UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22255
EGA Emerging Global Shares Trust
(Exact name of registrant as specified in charter)
155 West 19th Street, Floor 3
New York, NY 10011
(Address of principal executive offices) (Zip code)
Robert C. Holderith
155 West 19th Street, Floor 3
New York, NY 10011
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-888-800-4347
Date of fiscal year end: March 31
Date of reporting period: September 30, 2015
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached hereto.
EGA Emerging Global Shares Trust
Semi-Annual Report
September 30, 2015
EGShares Beyond BRICs ETF
EGShares Blue Chip ETF
EGShares Brazil Infrastructure ETF
EGShares EM Core ex-China ETF
EGShares EM Quality Dividend ETF
EGShares Emerging Markets Consumer ETF
EGShares Emerging Markets Core ETF
EGShares Emerging Markets Domestic Demand ETF
EGShares India Consumer ETF
EGShares India Infrastructure ETF
EGShares India Small Cap ETF
Table of Contents
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If the past twelve months have been difficult for emerging market (EM) and frontier market (FM) investors, the second and third quarters of 2015 were nerve racking. April started off on a very positive note with the broad based MSCI EM Index up 7.7% and most EGShares exchange-traded funds (ETFs) acted similarly. However, all but a percentage point of those gains were given up in May and the market continued to trend downward from June through September.
A number of factors contributed to this poor performance. First, another dramatic decline in oil and commodity prices supported fears of slowing growth in those developing countries that rely on commodity exports. Correlated to this was a sharp rise in the U.S. Dollar (USD), which normally coincides with lower oil prices and exacerbated downside pressure for USD-based investors invested in companies that are non-USD based. Additionally, with the U.S. economy appearing to gather momentum, continued expectations of an expected rate hike by the U.S. Federal Reserve weighed on EM and FM.
Frontier markets were not immune to these challenges and the MSCI FM Index followed suit as many oil-dependent economies, especially those in the Middle East, were hit hard. Overall, the MSCI EM Index was down 17.3% and the MSCI FM Index was down 10.6% from April 1 to September 30, 2015. Flows for both EM and FM ETFs were strongly negative, as were flows in EGShares ETFs. In total, U.S. EM equity ETFs lost $5.5 billion in assets.
As discussed in past editions of this letter, the investment approach at Emerging Global Advisors is based on applying a strategic beta approach to allocating within emerging markets. We continue to believe that long-term emerging market equity returns will likely be enhanced by sectors driven by domestic demand and smaller or less mature countries. Our EGShares Emerging Markets Consumer ETF (ECON), the EGShares Beyond BRICs ETF (BBRC) and the EGShares India Consumer ETF (INCO) are some of the largest of our funds that represent this approach.
During the third quarter, we launched an ETF that excludes companies domiciled in China. As the broad-based EM benchmarks plan to add China A-shares to their indices and increase the concentration in China, the EGShares EM Core ex-China ETF (XCEM) gives investors the opportunity to choose the style and size of their exposure to the world’s second largest economy or even exclude that exposure completely.
We thank you for the trust you have placed in us through your investment and look forward to improving conditions for emerging market and frontier market investors in the future.
Sincerely,
Robert C. Holderith
President
Emerging Global Advisors, LLC
EGA Emerging Global Shares Trust 1
This material must be accompanied or preceded by the prospectus.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. Small and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources, or a dependency upon a particular market niche.
Certain EGShares Funds (“Funds”) are non-diversified and, as a result, may have greater volatility than diversified-funds. A Fund may concentrate its investment in issuers of one or more particular industries to the same extent that the underlying index is concentrated. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. In certain circumstances, a Fund might not be able to dispose of certain holdings quickly or at prices that represent true market value preventing them from tracking the underlying index.
MSCI Emerging Markets Index is an index that is designed to measure equity market performance in global emerging markets.
MSCI Frontier Markets Index is an index that is designed to measure equity market performance of frontier markets.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.
This commentary represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. Past performance is no guarantee of future results.
Robert Holderith is a registered representative of ALPS Distributors, Inc. Emerging Global Advisors, LLC (“EGA”) and the Funds are distributed by ALPS Distributors, Inc. EGA and ALPS Distributors, Inc. are unaffiliated entities.
2 EGA Emerging Global Shares Trust
Industry Breakdown*
< Financials | 41.3 | % | ||
< Telecommunications | 16.1 | |||
< Industrials | 9.9 | |||
< Consumer Services | 9.5 | |||
< Consumer Goods | 8.9 | |||
< Oil & Gas | 5.6 | |||
< Utilities | 4.2 | |||
< Basic Materials | 3.1 | |||
< Health Care | 1.4 |
Top Ten Holdings*
Naspers, Ltd. N Shares | 3.2 | % | ||
America Movil SAB de CV Series L | 2.8 | |||
Fomento Economico Mexicano SAB de CV Series UBD | 2.6 | |||
MTN Group, Ltd. | 2.6 | |||
Bank Muscat SAOG | 2.2 | |||
Safaricom, Ltd. | 2.2 | |||
Guaranty Trust Bank PLC | 2.2 | |||
Public Bank Bhd | 2.1 | |||
Nigerian Breweries PLC | 2.1 | |||
Zenith Bank PLC | 2.0 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares Beyond BRICs ETF (ticker: BBRC)
The EGShares Beyond BRICs ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the FTSE Beyond BRICs Index (the “BBRC Underlying Index”). The BBRC Underlying Index is designed to represent the performance of a diversified basket of 90 liquid companies in Emerging and Frontier markets excluding Brazil, Russia, India, China (BRIC), Taiwan and Argentina as defined by FTSE’s Country Classification System. The BBRC Underlying Index is market capitalization weighted, and has 75% exposure to emerging markets and 25% to frontier markets at rebalance.
Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. These risks may be greater for investments in frontier markets. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources, or a dependency upon a particular market niche.
EGA Emerging Global Shares Trust 3
Sector Breakdown*
< Materials | 24.5 | % | ||
< Information Technology | 23.0 | |||
< Consumer Discretionary | 17.2 | |||
< Consumer Staples | 12.8 | |||
< Industrials | 6.7 | |||
< Telecommunication Services | 6.5 | |||
< Energy | 5.8 | |||
< Financials | 3.5 |
Top Ten Holdings*
Mondi PLC | 4.1 | % | ||
Jeronimo Martins SGPS SA | 4.0 | |||
LG Chem, Ltd. | 4.0 | |||
Pirelli & C. SpA | 3.8 | |||
Kansas City Southern | 3.8 | |||
Avago Technologies, Ltd. | 3.7 | |||
Visteon Corp. | 3.6 | |||
Swatch Group AG (The) | 3.6 | |||
Givaudan SA | 3.6 | |||
Old Mutual PLC | 3.5 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares Blue Chip ETF (ticker: BCHP)
The EGShares Blue Chip ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the EGAI Developed Markets Blue Chip EM Access IndexSM (the “BCHP Underlying Index”). The BCHP Underlying Index is an equal-weighted equity index comprised of 30 well-established, widely recognized companies that are domiciled and publicly traded in developed market countries (including the U.S.) and have, as of the most recent constitution, a U.S. Dollar equivalent market capitalization of at least $2 billion (based on then-current exchange rates) and measurable revenue from developing market countries.
The Fund’s foreign investments may be subject to increased volatility, and restrictions on currency trading may adversely affect the Fund’s portfolio. Although companies included in the BCHP Underlying Index are domiciled in developed market countries, the Fund has material indirect access to developing markets. The risks associated with foreign investments may be more pronounced in developing markets. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources, or a dependency upon a particular market niche.
4 EGA Emerging Global Shares Trust
Industry Breakdown*
< Utilities | 63.3 | % | ||
< Telecommunications | 12.4 | |||
< Basic Materials | 11.8 | |||
< Industrials | 10.3 | |||
< Health Care | 2.2 |
Top Ten Holdings*
Equatorial Energia SA | 6.1 | % | ||
Ultrapar Participacoes SA | 6.0 | |||
Telefonica Brasil SA Preference Shares | 5.8 | |||
Cia Paranaense de Energia Preference Shares Class B | 5.6 | |||
Companhia de Saneamento Basico do Estado de Sao Paulo | 5.5 | |||
Tractebel Energia SA | 5.4 | |||
EDP – Energias do Brasil SA | 5.3 | |||
CCR SA | 4.9 | |||
Tim Participacoes SA | 4.8 | |||
CPFL Energia SA | 4.7 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares Brazil Infrastructure ETF (ticker: BRXX)
The EGShares Brazil Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the FTSE Brazil Infrastructure Extended Index (the “BRXX Underlying Index”). The BRXX Underlying Index is a free-float adjusted capitalization weighted index designed to represent the performance of the 30 largest Brazilian companies ranked by full market capitalization that FTSE determines to be representative of Brazil’s infrastructure industries.
The Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. Because the Fund invests predominantly in Brazilian securities, its NAV will be much more sensitive to changes in economic, political and other factors within Brazil than would a Fund that invested in a greater variety of countries. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
EGA Emerging Global Shares Trust 5
Sector Breakdown*
< Financials | 28.0 | % | ||
< Information Technology | 20.8 | |||
< Materials | 9.7 | |||
< Consumer Discretionary | 9.4 | |||
< Consumer Staples | 8.4 | |||
< Energy | 8.2 | |||
< Telecommunication Services | 7.9 | |||
< Utilities | 3.2 | |||
< Industrials | 3.1 | |||
< Health Care | 1.3 |
Top Ten Holdings*
Samsung Electronics Co., Ltd. | 5.0 | % | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 3.9 | |||
Infosys, Ltd. ADR | 3.3 | |||
Vale SA Preference Shares | 2.7 | |||
ICICI Bank, Ltd. ADR | 2.3 | |||
HDFC Bank, Ltd. ADR | 2.2 | |||
Tata Motors, Ltd. ADR | 2.1 | |||
KT&G Corp. | 2.1 | |||
Petroleo Brasileiro SA Preference Shares | 2.1 | |||
Bidvest Group, Ltd. | 2.0 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares EM Core ex-China ETF (ticker: XCEM)
The EGShares EM Core ex-China ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the EGAI Emerging Markets ex-China IndexSM (the “XCEM Underlying Index”). The XCEM Underlying Index is a market capitalization weighted index designed to provide broad, core emerging markets equity exposure by measuring the stock performance of up to 700 companies across the EGAI Emerging Markets Universe, excluding those listed or domiciled in China and Hong Kong.
This Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. These risks may be greater for investments in frontier markets. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources, or a dependency upon a particular market niche.
6 EGA Emerging Global Shares Trust
Sector Breakdown*
< Financials | 18.7 | % | ||
< Telecommunication Services | 18.4 | |||
< Consumer Staples | 12.6 | |||
< Information Technology | 12.1 | |||
< Materials | 11.4 | |||
< Energy | 10.7 | |||
< Industrials | 7.9 | |||
< Utilities | 6.2 | |||
< Consumer Discretionary | 2.0 |
Top Ten Holdings*
Gulf International Services QSC | 2.3 | % | ||
Nigerian Breweries PLC | 2.3 | |||
Oman Telecommunications Co. SAOG | 2.3 | |||
Infosys, Ltd. | 2.3 | |||
Delta Electronics, Inc. | 2.2 | |||
PT Indofood Sukses Makmur Tbk | 2.2 | |||
CLP Holdings, Ltd. | 2.1 | |||
Tupras-Turkiye Petrol Rafinerileri AS | 2.1 | |||
British American Tobacco Malaysia Bhd | 2.1 | |||
China Merchants Bank Co., Ltd. Class H | 2.1 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares EM Quality Dividend ETF (ticker: HILO)
The EGShares EM Quality Dividend ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the EGAI Emerging Markets Quality Dividend IndexSM (the “HILO Underlying Index”). Effective as of January 26, 2015, the Fund began tracking the HILO Underlying Index instead of the FTSE Emerging All Cap ex Taiwan Low Volatility Dividend Index in order to pursue a more effective quality dividend investment strategy. The HILO Underlying Index is an equal weighted index designed to represent a portfolio of approximately 50 companies in developing markets that each have a higher dividend yield than the average dividend yield in the EGAI Developing Markets Universe.
Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. These risks may be greater for investments in frontier markets. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in a specific industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
EGA Emerging Global Shares Trust 7
Industry Breakdown*
< Consumer Services | 49.3 | % | ||
< Consumer Goods | 47.7 | |||
< Industrials | 3.0 |
Top Ten Holdings*
Naspers, Ltd. N Shares | 10.1 | % | ||
Ambev SA ADR | 6.1 | |||
Fomento Economico Mexicano SAB de CV Series UBD | 5.9 | |||
Steinhoff International Holdings, Ltd. | 5.7 | |||
Magnit PJSC GDR | 4.8 | |||
BRF SA ADR | 4.3 | |||
Wal-Mart de Mexico SAB de CV | 4.3 | |||
Grupo Televisa SAB Series CPO | 4.0 | |||
Ctrip.com International, Ltd. ADR | 3.6 | |||
Hengan International Group Co., Ltd. | 3.4 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares Emerging Markets Consumer ETF (ticker: ECON)
The EGShares Emerging Markets Consumer ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans 30 IndexSM (the “ECON Underlying Index”). The ECON Underlying Index is a free-float market capitalization weighted stock market index designed to measure the performance of 30 leading emerging market companies in the Consumer Goods and Consumer Services Industries, as defined by S&P Dow Jones Indices’ proprietary industry classification system.
This Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Mid-cap companies may have greater volatility in price than the stocks of large-cap companies due to limited product lines or resources or a dependency upon a particular market niche.
8 EGA Emerging Global Shares Trust
Sector Breakdown*
< Consumer Discretionary | 18.4 | % | ||
< Financials | 17.7 | |||
< Consumer Staples | 15.2 | |||
< Industrials | 11.5 | |||
< Health Care | 7.8 | |||
< Information Technology | 7.4 | |||
< Materials | 6.3 | |||
< Energy | 5.3 | |||
< Telecommunication Services | 5.3 | |||
< Utilities | 5.1 |
Top Ten Holdings*
PT Telekomunikasi Indonesia Persero Tbk ADR | 2.1 | % | ||
Wal-Mart de Mexico SAB de CV | 1.6 | |||
SM Investments Corp. | 1.5 | |||
Jollibee Foods Corp. | 1.4 | |||
LPP SA | 1.4 | |||
Naspers, Ltd. N Shares | 1.4 | |||
Fomento Economico Mexicano SAB de CV ADR | 1.4 | |||
Ayala Land, Inc. | 1.4 | |||
Steinhoff International Holdings, Ltd. | 1.4 | |||
Haci Omer Sabanci Holding AS | 1.3 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares Emerging Markets Core ETF (ticker: EMCR)
The EGShares Emerging Markets Core ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Emerging Markets Core Index (the “EMCR Underlying Index”). The EMCR Underlying Index is an equal weighted index designed to measure the market performance of up to 116 companies that S&P Dow Jones Indices determines to be representative of all industries domiciled in emerging market countries, subject to a 15% country cap.
Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
EGA Emerging Global Shares Trust 9
Sector Breakdown*
< Consumer Staples | 28.7 | % | ||
< Telecommunication Services | 28.1 | |||
< Consumer Discretionary | 28.1 | |||
< Health Care | 9.3 | |||
< Utilities | 5.8 |
Top Ten Holdings*
JD.Com, Inc. ADR | 5.2 | % | ||
Naspers, Ltd. N Shares | 5.0 | |||
China Mobile, Ltd. | 4.9 | |||
Ambev SA ADR | 4.8 | |||
America Movil SAB de CV, Series L ADR | 4.6 | |||
MTN Group, Ltd. | 4.5 | |||
Steinhoff International Holdings, Ltd. | 4.5 | |||
Fomento Economico Mexicano SAB de CV ADR | 4.4 | |||
Sun Pharmaceutical Industries, Ltd. | 3.4 | |||
Magnit PJSC GDR | 3.0 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares Emerging Markets Domestic Demand ETF (ticker: EMDD)
The EGShares Emerging Markets Domestic Demand ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Emerging Markets Domestic Demand Index (the “EMDD Underlying Index”). The EMDD Underlying Index is a free-float market capitalization weighted stock market index comprised of 50 emerging market companies that derive a significant portion of their revenues from sectors that are less reliant on exports and therefore driven by domestic demand, specifically those companies in the consumer staples, consumer discretionary, telecommunications services, healthcare and utilities sectors.
Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Mid-cap companies may have greater volatility in price than the stocks of large-cap companies due to limited product lines or resources or a dependency upon a particular market niche.
10 EGA Emerging Global Shares Trust
Industry Breakdown*
< Consumer Goods | 75.2 | % | ||
< Industrials | 13.0 | |||
< Consumer Services | 11.8 |
Top Ten Holdings*
Mahindra & Mahindra, Ltd. | 5.8 | % | ||
Zee Entertainment Enterprises, Ltd. | 5.6 | |||
Godrej Consumer Products, Ltd. | 5.6 | |||
Bajaj Auto, Ltd. | 5.5 | |||
Dabur India, Ltd. | 5.4 | |||
MRF, Ltd. | 5.1 | |||
Nestle India, Ltd. | 4.9 | |||
Hindustan Unilever, Ltd. | 4.9 | |||
United Spirits, Ltd. | 4.8 | |||
Hero MotoCorp, Ltd. | 4.5 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares India Consumer ETF (ticker: INCO)
The EGShares India Consumer ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Consumer Index (the “INCO Underlying Index”). The INCO Underlying Index is a maximum 30-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the consumer industry, as defined by Indxx’s proprietary methodology, in India.
This Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. Because the Fund invests predominantly in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a Fund that invested in a greater variety of countries. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
EGA Emerging Global Shares Trust 11
Industry Breakdown*
< Industrials | 44.7 | % | ||
< Telecommunications | 16.2 | |||
< Utilities | 14.4 | |||
< Consumer Goods | 9.6 | |||
< Basic Materials | 8.4 | |||
< Oil & Gas | 4.9 | |||
< Consumer Services | 1.8 |
Top Ten Holdings*
Idea Cellular, Ltd. | 5.1 | % | ||
NTPC, Ltd. | 5.0 | |||
Cummins India, Ltd. | 5.0 | |||
Bharti Infratel, Ltd. | 5.0 | |||
Ambuja Cements, Ltd. | 4.9 | |||
GAIL India, Ltd. | 4.9 | |||
UltraTech Cement, Ltd. | 4.8 | |||
Bharti Airtel, Ltd. | 4.7 | |||
Larsen & Toubro, Ltd. | 4.7 | |||
Aditya Birla Nuvo, Ltd. | 4.6 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares India Infrastructure ETF (ticker: INXX)
The EGShares India Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Infrastructure Index (the “INXX Underlying Index”). The INXX Underlying Index is a maximum 30-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the infrastructure industry, as defined by Indxx’s proprietary methodology, in India.
This Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. Because the Fund invests predominantly in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a Fund that invested in a greater variety of countries. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
12 EGA Emerging Global Shares Trust
Industry Breakdown*
< Financials | 24.4 | % | ||
< Industrials | 23.9 | |||
< Utilities | 10.8 | |||
< Technology | 10.8 | |||
< Consumer Goods | 10.5 | |||
< Oil & Gas | 7.0 | |||
< Consumer Services | 4.7 | |||
< Basic Materials | 4.4 | |||
< Health Care | 3.5 |
Top Ten Holdings*
Suzlon Energy, Ltd. | 3.5 | % | ||
SKS Microfinance, Ltd. | 3.4 | |||
Gujarat State Petronet, Ltd. | 3.0 | |||
Torrent Power, Ltd. | 2.9 | |||
Redington India, Ltd. | 2.8 | |||
Indraprastha Gas, Ltd. | 2.7 | |||
Dewan Housing Finance Corp., Ltd. | 2.6 | |||
SRF, Ltd. | 2.5 | |||
DCB Bank, Ltd. | 2.5 | |||
NCC, Ltd. | 2.4 |
* | Expressed as a percentage of total investments in securities as of 9/30/2015. Holdings are subject to change. |
EGShares India Small Cap ETF (ticker: SCIN)
The EGShares India Small Cap ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Small Cap Index (the “SCIN Underlying Index”). The SCIN Underlying Index is a maximum 75-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the small cap segment in India.
This Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Emerging market investments involve increased risks of illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and political instability, pervasive corruption and crime, less governmental regulation and less developed legal systems. They are also subject to the risk of capital loss from unfavorable fluctuation in currency values. Because the Fund invests predominantly in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a Fund that invested in a greater variety of countries. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is concentrated. Concentration risk results from investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. The Fund may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
EGA Emerging Global Shares Trust 13
As a shareholder of an EGShares ETF, you incur advisory fees and other Fund expenses, if any. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held throughout the entire period (April 1, 2015 to September 30, 2015), unless otherwise noted for Funds with operations less than six months.
Actual expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid Through 9/30/2015” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing Fund costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
14 EGA Emerging Global Shares Trust
Beginning Account Value | Ending Account Value 9/30/2015 | Annualized Expense Ratios2 | Expenses Paid During the Period | |||||||||||||
EGShares Beyond BRICs ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 803.22 | 0.58 | % | $ | 2.613 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,022.10 | 0.58 | % | $ | 2.933 | ||||||||
EGShares Blue Chip ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 901.00 | 0.60 | % | $ | 2.853 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,022.00 | 0.60 | % | $ | 3.033 | ||||||||
EGShares Brazil Infrastructure ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 657.40 | 0.85 | % | $ | 3.523 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.75 | 0.85 | % | $ | 4.293 | ||||||||
EGShares EM Core ex-China ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 980.50 | 0.35 | % | $ | 0.274 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,023.25 | 0.35 | % | $ | 1.775 | ||||||||
EGShares EM Quality Dividend ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 842.80 | 0.85 | % | $ | 3.923 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.75 | 0.85 | % | $ | 4.293 | ||||||||
EGShares Emerging Markets Consumer ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 822.31 | 0.84 | % | $ | 3.833 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.80 | 0.84 | % | $ | 4.243 | ||||||||
EGShares Emerging Markets Core ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 836.70 | 0.70 | % | $ | 3.213 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,021.50 | 0.70 | % | $ | 3.543 | ||||||||
EGShares Emerging Markets Domestic Demand ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 826.41 | 0.85 | % | $ | 3.883 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.75 | 0.85 | % | $ | 4.293 | ||||||||
EGShares India Consumer ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 880.78 | 0.89 | % | $ | 4.183 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.55 | 0.89 | % | $ | 4.503 | ||||||||
EGShares India Infrastructure ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 819.57 | 0.86 | % | $ | 3.913 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.70 | 0.86 | % | $ | 4.343 | ||||||||
EGShares India Small Cap ETF (Consolidated)6 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 847.25 | 0.85 | % | $ | 3.933 | ||||||||
Hypothetical1 | $ | 1,000.00 | $ | 1,020.75 | 0.85 | % | $ | 4.293 |
1 | Assuming 5% return before expenses. |
2 | Annualized expense ratios reflect expenses net of any waived fees or reimbursed expenses. |
3 | Expenses are calculated using each Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 183/366 (to reflect the six-month period). |
4 | Actual expenses are calculated using the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 29/366 (to reflect the period of September 2, 2015 to September 30, 2015). |
5 | Hypothetical expenses are calculated using the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 183/366 (to reflect the six-month period). |
6 | Expenses for these Funds include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 in the Notes to Financial Statements. |
EGA Emerging Global Shares Trust 15
Schedule of Investments
EGShares Beyond BRICs ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—100.4% | ||||||||
Bangladesh—1.5% | ||||||||
GrameenPhone, Ltd. | 349,119 | $ | 1,279,766 | |||||
Lafarge Surma Cement, Ltd. | 991,400 | 1,371,580 | ||||||
Total Bangladesh | 2,651,346 | |||||||
Chile—2.0% | ||||||||
Empresa Nacional de Electricidad SA | 1,022,724 | 1,200,979 | ||||||
Enersis SA | 6,244,830 | 1,569,017 | ||||||
S.A.C.I. Falabella | 144,258 | 891,804 | ||||||
Total Chile | 3,661,800 | |||||||
Colombia—0.4% | ||||||||
Ecopetrol SA | 1,627,543 | 701,181 | ||||||
Czech Republic—0.5% | ||||||||
CEZ AS | 48,112 | 1,000,386 | ||||||
Indonesia—6.9% | ||||||||
PT Astra International Tbk | 6,434,659 | 2,294,955 | ||||||
PT Bank Central Asia Tbk | 3,901,343 | 3,268,873 | ||||||
PT Bank Mandiri Persero Tbk | 2,990,486 | 1,617,720 | ||||||
PT Bank Rakyat Indonesia Persero Tbk | 3,453,010 | 2,038,808 | ||||||
PT Telekomunikasi Indonesia Persero Tbk | 15,575,145 | 2,812,031 | ||||||
PT Unilever Indonesia Tbk | 176,120 | 456,830 | ||||||
Total Indonesia | 12,489,217 | |||||||
Kenya—3.3% | ||||||||
Equity Group Holdings, Ltd. | 4,774,135 | 2,051,920 | ||||||
Safaricom, Ltd. | 27,300,420 | 3,963,385 | ||||||
Total Kenya | 6,015,305 | |||||||
Malaysia—11.2% | ||||||||
Axiata Group Bhd | 1,349,900 | 1,781,134 | ||||||
CIMB Group Holdings Bhd | 1,689,600 | 1,714,296 | ||||||
DiGi.Com Bhd | 1,205,700 | 1,522,297 | ||||||
IHH Healthcare Bhd | 813,800 | 1,105,246 | ||||||
Malayan Banking Bhd | 1,521,200 | 2,962,287 | ||||||
Maxis Bhd | 846,000 | 1,260,604 | ||||||
Petronas Gas Bhd | 254,000 | 1,268,916 | ||||||
Public Bank Bhd | 971,620 | 3,872,555 | ||||||
Sime Darby Bhd | 1,079,300 | 1,912,699 | ||||||
Tenaga Nasional Bhd | 1,120,100 | 3,062,868 | ||||||
Total Malaysia | 20,462,902 | |||||||
Mexico—15.6% | ||||||||
Alfa SAB de CV Class A | 697,673 | 1,357,327 | ||||||
America Movil SAB de CV Series L | 6,267,430 | 5,185,028 | ||||||
Arca Continental SAB de CV | 73,935 | 415,250 | ||||||
Cemex SAB de CV Series CPO | 3,055,170 | 2,125,508 | ||||||
Fomento Economico Mexicano SAB de CV Series UBD | 536,089 | 4,785,235 | ||||||
Grupo Bimbo SAB de CV Series A* | 522,503 | 1,319,920 | ||||||
Grupo Financiero Banorte SAB de CV Class O | 566,778 | 2,769,216 | ||||||
Grupo Financiero Inbursa SAB de CV Class O | 563,178 | 1,161,133 | ||||||
Grupo Mexico SAB de CV Series B | 969,950 | 2,342,063 | ||||||
Grupo Televisa SAB Series CPO | 651,113 | 3,388,742 | ||||||
Wal-Mart de Mexico SAB de CV | 1,411,214 | 3,456,680 | ||||||
Total Mexico | 28,306,102 |
Investments | Shares | Value | ||||||
Morocco—2.0% | ||||||||
Attijariwafa Bank | 106,650 | $ | 3,668,677 | |||||
Nigeria—6.3% | ||||||||
Guaranty Trust Bank PLC | 32,647,344 | 3,932,428 | ||||||
Nigerian Breweries PLC | 5,140,070 | 3,792,172 | ||||||
Zenith Bank PLC | 43,726,707 | 3,689,064 | ||||||
Total Nigeria | 11,413,664 | |||||||
Oman—2.2% | ||||||||
Bank Muscat SAOG | 2,812,450 | 3,986,495 | ||||||
Philippines—3.8% | ||||||||
Ayala Corp. | 73,650 | 1,208,591 | ||||||
Ayala Land, Inc. | 1,939,600 | 1,410,920 | ||||||
Philippine Long Distance Telephone Co. | 26,660 | 1,249,153 | ||||||
SM Investments Corp. | 112,913 | 2,151,241 | ||||||
SM Prime Holdings, Inc. | 1,939,800 | 857,015 | ||||||
Total Philippines | 6,876,920 | |||||||
Poland—5.3% | ||||||||
Bank Pekao SA | 40,081 | 1,627,462 | ||||||
Bank Zachodni WBK SA* | 9,546 | 736,808 | ||||||
PGE SA | 259,675 | 920,545 | ||||||
Polski Koncern Naftowy Orlen SA | 96,945 | 1,687,751 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 484,930 | 831,480 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA* | 266,208 | 2,060,328 | ||||||
Powszechny Zaklad Ubezpieczen SA | 17,588 | 1,802,486 | ||||||
Total Poland | 9,666,860 | |||||||
Qatar—7.5% | ||||||||
Barwa Real Estate Co. | 283,155 | 3,319,756 | ||||||
Ezdan Holding Group QSC | 684,925 | 3,516,728 | ||||||
Gulf International Services QSC | 126,495 | 2,257,568 | ||||||
Industries Qatar QSC | 84,651 | 2,858,849 | ||||||
Qatar Gas Transport Co., Ltd. | 86,020 | 525,749 | ||||||
Vodafone Qatar QSC | 302,000 | 1,126,058 | ||||||
Total Qatar | 13,604,708 | |||||||
South Africa—15.8% | ||||||||
Aspen Pharmacare Holdings, Ltd.* | 64,188 | 1,364,813 | ||||||
Barclays Africa Group, Ltd. | 65,048 | 800,692 | ||||||
FirstRand, Ltd. | 642,990 | 2,285,598 | ||||||
MTN Group, Ltd. | 364,895 | 4,697,426 | ||||||
Naspers, Ltd. N Shares | 46,218 | 5,784,888 | ||||||
Nedbank Group, Ltd. | 29,150 | 463,170 | ||||||
Remgro, Ltd. | 102,808 | 1,874,590 | ||||||
Sanlam, Ltd. | 372,332 | 1,610,288 | ||||||
Sasol, Ltd. | 116,185 | 3,256,911 | ||||||
Standard Bank Group, Ltd. | 255,047 | 2,490,153 | ||||||
Steinhoff International Holdings, Ltd. | 527,304 | 3,237,731 | ||||||
Vodacom Group, Ltd. | 89,645 | 891,458 | ||||||
Total South Africa | 28,757,718 |
The accompanying notes are an integral part of these financial statements.
16 EGA Emerging Global Shares Trust
Schedule of Investments (concluded)
EGShares Beyond BRICs ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | |||||||
Thailand—7.9% | |||||||||
Advanced Info Service PCL NVDR | 380,500 | $ | 2,369,280 | ||||||
Airports of Thailand PCL NVDR | 68,500 | 530,335 | |||||||
Bangkok Bank PCL NVDR | 123,520 | 544,516 | |||||||
CP ALL PCL NVDR | 1,328,900 | 1,748,312 | |||||||
Kasikornbank PCL NVDR | 370,600 | 1,746,042 | |||||||
PTT Exploration & Production PCL NVDR | 435,900 | 840,694 | |||||||
PTT PCL NVDR | 290,100 | 1,918,281 | |||||||
Siam Cement PCL NVDR | 220,250 | 2,815,705 | |||||||
Siam Commercial Bank PCL NVDR | 497,400 | 1,836,385 | |||||||
Total Thailand | 14,349,550 | ||||||||
Turkey—3.1% | |||||||||
Akbank TAS | 654,619 | 1,465,880 | |||||||
KOC Holding AS | 197,019 | 767,839 | |||||||
Turk Telekomunikasyon AS | 164,304 | 323,968 | |||||||
Turkcell Iletisim Hizmetleri AS | 245,891 | 856,791 | |||||||
Turkiye Garanti Bankasi AS | 676,748 | 1,571,312 | |||||||
Turkiye Is Bankasi Class C | 410,503 | 638,583 | |||||||
Total Turkey | 5,624,373 | ||||||||
United Arab Emirates—2.6% | |||||||||
Abu Dhabi Commercial Bank PJSC | 507,884 | 1,057,847 | |||||||
Emaar Malls Group PJSC* | 665,355 | 559,769 | |||||||
Emaar Properties PJSC | 1,083,010 | 1,904,854 | |||||||
First Gulf Bank PJSC | 333,799 | 1,267,815 | |||||||
Total United Arab Emirates | 4,790,285 | ||||||||
Vietnam—2.5% | |||||||||
HAGL JSC* | 5 | 4 | |||||||
Hoa Phat Group JSC | 1,115,300 | 1,508,403 | |||||||
Vingroup JSC* | 1,619,650 | 3,004,756 | |||||||
Total Vietnam | 4,513,163 | ||||||||
TOTAL INVESTMENTS IN SECURITIES—100.4% | |||||||||
(Cost: $234,066,444) | 182,540,652 | ||||||||
Liabilities in Excess of Other Assets—(0.4)% | (645,767 | ) | |||||||
Net Assets—100.0% | $ | 181,894,885 |
* | Non-income producing security. | |
NVDR | Non-Voting Depositary Receipts | |
PJSC | Private Joint Stock Company |
Summary by Industry | Value | % of Net Assets | ||||||
Basic Materials | $ | 5,598,974 | 3.1 | % | ||||
Consumer Goods | 16,302,097 | 9.0 | ||||||
Consumer Services | 17,421,667 | 9.6 | ||||||
Financials | 75,312,635 | 41.4 | ||||||
Health Care | 2,470,059 | 1.4 | ||||||
Industrials | 18,089,336 | 9.9 | ||||||
Oil & Gas | 10,273,710 | 5.6 | ||||||
Telecommunications | 29,318,379 | 16.1 | ||||||
Utilities | 7,753,795 | 4.3 | ||||||
Total Investments | 182,540,652 | 100.4 | ||||||
Liabilities in Excess of Other Assets | (645,767 | ) | (0.4 | ) | ||||
Net Assets | $ | 181,894,885 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 17
Schedule of Investments
EGShares Blue Chip ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—99.3% | ||||||||
Australia—3.0% | ||||||||
Fortescue Metals Group, Ltd. | 99,617 | $ | 127,320 | |||||
Belgium—3.3% | ||||||||
Anheuser-Busch InBev NV | 1,345 | 142,509 | ||||||
Canada—2.9% | ||||||||
Finning International, Inc. | 8,386 | 122,472 | ||||||
France—2.5% | ||||||||
Casino Guichard Perrachon SA | 2,043 | 108,324 | ||||||
Italy—3.8% | ||||||||
Pirelli & C. SpA | 9,803 | 163,811 | ||||||
Jersey—3.2% | ||||||||
Randgold Resources, Ltd. | 2,316 | 135,485 | ||||||
Luxembourg—6.4% | ||||||||
Millicom International Cellular SA | 2,187 | 136,377 | ||||||
Tenaris SA | 11,569 | 138,566 | ||||||
Total Luxembourg | 274,943 | |||||||
Netherlands—6.8% | ||||||||
Akzo Nobel NV | 2,314 | 149,788 | ||||||
NXP Semiconductors NV* | 1,633 | 142,185 | ||||||
Total Netherlands | 291,973 | |||||||
Norway—3.2% | ||||||||
Telenor ASA | 7,474 | 139,228 | ||||||
Portugal—4.0% | ||||||||
Jeronimo Martins SGPS SA | 12,626 | 169,759 | ||||||
Singapore—3.6% | ||||||||
Avago Technologies, Ltd. | 1,250 | 156,262 | ||||||
South Africa—4.0% | ||||||||
Mondi PLC | 8,273 | 173,311 | ||||||
South Korea—3.9% | ||||||||
LG Chem, Ltd. | 701 | 168,848 | ||||||
Switzerland—7.2% | ||||||||
Givaudan SA* | 95 | 154,104 | ||||||
Swatch Group AG (The) | 418 | 154,435 | ||||||
Total Switzerland | 308,539 | |||||||
Taiwan—9.7% | ||||||||
Catcher Technology Co., Ltd. | 14,020 | 149,237 | ||||||
Delta Electronics, Inc. | 30,766 | 143,891 | ||||||
Largan Precision Co., Ltd. | 1,584 | 123,151 | ||||||
Total Taiwan | 416,279 | |||||||
United Kingdom—6.0% | ||||||||
Noble Corp. PLC | 10,035 | 109,482 | ||||||
Old Mutual PLC | 52,754 | 151,108 | ||||||
Total United Kingdom | 260,590 |
Investments | Shares | Value | ||||||
United States—25.8% | ||||||||
Kansas City Southern | 1,775 | $ | 161,312 | |||||
Las Vegas Sands Corp. | 3,046 | 115,657 | ||||||
Mead Johnson Nutrition Co. | 1,799 | 126,650 | ||||||
QUALCOMM, Inc. | 2,501 | 134,379 | ||||||
Skyworks Solutions, Inc. | 1,588 | 133,725 | ||||||
Southern Copper Corp. | 5,215 | 139,345 | ||||||
Visteon Corp.* | 1,527 | 154,593 | ||||||
Yum! Brands, Inc. | 1,824 | 145,829 | ||||||
Total United States | 1,111,490 | |||||||
TOTAL INVESTMENTS IN SECURITIES—99.3% | ||||||||
(Cost: $5,242,333) | 4,271,143 | |||||||
Other Assets in Excess of Liabilities—0.7% | 28,573 | |||||||
Net Assets—100.0% | $ | 4,299,716 |
* | Non-income producing security. |
Summary by Sector | Value | % of Net Assets | ||||||
Consumer Discretionary | $ | 734,325 | 17.1 | % | ||||
Consumer Staples | 547,242 | 12.7 | ||||||
Energy | 248,048 | 5.8 | ||||||
Financials | 151,108 | 3.5 | ||||||
Industrials | 283,784 | 6.6 | ||||||
Information Technology | 982,830 | 22.8 | ||||||
Materials | 1,048,201 | 24.4 | ||||||
Telecommunication Services | 275,605 | 6.4 | ||||||
Total Investments | 4,271,143 | 99.3 | ||||||
Other Assets in Excess of Liabilities | 28,573 | 0.7 | ||||||
Net Assets | $ | 4,299,716 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
18 EGA Emerging Global Shares Trust
Schedule of Investments
EGShares Brazil Infrastructure ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—98.0% | ||||||||
Basic Materials—11.6% | ||||||||
Companhia Siderurgica Nacional SA | 334,233 | $ | 329,033 | |||||
Gerdau SA Preference Shares | 236,531 | 324,922 | ||||||
Metalurgica Gerdau SA Preference Shares | 163,820 | 120,131 | ||||||
Usinas Siderurgicas de Minas Gerais SA Preference Shares Class A | 263,071 | 221,321 | ||||||
Total Basic Materials | 995,407 | |||||||
Health Care—2.1% | ||||||||
Fleury SA | 45,255 | 184,682 | ||||||
Industrials—10.1% | ||||||||
Arteris SA | 32,144 | 76,688 | ||||||
CCR SA | 133,367 | 407,608 | ||||||
EcoRodovias Infraestrutura e Logistica SA | 119,096 | 182,445 | ||||||
JSL SA | 44,809 | 108,029 | ||||||
Santos Brasil Participacoes SA | 27,521 | 88,466 | ||||||
Total Industrials | 863,236 | |||||||
Telecommunications—12.2% | ||||||||
Oi SA Preference Shares* | 221,433 | 155,150 | ||||||
Telefonica Brasil SA Preference Shares | 52,877 | 486,947 | ||||||
Tim Participacoes SA | 212,793 | 401,330 | ||||||
Total Telecommunications | 1,043,427 |
Investments | Shares | Value | ||||||
Utilities—62.0% | ||||||||
AES Tiete SA Preference Shares | 54,713 | $ | 193,325 | |||||
Alupar Investimento SA | 42,531 | 159,146 | ||||||
Centrais Eletricas Brasileiras SA Preference Shares Class B | 123,012 | 270,308 | ||||||
Cia de Gas de Sao Paulo COMGAS Preference Shares Class A | 8,015 | 90,779 | ||||||
Cia de Transmissao de Energia Eletrica Paulista Preference Shares | 21,237 | 217,599 | ||||||
Cia Paranaense de Energia Preference Shares Class B | 57,553 | 471,761 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo | 117,075 | 465,719 | ||||||
Companhia de Saneamento de Minas Gerais | 34,278 | 107,174 | ||||||
Companhia Energetica de Minas Gerais Preference Shares | 143,564 | 252,015 | ||||||
Companhia Energetica de Sao Paulo Preference Shares Class B | 96,117 | 367,142 | ||||||
CPFL Energia SA* | 106,128 | 396,319 | ||||||
EDP—Energias do Brasil SA | 155,444 | 448,147 | ||||||
Equatorial Energia SA | 60,402 | 513,621 | ||||||
Light SA | 40,967 | 118,828 | ||||||
Tractebel Energia SA | 53,559 | 454,087 | ||||||
Transmissora Alianca de Energia Eletrica SA | 60,752 | 290,948 | ||||||
Ultrapar Participacoes SA | 30,028 | 503,741 | ||||||
Total Utilities | 5,320,659 | |||||||
TOTAL INVESTMENTS IN SECURITIES—98.0% | ||||||||
(Cost: $18,632,622) | 8,407,411 | |||||||
Other Assets in Excess of Liabilities—2.0% | 168,238 | |||||||
Net Assets—100.0% | $ | 8,575,649 |
* | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 19
Schedule of Investments
EGShares EM Core ex-China ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—98.4% | ||||||||
Brazil—11.9% | ||||||||
Ambev SA | 5,056 | $ | 24,658 | |||||
Banco Bradesco SA Preference Shares | 1,872 | 10,070 | ||||||
Banco do Brasil SA | 1,208 | 4,611 | ||||||
BB Seguridade Participacoes SA | 744 | 4,636 | ||||||
BRF SA | 1,360 | 24,110 | ||||||
Cia Brasileira de Distribuicao Preference Shares | 576 | 7,277 | ||||||
Cielo SA | 1,380 | 12,705 | ||||||
Itau Unibanco Holding SA Preference Shares | 1,644 | 10,945 | ||||||
Itausa—Investimentos Itau SA Preference Shares | 12,660 | 22,700 | ||||||
Kroton Educacional SA | 4,986 | 9,654 | ||||||
Petroleo Brasileiro SA Preference Shares* | 22,108 | 40,197 | ||||||
Ultrapar Participacoes SA | 616 | 10,334 | ||||||
Vale SA Preference Shares | 15,478 | 51,776 | ||||||
Total Brazil | 233,673 | |||||||
India—9.7% | ||||||||
HDFC Bank, Ltd. ADR | 698 | 42,641 | ||||||
ICICI Bank, Ltd. ADR | 5,190 | 43,492 | ||||||
Infosys, Ltd. ADR | 3,304 | 63,073 | ||||||
Tata Motors, Ltd. ADR* | 1,810 | 40,725 | ||||||
Total India | 189,931 | |||||||
Indonesia—3.1% | ||||||||
PT Astra International Tbk | 15,464 | 5,515 | ||||||
PT Bank Central Asia Tbk | 23,128 | 19,379 | ||||||
PT Bank Mandiri Persero Tbk | 19,284 | 10,432 | ||||||
PT Bank Rakyat Indonesia Persero Tbk | 21,324 | 12,591 | ||||||
PT Telekomunikasi Indonesia Persero Tbk | 78,536 | 14,179 | ||||||
Total Indonesia | 62,096 | |||||||
Malaysia—7.5% | ||||||||
Axiata Group Bhd | 4,400 | 5,806 | ||||||
CIMB Group Holdings Bhd | 16,400 | 16,640 | ||||||
IHH Healthcare Bhd | 9,200 | 12,495 | ||||||
Malayan Banking Bhd | 16,400 | 31,936 | ||||||
Public Bank Bhd | 4,800 | 19,131 | ||||||
Sime Darby Bhd | 12,200 | 21,620 | ||||||
Telekom Malaysia Bhd | 4,200 | 6,382 | ||||||
Tenaga Nasional Bhd | 12,800 | 35,001 | ||||||
Total Malaysia | 149,011 | |||||||
Mexico—7.1% | ||||||||
America Movil SAB de CV Series L | 27,828 | 23,022 | ||||||
Coca-Cola Femsa SAB de CV Series L | 3,778 | 26,199 | ||||||
Fibra Uno Administracion SA de CV | 5,244 | 10,803 | ||||||
Grupo Financiero Banorte SAB de CV Class O | 4,662 | 22,778 | ||||||
Grupo Financiero Santander Mexico SAB de CV Class B | 6,828 | 10,089 | ||||||
Grupo Mexico SAB de CV Series B | 11,466 | 27,686 | ||||||
Wal-Mart de Mexico SAB de CV | 6,916 | 16,940 | ||||||
Total Mexico | 137,517 |
Investments | Shares | Value | ||||||
Peru—0.6% | ||||||||
Credicorp, Ltd. | 114 | $ | 12,125 | |||||
Poland—1.2% | ||||||||
Powszechna Kasa Oszczednosci Bank Polski SA* | 1,666 | 12,894 | ||||||
Powszechny Zaklad Ubezpieczen SA | 102 | 10,453 | ||||||
Total Poland | 23,347 | |||||||
Russia—4.6% | ||||||||
Gazprom OAO ADR | 8,612 | 34,620 | ||||||
Lukoil OAO ADR | 734 | 24,927 | ||||||
Magnit PJSC GDR | 270 | 12,898 | ||||||
Sberbank of Russia ADR | 3,256 | 16,070 | ||||||
Total Russia | 88,515 | |||||||
South Africa—9.8% | ||||||||
Aspen Pharmacare Holdings, Ltd.* | 548 | 11,652 | ||||||
Bidvest Group, Ltd. | 1,610 | 37,985 | ||||||
FirstRand, Ltd. | 1,510 | 5,367 | ||||||
MTN Group, Ltd. | 2,284 | 29,403 | ||||||
Naspers, Ltd. N Shares | 244 | 30,541 | ||||||
Remgro, Ltd. | 756 | 13,785 | ||||||
Sanlam, Ltd. | 2,978 | 12,879 | ||||||
Sasol, Ltd. | 1,070 | 29,994 | ||||||
Standard Bank Group, Ltd. | 542 | 5,292 | ||||||
Steinhoff International Holdings, Ltd. | 2,498 | 15,338 | ||||||
Total South Africa | 192,236 | |||||||
South Korea—20.4% | ||||||||
Hana Financial Group, Inc. | 482 | 10,735 | ||||||
Hyundai Mobis Co., Ltd. | 124 | 24,218 | ||||||
Hyundai Motor Co. | 258 | 35,697 | ||||||
KB Financial Group, Inc. | 590 | 17,546 | ||||||
KIA Motors Corp. | 438 | 19,807 | ||||||
Korea Electric Power Corp. | 628 | 25,961 | ||||||
KT&G Corp. | 428 | 40,262 | ||||||
LG Chem, Ltd. | 56 | 13,489 | ||||||
LG Display Co., Ltd. | 540 | 10,319 | ||||||
NAVER Corp. | 60 | 25,968 | ||||||
POSCO | 158 | 22,461 | ||||||
Samsung Electronics Co., Ltd. | 100 | 95,672 | ||||||
Samsung Fire & Marine Insurance Co., Ltd. | 54 | 12,756 | ||||||
Samsung Sds Co., Ltd. | 62 | 15,065 | ||||||
Shinhan Financial Group Co., Ltd. | 184 | 6,427 | ||||||
SK Hynix, Inc. | 220 | 6,227 | ||||||
SK Telecom Co., Ltd. | 88 | 19,526 | ||||||
Total South Korea | 402,136 |
The accompanying notes are an integral part of these financial statements.
20 EGA Emerging Global Shares Trust
Schedule of Investments (concluded)
EGShares EM Core ex-China ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
Taiwan—16.6% | ||||||||
Advanced Semiconductor Engineering, Inc. | 10,696 | $ | 11,467 | |||||
Asustek Computer, Inc. | 1,320 | 11,325 | ||||||
Cathay Financial Holding Co., Ltd. | 11,754 | 16,046 | ||||||
China Steel Corp. | 21,954 | 12,801 | ||||||
Chunghwa Telecom Co., Ltd. | 6,790 | 20,374 | ||||||
Ctbc Financial Holding Co., Ltd. | 22,690 | 11,680 | ||||||
Delta Electronics, Inc. | 1,384 | 6,473 | ||||||
Formosa Chemicals & Fibre Corp. | 6,736 | 13,665 | ||||||
Formosa Plastics Corp. | 7,950 | 16,756 | ||||||
Fubon Financial Holding Co., Ltd. | 8,420 | 13,118 | ||||||
HON HAI Precision Industry Co., Ltd. | 12,375 | 32,171 | ||||||
Largan Precision Co., Ltd. | 122 | 9,485 | ||||||
MediaTek, Inc. | 3,412 | 25,232 | ||||||
Mega Financial Holding Co., Ltd. | 15,602 | 10,803 | ||||||
Nan Ya Plastics Corp. | 8,152 | 13,765 | ||||||
Taiwan Mobile Co., Ltd. | �� | 3,990 | 12,178 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 19,222 | 75,890 | ||||||
Uni-President Enterprises Corp. | 5,952 | 10,303 | ||||||
Total Taiwan | 323,532 | |||||||
Thailand—5.3% | ||||||||
Advanced Info Service PCL | 2,000 | 12,453 | ||||||
Bangkok Bank PCL | 3,600 | 15,870 | ||||||
Intouch Holdings PCL | 5,022 | 10,066 | ||||||
Kasikornbank PCL | 2,800 | 13,192 | ||||||
PTT PCL-NVDR | 2,800 | 18,515 | ||||||
Siam Cement PCL-NVDR | 1,200 | 15,341 | ||||||
Siam Commercial Bank PCL | 5,400 | 19,937 | ||||||
Total Thailand | 105,374 | |||||||
Turkey—0.6% | ||||||||
Turkiye Garanti Bankasi AS | 4,930 | 11,447 | ||||||
TOTAL INVESTMENTS IN SECURITIES—98.4% | ||||||||
(Cost: $1,982,072) | 1,930,940 | |||||||
Other Assets in Excess of Liabilities—1.6% | 30,409 | |||||||
Net Assets—100.0% | $ | 1,961,349 |
* | Non-income producing security. | |
ADR | American Depositary Receipts | |
GDR | Global Depositary Receipts | |
NVDR | Non-Voting Depositary Receipts | |
PJSC | Private Joint Stock Company |
Summary by Sector | Value | % of Net Assets | ||||||
Consumer Discretionary | $ | 181,495 | 9.3 | % | ||||
Consumer Staples | 162,647 | 8.3 | ||||||
Energy | 158,587 | 8.1 | ||||||
Financials | 541,296 | 27.6 | ||||||
Health Care | 24,147 | 1.2 | ||||||
Industrials | 59,605 | 3.0 | ||||||
Information Technology | 401,072 | 20.4 | ||||||
Materials | 187,740 | 9.6 | ||||||
Telecommunication Services | 153,389 | 7.8 | ||||||
Utilities | 60,962 | 3.1 | ||||||
Total Investments | 1,930,940 | 98.4 | ||||||
Other Assets in Excess of Liabilities | 30,409 | 1.6 | ||||||
Net Assets | $ | 1,961,349 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 21
Schedule of Investments (Consolidated)†
EGShares EM Quality Dividend ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—99.7% | ||||||||
Brazil—16.8% | ||||||||
Banco Bradesco SA Preference Shares | 58,348 | $ | 313,870 | |||||
BB Seguridade Participacoes SA | 50,260 | 313,151 | ||||||
CETIP SA | 43,498 | 359,393 | ||||||
Cielo SA | 35,865 | 330,193 | ||||||
Itau Unibanco Holding SA Preference Shares | 49,740 | 331,146 | ||||||
Itausa—Investimentos Itau SA Preference Shares | 152,003 | 272,555 | ||||||
Souza Cruz SA | 54,270 | 365,257 | ||||||
Telefonica Brasil SA Preference Shares | 34,788 | 320,365 | ||||||
Ultrapar Participacoes SA | 21,474 | 360,241 | ||||||
Total Brazil | 2,966,171 | |||||||
Chile—4.0% | ||||||||
Banco de Chile | 3,437,675 | 357,480 | ||||||
Empresa Nacional de Electricidad SA | 302,700 | 355,459 | ||||||
Total Chile | 712,939 | |||||||
China—9.5% | ||||||||
Agricultural Bank of China, Ltd. Class H | 811,259 | 306,706 | ||||||
China Construction Bank Corp. Class H | 504,365 | 335,157 | ||||||
China Merchants Bank Co., Ltd. Class H | 156,104 | 376,661 | ||||||
China Minsheng Banking Corp., Ltd. Class H | 380,420 | 350,475 | ||||||
CNOOC, Ltd. | 315,561 | 322,888 | ||||||
Total China | 1,691,887 | |||||||
Hong Kong—2.1% | ||||||||
CLP Holdings, Ltd. | 44,436 | 379,280 | ||||||
India—2.2% | ||||||||
Infosys, Ltd. | 22,463 | 397,637 | ||||||
Indonesia—9.8% | ||||||||
PT Indocement Tunggal Prakarsa Tbk | 284,635 | 319,607 | ||||||
PT Indofood Sukses Makmur Tbk | 1,010,854 | 379,501 | ||||||
PT Semen Indonesia Persero Tbk | 557,533 | 344,414 | ||||||
PT Telekomunikasi Indonesia Persero Tbk | 2,017,935 | 364,330 | ||||||
PT United Tractors Tbk | 282,570 | 337,059 | ||||||
Total Indonesia | 1,744,911 | |||||||
Malaysia—10.1% | ||||||||
British American Tobacco Malaysia Bhd | 27,500 | 377,365 | ||||||
DiGi.Com Bhd | 289,600 | 365,644 | ||||||
Gamuda Bhd | 332,100 | 331,666 | ||||||
Kuala Lumpur Kepong Bhd | 70,200 | 346,548 | ||||||
Petronas Gas Bhd | 72,400 | 361,692 | ||||||
Total Malaysia | 1,782,915 | |||||||
Nigeria—2.3% | ||||||||
Nigerian Breweries PLC | 554,868 | 409,363 |
Investments | Shares | Value | |||||||
Oman—2.3% | |||||||||
Oman Telecommunications Co. SAOG | 96,472 | $ | 404,471 | ||||||
Qatar—2.8% | |||||||||
Gulf International Services QSC | 22,980 | 410,126 | |||||||
Qatar Gas Transport Co., Ltd. | 15,506 | 94,772 | |||||||
Total Qatar | 504,898 | ||||||||
South Africa—9.9% | |||||||||
Bidvest Group, Ltd. | 15,147 | 357,363 | |||||||
Mondi, Ltd. | 16,887 | 354,435 | |||||||
MTN Group, Ltd. | 27,385 | 352,537 | |||||||
Sasol, Ltd. | 11,923 | 334,227 | |||||||
Woolworths Holdings, Ltd. | 50,899 | 356,333 | |||||||
Total South Africa | 1,754,895 | ||||||||
Taiwan—11.8% | |||||||||
Delta Electronics, Inc. | 81,468 | 381,021 | |||||||
Far EasTone Telecommunications Co., Ltd. | 171,774 | 370,388 | |||||||
MediaTek, Inc. | 43,930 | 324,864 | |||||||
Nan Ya Plastics Corp. | 187,509 | 316,620 | |||||||
Pegatron Corp. | 137,928 | 335,945 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 92,443 | 364,971 | |||||||
Total Taiwan | 2,093,809 | ||||||||
Thailand—7.9% | |||||||||
Advanced Info Service PCL NVDR | 57,100 | 355,548 | |||||||
Intouch Holdings PCL NVDR | 176,800 | 354,379 | |||||||
Siam Cement PCL NVDR | 26,800 | 342,615 | |||||||
Thai Union Group PCL NVDR | 688,200 | 348,888 | |||||||
Total Thailand | 1,401,430 | ||||||||
Turkey—6.1% | |||||||||
Enka Insaat ve Sanayi AS | 227,495 | 375,683 | |||||||
Eregli Demir ve Celik Fabrikalari TAS | 270,066 | 332,705 | |||||||
Tupras-Turkiye Petrol Rafinerileri AS* | 15,462 | 378,411 | |||||||
Total Turkey | 1,086,799 | ||||||||
United Arab Emirates—2.1% | |||||||||
Emirates Telecommunications Group Co. PJSC | 96,278 | 372,231 | |||||||
TOTAL INVESTMENTS IN SECURITIES—99.7% | |||||||||
(Cost: $20,260,849) | 17,703,636 | ||||||||
Other Assets in Excess of Liabilities—0.3% | 58,322 | ||||||||
Net Assets—100.0% | $ | 17,761,958 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. | |
NVDR | Non-Voting Depositary Receipts | |
PJSC | Private Joint Stock Company |
The accompanying notes are an integral part of these financial statements.
22 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)† (concluded)
EGShares EM Quality Dividend ETF
September 30, 2015 (Unaudited)
Summary by Sector | Value | % of Net Assets | ||||||
Consumer Discretionary | $ | 356,333 | 2.0 | % | ||||
Consumer Staples | 2,226,922 | 12.5 | ||||||
Energy | 1,900,665 | 10.7 | ||||||
Financials | 3,316,594 | 18.7 | ||||||
Industrials | 1,401,771 | 7.9 | ||||||
Information Technology | 2,134,631 | 12.0 | ||||||
Materials | 2,010,396 | 11.3 | ||||||
Telecommunication Services | 3,259,893 | 18.4 | ||||||
Utilities | 1,096,431 | 6.2 | ||||||
Total Investments | 17,703,636 | 99.7 | ||||||
Other Assets in Excess of Liabilities | 58,322 | 0.3 | ||||||
Net Assets | $ | 17,761,958 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 23
Schedule of Investments (Consolidated)†
EGShares Emerging Markets Consumer ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—101.0% | ||||||||
Brazil—13.5% | ||||||||
Ambev SA ADR | 9,065,181 | $ | 44,419,387 | |||||
BRF SA ADR | 1,764,194 | 31,385,011 | ||||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Preference Shares ADR | 656,227 | 8,229,087 | ||||||
Lojas Renner SA | 2,762,520 | 12,765,195 | ||||||
Total Brazil | 96,798,680 | |||||||
Chile—3.4% | ||||||||
Latam Airlines Group SA ADR* | 568,586 | 2,774,700 | ||||||
S.A.C.I. Falabella | 3,490,223 | 21,576,579 | ||||||
Total Chile | 24,351,279 | |||||||
China—16.7% | ||||||||
Belle International Holdings, Ltd. | 18,635,933 | 16,110,961 | ||||||
China Mengniu Dairy Co., Ltd. | 4,524,391 | 15,879,050 | ||||||
Ctrip.com International, Ltd. ADR* | 416,129 | 26,291,030 | ||||||
Hengan International Group Co., Ltd. | 2,524,358 | 24,543,116 | ||||||
Vipshop Holdings, Ltd. ADR* | 1,013,498 | 17,026,766 | ||||||
Want Want China Holdings, Ltd. | 24,130,914 | 19,802,790 | ||||||
Total China | 119,653,713 | |||||||
India—8.9% | ||||||||
Hindustan Unilever, Ltd. | 1,953,730 | 24,250,480 | ||||||
Maruti Suzuki India, Ltd. | 248,791 | 17,759,523 | ||||||
Tata Motors, Ltd. ADR* | 975,000 | 21,937,500 | ||||||
Total India | 63,947,503 | |||||||
Indonesia—3.0% | ||||||||
PT Astra International Tbk | 60,471,285 | 21,567,404 | ||||||
Malaysia—2.1% | ||||||||
Genting Bhd | 9,022,962 | 14,922,808 | ||||||
Mexico—16.3% | ||||||||
Fomento Economico Mexicano SAB de CV Series UBD | 4,826,703 | 43,084,093 | ||||||
Grupo Bimbo SAB de CV Series A* | 5,701,263 | 14,402,235 | ||||||
Grupo Televisa SAB Series CPO | 5,573,583 | 29,007,923 | ||||||
Wal-Mart de Mexico SAB de CV | 12,657,719 | 31,004,288 | ||||||
Total Mexico | 117,498,539 |
Investments | Shares | Value | |||||||
Philippines—2.6% | |||||||||
SM Investments Corp. | 995,140 | $ | 18,959,610 | ||||||
Russia—4.9% | |||||||||
Magnit PJSC GDR | 732,190 | 34,976,716 | |||||||
South Africa—24.8% | |||||||||
Mr Price Group, Ltd. | 895,701 | 12,502,372 | |||||||
Naspers, Ltd. N Shares | 582,943 | 72,964,210 | |||||||
Shoprite Holdings, Ltd. | 1,494,172 | 16,983,009 | |||||||
Steinhoff International Holdings, Ltd. | 6,671,496 | 40,964,057 | |||||||
Tiger Brands, Ltd. | 715,816 | 15,778,807 | |||||||
Woolworths Holdings, Ltd. | 2,687,556 | 18,815,030 | |||||||
Total South Africa | 178,007,485 | ||||||||
Thailand—4.8% | |||||||||
CP ALL PCL | 14,006,883 | 18,427,570 | |||||||
Thai Beverage PCL | 33,050,000 | 15,921,830 | |||||||
Total Thailand | 34,349,400 | ||||||||
TOTAL INVESTMENTS IN SECURITIES—101.0% | |||||||||
(Cost: $844,475,629) | 725,033,137 | ||||||||
Liabilities in Excess of Other Assets—(1.0)% | (7,249,880 | ) | |||||||
Net Assets—100.0% | $ | 717,783,257 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. | |
ADR | American Depositary Receipts | |
GDR | Global Depositary Receipts | |
PJSC | Private Joint Stock Company |
Summary by Industry | Value | % of Net Assets | ||||||
Consumer Goods | $ | 345,868,744 | 48.2 | % | ||||
Consumer Services | 357,226,893 | 49.8 | ||||||
Industrials | 21,937,500 | 3.0 | ||||||
Total Investments | 725,033,137 | 101.0 | ||||||
Liabilities in Excess of Other Assets | (7,249,880 | ) | (1.0 | ) | ||||
Net Assets | $ | 717,783,257 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
24 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Emerging Markets Core ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—100.1% | ||||||||
Brazil—6.7% | ||||||||
Ambev SA ADR | 12,193 | $ | 59,746 | |||||
Banco Bradesco SA Preference Shares ADR | 10,436 | 55,937 | ||||||
BRF SA ADR | 3,584 | 63,759 | ||||||
Itau Unibanco Holding SA Preference Shares ADR | 8,974 | 59,408 | ||||||
Petroleo Brasileiro SA ADR* | 12,465 | 54,223 | ||||||
Vale SA ADR | 9,504 | 39,917 | ||||||
Total Brazil | 332,990 | |||||||
Chile—3.8% | ||||||||
Empresa Nacional de Electricidad SA ADR | 1,590 | 56,461 | ||||||
Enersis SA ADR | 4,426 | 55,944 | ||||||
Latam Airlines Group SA ADR* | 2,974 | 14,513 | ||||||
S.A.C.I. Falabella | 10,937 | 67,613 | ||||||
Total Chile | 194,531 | |||||||
China—16.8% | ||||||||
AAC Technologies Holdings, Inc. | 5,101 | 31,758 | ||||||
Baidu, Inc. ADR* | 108 | 14,840 | ||||||
Bank of China, Ltd. Class H | 66,648 | 28,637 | ||||||
Belle International Holdings, Ltd. | 20,020 | 17,307 | ||||||
CGN Power Co., Ltd. Class H, 144A | 49,495 | 20,628 | ||||||
China Construction Bank Corp. Class H | 38,743 | 25,745 | ||||||
China Everbright International, Ltd. | 14,366 | 20,057 | ||||||
China Life Insurance Co., Ltd. ADR | 1,931 | 33,561 | ||||||
China Merchants Holdings International Co., Ltd. | 9,099 | 26,710 | ||||||
China Mobile, Ltd. ADR | 535 | 31,833 | ||||||
China Overseas Land & Investment, Ltd. | 10,938 | 33,026 | ||||||
China Pacific Insurance Group Co., Ltd. Class H | 5,692 | 21,042 | ||||||
China Railway Signal & Communication Corp., Ltd. Class H, 144A* | 25,662 | 20,662 | ||||||
China Resources Land, Ltd. | 7,818 | 18,319 | ||||||
China Resources Power Holdings Co., Ltd. | 8,539 | 19,480 | ||||||
China Unicom Hong Kong, Ltd. ADR | 1,734 | 22,143 | ||||||
CITIC, Ltd. | 13,627 | 24,792 | ||||||
CNOOC, Ltd. | 13,450 | 13,762 | ||||||
COSCO Pacific, Ltd.#§ | 20,488 | 20,786 | ||||||
Ctrip.com International, Ltd. ADR* | 515 | 32,538 | ||||||
GCL-Poly Energy Holdings, Ltd.* | 78,397 | 15,072 | ||||||
Haier Electronics Group Co., Ltd. | 9,189 | 15,319 | ||||||
Haitong Securities Co., Ltd. Class H | 13,123 | 18,897 | ||||||
Hanergy Thin Film Power Group, Ltd.#*§ | 60,421 | 604 | ||||||
Hengan International Group Co., Ltd. | 2,343 | 22,780 | ||||||
Industrial and Commercial Bank of China, Ltd. Class H | 44,505 | 25,612 | ||||||
JD.Com, Inc. ADR* | 830 | 21,630 | ||||||
Lenovo Group, Ltd. | 19,275 | 16,240 | ||||||
NetEase, Inc. ADR | 257 | 30,871 | ||||||
New Oriental Education & Technology Group, Inc. ADR | 1,131 | 22,858 | ||||||
PICC Property & Casualty Co., Ltd. Class H | 6,852 | 13,315 | ||||||
Ping An Insurance Group Co. of China, Ltd. Class H | 3,354 | 16,597 | ||||||
Semiconductor Manufacturing International Corp.* | 339,748 | 30,687 |
Investments | Shares | Value | ||||||
Shunfeng International Clean Energy, Ltd.* | 23,204 | $ | 5,898 | |||||
Sihuan Pharmaceutical Holdings Group, Ltd.#§ | 19,919 | 4,830 | ||||||
Sinopharm Group Co. Class H | 8,840 | 30,911 | ||||||
Tencent Holdings, Ltd. | 1,303 | 21,739 | ||||||
Want Want China Holdings, Ltd. | 27,812 | 22,824 | ||||||
Xinyi Solar Holdings, Ltd. | 57,549 | 19,604 | ||||||
ZTE Corp. Class H | 12,947 | 29,469 | ||||||
Total China | 863,383 | |||||||
Czech Republic—1.1% | ||||||||
CEZ AS | 2,796 | 58,137 | ||||||
Hong Kong—0.4% | ||||||||
Alibaba Pictures Group, Ltd.* | 89,196 | 19,796 | ||||||
India—16.0% | ||||||||
Adani Ports and Special Economic Zone, Ltd. | 9,000 | 40,996 | ||||||
Dr. Reddy's Laboratories, Ltd. | 801 | 50,793 | ||||||
Hindustan Unilever, Ltd. | 4,026 | 49,972 | ||||||
Housing Development Finance Corp., Ltd. | 2,715 | 50,162 | ||||||
Infosys, Ltd. ADR | 2,754 | 52,574 | ||||||
ITC, Ltd. | 13,087 | 65,555 | ||||||
Larsen & Toubro, Ltd. | 2,022 | 45,167 | ||||||
Lupin, Ltd. | 1,755 | 54,382 | ||||||
Mahindra & Mahindra, Ltd. | 2,757 | 53,082 | ||||||
Maruti Suzuki India, Ltd. | 750 | 53,537 | ||||||
Reliance Industries, Ltd. | 4,894 | 64,292 | ||||||
Sun Pharmaceutical Industries, Ltd.* | 3,914 | 51,781 | ||||||
Tata Consultancy Services, Ltd. | 934 | 36,826 | ||||||
Tata Motors, Ltd. ADR* | 1,733 | 38,992 | ||||||
Wipro, Ltd. | 5,750 | 52,371 | ||||||
Zee Entertainment Enterprises, Ltd. | 8,406 | 50,258 | ||||||
Total India | 810,740 | |||||||
Indonesia—4.1% | ||||||||
PT Astra International Tbk | 114,163 | 40,717 | ||||||
PT Telekomunikasi Indonesia Persero Tbk ADR | 3,028 | 107,948 | ||||||
PT Unilever Indonesia Tbk | 22,924 | 59,462 | ||||||
Total Indonesia | 208,127 | |||||||
Malaysia—5.6% | ||||||||
Genting Bhd | 38,200 | 63,178 | ||||||
Genting Malaysia Bhd | 59,000 | 55,702 | ||||||
IHH Healthcare Bhd | 38,000 | 51,609 | ||||||
Sime Darby Bhd | 37,400 | 66,279 | ||||||
Tenaga Nasional Bhd | 17,900 | 48,947 | ||||||
Total Malaysia | 285,715 | |||||||
Mexico—11.8% | ||||||||
Alfa SAB de CV Class A | 34,923 | 67,943 | ||||||
America Movil SAB de CV Series L ADR | 3,326 | 55,045 | ||||||
Cemex SAB de CV Series CPO* | 65,128 | 45,310 | ||||||
Fibra Uno Administracion SA de CV | 23,785 | 48,997 | ||||||
Fomento Economico Mexicano SAB de CV ADR | 792 | 70,686 | ||||||
Grupo Aeroportuario del Sureste SAB de CV Class B | 4,397 | 67,013 | ||||||
Grupo Mexico SAB de CV Series B | 20,928 | 50,533 | ||||||
Grupo Televisa SAB ADR | 1,650 | 42,933 | ||||||
Kimberly-Clark de Mexico SAB de CV Class A | 28,499 | 64,291 |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 25
Schedule of Investments (Consolidated)† (concluded)
EGShares Emerging Markets Core ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
Wal-Mart de Mexico SAB de CV | 32,586 | $ | 79,817 | |||||
Total Mexico | 592,568 | |||||||
Philippines—5.6% | ||||||||
Ayala Land, Inc. | 96,200 | 69,979 | ||||||
Jollibee Foods Corp. | 17,720 | 73,094 | ||||||
SM Investments Corp. | 4,040 | 76,971 | ||||||
SM Prime Holdings, Inc. | 145,300 | 64,194 | ||||||
Total Philippines | 284,238 | |||||||
Poland—2.5% | ||||||||
LPP SA | 35 | 71,978 | ||||||
Powszechny Zaklad Ubezpieczen SA | 568 | 58,211 | ||||||
Total Poland | 130,189 | |||||||
Russia—4.2% | ||||||||
Gazprom OAO ADR | 11,736 | 47,179 | ||||||
Lukoil OAO ADR | 1,297 | 44,046 | ||||||
Magnit PJSC GDR | 1,307 | 62,435 | ||||||
MMC Norilsk Nickel Pjsc ADR | 4,429 | 63,534 | ||||||
Total Russia | 217,194 | |||||||
South Africa—14.5% | ||||||||
Aspen Pharmacare Holdings, Ltd.* | 1,831 | 38,932 | ||||||
Bidvest Group, Ltd. | 2,093 | 49,380 | ||||||
FirstRand, Ltd. | 14,695 | 52,235 | ||||||
Life Healthcare Group Holdings, Ltd. | 20,845 | 53,684 | ||||||
MTN Group, Ltd. | 3,924 | 50,515 | ||||||
Naspers, Ltd. N Shares | 570 | 71,344 | ||||||
Netcare, Ltd. | 22,267 | 58,458 | ||||||
Remgro, Ltd. | 2,787 | 50,818 | ||||||
Sanlam, Ltd. | 10,374 | 44,866 | ||||||
Sasol, Ltd. ADR | 1,686 | 46,904 | ||||||
Shoprite Holdings, Ltd. | 4,001 | 45,476 | ||||||
Steinhoff International Holdings, Ltd. | 11,380 | 69,875 | ||||||
Tiger Brands, Ltd. | 2,112 | 46,555 | ||||||
Woolworths Holdings, Ltd. | 7,986 | 55,908 | ||||||
Total South Africa | 734,950 | |||||||
Thailand—2.3% | ||||||||
CP ALL PCL NVDR | 45,200 | 59,465 | ||||||
Siam Cement PCL NVDR | 4,550 | 58,168 | ||||||
Total Thailand | 117,633 | |||||||
Turkey—1.3% | ||||||||
Haci Omer Sabanci Holding AS | 23,256 | 68,130 |
Investments | Shares | Value | |||||||
United Arab Emirates—2.2% | |||||||||
DP World, Ltd. | 3,087 | $ | 65,568 | ||||||
Emaar Properties PJSC | 25,041 | 44,043 | |||||||
Total United Arab Emirates | 109,611 | ||||||||
United States—1.2% | |||||||||
Southern Copper Corp. | 2,306 | 61,616 | |||||||
TOTAL INVESTMENTS IN SECURITIES—100.1% | |||||||||
(Cost: $5,808,532) | 5,089,548 | ||||||||
Liabilities in Excess of Other Assets—(0.1)% | (2,976 | ) | |||||||
Net Assets—100.0% | $ | 5,086,572 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. | |
§ | Illiquid. | |
# | Fair valued security. | |
144A | Series 144A securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, Series 144A securities are deemed to be liquid. At September 30, 2015, the net value of these securities was $41,290, representing 0.81% of net assets. | |
ADR | American Depositary Receipts | |
GDR | Global Depositary Receipts | |
NVDR | Non-Voting Depositary Receipts | |
PJSC | Private Joint Stock Company |
Summary by Sector | Value | % of Net Assets | ||||||
Consumer Discretionary | $ | 937,659 | 18.4 | % | ||||
Consumer Staples | 772,823 | 15.2 | ||||||
Energy | 270,406 | 5.3 | ||||||
Financials | 901,731 | 17.7 | ||||||
Health Care | 395,380 | 7.8 | ||||||
Industrials | 586,175 | 11.5 | ||||||
Information Technology | 379,215 | 7.5 | ||||||
Materials | 319,078 | 6.3 | ||||||
Telecommunication Services | 267,484 | 5.3 | ||||||
Utilities | 259,597 | 5.1 | ||||||
Total Investments | 5,089,548 | 100.1 | ||||||
Liabilities in Excess of Other Assets | (2,976 | ) | (0.1 | ) | ||||
Net Assets | $ | 5,086,572 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
26 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Emerging Markets Domestic Demand ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—99.5% | ||||||||
Brazil—8.1% | ||||||||
Ambev SA ADR | 306,886 | $ | 1,503,741 | |||||
BRF SA ADR | 42,899 | 763,173 | ||||||
Telefonica Brasil SA ADR | 32,330 | 295,173 | ||||||
Total Brazil | 2,562,087 | |||||||
Chile—1.2% | ||||||||
Enersis SA ADR | 29,232 | 369,492 | ||||||
China—24.9% | ||||||||
Belle International Holdings, Ltd. | 425,128 | 367,528 | ||||||
CGN Power Co., Ltd. Class H, 144A | 722,539 | 301,134 | ||||||
China Mengniu Dairy Co., Ltd. | 83,595 | 293,390 | ||||||
China Mobile, Ltd. | 128,640 | 1,523,752 | ||||||
China Resources Power Holdings Co., Ltd. | 130,020 | 296,611 | ||||||
China Telecom Corp., Ltd. Class H | 1,090,860 | 525,017 | ||||||
China Unicom Hong Kong, Ltd. | 375,970 | 475,902 | ||||||
Ctrip.com International, Ltd., ADR* | 10,252 | 647,721 | ||||||
Hengan International Group Co., Ltd. | 51,663 | 502,294 | ||||||
Huaneng Power International, Inc. Class H | 250,315 | 269,047 | ||||||
JD.Com, Inc. ADR* | 63,031 | 1,642,588 | ||||||
Sinopharm Group Co. Class H | 84,952 | 297,056 | ||||||
Vipshop Holdings, Ltd. ADR* | 22,313 | 374,858 | ||||||
Want Want China Holdings, Ltd. | 458,409 | 376,189 | ||||||
Total China | 7,893,087 | |||||||
India—14.2% | ||||||||
Bharti Airtel, Ltd. | 114,097 | 587,259 | ||||||
Dr. Reddy's Laboratories, Ltd. ADR | 6,035 | 385,697 | ||||||
Hindustan Unilever, Ltd. | 46,621 | 578,678 | ||||||
ITC, Ltd. | 126,558 | 633,947 | ||||||
Lupin, Ltd. | 15,874 | 491,891 | ||||||
Mahindra & Mahindra, Ltd. | 21,964 | 422,884 | ||||||
Sun Pharmaceutical Industries, Ltd.* | 80,217 | 1,061,250 | ||||||
Tata Motors, Ltd. ADR* | 13,701 | 308,272 | ||||||
Total India | 4,469,878 | |||||||
Indonesia—3.9% | ||||||||
PT Astra International Tbk | 1,464,517 | 522,328 | ||||||
PT Telekomunikasi Indonesia Persero Tbk ADR | 19,092 | 680,630 | ||||||
Total Indonesia | 1,202,958 | |||||||
Malaysia—3.0% | ||||||||
Axiata Group Bhd | 281,100 | 370,899 | ||||||
Tenaga Nasional Bhd | 206,800 | 565,486 | ||||||
Total Malaysia | 936,385 | |||||||
Mexico—14.3% | ||||||||
America Movil SAB de CV, Series L ADR | 86,240 | 1,427,272 | ||||||
Fomento Economico Mexicano SAB de CV ADR | 15,408 | 1,375,164 | ||||||
Grupo Televisa SAB ADR | 31,382 | 816,560 | ||||||
Wal-Mart de Mexico SAB de CV | 355,219 | 870,087 | ||||||
Total Mexico | 4,489,083 | |||||||
Philippines—0.9% | ||||||||
Philippine Long Distance Telephone Co., ADR | 5,905 | 272,575 |
Investments | Shares | Value | ||||||
Russia—3.9% | ||||||||
Magnit PJSC GDR | 19,555 | $ | 934,142 | |||||
Mobile TeleSystems PJSC ADR | 40,597 | 293,110 | ||||||
Total Russia | 1,227,252 | |||||||
South Africa—21.4% | ||||||||
Aspen Pharmacare Holdings, Ltd.* | 21,377 | 454,534 | ||||||
Mr. Price Group, Ltd. | 16,496 | 230,254 | ||||||
MTN Group, Ltd. | 110,165 | 1,418,194 | ||||||
Naspers, Ltd. N Shares | 12,587 | 1,575,455 | ||||||
Netcare, Ltd. | 82,478 | 216,529 | ||||||
Shoprite Holdings, Ltd. | 23,896 | 271,606 | ||||||
Steinhoff International Holdings, Ltd. | 227,026 | 1,393,976 | ||||||
Tiger Brands, Ltd. | 12,310 | 271,351 | ||||||
Vodacom Group, Ltd. | 41,035 | 408,065 | ||||||
Woolworths Holdings, Ltd. | 72,270 | 505,948 | ||||||
Total South Africa | 6,745,912 | |||||||
Thailand—2.9% | ||||||||
Advanced Info Service PCL | 86,400 | 537,991 | ||||||
CP ALL PCL NVDR | 279,700 | 367,976 | ||||||
Total Thailand | 905,967 | |||||||
Turkey—0.8% | ||||||||
BIM Birlesik Magazalar AS | 14,114 | 250,092 | ||||||
TOTAL INVESTMENTS IN SECURITIES—99.5% | ||||||||
(Cost: $34,562,361) | 31,324,768 | |||||||
Other Assets in Excess of Liabilities—0.5% | 166,873 | |||||||
Net Assets—100.0% | $ | 31,491,641 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. | |
144A | Series 144A securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, Series 144A securities are deemed to be liquid. At September 30, 2015, the net value of these securities was $301,134, representing 0.96% of net assets. | |
ADR | American Depositary Receipts | |
GDR | Global Depositary Receipts | |
NVDR | Non-Voting Depositary Receipts | |
PJSC | Private Joint Stock Company |
Summary by Sector | Value | % of Net Assets | ||||||
Consumer Discretionary | $ | 8,808,372 | 28.0 | % | ||||
Consumer Staples | 8,991,830 | 28.6 | ||||||
Health Care | 2,906,957 | 9.2 | ||||||
Telecommunication Services | 8,815,839 | 28.0 | ||||||
Utilities | 1,801,770 | 5.7 | ||||||
Total Investments | 31,324,768 | 99.5 | ||||||
Other Assets in Excess of Liabilities | 166,873 | 0.5 | ||||||
Net Assets | $ | 31,491,641 | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 27
Schedule of Investments (Consolidated)†
EGShares India Consumer ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—99.7% | ||||||||
Consumer Goods—75.0% | ||||||||
Apollo Tyres, Ltd. | 579,198 | $ | 1,587,853 | |||||
Bajaj Auto, Ltd. | 122,675 | 4,321,098 | ||||||
Bosch, Ltd. | 11,015 | 3,253,285 | ||||||
Dabur India, Ltd. | 1,002,194 | 4,213,979 | ||||||
Emami, Ltd. | 126,781 | 2,226,200 | ||||||
Exide Industries, Ltd. | 937,657 | 2,223,436 | ||||||
GlaxoSmithKline Consumer Healthcare, Ltd. | 20,975 | 1,933,269 | ||||||
Godrej Consumer Products, Ltd. | 234,381 | 4,355,723 | ||||||
Hero MotoCorp, Ltd. | 96,410 | 3,516,968 | ||||||
Hindustan Unilever, Ltd. | 306,241 | 3,801,186 | ||||||
Marico, Ltd. | 529,184 | 3,258,626 | ||||||
Motherson Sumi Systems, Ltd. | 890,747 | 3,125,892 | ||||||
MRF, Ltd. | 6,193 | 3,956,571 | ||||||
Nestle India, Ltd. | 39,645 | 3,845,909 | ||||||
Page Industries, Ltd. | 10,385 | 2,099,798 | ||||||
Procter & Gamble Hygiene & Health Care, Ltd.* | 18,218 | 1,733,902 | ||||||
Tata Global Beverages, Ltd. | 781,455 | 1,521,480 | ||||||
TVS Motor Co., Ltd. | 424,697 | 1,488,445 | ||||||
United Breweries, Ltd. | 136,779 | 1,837,160 | ||||||
United Spirits, Ltd.* | 78,996 | 3,723,908 | ||||||
Whirlpool of India, Ltd.* | 55,967 | 558,775 | ||||||
Total Consumer Goods | 58,583,463 |
Investments | Shares | Value | ||||||
Consumer Services—11.7% | ||||||||
Dish TV India, Ltd.* | 575,666 | $ | 932,695 | |||||
Indian Hotels Co., Ltd.* | 942,175 | 1,235,133 | ||||||
Jubilant Foodworks, Ltd. | 59,064 | 1,440,922 | ||||||
Sun TV Network, Ltd. | 216,034 | 1,182,362 | ||||||
Zee Entertainment Enterprises, Ltd. | 731,717 | 4,374,807 | ||||||
Total Consumer Services | 9,165,919 | |||||||
Industrials—13.0% | ||||||||
Bharat Forge, Ltd. | 238,757 | 3,301,096 | ||||||
Mahindra & Mahindra, Ltd. | 233,169 | 4,489,320 | ||||||
Tata Motors, Ltd.* | 521,709 | 2,373,283 | ||||||
Total Industrials | 10,163,699 | |||||||
TOTAL INVESTMENTS IN SECURITIES—99.7% | ||||||||
(Cost: $82,125,381) | 77,913,081 | |||||||
Other Assets in Excess of Liabilities—0.3% | 215,145 | |||||||
Net Assets—100.0% | $ | 78,128,226 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
28 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares India Infrastructure ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—99.4% | ||||||||
Basic Materials—8.3% | ||||||||
NMDC, Ltd. | 767,919 | $ | 1,089,172 | |||||
Steel Authority of India, Ltd. | 1,071,322 | 838,093 | ||||||
Vedaa, Ltd. | 1,207,460 | 1,558,072 | ||||||
Total Basic Materials | 3,485,337 | |||||||
Consumer Goods—9.5% | ||||||||
Aditya Birla Nuvo, Ltd. | 58,575 | 1,913,280 | ||||||
Cummins India, Ltd. | 125,035 | 2,086,584 | ||||||
Total Consumer Goods | 3,999,864 | |||||||
Consumer Services—1.8% | ||||||||
Dish TV India, Ltd.* | 465,171 | 753,670 | ||||||
Industrials—44.5% | ||||||||
Adani Ports and Special Economic Zone, Ltd. | 413,231 | 1,882,329 | ||||||
Amara Raja Batteries, Ltd. | 84,346 | 1,323,078 | ||||||
Ambuja Cements, Ltd. | 653,535 | 2,049,018 | ||||||
Bharat Heavy Electricals, Ltd. | 576,995 | 1,806,845 | ||||||
Eicher Motors, Ltd. | 5,418 | 1,468,539 | ||||||
Gujarat Pipavav Port, Ltd.* | 281,798 | 795,723 | ||||||
Havells India, Ltd. | 212,026 | 814,801 | ||||||
Larsen & Toubro, Ltd. | 86,898 | 1,941,106 | ||||||
National Buildings Construction Corp., Ltd. | 12,674 | 185,264 | ||||||
Shree Cement, Ltd.* | 8,400 | 1,502,383 | ||||||
Siemens, Ltd. | 92,819 | 1,874,975 | ||||||
UltraTech Cement, Ltd. | 48,556 | 1,977,599 | ||||||
Voltas, Ltd. | 238,870 | 976,368 | ||||||
Total Industrials | 18,598,028 |
Investments | Shares | Value | ||||||
Oil & Gas—4.9% | ||||||||
GAIL India, Ltd. | 444,018 | $ | 2,044,891 | |||||
Telecommunications—16.1% | ||||||||
Bharti Airtel, Ltd. | 379,811 | 1,954,893 | ||||||
Bharti Infratel, Ltd. | 384,727 | 2,081,886 | ||||||
Idea Cellular, Ltd. | 929,950 | 2,118,031 | ||||||
Tata Communications, Ltd. | 90,398 | 569,601 | ||||||
Total Telecommunications | 6,724,411 | |||||||
Utilities—14.3% | ||||||||
CESC, Ltd. | 52,734 | 415,228 | ||||||
JSW Energy, Ltd. | 280,814 | 402,996 | ||||||
NTPC, Ltd. | 1,109,793 | 2,092,274 | ||||||
Reliance Infrastructure, Ltd. | 119,459 | 633,147 | ||||||
Reliance Power, Ltd.* | 870,485 | 570,245 | ||||||
Tata Power Co., Ltd. | 1,883,880 | 1,864,077 | ||||||
Total Utilities | 5,977,967 | |||||||
TOTAL INVESTMENTS IN SECURITIES—99.4% | ||||||||
(Cost: $42,949,288) | 41,584,168 | |||||||
Other Assets in Excess of Liabilities—0.6% | 231,508 | |||||||
Net Assets—100.0% | $ | 41,815,676 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 29
Schedule of Investments (Consolidated)†
EGShares India Small Cap ETF
September 30, 2015 (Unaudited)
Investments | Shares | Value | ||||||
COMMON STOCKS—99.5% | ||||||||
Basic Materials—4.4% | ||||||||
Jindal Saw, Ltd. | 153,855 | $ | 149,659 | |||||
Monsanto India, Ltd. | 4,318 | 171,362 | ||||||
Nagarjuna Fertilizers & Chemicals, Ltd.*#§ | 582,385 | 8,872 | ||||||
Rashtriya Chemicals & Fertilizers, Ltd. | 114,283 | 83,223 | ||||||
SRF, Ltd. | 31,105 | 532,443 | ||||||
Total Basic Materials | 945,559 | |||||||
Consumer Goods—10.4% | ||||||||
Alok Industries, Ltd.* | 885,957 | 82,333 | ||||||
Amtek Auto, Ltd. | 113,987 | 76,234 | ||||||
Bombay Dyeing & Manufacturing Co., Ltd. | 101,374 | 97,683 | ||||||
CCL Products India, Ltd. | 74,488 | 266,904 | ||||||
Ceat, Ltd. | 20,838 | 406,966 | ||||||
Delta Corp., Ltd. | 139,158 | 163,029 | ||||||
JBF Industries, Ltd. | 35,702 | 121,536 | ||||||
JK Tyre & Industries, Ltd. | 114,601 | 177,995 | ||||||
Mahindra CIE Automotive, Ltd.* | 78,468 | 305,313 | ||||||
PC Jeweller, Ltd. | 52,488 | 281,751 | ||||||
Raymond, Ltd. | 39,888 | 259,631 | ||||||
Total Consumer Goods | 2,239,375 | |||||||
Consumer Services—4.7% | ||||||||
Cox & Kings, Ltd. | 92,501 | 290,228 | ||||||
Jet Airways India, Ltd.* | 58,033 | 286,761 | ||||||
Kaya, Ltd.* | 4,278 | 66,549 | ||||||
TV18 Broadcast, Ltd.* | 668,314 | 358,898 | ||||||
Total Consumer Services | 1,002,436 | |||||||
Financials—24.3% | ||||||||
Allahabad Bank | 226,031 | 264,288 | ||||||
Andhra Bank | 240,030 | 245,003 | ||||||
DCB Bank, Ltd.* | 241,456 | 526,208 | ||||||
Dewan Housing Finance Corp., Ltd. | 167,828 | 562,367 | ||||||
Housing Development & Infrastructure, Ltd.* | 266,659 | 299,199 | ||||||
IFCI, Ltd. | 781,758 | 257,251 | ||||||
Indiabulls Real Estate, Ltd.* | 261,535 | 254,403 | ||||||
Indian Overseas Bank* | 323,890 | 178,870 | ||||||
Jammu & Kashmir Bank, Ltd. (The) | 237,657 | 326,217 | ||||||
Karnataka Bank, Ltd. (The) | 195,213 | 376,210 | ||||||
Manappuram Finance, Ltd. | 573,698 | 210,199 | ||||||
Oriental Bank of Commerce | 130,253 | 258,859 | ||||||
PTC India Financial Services, Ltd. | 237,969 | 163,867 | ||||||
SKS Microfinance, Ltd.* | 118,399 | 731,516 | ||||||
Syndicate Bank | 211,285 | 265,394 | ||||||
UCO Bank | 235,303 | 166,153 | ||||||
Unitech, Ltd.* | 1,339,897 | 125,539 | ||||||
Total Financials | 5,211,543 | |||||||
Health Care—3.5% | ||||||||
Granules India, Ltd. | 105,042 | 225,319 | ||||||
Marksans Pharma, Ltd. | 193,246 | 305,737 | ||||||
Suven Life Sciences, Ltd. | 52,645 | 213,900 | ||||||
Total Health Care | 744,956 |
Investments | Shares | Value | ||||||
Industrials—23.8% | ||||||||
BEML, Ltd. | 19,772 | $ | 374,294 | |||||
Century Textiles & Industries, Ltd. | 57,290 | 451,757 | ||||||
Engineers India, Ltd. | 105,295 | 306,629 | ||||||
Escorts, Ltd. | 70,784 | 164,721 | ||||||
Gateway Distriparks, Ltd. | 74,600 | 405,788 | ||||||
Gati, Ltd. | 57,694 | 121,866 | ||||||
Hindustan Construction Co., Ltd.* | 363,028 | 103,145 | ||||||
India Cements, Ltd.* | 224,172 | 266,725 | ||||||
IRB Infrastructure Developers, Ltd. | 91,977 | 332,583 | ||||||
Jain Irrigation Systems, Ltd. | 319,640 | 312,384 | ||||||
Jaiprakash Associates, Ltd.* | 1,437,027 | 247,386 | ||||||
JK Lakshmi Cement, Ltd. | 65,940 | 374,604 | ||||||
NCC, Ltd. | 442,680 | 504,456 | ||||||
Sintex Industries, Ltd. | 225,821 | 362,263 | ||||||
Texmaco Rail & Engineering, Ltd. | 101,475 | 177,628 | ||||||
Timken India, Ltd. | 17,580 | 160,735 | ||||||
Voltas, Ltd. | 111,406 | 455,366 | ||||||
Total Industrials | 5,122,330 | |||||||
Oil & Gas—7.0% | ||||||||
Aban Offshore, Ltd. | 32,020 | 112,002 | ||||||
Gujarat State Petronet, Ltd. | 360,062 | 645,632 | ||||||
Suzlon Energy, Ltd.* | 2,336,408 | 742,141 | ||||||
Total Oil & Gas | 1,499,775 | |||||||
Technology—10.7% | ||||||||
Astra Microwave Products, Ltd. | 70,439 | 120,779 | ||||||
Hexaware Technologies, Ltd. | 89,835 | 338,797 | ||||||
Himachal Futuristic Communications, Ltd.* | 797,244 | 199,797 | ||||||
KPIT Technologies, Ltd. | 128,129 | 208,473 | ||||||
Polaris Consulting & Services, Ltd. | 69,905 | 210,759 | ||||||
Redington India, Ltd. | 350,652 | 588,427 | ||||||
Rolta India, Ltd. | 83,906 | 130,128 | ||||||
Tata Elxsi, Ltd. | 17,612 | 504,413 | ||||||
Total Technology | 2,301,573 | |||||||
Utilities—10.7% | ||||||||
BF Utilities, Ltd.* | 13,401 | 95,516 | ||||||
GMR Infrastructure, Ltd.* | 1,707,464 | 352,470 | ||||||
Gujarat Gas, Ltd.* | 40,000 | 316,027 | ||||||
Indraprastha Gas, Ltd. | 79,030 | 574,846 | ||||||
Jaiprakash Power Ventures, Ltd.* | 1,047,651 | 111,724 | ||||||
PTC India, Ltd. | 254,667 | 231,039 | ||||||
Torrent Power, Ltd. | 228,664 | 620,604 | ||||||
Total Utilities | 2,302,226 | |||||||
TOTAL INVESTMENTS IN SECURITIES—99.5% | ||||||||
(Cost: $25,868,487) | 21,369,773 | |||||||
Other Assets in Excess of Liabilities—0.5% | 104,948 | |||||||
Net Assets—100.0% | $ | 21,474,721 |
† | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. | |
* | Non-income producing security. | |
# | Fair valued security. | |
§ | Illiquid. |
The accompanying notes are an integral part of these financial statements.
30 EGA Emerging Global Shares Trust
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EGA Emerging Global Shares Trust 31
Statements of Assets and Liabilities
EGA Emerging Global Shares Trust
September 30, 2015 (Unaudited)
EGShares Beyond BRICs ETF | EGShares Blue Chip ETF | EGShares Brazil Infrastructure ETF | EGShares EM Core ex-China ETF | |||||||||||||||
ASSETS: | ||||||||||||||||||
Cost of Investments: | $ | 234,066,444 | $ | 5,242,333 | $ | 18,632,622 | $ | 1,982,072 | ||||||||||
Investments at value | 182,540,652 | 4,271,143 | 8,407,411 | 1,930,940 | ||||||||||||||
Cash | — | 19,846 | 27,970 | 27,497 | ||||||||||||||
Foreign cash* | 6,898,439 | — | 62,939 | 12,893 | ||||||||||||||
Receivables: | ||||||||||||||||||
Capital shares sold | 2,487 | — | — | — | ||||||||||||||
Dividends and interest | 228,094 | 4,845 | 84,091 | 2,242 | ||||||||||||||
Foreign tax reclaims | 3,362 | 6,054 | — | — | ||||||||||||||
Investment securities sold | 22,006,709 | — | 62,428 | 161 | ||||||||||||||
Total Assets | 211,679,743 | 4,301,888 | 8,644,839 | 1,973,733 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
Payables: | ||||||||||||||||||
Accrued investment advisory fees | 91,313 | 2,172 | 6,252 | 554 | ||||||||||||||
Capital shares payable | 1,633,362 | — | — | — | ||||||||||||||
Due to custodian | 13,650,152 | — | — | — | ||||||||||||||
Income payable | — | — | — | — | ||||||||||||||
Investment securities purchased | 14,410,031 | — | 62,938 | 11,830 | ||||||||||||||
Accrued expenses and other liabilities | — | — | — | — | ||||||||||||||
Total Liabilities | 29,784,858 | 2,172 | 69,190 | 12,384 | ||||||||||||||
NET ASSETS | $ | 181,894,885 | $ | 4,299,716 | $ | 8,575,649 | $ | 1,961,349 | ||||||||||
NET ASSETS: | ||||||||||||||||||
Paid-in capital | $ | 266,405,046 | $ | 5,247,067 | $ | 49,168,604 | $ | 2,000,000 | ||||||||||
Undistributed (accumulated) net investment income (loss) | 6,200,173 | 102,117 | 380,016 | 4,002 | ||||||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (39,165,337 | ) | (77,774 | ) | (30,715,025 | ) | 8,497 | |||||||||||
Net unrealized appreciation (depreciation) on investments and on foreign currency translations | (51,544,997 | ) | (971,694 | ) | (10,257,946 | ) | (51,150 | ) | ||||||||||
NET ASSETS | $ | 181,894,885 | $ | 4,299,716 | $ | 8,575,649 | $ | 1,961,349 | ||||||||||
Outstanding beneficial interest shares (unlimited shares of beneficial interest authorized, no par value) | 11,400,000 | 250,000 | 1,450,000 | 100,000 | ||||||||||||||
Net asset value per share | $ | 15.96 | $ | 17.20 | $ | 5.91 | $ | 19.61 | ||||||||||
* Cost of foreign cash: | $ | 6,909,738 | $ | — | $ | 62,939 | $ | 12,889 |
The accompanying notes are an integral part of these financial statements.
32 EGA Emerging Global Shares Trust
Statements of Assets and Liabilities
EGA Emerging Global Shares Trust
September 30, 2015 (Unaudited)
EGShares EM Quality Dividend ETF (Consolidated) | EGShares Emerging Markets Consumer ETF (Consolidated) | EGShares Emerging Markets Core ETF (Consolidated) | EGShares Emerging Markets Domestic Demand ETF (Consolidated) | EGShares India Consumer ETF (Consolidated) | EGShares India Infrastructure ETF (Consolidated) | EGShares India Small Cap ETF (Consolidated) | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Cost of Investments: | $ | 20,260,849 | $ | 844,475,629 | $ | 5,808,532 | $ | 34,562,361 | $ | 82,125,381 | $ | 42,949,288 | $ | 25,868,487 | ||||||||||||||
Investments at value | 17,703,636 | 725,033,137 | 5,089,548 | 31,324,768 | 77,913,081 | 41,584,168 | 21,369,773 | |||||||||||||||||||||
Cash | — | — | — | — | 280,660 | 96,971 | 55,774 | |||||||||||||||||||||
Foreign cash* | 2,027,310 | 34,885,876 | 262,935 | 367,362 | 7,588 | 92,460 | 34,407 | |||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Capital shares sold | — | — | — | 23 | — | — | — | |||||||||||||||||||||
Dividends and interest | 28,756 | 1,058,174 | 13,813 | 91,101 | 2,168 | 80,408 | 29,149 | |||||||||||||||||||||
Foreign tax reclaims | — | — | — | — | — | — | — | |||||||||||||||||||||
Investment securities sold | 1,244,177 | 10,856,758 | 8,289 | 161,145 | 3,109,476 | 2,136,480 | — | |||||||||||||||||||||
Total Assets | 21,003,879 | 771,833,945 | 5,374,585 | 31,944,399 | 81,312,973 | 43,990,487 | 21,489,103 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Accrued investment advisory fees | 12,867 | 519,639 | 2,966 | 22,335 | 58,945 | 29,874 | 14,382 | |||||||||||||||||||||
Capital shares payable | — | 762,818 | — | 246,421 | 3,125,802 | 2,144,836 | — | |||||||||||||||||||||
Due to custodian | 2,371,269 | 44,644,901 | 285,047 | 156,242 | — | — | — | |||||||||||||||||||||
Income payable | 144,045 | — | — | — | — | — | — | |||||||||||||||||||||
Investment securities purchased | 713,740 | 8,123,330 | — | 27,760 | — | — | — | |||||||||||||||||||||
Accrued expenses and other liabilities | — | — | — | — | — | 101 | — | |||||||||||||||||||||
Total Liabilities | 3,241,921 | 54,050,688 | 288,013 | 452,758 | 3,184,747 | 2,174,811 | 14,382 | |||||||||||||||||||||
NET ASSETS | $ | 17,761,958 | $ | 717,783,257 | $ | 5,086,572 | $ | 31,491,641 | $ | 78,128,226 | $ | 41,815,676 | $ | 21,474,721 | ||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||
Paid-in capital | $ | 47,823,687 | $ | 923,385,102 | $ | 6,176,478 | $ | 36,569,145 | $ | 86,481,874 | $ | 102,556,818 | $ | 37,138,809 | ||||||||||||||
Undistributed (accumulated) net investment income (loss) | 121,496 | 6,106,563 | 65,305 | 400,603 | (102,362 | ) | 383,745 | 164,419 | ||||||||||||||||||||
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions | (27,613,355 | ) | (92,451,855 | ) | (437,261 | ) | (2,241,500 | ) | (4,039,113 | ) | (59,760,946 | ) | (11,330,329 | ) | ||||||||||||||
Net unrealized appreciation (depreciation) on investments and on foreign currency translations | (2,569,870 | ) | (119,256,553 | ) | (717,950 | ) | (3,236,607 | ) | (4,212,173 | ) | (1,363,941 | ) | (4,498,178 | ) | ||||||||||||||
NET ASSETS | $ | 17,761,958 | $ | 717,783,257 | $ | 5,086,572 | $ | 31,491,641 | $ | 78,128,226 | $ | 41,815,676 | $ | 21,474,721 | ||||||||||||||
Outstanding beneficial interest shares (unlimited shares of beneficial interest authorized, no par value) | 1,500,000 | 33,000,000 | 300,000 | 1,650,000 | 2,500,000 | 3,900,000 | 1,450,000 | |||||||||||||||||||||
Net asset value per share | $ | 11.84 | $ | 21.75 | $ | 16.96 | $ | 19.09 | $ | 31.25 | $ | 10.72 | $ | 14.81 | ||||||||||||||
* Cost of foreign cash: | $ | 2,039,671 | $ | 34,874,908 | $ | 261,883 | $ | 366,083 | $ | 7,484 | $ | 91,923 | $ | 34,193 |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 33
Statements of Operations
EGA Emerging Global Shares Trust
Period Ended September 30, 2015 (Unaudited)
EGShares Beyond BRICs ETF | EGShares Blue Chip ETF | EGShares Brazil Infrastructure ETF | EGShares EM Core ex-China ETF1 | ||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||
Dividend income* | $ | 3,858,201 | $ | 108,360 | $ | 354,512 | $ | 4,556 | |||||||||
Interest income | 155 | 25 | — | — | |||||||||||||
Total investment income | 3,858,356 | 108,385 | 354,512 | 4,556 | |||||||||||||
EXPENSES: | |||||||||||||||||
Investment advisory fees | 1,141,300 | 20,398 | 51,783 | 1,108 | |||||||||||||
Mauritius taxes paid | — | — | — | — | |||||||||||||
Total expenses before waivers | 1,141,300 | 20,398 | 51,783 | 1,108 | |||||||||||||
Less: waivers of expenses from Advisor | (362,530 | ) | — | — | (554 | ) | |||||||||||
Net expenses | 778,770 | 20,398 | 51,783 | 554 | |||||||||||||
Net investment income (loss) | 3,079,586 | 87,987 | 302,729 | 4,002 | |||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSLATIONS: | |||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||
Investments | (28,679,471 | ) | 30,848 | (140,994 | ) | — | |||||||||||
In-Kind Redemptions | (4,829,605 | ) | 21,910 | — | — | ||||||||||||
Foreign currency transactions | (269,410 | ) | (3,349 | ) | (32,185 | ) | 8,497 | ||||||||||
Net realized gain (loss) | (33,778,486 | ) | 49,409 | (173,179 | ) | 8,497 | |||||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||||
Investments | (24,852,172 | ) | (646,319 | ) | (4,646,045 | ) | (51,132 | ) | |||||||||
Foreign currency translations | (21,141 | ) | (38 | ) | (19,515 | ) | (18 | ) | |||||||||
Change in unrealized appreciation (depreciation) | (24,873,313 | ) | (646,357 | ) | (4,665,560 | ) | (51,150 | ) | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (58,651,799 | ) | (596,948 | ) | (4,838,739 | ) | (42,653 | ) | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (55,572,213 | ) | $ | (508,961 | ) | $ | (4,536,010 | ) | $ | (38,651 | ) | |||||
* Net of foreign taxes withheld of: | $ | 392,046 | $ | 12,377 | $ | — | $ | 572 |
1 | Represents the period September 2, 2015 (commencement of operations) to September 30, 2015. |
The accompanying notes are an integral part of these financial statements.
34 EGA Emerging Global Shares Trust
Statements of Operations
EGA Emerging Global Shares Trust
Period Ended September 30, 2015 (Unaudited)
EGShares EM Quality Dividend ETF (Consolidated) | EGShares Emerging Markets Consumer ETF (Consolidated) | EGShares Emerging Markets Core ETF (Consolidated) | EGShares Emerging Markets Domestic Demand ETF (Consolidated) | EGShares India Consumer ETF (Consolidated) | EGShares India Infrastructure ETF (Consolidated) | EGShares India Small Cap ETF (Consolidated) | ||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||
Dividend income* | $ | 541,468 | $ | 10,257,822 | $ | 84,920 | $ | 488,068 | $ | 420,716 | $ | 401,688 | $ | 228,033 | ||||||||||||||
Interest income | 298 | 6 | 5 | 38 | — | — | — | |||||||||||||||||||||
Total investment income | 541,766 | 10,257,828 | 84,925 | 488,106 | 420,716 | 401,688 | 228,033 | |||||||||||||||||||||
EXPENSES: | ||||||||||||||||||||||||||||
Investment advisory fees | 97,831 | 4,236,918 | 19,108 | 153,256 | 353,220 | 217,039 | 110,096 | |||||||||||||||||||||
Mauritius taxes paid | — | 7,284 | — | — | — | 6,432 | 666 | |||||||||||||||||||||
Total expenses before waivers | 97,831 | 4,244,202 | 19,108 | 153,256 | 353,220 | 223,471 | 110,762 | |||||||||||||||||||||
Less: waivers of expenses from Advisor | — | — | — | — | — | — | — | |||||||||||||||||||||
Net expenses | 97,831 | 4,244,202 | 19,108 | 153,256 | 353,220 | 223,471 | 110,762 | |||||||||||||||||||||
Net investment income (loss) | 443,935 | 6,013,626 | 65,817 | 334,850 | 67,496 | 178,217 | 117,271 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSLATIONS: | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments | (1,853,980 | ) | (74,640,514 | ) | (431,018 | ) | (1,862,087 | ) | (2,636,591 | ) | (6,319,468 | ) | (1,482,161 | ) | ||||||||||||||
In-Kind Redemptions | 45,564 | 19,538,631 | — | 86,748 | — | — | — | |||||||||||||||||||||
Foreign currency transactions | 11,037 | (862,079 | ) | (4,790 | ) | (20,215 | ) | (53,016 | ) | (10,805 | ) | (12,931 | ) | |||||||||||||||
Net realized gain (loss) | (1,797,379 | ) | (55,963,962 | ) | (435,808 | ) | (1,795,554 | ) | (2,689,607 | ) | (6,330,273 | ) | (1,495,092 | ) | ||||||||||||||
Change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments | (2,038,992 | ) | (131,068,655 | ) | (620,446 | ) | (5,278,359 | ) | (8,727,962 | ) | (3,925,489 | ) | (3,241,377 | ) | ||||||||||||||
Foreign currency translations | (12,570 | ) | 185,054 | 1,009 | 339 | 113 | 1,521 | 512 | ||||||||||||||||||||
Change in unrealized appreciation (depreciation) | (2,051,562 | ) | (130,883,601 | ) | (619,437 | ) | (5,278,020 | ) | (8,727,849 | ) | (3,923,968 | ) | (3,240,865 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (3,848,941 | ) | (186,847,563 | ) | (1,055,245 | ) | (7,073,574 | ) | (11,417,456 | ) | (10,254,241 | ) | (4,735,957 | ) | ||||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (3,405,006 | ) | $ | (180,833,937 | ) | $ | (989,428 | ) | $ | (6,738,724 | ) | $ | (11,349,960 | ) | $ | (10,076,024 | ) | $ | (4,618,686 | ) | |||||||
* Net of foreign taxes withheld of: | $ | 78,658 | $ | 585,771 | $ | 9,467 | $ | 44,428 | $ | — | $ | — | $ | — |
1 | Represents the period September 2, 2015 (commencement of operations) to September 30, 2015. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 35
Statements of Changes in Net Assets
EGA Emerging Global Shares Trust
EGShares Beyond BRICs ETF | EGShares Blue Chip ETF | EGShares Brazil Infrastructure ETF | ||||||||||||||||||||||||
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Period April 23, 20141 Through March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | |||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||||||||||||
Net investment income (loss) | $ | 3,079,586 | $ | 6,756,932 | $ | 87,987 | $ | 98,001 | $ | 302,729 | $ | 1,375,348 | ||||||||||||||
Net realized gain (loss) on investments and foreign currency transactions | (33,778,486 | ) | (3,814,732 | ) | 49,409 | (136,222 | ) | (173,179 | ) | (4,262,321 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (24,873,313 | ) | (28,062,462 | ) | (646,357 | ) | (325,337 | ) | (4,665,560 | ) | (7,953,557 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | (55,572,213 | ) | (25,120,262 | ) | (508,961 | ) | (363,558 | ) | (4,536,010 | ) | (10,840,530 | ) | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||||
Net investment income | — | (3,616,691 | ) | — | (74,832 | ) | — | (1,252,757 | ) | |||||||||||||||||
Net realized gain | — | (268,047 | ) | — | — | — | — | |||||||||||||||||||
Total distributions | — | (3,884,738 | ) | — | (74,832 | ) | — | (1,252,757 | ) | |||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||||
Proceeds from sale of shares | 3,474,554 | 302,924,221 | — | 8,075,633 | 519,506 | 10,594,646 | ||||||||||||||||||||
Cost of shares redeemed | (67,047,999 | ) | (22,263,815 | ) | (2,828,566 | ) | — | — | (22,818,489 | ) | ||||||||||||||||
Transaction fees | — | — | — | — | — | — | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (63,573,445 | ) | 280,660,406 | (2,828,566 | ) | 8,075,633 | 519,506 | (12,223,843 | ) | |||||||||||||||||
Net Increase (Decrease) in Net Assets | (119,145,658 | ) | 251,655,406 | (3,337,527 | ) | 7,637,243 | (4,016,504 | ) | (24,317,130 | ) | ||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||
Beginning of period | 301,040,543 | 49,385,137 | 7,637,243 | — | 12,592,153 | 36,909,283 | ||||||||||||||||||||
End of period | $ | 181,894,885 | $ | 301,040,543 | $ | 4,299,716 | $ | 7,637,243 | $ | 8,575,649 | $ | 12,592,153 | ||||||||||||||
Undistributed (accumulated) net investment income (loss) included in net assets at end of period | $ | 6,200,173 | $ | 3,120,587 | $ | 102,117 | $ | 14,130 | $ | 380,016 | $ | 77,287 | ||||||||||||||
SHARES CREATED AND REDEEMED: | ||||||||||||||||||||||||||
Shares outstanding, beginning of period | 15,150,000 | 2,350,000 | 400,000 | — | 1,400,000 | 2,250,000 | ||||||||||||||||||||
Shares sold | 150,000 | 13,900,000 | — | 400,000 | 50,000 | 600,000 | ||||||||||||||||||||
Shares redeemed | (3,900,000 | ) | (1,100,000 | ) | (150,000 | ) | — | — | (1,450,000 | ) | ||||||||||||||||
Shares outstanding, end of period | 11,400,000 | 15,150,000 | 250,000 | 400,000 | 1,450,000 | 1,400,000 |
1 | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
36 EGA Emerging Global Shares Trust
Statements of Changes in Net Assets
EGA Emerging Global Shares Trust
EGShares EM Core ex-China ETF | EGShares EM Quality Dividend ETF (Consolidated) | EGShares Emerging Markets Consumer ETF (Consolidated) | EGShares Emerging Markets Core ETF (Consolidated) | EGShares Emerging Markets Domestic Demand ETF (Consolidated) | ||||||||||||||||||||||||||||||||
For the Period September 2, 20151 Through September 30, 2015 (Unaudited) | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | ||||||||||||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 4,002 | $ | 443,935 | $ | 2,050,923 | $ | 6,013,626 | $ | 11,492,262 | $ | 65,817 | $ | 78,151 | $ | 334,850 | $ | 404,702 | ||||||||||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 8,497 | (1,797,379 | ) | (4,335,717 | ) | (55,963,962 | ) | 505,015 | (435,808 | ) | 63,286 | (1,795,554 | ) | 495,319 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (51,150 | ) | (2,051,562 | ) | (405,793 | ) | (130,883,601 | ) | (9,075,548 | ) | (619,437 | ) | (115,273 | ) | (5,278,020 | ) | 426,814 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (38,651 | ) | (3,405,006 | ) | (2,690,587 | ) | (180,833,937 | ) | 2,921,729 | (989,428 | ) | 26,164 | (6,738,724 | ) | 1,326,835 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||||||||||||||
Net investment income | — | (287,789 | ) | (1,527,013 | ) | — | (13,864,995 | ) | — | (83,068 | ) | — | (359,762 | ) | ||||||||||||||||||||||
Net realized gain | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total distributions | — | (287,789 | ) | (1,527,013 | ) | — | (13,864,995 | ) | — | (83,068 | ) | — | (359,762 | ) | ||||||||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 2,000,000 | — | — | 38,871,933 | 50,665,900 | 1,008,047 | 1,038,203 | 4,341,669 | 15,039,089 | |||||||||||||||||||||||||||
Cost of shares redeemed | — | (3,478,464 | ) | (28,180,390 | ) | (285,413,665 | ) | (128,249,725 | ) | — | — | (1,907,656 | ) | (3,636,676 | ) | |||||||||||||||||||||
Transaction fees | — | (1,532 | ) | (2,407 | ) | 692 | 2,754 | (150 | ) | (1,124 | ) | (1,923 | ) | (85 | ) | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 2,000,000 | (3,479,996 | ) | (28,182,797 | ) | (246,541,040 | ) | (77,581,071 | ) | 1,007,897 | 1,037,079 | 2,432,090 | 11,402,328 | |||||||||||||||||||||||
Net Increase (Decrease) in Net Assets | 1,961,349 | (7,172,791 | ) | (32,400,397 | ) | (427,374,977 | ) | (88,524,337 | ) | 18,469 | 980,175 | (4,306,634 | ) | 12,369,401 | ||||||||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||||||||||||||
Beginning of period | — | 24,934,749 | 57,335,146 | 1,145,158,234 | 1,233,682,571 | 5,068,103 | 4,087,928 | 35,798,275 | 23,428,874 | |||||||||||||||||||||||||||
End of period | $ | 1,961,349 | $ | 17,761,958 | $ | 24,934,749 | $ | 717,783,257 | $ | 1,145,158,234 | $ | 5,086,572 | $ | 5,068,103 | $ | 31,491,641 | $ | 35,798,275 | ||||||||||||||||||
Undistributed (accumulated) net investment income (loss) included in net assets at end of period | $ | 4,002 | $ | 121,496 | $ | (34,650 | ) | $ | 6,106,563 | $ | 92,937 | $ | 65,305 | $ | (512 | ) | $ | 400,603 | $ | 65,753 | ||||||||||||||||
SHARES CREATED AND REDEEMED: | ||||||||||||||||||||||||||||||||||||
Shares outstanding, beginning of period | — | 1,750,000 | 3,550,000 | 43,300,000 | 46,500,000 | 250,000 | 200,000 | 1,550,000 | 1,050,000 | |||||||||||||||||||||||||||
Shares sold | 100,000 | — | — | 1,400,000 | 1,800,000 | 50,000 | 50,000 | 200,000 | 650,000 | |||||||||||||||||||||||||||
Shares redeemed | — | (250,000 | ) | (1,800,000 | ) | (11,700,000 | ) | (5,000,000 | ) | — | — | (100,000 | ) | (150,000 | ) | |||||||||||||||||||||
Shares outstanding, end of period | 100,000 | 1,500,000 | 1,750,000 | 33,000,000 | 43,300,000 | 300,000 | 250,000 | 1,650,000 | 1,550,000 |
1 | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 37
Statements of Changes in Net Assets (concluded)
EGA Emerging Global Shares Trust
September 30, 2015
EGShares India Consumer ETF (Consolidated) | EGShares India Infrastructure ETF (Consolidated) | EGShares India Small Cap ETF (Consolidated) | ||||||||||||||||||||||
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 67,496 | $ | (76,607 | ) | $ | 178,217 | $ | 416,417 | $ | 117,271 | $ | 90,740 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | (2,689,607 | ) | (845,880 | ) | (6,330,273 | ) | (1,106,836 | ) | (1,495,092 | ) | 7,422,791 | |||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (8,727,849 | ) | 3,634,932 | (3,923,968 | ) | (246,152 | ) | (3,240,865 | ) | (1,261,182 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (11,349,960 | ) | 2,712,445 | (10,076,024 | ) | (936,571 | ) | (4,618,686 | ) | 6,252,349 | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||
Net investment income | — | (20,840 | ) | — | (128,789 | ) | — | (133,287 | ) | |||||||||||||||
Net realized gain | — | — | — | — | — | — | ||||||||||||||||||
Total distributions | — | (20,840 | ) | — | (128,789 | ) | — | (133,287 | ) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Proceeds from sale of shares | 15,515,208 | 81,076,838 | 8,888,286 | 46,724,009 | — | 12,647,997 | ||||||||||||||||||
Cost of shares redeemed | (14,745,167 | ) | — | (4,730,345 | ) | (15,511,583 | ) | (2,753,070 | ) | (6,475,034 | ) | |||||||||||||
Transaction fees | (1,950 | ) | (3,047 | ) | (1,869 | ) | 2,097 | (3,095 | ) | (2,581 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 768,091 | 81,073,791 | 4,156,072 | 31,214,523 | (2,756,165 | ) | 6,170,382 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | (10,581,869 | ) | 83,765,396 | (5,919,952 | ) | 30,149,163 | (7,374,851 | ) | 12,289,444 | |||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 88,710,095 | 4,944,699 | 47,735,628 | 17,586,465 | 28,849,572 | 16,560,128 | ||||||||||||||||||
End of period | $ | 78,128,226 | $ | 88,710,095 | $ | 41,815,676 | $ | 47,735,628 | $ | 21,474,721 | $ | 28,849,572 | ||||||||||||
Undistributed (accumulated) net investment income (loss) included in net assets at end of period | $ | (102,362 | ) | $ | (169,858 | ) | $ | 383,745 | $ | 205,528 | $ | 164,419 | $ | 47,148 | ||||||||||
SHARES CREATED AND REDEEMED: | ||||||||||||||||||||||||
Shares outstanding, beginning of period | 2,500,000 | 200,000 | 3,650,000 | 1,550,000 | 1,650,000 | 1,300,000 | ||||||||||||||||||
Shares sold | 450,000 | 2,300,000 | 650,000 | 3,250,000 | — | 750,000 | ||||||||||||||||||
Shares redeemed | (450,000 | ) | — | (400,000 | ) | (1,150,000 | ) | (200,000 | ) | (400,000 | ) | |||||||||||||
Shares outstanding, end of period | 2,500,000 | 2,500,000 | 3,900,000 | 3,650,000 | 1,450,000 | 1,650,000 |
The accompanying notes are an integral part of these financial statements.
38 EGA Emerging Global Shares Trust
Financial Highlights
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Beyond BRICs ETF
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Period August 15, 20121 Through March 31, 2013 | |||||||||||||
Net asset value, beginning of period | $ | 19.87 | $ | 21.01 | $ | 21.97 | $ | 20.00 | ||||||||
Investment operations: | ||||||||||||||||
Net investment income2 | 0.22 | 0.56 | 0.99 | 0.17 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translation | (4.13 | ) | (1.43 | ) | (1.77 | )3 | 1.91 | |||||||||
Total from investment operations | (3.91 | ) | (0.87 | ) | (0.78 | ) | 2.08 | |||||||||
Distributions to shareholders: | ||||||||||||||||
Net investment income | — | (0.25 | ) | (0.18 | ) | (0.11 | ) | |||||||||
Net realized gains | — | (0.02 | ) | — | — | |||||||||||
Total from investment operations | — | (0.27 | ) | (0.18 | )�� | (0.11 | ) | |||||||||
Net asset value, end of period | $ | 15.96 | $ | 19.87 | $ | 21.01 | $ | 21.97 | ||||||||
NET ASSET VALUE TOTAL RETURN4 | (19.68 | )% | (4.16 | )% | (3.51 | )% | 10.41 | % | ||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||
Net assets, end of period (000's omitted) | $ | 181,895 | $ | 301,041 | $ | 49,385 | $ | 7,688 | ||||||||
Ratios to average net assets: | ||||||||||||||||
Expenses, net of expense reimbursements/waivers5,6 | 0.58 | %7 | 0.58 | % | 0.66 | % | 0.85 | %7 | ||||||||
Expenses, prior to expense reimbursements/waivers5,6 | 0.85 | %7 | 0.85 | % | 0.85 | % | 2.43 | %7 | ||||||||
Net investment income | 2.29 | %7 | 2.65 | % | 4.92 | % | 1.26 | %7 | ||||||||
Portfolio turnover rate | 18 | %8 | 33 | % | 63 | % | 1 | %8 |
EGShares Blue Chip ETF
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Period April 23, 20141 Through March 31, 2015 | |||||||
Net asset value, beginning of period | $ | 19.09 | $ | 20.00 | ||||
Investment operations: | ||||||||
Net investment income2 | 0.25 | 0.28 | ||||||
Net realized and unrealized loss on investments and foreign currency translation | (2.14 | ) | (1.00 | ) | ||||
Total from investment operations | (1.89 | ) | (0.72 | ) | ||||
Distributions to shareholders: | ||||||||
Net investment income | — | (0.19 | ) | |||||
Net asset value, end of period | $ | 17.20 | $ | 19.09 | ||||
NET ASSET VALUE TOTAL RETURN4 | (9.90 | )% | (3.57 | )% | ||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||
Net assets, end of period (000's omitted) | $ | 4,300 | $ | 7,637 | ||||
Ratios to average net assets: | ||||||||
Expenses, net of expense reimbursements/waivers | 0.60 | %7 | 0.60 | %7 | ||||
Expenses, prior to expense reimbursements/waivers | 0.60 | %7 | 0.60 | %7 | ||||
Net investment income | 2.59 | %7 | 1.55 | %7 | ||||
Portfolio turnover rate | 13 | %8 | 82 | %8 |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | The realized and unrealized gain on investments and foreign currency translation does not accord with the amounts reported in the Statements of Operations due to the timing of subscriptions or redemptions of Fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10). |
4 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. For the applicable periods shown, the total return would have been lower if certain expenses had not been reduced. |
5 | Effective April 1, 2013, EGA replaced the fee and expense structure with a Unified Fee. See Note 9 for additional information. |
6 | Effective October 1, 2013 the Fund entered into a fee waiver agreement pursuant to which the Advisor has agreed to waive its advisory fee to 0.58% of the Fund's average daily net assets (See Note 9). |
7 | Annualized. |
8 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 39
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Brazil Infrastructure ETF
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Year Ended March 31, 2013 | For the Year Ended March 31, 2012 | For the Year Ended March 31, 2011 | |||||||||||||||||||
Net asset value, beginning of period | $ | 8.99 | $ | 16.40 | $ | 21.26 | $ | 24.21 | $ | 25.38 | $ | 20.55 | ||||||||||||
Investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.21 | 0.74 | 0.63 | 0.71 | 0.96 | 0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translation | (3.29 | ) | (7.34 | ) | (4.94 | ) | (2.84 | ) | (1.15 | ) | 4.67 | |||||||||||||
Total from investment operations | (3.08 | ) | (6.60 | ) | (4.31 | ) | (2.13 | ) | (0.19 | ) | 5.14 | |||||||||||||
Distributions to shareholders: | ||||||||||||||||||||||||
Net investment income | — | (0.81 | ) | (0.55 | ) | (0.82 | ) | (0.98 | ) | (0.31 | ) | |||||||||||||
Net asset value, end of period | $ | 5.91 | $ | 8.99 | $ | 16.40 | $ | 21.26 | $ | 24.21 | $ | 25.38 | ||||||||||||
NET ASSET VALUE TOTAL RETURN3 | (34.26 | )% | (41.17 | )% | (20.36 | )% | (8.63 | )% | (0.04 | )% | 25.16 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 8,576 | $ | 12,592 | $ | 36,909 | $ | 79,739 | $ | 89,591 | $ | 83,760 | ||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||
Expenses, net of expense reimbursements/waivers4 | 0.85 | %6 | 0.85 | % | 0.85 | % | 0.85 | % | 0.88 | %5 | 0.85 | % | ||||||||||||
Expenses, prior to expense reimbursements/waivers4 | 0.85 | %6 | 0.85 | % | 0.85 | % | 1.52 | % | 1.51 | %5 | 1.91 | % | ||||||||||||
Net investment income | 4.97 | %6 | 5.05 | % | 3.52 | % | 3.31 | % | 4.10 | % | 2.09 | % | ||||||||||||
Portfolio turnover rate | 5 | %7 | 77 | % | 68 | % | 30 | % | 30 | % | 35 | % |
EGShares EM Core ex-China ETF
For the Period September 2, 20151 Through September 30, 2015 (Unaudited) | ||||
Net asset value, beginning of period | $ | 20.00 | ||
Investment operations: | ||||
Net investment income2 | 0.04 | |||
Net realized and unrealized loss on investments and foreign currency translations | (0.43 | ) | ||
Total from investment operations | (0.39 | ) | ||
Net asset value, end of period | $ | 19.61 | ||
NET ASSET VALUE TOTAL RETURN3 | (1.95 | )% | ||
RATIOS/SUPPLEMENTAL DATA: | ||||
Net assets, end of period (000's omitted) | $ | 1,961 | ||
Ratios to average net assets: | ||||
Expenses, net of expense reimbursements/waivers | 0.35 | %6 | ||
Expenses, prior to expense reimbursements/waivers | 0.70 | %6 | ||
Net investment income | 2.53 | %6 | ||
Portfolio turnover rate | 0 | %7 |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. For the appliable periods shown, the total return would have been lower if certain expenses had not been reduced. |
4 | Effective April 1, 2013, EGA replaced the fee and expense structure with a Unified Fee. See Note 9 for additional information. |
5 | The ratio includes 0.03% for the period ended March 31, 2012 attributed to excise tax expense, which was outside the expense cap in place at that time. |
6 | Annualized. |
7 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
40 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares EM Quality Dividend ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Year Ended March 31, 2013 | For the Period August 4, 20111 Through March 31, 2012 | ||||||||||||||||
Net asset value, beginning of period | $ | 14.25 | $ | 16.15 | $ | 19.80 | $ | 20.09 | $ | 20.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income2 | 0.27 | 0.77 | 0.64 | 0.86 | 0.33 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (2.49 | ) | (2.08 | ) | (3.61 | ) | (0.09 | )3 | 0.13 | |||||||||||
Total from investment operations | (2.22 | ) | (1.31 | ) | (2.97 | ) | 0.77 | 0.46 | ||||||||||||
Distributions to shareholders: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.59 | ) | (0.65 | ) | (1.06 | ) | (0.37 | ) | ||||||||||
Return of capital | — | — | (0.03 | ) | — | — | ||||||||||||||
Total distributions | (0.19 | ) | (0.59 | ) | (0.68 | ) | (1.06 | ) | (0.37 | ) | ||||||||||
Net asset value, end of period | $ | 11.84 | $ | 14.25 | $ | 16.15 | $ | 19.80 | $ | 20.09 | ||||||||||
NET ASSET VALUE TOTAL RETURN4 | (15.72 | )% | (8.37 | )% | (15.14 | )% | 4.12 | % | 2.45 | % | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 17,762 | $ | 24,935 | $ | 57,335 | $ | 89,122 | $ | 59,255 | ||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Expenses, net of expense reimbursements/waivers5 | 0.85 | %6 | 0.89 | %7 | 0.85 | % | 0.85 | % | 0.85 | %6 | ||||||||||
Expenses, prior to expense reimbursements/waivers5 | 0.85 | %6 | 0.89 | %7 | 0.85 | % | 1.43 | % | 2.07 | %6 | ||||||||||
Net investment income | 3.86 | %6 | 4.76 | % | 3.54 | % | 4.45 | % | 2.62 | %6 | ||||||||||
Portfolio turnover rate | 63 | %8 | 168 | % | 137 | % | 86 | % | 45 | %8 |
EGShares Emerging Markets Consumer ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Year Ended March 31, 2013 | For the Year Ended March 31, 2012 | For the Period September 14, 20101 Through March 31, 2011 | |||||||||||||||||||
Net asset value, beginning of period | $ | 26.45 | $ | 26.53 | $ | 26.51 | $ | 24.77 | $ | 22.76 | $ | 20.00 | ||||||||||||
Investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.15 | 0.25 | 0.31 | 0.17 | 0.17 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translation | (4.85 | ) | (0.03 | ) | (0.09 | ) | 1.68 | 1.96 | 2.74 | |||||||||||||||
Total from investment operations | (4.70 | ) | 0.22 | 0.22 | 1.85 | 2.13 | 2.78 | |||||||||||||||||
Distributions to shareholders: | ||||||||||||||||||||||||
Net investment income | — | (0.30 | ) | (0.20 | ) | (0.11 | ) | (0.12 | ) | (0.02 | ) | |||||||||||||
Net asset value, end of period | $ | 21.75 | $ | 26.45 | $ | 26.53 | $ | 26.51 | $ | 24.77 | $ | 22.76 | ||||||||||||
NET ASSET VALUE TOTAL RETURN4 | (17.77 | )% | 0.88 | % | 0.82 | % | 7.46 | % | 9.44 | % | 13.88 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 717,783 | $ | 1,145,158 | $ | 1,233,683 | $ | 885,476 | $ | 402,466 | $ | 194,611 | ||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||
Expenses, net of expense reimbursements/waivers5 | 0.84 | %6 | 0.83 | % | 0.84 | % | 0.85 | % | 0.85 | % | 0.85 | %6 | ||||||||||||
Expenses, prior to expense reimbursements/waivers5 | 0.84 | %6 | 0.83 | % | 0.84 | % | 1.23 | % | 1.31 | % | 1.44 | %6 | ||||||||||||
Net investment income (loss) | 1.20 | %6 | 0.92 | % | 1.20 | % | 0.68 | % | 0.76 | % | 0.37 | %6 | ||||||||||||
Portfolio turnover rate | 15 | %8 | 12 | % | 14 | % | 7 | % | 3 | % | 9 | %8 |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | The realized and unrealized gain on investments and foreign currency translations does not accord with the amounts reported in the Statements of Operations due to the timing of subscriptions of Fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10). |
4 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. For the applicable periods shown, the total return would have been lower if certain expenses had not been reduced. |
5 | Effective April 1, 2013, EGA replaced the fee and expense structure with a Unified Fee. See Note 9 for additional information. |
6 | Annualized. |
7 | The ratio includes 0.04% for the period ended March 31, 2015 attributed to tax expense, which is outside the Unified Fee. |
8 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 41
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Emerging Markets Core ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Period October 16, 20121 Through March 31, 2013 | |||||||||||||
Net asset value, beginning of period | $ | 20.27 | $ | 20.44 | $ | 20.87 | $ | 20.00 | ||||||||
Investment operations: | ||||||||||||||||
Net investment income2 | 0.24 | 0.38 | 0.36 | 0.09 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (3.55 | ) | (0.13 | ) | (0.44 | ) | 0.82 | |||||||||
Total from investment operations | (3.31 | ) | 0.25 | (0.08 | ) | 0.91 | ||||||||||
Distributions to shareholders: | ||||||||||||||||
Net investment income | — | (0.42 | ) | (0.35 | ) | (0.04 | ) | |||||||||
Net asset value, end of period | $ | 16.96 | $ | 20.27 | $ | 20.44 | $ | 20.87 | ||||||||
NET ASSET VALUE TOTAL RETURN3 | (16.33 | )% | 1.22 | % | (0.36 | )% | 4.55 | % | ||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||
Net assets, end of period (000's omitted) | $ | 5,087 | $ | 5,068 | $ | 4,088 | $ | 4,173 | ||||||||
Ratios to average net assets: | ||||||||||||||||
Expenses, net of expense reimbursements/waivers6 | 0.70 | %4 | 0.71 | %7 | 0.70 | % | 0.70 | %4 | ||||||||
Expenses, prior to expense reimbursements/waivers6 | 0.70 | %4 | 0.71 | %7 | 0.70 | % | 11.94 | %4 | ||||||||
Net investment income | 2.41 | %4 | 1.78 | % | 1.76 | % | 0.96 | %4 | ||||||||
Portfolio turnover rate | 19 | %5 | 20 | % | 16 | % | 3 | %5 |
EGShares Emerging Markets Domestic Demand ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Period August 15, 20121 Through March 31, 2013 | |||||||||||||
Net asset value, beginning of period | $ | 23.10 | $ | 22.31 | $ | 22.16 | $ | 20.00 | ||||||||
Investment operations: | ||||||||||||||||
Net investment income2 | 0.21 | 0.34 | 0.23 | 0.13 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (4.22 | ) | 0.73 | 0.14 | 2.11 | |||||||||||
Total from investment operations | (4.01 | ) | 1.07 | 0.37 | 2.24 | |||||||||||
Distributions to shareholders: | ||||||||||||||||
Net investment income | — | (0.28 | ) | (0.22 | ) | (0.08 | ) | |||||||||
Net asset value, end of period | $ | 19.09 | $ | 23.10 | $ | 22.31 | $ | 22.16 | ||||||||
NET ASSET VALUE TOTAL RETURN3 | (17.36 | )% | 4.82 | % | 1.70 | % | 11.23 | % | ||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||
Net assets, end of period (000's omitted) | $ | 31,492 | $ | 35,798 | $ | 23,429 | $ | 2,216 | ||||||||
Ratios to average net assets: | ||||||||||||||||
Expenses, net of expense reimbursements/waivers6 | 0.85 | %4 | 0.85 | % | 0.85 | % | 0.85 | %4 | ||||||||
Expenses, prior to expense reimbursements/waivers6 | 0.85 | %4 | 0.85 | % | 0.85 | % | 4.53 | %4 | ||||||||
Net investment income | 1.86 | %4 | 1.43 | % | 1.09 | % | 1.02 | %4 | ||||||||
Portfolio turnover rate | 16 | %5 | 8 | % | 159 | % | 57 | %5 |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. For the applicable periods shown, the total return would have been lower if certain expenses had not been reduced. |
4 | Annualized. |
5 | Not annualized. |
6 | Effective April 1, 2013, EGA replaced the fee and expense structure with a Unified Fee. See Note 9 for additional information. |
7 | The ratio includes 0.01% for the period ended March 31, 2015 attributed to tax expense, which is outside the Unified Fee. |
The accompanying notes are an integral part of these financial statements.
42 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares India Consumer ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Year Ended March 31, 2013 | For the Period August 10, 20111 Through March 31, 2012 | ||||||||||||||||
Net asset value, beginning of period | $ | 35.48 | $ | 24.72 | $ | 22.10 | $ | 19.08 | $ | 20.00 | ||||||||||
Investment operations: | ||||||||||||||||||||
Net investment income (loss)2 | 0.03 | (0.12 | ) | 0.11 | (0.00 | )3 | (0.00 | )3 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (4.26 | ) | 10.91 | 2.51 | 3.02 | 4 | (0.92 | )4 | ||||||||||||
Total from investment operations | (4.23 | ) | 10.79 | 2.62 | 3.02 | (0.92 | ) | |||||||||||||
Distributions to shareholders: | ||||||||||||||||||||
Net investment income | — | (0.03 | ) | — | — | — | ||||||||||||||
Net asset value, end of period | $ | 31.25 | $ | 35.48 | $ | 24.72 | $ | 22.10 | $ | 19.08 | ||||||||||
NET ASSET VALUE TOTAL RETURN5 | (11.92 | )% | 43.64 | % | 11.86 | % | 15.83 | % | (4.60 | )% | ||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 78,128 | $ | 88,710 | $ | 4,945 | $ | 6,631 | $ | 1,908 | ||||||||||
Ratios to average net assets: | ||||||||||||||||||||
Expenses, net of expense reimbursements/waivers9 | 0.89 | %6 | 0.90 | %11 | 0.89 | % | 0.89 | % | 0.89 | %6 | ||||||||||
Expenses, prior to expense reimbursements/waivers9 | 0.89 | %6 | 0.90 | %11 | 0.89 | % | 4.31 | % | 6.16 | %6 | ||||||||||
Net investment income (loss) | 0.17 | %6 | (0.36 | )% | 0.50 | % | (0.00 | )%7 | (0.04 | )%6 | ||||||||||
Portfolio turnover rate | 20 | %8 | 82 | % | 43 | % | 50 | % | 104 | %8 |
EGShares India Infrastructure ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Year Ended March 31, 2013 | For the Year Ended March 31, 2012 | For the Period August 11, 20101 Through March 31, 2011 | |||||||||||||||||||
Net asset value, beginning of period | $ | 13.08 | $ | 11.35 | $ | 12.27 | $ | 14.99 | $ | 19.40 | $ | 20.00 | ||||||||||||
Investment operations: | ||||||||||||||||||||||||
Net investment income2 | 0.04 | 0.12 | 0.13 | 0.07 | 0.06 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (2.40 | ) | 1.65 | 4 | 0.27 | 4 | (2.60 | ) | (4.39 | ) | (0.61 | ) | ||||||||||||
Total from investment operations | (2.36 | ) | 1.77 | 0.40 | (2.53 | ) | (4.33 | ) | (0.60 | ) | ||||||||||||||
Distributions to shareholders: | ||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (1.32 | ) | (0.19 | ) | (0.08 | ) | — | ||||||||||||||
Net asset value, end of period | $ | 10.72 | $ | 13.08 | $ | 11.35 | $ | 12.27 | $ | 14.99 | $ | 19.40 | ||||||||||||
NET ASSET VALUE TOTAL RETURN5 | (18.04 | )% | 15.59 | % | 4.04 | % | (17.08 | )% | (22.19 | )% | (3.00 | )% | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 41,816 | $ | 47,736 | $ | 17,586 | $ | 51,513 | $ | 60,703 | $ | 85,377 | ||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||
Expenses, net of expense reimbursements/waivers9 | 0.86 | %6,12 | 0.88 | %11 | 0.86 | %10 | 0.85 | % | 0.85 | % | 0.85 | %6 | ||||||||||||
Expenses, prior to expense reimbursements/waivers9 | 0.86 | %6,12 | 0.88 | %11 | 0.86 | %10 | 1.61 | % | 1.69 | % | 2.24 | %6 | ||||||||||||
Net investment income | 0.70 | %6 | 0.90 | % | 1.18 | % | 0.53 | % | 0.39 | % | 0.11 | %6 | ||||||||||||
Portfolio turnover rate | 36 | %8 | 75 | % | 76 | % | 24 | % | 23 | % | 9 | %8 |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Less than $(0.005) |
4 | The realized and unrealized gain or loss on investments and foreign currency translation does not accord with the amounts reported in the Statements of Operations due to the timing of subscriptions or redemptions of Fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10). |
5 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. For the applicable periods shown, the total return would have been lower if certain expenses had not been reduced. |
6 | Annualized. |
7 | Less than (0.005)%. |
8 | Not annualized. |
9 | Effective April 1, 2013, EGA replaced the fee and expense structure with a Unified Fee. See Note 9 for additional information. |
10 | The ratio includes 0.01% for the period ended March 31, 2014 attributed to tax expense, which is outside the Unified Fee. |
11 | The ratio includes 0.03% for the period ended March 31, 2015 attributed to tax expense, which is outside the Unified Fee. |
12 | The ratio includes 0.01% for the period ended September 30, 2015 attributed to tax expense, which is outside the Unified Fee. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 43
Financial Highlights (concluded)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares India Small Cap ETF (Consolidated)
For the Period April 1, 2015 Through September 30, 2015 (Unaudited) | For the Year Ended March 31, 2015 | For the Year Ended March 31, 2014 | For the Year Ended March 31, 2013 | For the Year Ended March 31, 2012 | For the Period July 7, 20101 Through March 31, 2011 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.48 | $ | 12.74 | $ | 12.45 | $ | 14.39 | $ | 19.29 | $ | 20.00 | ||||||||||||
Investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | 0.07 | 0.05 | 0.26 | 0.10 | 0.14 | (0.01 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency translations | (2.74 | ) | 4.77 | 0.25 | 3 | (1.94 | ) | (4.88 | ) | (0.68 | ) | |||||||||||||
Total from investment operations | (2.67 | ) | 4.82 | 0.51 | (1.84 | ) | (4.74 | ) | (0.69 | ) | ||||||||||||||
Distributions to shareholders: | ||||||||||||||||||||||||
Net investment income | — | (0.08 | ) | (0.22 | ) | (0.10 | ) | (0.16 | ) | (0.02 | ) | |||||||||||||
Return of Capital | — | — | — | (0.00 | )9 | — | — | |||||||||||||||||
Total distributions | — | (0.08 | ) | (0.22 | ) | (0.10 | ) | (0.16 | ) | (0.02 | ) | |||||||||||||
Net asset value, end of period | $ | 14.81 | $ | 17.48 | $ | 12.74 | $ | 12.45 | $ | 14.39 | $ | 19.29 | ||||||||||||
NET ASSET VALUE TOTAL RETURN4 | (15.27 | )% | 37.86 | % | 4.29 | % | (12.87 | )% | (24.33 | )% | (3.45 | )% | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | �� | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 21,475 | $ | 28,850 | $ | 16,560 | $ | 21,163 | $ | 26,616 | $ | 34,729 | ||||||||||||
Ratios to average net assets: | ||||||||||||||||||||||||
Expenses, net of expense reimbursements/waivers5 | 0.85 | %6 | 0.92 | %11 | 0.86 | %10 | 0.85 | % | 0.85 | % | 0.90 | %6,7 | ||||||||||||
Expenses, prior to expense reimbursements/waivers5 | 0.85 | %6 | 0.92 | %11 | 0.86 | %10 | 2.09 | % | 2.26 | % | 3.12 | %6,7 | ||||||||||||
Net investment income (loss) | 0.91 | %6 | 0.33 | % | 2.36 | % | 0.76 | % | 0.84 | % | (0.06 | )%6 | ||||||||||||
Portfolio turnover rate | 3 | %8 | 117 | % | 56 | % | 43 | % | 125 | % | 1 | %8 |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | The realized and unrealized gain on investments and foreign currency translation does not accord with the amounts reported in the Statements of Operations due to the timing of subscriptions of Fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10). |
4 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. For the applicable periods shown, the total return would have been lower if certain expenses had not been reduced. |
5 | Effective April 1, 2013, EGA replaced the fee and expense structure with a Unified Fee. See Note 9 for additional information. |
6 | Annualized. |
7 | The ratio includes 0.05% for the period ended March 31, 2011 attributed to interest expense, which was outside the expense cap in place at that time. |
8 | Not annualized. |
9 | Less than $(0.005) |
10 | The ratio includes 0.01% for the period ended March 31, 2014 attributed to tax expense, which is outside the Unified Fee. |
11 | The ratio includes 0.07% for the period ended March 31, 2015 attributed to tax expense, which is outside the Unified Fee. |
The accompanying notes are an integral part of these financial statements.
44 EGA Emerging Global Shares Trust
Notes to Financial Statements
September 30, 2015 (Unaudited)
1. ORGANIZATION
EGA Emerging Global Shares Trust (the “Trust”) is a Delaware statutory trust organized on September 12, 2008. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of the date of this report, the Trust consisted of twelve separate non-diversified series and five diversified series, each of which tracks an underlying index (each, an “Underlying Index”). As of the date of this report, only the following exchange-traded funds (each an “ETF” or “Fund” and collectively the “ETFs” or “Funds”) were publicly offered:
Funds | Commencement of Operations | |
EGShares Beyond BRICs ETF (“Beyond BRICs ETF”) | August 15, 2012 | |
EGShares Blue Chip ETF (“Blue Chip ETF”) | April 23, 2014 | |
EGShares Brazil Infrastructure ETF (“Brazil Infrastructure ETF”) | February 24, 2010 | |
EGShares EM Core ex-China ETF (“EM Core ex-China ETF”) | September 2, 2015 | |
EGShares EM Quality Dividend ETF (“EM Quality Dividend ETF”) | August 4, 2011 | |
EGShares Emerging Markets Consumer ETF (“Consumer ETF”) | September 14, 2010 | |
EGShares Emerging Markets Core ETF (“Core ETF”) | October 16, 2012 | |
EGShares Emerging Markets Domestic Demand ETF (“Domestic Demand ETF”) | August 15, 2012 | |
EGShares India Consumer ETF (“India Consumer ETF”) | August 10, 2011 | |
EGShares India Infrastructure ETF (“India Infrastructure ETF”) | August 11, 2010 | |
EGShares India Small Cap ETF (“India Small Cap ETF”) | July 7, 2010 |
The Beyond BRICs ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the FTSE Beyond BRICs Index (the “BBRC Underlying Index”). The BBRC Underlying Index is designed to represent the performance of a diversified basket of 90 liquid companies in Emerging and Frontier markets excluding Brazil, Russia, India, China (BRIC), Taiwan and Argentina as defined by FTSE’s Country Classification System. The BBRC Underlying Index is market capitalization weighted, and has 75% exposure to emerging markets and 25% to frontier markets at rebalance.
The Blue Chip ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the EGAI Developed Markets Blue Chip EM Access IndexSM (the “BCHP Underlying Index”). The BCHP Underlying Index is an equal-weighted equity index comprised of 30 well-established, widely recognized companies that are domiciled and publicly traded in developed market countries (including the U.S.) and have, as of the most recent constitution, a U.S. Dollar equivalent market capitalization of at least $2 billion (based on then-current exchange rates) and measurable revenue from developing market countries.
The Brazil Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the FTSE Brazil Infrastructure Extended Index (the “BRXX Underlying Index”). The BRXX Underlying Index is a free-float adjusted capitalization weighted index designed to represent the performance of the 30 largest Brazilian companies ranked by full market capitalization that FTSE determines to be representative of Brazil’s infrastructure industries.
The EM Core ex-China ETF’s investment objective seeks investment results that correspond (before fees and expenses) to the price and yield performance of the EGAI Emerging Markets ex-China IndexSM.(the “XCEM Underlying Index”). The XCEM Underlying Index is a market capitalization weighted index designed to provide broad, core emerging markets equity exposure by measuring the stock performance of up to 700 companies across the EGAI Emerging Markets Universe, excluding those listed or domiciled in China and Hong Kong.
The EM Quality Dividend ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the EGAI Emerging Markets Quality Dividend IndexSM (the “HILO Underlying Index”). The HILO Underlying Index is an equal weighted index designed to represent a portfolio of approximately 50 companies in developing markets that each have a higher dividend yield than the average dividend yield in the EGAI Developing Markets Universe.
The Consumer ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans 30 IndexSM (the “ECON Underlying Index”). The ECON Underlying Index is a free-float market capitalization weighted stock market index designed to measure the performance of 30 leading emerging market companies in the Consumer Goods and Consumer Services Industries, as defined by S&P Dow Jones Indices’ proprietary industry classification system.
EGA Emerging Global Shares Trust 45
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
The Core ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Emerging Markets Core Index (the “EMCR Underlying Index”). The EMCR Underlying Index is an equal weighted index designed to measure the market performance of up to 116 companies that S&P Dow Jones Indices determines to be representative of all industries domiciled in emerging market countries, subject to a 15% country cap.
The Domestic Demand ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Emerging Markets Domestic Demand Index (the “EMDD Underlying Index”). The EMDD Underlying Index is a free-float market capitalization weighted stock market index comprised of 50 emerging market companies that derive a significant portion of their revenues from sectors that are less reliant on exports and therefore driven by domestic demand, specifically those companies in the consumer staples, consumer discretionary, telecommunications services, healthcare and utilities sectors.
The India Consumer ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Consumer Index (the “INCO Underlying Index”). The INCO Underlying Index is a maximum 30-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the consumer industry, as defined by Indxx’s proprietary methodology, in India.
The India Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Infrastructure Index (the “INXX Underlying Index”). The INXX Underlying Index is a maximum 30-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the infrastructure industry, as defined by Indxx’s proprietary methodology, in India.
The India Small Cap ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Small Cap Index (the “SCIN Underlying Index”). The SCIN Underlying Index is a maximum 75-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the small cap segment in India.
The classifications and presentations within the Schedule of Investments are consistent with other funds in the EGA Fund family and may not depict the same classifications and presentations in certain marketing materials.
2. CONSOLIDATION OF SUBSIDIARIES
The Consolidated Schedules of Investments; Consolidated Statements of Assets and Liabilities, of Operations and of Changes in Net Assets; and the Consolidated Financial Highlights of the ETFs listed below include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.
Funds | Wholly Owned Subsidiary | |
Consumer ETF | EG Shares Consumer Mauritius | |
Core ETF | EG Shares Core Mauritius | |
Domestic Demand ETF | EG Shares Domestic Demand Mauritius | |
EM Quality Dividend ETF* | EG Shares High Income/Low Beta Mauritius* | |
India Consumer ETF | EG Shares India Consumer Mauritius | |
India Infrastructure ETF | EG Shares India Infrastructure Mauritius | |
India Small Cap ETF | EG Shares India Small Cap Mauritius |
* | EG Shares High Income/Low Beta Mauritius was closed effective June 2015 and is no longer a subsidiary of the EM Quality Dividend ETF. |
The Consumer ETF, Core ETF and Domestic Demand ETF may each invest its assets in a wholly owned subsidiary in Mauritius, which in turn invests virtually all of its assets in Indian securities, based on the number of Indian securities that are included in each ETF’s respective Underlying Index.
The India Consumer ETF, India Infrastructure ETF and India Small Cap ETF invest substantially all of their assets in wholly owned subsidiaries in Mauritius, which in turn invest virtually all of their assets in Indian securities, based on the number of Indian securities that are included in each ETF’s respective Underlying Index.
By investing in a wholly owned subsidiary, the Funds listed in the table above each obtain benefits under the tax treaty between Mauritius and India. Each subsidiary may be subject to withholding taxes imposed by the Indian government on dividends, interest and realized
46 EGA Emerging Global Shares Trust
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
capital gains should new legislation be passed to modify the current tax treaty with Mauritius. Any change in the provisions of this treaty could result in the imposition of withholding and other taxes on these ETFs by authorities in India. This would reduce the return on investment and the return received by each ETF’s shareholders.
A summary of each ETF’s investment in its corresponding subsidiary is as follows:
Funds | Inception Date of Subsidiary | Subsidiary Net Assets at September 30, 2015 | % of ETF’s Total Net Assets at September 30, 2015 | |||||||||
Consumer ETF | September 14, 2010 | $ | 59,004,076 | 8.2 | % | |||||||
Core ETF | October 16, 2012 | 711,902 | 14.0 | |||||||||
Domestic Demand ETF | August 15, 2012 | 3,602,234 | 11.4 | |||||||||
India Consumer ETF | August 10, 2011 | 78,124,107 | 100.0 | |||||||||
India Infrastructure ETF | August 11, 2010 | 41,849,794 | 100.1 | |||||||||
India Small Cap ETF | July 7, 2010 | 21,434,211 | 99.8 |
3. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual amounts could differ from these estimates. The following summarizes the significant accounting policies of the ETFs.
Indemnifications
In the normal course of business, the Trust enters into contracts on behalf of its series that contain a variety of representations that provide general indemnifications. The Trust’s series’ maximum exposure under these arrangements cannot be known as this would involve future claims that may be made against a series of the Trust that have not yet occurred; however, the Trust expects any risk of loss by a series to be remote. The assets of a series may not be used to satisfy the liabilities of any other series.
Investment Valuation
The Net Asset Value (“NAV”) per share is computed as of the scheduled close of regular trading on the New York Stock Exchange (“NYSE”), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading. The NAV per share of an ETF is computed by dividing the value of the ETF’s portfolio securities, cash and other assets (including accrued interest), less all liabilities (including accrued expenses) by the total number of shares outstanding at the time such computation is made.
Securities Valuation
Foreign equity securities are valued at the last reported sale price on the principal exchange on which such securities are traded. U.S. listed equity securities and listed ADRs and GDRs are valued at the last reported sale price on the principal exchange on which such securities are traded, as of the close of regular trading on the NYSE on the day the securities are being valued or, if there are no sales, at the mean of the most recent bid and asked prices. U.S. equity securities that are traded in over-the-counter markets are valued at the NASDAQ Official Closing Price as of the close of regular trading on the NYSE on the day the securities are valued or, if there are no sales, at the mean of the most recent bid and asked prices. Securities for which market quotations are not readily available, including restricted securities, are valued by a method that the Board of Trustees of the Trust (the “Board”) believes accurately reflects fair value. The value of assets denominated in foreign currencies is converted into U.S. dollars using exchange rates deemed appropriate by management of the ETFs. Use of a rate different from the rate used by the index provider may adversely affect an ETF’s ability to track its Underlying Index.
Foreign Currency Translations
Investments denominated in foreign currencies are subject to additional risk factors as compared to investments denominated in U.S. dollars. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar. Generally, when the U.S. dollar gains in value against a foreign currency, an investment traded in that foreign currency loses value because that currency is worth fewer U.S. dollars. Risks related to foreign currencies also include those
EGA Emerging Global Shares Trust 47
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
related to economic or political developments, market inefficiencies or a higher risk that essential investment information may be incomplete, unavailable or inaccurate. A U.S. dollar investment in depositary receipts or ordinary shares of foreign issuers traded on U.S. exchanges is indirectly subject to foreign currency risk to the extent that the issuer conducts its principal business in markets where transactions are denominated in foreign currencies.
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities and income items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The ETFs do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gains or losses from investments.
Realized foreign exchange gains or losses arise from sales of foreign currencies; currency gains or losses realized between the trade and settlement dates on securities transactions; and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
Security Transactions and Related Income
Investment transactions are recorded on trade date. The ETFs determine the gain or loss realized from the investment transactions by comparing the identified cost, which is the same basis used for federal income tax purposes, with the net sales proceeds. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis, including the accretion of discounts and amortization of premiums.
Federal Income Taxes
The Beyond BRICs ETF, Blue Chip ETF, Brazil Infrastructure ETF, EM Quality Dividend ETF, Consumer ETF, Core ETF, Domestic Demand ETF, India Consumer ETF, India Infrastructure ETF and India Small Cap ETF have qualified and continue to qualify, and the EM Core ex-China ETF intends to qualify, as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended. If so qualified, an ETF will not be subject to federal income tax to the extent it distributes substantially all of its net investment income and capital gains to shareholders. Each ETF expects to declare and pay all of its net investment income, if any, to shareholders as dividends annually (quarterly for EM Quality Dividend ETF), and will also declare and pay net realized capital gains, if any, at least annually, except where the costs of such distributions exceed the amount of tax that the distributions are intended to avoid, in which case the ETF will pay the applicable tax. An ETF may distribute such investment income and capital gains more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on the ETF. Distributions to shareholders are recorded on the ex-dividend date.
The ETFs are subject to accounting standards that provide guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. These standards require the evaluation of tax positions taken or expected to be taken by the ETFs and whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Accounting for uncertainty in income taxes requires management of the ETFs to analyze all open tax years as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. Open tax years are those years that are open for examination by the relevant income taxing authority. As of March 31, 2015, open federal and state income tax years include the tax periods or years ended March 31, 2012, March 31, 2013, March 31, 2014 and March 31, 2015. The ETFs have no examinations in progress.
There is no tax liability resulting from uncertain income tax positions taken or expected to be taken. The ETFs are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will significantly change in the next twelve months.
Expenses
Expenses of the Trust, which are directly identifiable to a specific ETF, are applied to that ETF. Please refer to Note 9 for further discussion on fund expenses and the Unified Fee.
48 EGA Emerging Global Shares Trust
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
4. INVESTMENT RISKS
The ETFs are subject to emerging markets risk. Investments in emerging market securities are subject to even greater risks than for foreign investments generally, including increased risks of: illiquidity of securities; price volatility; inflation or deflation; restrictions on foreign investment; nationalization; higher taxation; economic and political instability; pervasive corruption and crime; less governmental regulation; and less developed legal systems. These risks may be greater for investments in frontier markets.
Each ETF concentrates its investments in a particular industry or a group of industries to approximately the same extent as its respective underlying index, and as such, may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries.
Each ETF will invest in specific countries or geographic regions to approximately the same extent as its underlying index. To the extent that an ETF invests a significant portion of its assets in a particular country or a specific geographic region, the ETF will generally have more exposure to that country’s or region’s economic risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a country or region where a substantial portion of an ETF’s assets are invested, the ETF may experience increased volatility or illiquidity of its portfolio holdings, which may adversely affect that ETF’s performance.
Because the Brazil Infrastructure ETF invests predominantly in Brazilian securities, its NAV will be much more sensitive to changes in economic, political and other factors within Brazil than would a fund that invested in a greater variety of countries. The Brazilian economy has experienced in the past, and may continue to experience, periods of high inflation rates and political unrest. While the Brazilian economy has experienced growth in recent years, there is no guarantee that this growth will continue.
Because the Brazil Infrastructure ETF and India Infrastructure ETF concentrate their investments in the infrastructure sectors of Brazil and India, respectively, these ETFs may be adversely affected by increased price volatility of securities in that sector, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that sector.
Because the Consumer ETF and India Consumer ETF concentrate their investments in the consumer goods and consumer services industries (specifically the consumer goods and consumer services industries of India for the India Consumer ETF), these ETFs may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries. The success of consumer goods and consumer services suppliers and retailers is tied closely to the performance of the domestic and international economy, interest rates, currency exchange rates, competition, preferences, and consumer confidence.
Because the Domestic Demand ETF concentrates its investments in the consumer staples, consumer discretionary, telecommunications services, healthcare and/or utilities industries, the ETF may be adversely affected by increased price volatility of securities in those industries, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries.
Because the India Consumer ETF, India Infrastructure ETF and India Small Cap ETF invest predominantly in Indian securities, their NAVs will be much more sensitive to changes in economic, political and other factors within India than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.
The India Small Cap ETF primarily invests in small capitalization companies. Small cap companies may have greater volatility in price than the stocks of large cap companies due to limited product lines or resources or a dependency upon a particular market niche.
5. DISTRIBUTION AGREEMENT
ALPS Distributors, Inc., (the “Distributor”) serves as the distributor of creation units (see Note 9) for the ETFs pursuant to a distribution agreement. The Distributor does not maintain a secondary market in shares. The ETFs have adopted a Distribution and Service Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Plan, each ETF is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. For the period ended September 30, 2015, no fees were paid by the ETFs under the Plan, and there are no current plans to impose these fees.
EGA Emerging Global Shares Trust 49
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
6. FEDERAL INCOME TAX MATTERS
For the period ended September 30, 2015, federal tax cost of investments and net unrealized appreciation (depreciation) were as follows:
Funds | Federal Tax Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Beyond BRICs ETF | $ | 237,432,090 | $ | 2,053,157 | $ | (56,944,595 | ) | $ | (54,891,438 | ) | ||||||
Blue Chip ETF | 5,259,430 | 238,902 | (1,227,189 | ) | (988,287 | ) | ||||||||||
Brazil Infrastructure ETF | 20,710,316 | 155,228 | (12,458,133 | ) | (12,302,905 | ) | ||||||||||
EM Core ex-China ETF | 1,982,072 | 39,052 | (90,184 | ) | (51,132 | ) | ||||||||||
EM Quality Dividend ETF | 20,268,117 | 96,435 | (2,660,916 | ) | (2,564,481 | ) | ||||||||||
Consumer ETF | 859,133,751 | 67,891,996 | (201,992,610 | ) | (134,100,614 | ) | ||||||||||
Core ETF | 5,817,552 | 278,849 | (1,006,853 | ) | (728,004 | ) | ||||||||||
Domestic Demand ETF | 34,871,004 | 1,372,887 | (4,919,123 | ) | (3,546,236 | ) | ||||||||||
India Consumer ETF | 82,694,879 | 2,325,534 | (7,107,332 | ) | (4,781,798 | ) | ||||||||||
India Infrastructure ETF | 48,935,561 | 4,229,268 | (11,580,661 | ) | (7,351,393 | ) | ||||||||||
India Small Cap ETF | 26,242,038 | 1,455,896 | (6,328,161 | ) | (4,872,265 | ) |
For the period or year ended March 31, 2015, the components of accumulated earnings (losses) on a tax-basis were as follows:
Funds | Undistributed Ordinary Income | Accumulated Capital and Other Losses | Net Unrealized Appreciation (Depreciation) | Total Accumulated Earnings (Losses) | ||||||||||||
Beyond BRICs ETF | $ | 3,133,397 | $ | (2,034,014 | ) | $ | (30,037,331 | ) | $ | (28,937,948 | ) | |||||
Blue Chip ETF | 14,130 | (110,086 | ) | (342,434 | ) | (438,390 | ) | |||||||||
Brazil Infrastructure ETF | 77,287 | (28,464,152 | ) | (7,670,080 | ) | (36,056,945 | ) | |||||||||
EM Quality Dividend ETF | 134,610 | (25,977,968 | ) | (525,576 | ) | (26,368,934 | ) | |||||||||
Consumer ETF | 92,937 | (21,829,771 | ) | (3,031,074 | ) | (24,767,908 | ) | |||||||||
Core ETF | 6,804 | 251 | (107,533 | ) | (100,478 | ) | ||||||||||
Domestic Demand ETF | 65,753 | (137,303 | ) | 1,732,770 | 1,661,220 | |||||||||||
India Consumer ETF | — | (949,866 | ) | 3,946,178 | 2,996,312 | |||||||||||
India Infrastructure ETF | 205,528 | (47,444,400 | ) | (3,426,246 | ) | (50,665,118 | ) | |||||||||
India Small Cap ETF | 66,949 | (9,481,487 | ) | (1,630,864 | ) | (11,045,402 | ) |
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, mark to market on Passive Foreign Investment Companies (“PFIC”) securities and deferral of post-October and December losses.
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of redemptions in kind, PFIC sales adjustments, non-deductible offering costs, return of capital distributions and tax treatment of currency gains and losses. Results of operations and net assets were not affected by these reclassifications.
50 EGA Emerging Global Shares Trust
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
Certain net losses incurred after October 31 and December 31, and within the taxable year or period are deemed to arise on the first business day of the ETFs’ next taxable year. For the period or year ended March 31, 2015, the ETFs deferred to April 1, 2015 these losses of:
Funds | Late Year Ordinary Losses | Post October Capital Losses | ||||||
Beyond BRICs ETF | $ | — | $ | 2,034,014 | ||||
Blue Chip ETF | — | — | ||||||
Brazil Infrastructure ETF | — | 2,459,477 | ||||||
EM Quality Dividend ETF | — | 3,462,675 | ||||||
Consumer ETF | — | 964,177 | ||||||
Core ETF | — | — | ||||||
Domestic Demand ETF | — | 2,115 | ||||||
India Consumer ETF | 169,858 | 175,867 | ||||||
India Infrastructure ETF | — | 219,442 | ||||||
India Small Cap ETF | — | — |
At March 31, 2015, for federal income tax purposes, the following ETFs had capital loss carryforwards available to offset future capital gains:
Carryforwards with No Expiration* | Carryforwards Expiring In | |||||||||||||||
Funds | Short-Term Capital Loss Carryforward | Long-Term Capital Loss Carryforward | Fiscal Year 2018 | Fiscal Year 2019 | ||||||||||||
Beyond BRICs ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Blue Chip ETF | 110,086 | — | — | — | ||||||||||||
Brazil Infrastructure ETF | 8,143,770 | 17,860,905 | — | — | ||||||||||||
EM Quality Dividend ETF | 16,819,429 | 5,526,604 | — | — | ||||||||||||
Consumer ETF | — | 20,865,594 | — | — | ||||||||||||
Core ETF | — | — | — | — | ||||||||||||
Domestic Demand ETF | 122,015 | 13,173 | — | — | ||||||||||||
India Consumer ETF | 584,684 | 19,457 | — | — | ||||||||||||
India Infrastructure ETF | 14,011,888 | 33,213,070 | — | — | ||||||||||||
India Small Cap ETF | 1,254,248 | 8,227,239 | — | — |
* | Capital loss carryforwards for tax years beginning after December 22, 2010 do not expire and are carried forward in character. Amounts are subject to IRC Section 382-384 limitation in subsequent years. |
7. FAIR VALUE MEASUREMENT
Financial Accounting Standards Board’s Accounting Standards Codification, Section 820-10, Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement. Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of the ETFs’ investments. These inputs are summarized in three broad levels as follows:
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
EGA Emerging Global Shares Trust 51
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available representing the ETFs’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The ETFs have adopted the Accounting Standard Update, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements which provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose: i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 or Level 3 positions; ii) transfers between all levels (including Level 1 and Level 2) are required to be disclosed on a gross basis (i.e. transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer; and iii) purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.
The inputs and methodology used for valuing the securities are not necessarily an indication of the risk associated with investing in those securities.
The following summarizes inputs used as of September 30, 2015 in valuing the ETFs’ assets and liabilities carried at fair value:
Assets | ||||||||||||||||
Funds | Level 1 Common Stocks | Level 2 | Level 3 Common Stocks | Total | ||||||||||||
Beyond BRICs ETF* | $ | 182,540,652 | $ | — | $ | — | $ | 182,540,652 | ||||||||
Blue Chip ETF* | 4,271,143 | — | — | 4,271,143 | ||||||||||||
Brazil Infrastructure ETF** | 8,407,411 | — | — | 8,407,411 | ||||||||||||
EM Core ex-China ETF* | 1,930,940 | — | — | 1,930,940 | ||||||||||||
EM Quality Dividend ETF* | 17,703,636 | — | — | 17,703,636 | ||||||||||||
Consumer ETF* | 725,033,137 | — | — | 725,033,137 | ||||||||||||
Core ETF* | 5,063,328 | — | 26,220 | 5,089,548 | ||||||||||||
Domestic Demand ETF* | 31,324,768 | — | — | 31,324,768 | ||||||||||||
India Consumer ETF** | 77,913,081 | — | — | 77,913,081 | ||||||||||||
India Infrastructure ETF** | 41,584,168 | — | — | 41,584,168 | ||||||||||||
India Small Cap ETF** | 21,360,901 | — | 8,872 | 21,369,773 |
* | Please refer to the schedule/consolidated schedule of investments to view securities segregated by country. |
** | Please refer to the schedule/consolidated schedule of investments to view securities segregated by industry type. |
52 EGA Emerging Global Shares Trust
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
Reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining the fair value during the period ended September 30, 2015:
Core ETF | ||||
Common Stocks | ||||
Balance as of March 31, 2015 | $ | — | ||
Realized gain (loss)1 | — | |||
Change in unrealized appreciation (depreciation)2 | (66,583 | ) | ||
Purchases | 4,692 | |||
Sales | — | |||
Transfers into Level 33 | 88,111 | |||
Transfers out of Level 34 | — | |||
Balance as of September 30, 2015 | $ | 26,220 | ||
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2015 is: | $ | (66,583 | ) |
India Small Cap ETF | ||||
Common Stocks | ||||
Balance as of March 31, 2015 | $ | 9,306 | ||
Realized gain (loss)1 | — | |||
Change in unrealized appreciation (depreciation)2 | (434 | ) | ||
Purchases | — | |||
Sales | — | |||
Transfers into Level 33 | — | |||
Transfers out of Level 34 | — | |||
Balance as of September 30, 2015 | $ | 8,872 | ||
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2015 is: | $ | (434 | ) |
1 | This amount is included in net realized gain (loss) from investment transactions in the Statement of Operations. |
2 | This amount is included in the net change in unrealized appreciation (depreciation) from investment transactions in the Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. |
3 | Transfers into Level 3 are as a result of the unavailability of a quoted price in an active market for identical investment or the unavailability of other significant observable inputs. |
4 | Transfers out of Level 3 are as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs. |
To estimate fair value, the Trust’s Valuation Committee (the “Committee”) followed procedures established by the Board.
Each Fund values its investments at fair value pursuant to procedures adopted by the Board if (1) market quotations are insufficient or not readily available or (2) Emerging Global Advisors, LLC (“EGA”) believes that the values available are unreliable. The Committee performs certain functions as they relate to the administration and oversight of the Funds’ valuation procedures. Under these procedures, the Committee convenes on a regular and ad-hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable inputs, when arriving at fair value. The Trust’s policy is to recognize transfers in and transfers out at the fair value as of the beginning of the period.
In determining fair valuations, inputs may include duration of fair valuation event, comparable benchmark performance, and an illiquidity discount. Discounts may be applied based on the nature or duration of any restrictions on the disposition of the investments. The Committee performs regular reviews of securities that are fair valued for more than five days.
Due to the inherent uncertainty of valuations, fair values may differ significantly from the values that would have been used had an active market existed. Fair valuation could result in a different NAV than a NAV determined by using market quotes.
EGA Emerging Global Shares Trust 53
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
The following is a summary of the significant unobservable inputs used as of September 30, 2015 in valuing Level 3 securities:
Core ETF | Fair Value | Valuation Technique | Unobservable Input | Value of Unobservable Inputs | ||||
Investments in Securities | ||||||||
Common Stocks | ||||||||
COSCO Pacific, Ltd. | $ 20,786 | Adjustment to market based on duration of fair value event, illiquidity discount and comparable benchmark performance | Illiquidity Discount | 15.00% |
Core ETF | Fair Value | Valuation Technique | Unobservable Input | Value of Unobservable Inputs | ||||
Investments in Securities | ||||||||
Common Stocks | ||||||||
Hanergy Thin Film Power Group, Ltd. | $ 604 | Adjustment to market based on duration of fair value event, illiquidity discount and comparable benchmark performance | Illiquidity Discount | 50.00% |
Core ETF | Fair Value | Valuation Technique | Unobservable Input | Value of Unobservable Inputs | ||||
Investments in Securities | ||||||||
Common Stocks | ||||||||
Sihuan Pharmaceutical Holdings Group, Ltd. | $ 4,830 | Adjustment to market based on duration of fair value event and illiquidity discount | Illiquidity Discount | 50.00% |
India Small Cap ETF | Fair Value | Valuation Technique | Unobservable Input | Value of Unobservable Inputs | ||||
Investments in Securities | ||||||||
Common Stocks | ||||||||
Nagarjuna Fertilizers & Chemicals, Ltd. | $ 8,872 | Adjustment to market based on duration of fair value event and illiquidity discount | Illiquidity Discount | 88.40% |
Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. A significant increase (decrease) in the comparable benchmark may result in a corresponding increase (decrease) in fair value. A significant increase (decrease) in the illiquidity discount may result in a corresponding decrease (increase) in fair value.
8. INVESTMENT TRANSACTIONS
The table below displays each ETF’s investment transactions during the period ended September 30, 2015. The Purchases column represents the aggregate purchases of investments excluding cost of in-kind purchases and short-term investments. The Sales column represents the aggregate sales of investments excluding proceeds from in-kind sales and short-term investments. Purchases In-Kind are the aggregate of all in-kind purchases and Sales In-Kind are the aggregate of all proceeds from in-kind sales. The transactions for each of these categories are as follows:
Funds | Purchases | Sales | Purchases In-Kind | Sales In-Kind | ||||||||||||
Beyond BRICs ETF | $ | 45,651,836 | $ | 66,487,354 | $ | 1,697,844 | $ | 37,493,062 | ||||||||
Blue Chip ETF | 863,518 | 1,137,508 | — | 2,459,681 | ||||||||||||
Brazil Infrastructure ETF | 1,298,391 | 590,337 | — | — | ||||||||||||
EM Core ex-China ETF | 1,164,995 | — | 817,078 | — | ||||||||||||
EM Quality Dividend ETF | 14,327,149 | 16,019,672 | — | 1,710,854 | ||||||||||||
Consumer ETF | 153,409,308 | 184,428,818 | 31,167,477 | 232,144,378 | ||||||||||||
Core ETF | 1,323,081 | 1,043,037 | 814,445 | — | ||||||||||||
Domestic Demand ETF | 6,465,031 | 5,809,883 | 3,700,600 | 1,621,981 | ||||||||||||
India Consumer ETF | 16,623,085 | 15,826,391 | — | — | ||||||||||||
India Infrastructure ETF | 22,395,774 | 17,974,013 | — | — | ||||||||||||
India Small Cap ETF | 734,942 | 3,444,420 | — | — |
54 EGA Emerging Global Shares Trust
Notes to Financial Statements (continued)
September 30, 2015 (Unaudited)
9. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Effective April 1, 2013, EGA implemented a unified fee (“Unified Fee”) structure for all of the series of the ETF Trust. Under the Unified Fee, EGA took on the contractual obligation to pay all ordinary operating expenses of the ETFs, except for the fee payment under the investment advisory agreements between EGA and the Trust, payments under each series’ Rule 12b-1 plan (if ever implemented), brokerage expenses, taxes, interest, litigation expenses and other non-routine or extraordinary expenses.
EGA entered into a written fee waiver agreement (“BBRC Fee Waiver Agreement”) pursuant to which EGA has agreed to waive its advisory fee to 0.58% of the Beyond BRICs ETF Fund’s average daily net assets. The BBRC Fee Waiver Agreement will remain in effect and will be contractually binding until July 28, 2016. The BBRC Fee Waiver Agreement may be terminated at any time by the Board, but may not be terminated by EGA during the term of the BBRC Fee Waiver Agreement. The BBRC Fee Waiver Agreement shall automatically terminate upon the termination of the Advisory Agreement or, with respect to the Fund, in the event of merger or liquidation of the Fund.
EGA also entered into a written fee waiver agreement (“XCEM Fee Waiver Agreement”) pursuant to which EGA has agreed to waive its advisory fee to 0.35% of the Fund’s average daily net assets. The XCEM Fee Waiver Agreement will remain in effect and will be contractually binding until August 11, 2017. The XCEM Fee Waiver Agreement may be terminated at any time by the Board, but may not be terminated by EGA during the term of the Fee XCEM Waiver Agreement. The XCEM Fee Waiver Agreement shall automatically terminate upon the termination of the Advisory Agreement or, with respect to the Fund, in the event of merger or liquidation of the Fund.
The advisory fee for the remaining ETFs in the Trust is 0.85% of the Funds’ average daily net assets, with the exception of Consumer ETF (0.85% of the first $1 billion, 0.75% of the next $1 billion, and 0.70% for amounts over $2 billion), Core ETF (0.70%), the India Consumer ETF (0.89%) and the Blue Chip ETF (0.60%).
The Bank of New York Mellon serves as the ETFs’ Administrator, Custodian, Fund Accountant and Transfer Agent pursuant to a Fund Administration and Accounting Agreement, a Custody Agreement and a Transfer Agency and Service Agreement, respectively.
Since September 1, 2014, an employee of EGA has served as Chief Compliance Officer and Anti-Money Laundering Officer for the Trust.
10. CREATION AND REDEMPTION TRANSACTIONS
The ETFs issue and redeem shares on a continuous basis at NAV in blocks of 50,000 shares called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of an ETF.
Only “Authorized Participants” may purchase or redeem shares directly from an ETF. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or do not have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the ETFs. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
Except as discussed below, the consideration for the purchase of Creation Units of an ETF generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a representation of the corresponding Underlying Index and an amount of cash. The consideration for the purchase of Creation Units of the Brazil Infrastructure ETF, India Consumer ETF, India Infrastructure ETF and India Small Cap ETF consists solely of cash in U.S. dollars. Investors transacting in Creation Units for cash pay an additional variable charge to compensate the relevant ETF for brokerage and market impact expenses relating to investing in portfolio securities. This charge is either debited or credited to Paid-in Capital.
EGA Emerging Global Shares Trust 55
Notes to Financial Statements (concluded)
September 30, 2015 (Unaudited)
11. SUBSEQUENT EVENTS
In preparing these financial statements, the Funds’ management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
On September 18, 2015, EGA announced that it will liquidate two Funds. The Board authorized these Fund liquidations and the affected ETFs, listed below, were liquidated on October 30, 2015:
EGShares Blue Chip ETF
EGShares Brazil Infrastructure ETF
Since September 30, 2015, the following Funds paid income and liquidating dividends:
Fund | Ticker | Per Share Income Distributed | Per Share Principal Distributed | Payable Date | ||||||||||||
EGShares Blue Chip ETF | BCHP | $ | 0.07065 | $ | 18.18205 | 11/06/2015 | ||||||||||
EGShares Brazil Infrastructure ETF | BRXX | $ | 0.05330 | $ | 6.12415 | 11/06/2015 |
Other than the above subsequent events, no other notable events have occurred between year-end and the issuance of the financial statements.
56 EGA Emerging Global Shares Trust
Board Review and Approval of EGShares EM Core ex-China ETF Advisory Contract (Unaudited)
At the August 12, 2015 meeting (the “Meeting”) of the Board of Trustees (the “Board”) of EGA Emerging Global Shares Trust (the “Trust”), the Board, including those Trustees who are not “interested persons” (as that term is defined in the Investment Company Act of 1940 (“1940 Act”)) of the Trust (the “Independent Trustees”), approved the investment advisory agreement (the “Advisory Agreement”) between Emerging Global Advisors, LLC (“EGA”) and the Trust with respect to the EGShares EM Core ex-China ETF (the “Fund”), for a period of two years beginning August 12, 2015. Under the Advisory Agreement, EGA is obligated to pay all of the ordinary operating expenses of the Fund (the “Unified Fee”).
In considering approval of the Advisory Agreement, the Independent Trustees met in executive session with independent counsel, who provided assistance and advice. In considering the approval of the Advisory Agreement, the Board, including the Independent Trustees, reviewed the materials provided for the Meeting by EGA, including: (i) the bring-down letter that confirmed there were no changes to the materials provided by EGA at the February 26, 2015 Board meeting (other than the decrease in EGA’s assets under management); (ii) a copy of the Advisory Agreement; (iii) information describing the nature, quality, and extent of the services that EGA expects to provide to the Fund, and the fees that EGA proposes to charge for such services; (iv) information concerning the business, operations and compliance program of EGA; (v) a copy of the current Form ADV for EGA; and (v) a memorandum from Stradley Ronon Stevens & Young, LLP, counsel to the Trust and EGA, on the responsibilities of trustees in considering investment advisory arrangements under the 1940 Act.
In addition, the Board considered data compiled by EGA from an unaffiliated third party proprietary database comparing the proposed advisory fee and projected expense ratio of the Fund with the advisory fees and expense ratios of other U.S.-listed ETFs having similar investment objectives, indexes and underlying holdings, including other EGA-sponsored funds (the “Peer Group”). The data for the Peer Group included expense ratio information after fee waivers and reimbursements (the “net expense ratio”). The Board discussed the criteria used by EGA for selecting the Peer Group. The Board noted that the Peer Group and the Peer Group metrics for the Fund did not include the Fund itself. The Board, including the Independent Trustees, concluded that the data was useful and reliable for the purpose of reviewing the Advisory Agreement.
During their review of this information, the Board, including the Independent Trustees, focused on and analyzed the factors that they deemed relevant, including: the nature, quality, and extent of the services to be provided to the Fund by EGA; the personnel and operations of EGA; the profitability to EGA under the Advisory Agreement; the projected expense ratio and anticipated investment performance of the Fund; any ancillary benefits realized by EGA due to its relationship with the Fund and the Trust (i.e., “fall-out” benefits); and possible conflicts of interest.
In particular, the Board considered and reviewed the following with respect to the Fund:
(a) The nature, extent, and quality of services to be provided to the Fund by EGA. The Board reviewed the services that EGA is expected to provide to the Fund. In connection with the advisory services to be provided to the Fund, the Board noted EGA’s significant responsibilities as the Fund’s investment adviser, including: implementation of the investment management program of the Fund; management of the day-to-day investment and reinvestment of the assets in the Fund; determining daily baskets of deposit securities and cash components; executing portfolio security trades for purchases and redemptions of Fund shares conducted on a cash-in-lieu basis, as well as during index rebalances and reconstitutions; and oversight of general portfolio compliance with relevant law. The Board noted that they had also reviewed and considered most, if not all, of these items at Board meetings throughout the course of the year with respect to other ETF series of the Trust with similar investment objectives, strategies and risks.
The Board reviewed EGA’s experience, resources, strengths and its prior performance as an adviser and sub-adviser to the other ETF series of the Trust with similar investment objectives, strategies and risks. The Board also noted EGA’s procedures to manage potential conflicts of interest and EGA’s belief that management of the series of the Trust and EGA Frontier Diversified Core Fund does not present a material conflict of interest. Based on their consideration and review of the foregoing information, the Board concluded that the Fund was likely to benefit from the nature, quality, and extent of these services, as well as EGA’s ability to render such services based on its experience, operations and resources.
(b) Comparison of services to be provided and fees to be charged by EGA and other investment advisers to similar clients, and the cost of the services to be provided. The Board compared both the services to be rendered and the fees to be paid pursuant to the Advisory Agreement for the Fund to the contractual advisory fees of both EGA and other registered investment advisers providing services to similar ETFs in the Peer Group. In particular, the Board compared the Fund’s proposed advisory fee and projected total and net expense ratios to the advisory fees and net expense ratios of the other ETFs in the Peer Group as of July 30, 2015.
EGA Emerging Global Shares Trust 57
Board Review and Approval of EGShares EM Core ex-China ETF Advisory Contract (Unaudited) (concluded)
The Board noted that the proposed advisory fee of the Fund was above the median and average, but below the maximum, advisory fee of the other funds in the Peer Group. The Board considered the Fund’s projected expense ratio both before and after the fee waiver and expense reimbursement (the “Expense Limitation Agreement”) paid by EGA pursuant to a written agreement by EGA, which further reduced the Fund’s net expense ratio below the Unified Fee. The Board noted that the projected net expense ratio of the Fund was below the median and average net expense ratio of the other funds in the Peer Group.
The Board considered the appropriateness of the proposed advisory fee, and the projected total and net expense ratios, of the Fund compared to the advisory fees and net expense ratios of the ETFs in the Peer Group. The Board received information regarding the costs, including operational costs borne by EGA under the Unified Fee. The Board noted EGA’s assumption of the contractual obligation to limit the Fund’s ordinary operating expenses through the Unified Fee, which cannot be changed without shareholder approval. The Board also noted EGA’s 2-year commitment to further reduce expenses under the Expense Limitation Agreement.
After comparing the Fund’s proposed advisory fee, and projected total and net expense ratios, with those of the other funds in the Peer Group, and in light of the nature, quality, and extent of services to be provided by EGA and the costs incurred by EGA in rendering those services and absorbing the Fund’s ordinary operating expenses under the Unified Fee, and to further reduce expenses under the Expense Limitation Agreement, the Board concluded that the advisory fee to be paid to EGA with respect to the Fund was fair and reasonable.
(c) EGA’s profitability and the extent to which economies of scale would be realized as the Fund grows and whether fee levels would reflect such economies of scale. The Board noted that, because the Fund had not yet commenced operations, it was not possible to assess either EGA’s profitability or the potential for economies of scale. The Board acknowledged EGA’s contractual obligation to limit the Fund’s expenses through the Unified Fee and the Expense Limitation Agreement, and the effect of such obligation on EGA’s profitability based on information presented to the Board. The Board also considered EGA’s profitability with respect to the other ETF series of the Trust, noting that EGA had in the past introduced breakpoints to its advisory fee for certain series of the Trust when assets under management had reached a significant size.
The Board considered fall-out benefits received by EGA from its relationship with the Fund and the Trust. The Board noted EGA’s positive reputational benefits from the success of the funds in the Trust, including benefits to EGA Indices, a separate group within EGA, which sponsors indexes for the Fund and certain other ETF series of the Trust.
(d) Investment performance of EGA. The Board noted that, because the Fund had not commenced operations, it was not possible to assess EGA’s investment performance with respect to the Fund. The Board did consider EGA’s investment performance with respect to the other ETF series of the Trust, including ETF series with investment objectives, strategies and risks similar to the Fund, relative to their stated investment objectives to seek investment results that correspond (before fees and expenses) to the price and yield performance of the applicable underlying index that is referenced in each series’ investment objective, and EGA’s success in achieving each series’ objectives, including tracking difference (i.e., the difference of the returns between a fund and the underlying index it seeks to track) and tracking error (i.e., the volatility of the difference of the returns between a fund and the underlying index it seeks to track).
Conclusion. No single factor was determinative to the decision of the Board. Based on the foregoing and such other matters as were deemed relevant, the Board, including the Independent Trustees, concluded that the proposed advisory fee and projected expense ratio were reasonable in relation to the services to be provided by EGA to the Fund, as well as the costs to be incurred and benefits to be gained by EGA in providing such services. As a result, the Board, including the Independent Trustees, determined that the approval of the Advisory Agreement with EGA would be in the best interest of the Fund and its shareholders.
58 EGA Emerging Global Shares Trust
Board of Trustees and Officers (Unaudited)
The Trustees and officers of the Trust, along with their principal occupations over the past five years and their affiliations, if any, with EGA, are listed below. Unless otherwise noted, the address of each Trustee of the Trust is 155 West 19th Street, New York, NY 10011. The Statement of Additional Information includes additional information about Fund Trustee and is available, without charge, upon request at 155 West 19th Street, New York, NY 10011. The information below is as of September 30, 2015.
Name and Year of Birth | Position(s) Held with Trust | Term of Office1 and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex2 Overseen by Trustee | Other Directorships Held by Trustee | |||||
Independent Trustees | ||||||||||
Robert Willens, 1946 | Trustee | Since 2009 | Robert Willens, LLC (tax consulting), President, since January 2008. | 18 | Daxor Corp. (Medical Products and Biotechnology), since 2004. | |||||
Ron Safir, 1951 | Trustee | Since 2009 | Retired, since 2008. | 18 | None | |||||
Jeffrey D. Haroldson, 1957 | Trustee | Since 2009 | Bridgeton Holdings LLC (real estate investment and development), Chief Operating Officer & General Counsel, since 2013; Ridgewood Capital Advisors LLC (consulting and business advisory services), President since 2012; HDG Mansur Capital Group, LLC (international real estate company), President and Chief Operating Officer, 2004 to 2011. | 18 | None | |||||
Interested Trustees | ||||||||||
Robert C. Holderith3, 1960 | Trustee and President | Since 2008 | Emerging Global Advisors, LLC, Managing Member and Chief Executive Officer, since September 2008. | 18 | None |
1 | Each Trustee holds office for an indefinite term. |
2 | The “Fund Complex” consists of the EGA Frontier Diversified Core Fund and the Trust, which together consist of eighteen funds. As of September 30, 2015, twelve funds were operational. |
3 | Mr. Holderith is considered to be an “interested persons” of the Trust as defined in the 1940 Act, due to his relationship with EGA, the Funds’ Advisor. |
EGA Emerging Global Shares Trust 59
Board of Trustees and Officers (Unaudited) (concluded)
Name and Year of Birth | Position(s) Held with the Trust | Term of Office1 and Length of Time Served | Principal Occupation(s) During Past 5 Years | |||
Officers | ||||||
Marten S. Hoekstra Emerging Global Advisors, LLC 155 West 19th Street New York, NY 10011 1960 | Executive Vice President | Since 2011 | Chief Executive Officer, Emerging Global Advisors, LLC, since February 2011; Board of Directors, Securities Industry and Financial Markets Association, 2006 to 2011; UBS (and its predecessor, PaineWebber), 1983 to 2009 (including various executive positions starting in 2001). | |||
Susan M. Ciccarone Emerging Global Advisors, LLC 155 West 19th Street New York, NY 10011 1973 | Principal Financial Officer, Vice President and Treasurer | Since 2013 | Chief Operating Officer, since April 2014, Chief Financial Officer, since August 2012, Emerging Global Advisors, LLC; Managing Director, Goldman Sachs & Co. 2009 to 2012; UBS Investment Bank, 2002 to 2009. | |||
Maya Teufel Emerging Global Advisors, LLC 155 West 19th Street New York, NY 10011 1972 | Chief Compliance Officer | Since October 20152 | General Counsel and Chief Compliance Officer, Emerging Global Advisors, LLC, since November 2013; Vice President, Corporate Counsel, Jennison Associates LLC (Prudential Financial, Inc.), 2005 to November 2013. |
1 | Officers of the Trust are appointed by the Trustees and serve at the pleasure of the Board. |
2 | From September 2014 until October 9, 2015, Joseph Signora was the Chief Compliance Officer of the Trust. |
60 EGA Emerging Global Shares Trust
Investment Advisor
Emerging Global Advisors, LLC
155 West 19th Street, 3rd Floor
New York, NY 10011
Distributor
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
Administrator, Custodian and Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Independent Registered Public Accounting Firm
BBD, LLP
1835 Market Street, 26th Floor
Philadelphia, PA 19103
You may obtain a description of the EGShares Funds’ proxy voting, policies, procedures and information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ending June 30 (available by August 31) without charge, upon request, by calling 1-888-800-4347 or visiting the funds website www.emergingglobaladvisors.com, or by accessing the Securities Exchange Commission’s (the “SEC”) website at www.sec.gov. Such reports may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 202-942-8090.
Each of the Funds’ premium/discount information that is current as of the most recent quarter-end is available by visiting www.emergingglobaladvisors.com or by calling (888) 800-4EGS (4347).
The Trust files complete schedules of the portfolio holdings with the SEC for the first and third quarters on Form N-Q. The Form N-Q is available without charge, upon request, by calling 1-800-SEC-0330, or by accessing the SEC’s website, at www.sec.gov. It may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by an effective prospectus, which includes information regarding the Funds’ objectives and policies, experience of its management, marketability of shares and other information.
EGA Emerging Global Shares Trust 61
155 West 19th Street
New York, NY 10011
(888) 800-4EGS (4347)
www.emergingglobaladvisors.com
EGA Emerging Global Shares Trust
EGShares Beyond BRICs ETF
EGShares Blue Chip ETF
EGShares Brazil Infrastructure ETF
EGShares EM Core ex-China ETF
EGShares EM Quality Dividend ETF
EGShares Emerging Markets Consumer ETF
EGShares Emerging Markets Core ETF
EGShares Emerging Markets Domestic Demand ETF
EGShares India Consumer ETF
EGShares India Infrastructure ETF
EGShares India Small Cap ETF
EGShares are distributed by ALPS Distributors, Inc.
Item 2. Code of Ethics.
Not applicable for the semi-annual reporting period.
Item 3. Audit Committee Financial Expert.
Not applicable for the semi-annual reporting period.
Item 4. Principal Accountant Fees and Services.
Not applicable for the semi-annual reporting period.
Item 5. Audit Committee of Listed Registrants.
Not applicable for the semi-annual reporting period.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this Form. | |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | EGA Emerging Global Shares Trust |
By (Signature and Title)* | /s/ Robert C. Holderith |
Robert C. Holderith, President | |
(principal executive officer) | |
Date | December 7, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Robert C. Holderith |
Robert C. Holderith, President | |
(principal executive officer) | |
Date | December 7, 2015 |
By (Signature and Title)* | /s/ Susan M. Ciccarone |
Susan M. Ciccarone, Chief Financial Officer | |
(principal financial officer) | |
Date | December 7, 2015 |
* Print the name and title of each signing officer under his or her signature.