WisdomTree Hedged Metal Securities
Limited
Registered No: 108311
Annual Report and Audited Financial Statements for the
Year ended 31 December 2025
WisdomTree Hedged Metal Securities Limited
Contents
Pages
Management and Administration 1
Directors' Report 2 - 8
Statement of Directors' Responsibilities 9
Independent Auditor's Report 10 - 16
Statement of Profit or Loss and Other Comprehensive Income 17
Statement of Financial Position 18
Statement of Changes in Equity 19
Statement of Cash Flows 20
Notes to the Financial Statements 21 - 38
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WisdomTree Hedged Metal Securities Limited
Management and Administration
Directors
Company Secretary
Vinod Rajput
Apex Financial Services (Secretaries) Limited
Bryan Governey
IFC 5
Elizabeth Casely (Appointed on 02 July 2025)
St Helier
Timothy Jeremiah Darcy (Appointed on 07 August 2025)
Jersey, JE1 1ST
Olivia Vuillemin (Resigned on 02 July 2025)
Peter Ziemba (Resigned on 07 August 2025)
Jersey Legal Advisers
Mourant Ozannes (Jersey) LLP
Registered Office
22 Grenville Street
IFC 5 St Helier
St Helier Jersey, JE4 8PX
Jersey, JE1 1ST
Registrar
Manager
Computershare Investor Services (Jersey) Limited
Wisdom Tree Management Jersey Limited 13 Castle Street
IFC 5
St Helier
St Helier
Jersey, JE1 1ES
Jersey, JE1 1ST
FX Counterparty
Morgan Stanley & Co. International PLC
25 Cabot Square, Canary Wharf
London, E14 4QA
United Kingdom
Auditor
Ernst & Young LLP
Liberation House
Castle Street
St Helier
Jersey, JE1 1EY
Trustee
The Law Debenture Trust Corporation plc
8th Floor
100 Bishopsgate
London, EC2N 4AG
United Kingdom
Administrator
Apex Financial Services (Alternative Funds) Limited
IFC 5
St Helier
Jersey, JE1 1ST
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WisdomTree Hedged Metal Securities Limited
Directors’ Report
Directors
Vinod Rajput
Bryan Governey
Elizabeth Casely (Appointed on 02 July 2025)
Timothy Jeremiah Darcy (Appointed on 07 August 2025)
Olivia Vuillemin (Resigned on 02 July 2025)
Peter Ziemba (Resigned on 07 August 2025)
Directors’ Interests
Principal Activities
through an appropriate counterparty (such as an authorised participant); or
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The directors of WisdomTree Hedged Metal Securities Limited (“HMSL” 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 metal securities (“Currency-Hedged Metal Securities”). Currency-
Hedged Metal Securities allow investors to gain a currency hedged exposure to the precious metals market without needing to take physical delivery
of the physical metal or enter into currency hedged transactions. It also allows investors to buy and sell that 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.
Each Currency-Hedged Metal Security is denominated in a specified currency and is backed by physical metal (“Metal Bullion”) which is held in
custody by designated custodians, supported by one or more Metal Adjustment Agreements (and “Metal Adjustment Contracts” entered into
pursuant thereto) with one or more FX Counterparties (currently the only FX Counterparty is Morgan Stanley & Co. International plc (“Morgan
Stanley”)) which provide a currency hedging overlay.
The Metal Bullion is the subject of fixed and floating charges in favour of the Trustee, and once deposited, may only be removed after approval
from the Trustee. A holder of a Currency-Hedged Metal Security is entitled to require the redemption of that Currency-Hedged Metal Security and
receive an amount of Metal Bullion equal to the Metal Entitlement on the date of redemption (and subject to applicable redemption fees). This
redemption may occur:
in the case of any other holder – only in circumstances where there are no authorised participants (or otherwise as determined by the
Company), and where the holder meets certain requirements, including but not limited to the holder not being an Undertaking for
Collective Investment in Transferable Securities (“UCITS”).
The amount of Metal Bullion and Metal Adjustment Contracts held by the Company will be calculated in accordance with an agreed formula
published in the Prospectus equivalent to the entitlement (the “Metal Entitlement”) of each class of Currency-Hedged Metal Security. The Metal
Entitlement is adjusted daily by an amount of bullion (the “Daily Hedging Variation”), which reflects the daily movement of an index, tracking the
variation in the exchange rate between United States Dollars and the currency of denomination of that class of Currency-Hedged Metal Security, as
well as being adjusted for the deduction of applicable fees (see below). The Company earns a management and hedging fee by reducing the Metal
Entitlement of each class of Currency-Hedged Metal Security on a daily basis by an agreed amount (the “Management Fee” and the “Hedging
Fee”). A fee equivalent to the Hedging Fee is paid to the FX Counterparty (the “FX Counterparty Fee”).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 Metal 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 and the creation and redemption fees earned (the “ManJer Fee”). The Metal Bullion in
respect of the Management Fee and Hedging Fee is transferred in the form of bullion on a monthly basis (in arrears) following agreement from the
Trustee from the Company’s custodian accounts directly to ManJer (and ManJer transfers the Metal Bullion in respect of the Hedging Fee to the FX
Counterparty). In addition, creation and redemption fees are transferred directly to ManJer and there are no cash flows through the Company.
WisdomTree Hedged Metal Securities Limited
Directors’ Report (Continued)
Review of Operations
WisdomTree GBP Daily Hedged Physical Gold
P
- - -
WisdomTree EUR Daily Hedged Physical Gold -
P P P
The Company is entitled to:
Creation and redemption fees on the issue and redemption of the Currency-Hedged Metal Securities.
The Management Fee and Hedging Fee rates for each class of Currency-Hedged Metal Security are:
WisdomTree GBP Daily Hedged Physical Gold 0.12 0.10
WisdomTree EUR Daily Hedged Physical Gold 0.12 0.10
Up to 12 September 2025 - the management fee % Rate (p.a) was 0.15
The most recent Prospectus was issued on 14 October 2025. As at 31 December 2025, the Company had the following classes of Currency-Hedged
Metal Securities in issue and admitted to trading on the following exchanges:
London
Stock
Exchange
Borsa
Italiana
Deutsche Börse NYSE- Euronext
Paris
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Management Fee %
Rate (p.a)
Hedging Fee %
Rate (p.a)
Management Fees and Hedging Fees calculated by reducing the Metal Entitlement of each class of Currency-Hedged Metal Security on a
daily basis by an agreed amount; and
The Company holds Metal Bullion and enters into Metal Adjustment Contracts to support the Currency-Hedged Metal Securities as determined by
the Metal Entitlement. Metal Bullion and Metal Adjustment Contracts are marked to fair value at the end of each Pricing Day by reference to the
spot rate for Metal Bullion, as published by the London Bullion Market Association (“LBMA”) and the MSPM indices published by Morgan
Stanley (referred to within these financial statements as the “Contractual Value”). The reference price used to convert the value of the currency
hedge into a quantity of Metal Bullion is the spot rate for Metal Bullion as published by the LBMA. As at 31 December 2025 the Company held
922,036.59 troy ounces of gold (2024: 768,060.672 troy ounces) with a fair value of USD 4,521,575,883 (2024: USD 2,005,304,859).
The Company has entered into an overdraft agreement with the custodian in respect of each class of Currency-Hedged Metal Securities which each
allow for the loan of up to one bullion bar of gold (collectively the “Overdraft Facility”). The Overdraft Facility is denominated in ounces of Metal
Bullion, repayable in ounces of Metal Bullion equivalent to the Metal Bullion on Loan. The Overdraft Facility is recorded at the fair value of the
ounces of Metal Bullion using the latest price published by the LBMA and changes in fair value are recognised through profit or loss.
The Company has entered into contractual obligations to issue and redeem Currency-Hedged Metal Securities in exchange for Metal Bullion as
determined by the Metal Entitlement of each class of Currency-Hedged Metal Security on each trading day. The Metal Bullion in respect of each
creation and redemption is recorded using the price published by the LBMA on the transaction date.
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 Metal Securities are listed to be the principal market and as a result the fair value of the Currency-
Hedged Metal Securities is the on-exchange price as quoted on the stock exchange demonstrating active trading with the highest trading volume.
As a result of the difference in valuation between the Metal Bullion, Metal Adjustment Contracts and Currency-Hedged Metal 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 value of the Metal
Bullion and the Metal Adjustment Contracts (through the application of the price published by the LBMA against the Metal entitlement, referred to
within these financial statements as the “Contractual Value”) and the price of Currency-Hedged Metal Securities.
The gain or loss on Currency-Hedged Metal Securities and Metal Bullion together with the Metal Adjustment Contracts are recognised through
profit or loss in line with the Company’s accounting policy. This is presented in more detail in notes 7 and 8 to these financial statements.
WisdomTree Hedged Metal Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
2025 2024
USD USD
Creation and Redemption Fees
54,963
10,569
Management Fees and Licence Allowance
4,211,683
2,756,354
Hedging Fees
3,042,629
1,837,568
Total Fee Income 7,309,275
4,604,491
Non-GAAP Performance Measures
Future Developments
Going Concern
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The change in Metal Entitlement of each class of Currency-Hedged Metal Security reduces the value of the Currency-Hedged Metal Securities. This
reduction equates to the Management Fee and Hedging Fee amount in Metal Bullion, that is recognised for that day per each Currency-Hedged
Metal Security in issue on that day. The Management Fees and Hedging Fees are accrued and recognised on a daily basis until invoiced and settled
by transfer of the Metal Bullion. The amount recognised as income is calculated by applying the average LBMA Price to the total Management Fee
and Hedging Fee accrued on a monthly basis.
Under the terms of the service agreement with ManJer, the Company accrued expenses equal to the management fees and the 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).
The difference in the valuation of Metal Bullion (held to support the Currency-Hedged Metal Securities) and Currency-Hedged Metal Securities
would be reversed instead of being realised. As the difference in the valuation of Metal Bullion and Currency-Hedged Metal Securities would be
reversed on a subsequent redemption of the Currency-Hedged Metal Securities and transfer of the corresponding Metal Bullion (as described
further in note 16 to the financial statements), the Company presents an adjusted Statement of Profit or Loss and Other Comprehensive Income and
an adjusted Statement of Changes in Equity in note 16 of the financial statements.
The Board is not aware of any other developments that might have a significant effect on the operations of the Company in subsequent financial
periods not already disclosed in this report or the attached financial statements.
The directors continue to monitor and assess the impact of geopolitical conflicts 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.
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During the year, the Company generated income from Management Fees, Hedging Fees and creation and redemption fees as follows :
WisdomTree Hedged Metal Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
Going Concern (continued)
Dividends
Corporate Social Responsibility
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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 include 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
(https://www.wisdomtree.eu/en-gb/wisdomtree-corporate-responsibility).
There were no dividends declared or paid in 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 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, and as set out in note 13 to the financial statements are
categorised as level 2 due to the use of observable, verifiable inputs and third party information sources. The liabilities are valued using 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.
Sustainability and corporate responsibility are embedded throughout the business of the WisdomTree group as it is believed this benefits
shareholders and employees of the WisdomTree group, investors in WisdomTree’s products as well as wider society.
The nature of the Company’s business dictates that the outstanding Currency-Hedged Metal 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 Metal Securities will always coincide with the transfer of an equal amount (in value) of Metal Bullion,
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 Metal Bullion are held to support Currency-Hedged Metal Securities, any deficit or
surplus reported on unrealised positions would be reversed on a subsequent redemption of the Currency-Hedged Metal Securities and the related
cancellation of Metal Bullion. 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 Metal can be managed in accordance with the terms of the applicable
Prospectus. The directors continue to monitor price changes impacting the Metal Bullion Exposure. 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. 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 Metal Bullion Exposure 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 Metal Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
Corporate Social Responsibility (continued)
Directors’ Remuneration
Employees
Auditor
Principal Risks and Uncertainties
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 for each period. 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.
The Company does not have any employees (2024: none) . It is the Company’s policy to use the services of specialist subcontractors or consultants
as far as possible.
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
director on behalf of the sole shareholder.
The Currency-Hedged Metal Securities provide investors with exposure to precious metals. Each Currency-Hedged Metal Security is a debt
instrument whose redemption price is linked to the value of the relevant underlying Metal Bullion and Metal Adjustment Contracts. Each class of
Currency-Hedged Metal Securities is issued under limited recourse arrangements whereby the holders have recourse only to the relevant Metal
Bullion and Metal Adjustment Contracts held to support the Currency-Hedged Metal Security and not to the Metal Bullion and Metal Adjustment
Contracts of any other class of Currency-Hedged Metal Security or the Company.
Any movements in the value of the Metal Bullion and Metal Adjustment Contracts are wholly attributable to the holders of the Currency-Hedged
Metal Securities, therefore the Company has no residual exposure to movements in the value of the Metal Bullion and Metal Adjustment 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
the Management Fee and the Hedging Fee) the gains or losses on the liability represented by the Currency- Hedged Metal Securities are matched
economically by corresponding losses or gains attributable to the Metal Bullion and Metal Adjustment Contracts (see detail on page 3 regarding the
accounting mis-match).
There is an inherent risk from the point of view of investors as the values of Metal Bullion, and thus the value of the Currency-Hedged Metal
Securities, may vary widely due to, amongst other things, changing supply and demand for Metal Bullion, government and monetary policy or
intervention, interest rate levels and global or regional political, economic or financial events.
The market price of Currency-Hedged Metal Securities is (and will remain) a function of supply and demand amongst investors wishing to buy and
sell Currency-Hedged Metal Securities and the bid or offer spread that the market makers are willing to quote.
The Board recognises that government and societal responses to climate change risks are still 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 (Secretaries) Limited (“Apex” or the “Administrator”) 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.
The Company has exposure to country and currency risk as the Currency-Hedged Metal Securities are priced in US Dollars and hedged against
exchange rate movements between the US Dollar and the Euro or Pound Sterling. However, the directors do not consider the Company to have a
significant net exposure to country and currency risk as the gains or losses on the liability represented by the Currency-Hedged Metal Securities are
matched economically by corresponding losses or gains attributable to the Metal Bullion and Metal Adjustment Contracts.
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WisdomTree Hedged Metal Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
Principal Risks and Uncertainties (Continued)
The fair value the Currency-Hedged Metal Securities as at 31 December amounted to:
Number USD Number USD
WisdomTree GBP Daily Hedged Physical Gold
98,143,015 2,957,759,545
93,445,115 1,586,718,277
WisdomTree EUR Daily Hedged Physical Gold
57,269,827 1,563,816,339
28,120,727 418,586,582
4,521,575,884
2,005,304,859
Movement
2025 2024 %
Gold Bullion 4,367.80 2,610.85 67.29%
2025 Review
Future Outlook
Additional information on other financial and operational risks and uncertainties faced by the Company, including further details surrounding the
value of Currency-Hedged Metal Securities and the Metal Bullion and Metal Adjustment Contracts are disclosed in note 13 to these financial
statements.
Movements in the value of the underlying Metal Bullion and Metal Adjustment Contracts, and thus the value of the Currency-Hedged Metal
Securities, may vary widely which could have an impact on the demand for the Currency-Hedged Metal Securities issued by the Company. The
movement in the prices of the Metal Bullion are:
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Central bank demand is expected to remain strong, while newer sources of institutional demand — including insurance companies, pension funds
and digital asset issuers — are likely to continue accumulating gold gradually. Together, these dynamics suggest that gold’s investor base is
broadening beyond traditional cyclical and speculative buyers.
Further information on the contractual value of the Currency-Hedged Metal Securities on a daily basis can be found on the WisdomTree website
(https://www.wisdomtree.eu/en-gb/products)
LBMA Price USD
2025 2024
Gold delivered an exceptional performance in 2025, rising 65% over the year, marking its strongest annual gain since 1979. The rally reflected a
powerful combination of macroeconomic, geopolitical and structural forces that increasingly challenged confidence in fiat currencies and the global
economic order.
A key catalyst was the escalation of trade fragmentation following the introduction of US “Liberation Day” tariffs in April, which triggered fears of
a sharp contraction in global trade and renewed disruption to supply chains. At the same time, geopolitical risks intensified as the erosion of long-
standing security arrangements — including a partial withdrawal of US military support for Europe — reinforced gold’s appeal as a defensive asset.
Concerns over fiscal dominance also moved firmly into focus. Rising government debt levels and growing political pressure on central bank
independence increased fears that monetary policy would ultimately be subordinated to fiscal needs. In this environment, gold increasingly traded
as a pseudo-currency, benefiting from its limited supply growth and independence from central bank balance sheets.
Structural demand provided an additional tailwind. Central banks continued to accumulate gold at record levels, while new sources of demand
emerged. China approved pilot programmes allowing insurance companies to invest in gold, Indian pension funds gained limited access to gold
ETFs, and digital asset issuers such as Tether significantly increased their gold holdings. Together, these developments underscored a broadening
and deepening investor base for the metal.
By year-end, gold prices stood far above prior cyclical peaks, prompting debate as to whether the metal is transitioning away from its historical
“steady state” into a new equilibrium driven by trade realignment, geopolitical risk and reserve diversification.
We believe the structural forces that supported gold in 2025 are likely to remain firmly in place through 2026. Geopolitical risks remain elevated,
with fragile ceasefires, heightened trade fragmentation and a partial erosion of long-standing security arrangements continue to underpin demand
for defensive assets. At the same time, rising public debt levels and concerns around fiscal dominance reinforce gold’s role as a pseudo-currency
and a hedge against potential fiat debasement.
WisdomTree Hedged Metal Securities Limited
Directors’ Report (Continued)
Review of Operations (continued)
Future Outlook (continued)
Corporate Governance
Internal Control
Audit Committee
Vinod Rajput
Director
Jersey
Date:
24
April 2026
We expect price volatility to remain higher than in past cycles as markets adjust to these structural shifts. Recent episodes of extreme intraday
moves highlight that gold may be transitioning away from its historical “steady state”, with price discovery increasingly influenced by non-
traditional channels and episodic geopolitical shocks. While short-term swings may persist, we view volatility as a by-product of gold’s evolving
role rather than a sign of weakening fundamentals. For long-term investors, periods of heightened volatility may offer opportunities to build or
rebalance exposure in an environment characterised by geopolitical uncertainty and constrained policy credibility.
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.
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.
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 Metal Securities, has not undertaken any
business, save for issuing and redeeming Currency-Hedged Metal 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 Metal Securities and performing the obligations and exercising its rights in relation thereto.
The Board has not established a separate audit committee; instead the Board meets to consider the financial reporting by the Company, the internal
controls, and relations with the external auditor. In addition, the Board reviews the independence and objectivity of the auditor.
The Company is dependent upon ManJer to provide 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.
ManJer provides management and other services to both the Company and other related party companies issuing exchange-traded products.
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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.
WisdomTree Hedged Metal Securities Limited
Statement of Directors' Responsibilities
•
•
•
•
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
•
•
•
By order of the Board
Vinod Rajput
Director
Jersey
Date:
24
April 2026
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.
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.
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
statements;
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:
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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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 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
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED METAL SECURITIES LIMITED
Opinion
We have audited the financial statements of WisdomTree Hedged Metal 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 16, 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
profit 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
focused on a combination of;
o Assessing the ongoing viability of the company through continued involvement of its
Custodian, FX Counterparty 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 METAL SECURITIES LIMITED (continued)
-11-
► 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 Liabilities at fair value through profit and loss – Hedged
Metal Securities
Materiality ► Overall materiality of US$45.3m 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 METAL SECURITIES LIMITED (continued)
-12-
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.
Key observationsOur response to the riskRisk
communicated to the Board
Valuation of Financial
Liabilities at fair value through
profit or loss – Currency-
Hedged Metal Securities
2025: USD
4,490,449,978
(2024: USD
2,006,152,381)
Refer to the Accounting policies
(pages 23 to 24 and Note 8 of the
Financial Statements (page 29)
Risk that values of securities in
issue are misstated or that
valuations are incorrectly
captured.
The Currency-Hedged Metal
Securities in issue comprise a
range of financial instrument that
provide holders of issued
securities with exposure to
movements in prices of metals
without needing to take physical
delivery.
Our response to the risk
comprised:
We walked through the
company’s systems, controls
and process implemented in
respect of the valuation of
Currency-Hedged Metal
Securities.
We assessed the design of the
company
’s systems and controls
implemented in respect of
Currency-Hedged Metal
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
Currency-Hedged Metal
There were no matters identified
during our audit work on
valuation of Currency-Hedged
Metal 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
Currency-Hedged Metal
Securities is not materially
misstated.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED METAL SECURITIES LIMITED (continued)
-13-
Key observationsOur response to the riskRisk
communicated to the Board
The Currency-Hedged Metal
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 Currency-
Hedged Metal Securities
represents 99.7% 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.
Securities, against relevant
IFRS requirements.
We independently obtained
security prices using external
pricing sources at the balance
sheet date.
We recalculated the value of
Currency-Hedged Metal
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 Currency-Hedged Metal
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$45.3 million (2024: US$20.1 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.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED METAL SECURITIES LIMITED (continued)
-14-
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$22.65m (2024: US$10.05m). 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.
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$2.27m (2024: US$1m), 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 9,
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
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED METAL SECURITIES LIMITED (continued)
-15-
Responsibilities of directors
As explained more fully in the Statement of Directors’ Responsibilities set out on page 9, 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.
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 Metal 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;
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE HEDGED METAL SECURITIES LIMITED (continued)
7
► 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
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 Metal Securities Limited
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2025
20242025
USDUSDNotes
3Income
7,309,275
4,604,491
3Expenses
(7,309,275)
(4,604,491)
Result Before Fair Value Movements
3
-
-
7
1,760,006,607
341,150,371
Change in Fair Value of Currency-Hedged Metal Securities 8
(1,728,033,179)
(340,858,294)
Profit for the Year
1,
2
31,973,428
292,077
The directors consider the Company’s activities as continuing.
Change in Contractual and Fair Value of Metal Bullion and Metal Adjustment
Contracts
1
A non-statutory and non-GAAP Statement of Profit or Loss and Total Comprehensive Income reflecting adjustments representing the movement
in the difference between the value of the Metal Bullion and the price of Currency-Hedged Metal Securities is set out in note 16 to the financial
statements.
2
There are no items of Other Comprehensive Income, therefore the (Loss)/ Profit for the Year also represented the Total Comprehensive (Expense)/
Income for the Year.
The notes on pages 21 to 38 form part of these financial statements
www.wisdomtree.eu- 17 -
Year ended
31 December
Year ended
31 December
WisdomTree Hedged Metal Securities Limited
Statement of Financial Position
As at 31 December 2025
20242025
USDUSDNotes
Assets
7Metal Bullion Exposure
4,521,575,884
2,005,304,859
9Metal Bullion on Loan
1,675,840
1,668,163
7Amount Receivable on Metal Bullion Awaiting Settlement
7,985,863
-
5Metal Bullion Held in Respect of Fees
796,402
427,171
6Trade and Other Receivables
13,984
3,147
4,532,047,973Total Assets
2,007,403,340
Liabilities
8Currency-Hedged Metal Securities
4,490,449,978
2,006,152,381
8Amount Payable on Securities Awaiting Settlement
7,985,863
-
9Overdraft Facility
1,675,840
1,668,163
10Trade and Other Payables
810,383
430,315
4,500,922,064Total Liabilities
2,008,250,859
Equity
11Stated Capital
3
3
Revaluation Reserve
31,125,906
(847,522)
31,125,909Total Equity
(847,519)
4,532,047,973Total Equity and Liabilities
2,007,403,340
Vinod Rajput
Director
As at
31 December
As at
31 December
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
17
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 21 to 38 form part of these financial statements
www.wisdomtree.eu- 18 -
WisdomTree Hedged Metal Securities Limited
Statement of Changes in Equity
For the year ended 31 December 2025
TotalRevaluationRetainedStated
EquityReserveEarningsCapital
USDUSDUSDUSDNotes
Balance at 1 January 2024
3 - (1,139,599) (1,139,596)
16 - 292,077 - 292,077
Transfer to Revaluation Reserve - (292,077) 292,077 -
3 - (847,522) (847,519)
Balance at 1 January 2025 3 - (847,522) (847,519)
- 31,973,428 - 31,973,428
Transfer to Revaluation Reserve 16
- (31,973,428) 31,973,428 -
3 - 31,125,906 31,125,909
3
A non-statutory and non-GAAP Statement of Changes in Equity reflecting adjustments representing the difference between the value of Metal
Bullion and the price of Currency-Hedged Metal Securities is set out in note 16 to the Financial Statements.
The notes on pages 21 to 38 form part of these financial statements
www.wisdomtree.eu- 19 -
Profit and Total Comprehensive Income for the Year
Balance at 31 December 2025
3
Balance at 31 December 2024
3
Profit and Total Comprehensive Income for the Year
WisdomTree Hedged Metal Securities Limited
Statement of Cash Flows
For the year ended 31 December 2025
20242025
Notes
USDUSD
31,973,428Profit for the Year
292,077
Non-cash Reconciling Items
7
(1,760,006,607)
(341,150,371)
8
1,728,033,179
340,858,294
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 -
The notes on pages 21 to 38 form part of these financial statements
www.wisdomtree.eu- 20 -
Currency-Hedged Metal Securities are issued through a direct transfer of Metal Bullion from the Authorised Participants to the Custodian or
redeemed by the direct transfer of Metal Bullion by the Custodian to the Authorised Participants. Metal Adjustment Contracts are converted into
Metal Bullion by the direct transfer of Metal Bullion between the Custodian and the FX Counterparty. As such the Company is not a party to any
cash transactions. The creations and redemptions of Currency-Hedged Metal Securities and additions and disposals of Metal Bullion, which are
non-
cash transactions for the Company, are disclosed in notes 7 and 8 to the financial statements in the reconciliation of opening to closing Currency-
Hedged Metal Securities and Metal Bullion and Metal Adjustment Contracts.
Change in Contractual and Fair Value of Metal Bullion
and Metal Adjustment Contracts
Change in Fair Value of Currency-Hedged Metal
Securities
Year ended
31 December
Year ended
31 December
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 Metal 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 and the creation and redemption fees earned (the
“ManJer Fee”). The Metal Bullion in respect of the ManJer Fee and Hedging Fee is transferred by the Trustee from the Company’s custodian
accounts to ManJer’s custodian accounts (and ManJer transfers the Metal Bullion in respect Hedging Fee to the FX Counterparty). In addition,
amounts in respect of the creation and redemption fees are transferred directly from the Authorised Participants to ManJer and there are no cash
flows through the Company.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements
For the year ended 31 December 2025
General Information1.
The Company is entitled to:
(1)
(2)
a management fee and a hedging fee calculated by reducing the Metal Entitlement of each class of Currency-Hedged Metal Security on a daily
basis by an agreed amount (the “Management Fee” and the “Hedging Fee”); and
creation and redemption fees on the issue and redemption of the Currency-Hedged Metal Securities.
The Hedging Fee income is matched by an equivalent expense payable to the FX Counterparty. In addition, 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 issuance of Currency-Hedged Metal Securities. In return for these services, the Company pays ManJer an
amount equal to the Management Fee and the creation and redemption fees earned (the “ManJer Fee”). As a result, the Company recognises a
result before fair value movements of nil for each period.
www.wisdomtree.eu- 21 -
WisdomTree Hedged Metal 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 metal securities (“Currency-Hedged Metal Securities”). Currency-
Hedged Metal Securities allow investors to gain a currency hedged exposure to the precious metals market without needing to take physical
delivery of the physical metal or enter into currency hedge transactions. It also allows investors to buy and sell that 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. Each
Currency-Hedged Metal Security is denominated in a specified currency and is backed by physical metal (“Metal Bullion”) which is held in
custody by designated custodians, supported by one or more Metal Adjustment Agreements (and “Metal Adjustment Contracts” entered into
pursuant thereto) with one or more FX Counterparties (currently the only FX Counterparty is Morgan Stanley & Co. International plc (“Morgan
Stanley”)) which provide a currency hedging overlay.
No creation or redemption fees are payable to the Company when investors trade in the Currency-Hedged Metal Securities on a listed market
such as the London Stock Exchange. Creation and redemption fees may also be waived for certain approved persons where applicable.
The Currency-Hedged Metal Securities are secured on an amount of Metal Bullion and Metal Adjustment Contracts equivalent to the
entitlement in respect of each Currency-Hedged Metal Security (referred to as the “Metal Entitlement”) which is calculated in accordance with
an agreed formula published in the Prospectus. The Company holds Metal Bullion and enters into Metal Adjustment Contracts to support the
Currency-Hedged Metal Securities as determined by the Metal Entitlement. The Company does not make gains from trading in the underlying
Metal Bullion and Metal Adjustment Contracts. As a result (and with the exception of the impact of applicable fees), from a commercial
perspective gains and losses in respect of Metal Bullion and Metal Adjustment Contracts will always be offset by a corresponding loss or gain
on the Currency-Hedged Metal Securities and therefore commercially the Company does not retain any net gains or losses or net risk exposures.
However, the difference in valuation between Metal Bullion and Metal Adjustment Contracts and Currency-Hedged Metal 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 Metal Securities and transfer of the corresponding Metal Bullion. Further details are disclosed within the
Accounting Policies and in note 16 to the Financial Statements, with additional information regarding the risks of the Company disclosed in
note 13 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 16 of the Financial Statements to reflect the economic results of the Company
through the reversal of the difference in valuation between Metal Bullion and Metal Adjustment Contracts and Currency-Hedged Metal
Securities given the gain or loss would be reversed on a subsequent redemption of the Currency-Hedged Metal Securities and transfer of the
corresponding Metal Bullion, 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 active trading or management of Metal Bullion and Metal Adjustment Contracts is required because
the Company only receives or delivers Metal Bullion on the issue and redemption of Currency-Hedged Metal Securities, and only holds Metal
Bullion and enters into Metal Adjustment Contracts to support the Currency-Hedged Metal Securities.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
Material Accounting Policy Information2.
The material accounting policies of the Company are described below.
Basis of Preparation
Critical Accounting Estimates and Judgements
Significant Judgements
The key accounting judgements required to prepare these financial statements are:
1.
2.
Going Concern
The presentation of financial statements in conformity with IFRSs 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.
This conclusion is based on the fact that assets are reported at fair value under IFRS, and as set out in note 13 are categorised as Level 2 of the
fair value hierarchy due to the use of observable, verifiable inputs and third party information sources. The liabilities are valued utilising listed
market prices at the period 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 financial statements 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 Board of Directors (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.
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 16 to the financial statements.
The determination of the appropriate accounting policy to be applied to Metal Bullion.
Under IFRS, there is no standard treatment for the classification of physical metals (as they do not meet the definition of a financial asset, cash,
inventory or property, plant or equipment) therefore the election of how to treat physical metals is left to some interpretation for companies
which hold these assets. The Metal Bullion is held to provide the security holders with the exposure to changes in the fair value of Metal
Bullion and therefore the Directors consider that carrying the Metal Bullion at fair value through profit or loss, consistent with the treatment
that would be applicable to a financial instrument, reflects the objectives and the purpose of holding the asset.
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 directors do not consider that any significant estimates have been applied in the preparation of these financial statements.
www.wisdomtree.eu- 22 -
The nature of the Company’s business dictates that the outstanding Currency-Hedged Metal 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 Metal Securities will always coincide with the transfer of an equal amount (in value)
of Metal Bullion, 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 Metal Bullion are held to support Currency-Hedged Metal
Securities, any deficit or surplus reported on unrealised positions would be reversed on a subsequent redemption of the Currency-Hedged Metal
Securities and the related cancellation of Metal Bullion. 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 Metal can be managed in accordance
with the terms of the applicable Prospectus. The directors continue to monitor price changes impacting the Metal Bullion Exposure. 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. 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 Metal Bullion Exposure 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 Metal Securities Limited
Notes to the Financial Statements (continued)
For the 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:
•
•
•
•
Currency-Hedged Metal Securities
i) Issue and Redemption
Financial liabilities are recognised and de-recognised on the transaction (trade) date.
ii) Classification at fair value through Profit or Loss
iii) Pricing
There were no other new standards, amendments and interpretations adopted in the current year that resulted in a significant effect on these
financial statements.
The Company has not applied the following new and revised IFRSs that have been issued but are not yet effective:
IFRS 18 - Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027)
IFRS 19 - Subsidiaries Without Public Accountability Disclosures (effective for annual periods beginning on or after 1 January 2027)
Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments (effective for annual
periods beginning on or after 1 January 2026)
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.
www.wisdomtree.eu- 23 -
A price is established in respect of each class of Currency-Hedged Metal Security for each type and currency of bullion as at the end of each
Pricing Day by reference to the spot rate for Metal Bullion as published by the LBMA and the MSPM indices published by Morgan Stanley &
Co. LLC (“Morgan Stanley”) (collectively referred to within these financial statements as the ‘Contractual Value’).
The reference price used to convert the value of the currency hedge into a quantity of Metal Bullion is the spot rate for Metal Bullion as
published by the LBMA.
Annual Improvement to IFRS Accounting Standards - Volume 11 (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 but not yet effective will have
a material impact on the financial statements of the Company in future periods.
Each time a Currency-Hedged Metal Security is issued or redeemed by the Company a corresponding amount of Metal Bullion is transferred
into or from the relevant secured account held by the Custodian. Upon initial recognition, the fair value is recorded using the latest available
fixing price published by the London Bullion Market Association (“LBMA”) applied to the underlying Metal Bullion transferred. The fair
value of each creation and redemption of Currency-Hedged Metal Securities is recorded using the price published by the LBMA on the
transaction date, and is the “Contractual Value”. The issue and redemption of Currency-Hedged Metal Securities is recorded at a value that
corresponds to the value of the Metal Bullion 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 Metal Securities and Metal Bullion and Metal Adjustment Contracts.
Currency-Hedged Metal Securities comprise a financial instrument whose redemption price is linked to the underlying Metal Bullion and Metal
Adjustment Contracts. The Currency-Hedged Metal 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.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2. Material Accounting Policy information (continued)
Currency-Hedged Metal Securities (continued)
iii) Pricing (continued)
Metal Bullion and Metal Adjustment Contracts
Metal Bullion and Currency-Hedged Metal Securities Awaiting Settlement
The reference price used to convert the value of the currency hedge into a quantity of Metal Bullion is the spot rate for Metal Bullion, as
published by LBMA. The amount receivable or payable at the reporting date is valued using the latest price published by the LBMA.
This valuation of the Metal Bullion and Metal Adjustment Contracts is equivalent to the calculated exposure represented by the Metal
Entitlement of each class of Currency-Hedged Metal Security and is referred to as the ‘Contractual Value’.
The issue and redemption of Currency-Hedged Metal Securities, and the transfer of Metal Bullion 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
Metal Bullion and the Currency-Hedged Metal Securities due to be settled is separately disclosed 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.
www.wisdomtree.eu- 24 -
As described above, under IFRS there is no standard treatment for the classification of physical metals. The Metal Bullion and Metal
Adjustment Contracts are held to provide the security holders with the exposure to changes in the fair value of Metal Bullion and Metal
Adjustment Contracts and therefore the directors consider that carrying the Metal Bullion and Metal Adjustment Contracts at fair value through
profit or loss, consistent with the treatment that would be applicable to a financial instrument, reflects the objectives and the purpose of holding
the asset.
Metal Bullion is priced on a daily basis based on the quantity of Metal Bullion held using the latest available fixing price published by the
LBMA, and is considered to be the fair value of the Metal Bullion. Also on a daily basis an amount is transferred to Metal Bullion held in
respect of the Management Fee and the Hedging Fee of each class of security.
Metal Adjustment Contracts comprise a financial instrument whose value is linked to the underlying Metal Bullion, classified as financial
assets or financial liabilities at fair value through profit or loss.
The Company holds Metal Bullion and Metal Adjustment Contracts equal to the redemption amount due to holders of Currency-Hedged Metal
Securities solely for the purposes of meeting its obligations under the Currency-Hedged Metal Securities.
IFRS 13 requires the Company to identify the principal market and to utilise the available price within that principal market. The directors
consider that the stock exchanges where the Metal Securities are listed to be the principal market and as a result the fair value of the Metal
Securities is the on-exchange price as quoted on the stock exchange demonstrating active trading with the highest trading volume. The Metal
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.
A difference arises between the value of Metal Bullion and Metal Adjustment Contracts (held to support the Currency-Hedged Metal
Securities) and Currency-Hedged Metal Securities (at market value) presented in the Statement of Financial Position. This difference is
reversed on a subsequent redemption of the Currency-Hedged Metal Securities and the transfer of the corresponding Metal Bullion.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
Material Accounting Policy Information (continued)2.
Metal Bullion Held in Respect of Fees and Fees Payable in Metal Bullion
Overdraft Facility
Metal Bullion on Loan
Other Financial Assets and Liabilities
Reserves
Management Fees and Hedging Fees are accrued by reducing the Metal Entitlement of each class of Currency-Hedged Metal Security on a
daily basis by an agreed amount. These fees are recognised in Metal Bullion, recorded at fair value through profit or loss in accordance with the
accounting judgement set out above in respect of Metal Bullion. The amount recognised at the reporting date is revalued using the latest price
published by the LBMA.
Management Fees and FX Counterparty Fees payable are also accrued based on the income accrued in accordance with the agreement with
ManJer and the FX Counterparty. These fees are payable in Metal Bullion, recorded at fair value through profit or loss to significantly reduce 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 payable at the reporting date is revalued using the latest price published by the LBMA.
The Company has entered into an overdraft agreement with the custodian in respect of each class of Currency-Hedged Metal Securities which
each allow for the loan of up to one bullion bar of gold (collectively the “Overdraft Facility”). The Overdraft Facility is denominated in ounces
of Metal Bullion, repayable in ounces of Metal Bullion equivalent to the Metal Bullion on Loan. The Overdraft Facility is recorded at the fair
value of the ounces of Metal Bullion using the latest price published by the LBMA and changes in fair value are recognised through profit or
loss.
The gold held under the Overdraft Facility (the “Metal Bullion on Loan”) is used by the Company to ensure all WisdomTree Physical Gold -
GBP Daily Hedged Securities and WisdomTree Physical Gold - EUR Daily Hedged Securities are supported by the physical holdings of gold in
allocated form. The Metal Bullion on Loan is recorded at fair value using the latest price published by the LBMA. Changes in fair value are
recognised through profit or loss.
Other financial assets and liabilities are non-derivative financial assets and liabilities including trade and other receivables and trade and other
payables (primarily Creation and Redemption Fees) 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 non-
distributable revaluation reserve as the gain or loss relating to the mis-match of accounting values is transferred to the non-distributable
revaluation reserve as the balance relates to unrealised gains and losses on Metal Bullion and Metal Adjustment Contracts (held to support the
Currency-Hedged Metal Securities) and Currency-Hedged Metal Securities, which will be reversed on a subsequent redemption of the
Currency-
Hedged Metal Securities and the related transfer of Metal Bullion and will therefore not be realised.
www.wisdomtree.eu- 25 -
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2. Material Accounting Policy Information (continued)
Income and Expenses
Management Fees and Hedging Feesi)
0.100.12WisdomTree GBP Daily Hedged Physical Gold
0.100.12WisdomTree EUR Daily Hedged Physical Gold
Up to 12 September 2025 - the management fee % Rate (p.a) was 0.15.
ii) Creation and Redemption Fees
Foreign Currency
Segmental Reporting
www.wisdomtree.eu- 26 -
Fees for the issue and redemption of Metal 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 Metal Contract Counterparties, and transferred directly to ManJer by the Metal Contract
Counterparties on a monthly basis.
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:
Management Fees and Hedging Fees are calculated by applying a fixed percentage to reduce the Metal Entitlement of each class of Currency-
Hedged Metal Securities on a daily basis in accordance with the terms of the securities issued, at the following rates:
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 Metal 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 and the creation
and redemption fees earned (the “ManJer Fee”). The Metal Bullion in respect of the Management Fee and Hedging Fee is transferred in the
form of bullion on a monthly basis (in arrears) following agreement from the Trustee from the Company’s custodian accounts directly to
ManJer (and ManJer transfers the Metal Bullion in respect of the Hedging Fee to the FX Counterparty). In addition, creation and redemption
fees are transferred directly to ManJer and there are no cash flows through the Company.
Whilst the Company has a number of different classes of Currency-Hedged Metal Securities in issue, the financial information reviewed by the
CODM is aggregated and not segregated by those different classes of Currency-Hedged Metal Securities and therefore the CODM concluded
that these components do not meet the criteria of operating segments. Furthermore the marketing of the Currency-Hedged Metal Securities is
undertaken on a centralised basis and the terms of the Currency-Hedged Metal Securities of any class rank pari passu in all respects irrespective
of stock exchange listing.
Management Fee %
Rate (p.a)
Hedging Fee %
Rate (p.a)
The change in Metal Entitlement of each class of Currency-Hedged Metal Security reduces the value of the Currency-Hedged Metal Securities.
This reduction equates to the Management Fee and Hedging Fee amount in Metal Bullion, that is recognised for that day per each Currency-
Hedged Metal Security in issue on that day. The Management Fees and Hedging Fees are accrued and recognised on a daily basis until
invoiced and settled by transfer of the Metal Bullion. The amount recognised as income is calculated by applying the average LBMA Price to
the total Management Fee and Hedging Fee accrued on a monthly basis.
The financial statements of the Company are presented in the currency in which the majority of Currency-Hedged Metal 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 year end date are translated at rates ruling at that date.
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.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
2. Material Accounting Policy Information (continued)
Segmental Reporting (continued)
Result Before Fair Value Movements3.
Result Before Fair Value Movements for the year comprised:
20242025
USDUSD
Creation and Redemption Fees
54,963
10,569
Management Fees
4,211,683
2,756,354
License Allowance
3,042,629
1,837,568
Total Income 7,309,275
4,604,491
ManJer Fees
(4,266,646)
(2,766,923)
FX Counterparty Fees
(3,042,629)
(1,837,568)
Total Operating Expenses (7,309,275)
(4,604,491)
Result Before Fair Value Movements
-
-
Audit Fees for the year amounting to GBP 33,370 will be met by ManJer (2024: GBP 39,383).
Taxation4.
Metal Bullion Held in Respect of Fees5.
20242025
USDUSD
Management Fees
434,404
256,304
Hedging Fees
361,998
170,867
796,402
427,171
Management Fees and Hedging Fees are recognised in Metal Bullion and are recorded at fair value.
As a result, the CODM determined that the Company is operating a single segment or product group, classic and longer dated Currency-
Hedged Metal Securities, and one geographical segment which is Europe. Therefore the Company discloses its results on an equivalent
aggregated form and does not provide and 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.
Year ended
31 December
Year ended
31 December
As at
31 December
As at
31 December
www.wisdomtree.eu- 27 -
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).
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
6. Trade and Other Receivables
20242025
USDUSD
Creation and Redemption Fees
13,981
3,144
Receivable from Related Party
3
3
13,984
3,147
7.
Metal Bullion Exposure
20242025
USDUSD
Metal Bullion at Fair Value
4,507,710,710
2,002,552,996
Metal Adjustment Contracts at Fair Value:
Metal Bullion Receivable
13,865,174
2,751,863
Total Metal Bullion Exposure
4,521,575,884 2,005,304,859
The amount receivable on Metal Bullion awaiting settlement is USD 7,985,863 (2024: USD Nil).
The amount payable on Metal Bullion awaiting settlement is USD Nil (2024: USD Nil).
The below reconciliation of changes in the Metal Bullion includes only non-cash changes.
20242025
USDUSD
2,005,304,859Opening Metal Bullion Exposure
1,744,440,366
Additions
2,692,926,704
337,724,158
Disposals
(1,929,407,974)
(413,416,114)
Metal Bullion Transferred to Metal Bullion Held in Respect of Fees
(7,254,312)
(4,593,922)
Change in Fair Value
1,760,006,607
341,150,371
Closing Metal Bullion Exposure
4,521,575,884 2,005,304,859
www.wisdomtree.eu- 28 -
As at
31 December
As at
31 December
As at
31 December
As at
31 December
The fair value of the receivables is equal to the carrying value. The Trade and Other Receivables are due to be recovered within 12 months of
the year end.
Change in Contractual and Fair Value of Metal Bullion and Metal Adjustment
Contracts
The Company holds Metal Bullion and Metal Adjustment Contracts to support the Currency-Hedged Metal Securities as determined by the
Metal Entitlement (which is calculated in accordance with an agreed formula published in the Prospectus). In accordance with the Metal
Adjustment Agreements, the Metal Adjustment Contracts can be converted into Metal Bullion. As a result, the Metal Bullion together with the
Metal Adjustment Contracts provides the aggregate Metal Bullion Exposure required by the Metal Entitlement of each class of Currency-
Hedged Metal Security.
As at the year end, there can be certain amounts of Metal Bullion awaiting settlement in respect of the creation or redemption of Currency-
Hedged Metal Securities with transaction dates before the year end and settlement dates in the following year:
All Metal Bullion assets have been valued using the PM fix on 30 December 2025 as published by the LBMA being the last fix prices available
for the year.
(1,760,006,607)
341,150,371
As at
31 December
As at
31 December
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
8.
Currency-Hedged Metal Securities
20242025
USDUSD
Change in Contractual Value of Currency-Hedged Metal Securities
(1,728,033,179)
(340,858,294)
Currency-Hedged Metal Securities at Fair Value
4,490,449,978
2,006,152,381
The contractual values and changes thereof during the year based on the contractual settlement values are:
20242025
USDUSD
Change in Contractual Value for the Year
(1,760,006,607)
(341,150,371)
Currency-Hedged Metal Securities at Contractual Redemption Value
4,521,575,884
2,005,304,859
The amount payable on Currency-Hedged Metal Securities awaiting settlement is USD 7,985,863 (2024: USD nil).
The amount receivable on Currency-Hedged Metal Securities awaiting settlement is USD Nil (2024: USD nil).
20242025
USDUSD
2,006,152,381Opening Currency-Hedged Metal Securities
1,745,579,965
Securities Created
2,692,926,704
337,724,158
Securities Redeemed
(1,929,407,974)
(413,416,114)
Management and Hedging Fees
(7,254,312)
(4,593,922)
Change in Fair Value
1,728,033,179
340,858,294
4,490,449,978Closing Currency-Hedged Metal Securities at Fair Value
2,006,152,381
The below reconciliation of changes in the Currency-Hedged Metal Securities, being liabilities arising from financing activities, includes only
non-cash changes.
www.wisdomtree.eu- 29 -
As at
31 December
As at
31 December
As at
31 December
As at
31 December
As at
31 December
As at
31 December
Whilst the Currency-Hedged Metal Securities are quoted on the open market, the Company’s ultimate liability relates to its contractual
obligations to issue and redeem Currency-Hedged Metal Securities in exchange for Metal Bullion and Metal Adjustment Contracts as
determined by the Metal Entitlement of each class of Currency-Hedged Metal Security on each trading day. The fair value of each creation and
redemption of Currency-Hedged Metal Securities is recorded using the price published by the LBMA on the transaction date, and is the
“Contractual Value”. The issue and redemption of Currency-Hedged Metal Securities is recorded at a value that corresponds to the value of the
Metal Bullion 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 Metal Securities and Metal Bullion and Metal
Adjustment Contracts.
The Company measures the Currency-Hedged Metal Securities at their fair value in accordance with IFRS 13 rather than at the Contractual
Value described above. The fair value is the price quoted on stock exchanges or other markets where the Currency-Hedged Metal 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:
The gain or loss on the difference between the value of the Metal Bullion and Metal Adjustment Contracts and the fair value of Currency-
Hedged Metal Securities would be reversed on a subsequent redemption of the Currency-Hedged Metal Securities and transfer of the
corresponding Metal Bullion. Refer to note 16 to the financial statements for the non-statutory and non-GAAP adjustments which reflect the
results of this reversal.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
9.
Overdraft Facility
The Company had Metal Bullion drawn under the Overdraft Facilities as follows:
Troy Ounces USD
Troy Ounces USD
389.011Gold on Loan
(1,675,840)
1,668,163638.935
(1,675,840)
1,668,163
The Metal Bullion on Loan and the Overdraft Facilities are recorded at the fair value of the Metal Bullion.
10.
Trade and Other Payables
20242025
USDUSD
ManJer Fees Payable
448,385
259,448
FX Counterparty Fees Payable
361,998
170,867
810,383
430,315
11. Stated Capital
20242025
USDUSD
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.
12. Related Party Disclosures
Fees charged by ManJer during the year:
20242025
USDUSD
ManJer Fees
4,266,646
2,766,923
As at
31 December
As at
31 December
Year ended
31 December
As at
31 December
As at
31 December
Year ended
31 December
www.wisdomtree.eu- 30 -
The Overdraft Facility, pursuant to the overdraft agreements entered into with the custodian, allows for the loan of up to one bullion bar of gold
(per class of Currency-Hedged Metal Security). The gold held under the Overdraft Facility (the “Metal Bullion on Loan”) is used by the
Company to ensure all WisdomTree Physical Gold - GBP Daily Hedged Securities and WisdomTree Physical Gold - EUR Daily Hedged
Securities are supported by holdings of gold in allocated form.
Management Fees and Hedging Fees are payable by transfer of Metal Bullion are recorded at fair value. The fair value of the remaining
payables is equal to the carrying value. The ManJer Fee and FX Counterparty Fee payable are due to be settled within 12 months of the year
end.
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”).
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.
As at 31 December 2024As at 31 December 2025
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
12. Related Party Disclosures (continued)
The following balances were due to ManJer at year end:
20242025
USDUSD
ManJer Fees Payable
448,385
259,448
At 31 December 2025, USD 3 is receivable from ManJer (2024: USD 3).
13. 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 (Secretaries) Limited do not receive separate remuneration in their capacity as directors of the Company, however Apex
Financial Services (Secretaries) Limited receives a fee from ManJer which includes services in respect of the Company, including for the
provision of directors who are employees of Apex Financial Services (Secretaries) Limited.
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 Metal
Securities and investors should refer to the most recent Prospectus for a detailed summary of the risks inherent to investing in the Currency-
Hedged Metal Securities. Any data provided should not be used or interpreted as a basis for future forecast or investment performance.
Vinod Rajput, Elisabeth Casely and Olivia Vuillemin (up to her date of resignation) are employees of Apex. During the year, Apex charged
ManJer administration fees which include the company and other entities for which the ManJer is the Manager and Apex is the
Administrator.Total fee amounting GBP 1,324,915 (31 December 2024: GBP 1,687,046) translated in USD 1,781,746 (31 December 2024:
USD 2,114,712), of which GBP 429,076 (31 December 2024: GBP 471,388) translated in USD 577,021 (31 December 2024: USD 590,885)
was outstanding at the year 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. group and Bryan Governey is European General Counsel for the WisdomTree, Inc group.
The Company's financial instruments include a number of risks to which the Company is exposed, arising from its activities including
settlement risk, credit 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 Metal 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.
- 31 -
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
13. Financial Risk Management (continued)
(a) Settlement Risk
(b) Credit Risk
www.wisdomtree.eu- 32 -
There is also a credit risk arising from the FX Counterparty to repay the FX component of the redemption price and may be affected by the
credit rating attached to the FX Counterparties (currently the only FX Counterparty is Morgan Stanley). The Company manages its credit risk
by only entering into Metal Adjustment Agreement Contracts with FX Counterparties who are believed to be creditworthy. The carrying
amounts of the Metal Adjustment Contracts best represent the maximum credit risk exposure at the Statement of Financial Position date and is
presented in note 7 to the financial statements. The Board monitors credit risk exposure including through an assessment of the credit rating for
Morgan Stanley to ensure the Company’s exposure is managed.
Amounts outstanding in respect of positions yet to settle are disclosed in notes 7 and 8 to the financial statements.
Metal Bullion held with the custodians is held either in allocated or unallocated form.
Allocated: An allocated account evidences that uniquely identifiable bars of bullion have been “allocated” to the customer and are
segregated from other metal held in the custodian’s vault. An allocated account is held in the customer’s name (which, for the Currency-
Hedged Metal Securities, means in the name of the Trustee as legal mortgagee pursuant to the Security and in its capacity as trustee for the
Security Holders). The customer has full title to the bullion held in the allocated account. As a result, allocated Bullion does not entail any
credit risk exposure to the custodian, and the credit exposure to the custodians is therefore limited to the amounts held in unallocated accounts.
The directors believe that settlement risk would only be caused by the risk of the Company’s trading counterparty not delivering Metal Bullion,
entering into Metal Adjustment Contracts or delivering Currency-Hedged Metal Securities on the settlement date. The Currency-Hedged Metal
Securities settle through the CREST system. The directors believe that this risk is mitigated as Currency-Hedged Metal Securities are not issued
until the required amount of Metal Bullion has been received in the Custodian account, and Metal Bullion is not transferred until the relevant
Currency-Hedged Metal Securities have been delivered in CREST. As a result each transaction does not settle until all parties have fulfilled
their contractual obligations.
Credit risk primarily refers to the risk that Authorised Participants, the Custodian or the FX Counterparty will default on their contractual
obligations resulting in financial loss.
The total carrying amounts of the Metal Bullion, 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 Metal Bullion, amounts
receivable awaiting settlement and trade and other receivables are detailed on the Statement of Financial Position. Credit risk is managed by the
Company by only dealing with Authorised Participants who are believed to be creditworthy. In the event the Authorised Participants fail to
complete their obligation, no Currency-Hedged Metal Securities will be created therefore the Company does not have the risk of loss of the
amount expected to be received.
Credit risk also includes custodial risk. The custodian is not required to take out insurance and neither is the Trustee. Accordingly, there is a
risk that the secured Metal Bullion could be lost, stolen or damaged and the Company would not be able to satisfy its obligations in respect of
the Currency-Hedged Metal Securities. Currently JP Morgan Chase Bank, NA is the only custodian.
Settlement risk primarily refers to the risk that an Authorised Participant, the Custodian or the FX Counterparty will default on its contractual
obligations resulting in financial loss.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
13. Financial Risk Management (continued)
(b) Credit Risk (continued)
(c) Liquidity Risk
Unallocated: Unlike bullion held in an allocated account, bullion in an unallocated account does not entitle the customer to a particular bar of
bullion and the customer’s holding is not segregated from that of other customers or the custodian. Instead, the books and records of the
custodian record that the customer is entitled to a specific amount of bullion. As the bullion is not segregated, the customer has a credit risk
exposure to the custodian. Bullion in unallocated form is easier to transfer as it simply requires an update of the custodian’s books and records
rather than movements of physical bullion and for this reason transfers in connection with creation and redemption of Currency-Hedged Metal
Securities are carried out in unallocated form.
www.wisdomtree.eu- 33 -
The Overdraft Facility is used by the Company to ensure all WisdomTree Physical Gold - GBP Daily Hedged Securities and WisdomTree
Physical Gold - EUR Daily Hedged Securities are supported by holdings of gold in allocated form, and therefore the unallocated gold account
relates to the Metal Bullion on Loan (see note 9 to the financial statement).
The Board monitors credit risk exposure, including through an assessment of the credit rating of the custodian (JP Morgan: AAA- (2024: AA-)
(Fitch, 03 June 2025) and Morgan Stanley: AA- (2024: A+) (Fitch, 21 May 2025) , to ensure the Company’s exposure is managed, and 'and is
continuing to do so more closely with a focus on any potential impact.
When Currency-Hedged Metal Securities are redeemed, the Company transfers the corresponding amount of Metal Bullion determined by the
Metal Entitlement of those Currency-Hedged Metal Securities. The value of the Metal Bullion returned will always be the same as that of the
Currency-Hedged Metal Securities being redeemed, therefore any redemption of Currency-Hedged Metal Securities would not impact the
liquidity of the Company. Furthermore, while the agreements with the FX Counterparties include limits (both daily and in the aggregate), the
Company is not obliged to issue and redeem Currency-Hedged Metal Securities in excess of those limits under the terms of the Metal
Adjustment Agreement. Consequently, the Company has not presented any quantitative information in respect of liquidity risk.
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. Liquidity risk in respect of payables
related to expenses is reduced by the Management Fee and the Hedging Fee are secured by the Company on a daily basis, in order for the
related ManJer expense accumulated (for the month, in arrears) to be settled (in Metal Bullion) once invoiced, and amounts in respect of the
creation and redemption fees are transferred from the relevant counterparties directly to ManJer and there are no related cash flows through the
Company. Each class of Currency-Hedged Metal 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 Metal Bullion and Metal Adjustment Contracts (held to support
the Currency-Hedged Metal Securities) and not to the Metal Bullion and Metal Adjustment Contracts of any other class of Currency-Hedged
Metal Security or to the Company, therefore limiting the credit risk of the Company in connection with the issue of the Currency-Hedged Metal
Securities.
The Currency-Hedged Metal 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, with the transaction settling through the transfer of the required Metal Bullion two days after the
transaction date, or in the case of a compulsory redemption by either transferring the required Metal Bullion, or by realising the Metal Bullion
for cash and settling the cash proceeds to holders on a short-term basis. Generally, Authorised Participants can submit applications and
redemptions directly with the Company.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
13. Financial Risk Management (continued)
(d) Capital Management
(e) Sensitivity Analysis
(f) Market Risk
www.wisdomtree.eu
As a result, the Company’s contractual and economic liability in connection with the issue and redemption of Currency-Hedged Metal
Securities is matched by movements in the corresponding Metal Bullion. Whilst sensitivity analysis could be performed on this mismatch, the
Company does not ultimately have economic exposure to the on-exchange price, but to the contractual liability of the Currency-Hedged Metal
Securities and consequently, 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.
- 34 -
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.
The Company’s principal activity is the issue and listing of Currency-Hedged Metal Securities. These Currency-Hedged Metal Securities are
issued and redeemed as demand requires. The Company holds a corresponding amount of Metal Bullion and Metal Adjustment Contracts
which matches the total contractual liability of the Currency-Hedged Metal 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 and creation and redemption fees earned.
As all Currency-Hedged Metal Securities in issue are supported by an equivalent amount of Metal Bullion and Metal Adjustment Contracts
held, 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 Metal Securities.
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 rights and liabilities in respect of Metal Securities relate to its contractual obligations to issue and redeem Currency-Hedged
Metal Securities in exchange for Metal Bullion as determined by the Gold Entitlement on each trading day. The fair value of each creation and
redemption of Currency-Hedged Metal Securities is recorded using the price published by the LBMA on the transaction date. 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 16 to the
financial statements this mismatch is reversed on the redemption of Currency-Hedged Metal Securities.
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 Metal Bullion and Metal Adjustment Contracts (held to support the Currency-Hedged Metal Securities) and Currency-Hedged
Metal Securities, which are reversed on a subsequent redemption of the Currency-Hedged Metal Securities and the related transfer of Metal
Bullion 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.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
13. Financial Risk Management (continued)
(f) Market Risk (continued)
i) Price Risk
Movement
%20242025
Gold Bullion
4,367.80
67.29%2,610.85
ii) Interest Rate Risk
iii) Currency Risk
(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 value of the Company’s liability in respect of the Currency-Hedged Metal Securities fluctuates according to the value of the Metal Bullion
and Metal Adjustment Contracts. The risk of such change in price is managed by the Company holding Metal Bullion and Metal Adjustment
Contracts in the same quantity as its liability. Whilst the Currency-Hedged Metal Securities are quoted on the open market, the Company’s
ultimate liability relates to its contractual obligations to issue and redeem Currency-Hedged Metal Securities in exchange for Metal Bullion as
determined by the Metal Entitlement on each trading day. The Company measures the Currency-Hedged Metal 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 Metal Bullion and Metal Adjustment Contracts and the fair value of Currency-Hedged Metal Securities would be reversed on a
subsequent redemption of the Currency-Hedged Metal Securities and transfer of the corresponding Metal Bullion. Refer to note 8 to the
financial statements for the further details regarding fair values.
Therefore, the Company bears no residual financial risk from a change in the price of Metal Bullion and Metal Adjustment Contracts.
Furthermore, the impact of price sensitivity is considered immaterial to these financial statements.
However, there is an inherent risk from the point of view of investors as the values of Metal Bullion and Metal Adjustment Contracts and the
value of the Currency-Hedged Metal Securities may vary widely due to, amongst other things, changes in exchange rates, changing supply or
demand for Metal Bullion, government and monetary policy or intervention, interest rate levels and global or regional political, economic or
financial events.
The market price of Currency-Hedged Metal Securities is (and will remain) a function of supply and demand amongst investors wishing to buy
and sell Currency-Hedged Metal Securities and the bid-offer spread that the market makers are willing to quote. This is highlighted further in
note 16 to the financial statements, and below under the Fair Value Hierarchy.
www.wisdomtree.eu- 35 -
As described above, Currency-Hedged Metal Securities provide investors with exposure to precious metals. Excluding the impact of
Management Fees, the value each of the Metal Securities also dropped in line with the changes in the underlying Metal Bullion values:
LBMA Price USD
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 Metal
Securities are matched economically by corresponding losses or gains attributable to the Metal Bullion and Metal Adjustment Contracts.
The Company does not have significant exposure to interest rate risk as the Metal Bullion, the Metal Adjustment Contracts and the Currency-
Hedged Metal Securities do not bear any interest.
The Company has exposure to currency risk as the Currency-Hedged Metal Securities are priced in US Dollars and hedged against exchange
rate movements between the US Dollar and the Euro or Pound Sterling.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
13. Financial Risk Management (continued)
(g) Fair Value Hierarchy (continued)
The categorisation of the Company’s assets and (liabilities) are as shown below:
20242025
USDUSD
Level 1
Currency-Hedged Metal Securities
(4,490,449,978)
(2,006,152,381)
Level 2
Metal Bullion
4,507,710,710
2,002,552,996
Metal Adjustment Contracts
13,865,174
2,751,863
4,521,575,884
2,005,304,859
14. Ultimate Controlling Party
15. Subsequent events
As disclosed in notes 2 and 9 to the financial statements, the Company holds Metal Bullion on Loan under the Overdraft Facility, which are
recorded at fair value using the latest price published by the LBMA. Therefore, Metal Bullion on Loan is classified as a Level 2 asset, as the
value is calculated using third party pricing sources, and the Overdraft Facilities are classified as a Level 2 liability as the value is calculated
using third party pricing sources supported by observable, verifiable inputs.
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. The Company is required to utilise the available on-market price as the Currency-Hedged Metal Securities are quoted
and actively traded on the open market. Therefore Currency-Hedged Metal Securities are classified as Level 1 financial liabilities.
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.
www.wisdomtree.eu- 36 -
Fair Value as at 31
December
Fair Value as at 31
December
The Currency-Hedged Metal Securities and Metal Bullion together with the Metal Adjustment Contracts are recognised at fair value upon
initial recognition and revalued to fair value in line with the Company’s accounting policy. There are no assets or liabilities classified in Level
3.
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. There
were no transfers or reclassifications between Level 1 and Level 2 for any of the assets or liabilities during the year.
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.
The Company holds Metal Bullion and Metal Adjustment Contracts to support the Currency-Hedged Metal Securities as determined by the
Metal Entitlement (which is calculated in accordance with an agreed formula published in the Prospectus). The Company has contractual
obligations to issue and redeem Currency-Hedged Metal Securities in exchange for Metal Bullion as determined by the Metal Entitlement of
each class of Metal Security on each trading day. The fair value of each creation and redemption of each type and currency of bullion is
calculated by reference to the spot rate for Metal Bullion as published by the LBMA and the MSPM indices published by Morgan Stanley.
Therefore, Metal Bullion and Metal Adjustment Contracts are classified as Level 2 assets (or liabilities), as the value is calculated using third
party pricing sources supported by observable, verifiable inputs.
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
16. Non-GAAP and Non-Statutory Information
The mismatched accounting values are as shown below:
20242025
USDUSD
Change in Contractual and Fair Value of Metal Bullion and Metal Adjustment Contracts
1,760,006,607
341,150,371
Change in Contractual Redemption Value of Currency-Hedged Metal Securities
(1,728,033,179)
(340,858,294)
31,973,428
292,077
Furthermore, each class of Currency-Hedged Metal Security is issued under limited recourse arrangements whereby the holders have recourse
only to the relevant Metal Bullion and Metal Adjustment Contracts (held to support the Currency-Hedged Metal Securities) and not to the
Metal Bullion and Metal Adjustment Contracts of any other class of Currency-Hedged Metal Security or to the Company. As a result the
Company does not make gains from trading in the underlying Metal Bullion and Metal Adjustment Contracts (held to support the Currency-
Hedged Metal Securities) and, from a commercial perspective (with the exception of the impact of applicable fees) gains and losses in respect
of Metal Bullion and Metal Adjustment Contracts (held to support the Currency-Hedged Metal Securities) will always be offset by a
corresponding loss or gain on the Currency-Hedged Metal Securities and the Company does not retain any net gains or losses.
As a result of the mis-match in the accounting valuation of Metal Bullion and Metal Adjustment Contracts (held to support the Currency-
Hedged Metal Securities) and Currency-Hedged Metal Securities (as disclosed in notes 7 and 8 to the financial statements) the profits and
losses and 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 Metal Bullion and Metal Adjustment Contracts
and the price of Currency-Hedged Metal Securities. The Statement of Changes in Equity also reflects the fair value movements on the Metal
Bullion and Metal Adjustment Contracts (held to support the Currency-Hedged Metal Securities) and the Currency-Hedged Metal Securities.
These gains or losses on the difference between the value of the Metal Bullion and Metal Adjustment Contracts (held to support the Currency-
Hedged Metal Securities) and the price of Currency-Hedged Metal Securities would be reversed on a subsequent redemption of the Currency-
Hedged Metal Securities and transfer of the corresponding Metal Bullion.
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 Metal Securities, together with those gains or losses being transferred to a separate reserve
which is deemed non distributable.
Year ended 31
December
Year ended 31
December
www.wisdomtree.eu- 37 -
WisdomTree Hedged Metal Securities Limited
Notes to the Financial Statements (continued)
For the year ended 31 December 2025
16. Non-GAAP and Non-Statutory Information (continued)
(a) Non-GAAP and Non-Statutory Statement of Profit or Loss and Other Comprehensive Income
20242025
USDUSD
Income
7,309,275
4,604,491
Expenses
(7,309,275)
(4,604,491)
Result Before Fair Value Movements
-
-
Change in Fair Value of Metal Bullion and Metal Adjustment Contracts
1,760,006,607
341,150,371
Change in Fair Value of Currency-Hedged Metal Securities
(1,728,033,179)
(340,858,294)
Profit for the Year
31,973,428
292,077
(31,973,428)
(292,077)
Adjusted Result
-
-
(b) Non-GAAP and Non-Statutory Statement of Changes in Equity
USDUSD USD USD USD
3 - (1,139,599) (1,139,596)
3
- 292,077 - 292,077
292,077
Transfer to Revaluation Reserve - (292,077) 292,077 -
-
3 - (847,522) (847,519)
3
3 - (847,522) (847,519)
3
- 31,973,428 - 31,973,428
31,973,428
-(31,973,428) 31,973,428Transfer to Revaluation Reserve
-
- 31,125,906 31,125,9093
3
Revaluation
Reserve
Year ended 31
December
Year ended 31
December
Balance at 1 January 2024
Total
Equity
Adjusted
Total Equity
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-
(292,077)
Balance at 1 January 2025
Profit and Total Comprehensive Income for the Year
Adjustment from Market Value to Contractual
Value (as set out in the Prospectus) of Gold
Securities
-
-
-
(31,973,428)
-
Balance at 31 December 2024
3
Balance at 31 December 2025
3
Profit and Total Comprehensive Income for the Year
Adjustment from Market Value to Contractual
Value (as set out in the Prospectus) of Gold
Securities
-
-
-
Adjustment from Market Value to Contractual Value (as set out in the Prospectus)
of Gold Securities
Share
Capital
Retained
Earnings