1695 小麦ＥＴＦ 2020-05-18 08:30:00
令和元年12月期 決算短信（平成31年1月1日～令和元年12月31日) [pdf]
令和元年12月期 決算短信（平成31年1月1日～令和元年12月31日）
令和2年5月18日
上場取引所 東京証券取引所
銘柄名 コード番号 連動対象指標 主要投資資産 売買単位
WisdomTree ブロード上場投資信託 ブルームバーグ総合商品指数
1684 （注2） 10
(注1) (注1)
WisdomTree エネルギー上場投資信託 ブルームバーグエネルギー商品指数 天然ガス、原油、ガソリ
1685 10
(注1) (注1) ン、灯油
WisdomTree 産業用金属上場投資信託 ブルームバーグ産業用金属商品指数 アルミニウム、銅、ニッ
1686 10
(注1) (注１) ケル、亜鉛
WisdomTree 農産物上場投資信託(注 ブルームバーグ農産物商品指数(注
1687 （注3） 10
1) １)
WisdomTree 穀物上場投資信託 ブルームバーグ穀物商品指数 小麦、とうもろこし、大
1688 10
(注1) (注１) 豆
ブルームバーグ天然ガス商品指数
WisdomTree 天然ガス上場投資信託 1689 天然ガス 100
(注１)
ブルームバーグ原油商品指数
WisdomTree WTI原油上場投資信託 1690 WTI原油 10
(注１)
ブルームバーグガソリン商品指数
WisdomTree ガソリン上場投資信託 1691 ガソリン 10
(注1)
WisdomTree アルミニウム上場投資信 ブルームバーグアルミニウム商品指
1692 アルミニウム 100
託 数(注１)
WisdomTree 銅上場投資信託 1693 ブルームバーグ銅商品指数(注1) 銅 10
ブルームバーグニッケル商品指数
WisdomTree ニッケル上場投資信託 1694 ニッケル 10
(注1)
ブルームバーグ小麦商品指数
WisdomTree 小麦上場投資信託 1695 小麦 100
(注1)
WisdomTree とうもろこし上場投資信 ブルームバーグとうもろこし商品指
1696 とうもろこし 100
託 数(注1)
ブルームバーグ大豆商品指数
WisdomTree 大豆上場投資信託 1697 大豆 10
(注1)
（注1） 平成26年7月1日より、連動対象指標をDJ-UBSCI提供のものからブルームバーグ提供のものに変更し、併せて銘柄名を変更
しました。
（注2） 天然ガス、WTI原油、ブレンド原油、ガソリン、灯油、アルミニウム、銅、亜鉛、ニッケル、金、銀、生体牛、赤身豚肉、
小麦、トウモロコシ、大豆、砂糖、綿花、コーヒー、大豆油
（注3） 小麦、トウモロコシ、大豆、砂糖、綿花、コーヒー、大豆油
外 国 投 資 法 人 ウィズダムツリー・コモディティ・セキュリティーズ・リミテッド
代 表 者 名 ヒラリー・ジョーンズ
管 理 会 社 ウィズダムツリー・マネジメント・ジャージー・リミテッド
https://www.wisdomtree.eu/en-gb/resource-library/prospectus-and-regulatory-reports#tab-2A942D
代 表 者 名 ヒラリー・ジョーンズ
問合せ先責任者 ＴＭＩ総合法律事務所 （中川秀宣） TEL 03-6438-5660
有価証券報告書提出予定日 令和2年6月30日提出(予定)
分配金支払い開始予定日 該当なし
Ⅰファンドの運用状況
1. 2019年12月決算期の運用状況（平成31年1月1日～令和元年12月31日）
(1)資産内訳 （百万円未満切捨て）
主要投資資産 合計（資産）
構成比
金額 金額 構成比
百万円 ％ 百万円 ％
WisdomTree ブロード上場投資信託 2019年12月決算期 17,011 (100) 17,011 (100)
(注1)
2018年12月決算期 23,010 (100) 23,010 (100)
百万円 ％ 百万円 ％
WisdomTree エネルギー上場投資信託 2019年12月決算期 3,435 (100) 3,435 (100)
(注1)
2018年12月決算期 4,106 (100) 4,106 (100)
百万円 ％ 百万円 ％
WisdomTree 産業用金属上場投資信託 2019年12月決算期 12,065 (100) 12,065 (100)
(注1)
2018年12月決算期 19,878 (100) 19,878 (100)
百万円 ％ 百万円 ％
WisdomTree 農産物上場投資信託(注 2019年12月決算期 23,589 (100) 23,589 (100)
1)
2018年12月決算期 34,199 (100) 34,199 (100)
百万円 ％ 百万円 ％
WisdomTree 穀物上場投資信託 2019年12月決算期 2,178 (100) 2,178 (100)
(注1)
2018年12月決算期 2,290 (100) 2,290 (100)
百万円 ％ 百万円 ％
WisdomTree 天然ガス上場投資信託 2019年12月決算期 4,495 (100) 4,495 (100)
2018年12月決算期 3,622 (100) 3,622 (100)
百万円 ％ 百万円 ％
WisdomTree WTI原油上場投資信託 2019年12月決算期 55,811 (100) 55,811 (100)
2018年12月決算期 54,245 (100) 54,245 (100)
百万円 ％ 百万円 ％
WisdomTree ガソリン上場投資信託 2019年12月決算期 471 (100) 471 (100)
2018年12月決算期 305 (100) 305 (100)
百万円 ％ 百万円 ％
WisdomTree アルミニウム上場投資信 2019年12月決算期 3,476 (100) 3,476 (100)
託
2018年12月決算期 7,624 (100) 7,624 (100)
百万円 ％ 百万円 ％
WisdomTree 銅上場投資信託 2019年12月決算期 24,165 (100) 24,165 (100)
2018年12月決算期 18,480 (100) 18,480 (100)
百万円 ％ 百万円 ％
WisdomTree ニッケル上場投資信託 2019年12月決算期 51,601 (100) 51,601 (100)
2018年12月決算期 45,356 (100) 45,356 (100)
百万円 ％ 百万円 ％
WisdomTree 小麦上場投資信託 2019年12月決算期 5,861 (100) 5,861 (100)
2018年12月決算期 6,801 (100) 6,801 (100)
百万円 ％ 百万円 ％
WisdomTree とうもろこし上場投資信 2019年12月決算期 2,800 (100) 2,800 (100)
託
2018年12月決算期 3,313 (100) 3,313 (100)
百万円 ％ 百万円 ％
WisdomTree 大豆上場投資信託 2019年12月決算期 1,016 (100) 1,016 (100)
2018年12月決算期 1,774 (100) 1,774 (100)
（注1） 平成26年7月1日より、連動対象指標をDJ-UBSCI提供のものからブルームバーグ提供のものに変更し、併せて銘柄名を変更
しました。
（注2） 主要投資資産は、令和2年4月1日午前零時（ロンドン時間2020年3月31日午後4時）現在のものとしてブルームバーグに
よって表示される為替レート（スポット・レート）（1米ドル＝107.955円、1ポンド＝133.901円）に基づいて円換算して
います。(以下同じ)
(2)設定・償還実績
前営業期間末 設定口数 償還口数 当営業期間末
発行済口数 発行済口数
(①) (②) (③) （①+②-③）
千口 千口 千口 千口
WisdomTree ブロード上場
投資信託 2019年12月決算期 27,052 5,039 13,238 18,853
(注1)
2018年12月決算期 43,430 17,051 33,429 27,052
千口 千口 千口 千口
WisdomTree エネルギー上 2019年12月決算期 11,193 23,178 25,792 8,578
場投資信託(注1)
2018年12月決算期 23,222 43,372 55,401 11,193
千口 千口 千口 千口
WisdomTree 産業用金属上 2019年12月決算期 17,104 32,916 40,254 9,767
場投資信託(注1)
2018年12月決算期 12,592 45,201 40,689 17,104
千口 千口 千口 千口
WisdomTree 農産物上場投 2019年12月決算期 76,872 36,303 60,151 53,024
資信託(注1)
2018年12月決算期 58,057 67,958 49,143 76,872
千口 千口 千口 千口
WisdomTree 穀物上場投資
信託 2019年12月決算期 6,910 420 559 6,771
(注1)
2018年12月決算期 6,536 2,635 2,261 6,910
千口 千口 千口 千口
WisdomTree 天然ガス上場 2019年12月決算期 955,899 2,153,387 1,102,217 2,007,070
投資信託
2018年12月決算期 1,572,719 426,629 1,043,450 955,899
千口 千口 千口 千口
WisdomTree WTI原油上場投 2019年12月決算期 72,797 110,029 125,398 57,427
資信託
2018年12月決算期 81,244 106,379 114,826 72,797
千口 千口 千口 千口
WisdomTree ガソリン上場 2019年12月決算期 142 422 409 156
投資信託
2018年12月決算期 188 477 522 142
千口 千口 千口 千口
WisdomTree アルミニウム 2019年12月決算期 24,501 43,275 56,244 11,532
上場投資信託
2018年12月決算期 40,973 42,001 58,473 24,501
千口 千口 千口 千口
WisdomTree 銅上場投資信 2019年12月決算期 6,927 13,446 11,738 8,636
託
2018年12月決算期 8,530 13,283 14,886 6,927
千口 千口 千口 千口
WisdomTree ニッケル上場 2019年12月決算期 40,759 10,956 16,800 34,915
投資信託
2018年12月決算期 9,958 40,149 9,348 40,759
千口 千口 千口 千口
WisdomTree 小麦上場投資 2019年12月決算期 102,198 33,485 53,286 82,397
信託
2018年12月決算期 158,778 128,339 184,919 102,198
千口 千口 千口 千口
WisdomTree とうもろこし 2019年12月決算期 38,418 27,077 30,769 34,725
上場投資信託
2018年12月決算期 46,816 53,594 61,993 38,418
千口 千口 千口 千口
WisdomTree 大豆上場投資 2019年12月決算期 923 672 1,052 542
信託
2018年12月決算期 715 1,786 1,578 923
（注1） 平成26年7月1日より、連動対象指標をDJ-UBSCI提供のものからブルームバーグ提供のものに変更し、併せて銘柄名を変更
しました。
（注2） 上記の設定・償還実績については、営業期末時点の未決済上場投信を含んでいません。
(3)基準価額
売買単位当たり基準価額
総資産 負債（注） 資産 （（③/当営業期間末
発行済口数）×売買単位）
百万円 百万円 百万円 円
WisdomTree ブロー
ド上場投資信託 2019年12月決算期 17,011 - 17,011 9,023
(注1)
2018年12月決算期 23,010 - 23,010 8,505
百万円 百万円 百万円 円
WisdomTree エネル
ギー上場投資信託 2019年12月決算期 3,435 - 3,435 4,004
(注1)
2018年12月決算期 4,106 - 4,106 3,668
百万円 百万円 百万円 円
WisdomTree 産業用
金属上場投資信託 2019年12月決算期 12,065 - 12,065 12,352
(注1)
2018年12月決算期 19,878 - 19,878 11,621
百万円 百万円 百万円 円
WisdomTree 農産物
2019年12月決算期 23,589 - 23,589 4,448
上場投資信託(注1)
2018年12月決算期 34,199 - 34,199 4,448
百万円 百万円 百万円 円
WisdomTree 穀物上
場投資信託 2019年12月決算期 2,178 - 2,178 32,165
(注1)
2018年12月決算期 2,290 - 2,290 33,136
百万円 百万円 百万円 円
WisdomTree 天然ガ
2019年12月決算期 4,495 - 4,495 224
ス上場投資信託
2018年12月決算期 3,622 - 3,622 378
百万円 百万円 百万円 円
WisdomTree WTI原油
2019年12月決算期 55,811 - 55,811 9,718
上場投資信託
2018年12月決算期 54,245 - 54,245 7,451
百万円 百万円 百万円 円
WisdomTree ガソリ
2019年12月決算期 471 - 471 30,168
ン上場投資信託
2018年12月決算期 305 - 305 21,450
百万円 百万円 百万円 円
WisdomTree アルミ
2019年12月決算期 3,476 - 3,476 30,146
ニウム上場投資信託
2018年12月決算期 7,624 - 7,624 31,118
百万円 百万円 百万円 円
WisdomTree 銅上場
2019年12月決算期 24,165 - 24,165 27,981
投資信託
2018年12月決算期 18,480 - 18,480 26,675
百万円 百万円 百万円 円
WisdomTree ニッケ 2019年12月決算期 51,601 - 51,601 14,779
ル上場投資信託
2018年12月決算期 45,356 - 45,356 11,128
百万円 百万円 百万円 円
WisdomTree 小麦上
2019年12月決算期 5,861 - 5,861 7,114
場投資信託
2018年12月決算期 6,801 - 6,801 6,655
百万円 百万円 百万円 円
WisdomTree とうも
2019年12月決算期 2,800 - 2,800 8,064
ろこし上場投資信託
2018年12月決算期 3,313 - 3,313 8,625
百万円 百万円 百万円 円
WisdomTree 大豆上
2019年12月決算期 1,016 - 1,016 18,713
場投資信託
2018年12月決算期 1,774 - 1,774 19,221
（注1） 平成26年7月1日より、連動対象指標をDJ-UBSCI提供のものからブルームバーグ提供のものに変更し、併せて銘柄名を変更
しました。
（注2） 売買単位は、総合商品指数、エネルギー商品指数、産業用金属商品指数、農産物商品指数、原油、ガソリン、銅、
ニッケル、及び大豆については10口、穀物商品指数、天然ガス、アルミニウム、小麦及びとうもろこしについて
は100口となります。
（注3） 商品上場投資信託1単位当たりの資産は、商品上場投資信託1単位当たりの基準価額に基づいたものとなってい
ます。商品上場投資信託1単位当たりの基準価額は、相応する商品上場投資信託1単位当たりの商品契約の価
格に相当するものとなります。各々の商品上場投資信託の裏付けとなっている商品契約の総価値は、相応する商
品上場投資信託の残高と等しくなります。このために、純資産額は零となり、総資産額は、商品上場投資信託の
裏付けとなる商品契約の総額と等しくなります。
［参考］外国投資法人の財政状態
総資産額 総負債額 投資主持分額
百万円 百万円 百万円
2019年12月決算期 298,702 300,008 -1,305
2018年12月決算期 336,938 340,083 -3,145
(注1) 商品上場投資信託は、期限の定めのない、請求権の限定されている発行体による債務です。全出資口は、親会社
であるイーティーエフ・セキュリティーズ・リミテッドにより保有されています。投資主持分額は、総資産額か
ら総負債額を差し引いたものです。
2. 会計方針の変更
① 会計基準等の改正に伴う変更 有・無
② ①以外の変更 有・無
ご参考： 会計基準等の改正
(a） 2019年1月1日に発効した基準、修正及び解釈指針：
以下の新規及び改訂後の基準ならびに解釈指針が当年度に適用されましたが、当財務諸表への影響はないと判断しております。
・ 国際財務報告基準(「IFRS」)第3号「企業結合」
・ IFRS第10号「連結財務諸表」
・ IFRS第16号「リース」
・ IAS第12号「法人所得税」
・ IAS第19号「従業員給付」
・ IAS第23号「借入費用」
WisdomTree Commodity Securities
Limited
Registered No: 90959
Report and Financial Statements for the
Year ended 31 December 2019
WisdomTree Commodity Securities Limited
Contents
Management and Administration 1
Directors’ Report 2-7
Statement of Directors’ Responsibilities 8
Independent Auditor’s Report 9-14
Statement of Profit or Loss and Other Comprehensive Income 15
Statement of Financial Position 16
Statement of Cash Flows 17
Statement of Changes in Equity 18
Notes to the Financial Statements 19-34
www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Management and Administration
Directors Administrator
Stuart Bell R&H Fund Services (Jersey) Limited
Christopher Foulds Ordnance House
Steven Ross PO Box 83
Peter Ziemba 31 Pier Road
St Helier
Jersey, JE4 8PW
Registered Office Registrar
Ordnance House Computershare Investor Services (Jersey) Limited
31 Pier Road Queensway House
St Helier Hilgrove Street
Jersey, JE4 8PW St Helier
Jersey, JE1 1ES
Manager Trustee
WisdomTree Management Jersey Limited The Law Debenture Trust Corporation plc
(formerly ETFS Management Company (Jersey) Fifth Floor
Limited) 100 Wood Street
Ordnance House London, EC2V 7EX
31 Pier Road United Kingdom
St Helier
Jersey, JE4 8PW
Commodity Contract Counterparty Commodity Contract Counterparty
Merrill Lynch International Citigroup Global Markets Limited
2 King Edward Street Citigroup Centre
London, EC1A 1HQ Canada Square, Canary Wharf
United Kingdom London, EC14 5LB
United Kingdom
Auditor Jersey Legal Advisers
Ernst & Young LLP Mourant Ozannes
Liberation House 22 Grenville Street
Castle Street St Helier
St Helier Jersey, JE4 8PX
Jersey, JE1 1EY
Company Secretary
R&H Fund Services (Jersey) Limited
Ordnance House
31 Pier Road
St Helier
Jersey, JE4 8PW
-1- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report
The directors of WisdomTree Commodity Securities Limited (“CSL” or the “Company”), formerly ETFS
Commodity Securities Limited until a change of name on 26 September 2019, submit herewith the annual
report and financial statements of the Company for the year ended 31 December 2019.
Directors
The names and particulars of the directors of the Company during and since the end of the financial year are:
Gregory Barton (Resigned 15 March 2019)
Stuart Bell (Appointed 28 October 2019)
Christopher Foulds (Appointed 15 April 2020)
Hilary Jones (Resigned 15 April 2020)
Steven Ross
Peter Ziemba
Directors’ Interests
No director has an interest in the Ordinary Shares of the Company as at the date of this report.
Principal Activities
The Company’s principal activity is the issue and listing of commodity securities (“Commodity Securities”). The
Company’s portfolio of Commodity Securities includes Classic, Longer Dated, Short and Leveraged
Commodity Securities.
Commodity Securities are financial instruments designed to track the price of commodity futures, and give
investors an exposure similar to that which could be achieved by managing a fully cash-collateralised position
in near-term futures contracts. However, unlike managing a futures position, Commodity Securities involve no
need to roll from one futures contract to another, no margin calls, and no other brokerage or other costs in
holding or rolling futures contracts (although security holders incur costs in holding Commodity Securities). No
trading or management of futures contracts is required by the Company.
Commodity Securities are backed by commodity contracts (“Commodity Contracts”) with terms corresponding
to the terms of Commodity Securities. The Company entered is currently party to two facility agreements, one
with Citigroup Global Markets Limited (“Citigroup”) and one with Merrill Lynch International (“Merrill Lynch”)
(together the “Commodity Contract Counterparties”), enabling the Company to create and cancel Commodity
Contracts on an ongoing basis.
The Company earns a management fee and a licence allowance based upon the number of Commodity
Securities in issue. These fees are expressed as an annual percentage, calculated on a daily basis and
reflected in the Net Asset Value (“NAV”) of the Commodity Securities on a daily basis, and paid monthly in
arrears.
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 Commodity Securities. In return for these services, the Company has an
obligation to remunerate ManJer with an amount equal to the aggregate of the management fee, licence
allowance and the creation and redemption fees (the “ManJer Fee”). As a result, amounts in respect of the
management fee and licence allowance are transferred directly to ManJer by the Commodity Contract
Counterparties under the terms of the Commodity Contracts and ManJer receives creation and redemption
fees directly from Authorised Participants. Accordingly there are no cash flows through the Company.
-2- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Review of Operations
The most recent Prospectuses were issued on 29 May 2019 (Classic and Longer Dated) and 24 May 2019
(Short and Leveraged). As at 31 December 2019, the Company had the following number of classes, in
aggregate, of Commodity Securities in issue and admitted to trading on the following exchanges:
London NYSE – NYSE- Tokyo Bolsa
Stock Borsa Deutsche Euronext Euronext Stock Mexicana
Exchange Italiana Börse Paris Amsterdam Exchange de Valores
Classic &
Longer Dated
Commodity
Securities 44 31 34 9 - 14 1
Short &
Leveraged
Commodity
Securities 30 30 18 - 4 - -
Total
Commodity
Securities 74 61 52 9 4 14 1
As at 31 December 2019, the fair value of assets under management amounted to USD 2,752.4 million (2018:
USD 3,092.0 million). The Company recognises its financial assets (Commodity Contracts) and financial
liabilities (Commodity Securities) at fair value in the Statement of Financial Position.
During the year, the Company generated income from creation and redemption fees, management fees and
licence allowance as follows:
2019 2018
USD USD
Creation and Redemption Fees 532,460 654,808
Management Fees and Licence Allowance 18,923,513 21,474,131
Total Fee Income 19,455,973 22,128,939
Under the terms of the service agreement with ManJer, the Company accrued expenses equal to the
management fee and licence allowance and creation and redemptions fees, which, after taking into account
other operating income and expenses, resulted in an operating result for the year of USD Nil (2018: USD Nil).
The gain or loss on Commodity Securities and Commodity Contracts is recognised in the Statement of Profit
or Loss and Other Comprehensive Income in line with the Company’s accounting policy.
The Company has entered into contractual obligations to issue and redeem Commodity Securities at set prices
on each trading day. These prices are based on agreed formulae published in the Prospectuses, and are
equal to the published NAV of each class of Commodity Security.
IFRS 13 requires the Company to identify the principal market and to utilise the available market price within
that principal market. The directors consider that the stock exchanges where the Commodity Securities are
listed to be the principal market and as a result the fair value of the Commodity Securities is the on-exchange
price as quoted on those stock exchanges demonstrating active trading. As a result of the difference in
valuation methodology between Commodity Contracts and Commodity Securities there is a mis-match
between accounting values, and the results of the Company reflect a gain or loss on the difference between
the agreed formula price of the Commodity Contracts and the market price of Commodity Securities. This gain
or loss would be reversed on a subsequent redemption of the Commodity Securities and cancellation of the
corresponding Commodity Contracts. This is presented in more detail in note 8 to these financial statements.
The Company’s exposure to risk is discussed in note 12 to the financial statements.
-3- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Going Concern
The nature of the Company’s business dictates that the outstanding Commodity Securities may be redeemed
at any time by the holder and in certain circumstances may be compulsorily redeemed by the Company. As
the redemption of Commodity Securities will always coincide with the cancellation of an equal amount of
Commodity Contracts, no net liquidity risk is considered to arise. All other expenses of the Company are met
by ManJer. The directors are closely monitoring the advice and developments relating to the spread of COVID-
19, particularly with its impact on ManJer, its assets under management, and therefore its related revenue
streams, in respect of fulfilling the obligations under the services agreement. The directors consider the
Company to be a going concern.
Future Developments
Referendum of the United Kingdom's (“UK’s”) membership of the European Union (the “EU Referendum”)
Pursuant to the European Referendum Act 2015, a referendum on the United Kingdom’s membership of the
EU was held on 23 June 2016 with the majority voting to leave the EU. On 29 March 2017, the UK Government
exercised its right under Article 50 of the Treaty of the European Union. The UK left the EU on 31 January
2020, subject to a withdrawal agreement between the UK and the other EU member states which provides for
a transition period lasting until December 2020 during which EU law continues to apply to the UK as if it were
a member state may take place without any transitional arrangements in place.
The Company is domiciled in Jersey, outside of the EU, and the Commodity Securities are distributed in the
EU under the EU Prospectus Directive which requires their offering to the public to be approved by an EU
Member State regulator. To date, the Company has chosen the UK Financial Conduct Authority (“FCA”) as
its member state regulator for these purposes. Request is then made to the FCA, as the chosen Member
State regulator, for the passporting of the offering across the EU, once again, under the Prospectus Directive.
The Company is working with an alternate EU Member State regulator to obtain approval of its prospectus and
request passporting for its offering to maintain the Company's access to relevant markets post the departure
of the UK from the EU. As the Commodity Securities already comply with the European wide requirements of
the Prospectus Directive, this is not expected to cause any disruption or alteration to the terms or nature of the
Commodity Securities.
The Commodity Securities continue to comply with all applicable laws and regulations. The directors regularly
assess the impact on the Company of the ongoing withdrawal process and consider that the decision to select
an alternate EU Member State regulator substantially mitigates the key risks to the Company.
Coronavirus disease (COVID-19)
On 11 March 2020, the Director-General of the World Health Organisation (“WHO”) announced that the WHO
had assessed the worldwide outbreak of COVID-19 as a pandemic. National governments and supranational
organisations in multiple states have taken steps designed to protect their populations from COVID-19,
including requiring or encouraging home working, the cancellation of sporting, cultural and other events and
restricting or discouraging gatherings of people. COVID-19 has created market turmoil and increased market
volatility generally. The steps outlined above, and public sentiment, may affect both the volatility and prices of
commodities and hence the prices of the Securities, and such effects may be significant and may be long-term
in nature.
The directors are closely monitoring the advice and developments relating to the spread of COVID-19, which
is fluid and rapidly changing. The WisdomTree group has, and continues to implement measures to maintain
the ongoing safety and well-being of employees, whilst continuing to operate business as usual.
-4- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Future Developments (continued)
Oil Markets
Following an analysis of the potential impact of the price of Crude Oil WTI futures, the Company decided that
a significant increase in the number of relevant Commodity Securities in issue may impact on the Commodity
Contract Counterparties’ ability to hedge the exposure under the relevant Commodity Contracts in these
particularly volatile markets. Having regard to the interests of existing Security Holders in the relevant
Commodity Securities, rather than potential future Security Holders, a decision was made to focus the attention
of the Commodity Contract Counterparties on providing (and hedging) the current exposures rather than taking
on additional exposures during this volatile period. As a result, on 24 April 2020 the Company released an
announcement to the Stock Exchanges that with effect from 2.30pm (London) the Company would temporarily
no longer accept applications from Authorised Participants for new Short and Leveraged Commodity Securities
of the following classes:
WisdomTree WTI Crude Oil 2x Daily Leveraged (Ticker: LOIL, ISIN: JE00BDD9Q840); and
WisdomTree WTI Crude Oil 1x Daily Short (Ticker: SOIL, ISIN: JE00B24DK975).
On 30 April 2020 the Company released a further announcement to the Stock Exchanges that with effect from
2.30pm (London) the Company would temporarily no longer accept applications from Authorised Participants
for new Classic and Longer Dated Commodity Securities of the following class:
WisdomTree WTI Crude Oil (Ticker: CRUD, ISIN GB00B15KXV33).
The three classes of Commodity Securities named above collectively being the “Affected Securities”.
Whilst the Company is currently not accepting applications in the Affected Securities, the Company is
continuing to accept redemptions in the Affected Securities, and trading of the Affected Securities on Stock
Exchanges continues. The market price of Commodity Securities is a function of supply and demand amongst
investors wishing to buy and sell Commodity Securities and the bid-offer spread that the market makers are
willing to quote. The action taken by the Company directly impacts the supply of those Affected Securities and
therefore may impact the market price.
The Company is continually assessing the market conditions and will make a further announcement in due
course when Applications in the Affected Securities will be accepted again. As a result of the continuing
assessment of market conditions, the Company may be required to react to external events that could
potentially impact other Commodity Securities in issue.
Whilst it is not currently possible to predict future market conditions and therefore determine if any further
action may be required, the action that may be required includes, but is not limited to, temporarily not accepting
applications for Commodity Securities, temporarily suspending Commodity Securities from trading on Stock
Exchanges or a Compulsory Redemption of Commodity Securities. Other than the actions outlined above, the
Company has not initiated any of these further actions to date. Any such action will be undertaken in
accordance with the constitutive documents of the Commodity Securities. Furthermore, there are mechanisms
within the constitutive documents of the Commodity Securities that enable the Counterparties to request a
Compulsory Redemption in certain circumstances as set out and explained within the prospectus.
On 24 April 2020, Bloomberg announced a change to the Roll Period for the Bloomberg WTI Crude Oil Sub-
IndexSM. According to the announcement from Bloomberg, the Roll Period for changing the Lead Future from
July to September for the Bloomberg WTI Crude Oil Sub-IndexSM was scheduled to take place in June 2020.
Bloomberg has announced that this Roll Period will now take place in May 2020, a month earlier than
scheduled. Beginning on 8 May 2020 and ending on 14 May 2020, Bloomberg will roll the Designated Month
Contract for the Lead Future from July to September for the Bloomberg WTI Crude Oil Sub-IndexSM. The
Affected Securities each provide exposure to the Bloomberg WTI Crude Oil Sub-IndexSM.
The board of directors (the “Board”) are 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.
-5- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Risk Management
Each Commodity Security is a debt instrument whose redemption price is linked to the performance of the
underlying commodity index. The Commodity Securities are issued under limited recourse arrangements
whereby the holders have recourse only to the value of the Commodity Contracts attributable to the class of
security they hold and not to the Company. In addition, since any such price movements are wholly attributable
to the Commodity Security holders, the Company has no residual exposure to price movements of the
Commodity Contracts. From a commercial perspective, the gains or losses on the liability represented by the
Commodity Securities are matched economically by corresponding losses or gains attributable to the
Commodity Contracts (see detail on page 3 regarding the accounting mis-match). The Company does not
retain any net gains or losses or net risk exposures. Further details surrounding the value of Commodity
Securities and the Commodity Contracts are disclosed in note 12.
Movements in the price of the underlying commodity, and thus the value of the Commodity Securities, may
vary widely which could have an impact on the demand for the Commodity Securities issued by the Company.
These movements are shown in notes 7 and 8.
Dividends
There were no dividends declared or paid in the year (2018: 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.
Employees
The Company does not have any employees. It is the Company’s policy to use the services of specialist
subcontractors or consultants as far as possible.
Directors’ Remuneration
No director has a service contract with the Company. The directors of the Company who are employees within
the WisdomTree Investments, Inc group do not receive separate remuneration in their capacity as directors of
the Company. R&H Fund Services (Jersey) Limited (“R&H” or the “Administrator”) receives a fee in respect of
the directors of the Company who are employees of R&H.
The following directors’ fees have been paid by ManJer on behalf of the Company for the year:
2019 2018
GBP GBP
Gregory Barton (Resigned 15 March 2019) Nil Nil
Stuart Bell (Appointed 28 October 2019) Nil Nil
Hilary Jones (Resigned 15 April 2020) 8,000 1,315
Steven Ross 8,000 8,000
Peter Ziemba Nil Nil
Auditor
The Independent Auditor, Ernst & Young LLP were appointed during the year and a resolution to re-appoint
them will be proposed at the next Board meeting of the directors.
Corporate Governance
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.
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.
-6- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Directors’ Report (Continued)
Corporate Governance (continued)
The constitution of the Board is disclosed on page 2. 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.
Internal Control
During the year the Company did not have any employees or subsidiaries, and there is no intention that this
will change. The Company, being a special purpose company established for the purpose of issuing
Commodity Securities, has not undertaken any business, save for issuing and redeeming Commodity
Securities, entering into the required documents and 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 Commodity Securities and performing the obligations and exercising its rights in relation
thereto.
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 R&H. 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 companies issuing
commodity and index tracking securities.
The Board, having reviewed the effectiveness of the internal control systems of the Manager and R&H, and
having a regard to the role of its external auditor, does not consider that there is a need for the Company to
establish its own internal audit function.
Audit Committee
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 auditors.
Steven Ross
Director
Jersey
15 May 2020
-7- www.wisdomtree.eu
WisdomTree Commodity Securities Limited
Statement of Directors’ Responsibilities
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 (“IFRSs”) as issued by the International Accounting Standards Board (“IASB”) and applicable law.
Under company law the directors must not approve the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that
period. In preparing these financial statements, the directors are required to:
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;
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that the financial statements comply with the Companies (Jersey) Law
1991. They are responsible for such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error, and have
general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the
Company and to prevent and detect fraud and other irregularities.
The directors are responsible for 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 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 2019 give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company as required by law and in accordance
with IFRS as issued by the IASB; and
the Directors’ Report gives a fair view of the development and performance of the Company’s
business, including financial position and the important events that have occurred during the year, and
their impact on these financial statements, together with a description of the principal risks and
uncertainties they face.
Additional information on other financial and operational risks and uncertainties faced by the Company are
disclosed in note 12 of these financial statements. Detail of the wider macroeconomic risks faced by the
Company are disclosed in the Directors’ Report.
By order of the Board
Steven Ross
Director
Jersey
15 May 2020
-8- www.wisdomtree.eu
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED
Opinion
We have audited the financial statements of WisdomTree Commodity Securities Limited (the
‘company’) for the year ended 31 December 2019 which comprise the Statement of Profit or Loss and
Other Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the
Statement of Changes in Equity and the related notes 1 to 14, including a summary of significant
accounting policies. The financial reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards.
In our opinion, the financial statements:
► give a true and fair view of the state of the company’s affairs as at 31 December 2019 and of its
result for the year then ended;
► have been properly prepared in accordance with International Financial Reporting Standards; and
► 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 below. We are
independent of the company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require
us to report to you where:
► the directors’ use of the going concern basis of accounting in the preparation of the financial
statements is not appropriate; or
► the directors have not disclosed in the financial statements any identified material uncertainties
that may cast significant doubt about the company’s ability to continue to adopt the going concern
basis of accounting for a period of at least twelve months from the date when the financial
statements are authorised for issue.
Overview of our audit approach
Key audit ► Valuation of Financial Assets at fair value through profit and loss -
matters Commodity Contracts
► Valuation of Financial Liabilities at fair value through profit and loss -
Commodity Securities
Materiality ► Overall materiality of US$27.6m which represents 1% of total assets.
-9-
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) that we identified. These matters included
those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context
of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide
a separate opinion on these matters.
Risk Our response to the risk Key observations
communicated to the Board
Valuation of Financial Assets Our response to the risk There were no matters identified
at fair value through profit and comprised: during our audit work on
loss - Commodity Contracts valuation of Commodity
An assessment of the Contracts that we wanted to
USD 2,752,376,081 company’s systems and controls bring to the attention of the
(2018: USD 3,091,983,052) implemented in respect of Board of Directors of the
commodity contract valuation. company.
Refer to the Accounting policies
(page 21-22); and Note 7 of the Review of predecessor audit
Financial Statements (page 25) workpapers to understand the
strategy and approach to testing
Risk that investment values are valuation in the prior period.
misstated or that valuations are
incorrectly calculated. Obtaining independent
confirmation, from the contract
The Commodity Contracts held counterparty, of the contractual
comprise a range of commodity value of contracts as at the
derivatives that are used by the reporting date.
Company to provide holders of
issued securities with exposure Agreement of the valuation
that is designed to track the methodology applied to the
price of commodity futures. definition set out in the
prospectus and validation of key
The Commodity Contracts are inputs used to derive the value
carried at fair value as a of the Commodity Contracts.
Financial Asset. This included agreement of the
price of referenced
The risk comprises the risk of commodities/commodity indices
errors in both the valuation to external pricing sources as at
methodology applied (including 31 December 2019.
the risk that the valuation
methodology has not been Recalculation of the value of a
determined in accordance with sample of Commodity Contracts
the terms of the applicable held at 31 December 2019,
prospectus) and in the source representing 94% of the total
and timing of valuation inputs value of Commodity Contracts
utilised. held.
The balance of Commodity
Contracts represents in excess
of 99% of the company’s total
assets as at 31 December 2019
(2018: 99%) and therefore any
error in valuation approach could
be significant.
-10-
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Risk Our response to the risk Key observations
communicated to the Board
Valuation of Financial Our response to the risk There were no matters identified
Liabilities at fair value through comprised: during our audit work on
profit and loss - Commodity valuation of Commodity
Securities An assessment of the Securities that we wanted to
company’s systems and controls bring to the attention of the
USD 2,764,472,560 implemented in respect of Board of Directors of the
(2018: USD 3,121,116,614) commodity security valuation. company.
Refer to the Accounting policies Review of predecessor audit
(page 21-22); and Note 8 of the workpapers to understand the
Financial Statements (pages 25- strategy and approach to testing
26) valuation in the prior period.
Risk that values of securities in Assessed the appropriateness
issue are misstated or that of the valuation methodology
valuations are incorrectly applied, comprising the use of
captured. traded security prices to value
the Commodity Securities,
The Commodity Securities in against relevant IFRS
issue comprise a range of requirements.
financial instruments that provide
holders with exposure that is Independently obtaining security
designed to track the price of prices using external pricing
commodity futures. sources at the balance sheet
date.
The Commodity Securities are
carried at fair value as a Recalculation of the value
Financial Liability. Commodity Securities held at 31
December 2019, by multiplying
The risk comprises the risk of the security price by the
errors in both the valuation confirmed security balance in
methodology applied and in the issue. This represented 100%
source and timing of valuation of the total value of Commodity
inputs utilised. Securities in issue.
The balance of Commodity
Securities represents in excess
of 99% of the company’s total
liabilities as at 31 December
2019 (2018: 99%) and therefore
any error in valuation approach
could be significant.
-11-
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Emphasis of matter – Effects of COVID-19
We draw attention to Note 2, Note 12(f)(i) and Note 14 of the financial statements, which describes the
economic and social disruption the company is facing as a result of COVID-19 which is impacting
financial markets and creating greater volatility in commodity prices. Our opinion is not modified in
respect of this matter.
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, including controls and changes in the business environment 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
We have identified no changes in the scope of the audit compared to the prior year. The primary
accounting and administrative activities for the Company were conducted in the same geographical
locations and by the same service providers as in the prior year and as a result our work was
conducted as a single audit process.
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$27.6 million (2018: US$15.6 million), which is
1% (2018: 0.5%) of Total Assets. We believe that Total Assets provides us with an appropriate basis
for audit materiality as Total Asset value reflects the relevant exposure of holders of issued securities
to the underlying asset base.
As our first period of appointment as auditor the basis above has been determined based on our
understanding of the current business and its ownership and operation in the current year, including
the level at which we anticipate misstatements would influence the economic decisions of a user of the
financial statements.
In particular we have considered both the nature of the exposure to asset performance being obtained
by security holders and the expectations of the users of the financial statements by observing the
basis applied across existing WisdomTree exchange traded issuer products.
The entity is structured such that the security holders interests are reflected as a liability, but provide
exposure to net assets invested, with the 1% being considered appropriate in the context of such net
asset exposure.
The basis is also consistent with other audited WisdomTree exchange traded issuer platforms in
Europe, where 1% of assets has historically been applied as the basis for materiality, so we have
reflected this established level of user expectation for WisdomTree issuer vehicles.
During the course of our audit, we reassessed initial materiality and noted no factors leading us to
amend materiality levels from those originally determined at the audit planning stage.
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
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% (2018: Not reported) of our
planning materiality, namely US$13.8m (2018: Not reported). We have set performance materiality at
this percentage due to this being our initial year of appointment as auditor.
As performance materiality was not separately reported by the predecessor auditor we are not able to
report on any variation compared to the basis or amounts utilised in the prior year.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in
excess of US$1.4m (2018: US$0.78m), which is set at 5% of planning materiality, as well as
differences below that threshold that, in our view, warranted reporting on qualitative grounds.
The basis of determining the amount remains consistent with that applied in the prior year at 5% of
planning materiality, with the increase explained by the higher overall percentage used in determining
planning materiality.
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 8,
including the Directors’ Report set out on pages 2 to 7 and the Statement of Directors’ Responsibilities
set out on page 8, other than the financial statements and our auditor’s report thereon. The directors
are responsible for the other information.
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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether there is a material misstatement in the financial statements or a
material misstatement of the other information. 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
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF WISDOMTREE COMMODITY SECURITIES LIMITED (continued)
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 8, 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.
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.
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.
Christopher David Gordon Barry, FCA
for and on behalf of Ernst & Young LLP
Jersey, Channel Islands
15 May 2020
Notes:
1. The maintenance and integrity of the WisdomTree Commodity Securities Limited web site is
the responsibility of the directors; the work carried out by the auditors does not involve
consideration of these matters and, accordingly, the auditors accept no responsibility for any
changes that may have occurred to the financial statements since they were initially presented
on the web site.
2. Legislation in the Jersey governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
-14-
WisdomTree Commodity Securities Limited
Statement of Profit or Loss and Other Comprehensive Income
Year ended 31 December
2019 2018
Notes USD USD
Revenue 3 19,455,973 22,128,939
Expenses 3 (19,455,973) (22,128,939)
Operating Result 3 - -
Net Gain/(loss) Arising on Contractual and Fair
Value of Commodity Contracts 7 525,723,270 (543,940,397)
Net (Loss)/Gain Arising on Fair Value of Commodity
Securities 8 (508,686,187) 490,873,591
Result and Total Comprehensive
Income/(Expense) for the Year 8 17,037,083 (53,066,806)
1
Adjustment from Market Value to Contractual
Value (as set out in the Prospectus) of Commodity
Securities 2 (17,037,083) 53,066,806
Adjusted Result - -
The directors consider the Company’s activities as continuing.
1
An explanation of the non-statutory and non-GAAP adjustment is set out on page 22. This represents the movement in
the difference between the Contractual Value of the Commodity Contracts and the market price of Commodity Securities.
The notes on pages 19 to 34 form part of these financial statements
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WisdomTree Commodity Securities Limited
Statement of Financial Position
As at 31 December
2019 2018
Notes USD USD
Assets
Commodity Contracts 7 2,752,376,081 3,091,983,052
Amounts Receivable on Commodity Contracts
Awaiting Settlement 7 6,742,276 11,959,380
Amounts Receivable on Commodity Securities
Awaiting Settlement 8 5,271,900 13,874,417
Trade and Other Receivables 6 2,528,332 3,286,424
Total Assets 2,766,918,589 3,121,103,273
Liabilities
Commodity Securities 8 2,764,472,560 3,121,116,614
Amounts Payable on Commodity Securities Awaiting
Settlement 8 6,742,276 11,959,380
Amounts Payable on Commodity Contracts Awaiting
Settlement 7 5,271,900 13,874,417
Trade and Other Payables 9 2,528,330 3,286,422
Total Liabilities 2,779,015,066 3,150,236,833
Equity
Stated Capital 10 2 2
Revaluation Reserve (12,096,479) (29,133,562)
Total Equity (12,096,477) (29,133,560)
Total Equity and Liabilities 2,766,918,589 3,121,103,273
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 15 to 34 were approved and authorised for issue by the board of directors
and signed on its behalf on 15 May 2020.
Steven Ross
Director
The notes on pages 19 to 34 form part of these financial statements
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WisdomTree Commodity Securities Limited
Statement of Cash Flows
Year ended 31 December
2019 2018
USD USD
Operating Result for the Year - -
Cash Generated from Operating Activities - -
Net Increase in Cash and Cash Equivalents - -
Cash and Cash Equivalents at the Beginning of the
Year - -
Net Increase in Cash and Cash Equivalents - -
Cash and Cash Equivalents at the End of the Year - -
Commodity Securities are issued through a direct transfer of cash from the Authorised Participant to the
Commodity Contract Counterparties or redeemed by the direct transfer of cash by the Commodity Contract
Counterparties to the Authorised Participant. As such the Company is not a party to any cash transactions.
The creations and redemptions of Commodity Securities and additions and disposals of Commodity Contracts,
which are non-cash transactions for the Company, are disclosed in notes 7 and 8 respectively in the
reconciliation of opening to closing Commodity Securities and Commodity Contracts.
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 Commodity Securities. In return for these services, the Company has an
obligation to remunerate ManJer with an amount equal to the aggregate of the management fee, licence
allowance and the creation and redemption fees (the “ManJer Fee”). As a result, amounts in respect of the
management fee and licence allowance are transferred directly to ManJer by the Commodity Contract
Counterparties under the terms of the Commodity Contracts and ManJer receives creation and redemption
fees directly from Authorised Participants. Accordingly there are no cash flows through the Company.
The notes on pages 19 to 34 form part of these financial statements
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WisdomTree Commodity Securities Limited
Statement of Changes in Equity
Stated Retained Revaluation Total Adjusted
Capital Earnings Reserve2 Equity Total Equity
Notes USD USD USD USD USD
Opening Balance at 1 January 2018 2 - 23,933,244 23,933,246 2
Result and Total Comprehensive Income for the Year - (53,066,806) - (53,066,806) (53,066,806)
Transfer to Revaluation Reserve 8 - 53,066,806 (53,066,806) - -
3
Adjustment from Market Value to Contractual Value
(as set out in the Prospectus) of Commodity Securities 8 - - - - 53,066,806
Balance at 31 December 2018 2 - (29,133,562) (29,133,560) 2
Opening Balance at 1 January 2019 2 - (29,133,562) (29,133,560) 2
Result and Total Comprehensive Income for the Year - 17,037,083 - 17,037,083 17,037,083
Transfer to Revaluation Reserve 8 - (17,037,083) 17,037,083 - -
3
Adjustment from Market Value to Contractual Value
(as set out in the Prospectus) of Commodity Securities 8 - - - - (17,037,083)
Balance at 31 December 2019 2 - (12,096,479) (12,096,477) 2
2
This represents the difference between the Contractual Value of the Commodity Contracts and the market price of Commodity Securities.
3 An explanation of the non-statutory and non-GAAP adjustment is set out on page 22.
The notes on pages 19 to 34 form part of these financial statements
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements
1. General Information
WisdomTree Commodity Securities Limited (the “Company”) is a company incorporated and domiciled in
Jersey. The address of the registered office is Ordnance House, 31 Pier Road, St. Helier, Jersey, JE4 8PW.
The name of the Company was changed from ETFS Commodity Securities Limited on 26 September 2019.
The purpose of the Company is to provide a vehicle that facilitates the issuance and subsequent listing and
trading of Commodity Securities. The Company does not make gains from trading in the underlying Commodity
Contracts themselves. The Commodity Securities are issued under limited recourse arrangements whereby
the Company has no residual exposure to price movements of the underlying assets, therefore from a
commercial perspective gains and losses in respect of Commodity Contracts will always be offset by a
corresponding loss or gain on the Commodity Securities. Further details regarding the risks of the Company
are disclosed in note 12.
Exchange-traded products are not typically actively managed, are significantly lower in cost when compared
to actively managed mutual funds and are easily accessible to investors. No trading or management of futures
contracts is required of the Company because the Company has entered into arrangements to acquire an
equivalent asset exposure represented by the Commodity Securities from third parties which fully hedges the
exposure of the Company.
The Company is entitled to:
(1) a management fee and a licence allowance which are calculated by applying a fixed percentage to
the contractual value of Commodity Securities in issue on a daily basis; and
(2) creation and redemption fees on the issue and redemption of the Commodity Securities.
No creation or redemption fees are payable to the Company when investors trade in the Commodity Securities
on a listed market such as the London Stock Exchange. Creation and redemption fees may also be waived
with certain approved persons where applicable.
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 Commodity Securities. In return for these services the Company pays
ManJer an amount equal to the management fee, licence allowance and the creation and redemption fees
earned (the “ManJer Fee”). As a result there are no operating profits or losses recognised through the
Company.
2. Accounting Policies
The main accounting policies of the Company are described below.
Basis of Preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRSs”) as issued by the International Accounting Standards Board (“IASB”), and interpretations issued by
the International Financial Reporting Interpretations Committee of the IASB. The financial statements have
been prepared under the historical cost convention, as modified by the revaluation of financial assets and
financial liabilities held at fair value through profit or loss.
Critical Accounting Estimates and Judgements
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.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Critical Accounting Estimates and Judgements
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 key accounting
judgements required to prepare these financial statements are 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 on page 19. As a result of the mismatch in the valuation of
Commodity Contracts and Commodity Securities held at fair value through profit or loss as disclosed in notes
7 and 8. The directors do not consider that any significant estimates have been applied in the preparation of
these financial statements.
Going Concern
The nature of the Company’s business dictates that the outstanding Commodity Securities may be redeemed
at any time by the holder and in certain circumstances may be compulsorily redeemed by the Company. As
the redemption of Commodity Securities will always coincide with the redemption of an equal amount of
Commodity Contracts, no net liquidity risk is considered to arise. All other expenses of the Company are met
by ManJer. The directors are closely monitoring the advice and developments relating to the spread of COVID-
19, particularly with its impact on ManJer, its assets under management, and therefore its related revenue
streams, in respect of fulfilling the obligations under the services agreement in place. The directors consider
the Company to be a going concern for the foreseeable future and have prepared the financial statements on
this basis.
Accounting Standards
(a) Standards, amendments and interpretations adopted in the year:
In preparing the financial statements the Company has adopted all new or revised Standards and
Interpretations in issue and effective for the year, none of which are considered to have resulted in a
significant effect on these financial statements.
(b) Standards, amendments and interpretations not applicable to the Company:
The following standards that have been revised, issued and became effective but are not considered
applicable to the Company:
IFRS 3 Business Combinations
IFRS 10 Consolidated Financial Statements
IFRS 16 Leases
IAS 12 Income Taxes
IAS 19 Employee Benefits Employee Benefits
IAS 23 Borrowing Costs
IAS 28 Investments in Associates and Joint Ventures
(c) New and revised IFRSs in issue but not yet effective:
The Company has not applied the following new and revised IFRSs that have been issued but are not
yet effective:
IFRS 17 Insurance Contracts (effective for annual periods beginning on or after 1 January 2021)
Annual Improvements to IFRS (impacting IFRS 3, IFRS 7, IFRS 8, IAS 1 and IAS 8)
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.
The directors have considered other standards and interpretations in issue but not effective and concluded
that they would not have a material impact on the future financial periods when they become available.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Commodity Securities and Commodity Contracts
i) Issue and Redemption
The Company has entered into facility agreements with Citigroup Global Markets Limited (“Citigroup”)
and Merrill Lynch International (“Merrill Lynch”) (collectively the “Commodity Contract Counterparties”).
The facility agreements permit the Company to create and cancel Commodity Contracts at prices
equivalent to Commodity Securities issued or redeemed on the same day. Each time a Commodity
Security is issued or redeemed by the Company a corresponding number and value of Commodity
Contracts are created or cancelled with the Commodity Contract Counterparties. The Commodity
Contracts represent the financial assets of the Company and the Energy Securities give rise to the
financial liabilities.
Financial assets and liabilities are recognised and de-recognised on the transaction (trade) date.
ii) Pricing
The Commodity Contracts are priced by reference to the value of the commodity indices calculated and
published by Bloomberg L.P. or Bloomberg Finance L.P. (together “Bloomberg”) and a multiplier
calculated by the Company and agreed with the Commodity Contract Counterparties. The multiplier
takes into account the daily accrual of the management fee and licence allowance and swap spread as
well as the capital adjustment component of the Commodity Security, and is the same across all
Commodity Securities of the same type (i.e. all Classic Commodity Securities use the same multiplier).
This price is calculated based on the formula set out in the Prospectus, and is referred to as the
‘Contractual Value’ and is considered to be the fair value of the Commodity Transactions.
IFRS 13 requires the Company to identify the principal market and to utilise the available market price
within that principal market. The directors consider that the stock exchanges where the Commodity
Securities are listed to be the principal market and as a result the fair value of the Commodity Securities
is the on-exchange price as quoted on those stock exchanges demonstrating active trading. The
Commodity Securities are priced using the closing mid-market price on the Statement of Financial
Position date.
Consequently a difference arises between the value of Commodity Contracts (at Contractual Value) and
Commodity Securities (at market value) presented in the Statement of Financial Position. This
difference is reversed on a subsequent redemption of the Commodity Securities and cancellation of the
corresponding Commodity Contracts.
iii) Classification at fair value through Profit or Loss
Each Commodity Security and Commodity Contract comprises a financial instrument whose redemption
or cancellation price is linked to the performance of the relevant commodity index adjusted by the
applicable fees and expenses.
The Commodity Contracts are mandatorily classified as financial assets at fair value through profit or
loss upon initial recognition under IFRS 9 based on the business model and contractual terms.
The Commodity Securities held are classified as financial liabilities measured at fair value through profit
or loss as, upon initial recognition under IFRS 9, as they are irrevocably designated by the entity as
such.
This is considered to result in more relevant information, as it eliminates, or 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. In this case the policy applied enables
gains or losses on both the Commodity Securities and Commodity Contracts to be recorded in the
Statement of Profit or Loss and Other Comprehensive Income.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Commodity Securities and Commodity Contracts (continued)
iii) Classification at fair value through Profit or Loss (continued)
Through the mis-matched accounting values, the results of the Company reflect a gain or loss which
represents the movement in the cumulative difference between the Contractual Value (based on the
formula set out in the Prospectus) of the Commodity Contracts and the market price of Commodity
Securities. This gain or loss is transferred to a Revaluation Reserve which is non-distributable. The
results of the Company are adjusted through the presentation of a non-statutory and non-GAAP
movement entitled ‘Adjustment from Market Value to Contractual Value (as set out in the Prospectus)
of Commodity Securities’.
Commodity Contracts and Securities Awaiting Settlement
The issue or redemption of Commodity Securities, and the creation or sale of Commodity Contracts, is
accounted for on the transaction date. Where settlement pricing is applied, the transaction will not settle until
two days after the transaction date. Where transactions are awaiting settlement at the year end, the monetary
value of the Commodity Contracts and the Commodity 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.
Other financial assets and liabilities
Other financial assets and liabilities are non-derivative financial assets and liabilities including trade and other
receivables and trade and other payables with a fixed payment amount and are not quoted in an active market.
After initial measurement the other financial assets and liabilities are subsequently measured at amortised cost
using the effective interest method less any allowance for expected credit losses. 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 presented in the statement of profit or loss and other comprehensive income.
Reserves
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.
Revenue Recognition
The Company derives its revenue from contracts with customers for the transfer services over time (in respect
of management fees), and at a point in time (in respect of creation and redemption fees). Revenue is measured
based on a consideration of the amount to which the Company expects to be entitled, excluding discounts,
rebates, and other sales taxes or duty. All other income and expenses are recognised on an accruals basis.
i) Management Fees
Management fees are calculated and recognised on a daily basis by applying a fixed percentage to the
contractual value of Commodity Securities in issue in accordance with the terms of the securities issued.
Accrued management fees are invoiced and settled on a monthly basis.
ii) Creation and Redemption Fees
Fees for the issue and redemption of Commodity Securities are recognised at the fair value of the
consideration expected to be received, on the date on which the transaction becomes legally binding.
Accrued creation and redemption fees are invoiced and settled on a quarterly basis.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
2. Accounting Policies (continued)
Foreign Currency Translation
The financial statements of the Company are presented in the currency in which the majority of the Commodity
Contracts 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, which is
the functional currency of the Company, and the presentational currency of the financial statements.
Monetary assets and liabilities denominated in foreign currencies at the year end date are translated at rates
ruling at that date. Creation and redemption fees are translated at the average rate for the month in which
they are incurred. The resulting differences are accounted for through profit or loss.
Segmental Reporting
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. 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.
The Company reports information on its operations for each of the Company’s business segments only, as the
Company only has one geographic segment which is Europe. In addition the Company has no single major
customer from which greater than 10% of revenue is generated. The directors believe that there are two
segments comprising Classic & Longer Dated and Short & Leveraged – results of each are disclosed
separately in note 5.
3. Operating Result
Operating result for the year comprised:
Year ended 31 December
2019 2018
USD USD
Management Fees 17,342,309 19,677,422
Licence Allowance 1,581,204 1,796,708
Creation and Redemption Fees 532,460 654,809
Total Revenue 19,455,973 22,128,939
ManJer Fees (19,455,973) (22,128,939)
Total Operating Expenses (19,455,973) (22,128,939)
Operating Result - -
Audit Fees for the year of GBP 25,130 will be met by ManJer (2018: GBP 24,450).
4. Taxation
The Company is subject to Jersey Income Tax. During the year the Jersey Income Tax rate applicable to the
Company is zero percent (2018: zero percent).
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
5. Segmental Reporting
The Company has two operating segments; Classic & Longer Dated and Short & Leveraged Commodity
Securities in issue. The Company earns revenues from each of these sources.
For the year ended Classic & Short &
31 December 2019: Longer Dated Leveraged Total
USD USD USD
Management Fees 13,649,310 3,692,999 17,342,309
Licence Allowance 1,392,786 188,418 1,581,204
Creation and Redemption Fees 304,370 228,090 532,460
Total Revenue 15,346,466 4,109,507 19,455,973
Total Operating Expenses (15,346,466) (4,109,507) (19,455,973)
Segmental Result - - -
For the year ended Classic & Short &
31 December 2018: Longer Dated Leveraged Total
USD USD USD
Management Fees 15,379,915 4,297,507 19,677,422
Licence Allowance 1,577,447 219,261 1,796,708
Creation and Redemption Fees 339,973 324,836 654,809
Total Revenue 17,297,335 4,841,604 22,138,939
Total Operating Expenses (17,297,335) (4,841,604) (22,138,939)
Segmental Result - - -
Additional information relating to the assets and liabilities associated with these Commodity Securities is
disclosed in notes 7 and 8.
6. Trade and Other Receivables
As at 31 December
2019 2018
USD USD
Management Fees and Licence Allowance 2,366,979 3,011,359
Creation and Redemption Fees 161,351 275,063
Receivable from Related Party 2 2
2,528,332 3,286,424
The fair value of these receivables is equal to the carrying value. The Trade and Other Receivables are due
to be recovered within 12 months of the year end.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
7. Commodity Contracts
31 December 2019 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Contracts 448,431,166 2,474,746,715
Short & Leveraged Commodity Contracts 77,292,104 277,629,366
Total Commodity Contracts 525,723,270 2,752,376,081
31 December 2018 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Contracts (494,149,012) 2,735,862,976
Short & Leveraged Commodity Contracts (49,791,385) 356,120,076
Total Commodity Contracts (543,940,397) 3,091,983,052
As at 31 December 2019, there were certain Commodity Contracts awaiting settlement in respect of the
creation or redemption of Securities with transaction dates before the year end and settlement dates in the
following year:
The amount receivable on Commodity Contracts as a result of unsettled redemptions of Commodity
Securities is USD 6,742,276 (2018: USD 11,959,380).
The amount payable on Commodity Contracts as a result of unsettled creations of Commodity
Securities is USD 5,271,900 (2018: USD 13,874,417).
The below reconciliation of changes in the Commodity Contracts includes only non-cash changes.
Year ended 31 December
2019 2018
USD USD
Opening Commodity Contracts 3,091,983,052 3,530,411,481
Additions 4,618,568,799 6,147,311,068
Disposals (5,464,975,527) (6,020,324,969)
Management Fee (18,923,513) (21,474,131)
Change in Fair Value 525,723,270 (543,940,397)
Closing Commodity Contracts 2,752,376,081 3,091,983,052
8. Commodity Securities
Whilst the Commodity Securities are quoted on the open market, the Company’s liability relates to its
contractual obligations to issue and redeem Commodity Securities at set prices on each trading day. These
prices are based on agreed formulae, and are equal to the published net asset values (“NAV”) of each class
of Commodity Security. Therefore, the actual contractual issue and redemption of Commodity Securities occur
at a price that corresponds to gains or losses on the Commodity Contracts. As a result the Company has no
net exposure to gains or losses on the Commodity Securities and Commodity Contracts.
The Company measures the Commodity Securities at their market value in accordance with IFRS 13 rather
than their Contractual Value (as described in the Prospectus). The market value is deemed to be the prices
quoted on stock exchanges or other markets where the Commodity Securities are listed or traded. However
Commodity Contracts are valued based on the agreed formulae set out in the Prospectus.
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
8. Commodity Securities (continued)
The fair values and changes thereof during the year based on prices available on the open market as
recognised in the financial statements are:
31 December 2019 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Securities (432,630,074) 2,484,575,162
Short & Leveraged Commodity Securities (76,056,113) 279,897,398
Total Commodity Securities (508,686,187) 2,764,472,560
The contractual redemption values and changes thereof during the year based on the contractual settlement
values are:
31 December 2018 Change in
Contractual
Contractual
Redemption Redemption
Value Value
USD USD
Classic & Longer Dated Commodity Securities (448,431,166) 2,474,746,715
Short & Leveraged Commodity Securities (77,292,104) 277,629,366
Total Commodity Securities (525,723,270) 2,752,376,081
The gain or loss on the difference between the agreed Contractual Value of the Commodity Contracts and the
market price of Commodity Securities would be reversed on a subsequent redemption of the Commodity
Securities and cancellation of the corresponding Commodity Contracts.
The mismatched accounting values are as shown below and represent the non-statutory adjustment and non-
GAAP presented in the Statement of Profit or Loss and Other Comprehensive Income:
Year ended 31 December
2019 2018
USD USD
Net Gain / (Loss) Arising on Contractual and Fair Value of
Commodity Contracts 525,723,270 (543,940,397)
Net (Loss) / Gain Arising on Fair Value of Commodity
Securities (508,686,187) 490,873,591
17,037,083 (53,066,806)
As at 31 December 2019, there were certain Commodity Securities awaiting settlement in respect of creations
or redemptions with transaction dates before the year end and settlement dates in the following year:
The amount receivable as a result of unsettled creations of Commodity Securities is USD 5,271,900
(2018: USD 13,874,417).
The amount payable as a result of unsettled redemptions of Commodity Securities is USD 6,742,276
(2018: USD 11,959,380).
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WisdomTree Commodity Securities Limited
Notes to the Financial Statements (Continued)
8. Commodity Securities (continued)
31 December 2018 Change in
Fair Value Fair Value
USD USD
Classic & Longer Dated Commodity Securities 449,891,837 2,761,492,514
Short & Leveraged Commodity Securities 40,981,754 359,624,100
Total Commodity Securities 490,873,591 3,121,116,614
31 December 2018 Change in
Contractual
Contractual
Redemption Redemption
Value Value
USD USD
Classic & Longer Dated Commodity Securities 494,149,012 2,735,862,976
Short & Leveraged Commodity Securities 49,791,385 356,120,076
e
Total Commodity Securities 543,940,397 3,091,983,052
The below reconciliation of changes in the Commodity Securities, being liabilities arising from financing
activities, includes only non-cash changes.
Year ended 31 December
2019 2018
USD USD
Opening Commodity Securities 3,121,116,614 3,506,478,237
Additions 4,618,568,799 6,147,311,068
Disposals (5,464,975,527) (6,020,324,969)
Management fee (18,923,513) (21,474,131)
Change in fair value 508,686,187 (490,873,591)
Closing Commodity Securities at Fair Value 2,764,472,560 3,121,116,614
9. Trade and Other Payables
As at 31 December