currency-Hedged Commodity Securities in issue would be undertaken.
The total carrying amounts of commodity contracts, the amounts receivable awaiting settlement and trade and other receivables best represent the
maximum credit risk exposure at the Statement of Financial Position date. At the reporting date the Company’s commodity contracts, amounts receivable
awaiting settlement and trade and other receivables are detailed on the Statement of Financial Position.
The value of Currency-Hedged Commodity Securities and the ability of the Company to repay the redemption price is dependent on the receipt of such
amount from the Commodity Contract Counterparties and may be affected by the credit rating attached to each Commodity Contract Counterparty.
Currently the Company has two Commodity Contract Counterparties, Citigroup and Merrill Lynch. At the reporting date the exposure to the Commodity
Contract Counterparties was split approximately 43.65% and 56.35% (2024: 34% and 66%), respectively.
In the event that a Commodity Contract Counterparty was to default, the Company would only transact with the non-defaulting Commodity Contract
Counterparty. Furthermore, the Company could use the proceeds resulting from the sale of the collateral (see below) to transact with the non-defaulting
Commodity Contract Counterparty to replacing the affected Commodity Contracts where possible.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
11.
Financial Risk Management (continued)
(b) Settlement Risk
(c) Liquidity Risk
(d) Sensitivity Analysis
(e) Capital Management
IFRS 7 requires disclosure of a sensitivity analysis for each type of market risk to which the Company is exposed to at the reporting date, showing how
profit or loss and equity would have been affected by a reasonably possible change to the relevant risk variable.
The Company’s obligations and liability in respect of Currency-Hedged Commodity Securities and Commodity Contracts, respectively, relates to its
contractual obligations to issue and redeem Currency-Hedged Commodity Securities at set prices on each trading day. The fair value of each creation and
redemption of Currency-Hedged Commodity Securities is recorded using the price by reference to the value of the commodity indices calculated and
published by Bloomberg. However, under IFRS 13, the liability is recorded at fair value (being the on-exchange price) which results in a mismatch. As
described in note 14 to the financial statements this mismatch is reversed on the redemption of Currency Securities. As a result, the Company’s
contractual and economic liability in connection with the issue and redemption of Currency-Hedged Commodity Securities is matched by movements in
corresponding Commodity Contracts.
Whilst sensitivity analysis could be performed on this mismatch, the Company does not have any net exposure to market price risk. Furthermore, the
result of the numeric sensitivity is considered not material by the directors and in their opinion, no sensitivity analysis is required to be disclosed.
The primary objective of the Company’s capital management policy is to ensure that it maintains sufficient resources for operational purposes. The
capital being managed is the Stated Capital as presented in the Statement of Changes in Equity. Retained Earnings and the Revaluation Reserve, as
presented in the Statement of Changes in Equity, are not considered managed capital as these balances relate to unrealised gains and losses on
Commodity Contracts (held to support the Currency-Hedged Commodity Securities) and Currency-Hedged Commodity Securities, which are reversed on
a subsequent redemption of the Currency-Hedged Commodity Securities and the related cancellation of Commodity Contracts and will therefore not be
realised. The Company is not subject to any capital requirements imposed by a regulator and there were no changes in the Company’s approach to capital
management during the year.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities as they fall due. The
Company’s payables are all payable on demand and generally settled on a short-term basis. In addition, amounts in respect of the Management Fee,
Licence Allowance and creation and redemption fees are transferred from the relevant counterparties directly to ManJer and there are no cash flows
through the Company.
Each class of Currency-Hedged Commodity Security is not redeemable at fair value but at their contractual value and is issued under limited recourse
arrangements whereby the holders have recourse only to the relevant Commodity Contracts (held to support the Currency-Hedged Commodity Securities)
and not to the Commodity Contracts of any other class of Currency-Hedged Commodity Securities or to the Company, therefore limiting the credit risk of
the Company in connection with the issue of the Currency-Hedged Commodity Securities.
The Currency-Hedged Commodity Securities do not have a contractual maturity date and will only be redeemed at the request of the holder of the
security, which may be requested at any time, or in the case of a compulsory redemption. Generally, only Authorised Participants can submit applications
and redemptions directly with the Company.
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Furthermore, liquidity risk for the Company is reduced because the timing of redemptions of the Currency- Hedged Commodity Securities and
Commodity Contracts are matched, therefore the Company does not have to wait for a longer-term contract to mature in order to pay its debts to ex-
security holders. Furthermore, while the agreements with the Commodity Contract Counterparties include limits (both daily and in the aggregate) on the
issue and cancellation of Commodity Contracts, the Company is not obliged to issue and redeem Currency-Hedged Commodity Securities in excess of
those limits under the terms of the security agreement. Consequently, the Company has not presented any quantitative information in respect of liquidity
risk.
The directors believe that settlement risk would only be caused by the risk of the Company’s trading counterparty not delivering cash, Commodity
Contracts or Currency-Hedged Commodity Securities on the settlement date. The directors believe that this risk is mitigated as a result of the cash or
Currency-Hedged Commodity Securities settling through the CREST system. The system ensures that the transaction does not settle until both parties
have fulfilled their contractual obligations. Amounts outstanding in respect of positions yet to settle are disclosed in notes 6 and 7 to the financial
statements.
Settlement risk refers to the possibility that an Approved Applicant or the Custodian may fail to honour their contractual settlement obligations, which
could result in financial loss.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
11.
Financial Risk Management (continued)
(e) Capital Management (continued)
(f) Market Risk
i) Price Risk
ii) Interest Rate Risk
iii) Currency Risk
However, there is an inherent risk from the point of view of investors as the value of commodities, and thus the value of the Currency-Hedged
Commodity Securities, may vary widely due to, amongst other things, changing supply or demand for a particular commodity, government and
monetary policy or intervention, interest rate levels and global or regional political, economic or financial events.
The market price of Currency-Hedged Commodity Securities is (and will remain) a function of supply and demand amongst investors wishing to buy
and sell Currency-Hedged Commodity Securities and the bid- offer spread that the market makers are willing to quote. This is highlighted further in
note 11 (g) to the financial statement, and below under the Fair Value Hierarchy.
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The multiplier used in the pricing of the Commodity Contracts or the Currency-Hedged Commodity Securities takes into account the incremental
capital enhancement component of the Currency-Hedged Commodity Security, which includes the impact of interest rates. This incremental capital
enhancement component of the Commodity Contracts and Currency-Hedged Commodity Securities is attributable to the security holder. As a result,
the Company does not have significant exposure to interest rate risk.
The Company has exposure to currency risk as the Currency-Hedged Commodity Securities and Commodity Contracts are priced in US Dollars and
hedged against exchange rate movements between the US Dollar, Euro and Pound Sterling. However, the directors do not consider the Company to
have a significant exposure to currency risk arising from the current economic uncertainties facing a number of countries around the world as the
gains or losses on the liability represented by the Currency-Hedged Commodity Securities are matched economically by corresponding losses or gains
attributable to the Commodity Contracts.
The Company’s principal activity is the issue and listing of Currency-Hedged Commodity Securities. These Currency-Hedged Commodity Securities are
issued and redeemed as demand requires. The Company holds a corresponding number of Commodity Contracts which matches the total liability of the
Currency-Hedged Commodity Securities issued. ManJer supplies or arranges for the supply of all management and administration services to the
Company and pays all management and administration costs of the Company. In return for these services the Company pays ManJer a fee, which under
the terms of the service agreement is equal to the aggregate of the Management Fee, Licence Allowance.
As all Currency-Hedged Commodity Securities in issue are supported by an equivalent number of Commodity Contracts held with the Commodity
Contract Counterparties and the running costs of the Company are paid by ManJer, the directors of the Company consider the capital management and its
current capital resources are adequate to maintain the ongoing listing and issue of Currency-Hedged Commodity Securities.
Market risk is the risk that changes in market prices (such as index and equity prices, interest rates and foreign exchange rates) will affect the Company’s
income or the value of its financial instruments held or issued.
As described above, Currency-Hedged Commodity Securities provide investors with long exposure to the performance of the relevant commodity
index.
The value of the Company’s liability in respect of the Currency-Hedged Commodity Securities fluctuates according to the performance of the
underlying commodity indices and the risk of such change in price is managed by the Company by entering into Commodity Contracts with the
Commodity Contract Counterparties which match the liability. Whilst the Currency-Hedged Commodity Securities are quoted on the open market,
the Company’s ultimate liability relates to its contractual obligations to issue and redeem Currency-Hedged Commodity Securities at set prices on
each trading day. The Company measures the Currency-Hedged Commodity Securities at their fair value in accordance with IFRS 13 rather than at
the Contractual Value (as described in the Prospectus). The gain or loss on the difference between the value of the Commodity Contracts and the fair
value of Currency-Hedged Commodity Securities would be reversed on a subsequent redemption of the Currency-Hedged Commodity Securities and
cancellation of the corresponding Commodity Contracts. Refer to note 7 to the financial statements for the further details regarding fair values.
The Company therefore bears no residual financial risk on a contractual basis from a change in the value of a commodity, commodity index or
currency by reference to the futures price. Furthermore, the impact of price sensitivity is considered immaterial to these financial statements.
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
11.
Financial Risk Management (continued)
(g) Fair Value Hierarchy
The Levels in the hierarchy are defined as follows:
•
Level 1 fair value based on quoted prices in active markets for identical assets.
•
Level 2 fair values based on valuation techniques using observable inputs other than quoted prices.
•
Level 3 fair values based on valuation techniques using inputs that are not based on observable market data.
The categorisation of the Company’s assets and (liabilities) are as shown below:
2025 2024
USD USD
Level 1
Currency-Hedged Commodity Securities (404,006,809) (178,556,324)
Level 2
Currency-Hedged Commodity Securities (5,074,925) (13,580,899)
Commodity Contracts 397,473,231 190,163,656
The Company values the Level 2 Currency-Hedged Commodity Securities using the unadjusted market price available at each reporting date. This is
considered to most appropriately reflect the price at which transactions would occur as at the reporting date.
The Company’s rights in respect of Currency-Hedged Commodity Securities relate to its contractual obligations to issue and redeem Commodity
Contracts at set prices on each trading day. The Commodity Contracts are priced by reference to certain currency-hedged commodity indices calculated
and published by Bloomberg L.P. or Bloomberg Finance L.P. (together “Bloomberg”) and a multiplier calculated by the Company and agreed with the
Commodity Contract Counterparties. The multiplier takes into account the daily accrual of the Management Fee and Licence Allowance and swap spread
as well as the incremental capital enhancement component of the Currency-Hedged Commodity Security, and is the same across all Currency-Hedged
Commodity Securities of the same type (i.e. all classic Currency-Hedged Commodity Securities use the same multiplier). This price (the Contractual
Value) is calculated based on the formula set out in the Prospectus and is considered to be the fair value of the Commodity Contracts.
The Currency-Hedged Commodity Securities and the Commodity Contracts are recognised at fair value upon initial recognition and revalued to fair
value in line with the Company’s accounting policy.
Transfers between levels would be recognised if there was a change in circumstances that prevented public information in respect of Level 1 inputs from
being available. Any such transfers would be recognised on the date of the change in circumstances that cause the transfer. Transfers between levels may
also be recognised if the primary market on which the Currency-Hedged Commodity Securities prices are quoted was determined to be inactive at the
relevant reporting date. The Company considers both the last trade date and trading volumes during the 5 trading days leading up to each reporting date
to determine if the market for a particular Currency-Hedged Commodity Security is active. Transfers as a result of the analysis of the activity levels of the
market are identified and recognised at each reporting date.
There were no transfers or reclassifications between Level 1 and Level 2 for any of the assets during the year or at the reporting date. As at 31 December
2025, Currency-Hedged Commodity Securities with a fair value of USD 5,074,925 (2024: USD 13,047,100) were transferred from Level 1 to Level 2,
and Currency-Hedged Commodity Securities with a fair value of USD 15,490,937 (2024: USD 1,020,686) were transferred from Level 2 to Level 1.
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The Company is required to utilise the available on-market price as the Currency-Hedged Commodity Securities are quoted and traded on the open
market. Where the market on which the Currency-Hedged Commodity Securities prices are quoted is determined to be active at the relevant reporting
date, the Currency-Hedged Commodity Securities are classified as Level 1 financial liabilities. Where the market on which the Currency-Hedged
Commodity Securities prices are quoted is determined to be inactive at the relevant reporting date, the Currency-Hedged Commodity Securities are
classified as Level 2 financial liabilities.
Categorisation within the hierarchy is determined on the basis of the lowest level input that is significant to the fair value measurement of each relevant
asset/liability.
Fair Value
As at
As at
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
2025 2024
USD USD
Change Fair Value of Commodity Contracts 125,239,334 (1,465,565)
Change in Fair Value of Currency-Hedged Commodity Securities (134,874,270) 249,795
(9,634,936) (1,215,770)
To reflect the commercial results, the Company has presented below a non-GAAP and non-Statutory Statement of Profit or Loss and Other
Comprehensive Income and Statement of Changes in Equity for the year which reflect an adjustment from market value to contractual value (as set out in
the Prospectus) of Currency-Hedged Commodity Securities, together with those gains or losses being transferred to a separate reserve which is deemed
non-distributable.
12.
Ultimate Controlling Party
In
accordance
with
the
disclosure
requirements
of
IFRS
the
directors
have
determined
that
no
entity
meets
the
definition
of
immediate
parent
or
ultimate
controlling
party.
The
holder
of
issued
equity
shares
is
Electra
Target
HoldCo Limited,
a
Jersey
registered
company.WisdomTree,
Inc
(formerly
WisdomTree Investments, Inc) is the ultimate controlling party of Electra Target HoldCo Limited.
13. Subsequent events
The
Directors
have
evaluated
events
occurring
after
the
reporting
date
up
to
the
date
of
approval
of
these
financial
statements
and
have
determined
that
there
were
no
events
subsequent
to
31
December
2025
that
require
adjustment
to,
or
disclosure
in,
the
financial
statements.
No
matters
have
arisen
that
would materially affect the Company’s financial position, performance, or the presentation of these financial statements.
14. Non-GAAP and Non-Statutory Information
As
a
result
of
the
mis-match
in
the
accounting
valuation
of
Commodity
Contracts
(held
to
support
the
Currency-
Hedged
Commodity
Securities)
and
Currency-Hedged
Commodity
Securities
(as
disclosed
in
notes
6
and
7
to
the
financial
statements)
the
profits
and
losses
and
other
comprehensive
income
of
the
Company
presented
in
the
Statement
of
Profit
or
Loss
and
Other
Comprehensive
Income
reflect
gains
and
losses
which
represent
the
movement
in
the
cumulative
difference
between
the
value
of
the
Commodity
Contracts
and
the
price
of
Currency-Hedged
Commodity
Securities.
The
Statement
of
Changes
in
Equity
also
reflects
the
fair
value
movements
on
both
the
Commodity
Contracts
(held
to
support
the
Currency-Hedged
Commodity Securities) and the Currency-Hedged Commodity Securities.
These
gains
or
losses
on
the
difference
between
the
value
of
the
Commodity
Contracts
(held
to
support
the
Currency-Hedged
Commodity
Securities)
and
the
price
of
Currency-Hedged
Commodity
Securities
would
be
reversed
on
a
subsequent
redemption
of
the
Currency-Hedged
Commodity
Securities
and
cancellation
of
the
corresponding
Commodity
Contracts.
Furthermore,
each
class
of
Currency-Hedged
Commodity
Security
is
issued
under
limited
recourse
arrangements
whereby
the
holders
have
recourse
only
to
the
relevant
Commodity
Contracts
(held
to
support
the
Currency-Hedged
Commodity
Securities)
and
not
to
the
Commodity
Contracts
of
any
other
class
of
Currency-Hedged
Commodity
Security
or
to
the
Company.
As
a
result,
the
Company
does
not
make
gains
from
trading
in
the
underlying
Commodity
Contracts
(held
to
support
the
Currency-Hedged
Commodity
Securities)
and,
from
a
commercial
perspective
(with
the
exception
of
the
impact
of
management
fees
and
licence
allowance)
gains
and
losses
in
respect
of
Commodity
Contracts
(held
to
support
the
Currency-Hedged
Commodity
Securities)
will
always
be
offset
by
a
corresponding
loss
or
gain
on
the
Currency-Hedged
Commodity Securities and the Company does not retain any net gains or losses.
The mismatched accounting values are as shown below:
Year ended 31
December
Year ended 31
December
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WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
14.
Non-GAAP and Non-Statutory Information (continued)
(a) Non-GAAP and Non-Statutory Statement of Profit or Loss and Other Comprehensive Income
2025 2024
USD USD
Income
1,868,729 1,426,958
Expenses
(1,868,729) (1,426,958)
Result Before Fair Value Movements
- -
Change in Fair Value of Commodity Contracts
125,239,334 (1,465,565)
Change in Fair Value of Currency-Hedged Commodity Securities
(134,874,270) 249,795
Loss for the Year
(9,634,936) (1,215,770)
9,634,936 1,215,770
Adjusted Result
- -
(b) Non-GAAP and Non-Statutory Statement of Changes in Equity
USD USD USD USD USD
Balance at 1 January 2024
3 - (757,797) (757,794) 3
- (1,215,770) - (1,215,770) (1,215,770)
Transfer to Revaluation Reserve
- 1,215,770 (1,215,770) - -
- - - - 1,215,770
Balance at 31 December 2024
3 - (1,973,567) (1,973,564) 3
4 This represents the difference between the value of the Commodity Contracts and the price of the Currency-Hedged Commodity Securities
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Share
Capital
Year ended 31
December
Year ended 31
December
Adjustment from Market Value to Contractual Value (as set out in the Prospectus) of Currency-
Hedged Commodity Securities
Retained
Earnings
Revaluation
Reserve
4
Total
Equity
Adjusted
Total Equity
Loss and Total Comprehensive Expense for the
Year
Adjustment from Market Value to Contractual
Value (as set out in the Prospectus) of Currency-
Hedged Commodity Securities
WisdomTree Hedged Commodity Securities Limited
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
14.
Non-GAAP and Non-Statutory Information (continued)
(b) Non-GAAP and Non-Statutory Statement of Changes in Equity
USD USD USD USD USD
Balance at 1 January 2025
3 - (1,973,567) (1,973,564) 3
- (9,634,936) - (9,634,936) (9,634,936)
Transfer to Revaluation Reserve
- 9,634,936 (9,634,936) - -
- - - - 9,634,936
Balance at 31 December 2025
3 - (11,608,503) (11,608,500) 3
Adjustment from Market Value to Contractual
Value (as set out in the Prospectus) of Currency-
Hedged Commodity Securities
Loss and Total Comprehensive Expense for the
Year
4 This represents the difference between the value of the Commodity Contracts and the price of the Currency-Hedged Commodity Securities
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Share
Capital
Retained
Earnings
Revaluation
Reserve
4
Total
Equity
Adjusted
Total Equity