HANetf Multi-Asset ETC Issuer Plc
Annual Report and
Audited Financial statements
For the year ended 31 December 2025
Registered number 146066
HANetf Multi-Asset ETC Issuer Plc
Contents
Page (s)
Directors' and Other Information 1
Directors’ Report 2 - 5
Statement of Directors’ Responsibility 6
Independent Auditor's Report 7 - 12
Statement of Profit or Loss and Other Comprehensive Income 13
Statement of Financial Position 14
Statement of Changes in Equity 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 26
HANetf Multi-Asset ETC Issuer Plc
Page 1
Directors' and Other Information
Directors
Elizabeth Casely (Appointed on 11 June 2025)
Torsten Dueing
Vinod Rajput
Helen Crowe (Resigned on 11 June 2025)
Registered Office
IFC 5
St Helier JE1 1ST
Jersey
Company Secretary
Apex Financial Services (Secretaries) Limited
IFC 5
St Helier JE1 1ST
Jersey
Corporate Administrator
Apex Fund Services (Ireland) Limited
2nd Floor, Block 5, Irish Life Centre
Abbey Street Lower
Dublin, D01 P767
Ireland
Apex Financial Services (Jersey) Limited
IFC 5
St Helier JE1 1ST
Jersey
The Bank of New York Mellon, London Branch
160 Queen Victoria Street
London EC4V 4LA
United Kingdom
Interactive Brokers (U.K.) Limited
Level 20 Heron Tower
110 Bishopsgate
London, EC2N 4AY
United Kingdom
HANetf Limited
107 Cheapside
London EC2V 6DN
United Kingdom
Banker, Issuing and
Bank of New York Mellon
Paying Agent
160 Queen Victoria Street
London EC4V 4LA
United Kingdom
Trustee and
The Law Debenture Trust Corporate p.l.c
Security Trustee
Eighth Floor, 100 Bishopsgate
London EC2N 4AG
United Kingdom
Bank of New York Mellon SA/NV, Dublin Branch
Riverside Two
Sir John Rogerson's Quay
Grand Canal Dock
Dublin 2
Ireland
Independent Auditor
Baker Tilly Channel Islands Limited
2nd Floor, Lime Grove House. Green Street
St Helier, Jersey Channel Islands
JE2 4UB
Corporate Service
Provider
Custodian
Custodian in connection with
equities as Underlying Assets
Management and
Determination Agent
Registrar and
Transfer agent
Capitalised terms used herein shall have the same meaning as in the Base Prospectus of HANetf Multi-Asset ETC Issuer Plc dated 07 October 2025 (as amended)
(the "Base Prospectus"), unless the context requires otherwise.
HANetf Multi-Asset ETC Issuer Plc
Page 2
Directors’ Report
Principal activities and business review
Listing and trading
Review of Operations
Nasdaq Nasdaq
Stockholm
Helsinki
SPUT
P P
- - -
2SBT - - -
P P
2LBT - - -
P P
2LET - - -
P P
MSTY
P P P
- -
ULTY
P P P
- -
Sprott Physical Uranium ETC (SPUT)
Primary Listing (Under SFSA prospectus): Xetra (07/03/2025)
Primary Listing (Under FCA prospectus): London Stock Exchange (28/02/2025)
2x Short Bitcoin ETP (2SBT)
Primary Listing (SFSA prospectus): Nasdaq Stockholm (12/03/2025)
Secondary Listing (SFSA prospectus): Nasdaq Helsinki (18/11/2025)
Securities are constituted by the Trust Deed. Under the terms of the Trust Deed, the Trustee acts as trustee for the Securityholders of each Class of the Securities.
The relevant Underlying Assets and Secured Property held are the subject of floating and fixed charges and a pledge under the relevant Security Document(s) in
favour of the Trustee to secure the obligations owed by the Company to the Trustee and the Securityholders in respect of the relevant Class of Securities.
Under the Custody Agreements, the relevant Custodian(s) acknowledge(s) the Security created in favour of the Trustee and agree(s) that once any relevant
Underlying Assets are deposited in accordance with the relevant Custody Agreement, it may only be removed after approval from the Company (or the Trustee
following an Event of Default).
The most recent Prospectus was issued on 07 October 2025. As at 31 December 2025, the Company had the following classes of Securities in issue and admitted to
trading on the following exchanges:
The directors (the "Directors" or the “Board”) present the annual report and financial statements of HANetf Multi-Asset ETC Issuer Plc (the “Company"/"Issuer”)
for the year ended 31 December 2025.
The Company is a public limited company incorporated on 09 November 2022 in Jersey under the Companies (Jersey) Law 1991, as amended (the "Act"). The
Company’s principal activity is the issuance and management of ETC Securities ("Securities") and other structured securities linked to and secured by multiple
assets (the "Programme") including equities, commodities and thematic indices. These products are designed to offer investors efficient, transparent, and liquid
exposure to investment strategies. The Company operates in accordance with the terms of its latest base prospectus issued on 7 October 2025 and related
supplements, and its activities are conducted in compliance with applicable regulatory requirements in Jersey and other relevant jurisdictions.
The issuance of the Securities under the Prospectus which may be linked to and secured by quantities of relevant Underlying Assets including (i) an individual
underlying share, (ii) a basket of underlying shares, (iii) an index of underlying shares, (iv) an individual underlying fund, (v) a basket of underlying funds, (vi) an
index of underlying funds, (vii) an individual underlying cryptocurrency, (viii) a basket of underlying cryptocurrencies, (ix) an index of cryptocurrencies and (x)
cash.
The Securities are undated limited recourse debt obligations of the Issuer which are intended to provide investors with a return equivalent to holding the relevant
Underlying Asset(s), less fees, as set out in the relevant Issue Specific Option. All Securities are secured on the relevant Underlying Asset(s) which are deposited
with one or more Custodians appointed by the Company for the storage of such Underlying Asset(s), in accordance with the Issue Specific Option and relevant
Custody Agreement.
The Securities are made available by the Company for subscription exclusively to Authorised Participants under the Programme. Investors who are not Authorised
Participants may acquire or sell Securities on the secondary market for cash through the exchanges on which the Securities are listed, including the London Stock
Exchange, Euronext Paris, XETRA and Nasdaq Stockholm and Nasdaq Helsinki. While redemptions may generally only be requested by Authorised Participants,
Securityholders who are not Authorised Participants may, subject to the conditions set out in the Programme documentation, be permitted to redeem Securities
directly with the Company. This structure aligns with the Company's Base Prospectus framework for the issuance of exchange-traded, secured securities in tranche
and series.
The Company has issued a range of Exchange Traded Products (“ETPs”) under both the Swedish Financial Supervisory Authority ("SFSA") approved prospectus
and the UK Financial Conduct Authority ("FCA") approved prospectus, each supported by a regulator‑authorised Key Information Document (“KID”). The ETPs
provide exposure to a variety of underlying digital assets, physical commodities, and income‑generation strategies. Product descriptions and listing venues are
summarized below.
The Sprott Physical Uranium ETC provides investors with exposure to the performance of physical uranium through its holdings in the Sprott Physical Uranium
Trust (SRUUF), a Canadian trust‑structured ETP that stores physical uranium across three approved custodians.
The 2x Short Bitcoin ETP offers leveraged inverse exposure to Bitcoin’s daily performance, targeting –2x the daily return before fees and expenses. This exposure
is delivered via the ProShares UltraShort Bitcoin Strategy ETF, a US 40 Act ETF utilising derivatives such as futures and swaps.
London
Stock
Exchange
Xetra
Euronext
Paris
HANetf Multi-Asset ETC Issuer Plc
Page 3
Directors’ Report (continued)
2x Long Bitcoin ETP (2LBT)
Primary Listing (SFSA prospectus): Nasdaq Stockholm (12/03/2025)
Secondary Listing (SFSA prospectus): Nasdaq Helsinki (18/11/2025)
2x Long Ether ETP (2LET)
Primary Listing (SFSA prospectus): Nasdaq Stockholm (12/03/2025)
Secondary Listing (SFSA prospectus): Nasdaq Helsinki (18/11/2025)
MSTY Option Income strategy (MSTY)
Primary Listings:
Euronext Paris (16/06/2025) – SFSA prospectus
London Stock Exchange (12/06/2025) – FCA prospectus
Secondary Listing (SFSA prospectus): Xetra (20/06/2025)
ULTY Ultra Option Income strategy (ULTY)
Primary Listings:
Euronext Paris (13/11/2025) – SFSA prospectus
London Stock Exchange (13/11/2025) – FCA prospectus
Secondary Listing (SFSA prospectus): Xetra (17/11/2025)
Key performance indicators
During the year ended:
the Company made a profit of USD 4,335 (2024: USD Nil);
the net loss on Underlying Assets designated at fair value through profit or loss amounted to USD 30,580,665 (2024: USD Nil); and
the net gain on financial liabilities designated at fair value through profit or loss amounted to USD 30,580,665 (2024: USD Nil).
Units USD Units USD
BITU 44,992 993,893 - -
SRUUF 550,430 10,766,411 - -
SBIT 47,857 2,101,879 - -
ETHT 64,465 2,422,595 - -
MSTR 431,588 12,775,003 - -
ULTY 20,000 746,600 - -
29,806,381
-
Units USD Units USD
2LBT
37,699
988,801
-
-
SPUT
1,104,000
10,747,291
-
-
2SBT
60,437
2,095,173
-
-
2LET
40,100
2,399,500
-
-
MSTY
1,439,784
12,743,702
-
-
ULTY
40,000
746,019
-
-
29,720,486
-
2025
The fair value of financial liabilities as at 31 December 2025 amounted to:
2024
2024
The 2x Long Bitcoin ETP provides leveraged long exposure to Bitcoin, seeking to deliver 2x the daily performance before fees and expenses. Exposure is primarily
obtained through the ProShares Ultra Bitcoin 2x Strategy ETF (BITU), listed on NYSE Arca, with potential use of physical Bitcoin or derivatives.
The 2x Long Ether ETP provides leveraged long exposure to Ethereum’s daily performance, targeting 2x the daily return before fees and expenses. Exposure is
achieved through the ProShares 2x Ether ETF (BITX), listed on CBOE, alongside potential holdings of physical ether or derivative instruments.
The MSTR Option Income Strategy ETC provides investors with income generation and exposure to the share price performance of MicroStrategy Incorporated
(MSTR). The ETC holds the YieldMax® MSTR Option Income Strategy ETF, which generates monthly income by writing call options on MSTR shares.
The Company is a Special Purpose Vehicle (the ''SPV'') whose sole business is to issue Securities whose return is linked to the performance of the Underlying
Assets. Each Class of Securities will be separate (or ‘ring-fenced’) from each other Class of Securities. The benchmark is the price of the relevant Underlying
Assets in which the proceeds of the Securities are invested in. For all Classes, the performance closely follows the movement in the Underlying Assets linked to the
Class. To date Six Classes have been issued.
The Directors confirm that the key performance indicators as disclosed below are those that are used to assess the performance of the Company.
2025
The fair value of assets under management inclusive of TER as at 31 December 2025 amounted to:
The YieldMax® Ultra Option Income Strategy ETC (ULTY) generates income through its holding of the YieldMax® Ultra Option Income Strategy ETF (US
ULTY), which employs a diversified portfolio of covered‑call strategies designed to capture option premium while offering capped upside exposure.
HANetf Multi-Asset ETC Issuer Plc
Page 4
Directors’ Report (continued)
The Company is entitled to:
•
A TER Fee which is calculated by reducing the Equity Entitlement of each class of Security on a daily basis by an agreed amount (as set out below); and
•
The TER Fee rates for each class of Individual Security are:
% Rate (p.a)
• 2LBT
2%
• SPUT
0.55%
• 2SBT
2%
• 2LET
2%
• MSTY
0.59%
• ULTY
0.59%
During the year, the Company generated income from Creation and Redemption fees, TER Fees and Reinvestment fee income as follows:
2025 2024
USD USD
Creation and Redemption Fees
27,303
-
Reinvestment fee income
34,821
TER Fees
85,895
-
Total Fee Income
148,019
-
Future developments
Going concern
Geopolitical risk
Market review
Corporate social responsibility
The Board is not aware of any other developments that might have a significant effect on the operations of the Company in subsequent financial year not already
disclosed in this report or to the attached annual financial statements.
The financial statements of the Company have been prepared on a going concern basis. The Company is able to meet all of its liabilities from its assets. The
performance, marketability and risks of the Programme are reviewed on a regular basis throughout the financial year. Therefore the Board of Directors of the
Company believes that the Company will continue in operational existence for the foreseeable future and is financially sound. The Board of Directors is satisfied
that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements of the Company.
Creation and redemption fees on the issue and redemption of the Securities.
Strong governance and oversight by the Board - The Board maintained rigorous oversight of outsourced service providers, ensuring appropriate performance,
resilience, and adherence to Jersey regulatory standards. The SPV continued to apply a robust corporate governance framework consistent with its obligations
under the Companies (Jersey) Law 1991.
Responsible market participation; where the SPV supported the issuance of ESG-themed or sustainability-aligned products, it ensured that structures remained
compliant with applicable regulatory expectations and offered clear, accurate information to investors.
Environmental impact; the SPV’s direct environmental footprint remains minimal due to its non-operating model. Nonetheless, it continued to encourage digital-
first administration, reduced paper reliance, and adopted practices that reflect environmental responsibility across its outsourced ecosystem.
The SPV remains committed to strong governance, regulatory compliance, and responsible corporate behaviour. Although the entity does not employ staff or
engage directly in investment activity, it contributes to the broader HANetf ecosystem by ensuring that issuance processes are transparent, well-controlled, and
aligned with industry best practice.
Key CSR considerations for financial year 2025 included:
Commitment to transparency; the SPV continued to support high levels of transparency across product documentation, disclosure, and operational processes. This
aligns with the broader ESG ethos prevalent throughout the HANetf platform.
The business of the Company may be affected by factors that are beyond the Company’s control, such as geopolitical, economic and business conditions. Current
conflicts and possible outbreaks elsewhere in the world may lead to instability in certain regions together with sanctions being imposed against certain countries,
companies and/or individuals which could have an adverse economic impact.
The year 2025 was characterised by stabilising global economic conditions, moderating inflation, and increasing investor confidence in a gradual shift toward more
accommodative monetary policies. Major central banks, including the Federal Reserve and the ECB, continued to signal a data-dependent approach to interest-rate
reductions, supporting improved liquidity conditions across fixed-income and credit markets. Equity markets generally delivered positive returns, with technology,
energy transition, and AI-driven sectors leading performance.
The European ETP market experienced sustained growth, driven by strong institutional adoption and continued demand for specialised, thematic, and bespoke
exposures. Investors increasingly sought transparent and cost-efficient vehicles as part of broader portfolio-construction strategies. Demand for commodity linked,
leveraged, and structured ETPs remained robust, underscoring the importance of flexible issuance platforms.
For the Company, 2025 was an active year of issuance across multiple product categories, supported by improved market sentiment and expanding distributor
interest. Structured ETPs, collateralised exposures, and thematic product launches continued to feature prominently. While periods of geopolitical tension and
short-
term volatility created operational pressures, the SPV’s governance framework and service-provider oversight ensured stable and reliable issuance activity
throughout the year.
HANetf Multi-Asset ETC Issuer Plc
Page 5
Directors’ Report (continued)
Results and dividends for the year
Directors, Company Secretary and their interests
Auditor
Principal risks and uncertainties
Counterparty and credit risk
Operational and Outsourcing Risk
Market and Liquidity Risk
Legal and Regulatory Risk
Shares and shareholders
Subsequent events
Subsequent events have been disclosed in note 18 to the financial statements.
On behalf of the Board of Directors
Vinod Rajput
Director
Date: 16 April 2026
Further information on other financial and operational risks and uncertainties faced by the Company, including additional details relating to the value of Securities
and the Underlying Assets, is disclosed in note 16 to the financial statements.
Changes in applicable legislation, regulatory standards, or listing requirements of listing jurisdictions may affect the Company's operating model, increase
compliance obligations, or require amendments to documentation or internal procedures. The Company manages this risk by maintaining a robust governance
framework that enables timely updates to policies, procedures, and Programme documentation, and by relying on the Administrator and external legal advisors to
monitor regulatory developments and support ongoing compliance with applicable requirements.
The Company relies extensively on third-party providers for administration, trustee services, audit, and other operational functions, and failures, delays, or service
disruptions at any outsourced provider could impair operational effectiveness or regulatory compliance. The Company manages this risk through comprehensive
outsourcing arrangements and established oversight procedures, relying on the Administrator's regulated service environment and business continuity frameworks,
and has processes in place to ensure that operational exceptions and key service metrics are reported to the Board at quarterly meetings to support effective
governance and oversight.
The market price of the Securities may be affected by movements in the value and volatility of the underlying assets and broader market sentiment, resulting in
price volatility and the potential for investors to experience difficulty in disposing of Securities quickly or at favourable prices. While the Company is not directly
exposed to market fluctuations, volatility in the markets underlying the issued ETPs may influence trading volumes, investor demand, and issuance or redemption
activity, potentially reducing liquidity or increasing operational demands on service providers. Further details are provided in note 16 to the financial statements.
The Company has processes in place to manage the operational impact of such market conditions through established issuance and redemption mechanisms and
ongoing monitoring performed by its regulated service providers.
None of the Directors or the Company Secretary who held office on 31 December 2025 held any shares or Securities in the Company at that date, or during the
year. There were no contracts of any significance in relation to the business of the Company in which the Directors had any interest. As disclosed in note 15 to the
financial statements, Related Party Transactions and connected parties, Elizabeth Casely, Vinod Kumar Rajput and Helen Crowe (up to her date of resignation),
directors of the Company are employees of the Corporate Services Provider. Apex Financial Services (Nominees) Limited and Apex Financial Services (Nominees
2) Limited are affiliates of the Corporate Services Provider and Company's Administrator. Torsten Dueing is a director of the Company and an employee of
HANetf Limited. See note 15 to the financial statements for full details of the relationships entered into between the Company and its related parties.
The Independent Auditor is Baker Tilly Channel Islands Limited. A resolution to re-appoint Baker Tilly Channel Islands Limited will be proposed at the next board
meeting of the director on behalf of the shareholder.
The directors closely monitored the risks relevant to the SPV during the financial year 2025. The principal risks and uncertainties affecting the entity include:
The authorised share capital of the Issuer is GBP 2, divided into 2 limited shares of GBP 1 each. The issued shares of the Issuer are held by Apex Financial
Services (Nominees) and Apex Financial Services (Nominees 2) Limited as nominees subject to the orphan trust HANetf Multi-Asset Purpose Trust where Apex
Financial Services (Trust Company) Limited acts as trustee (the “Share Trustee”) in its capacity as trustee of the HANetf Multi-Asset Purpose Trust. The nominees
and Share Trustee have no beneficial interest in and derives no benefit (other than its fees for acting as Share Trustee) from their holding of the shares in the Issuer.
The Issuer is neither directly nor indirectly owned or controlled by any other party to the Programme.
The Company is exposed to the creditworthiness of custodians and other counterparties involved in the ETP structures, and any deterioration in their financial
condition could adversely impact product performance, collateral recoverability, or other settlement processes. The Company manages this risk by engaging only
regulated and reputable professional counterparties, including the Administrator and Custodian, which operate within established control frameworks, and has
processes in place to ensure that underlying assets are held by an independent custodian, with any matters identified through ongoing monitoring or formal
reporting escalated to the Board in line with established governance procedures.
The results for the year are set out on page 13. The Directors do not recommend the payment of a dividend for the year under review.
HANetf Multi-Asset ETC Issuer Plc
Page 6
Statement of Directors’ Responsibility
The directors are responsible for preparing the financial statements in accordance with applicable law and regulations.
•
•
•
•
•
•
•
By order of the Board
Vinod Rajput
Director
Date: 16 April 2026
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 year. 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;
the financial statements for the year ended 31 December 2025 give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Company as required by law and in accordance with IFRS as issued by the IASB; and
the Directors’ Report gives a fair view of the development and performance of the Company’s business, including financial position and the important events
that have occurred during the year, and their impact on these financial statements, together with a description of the principal risks and uncertainties they face.
With regard to Directive 2004/109/EC, amended by Directive 2013/50/EU (collectively the Transparency Directive), the Central Bank (Investment Market
Conduct) Rules of the Central Bank of Ireland and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the directors confirm that
to the best of their knowledge that:
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.
Independent auditor’s report
To the Members of HANetf Multi-Asset ETC Issuer Plc
Opinion
We have audited the financial statements of HANetf Multi-Asset ETC Issuer plc (the Company), which
comprise the statement of financial position as at 31 December 2025, and the statement of profit or loss
and other comprehensive income, and statement of changes in equity, and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant accounting
policies.
In our opinion, the accompanying financial statements:
• give a true and fair view of the financial position of the Company as at 31 December 2025, and
of its financial performance for the year then ended in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board, (“IFRS”); and
• have been prepared in accordance with the requirements of the Companies (Jersey) Law 1991,
as amended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs) 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 Jersey, including the FRC’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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period and include the most significant assessed risks of
material misstatement (whether or not due to fraud) identified by us, including 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 forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Page 7
Key audit matter
How our audit addressed the
matter
Key observations
communicated to those
charged with governance
Financial Assets – Existence,
Rights and Obligations and
Valuation
There is a risk that the financial
assets do not exist, or the rights
and rewards do not belong to
the Company.
There is a risk that the financial
assets are held at an
inappropriate value.
• Total Value; USD 29,720,486
(2024: Nil)
• As disclosed in Note 8.
We performed the following:
• Obtained confirmations from
the custodian and exchanges
with which the financial assets
are held.
• Obtained an understanding of
the custodian’s role, system and
safeguarding arrangements for
the financial assets and
evaluated whether they are
appropriate for the nature and
volume of assets held.
• Obtained prices used in the
valuation and compared to third-
party sources to determine the
reasonableness of the price; and
• Tested a sample of additions
and disposals to supporting
documentation.
Following completion of our
audit procedures, we are
satisfied that the financial
assets, as presented in the
financial statements, are not
materially misstated.
Financial Liabilities - Existence
and Valuation
There is a risk that the financial
liability is not fully recognised
which would materially
misstate the financial
statements.
• Total Value; USD 29,720,486
(2024: Nil)
• As disclosed in Note 11.
We obtained independent
confirmations from third-party
issuers of financial liability
certificates and reconciled them
with financial records to verify
liability existence.
To assess the valuation, we
performed the following
procedures:
• Recomputed the underlying
financial asset allocation/asset
entitled to investors in
accordance with the terms
outlined in the prospectus.
• Evaluated the reasonableness
of the valuation by comparing
the prices of the financial assets
to independent third-party
sources.
• Tested a sample of creations
and redemptions to supporting
documentation.
Following completion of our
audit procedures, we are
satisfied that the financial
liabilities, as presented in the
financial statements, are not
materially misstated.
Revenue Recognition
There is a risk that
management fee income (TER
fees) is inaccurate.
We obtained the daily input for
the management fee data. A
sample of daily transactions
was selected, and supporting
documentation was obtained to
ensure accuracy.
Following completion of our
audit procedures, we are
satisfied that revenue, as
presented in the financial
statements, are not materially
misstated.
Page 8
Our Application of Materiality
Materiality for the financial statements as a whole was set at USD 462,000 (PY: Nil), determined with
reference to a benchmark of gross assets, of which it represents approximately 1.5% (PY: Nil).
In line with our audit methodology, our procedures on individual account balances and disclosures were
performed to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk
that individually immaterial misstatements in individual account balances add up to a material amount
across the financial statements as a whole.
Performance materiality was set at approximately 60% (PY: Nil) of materiality for the financial statements
as a whole, which equates to USD 277,000 (PY: Nil). This reflects the nature of the Company as a newly
established issuer with complex financial instruments.
Conclusions relating to Going Concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis
of accounting in the preparation of the financial statements is appropriate.
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.
Other Information
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 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.
Page 9
Matters on which we are required to Report by Exception
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 Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies (Jersey)
Law 1991, as amended, requires us to report to you if, in our opinion:
• proper accounting records have not been kept;
• proper returns adequate for the audit have not been received from branches not visited by us;
• the financial statements are not in agreement with the accounting records and returns; and
• we have not obtained all information and explanation that, to the best of our knowledge and
belief, was necessary for the audit.
Responsibilities of the Directors
As explained more fully in the Directors’ responsibilities statement set out on page 6, the Directors are
responsible for the preparation of financial statements that give a true and fair view in accordance with
IFRSs, 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 management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
The Directors are responsible for overseeing the Company’s financial reporting process.
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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed
below:
• Enquiry of management to identify any instances of non-compliance with laws and regulations,
including actual, suspected or alleged fraud;
• Reading minutes of meetings of the Board of Directors;
• Review of management’s significant estimates and judgements for evidence of bias; and
• Review for undisclosed related party transactions;
• Using analytical procedures to identify any unusual or unexpected relationships; and
• Undertaking journal testing, including an analysis of manual journal entries to assess whether
there were large and/or unusual entries pointing to irregularities, including fraud.
A further description of the auditor’s responsibilities for the audit of the financial statements is located
at the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Page 10
Report on the examination of the ESEF report
Opinion
In addition to our audit of the annual financial statements, we have also examined that the Board of
Directors of HANetf Multi-Asset ETC Issuer plc has prepared the annual report for the financial year ended
31 December 2025 in compliance with the requirements for a uniform electronic reporting format (the
ESEF report), in accordance with the provisions of Commission Delegated Regulation (EU) 2019/815
regarding the regulatory technical standards on the specification of ESEF (RTS on ESEF).
Our examination and our opinion relate only to the statutory requirements.
In our opinion, the ESEF report has been prepared in a format that, in all material respects, enables
uniform electronic reporting.
Basis for opinion
We conducted our examination in accordance with International Standard on Assurance Engagements
(UK) 3000 Assurance Engagements Other Than Audits Or Reviews of Historical Financial Information.
Our responsibilities under those standards are further described in the Auditor’s responsibilities section
of our report. We are independent of the Company in accordance with the ethical requirements that are
relevant in Jersey, including the FRC’s Ethical Standard, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors
The Board of Directors is responsible for the preparation and fair representation of the ESEF report in
accordance with RTS on ESEF, and for such internal control as the Board of Directors determines is
necessary to enable the preparation of the ESEF report that is free from material misstatement, whether
due to fraud or error.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the ESEF report is in all material
respects prepared in a format that meets the requirements of Chapter 16, Section 4(a) of the Swedish
Securities Market Act, based on the procedures performed. Reasonable assurance is a high level of
assurance, but it is not a guarantee that an engagement carried out in accordance with ISAE (UK) 3000
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the ESEF report.
We apply ISQM (UK) 1 Quality Management for Firms that Perform Audits or Reviews of Financial
Statements, Or Other Assurance Or Related Services Engagements and accordingly we maintain a
comprehensive system of quality management, including documented policies and procedures
regarding compliance with professional ethical requirements, professional standards and legal and
regulatory requirements.
The examination involves obtaining evidence, through various procedures selected using our judgement,
that the ESEF report has been prepared in a format that enables uniform electronic reporting of the annual
report.
The examination included:
• Consideration of those elements of internal control that are relevant to the preparation of the
ESEF report by the Board of Directors;
• Evaluating that the ESEF report has been prepared in a valid format; and
• Reconciling the ESEF report with the audited annual report.
Page 11
Auditor’s report on the Management Report
Based on our audit of the financial statements as described above, it is our opinion that the information
presented in the Management Report concerning the financial statements and the going concern
assumption is consistent with the financial statements and complies with the applicable laws and
regulations.
Other Matters which we are Required to Address
We were appointed by board of directors on 30 January 2025 to audit the financial statements. Our total
uninterrupted period of engagement is 3 years.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Company and
we remain independent of the Company in conducting our audit.
Our audit opinion is consistent with the additional report to the audit committee in accordance with ISAs.
Use of this Report
This report is made solely to the Members of the Company, as a body, in accordance with Article 113A
of the Companies (Jersey) Law 1991, as amended. Our audit work has been undertaken so that we might
state to the 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 its Members, as a body, for our audit work, for this report, or for the
opinions we have formed.
Hafeez Azeez
For and on behalf of Baker Tilly Channel Islands Limited
Chartered Accountants
St Helier, Jersey
Date: 20 April 2026
Page 12
HANetf Multi-Asset ETC Issuer Plc
Page 13
Statement of Profit or Loss and Other Comprehensive Income
For the financial year ended 31 December 2025
Year ended Year ended
31-Dec-25 31-Dec-24
Notes USD USD
Income
Creation and redemption fee 6
27,303
-
Reinvestment fee income 6
34,821
TER fees 6
85,895
-
Bank interest
4,335
-
152,354
-
Net changes in fair value of Underlying Assets designated at fair value through profit or loss 4
(30,580,665)
-
Net changes in fair value of financial liabilities designated at fair value through profit or loss 5
30,580,665
-
Operating expenses 6
(148,019)
-
Operating profit
4,335
-
Total comprehensive income for the financial year
4,335
-
All of the items dealt with in arriving at the profit for the financial year are from continuing operations, no income is recognised in other comprehensive income.
The notes on pages 17 to 26 form an integral part of the financial statements.
HANetf Multi-Asset ETC Issuer Plc
Page 14
Statement of Financial Position
As at 31 December 2025
31-Dec-2431-Dec-25
USDUSDNotes
Assets
Current assets
8Underlying Assets designated at fair value through profit or loss
29,720,486
-
9Assets held for TER
85,895
-
10Cash and cash equivalents
1,399,438
-
11Other receivables
27,305
2
Total assets
231,233,124
Liabilities and equity
Current liabilities
12Financial liabilities designated at fair value through profit or loss
29,720,486
-
13Other payables
1,508,301
-
Total liabilities
-31,228,787
Shareholder's funds - Equity
14Share capital
2
2
Retained earnings
4,335
-
Total equity
24,337
Total liabilities and equity
231,233,124
Vinod Rajput
Director
The
financial
statements
on
pages
13
to
26
were
approved
and
authorised
for
issue
by
the
Board
of
the
Directors
on
16
April
2026
and
were
signed
on
its
behalf
by:
The notes on pages 17 to 26 form an integral part of the financial statements.
HANetf Multi-Asset ETC Issuer Plc
Page 15
Statement of Changes in Equity
For the financial year ended 31 December 2025
Share Retained Total
Capital Earnings Equity
USD USD USD
Balance as at 01 January 2024
2
-
2
Total comprehensive income for the financial year
-
-
-
Balance as at 31 December 2024
2 - 2
Balance as at 01 January 2025
2
-
2
Total comprehensive income for the financial year
-
4,335
4,335
Balance as at 31 December 2025
2 4,335 4,337
The notes on pages 17 to 26 form an integral part of the financial statements.
HANetf Multi-Asset ETC Issuer Plc
Page 16
Statement of Cash Flows
For the financial year ended 31 December 2025
Year ended Year ended
31-Dec-25 31-Dec-24
Notes USD USD
Cash flows from operating activities
Operating profit
4,335
-
Adjustments for non-cash transactions:
Net changes in fair value of Underlying Assets designated at fair value through profit or loss 4
30,580,665
-
Net changes in fair value of underlying liabilities designated at fair value through profit or loss 5
(30,580,665)
-
Movements in working capital:
Increase in assets held for TER
(85,895)
-
Increase in other receivables
(27,303)
-
Increase in other payables
1,508,301
-
Net cash generated from operating activities
1,399,438
-
Increase in cash and cash equivalents
1,399,438
-
Cash and cash equivalents at start of the financial year
-
-
Cash and cash equivalents at end of the financial year
10
1,399,438
-
Refer to Note 8 and Note 12 for details regarding non-cash transactions.
The notes on pages 17 to 26 form an integral part of the financial statements.
HANetf Multi-Asset ETC Issuer Plc
Page 17
Notes to the Financial Statements
For the financial year ended 31 December 2025
1 General information
2 Accounting Policies
The material accounting policies of the Company are described below.
Basis of Preparation
Going concern
The board of directors (the “Board”) has considered the Company's exposure to climate change and determined that due to the nature of the Company and its
operations there are no directly observed impacts of climate change on the business. As a result, the Board concluded that there is no basis on which to provide
extended information of analysis relating to climate change, including as part of the basis of accounting or individual accounting policies adopted by the
Company.
The Board has concluded specifically that climate change, including physical and transition risks, does not have a material impact on the recognition and
separate measurement considerations of the assets and liabilities in these financial statements as at 31 December 2025. This conclusion is based on the fact that
assets are reported at fair value under IFRS, and as set out in note 16 to the financial statements are categorised as Level 1 of the fair value hierarchy due to the
use of observable, verifiable inputs, including use of third party information sources within the agreed pricing formulae (set out in the Prospectus). The
liabilities are valued utilising listed market prices at year end. These observable inputs and market prices will reflect wider market sentiment, which inherently
includes market perspectives relating to the impact of climate change.
The 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, except for financial assets and financial liabilities held at fair value through profit
or loss.
The financial statements of the Company have been prepared on a going concern basis. The Company is able to meet all of its liabilities from its assets. The
performance, marketability and risks of the Programme are reviewed on a regular basis throughout the financial year. Therefore the Board believes that the
Company will continue in operational existence for the foreseeable future and is financially sound.
The Company is a public limited company incorporated on 09 November 2022 in Jersey under the Companies (Jersey) Law 1991, as amended (the "Act") with
registered number 146066 . The Company’s principal activity is the issuance and management of exchange traded securities linked to a diverse range of
underlying assets, including equities, commodities, cryptocurrencies, and thematic indices. These products are designed to offer investors efficient,
transparent, and liquid exposure to investment strategies. The Company operates in accordance with the terms of its base prospectus issued on 7 October 2025
and related supplements, and its activities are conducted in compliance with applicable regulatory requirements in Jersey and other relevant jurisdictions.
As at 31 December 2025, the Company had six classes of securities in issue and admitted to trading on regulated markets:
the Sprott Physical Uranium ETC (SPUT), the 2x Short Bitcoin ETP (2SBT), the 2x Long Bitcoin ETP (2LBT), the 2x Long Ether ETP (2LET), the MSTR
Option Income Strategy ETC (MSTY), and the YieldMax® Ultra Option Income Strategy ETC (ULTY).
The Sprott Physical Uranium ETC provides investors with exposure to the performance of physical uranium through holdings in the Sprott Physical Uranium
Trust (SRUUF), a Canadian Trust ETP with uranium stored across three approved custodians. SPUT is listed on the London Stock Exchange and Xetra.
The 2x Short Bitcoin ETP offers leveraged inverse exposure to Bitcoin’s daily performance, targeting two times the inverse (-2x) daily return before fees and
expenses. This exposure is delivered via the ProShares UltraShort Bitcoin Strategy ETF, a US 40 Act ETF employing derivatives such as futures and swaps.
The securities are listed on Nasdaq Stockholm and Nasdaq Helsinki.
The 2x Long Bitcoin ETP provides leveraged long exposure to Bitcoin’s daily movement, seeking to deliver two times (2x) the daily performance before fees
and expenses. Exposure is obtained through holdings in one or more underlying assets, including physical coins or derivatives. The primary underlying asset is
the ProShares Ultra Bitcoin 2x Strategy ETF (ticker: BITU), listed on NYSE Arca. The securities are admitted to trading on Nasdaq Stockholm and Nasdaq
Helsinki.
The 2x Long Ether ETP provides leveraged long exposure to the daily performance of Ethereum, targeting two times (2x) the daily return before fees and
expenses. Exposure is achieved through the ProShares 2x Ether ETF (ticker: BITX), a US 40 Act ETF listed on CBOE, as well as through potential holdings of
physical ether or derivative instruments. These securities are listed on Nasdaq Stockholm and Nasdaq Helsinki.
The MSTR Option Income Strategy ETC offers investors current income generation coupled with exposure to the share price performance of MicroStrategy
Incorporated (MSTR). To achieve this, the ETC holds the YieldMax® MSTR Option Income Strategy ETF, a US‑listed ETF that generates monthly income by
selling (writing) call options on MSTR shares. These securities are admitted to trading on the London Stock Exchange, Xetra, and Euronext Paris.
The YieldMax® Ultra Option Income Strategy ETC (ULTY) generates income through its holding of the YieldMax® Ultra Option Income Strategy ETC
(ULTY), which employs a diversified portfolio of covered-call strategies designed to capture option premium while offering capped upside exposure. The
ULTY securities are also listed on the London Stock Exchange, Xetra, and Euronext Paris.
All securities issued by the Company are constituted under the Trust Deed, which appoints the Trustee to act on behalf of the Securityholders of each class.
Under the Trust Deed, the relevant underlying assets and secured property are subject to fixed and floating charges and a pledge in favour of the Trustee to
secure the Company’s obligations. Under the Custody Agreements, custodians acknowledge the security interest granted to the Trustee, and any underlying
assets deposited may only be withdrawn with the approval of the Company or, in the event of an Event of Default, with the approval of the Trustee. These
arrangements ensure appropriate safeguarding and oversight of the underlying assets supporting each class of securities.
HANetf Multi-Asset ETC Issuer Plc
Page 18
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
Going concern (continued)
Accounting Standards
(a) Standards, amendments and interpretations considered by the Company:
•
Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates: lack of exchangeability.
(b) New and revised IFRSs in issue but not yet effective:
•
•
•
•
3 Material accounting policies
(a) Income and expenses
Operating Expenses
(b)
Cash and cash equivalents
(c) Share capital
The Company earns TER fee income through a daily reduction in the Underlying Asset entitlement attached to each class of Security. The TER is an
annualised rate applied to the entitlement on a daily basis, with each day's reduction representing the portion attributable to that day. TER fee income is
recognised on an accrual basis in line with this daily reduction. Please see Director's report where the TER % for each class of Security has been
disclosed.
The Company is entitled to receive Reinvestment Fee Income when dividends relating to the Underlying Assets of any class of Securities are reinvested
into the purchase of additional Underlying Assets. This fee income is recognised on an accrual basis at the point at which the corresponding dividend
reinvestment takes place.
Reinvestment Fee Expense
Cash and cash equivalents includes cash held at bank which are subject to insignificant risk of changes in their fair value, and are used by the Company in
the management of its capital.
There are no restrictions on cash and cash equivalents.
There were no other new standards, amendments and interpretations adopted in the current year that resulted in a significant effect on these financial
statements.
The Company has not applied the following new and revised IFRSs that have been issued but are not yet effective:
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.
IFRS 19 - Subsidiaries Without Public Accountability Disclosures (effective for annual periods beginning on or after 1 January 2027)
IFRS 18 - Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027)
Amendments to IFRS 7 and IFRS 9 - Classification and Measurement of Financial Instruments (effective for annual periods beginning on or after 1
January 2026)
Annual Improvements to IFRS Accounting Standards - Volume II (effective for reporting periods beginning on or after 1 January 2027)
Total Expense Ratio ("TER") Fee Income
The Company is entitled to receive Creation and Redemption Fee income arising on the issuance and redemption of Securities. Such fee income is
recognised on an accrual basis at the point when the corresponding subscriptions or redemptions occur when the Company's contractual right to receive
the fee is established.
Reinvestment Fee Income
The Company incurs Reinvestment Fee expenses in respect of dividend reinvestment services performed by HANetf Ltd, acting as the Management and
Determination Agent. These fees are calculated as a percentage of the dividend amount reinvested. Reinvestment Fee expenses are recognised on an
accrual basis at the point at which the reinvestment of the dividend received is made, representing the point at which the Company becomes liable for the
fee.
Fees arising on the issue and redemption of Securities are recognised at the fair value of the consideration expected to be received on the date the
transaction becomes legally binding. These fees form part of each creation or redemption and are settled directly between the Authorised Participants and
the Securities Counterparties, with amounts transferred directly to HANetf Limited by the Securities Counterparties. The related expense is recognised on
an accrual basis, consistent with the timing of the creation or redemption activity.
TER Expense
The TER represents the Company's total daily operating expense charge. It is expressed as a fixed annual rate applied to the Underlying Asset entitlement
of each Security. Each day, the entitlement is reduced by the portion of the TER applicable to that day, representing that day's operating expense. TER
expenses are recognised on an accrual basis in accordance with the daily reduction in Underlying Asset entitlement.
Share capital is issued in GBP. Dividends are recognised as a liability in the financial year in which they are approved.
The following are standards and amendments effective for accounting periods beginning on or after 1 January 2025 but which did not have any effect on
the financial statements of the Company.
The Board considers the operations of the Company to be ongoing, with a reasonable expectation that the Company has adequate resources to continue in
operational existence until 30 April 2027, and accordingly these financial statements have been prepared on the going concern basis.
The Company prepares its financial statements on an accrual basis, recognising income and expenses when it is earned or incurred, irrespective of when
the related cash is received or paid.
Creation and Redemption Fees
Revenue Recognition
Creation and Redemption Fee Expense
HANetf Multi-Asset ETC Issuer Plc
Page 19
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
3 Material accounting policies (continued)
(d) Other receivables
(e) Other payables
(f) Financial instruments
Financial assets
Classification
Financial assets are measured at fair value through profit or loss if:
Initial recognition
Derecognition
Subsequent measurement
Underlying Assets
Assets held for TER
Financial liabilities
Classification and measurement
- Securities
Derecognition
Assets Held for TER” represents the receivable for Total Expense Ratio (“TER”) which are amounts accrued but not yet received. The TER is earned
through a daily reduction of the Underlying Asset entitlement attached to each Security, which is contractually receivable by the Company at the time of
redemption of the related Securities.
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the
contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are
transferred. Any interest in transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability.
Net changes in fair value of underlying designated at fair value through profit or loss relates to movement in prices of Underlying Assets and includes all
realised and unrealised fair value changes.
The Company classifies its financial assets as financial assets at fair value through profit or loss at initial recognition in accordance with IFRS 9: Financial
Instruments.
its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest (SPPI) on the principal amount
outstanding;
it is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell; or
After initial measurement, the Company measures financial assets which are classified at fair value through profit or loss at their fair value. Subsequent
changes in the fair value of financial assets at fair value through profit or loss are recognised directly in the Statement of Profit or Loss and Other
Comprehensive Income. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
Creation and redemption fees receivable represent amounts due to the Company from authorised participants in connection with the issuance and
redemption of the Company's exchange-traded securities during the financial year. Under the Programme, authorised participants are required to pay
creation fees when new securities are issued and redemption fees when securities are redeemed; these fees compensate the Company for transaction-
related, custody, administrative and operational costs incurred as part of the issuance and redemption process. These activities and their fee structures are
defined within the Company's Base Prospectus, which sets out the Programme for issuing exchange-traded securities linked to multiple underlying assets,
including the related operational framework.
Other payables are accounted at amortised cost.
at initial recognition, it is irrevocably measured at fair value through profit or loss when doing so eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise measuring assets or recognising the gains and losses on them on different bases.
All financial liabilities (including financial liabilities designated at fair value through profit or loss) are recognised initially on the trade date, which is the
date that the Company becomes a party to the contractual provisions of the instrument.
The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.
The Company designates the Securities issued as financial liabilities at fair value through profit or loss on initial recognition.
The exchange quoted price of the Securities is determined by reference to the Underlying Assets. Changes in the fair value of the Securities are recognised
in the Statement of Profit or Loss and Other Comprehensive Income. The Securities have been at fair value through profit or loss in order to eliminate an
accounting mismatch, that would otherwise arise with the Underlying Assets, enabling both the Securities and the Underlying Assets to be measured at fair
value with gains or losses on both being recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Initial recognition
All financial assets (including financial assets at fair value through profit or loss) are recognised initially on the trade date, which is the date that the
Company becomes a party to the contractual provisions of the instrument.
The Company has its holding in the Underlying Assets at fair value through profit or loss as it is held for trading.
HANetf Multi-Asset ETC Issuer Plc
Page 20
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
3 Material accounting policies (continued)
(g) Financial instruments (continued)
Financial liabilities (continued)
Subsequent measurement
Offsetting
Fair value measurement principles
Net changes in fair value of financial liabilities designated at fair value through profit or loss
(h) Foreign currency transaction
Segmental Reporting
(i)
4 Net changes in fair value of Underlying Assets designated at fair value through profit or loss
SRUUF SBIT BITU ETHT MSTR ULTY Total
Year ended Year ended Year ended Year ended Year ended Year ended Year ended
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
31-Dec-25
31-Dec-25
USD USD USD USD USD
USD
USD
951,913
182,845
(1,115,198)
(2,894,465)
(27,545,480)
(160,280)
(30,580,665)
951,913 182,845 (1,115,198) (2,894,465) (27,545,480) (160,280) (30,580,665)
After initial measurement, the Company measures financial liabilities which are classified as at fair value through profit or loss at their fair value.
Subsequent changes in the fair value of financial liabilities designated at fair value through profit or loss are recognised directly in the Statement of Profit
or Loss and Other Comprehensive Income.
The indirect method has been applied in the preparation of the Statement of cash flows.
Unrealised fair value movement on
Underlying Assets designated at fair value
through profit or loss
Financial assets and liabilities are offset and the net amount presented in the Statement of Financial Position when, and only when, the Company has a
legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. No balances have
been offset on the Statement of Financial Position.
Net changes in fair value of financial liabilities designated at fair value through profit or loss relates to Securities issued and includes all realised and
unrealised fair value changes.
Transactions in foreign currencies are translated to the functional currency at the dates of the transactions. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on
monetary items is the difference between amortised cost in the functional currency at the beginning of the financial year, adjusted for effective interest
and payments during the financial year, and the amortised cost in foreign currency translated at the exchange rate at the end of the financial year.
At each reporting date, monetary items and non monetary assets and liabilities that are fair valued and are denominated in foreign currencies are translated
at the rate prevailing on the Statement of Financial Position. Gains and losses arising on retranslation of financial instruments at fair value through profit
or loss are included in the Statement of Profit or Loss and Other Comprehensive Income together with respective fair value gains/losses.
Whilst the Company has a number of different classes of Securities in issue, the financial information reviewed by the CODM is aggregated and not segregated
by those different classes of Securities and therefore the CODM concluded that these components do not meet the criteria of operating segments. Furthermore
the marketing of the Securities is undertaken on a centralised basis and the terms of the Securities of any class rank pari passu in all respects irrespective of
stock exchange listing.
As a result, the CODM determined that the Company is operating a single segment or product group, and one geographical segment which is Europe.
Therefore the Company discloses its results on an equivalent aggregated form and does not provide and further segmental information. In addition, the
Company has no single major customer from which greater than 10% of income is generated. All information relevant to the understanding of the Company’s
activities is included in these financial statements.
A segment is a distinguishable component of the Company that is engaged either in providing products or services (business segment), or in providing products
and services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other
segments. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by
the Chief Operating Decision Maker (“CODM”) in order to allocate resources to the segments and to assess their performance. The CODM has been
determined as the Board.
The fair value of the Securities is determined by reference to the Underlying Assets linking the Securities. Changes in the fair value of the Securities are
recognised in the Statement of Profit or Loss and Other Comprehensive Income. Securities are valued using valuation techniques, as detailed in note 16 to
the financial statements under the fair value hierarchy.
HANetf Multi-Asset ETC Issuer Plc
Page 21
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
5 Net changes in fair value of financial liabilities designated at fair value through profit or loss
SPUT 2SBT 2LBT 2LET MSTY ULTY Total
Year ended Year ended Year ended Year ended Year ended Year ended Year ended
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
31-Dec-25
31-Dec-25
USD USD USD USD USD
USD
USD
(951,913)
(182,845)
1,115,198
2,894,465
27,545,480
160,280
30,580,665
(951,913) (182,845) 1,115,198 2,894,465 27,545,480 160,280
30,580,665
6 Income and Operating Expenses
Year ended Year ended
31-Dec-25 31-Dec-24
USD
USD
Creation and redemption fee 27,303 -
Reinvestment fee income 34,821 -
TER fees 85,895 -
148,019
-
Creation and Redemption (C&R) Fee
27,303
-
Reinvestment Fees
34,821
-
Total Expense Ratio (TER)
85,895
-
148,019
-
7 Taxation
8 Underlying Assets designated at fair value through profit or loss
The below reconciliation of changes in the Assets include only non-cash changes.
SRUUF SBIT BITU ETHT MSTR ULTY Total
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
USD USD USD USD USD USD USD
Investment in Underlying Assets
10,747,289
2,095,173
988,802
2,399,499
12,743,704
746,019
29,720,486
10,747,289 2,095,173 988,802 2,399,499 12,743,704 746,019
29,720,486
SRUUF SBIT BITU ETHT MSTR ULTY Total
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
USD USD USD USD USD USD USD
At the start of financial year
-
-
-
-
-
-
Contributions
9,814,496
1,919,040
2,109,105
10,058,948
44,763,966
906,880
69,572,435
Redemptions
-
(20)
-
(4,741,889)
(4,443,480)
-
(9,185,389)
Assets held for TER
(19,120)
(6,692)
(5,105)
(23,095)
(31,302)
(581)
(85,895)
Unrealised fair value movement
951,913
182,845
(1,115,198)
(2,894,465)
(27,545,480)
(160,280)
(30,580,665)
At end of financial year
10,747,289 2,095,173 988,802 2,399,499 12,743,704 746,019
29,720,486
The Company is subject to Jersey Income Tax as per the Income Tax (Jersey) Law 1961. During the year the Jersey Income Tax rate applicable to the
Company is 0% (2024: 0%)
The financial assets are secured in favour of The Law Debenture Trust Corporation p.l.c. (the ''Security Trustee'') for the benefit of itself and the
Securityholders.
Each Class pays an “all in one” operational fee to the Arranger, which accrues at 2% for 2LBT, 2LET, 2SBT and 0.59% for MSTY and ULTY and 0.55% for
SPUT per annum equal to the TER. The Management and Determination Agent uses this fee to pay the agreed fees of other service providers of the Company.
The TER is applied to the Underlying Assets entitlement on a daily basis to determine a daily deduction of an amount of asset from the Underlying Asset
entitlement. Fees and expenses payable on a monthly basis by the Company to the Arranger will be paid out of the Securities by way of the sale of asset
accrued to the Company from the TER.
During the year ended 31 December 2025, there was no remuneration earned (2024: USD Nil) by the Directors of the Company in respect of services
provided to the Company as they are employees of the Arranger or the Administrator.
The Company had no employees during the financial year (2024: None).
Unrealised fair value movement on
financial liabilities designated at fair value
through profit or loss
HANetf Multi-Asset ETC Issuer Plc
Page 22
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
9 TER Fees 31-Dec-25 31-Dec-24
USD USD
Assets held for TER 85,895
-
TER Fees are recognised in Underlying Assets and receorded at fair value.
10 Cash and cash equivalents
31-Dec-25 31-Dec-24
USD USD
Cash at bank
Interactive brokers
479,672
-
Bank of New York Mellon
919,766
-
1,399,438
-
11 Other receivables
31-Dec-25 31-Dec-24
USD USD
Creation and Redemption (C&R) Fees receivable
27,303
-
Unpaid share capital receivable
2
2
27,305
2
12 Financial liabilities designated at fair value through profit or loss
The below reconciliation of changes in Securities, being liabilities arising from financing activities, includes only non-cash changes.
SPUT 2SBT 2LBT 2LET MSTY ULTY Total
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
USD USD USD USD USD USD USD
Securities issued for Underlying Assets
10,747,289
2,095,173
988,802
2,399,499
12,743,704
746,019
29,720,486
Total Securities issued
10,747,289 2,095,173 988,802 2,399,499 12,743,704 746,019
29,720,486
SPUT 2SBT 2LBT 2LET MSTY ULTY Total
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
USD USD USD USD USD USD USD
At the start of financial year
-
-
-
-
-
-
-
Issuances
9,814,496
1,919,040
2,109,105
10,058,948
44,763,966
906,880
69,572,435
Redemptions
-
(20)
-
(4,741,889)
(4,443,480)
-
(9,185,389)
TER Fee Payable
(19,120)
(6,692)
(5,105)
(23,095)
(31,302)
(581)
(85,895)
Unrealised fair value movement
951,913
182,845
(1,115,198)
(2,894,465)
(27,545,480)
(160,280)
(30,580,665)
At end of financial year
10,747,289 2,095,173 988,802 2,399,499 12,743,704 746,019
29,720,486
SPUT 2SBT 2LBT 2LET MSTY ULTY Total
31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25 31-Dec-25
Units Units Units Units Units Units Units
At the start of financial year
-
-
-
-
-
-
-
Units issued
1,104,000
60,437
37,699
92,103
1,623,000
40,000
2,957,239
Units redeemed
-
-
-
(52,003)
(183,216)
-
(235,219)
At end of financial year
1,104,000 60,437 37,699 40,100 1,439,784 40,000
2,722,020
13 Other payables
31-Dec-25 31-Dec-24
USD USD
Distribution payable
914,517
-
Advances from HANetf Limited
380,277
-
TER fee & Creation and Redemption fee payable
113,198
-
Reinvestment payable
65,488
-
MADA charges payable
34,821
-
1,508,301 -
As at 31 December 2025, creation and redemption fees receivable amounted to USD 27,703 (2024: USD Nil), representing fees earned but not yet received at
the reporting date. The Directors have assessed the recoverability of these receivables and consider the credit risk to be low due to the nature of the authorised
participants and the Company's monitoring and reconciliation processes. Accordingly, no provision for expected credit losses has been recognised.
HANetf Multi-Asset ETC Issuer Plc
Page 23
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
13 Other payables (continued)
The distribution payable refers to the amount still to be distributed for MSTY and ULTY Security holders still to be paid as at 31 December 2025.
14 Share capital
31-Dec-25 31-Dec-24
Authorised:
2 ordinary shares of GBP 1 each
2 2
Issued and partly paid
2 ordinary shares of GBP 1 each
2 2
Presented as follows:
Share capital presented as equity
2 2
15 Related party transactions
Transactions with Administrator
Transactions with Corporate service provider
Transactions with HANetf Limited
16 Financial risk management
The Company is not engaged in any other activities.
The Board has overall responsibility for the establishment and oversight of the Company’s risk management framework.
The risk profile of the Company is such that market, credit, liquidity and other risks of the financial assets are borne fully by the Securityholders.
The Company has exposure to the following risks from its use of financial instruments:
(a) Operational risk;
(b) Credit risk;
(c) Market risk; and
(d) Liquidity risk.
During the year HANetf Limited provided advances amounting USD 380,277 (2024: USD Nil) to pre-fund the Company and to facilitate the distribution and
reinvestment process. USD 380,277 (2024: USD Nil) is still payable as at 31 December 2025. No director has a service contract with the Company. The
directors of the Company who are employees within HANetf Limited do not receive separate remuneration in their capacity as directors of the Company. The
directors of the Company who are employees of Apex Financial Services (Alternative Funds) Limited ("corporate service provider") do not receive separate
remuneration in their capacity as directors of the Company.
HANetf Limited is the Management and Determination Agent of the Company. During the year ended 31 December 2025, The Management and
Determination Agent earned USD 85,895 under the TER fee, USD 27,303 under the Creation and Redemption fee and USD 34,821 under the Reinvestment
fee (2024: USD Nil) all of which is payable at 31 December 2025. In return the Management and Determination Agent pays all operating expenses as
described in note 6 to the financial statements.
The Company is a Special Purpose Vehicle (the ''SPV'') whose sole business is to issue Securities whose return is linked to the performance of the Underlying
Assets. Each Class of Securities will be separate (or ‘ring-fenced’) from each other Class of Securities. The benchmark is the price of the relevant Underlying
Assets in which the proceeds of the Securities are invested in. For all Classes, the performance closely follows the movement in the Underlying Assets linked
to the Class. To date Six Classes have been issued.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls,
and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company’s activities.
This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and
managing risk and the Company’s management of capital.
For the year ended 31 December 2025, Apex Corporate Services (Ireland) Limited provided administration services to the Company amounting to USD
113,836 (2024: USD Nil) which was settled by the Management and Determination Agent of the Company.
As mentioned under note 15 to the financial statements, HANetf Ltd provides advances to the Company to pre-fund the Company and to facilitate the
distribution reinvestment process.
For the year ended 31 December 2025, Apex Financial Services (Jersey) Limited provided corporate services to the Company amounting to USD 103,006
(2024: USD 68,534), USD 45,988 (2024: USD Nil) is still payable as at 31 December 2025 by the Management and Determination Agent of the Company.
Vinod Rajput, Elizabeth Casely and Helen Crowe (up to her date of resignation), provided director services to the Company and they did not receive any
separate remuneration from the Company.
HANetf Multi-Asset ETC Issuer Plc
Page 24
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
16 Financial risk management (continued)
(a)
Operational risk
(b) Credit risk
Credit risk on third parties in relation to Cash Redemption or Compulsory Cash Redemption
Custodian non-performance on Physical Redemption and in case of default
Cash and cash equivalents
Other receivables
(c) Market risk
(i) Interest rate risk
Interest rate risk is the risk that the fair value of the Securities will fluctuate because of changes in market interest rates. Changes in interest rates may
have a positive or negative impact on the price, demand, production costs, direct investment costs of the Underlying Assets and the returns from
investments in these Underlying Assets are therefore influenced by and may be correlated to these factors. The Company has deemed the effect of
these valuation fluctuations insignificant. As a result, the Company is not subject to significant interest rate risk.
In the case of a Cash Redemption or Compulsory Cash Redemption of the Securities, the Company will sell the Underlying Assets for the Securities being
redeemed. There is no requirement to require the counterparty to any such sale to grant any security or provide any collateral in respect of the obligations
it owes to the Company in respect of the sale. There may be circumstances in which such counterparty fails to perform its obligations under such sale and
fails to pay the consideration for the purchase of the Underlying Asset(s) to the Company. The Company will to the extent practicable assign to the
redeeming Securityholder its claims against such counterparty in respect of the redeeming Securityholder’s share in the proceeds of the sale of such
Underlying Assets that has not been paid, but it may not be practicable to assign such claims and such claims may be of little or no value. As a result, the
failure of a counterparty to pay such proceeds to the Company may result in loss to Securityholder.
The total carrying amounts of the Underlying Assets, assets held for TER, cash, and other receivables best represent the maximum credit risk exposure at
the reporting date. At the reporting date the Company’s Underlying Assets, assets held for TER, cash, and other receivables are detailed on the Statement
of Financial Position.
The Board monitors credit risk exposure, including through an assessment of the credit rating of the Underlying Asset Counterparties, in order to ensure
the Company's exposure is managed, and has continued to do so more closely with a focus on any potential impact of any geopolitical developments .
In the case of a Physical Redemption (i.e. a Securityholder receives the actual Underlying Asset) of the Securities, the Company will instruct the relevant
Custodian(s) to effect a transfer of the relevant Underlying Asset(s) for the Securities being redeemed to the Securityholder. There may be circumstances
in which a Custodian fails to effect instructions to transfer of the relevant Underlying Asset(s) for the Securities being redeemed to the Securityholder. In
that event, the Company will not be responsible to or liable to the Securityholder for such failure. The Company will to the extent practicable assign to the
redeeming Securityholder its claims against the relevant Custodian(s) in respect of the Underlying Asset(s) that have not been transferred, but it may not
be practicable to assign such claims and such claims may be of little or no value. As a result, a Custodian’s failure to effect such a transfer may result loss
to the Securityholder.
If a Custodian were to enter into an insolvency procedure then that may prevent or delay access to some or all Underlying Assets held as collateral with
respect to the Securities thereby causing a total or partial loss to investors. Redemptions could be delayed and the situation may also result in a
compulsory redemption at a time disadvantageous to an investor.
As at 31 December 2025, the Company held cash and cash equivalents with Bank of New York Mellon amounting to USD 919,766 (2024: USD Nil). The
Company also has agent accounts with interactive brokers amounting to USD 479,672 (2024: USD Nil). At 31 December 2025, the paying agent, Bank of
New York Mellon, has a credit rating of AA- (S&P) and Interactive Brokers (U.K.) Limited has a credit rating of A-/Stable/A-2 (S&P).
Market risk is the risk that changes in market prices (such as index and equity prices, interest rates and foreign exchange rates) will affect the Company’s
income or the value of its financial instruments held or issued. Market risk embodies the potential for both gains and losses and price risk.
The Bank of New York Mellon and Interactive Brokers (U.K.) Limited have been engaged as custodians. At 31 December 2025, the Bank of New York
Mellon has a credit rating of AA- (S&P) and Interactive Brokers (U.K.) Limited has a credit rating of A-/Stable/A-2 (S&P).
Other receivables mainly include unpaid share capital and C&R fees receivable as at the financial year end. The Board considers the probability of default
to be close to zero, resulting in minimal credit risk exposure.
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company's processes, personnel and
infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and
generally accepted standards of corporate behaviour.
Operational risk arises from all of the Company's operations. The Company was incorporated with the purpose of engaging in those activities outlined in
the preceding paragraphs. All management and administration functions were outsourced to Apex Fund Services (Ireland) Limited.
Credit/Counterparty risk refers to the risk that the Custodian will default on its contractual obligations resulting in the Company being unable to make
payment of amounts due to the Securityholders. Accordingly, the Company and the Securityholders are exposed to the creditworthiness of the Custodian.
HANetf Multi-Asset ETC Issuer Plc
Page 25
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
16 Financial risk management (continued)
(c) Market risk (continued)
(ii) Currency risk
(iii) Price risk
(d) Liquidity risk
Carrying
amount
Gross
contractual
cash flows
Less than one
year
One to five
years
More than five
years
USD USD USD USD USD
Financial liabilities designated at fair value through profit or loss
29,720,486
29,720,486
29,720,486
-
-
Other payables
1,508,301
1,508,301
1,508,301
-
-
31,228,787 31,228,787 31,228,787 -
-
The Company issued 2LBT, 2SBT, 2LET securities in SEK and invested in SBIT, BITU and ETHT denominated in SEK. The Company mitigates its
exposure to currency mainly by holding underlying assets against these liabilities in USD, therefore the directors consider currency risk as being not
relevant to the Company. Consequently, the Company has not presented any tabular information and sensitivity analysis in respect of currency risk.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities as they fall due. The
Company’s payables are all payable on demand and generally settled on a short-term basis. In addition, amounts in respect of the Management Fee, and
creation and redemption fees are transferred from the relevant counterparties directly to management and determination agent and there are no cash flows
through the Company.
The following are the earliest contractual maturities of financial liabilities as at 31 December 2025:
Issued Securities do not have a contractual maturity date and will only be redeemed at the request of the holder of the security, which may be requested at
any time.
The Company does not have a significant exposure to liquidity risk due to the buy-back of Securities being settled in transfer of Underlying Assets only.
The subscriptions and redemptions of the underling assets that are linked to Securities are primarily non-cash transactions, excluding the disposal of the
Underlying Assets/ETC in relation to the payment of the total expense ratio. Securities can be issued and redeemed daily, therefore this is the earliest
maturity date for the purpose of the maturity analysis.
Movements in local and international markets and factors that affect the investment climate and investor sentiment could all affect the level of trading
and, therefore, the market price of the Underlying Assets and/or the Securities. This may lead to a fall in the value of Securities which will have an
adverse impact on any investor that purchased the Securities at a higher price as that investor would suffer a loss as a result. These factors may have
different effects on each Class of Securities and, therefore, the impact may be different depending on which Securities an investor is holding.
The market price of the Securities will be affected by a number of factors including, but not limited to, the value and volatility of the Underlying
Asset and market perception. As a result, the price may be volatile and may fall rapidly and significantly. This could lead to an investor suffering a
loss as they may not be able to sell their Securities quickly and/or at a price such that the investor is able to prevent or minimise any loss of its
investment.
The Company does not consider market risk to be a significant risk to the Company as any fluctuation in the value of the Underlying Assets will
ultimately be borne by the Securityholders.
Therefore, assuming all other variables remain constant any increase/(decrease) in the market price of the Underlying Assets would have an equal
increase/(decrease) on the value of the Securities issued. As at 31 December 2025, a hypothetical 1% increase in the market price of the Underlying
Asset would have an increase of USD 54,835 (2024: USD Nil) on the value of the Securities issued. A hypothetical 1% decrease in the market price
of the Underlying Asset would have an equal but opposite impact on the value of the Securities issued. Each Security’s performance is correlated to
the performance of the Underlying Asset invested into. The correlation of the Security’ performance against this is a metric monitored by the Board.
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Currency risk is the risk which arises due to the assets and liabilities of the Company held in foreign currencies, which will be affected by fluctuations
in foreign exchange rates.
Price risk is the risk that the fair value of Underlying Assets or Securities will fluctuate because of changes in market prices whether those changes
are caused by factors specific to the assets, the individual Securities or its Company, or factors affecting similar assets or Securities traded in the
market. Local, regional or global events could have a significant impact on the Company and market prices of its investments. Securityholders are
exposed to market risk arising from market price of the Securities arising from its holding of Underlying Assets. The movements in the prices of these
holdings result in movements in the performance of the Securities. The value of Securities will be affected by movements in the market price of the
Underlying Asset to which a particular Class is linked.
HANetf Multi-Asset ETC Issuer Plc
Page 26
Notes to the Financial Statements (continued)
For the financial year ended 31 December 2025
16 Financial risk management (continued)
(e) Fair values
Level 1 Level 2 Level 3 Total
USD USD USD USD
Underlying Assets designated at fair value through profit or loss 29,720,486 - - 29,720,486
Financial liabilities designated at fair value through profit or loss (29,720,486) - - (29,720,486)
- - - -
17 Capital management
18
Subsequent events
There are no significant events after financial year end up to the date of signing this report that require disclosure and/or adjustment to the financial statements.
19 Commitments and Contingencies
20 Ultimate controlling party
There is no ultimate controlling party of the Company.
The Company view the Called up share capital as its capital. The primary objective of the Company’s capital management is to maintain shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions. In order to achieve this overall objective, the
Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to debt securities. The Company is not subject
to any other externally imposed capital requirements.
The fair value of a financial asset and liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The carrying amounts of all the Company’s financial assets and financial liabilities at the reporting
date approximated their fair values.
The Company’s financial assets and financial liabilities carried at fair value are analysed below by valuation method. The different levels have been
defined as follows:
The Company had no commitments or contingencies as at 31 December 2025 (2024: None).
Level 2: Valuation techniques based on observable inputs. This category includes instruments valued using: quoted market prices in active markets
for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all
significant inputs are directly or indirectly observable from market data.
Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes
inputs not based on observable data and the unobservable inputs could have a significant effect on the instrument’s valuation. This category includes
instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to
reflect differences between the instruments.
Although the directors believe that their estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different
measurements of fair value as fair value estimates are made at a specific point in time, based on market conditions and information about the financial
instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgement e.g. interest rates, volatility, credit
spreads, probability of defaults, estimates cashflows etc. and therefore, cannot be determined with precision.
For recognised fair values measured using significant unobservable inputs, changing one or more assumptions used to reasonably possible alternative
assumptions would not have any effect on the profit or loss or on equity as any change in fair value of the Underlying Assets will be borne by the
Securityholders due to the limited recourse nature of the Securities issued by the Company.
The valuation inputs for the Underlying Assets are based on quoted market prices in active markets as per acceptable registered benchmark and therefore,
the Underlying Assets are classified as Level 1 in the fair value hierarchy.
Securities issued by the Company are classified within Level 1. The fair value of the Securities issued is determined by reference to the exchange quoted
value of the Underlying Assets and adjusted for the Total Expense Ratio payable to the management and determination agent. This valuation technique
represents the price of the Securities at which Authorised Participants subscribe and request buy-backs of Securities directly with the Company. There are
no significant unobservable inputs to this valuation technique.
Fair value hierarchy as at 31 December 2025
Level 1: Quoted market price in an active market for an identical instrument.