Registered number:
For the year ended
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Global X Management Company (UK) Limited
Company Information
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Global X Management Company (UK) Limited
Contents
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Global X Management Company (UK) Limited
Strategic report
For the year ended 31 December 2024
The directors have pleasure in presenting the report and financial statements of Global X Management Company (UK) Limited for the year ended 31 December 2024.
Global X Management Company (UK) Limited is authorized and regulated by the Financial Conduct Authority. The Company monitors performance of the business primarily through monitoring of expenses. The Company generates its revenue via a sub-service agreement with its parent, Global X Management Company, Inc.
The Company’s activities expose it to financial risks. To protect the Company against the adverse effects of
financial risks, the Company follows a risk management framework approved by the Board. This risk is also mitigated since the parent, Global X Management Company, Inc. provides continuous support to the Company and is adequately funded to provide this support on an ongoing basis. With full recognition that Market risk is shared with an affiliate (and client)- instances where product returns fall or severely impaired may affect the size / integrity and of the UK operation. From an operational perspective, the key risk relates to the potential for non-compliance with the regulation issued by the Financial Conduct Authority that could lead to the Company being subject to a fine or a restriction on authorised activities. This is managed through regular review of the Group’s compliance framework by Senior Management.
The profit for the year, after taxation, amounted to $1,218,402 (2023 - loss $1,304.732).
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Global X Management Company (UK) Limited
Strategic report (continued)
For the year ended 31 December 2024
The Company is a sub-delegate of a Group affiliate Global X Management Company LLC and performs portfolio management activities through this delegation for the Global X ETFs ICAV which is domiciled in Ireland and managed by a further affiliate Global X Management Company (Europe) Limited. The AUM of the Global X ETFs ICAV is growing on a year to year basis due to new product launches and increasing market penetration in key locations.
Directors' statement of compliance with duty to promote the success of the Company
This statement is intended by the Board of Directors of Global X Management Company (UK) Limited to set out how they have approached and met their responsibilities under s172(1)(a-f) of the Companies Act 2006 in the financial period ending 31 December 2024.
The directors, both individually and collectively, consider they have acted in good faith to promote the success of the Company for the benefit of its stakeholders as a whole (having regard to the matters set out in s172 of the Act) in the decisions taken in the period. In particular:
∙To ensure the directors take account of the likely consequences of their decision in the long term, they receive regular and timely information on all the key areas of the business including financial performance, operational matters, and review of distribution activities.
∙The Company’s employees are fundamental to the success of the business. The directors understand that it is critical to engage with and understand their views and to ensure that all employee’s interests are considered. To strengthen employee engagement, the directors promote and encourage all employees to raise any concerns to senior management without hesitations.
∙The Company performs various advisory and portfolio management activities for affiliates within the Global X Group. The Company strives to continually improve and strengthen its services for the mutual benefit for all its stakeholders and to maintain its reputation for high quality services and high standard of business conduct.
∙The directors’ intentions are to behave responsibly toward all stakeholders and treat them fairly, so that they all benefit from the long-term success of the company.
The directors have overall responsibility for determining the Company’s purpose, values and strategy and for ensuring high standards of governance. Throughout 2025, the directors will continue to review and challenge how the Company can improve engagement with its employees and other stakeholders.
This report was approved by the board and signed on its behalf.
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Global X Management Company (UK) Limited
Directors' report
For the year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to $1,218,402 (2023 - loss $1,304,732).
The Directors do not recommend payment of any dividends (2023 - $Nil).
The directors who served during the year were:
The directors expect the main source of income of the Company to continue to be its provision of services to Global X Management Company, Inc. and its subsidiaries.
The Board consider that they have adhered to the requirements of section 172 of the Companies Act 2006 (the “Companies Act”) and have, in good faith, acted in a way that they consider would be most likely to promote the success of the Company for the benefit of its shareholder as a whole and, in doing so, have had regard to and recognised the importance of considering all stakeholder and other matters (as set out in s.172(1)(a-f) of the Companies Act) in its decision making.
The Directors are entitled to request from the Company all such information they may reasonably require in order to be able to perform their duties as directors, including professional advice from an independent advisor at the Company’s expense. It is standard Company practice to demonstrate stakeholders have been considered. The relevance of each stakeholder group may vary by reference to the issue in question, so the Board seeks to understand the needs of each stakeholder group and any potential conflicts as part of its decision making.
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Global X Management Company (UK) Limited
Directors' report (continued)
For the year ended 31 December 2024
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The auditor, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Global X Management Company (UK) Limited
Independent auditor's report to the members of Global X Management Company (UK) Limited
We have audited the financial statements of Global X Management Company (UK) Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 in the United Kingdom, including the Financial Reporting Council's Ethical Standard 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.
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.
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 of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report 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 our 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 this other information, we are required to report that fact.
We have nothing to report in this regard.
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Global X Management Company (UK) Limited
Independent auditor's report to the members of Global X Management Company (UK) Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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Global X Management Company (UK) Limited
Independent auditor's report to the members of Global X Management Company (UK) Limited (continued)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud Based on our understanding of the company and the industry in which it operates, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety and employment law. We considered the extent to which non-compliance might have a material effect on the finance statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indicators of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue or expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
∙Assessment of identified fraud risk factors; and
∙Identifying and assessing the design effectiveness of controls that management have in place to prevent and detect fraud; and
∙Challenging assumptions and judgments made by management in its significant accounting estimates; and
∙Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
∙Review of significant and unusual transactions and evaluation of underlying financial rationale supporting the transactions; and
∙Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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Global X Management Company (UK) Limited
Independent auditor's report to the members of Global X Management Company (UK) Limited (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions in the financial statements the audit evidence obtained up to date of or Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and weather the financial statements represent the underlying transactions and vents in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Horsham
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Global X Management Company (UK) Limited
Statement of comprehensive income
For the year ended 31 December 2024
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Global X Management Company (UK) Limited
Registered number: 13740316
Balance sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 22 form part of these financial statements.
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Global X Management Company (UK) Limited
Statement of changes in equity
For the year ended 31 December 2024
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Global X Management Company (UK) Limited
Statement of cash flows
For the year ended 31 December 2024
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
Global X Management Company (UK) Limited is a private company limited by share capital, incorporated in England and Wales (Registered number: 13740316)
The address of the registered office is 77 Coleman Street, London, EC2R 5BJ. The financial statements are presented in dollars and rounded to the nearest $1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
At the balance sheet date, the company has net assets of $5,956,715 (2023 - net liabilities $307,287) and amounts due to group undertakings of $10,285,842 (2023 - $45,695,609). The directors have obtained written confirmation from Global X Management Company, Inc, (the parent company) that they, and the group of companies headed by them, will continue to support the company for a period of at least 12 months from the date of approval of the financial statements. The directors, therefore, consider it reasonable for the financial statements to be prepared on a going concern basis.
Functional and presentation currency
Transactions and balances
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding value added tax. The following criteria must also be met before revenue is recognised:
Rendering of service Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
Analysis of turnover by country of destination:
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
11.Taxation (continued)
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
On 5 March 2024 the company issued 400,000,000 new ordinary shares with the nominal value of $5,045,600.
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held seperatley from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to $364,352 (2023: $284,540). Contributions totalling $Nil (2023: $Nil) were payable to the fund at the balance sheet date and are included in creditors.
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Global X Management Company (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
The company's immediate parent is Global X Management Company Inc, incorporated in the United States of America.
The most senior parent entity producing publicly available financial statements is Mirae Asset Global Investments Co. Ltd, a company incorporated in the Republic of South Korea. These group financial statements are available from its registered office at 13F, Tower 1, 33, Jong-ro, Jongno-gu, Seoul, 03159, Republic of South Korea. This is the smallest and largest group of which this company is a member and in which this company has been included within the group financial statements. The ultimate controlling party is Hyeon-Joo Park, the controlling shareholder of Mirae Asset Global Investments Co. Limited.
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