Xtrackers (Jersey) ETC PLC

Directors' report and audited financial statements

For the period from the date of incorporation

18 October 2022 to 31 December 2023

Registered number : 145739

Xtrackers (Jersey) ETC PLC

Contents Page

Directors and other information ................................................................................................................................................................................... 1

Directors' report .......................................................................................................................................................................................................... 2

Statement of Directors' responsibilities ........................................................................................................................................................................ 5

Independent auditor's report........................................................................................................................................................................................ 6

Statement of comprehensive income ........................................................................................................................................................................ 12

Statement of financial position ................................................................................................................................................................................. 13

Statement of changes in equity ................................................................................................................................................................................. 14

Statement of cash flows ............................................................................................................................................................................................ 15

Notes to the financial statements .............................................................................................................................................................................. 16

Xtrackers (Jersey) ETC PLC

Directors and other information

Directors

Paul Michael Monahan

Vinod Kumar Rajput

Registered Office

IFC 5

St Helier

Jersey

JE1 1ST

Channel Islands

Corporate Services Provider and

Carbon Accounts Administrator

Apex Financial Services (Corporate) Limited

IFC 5, St Helier

Jersey

JE1 1ST

Channel Islands

Company Secretary

Apex Financial Services (Secretaries) Limited

IFC 5, St Helier

Jersey

JE1 1ST

Channel Islands

Determination Agent and Issuing Agent

Apex Fund Services (Ireland) Limited

Floor, Block 5

Irish Life Centre

Abbey Street Lower

Dublin

D01 P767

Ireland

Programme Administrator

DWS Investments UK Limited

21 Moorfields

London

EC2Y 9DB

United Kingdom

Listing Agent

Arthur Cox Listing Services Limited

Ten Earlsfort Terrace

Dublin

D02 T380

Ireland

Trustee

Apex Corporate Trustees (UK) Limited

6th Floor, 125 London Wall

London

EC2Y 5AS

United Kingdom

Paying Agent

Citibank, N.A., London Branch

Citigroup Centre

Canada Square

London

E14 5LB

United Kingdom

Custodian

European Depositary Bank S.A.

3, Rue Gabriel Lippmann

L-5365 Munsbach

R.C.S. Luxembourg B 10700

Carbon Counterparty

Standard Chartered Bank

1 Basinghall Avenue

London

EC2V 5DD

United Kingdom

Authorised Participants

Jane Street Financial Limited

30th Floor, 20 Fenchurch Street

London EC3M 3BY

United Kingdom

Flow Traders B.V.

Jacob Bontiusplaats 9

1018 LL Amsterdam

Netherlands

Independent Auditors

KPMG Channel Islands Limited

Chartered Accountants and Recognised Auditors

37 Esplanade

St Helier

Jersey JE4 8QW

Channel Islands

Xtrackers (Jersey) ETC PLC

Directors' report

The Board of Directors (the "Directors" or the “Board”)) present the Directors' report and audited financial statements of Xtrackers (Jersey) ETC

PLC (the “Company”) for the period from the date of incorporation 18 October 2022 to 31 December 2023.

Principal activities and business review

The Company was incorporated on 18 October 2022 as a public limited liability company in Jersey under the Companies (Jersey) Law 1991 with

registration number 145739. It has been established as a special purpose vehicle for the purpose of issuing asset backed securities. The Company was

dormant until the launch of the programme in quarter four of 2023 described below.

The principal activity of the Company, under the Secured Xtrackers (Jersey) ETC PLC Carbon Linked Securities Programme (the “Programme”),

is to issue from time to time series (each a "Series") of carbon ETC securities (the “Carbon ETC Securities”), where recourse in respect of each

Series is limited to the proceeds of enforcement of the security over each respective Series' assets.

The Company has established this Programme for the issue of Carbon ETC Securities whose return is linked to the price of specified allowances,

credits, permits, rights or similar assets which represent a volume of carbon dioxide equivalent or other greenhouse gas, which is issued, allocated,

created or recognised in accordance with the rules and regulations governing participation in a trading scheme for the transferring of such allowances,

credits, permits, rights, or similar assets (the “Allowance(s)”). As at the date of this approval, the only type of Allowance(s) that Carbon ETC

Securities issued under this Programme may be linked to is EU allowances (the “EUA(s)”). The Company may hold either (or a combination of)

EUAs allocated in Phase III (1 January 2013 to 31 December 2020) of the EU ETS or EUAs allocated in Phase IV (1 January 2021 to 31 December

2030) of the EU ETS.

The main assets of the Company in respect of a Series of Carbon ETC Securities are the EUAs held by the Company via the Custodian, and cash

held by the Company. The EUAs backing each Series of Carbon ETC Securities may be sold by the Company to service any payment due and payable

on the Carbon ETC Securities and to fund the payment of product fee to the Programme Administrator, which in turn shall be used by the Programme

Administrator to pay certain costs of the Programme and the Company more generally.

The Carbon ETC Securities are designed to provide purchasers with exposure to Allowance(s) of a specified type, without having to take delivery of

them. Each Series of Carbon ETC Securities relates to a number of Allowance(s) and each tranche of Carbon ETC Securities (the “Tranche”) has

an Allowance(s) entitlement per Carbon ETC Security specified in the relevant final terms (the “Final Terms”). On any particular day, the Carbon

ETC Security can be viewed as giving an exposure to a number of Allowance(s) – the amount payable to securityholders on final redemption or early

redemption of the relevant Carbon ETC Securities is linked to the value of the Allowance(s). In addition, the value per Carbon ETC Security is

similarly linked to the value of such Allowance(s). In order to back its obligations under the Carbon ETC Securities, the Company will seek to hold

enough Allowance(s) to meet its obligations under the Carbon ETC Securities. The precise number it holds at any time may be more or less than the

aggregate number of the Allowance(s) entitlement per Carbon ETC Security, reflecting the periodic payment of Product Fees.

Because the Company obtains its exposure to the Allowance(s) by investing directly in the relevant Allowance(s), these types of Carbon ETC

Securities are known as a replication exchange traded commodities. Upon maturity, the Carbon ETC Securities will pay an amount linked to the

performance of such Allowance(s) (being proceeds from the disposal of the relevant Underlying Allowance(s), subject to deduction of Product Fees).

In connection with a subscription of Carbon ETC Securities, the relevant number of Allowance(s) shall be delivered by the seed authorised participant

or an authorised participant (as applicable) to the secured series carbon account (the “Series Carbon Account”), on the original series issue date (in

respect of an initial issuance of a Series of Carbon ETC Securities). The obligations of the Company under the Carbon ETC Securities of a Series

will be secured in favour of the Trustee by an assignment by way of security of all the Company’s rights, title, interest and benefit present and future

against the Custodian. Subscription and redemption terms of the Carbon ETC Securities are disclosed in the notes of the financial statements.

A Series of Carbon ETC Securities may be listed on the official list of one or more of the following stock exchanges and be admitted to trading on

the regulated market or other main market thereof: Euronext Dublin, the Frankfurt Stock Exchange and/or such other stock exchanges and regulated

markets or main markets as may be agreed between the Company and the Programme Administrator. As of the date of approval of these financial

statements, the Carbon ETC Securities are listed on the Frankfurt Stock Exchange. The Carbon ETC Securities were admitted on the exchange as of

23 November 2023.

Key performance indicators

The Company is a Special Purpose Vehicle (the ''SPV'') whose sole business is the issue of asset-backed securities. The Company has established

a programme for the issue of Carbon ETC Securities whose return is linked to the performance of Allowance(s). Each series of Carbon ETC Securities

will be separate (or ‘ring-fenced’) from each other series of Carbon ETC Securities. The best benchmark is the price of the relevant Allowances in

which the proceeds of the Carbon ETC Securities are invested in. For all Series, the performance closely follows the movement in the Allowances

linked to the Series. To date only one Series has been issued and the relevant Allowances are EUAs.

The Directors confirm that the key performance indicators as disclosed below are those that are used to assess the performance of the Company.

Xtrackers (Jersey) ETC PLC

Directors' report (continued)

Key performance indicators (continued)

During the period:

 the net fair value gain on EUAs at fair value amounted to EUR 46,585;

 the net fair value loss on financial liabilities designated at fair value through profit or loss amounted to EUR 42,795; and

 there were two subscriptions in the following new Series of Carbon ETC Securities:

Maturity

date

CCY

Nominal

Series

Carbon ETC Securities

Sep

2100

EUR

,941

The prices of Allowance(s) are as follows:

Series

Allowance

CCY

Price per

EUA

as at

31 Dec 2023

Price per

EUA

as at

17 Nov 2023 -

date of

Series issue

Series 1 EUA EUR 77.25 76.28

The price of the EUAs have increased during the period.

As at 31 December 2023:

 The Company’s total Carbon ETC Securities issued had a fair value of EUR 3,858,710;

 The Company has invested in EUAs with a fair value of EUR 3,862,500 (includes EAUs in relation to the Product Fee);

 The net assets were EUR 2; and

 The Company had the following Carbon ETC Securities in issue:

Series

Description

Maturity

date

Ccy

Nominal

(in

units)

Allowances

held

Number of

Allowances

Carbon ETC Securities 30-Sep-2100

EUR

2,941 EUA 50,000

Future developments

The Directors expect that the present level of activity will be sustained for the foreseeable future. The Board will continue to seek new opportunities

for the Company and will continue to ensure proper management of the current portfolio of Series of the Company.

Going concern

The Company’s financial statements for the period ended 31 December 2023 have been prepared on a going concern basis. The Series of Carbon

ETC Securities is referenced to a specific asset and any loss derived from the asset will be ultimately borne by the relevant Carbon ETC

Securityholders. The Directors anticipate that assets are readily realisable and hence, will continue to generate enough cash flows on an ongoing basis

to meet the financial liabilities as they fall due. The Carbon ETC Securities in issue as at 31 December 2023 have a final maturity of 30 September

2100. The Directors do not foresee any material net redemptions in the next twelve months that would trigger going concern issues.

A high-level analysis was made on the liquidity and performance of the Company following the financial period end 31 December 2023. The Directors

note that there has been a positive change in the value of the EUAs since the launch of the Programme and the level of activity has remained stable

post the financial period end. The Directors have also noted that the Programme Administrator has taken measures to ensure business continuity.

Russia-Ukraine conflict

Russia began an invasion of Ukraine on 24 February 2022. None of the Authorised Participants in the primary market are Russian entities and hence

would not be subject to the Russian sanctions. The Directors also assessed that none of the operations of the counterparties are based in Ukraine. The

Directors will continue to monitor the situation and appropriate steps will be taken for the smooth running of the Companies' business. There is no

impact on the ability of investors to redeem due to the sanctions. No other geopolitical matters have been noted to have an impact on the going concern.

Business risks and principal uncertainties

The Company is subject to various risks. The key risks facing the Company relate to their use of financial instruments, their exposure to EUAs and

other risks (i.e. market risk, credit risk, liquidity risk, operational risk and climate risk) arising from the EUAs which are set out in note 15 to the

financial statements.

Xtrackers (Jersey) ETC PLC

Directors' report(continued)

Business risks and principal uncertainties (continued)

Climate risk

The Directors acknowledge that climate change is an emerging risk impacting the global economy and will continue to be of interest to all stakeholders

with a focus on how climate change is expected to impact the societal response and the regulatory environment in the future. However, having

considered such factors relating to climate change. While the demand for the Allowances will be correlated to climate change, the Directors have

determined that there are no immediate impacts of climate change on the business operations of the Company. Further details are provided in note

15 to the financial statements.

Results and dividends for the period

The results for the period are set out on page 12. The Directors do not recommend the payment of a dividend for the period under review.

Changes in Directors, Secretary and Registered Office

There has been no change in Directors, Company Secretary and Registered Office during the period.

Directors, Secretary and their interests

None of the Directors or the Company Secretary who held office on 31 December 2023 held any shares or Carbon ETC Securities in the Company

at that date, or during the period. There were no contracts of any significance in relation to the business of the Company in which the Directors had

any interest. As disclosed in note 19, Related Party Transactions, Paul Michael Monahan and Vinod Kumar Rajput, directors of the Company are

employees of the Corporate Services Provider. Apex Financial Services (Nominees) Limited and Apex Financial Services (Nominees 2) Limited are

affiliates of the Corporate Services Provider and Carbon Accounts Administrator. See note 19 for full details of the relationships entered into between

the Company and its related parties.

Shares and shareholders

The issued share capital of the Company is GBP 2 divided into 2 ordinary shares of GBP 1 each (the "Shares"). The Company is owned by two

nominee companies, which hold the issued share capital for the benefit of a purpose trust established pursuant to a declaration of trust on 18 January

2023. The trustee of the purpose trust is Apex Financial Services (Trustees) Limited, and the enforcer is Apex (EP) Limited (“AEPL”). As the issued

ordinary shares are beneficially held by the purpose trust, AEPL is considered to be the ‘controller’ of the Company as the purpose trust gives them

the ability to appoint and/or remove Apex Financial Services (Trustees) Limited. AEPL is a subsidiary of Apex Financial Services Jersey Limited,

which is regulated by the Jersey Financial Services Commission.

Subsequent events

Subsequent events have been disclosed in note 22 to the financial statements.

Independent auditors

In accordance with the Companies (Jersey) Law 1991, KPMG Channel Islands Limited, Chartered Accountants and Recognised Auditors have been

appointed as the Company’s independent auditors and, have expressed their willingness to continue in office.

On behalf of the Board

Director

Date: 24 April 2024

Xtrackers (Jersey) ETC PLC

Statement of Directors' responsibilities

The Directors are responsible for preparing the Directors’ report and financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial period. Under that law they are required to prepare the

financial statements in accordance with International Financial Reporting Standards as adopted by the EU and applicable law.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the

state of affairs of the Company and of its profit or loss for that period. In preparing these financial statements, the Directors are required to:

 select suitable accounting policies and then apply them consistently;

 make judgements and estimates that are reasonable, relevant and reliable;

 state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the

financial statements;

 assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

 use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic

alternative but to do so.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose

with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply

with the Companies (Jersey) Law, 1991. They are responsible for such internal control as they determine is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as

are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The Directors are also required by the Transparency (Directive 2004/109/EC) (Amendment) (No. 2) Regulations 2015 (the ''Regulations'') to

include a Directors’ report containing a fair review of the business and a description of the principal risks and uncertainties facing the Company.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Programme Administrator’s

website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect of the Directors’ Report

We confirm that to the best of our knowledge:

 the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets,

liabilities, financial position and profit or loss of the Company; and

 the Directors’ report includes a fair review of the development and performance of the business and the position of the Company, together

with a description of the principal risks and uncertainties that they face. The principal risks facing the Company are outlined in note 15 of

the financial statements.

We consider the Directors’ report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information

necessary for shareholders to assess the Company’s position and performance, business model and strategy.

On behalf of the Board

Director

Date: 24 April 2024

Independent Auditor's Report to the Members of Xtrackers

(Jersey) ETC PLC

Our opinion is unmodified

We have audited the financial statements of Xtrackers (Jersey) ETC PLC (the “Company”), which comprise the statement

of financial position as at 31 December 2023, the statements of comprehensive income, changes in equity and cash flows

for the period from 18 October 2022 (date of incorporation) to 31 December 2023, and notes, comprising material

accounting policies and other explanatory information.

In our opinion, the accompanying financial statements:

• give a true and fair view of the financial position of the Company as at 31 December 2023, and of the Company’s

financial performance and cash flows for the period from 18 October 2022 (date of incorporation) to 31 December

2023.

• are prepared in accordance with International Financial Reporting Standards as adopted by the EU; and

• have been properly prepared in accordance with the Companies (Jersey) Law, 1991.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.

Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of

the Company in accordance with, UK ethical requirements including the FRC Ethical Standard as required by the Crown

Dependencies' Audit Rules and Guidance. We believe that the audit evidence we have obtained is a sufficient and

appropriate basis for our opinion.

Key audit matters: our assessment of the risks of material misstatement

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of

the financial statements and include the most significant assessed risks of material misstatement (whether or not due to

fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of

resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of

our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate

opinion on these matters. In arriving at our audit opinion above, the key audit matters were as follows:

The risk

Our response

Valuation of EU

Allowances at fair value

(EUAs)

€3,858,710

Refer to note 3(e)

accounting policy and note

9 disclosures

Basis:

EUAs at fair value represent 99.9% of the

Company’s total assets.

The EUAs act as collateral for the financial

liabilities designated at fair value through

profit or loss (“the Carbon Securities”)

issued by the Company. The EUAs are

accounted for at fair value.

The Company determines fair value by

revaluing the quantity of EUAs held at the

reporting date to the last market prices

published by the sources described in the

financial statements.

Risk:

The reported fair value of EUAs held may

be materially misstated and is a significant

Our audit procedures included:

• Assessed the design and

implementation of controls over

valuation of EUAs.

• Engaged our valuation specialists

(

iRadar) to independently price the

EUAs to a third party pricing

source, recalculate the value

taking into consideration quantity

held and, compared the

recalculated values to those

determined by the Company.

• Assessed the fair value

sclosures in the financial

statements for compliance with

IFRS requirements.

Independent Auditor's Report to the Members of Xtrackers

(Jersey) ETC PLC (continued)

The risk

Our response

area of our audit, given that it represents

the majority of the Company's total assets.

The risk

Our response

Existence of EUAs at fair

value

€3,858,710

Refer to note 3(e)

accounting policy and note

9 disclosures

Basis:

EUAs at fair value represent 99.9% of the

Company’s total assets.

The EUAs act as collateral for the Carbon

Securities issued by the Company. The

EUAs are accounted for at fair value.

The EUAs are held on behalf of the

Company by the European Depositary

Bank S. A. as custodian (“the Custodian”).

Risk:

The reported holding and therefore the

fair value of the EUAs held may be

materially misstated and is a significant

area of our audit, given that it represents

the majority of the Company's total

assets.

Our audit procedures included:

• Obtained a confirmation of the EUAs

held as at the reporting date from

the Custodian.

• Observed an authorised individual

from Apex Financial Services

(Corporate) Limited, (the Corporate

Services Provider and Carbon

Accounts Administrator) log in to the

European Commission registry (the

“registry”) account of the Custodian

to verify that the EUAs are held for

the benefit of the Company as at

the reporting date.

• Agreed the amounts per the

counting records to the

independent custody and registry

records above.

The risk

Our response

Valuation of financial

liabilities designated at fair

value through profit or loss

€3,858,710

Refer to note 3(f) accounting

policy and note 12

disclosures

Basis:

The issuance of Carbon Securities is central

to the Company’s principal activity. Carbon

Securities are designed to provide investors

with exposure to EUAs without the need to

hold these directly.

Carbon Securities are accounted for at fair

value.

The Company determines fair value in

accordance with the formula set out in the

prospectus to reflect the contractual price at

which the Carbon Securities will be issued or

redeemed by the Company at the reporting

date. This formula takes into account the

quantity of Carbon Securities in issue at the

Our audit procedures included:

• Assessed the design and

implementation of the controls

over the valuation of Carbon

ETC Securities.

• Assessed the appropriateness of

the methodology used to value

the Carbon ETC Securities, and

considered whether it represents

fair value in accordance with

IFRS.

• Recalculated the fair value of

Carbon ETC Securities using

quantity held and published

market data on the prices of the

EUAs and, compared the

recalculated values to those

determined by the Company.

Independent Auditor's Report to the Members of Xtrackers

(Jersey) ETC PLC (continued)

The risk

Our response

reporting date, and the price of the relevant

EUAs, adjusted for product fees.

Risk:

A discrepancy in the inputs or incorrect

application of the formula used to determine

the fair value of the Carbon Securities may

cause the reported fair value of financial

liabilities designated at fair value through

profit or loss to be materially misstated.

•

Assessed the fair value

sclosures in the financial

statements, for compliance with

IFRS requirements.

Our application of materiality and an overview of the scope of our audit

Materiality for the financial statements as a whole was set at €38,600, determined with reference to a planning benchmark

of total assets of €3,862,931, of which it represents approximately 1.0%.

In line with our audit methodology, our procedures on individual account balances and disclosures were performed to a

lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually immaterial

misstatements in individual account balances add up to a material amount across the financial statements as a whole.

Performance materiality for the Company was set at 75% of materiality for the financial statements as a whole, which

equates to €28,900. We applied this percentage in our determination of performance materiality because we did not

identify any factors indicating an elevated level of risk.

We reported to the Board any corrected or uncorrected identified misstatements exceeding €1,930, in addition to other

identified misstatements that warranted reporting on qualitative grounds.

Our audit of the Company was undertaken to the materiality level specified above, which has informed our identification

of significant risks of material misstatement and the associated audit procedures performed in those areas as detailed

above.

Going concern

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the

Company or to cease its operations, and as they have concluded that the Company's financial position means that this is

realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its

ability to continue as a going concern for at least a year from the date of approval of the financial statements (the “going

concern period").

In our evaluation of the directors' conclusions, we considered the inherent risks to the Company's business model and

analysed how those risks might affect the Company's financial resources or ability to continue operations over the going

concern period. The risks that we considered most likely to affect the Company's financial resources or ability to continue

operations over this period were:

• The programme administrator’s requirement to continue using the Company; and

• The risk of securityholders redeeming a significant amount of the securities;

We obtain confirmation from management and the programme administrator in relation to the programme administrator’s

requirement to continue using the Company and, the risk of securityholders redeeming a significant amount of the

securities.

We considered whether the going concern disclosure in note 2a to the financial statements gives a full and accurate

description of the directors' assessment of going concern.

Independent Auditor's Report to the Members of Xtrackers

(Jersey) ETC PLC (continued)

Our conclusions based on this work:

• we consider that the directors' use of the going concern basis of accounting in the preparation of the financial

statements is appropriate;

• we have not identified, and concur with the directors' assessment that there is not, a material uncertainty related to

events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue

as a going concern for the going concern period; and

• we found the going concern disclosure in the notes to the financial statements to be acceptable.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are

inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee

that the Company will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate

an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures

included:

• enquiring of management as to the Company’s policies and procedures to prevent and detect fraud as well as

enq

uiring whether management have knowledge of any actual, suspected or alleged fraud;

• reading minutes of meetings of those charged with governance; and

• using analytical procedures to identify any unusual or unexpected relationships.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in

particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do

not believe there is a fraud risk related to revenue recognition because the Company’s revenue streams are simple in

nature with respect to accounting policy choice, and are easily verifiable to external data sources or agreements with little

or no requirement for estimation from management. We did not identify any additional fraud risks.

We performed procedures including

• Identifying journal entries and other adjustments to test based on risk criteria and comparing any identified entries to

supporting documentation; and

• incorporating an element of unpredictability in our audit procedures.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial

statements from our sector experience and through discussion with management (as required by auditing standards), and

from inspection of the Company’s regulatory and legal correspondence, if any, and discussed with management the

policies and procedures regarding compliance with laws and regulations. As the Company is regulated, our assessment

of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with

regulatory requirements.

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting

legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of

our procedures on the related financial statement items.

The Company is subject to other laws and regulations where the consequences of non-compliance could have a material

effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or

impacts on the Company’s ability to operate. We identified financial services regulation as being the area most likely to

have such an effect, recognising the regulated nature of the Company’s activities and its legal form. Auditing standards

limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management

Independent Auditor's Report to the Members of Xtrackers

(Jersey) ETC PLC (continued)

and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not

disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material

misstatements in the financial statements, even though we have properly planned and performed our audit in accordance

with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events

and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing

standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect

material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect

non-compliance with all laws and regulations.

Other information

The directors are responsible for the other information. The other information comprises the information included in the

Directors' report but does not include the financial statements and our auditor's report thereon. Our opinion on the financial

statements does not cover the other information and we do not express an audit opinion or any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained

in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that

there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in

this regard.

We have nothing to report on other matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us to

report to you if, in our opinion:

• adequate accounting records have not been kept by the Company; or

• the Company's financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Respective responsibilities

Directors' responsibilities

As explained more fully in their statement set out on page 5, the directors are responsible for: the preparation of

the financial statements including being satisfied that they give a true and fair view; such internal control as they determine

is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to

fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related

to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Company or

to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable

assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of the financial statements.

Independent Auditor's Report to the Members of Xtrackers

(Jersey) ETC PLC (continued)

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities

The purpose of this report and restrictions on its use by persons other than the Company's

members, as a body

This report is made solely to the Company’s members, as a body, in accordance with Article 113A of the Companies

(Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Company’s members those matters

we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law,

we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body,

for our audit work, for this report, or for the opinions we have formed.

Report on Regulatory Requirements

European Single Electronic Format (ESEF)

The Company has prepared its annual report in ESEF. The requirements for this format are set out in the Commission

Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single

electronic reporting format (these requirements are hereinafter referred to as: the RTS on ESEF).

In our opinion, the annual report prepared in the XHTML format, including the financial statements as included in the

reporting package by the Company, has been prepared in all material respects in accordance with the RTS on ESEF.

The directors are responsible for preparing the annual report including the financial statements in accordance with the

RTS on ESEF, whereby the directors combine the various components into a single reporting package. Our responsibility

is to obtain reasonable assurance for our opinion whether the annual report in this reporting package, is in accordance

with the RTS on ESEF.

Our procedures included amongst others:

• obtaining an understanding of the Company's financial reporting process, including the preparation of the annual

report in XHTML format;

• examining whether the annual report in XHTML-format is in accordance with the RTS on ESEF.

Shaun Robert Farley

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants and Recognized Auditors

Jersey

4 April 2024

Xtracke

rs (Jersey) ETC PLC

Statement of comprehensive income

For the period from the date of incorporation 18 October 2022 to 31 December 2023

eriod from the date

of incorporation

18 October 2022 to 31 December 2023

Notes

EUR

Product fee expenses

(

3,329

)

(

3,329

)

Net fair value loss on Product Fee

payable

(

461

)

Net fair value loss on financial liabilities designated at fair value through profit or loss

(42,795)

Operating loss before taxation

(46,585)

Taxation

Operating loss for the period

(46,585)

Other comprehensive income

Fair value gain on EUAs at fair value in relation to the Product Fee payable 461

Fair value gain on EUAs at fair value

46,124

Other comprehensive income for the period 46,585

Profit or loss and total comprehensive result for the period

The notes on pages 16 to 29 form an integral part of the financial statements.

Xtrackers (Jersey) ETC PLC

Statement of financial position

As at 31 December 2023

31-Dec-23

Assets

Notes

EUR

Cash and cash equivalents

429

Other receivables

EUAs at fair value 9

3,858,710

EUAs at fair value in relation to the Product Fee payable 9, 10

3,790

Total

assets

3,862,931

Liabilities and equity

Liabilities

Other payables 11 429

Product Fee payable 3,790

Financial liabilities designated at fair value through profit or loss 12 3,858,710

Total

liabilities

3,862,929

Equity

Share capital 13

Retained loss (46,585)

Revaluation reserve

46,585

Total

equity

Total liabilities and equity

3,862,931

The financial statements on pages 12 to 29 were approved and authorised for issue by the Board of Directors on 24 April 2024 and was signed on its

behalf by:

Director Director

The notes on pages 16 to 29 form an integral part of the financial statements.

Xtrackers (Jersey) ETC PLC

Statement of changes in equity

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Share Capital

EUR

Retained loss

EUR

Revaluation

reserve

EUR

Total equity

EUR

Balance as at 18 October 2022

Total comprehensive result for the period

Operating loss for the period

(46,585)

Fair value gain on EUAs at fair value in relation to the Product Fee

payable

461

Fair value gain on EUAs at fair value

46,124

Total comprehensive result for the period

(46,585)

46,585

Share capital issued during the period

Balance as at 31 December 2023

(46,585)

46,585

The notes on pages 16 to 29 form an integral part of the financial statements.

Xtrackers (Jersey) ETC PLC

Statement of cash flows

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Notes

Period

ended

Dec

EUR

Cash

flows

from

operating

activities

Operating loss for the period

(46,585)

Adjustments for:

Product fee expenses

3,329

Net fair value loss on Product Fees payable

461

Net fair value loss on financial liabilities designated at fair value through profit or loss

42,795

Non-cash transactions during the period

Increase

other

payables

429

Net cash generated from operating

activities

429

Movement in cash and cash equivalents

Cash and cash equivalents at start of the period

Cash and cash

equivalents at end

of the

period

429

Non-cash transactions during the period include:

Issuance of Carbon of ETC Securities

3,815,915

Additions of EU

(3,815,915)

Increase in EUAs at fair value in relation to the

Product Fee payable

(3,329)

Increase in Product Fee payable

3,329

The notes on pages 16 to 29 form an integral part of the financial statements.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements

For the period from the date of incorporation 18 October 2022 to 31 December 2023

General information

The Xtrackers (Jersey) ETC PLC (the “Company”) was incorporated on 18 October 2022 as a public limited company in Jersey under the

Companies (Jersey) Law 1991, as amended, with company number 145739. It has been established as a special purpose vehicle for the purpose

of issuing asset backed securities. The Company was dormant until the launch in quarter four of 2023 of the programme described below.

The principal activity of the Company, under the Secured Xtrackers (Jersey) ETC PLC Carbon Linked Securities Programme (the

“Programme”), is to issue from time to time series (each a "Series") of carbon ETC securities (the “Carbon ETC Securities”), where recourse

in respect of each Series is limited to the proceeds of enforcement of the security over each respective Series' assets.

The Company has established this Programme for the issue of Carbon ETC Securities whose return is linked to the price of specified allowances,

credits, permits, rights or similar assets which represent a volume of carbon dioxide equivalent or other greenhouse gas, which is issued,

allocated, created or recognised in accordance with the rules and regulations governing participation in a trading scheme for the transferring of

such allowances (the “Allowance(s)”), credits, permits, rights, or similar assets. As at the date of this approval, the only type of Allowance(s)

that Carbon ETC Securities issued under this Programme may be linked to is EU allowances (the “EUA(s)”). The Company may hold either (or

a combination of) EUAs allocated in Phase III (1 January 2013 to 31 December 2020) of the EU Emissions Trading System (“EU ETS”) or

EUAs allocated in Phase IV (1 January 2021 to 31 December 2030) of the EU ETS.

The main assets of the Company in respect of a Series of Carbon ETC Securities are the EUAs held by the Company via the Custodian, and cash

held by the Company. The EUAs backing each Series of Carbon ETC Securities may be sold by the Company to service any payment due and

payable on the Carbon ETC Securities and to fund the payment of product fee to the Programme Administrator, which in turn shall be used by

the Programme Administrator to pay certain costs of the Programme.

In connection with a subscription of Carbon ETC Securities, the relevant number of Allowance(s) shall be delivered by the seed authorised

participant or an authorised participant (as applicable) to the secured series carbon account (the “Series Carbon Account”), on the original

series issue date (in respect of an initial issuance of a Series of Carbon ETC Securities). The obligations of the Company under the Carbon ETC

Securities of a Series will be secured in favour of the Trustee by an assignment by way of security of all the Company’s rights, title, interest and

benefit present and future against the Custodian. Subscription and redemption terms of the Carbon ETC Securities are disclosed in note 15.

A Series of Carbon ETC Securities may be listed on the official list of one or more of the following stock exchanges and be admitted to trading

on the regulated market or other main market thereof: Euronext Dublin, the Frankfurt Stock Exchange and/or such other stock exchanges and

regulated markets or main markets as may be agreed between the Company and the Programme Administrator. As of the date of this approval

the Carbon ETC Securities are listed on the Frankfurt Stock Exchange.

Basis of preparation

(a)

Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the

European Union ("IFRS") and in accordance with the Companies (Jersey) Law 1991.

The accounting policies set out below have been applied in preparing the financial statements for the period from the date of

incorporation 18 October 2022 to 31 December 2023.

Going concern

The Company’s financial statements for the period ended 31 December 2023 have been prepared on a going concern basis. The Series

of Carbon ETC Securities is referenced to a specific Allowance and any loss derived from the asset will be ultimately borne by the

relevant Carbon ETC Securityholders. The Directors anticipate that assets are readily realisable and hence, will continue to generate

enough cash flows on an ongoing basis to meet the financial liabilities as they fall due. The Carbon ETC Securities in issue as at 31

December 2023 have a final maturity of 30 September 2100. The Directors do not foresee any material net redemptions in the next

twelve months that would trigger going concern issues.

A high-level analysis was made on the liquidity and performance of the Company following the financial period end 31 December

2023. The Directors note that there has been a positive change in the value of the EUAs due to an increase in the prices of the

EUAs during the period and the and the level of activity has remained stable post the financial period end, while this does not yet

represent a concern for the financial sustainability of the Company to meet its obligations the Directors closely monitor the evolution.

The Directors have also noted that the Programme Administrator has taken measures to ensure business continuity.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Basis of preparation

(a)

Statement of compliance (continued)

Going concern (continued)

Russia - Ukraine conflict

Russia began an invasion of Ukraine on 24 February 2022. There is no impact on the ability of investors to redeem due to the

sanctions.

None of the Authorised Participants in the primary market that the Company is facing are Russian entities and hence would not be

subject to the Russian sanctions. The Directors also assessed that none of the operations of the counterparties are based in Ukraine.

The Directors will continue to monitor the situation and appropriate steps will be taken for the smooth running of the Company’s

business.

(b)

Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following material items in the statement of

financial position that are measured at fair value:

 EUAs at fair value;

 EUAs at fair value in relation to the Product Fee payable;

 Product Fee payable; and

 Financial liabilities designated at fair value through profit or loss.

The method used to measure fair values are discussed further in note 3(e, f) and 16.

(c)

Functional and presentation currency

Functional currency is the currency of the primary economic environment in which the entity operates. The Directors believe that

the functional and the presentation currency should be EUR as EUR is the currency that most faithfully represents the economic

effects of the transactions, events and conditions of the Company's underlying operations.

(d)

Use of estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be

reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets

and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in

the period in which the estimates are revised and in any future periods affected. Details of material judgements and estimates have

been further described in accounting policy note 3(e) "EUAs ", note 3(f) “Financial instruments” and note 16 "Fair Values" to the

financial statements.

Critical judgements in applying the Company’s accounting policies

The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the

Directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the

amounts recognised in financial statements.

Judgement in classifying EUAs at fair value and EUAs at fair value in relation to the Product Fee payable (collectively, “EUAs”)

The Directors have determined that the EUAs fall within the scope of IAS 38 Intangible Assets following a review of the facts and

circumstances. In meeting the definition, the Directors concluded the following: 1) that EUAs are clearly identifiable and can be

separated from the Company; 2) non-monetary – EUAs are not cash or a claim to receive cash; 3) without physical substance:

EUAs represent a right to emit a certain amount of pollutant, not a physical object; 4) controlled by the Company: the Company

has the legal right to buy or sell the EUAs.

In making this judgement, the Directors have considered that the EUAs do not meet the definition of a financial instrument as they

do not constitute a contract that gives rise to another financial asset. Furthermore, the EUAs which are used to collateralise the

Company's liability do not meet the definition of inventory as the assets are not held for sale in the ordinary course of business.

Determination of measurement basis for EUAs

The Directors believe that the most appropriate basis for accounting for EUAs is the revaluation model under IAS 38 Intangible

Assets and, accordingly, these have been measured at fair value. EUAs are traded on active markets and consequently, using fair

value provides the more relevant information about the market assessment of future cash flows and risk. Please refer to note 3(e)

“EUAs” for further details.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Basis of preparation (continued)

(d)

Use of estimates and judgements (continued)

Determination of fair value of financial liabilities issued at fair value through profit or loss

The financial liabilities designated at fair value through profit or loss are measured using the prices calculated by Apex Fund

Services (Ireland) Limited (the "Determination Agent"), and not based on the quoted secondary price available on the recognised

stock exchanges for the financial liabilities at fair value through profit and loss. In the opinion of the Directors, this is the most

appropriate method of estimating fair value, as the Company is contractually obliged to settle the Carbon ETC Securities at their

calculated price and has no access to trade on the exchanges. As the most significant level of trading for the securities is through

the Determining Agent, the Directors have assessed this as the principal market. Please refer to note 3(f) “Financial instruments”

for further details.

Product fees

The product fees (the “Product Fee(s)”) are borne by investors through a daily reduction in the EUAs entitlement of each Carbon

ETC Security. The Company will sell EUA entitlement held in relation to the Product Fee on an ongoing basis and pay the net sale

proceeds from the sale to the Programme Administrator. Product Fees payable are carried fair value. Please refer to note 3(f)

“Financial instruments” for further details.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have

a significant risk of causing a material adjustment to the carrying amounts of EUAs and liabilities within the next financial year,

are discussed below.

EUAs at fair value

The Directors have determined that the main estimates are in relation to the determination of the fair value of EUAs at fair

value using spot prices quoted by the European Energy Exchange AG (“EEX”) EUA Spot. Further details have been described in

accounting policy note 3(e) "EUAs” to the financial statements.

Financial liabilities issued at fair value through profit or loss

The Directors have determined that prices calculated by the Determination Agent are used as the measurement basis at 31

December 2023 as these prices most accurately reflect the obligations of the Company under the terms of the Series issue deeds.

Please refer to note 2(d) and 3(f) “Financial instruments” for further details.

(e)

New standards and amendments to existing standards

The Directors have considered the impact of all new standards, amendments and interpretations and do not consider there to be a

significant impact from these newly effective standards, amendments and interpretations.

The Directors have considered the impact of all new standards, amendments and interpretations that are issued, but not yet effective,

and do not consider there to be a significant impact from these newly issued standards, amendments and interpretations that are

not yet effective.

Material accounting policies

(a)

Foreign currency transactions

Transactions in foreign currencies are translated into the functional currency at the foreign exchange rate on the date of the

transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into the

functional currency at the exchange rate at that date.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into the

functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency

that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency

differences arising on retranslation are recognised in the statement of comprehensive income.

Gains and losses arising on retranslation of financial liabilities designated at fair value through profit or loss and EUAs at fair value

are included in the statement of comprehensive income together with fair value gains and losses as noted below.

(b)

Net fair value gain/(loss) on EUAs

Net fair value gain/(loss) on EUAs relates to the movement in the prices of EUAs and includes all realised and unrealised fair value

changes. Any gains and losses arising from changes in fair value of EUAs are recorded in net fair value gain on EUAs at fair

value in the statement of comprehensive income. Under normal circumstances, there is no realised gain on EUAs as realisation

occurs at the value computed and there is no difference between realisation proceeds and carrying amount of the EUAs. Details of

recognition and measurement of EUAs are disclosed in the accounting policy for EUAs (note 3(e)).

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Material accounting policies (continued)

(c)

Net fair value (loss)/gain on financial liabilities designated at fair value through profit or loss

Net fair value (loss)/gain on financial liabilities designated at fair value through profit or loss relates to Carbon ETC Securities

issued by the Company and includes all realised and unrealised fair value changes. Any gains and losses arising from changes in

the fair value of the financial liabilities designated at fair value through profit or loss are recorded in net fair value loss on financial

liabilities designated at fair value through profit or loss in the statement of comprehensive income. Details of recognition and

measurement of financial liabilities are disclosed in the accounting policy of financial instruments (note 3(f)).

(d)

Other expenses

All expenses, other than Product Fees and the bank charges in relation to the cash account, are paid by the Programme Administrator

and as such, are not reflected in these financial statements. Product Fees are recorded as a reduction in the Allowance(s) entitlement

of the Carbon ETC Securities and are recognised as an expenses in the statement of comprehensive income on an accruals basis.

(e)

EUAs

The Company holds EUAs at least equal to the amount due to holders of Carbon ETC Securities solely for the purposes of

meeting its obligations, which also includes the holding of EUAs in relation to the settlement of the Product Fee (see note 2(d) for

further information), under the Carbon ETC Securities.

Any costs to sell EUAs that arise in the course of settling the Company’s obligations under the Carbon ETC Securities are borne

by the holders of the Carbon ETC Securities (“Carbon ETC Securityholders”). An increase in fair value is recognised in other

comprehensive income and accumulated in the revaluation reserve within equity except to the extent that it reverses a fair value

decrease for impairment previously recognised in profit and loss.

A decrease in fair value is recorded in profit or loss except to the extent to which it reverses gains previously recognised in other

comprehensive income for EUAs.

Any revaluation surplus included in equity is transferred directly to retained earnings when the corresponding EUAs are realised.

Initial recognition

The EUAs are recognised initially at cost when the EUAs are received into the Company’s registry account.

Derecognition

The Company derecognises EUAs when the contractual rights to the asset have expired, or the Company has transferred the

rights to the asset in a transaction in which substantially all the risks and rewards of ownership are transferred. The EUAs are sold

to the Carbon Counterparty and the net cash proceeds from the sale are used to fund the settlement of redemptions of the Carbon ETC

Securities (see note 15(c)). The EUAs may also be sold as described above, from time to time, in order to fund the settlement of the

Product Fee.

Fair value measurement principles

The EUAs are valued at fair value using the last available spot price, nearest or at period-end, quoted by the EEX. The 19.30

Central European Time on 29 December 2023 was used to value the EUA as this was the last fix price available from the EEX for

the period.

(f)

Financial instruments

Initial recognition

Financial assets and financial liabilities are recognised initially at the trade date at which the Company becomes a party to the

contractual provisions of the instrument and are measured initially at fair value plus, for an item not at fair value through profit or

loss, transaction costs that are directly attributable to their acquisition or issue.

Classification

The Company has designated the financial liabilities issued at fair value through profit or loss. For other financial instruments, the

classification is based on both the Company's business model for managing those Instruments and the contractual cash flow

characteristics of the instruments.

Accordingly, the financial assets and financial liabilities are classified into the following categories:

Financial liabilities at fair value through profit or loss:



Financial

liabilities

designated at fair value through profit or loss



Product Fees payable

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Material accounting policies (continued)

(f)

Financial instruments (continued)

Classification (continued)

Financial assets at amortised cost:

Cash and cash equivalents and other receivables

Financial liabilities at amortised cost:

 Other payables

Subsequent measurement

After initial measurement, the instruments at amortised cost are recorded at the amount at initial recognition, minus principal

repayments, plus or minus the cumulative amortisation using the effective interest rate method or any difference between the initial

amount recognised and the maturity amount, minus any reduction for impairment. The effective interest method is a method of

calculating the amortised cost of an instrument and of allocating interest over the relevant period. The effective interest rate is the

rate that exactly discounts estimated future cash flows (including all fees paid or received that form an integral part of the effective

interest rate, transaction costs and other premiums or discounts) through the expected life of the instrument, or, where appropriate,

a shorter period, to the net carrying amount on initial recognition. Impairment losses, including reversals of impairment losses and

impairment gains, are presented in the Statement of comprehensive income.

Financial liabilities designated at fair value through profit and loss are measured using the prices calculated by Apex Fund

Services (Ireland) Limited (the "Determination Agent"). Quoted prices are also available on recognised stock exchanges for the

financial liabilities designated at fair value through profit or loss. However, the Directors have determined that prices calculated

by the Determination Agent should be used as a measurement basis at 31 December 2023 as these prices most accurately reflect

the obligations of the Company under the terms of the Series Issue Deeds. The prices are calculated using the spot price of the

relevant underlying EUA adjusted for Product Fees. The Product Fees range are charged at 0.79% per annum and are accrued on

a daily basis by reducing the EUA entitlement of each Carbon ETC Security. The Product Fees payable and their related EUA

entitlement are measured at fair value (see note 2 (e)). Details of Product Fees for the Series is described in notes 5 and 12.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the

rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of

ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the

Company is recognised as a separate asset or liability. The Company derecognises a financial liability when its contractual

obligations are discharged, cancelled or expire.

(g)

Cash and cash equivalents

Cash and cash equivalents include deposits held at call with the cash custodian which are subject to insignificant risk of changes

in their fair value, and are used by the Company in the management of its short term commitments.

(h)

Share capital

Share capital is issued in Pound Sterling ("GBP"). Incremental costs directly attributable to the issue of new shares are shown in

equity as a deduction from the proceeds.

(i)

Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur

expenses (including revenues and expenses relating to transactions with other components of the same entity). The Chief Operating

Decision Maker (CODM) of the operating segment is the Board. The CODM is responsible for all the Company’s activities. As

there is one Series in issue, the Board consider that the entity has only one geographical and business segment and therefore is not

required to produce additional segmental reporting disclosures.

Net fair value gain/(loss) on EUAs at fair value

Period ended

31-Dec-23

EUR

Net fair value gain on

EUAs (including those related to the Product Fee payable) at fair value

46,585

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Net fair value (loss)/gain on financial liabilities designated at fair value through profit or loss

Period ended

31-Dec-23

EUR

Net fair value loss on Carbon ETC Securities

(42,795)

Product Fees are recorded as a reduction in EUA entitlement in calculation of the fair value of the Carbon ETC Securities.

Taxation

The Company is not a regulated financial service company from a Jersey Income Tax perspective. Therefore, the Company is liable to Jersey

Income Tax at 0%.

Cash and cash equivalents

Dec

EUR

Cash at bank 429

Other receivables

Dec

EUR

Unpaid share capital 2

EUAs at fair value

31-Dec-23

EUR

EUAs at fair value

3,858,710

Movement in EUAs at fair value 31-Dec-23

EUR

At beginning of the period

Non-cash transactions

Additions during the period

3,815,915

Net changes in fair value during the period

46,124

Transfer to EUAs at fair value in relation to the Product Fee

(3,329)

At end of the period

3,858,710

The non-cash transactions relate to receipt of EUAs as subscription proceeds for the issue of Carbon ETC Securities.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

EUAs at fair value (continued)

The fair values of the EUA by Series as at 31 December 2023 are as follows:

Series

name

Allowance

Currency

Total Allowances

Price

per

Allowance

Fair

value

EUR

Series

EUA

EUR

49,951

77.25

3,858,710

Series

EUA

s at fair value

in relation to the Product Fee

EUR

77.25

3,790

Total EUAs at fair value

50,000

77.25

3,862,500

Movement in fair values by Series for the period ended 31 December 2023

Series Allowance

description

CCY Opening

balance

Additions

Transfers to EUAs at fair

value in relation to the

Product Fee

Net changes in

fair values

Closing

balance

18-Oct-22

EUR

EUR EUR

Dec

EUR

Series

EUA

EUR

3,815,915

(3,

329

)

46,

124

3,8

58,710

EUAs at fair value in relation to the Product Fee payable

31-Dec-23

EUR

EUAs at fair value in relation to the Product Fee payable

3,790

Movement in EUAs at fair value in relation to the Product Fee payable 31-Dec-23

EUR

At beginning of the period

Non-cash transactions

Transfer to EUAs at fair value in relation to the Product Fee

3,329

Fair value gain on EUAs at fair value in relation to the Product Fee payable

461

At end of the period

3,790

Other payables

Dec

EUR

Other amounts due to Programme Administrator

429

Financial liabilities designated at fair value through profit or loss

31-Dec-23

Nominal

units issued

Fair value

EUR

Carbon ETC Securities issued

2,941 3,858,710

Movement in Carbon ETC Securities issued

31-Dec-23

EUR

At beginning of the period

Non

-cash transactions

Issue of Carbon ETC Securities during the period

3,815,915

Net

changes in fair value during the period

42,795

At end of the period

3,858,710

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Financial liabilities designated at fair value through profit or loss (continued)

The Carbon ETC Securities issued are listed on the Frankfurt exchange. Refer to note 15 for a description of the key risks regarding the issue

of these instruments. The Company’s obligations under the financial liabilities issued are secured by the EUAs as per note 9. The investors’

recourse per Series is limited to the assets of that particular Series. The Series have an option for early redemption (see note 15(c) for further

information).

The non-cash transactions relate to delivery of Carbon ETC Securities to meet the payment for subscriptions.

The financial liabilities in issue at 31 December 2023 are as follows:

Series

Description

CCY

Product

fees

Maturity

date

Units

Outstanding

31-Dec-23

Value per

unit

(EUR

)

31-Dec-23

Fair

value

EUR

31-Dec-23

Series 1

Carbon ETC Securities

EUR

0.79%

30-Sep-2100

2,941 1,312.04

3,858,710

Share capital

Authorised

Dec

GBP

2 ordinary shares of GBP 1 each 2

Issued and unpaid EUR

2 ordinary shares of GBP 1 each 2

As at 31 December 2023, the ordinary share capital was held by the following non-beneficial nominees:

Dec

GBP

Apex Financial Services (Nominees) Limited 1

Apex Financial Services (Nominees 2) Limited 1

The authorised share capital of the Company is GBP 2, out of which 2 ordinary shares have been issued and remain unpaid. The nominees

have no beneficial interest in and derives no benefit from its holding of the shares. There are no other rights that pertain to the shares and the

shareholders.

Capital risk management

The Company is a special purpose vehicle set up to issue Carbon ETC Securities for the purpose of making investments as defined under the

programme memorandum and in each of the Series memorandum agreements. Share capital of GBP 2 was issued in line with Jersey Company

Law and is not used for financing the investment activities of the Company. The Company is not subject to any other externally imposed

capital requirements.

Financial risk management

Risk management framework

The Company, and ultimately the holders of the Carbon ETC Securities, have exposure to the following risks from its use of financial instruments:

(a)

Market risk;

(b)

Credit risk;

(c)

Liquidity risk;

(d)

Operational risk; and

(e)

Climate risk.

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for

measuring and managing these risks. Given the nature of the Company’s activities, risk management disclosures for EUAs at fair value have

been included alongside the Company’s financial instruments.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Financial risk management (continued)

(a)

Market risk

Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. The Carbon ETC Securityholders

are exposed to the market risk of the financial instruments.

(i)

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of financials instruments will fluctuate as a result of a

change in interest rates. The Carbon ETC Securities and the EUAs do not bear interest. As such, the Company and Carbon

ETC Securityholders have limited exposure to interest rate risk.

(ii)

Currency risk

Currency risk is the risk which arises where the assets and liabilities of the Company are denominated in currencies other

than its functional currency. As at 31 December 2023, the Company is exposed to assets and liabilities denominated in

Pound Sterling (GBP).

The Company is not exposed to net currency risk as assets and liabilities denominated in GBP are trivial.

As part of the Company’s establishment a sterling denominated deposit account was opened and funded by the Programme

Administrator with a trivial cash amount, which is equal to the amount repayable to the Programme Administrator as

disclosed in note 11.

(iii)

Price risk

Price risk is the risk that changes in market prices of EUAs will affect the Company’s income, expense, EUAs, Product

Fee payable and financial liabilities designated at fair value through profit or loss. The Company’s liabilities are exposed

to the market prices of the EUAs. However, the risk is mitigated by the Company holding quantities of EUAs equivalent

to the EUA entitlement for each Series of Carbon ETC Securities issued.

The EUA market can be volatile due to many other factors, in particular liquidity levels, speculation and market sensitivity

to actual or anticipated political decisions and announcements surrounding the EU ETS, and the price of fossil fuels (in

particular coal and gas prices). Any change in the global, regional political, economic or financial conditions that have

contributed or may contribute to a decrease in the value of EUAs (including a downturn in demand for EUAs) may affect

the market price of the Carbon ETC Securities, including any market price received by an investor in any secondary market

transaction.

As with many similar financial markets, the EU ETS has historically been subject to fraud and attacks of cybercrime,

phishing and cyber hacking scams. Negative publicity may contribute to the decrease in the value of EUAs and affect the

market price of EUAs and the Carbon ETC Securities, including any market price received by an investor in any secondary

market transaction.

Any changes in the Allowance spot prices on the EUAs held by the Company would not have any net effect on the equity

or the profit or loss of the Company since changes in the fair value of EUAs would be offset by corresponding changes in

the fair value of the Carbon ETC Securities and as such any price risk is ultimately borne by the Carbon ETC

Securityholders.

Sensitivity analysis

IFRS 7 Financial Instruments: Disclosures, requires disclosure of a sensitivity analysis for each market risk to which the Company

is exposed at the reporting date, showing how profit or loss and equity would have been affected by changes in the relevant risk

variable that were reasonably possible at that date.

As mentioned in market risk above, the Company has minimal net exposure to market and currency risk. However, the profit or

loss, and other comprehensive income will be affected by movements in the price of the EUAs. During the period to 31 December

2023, the value of EUAs spot prices was between EUR 66.33 and EUR 77.25.

The sensitivity analysis on the next page is prepared assuming a 25% percentage point increase or decrease in the value of the

EUAs spot prices, as this movement represents management estimate of a reasonable plausible change in the price of the EUAs.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Financial risk management (continued)

(a)

Market risk (continued)

Sensitivity analysis (continued)

As on 31 December 2023

Change in period-end price

Effect on profit

or loss

Effect on other

comprehensive

income

Total effect on

comprehensive

result

EUAs at fair value

(including those in

relation to the Product Fee payable)

+25% -

965,625

-25% (919,040) (46,585

)

(965,625)

Product Fee payable

+25%

(947)

-25% 947

947

Financial liabilities designated at

fair

value

through

profit

loss

+25% (964,678)

(964,678)

25%

964,678

(919,040)

919,040

(b)

Credit risk

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual

obligations. The Company’s principal financial assets are cash and cash equivalents, other receivables and EUAs which

represents the Company's maximum exposure to credit risk. All credit risks are ultimately borne by the Carbon ETC

Securityholders. The credit risk attributable to cash and cash equivalents is considered immaterial.

31-Dec-23

EUR

Other receivables – unpaid share capital 2

Cash and cash equivalents 429

431

The Company has no net credit risk given its obligations to the Carbon ETC Securityholders are limited in recourse to the amount

received on the EUAs for each series of Carbon ETC Securities.

As at 31 December 2023, no financial assets carried at amortised cost were past due or impaired. All the assets have been pledged

as collateral for financial liabilities and are disclosed in note 9.

Custodian risk

The Company’s Custodian is European Depositary Bank S.A. (the “Custodian” or “EDB”). The Company’s ability to meet its

obligations with respect to the Carbon ETC Securities is dependent upon the performance of the Custodian of its obligations

under the relevant Custody Agreement. The Directors have also considered the credit risk and counterparty risk with the

Custodian, of the EUAs held by the Company given the significance of the EUAs to the overall financial position of the Company.

As at 31 December 2023, the Company held EUAs at fair value of EUR 3,862,500 (including the value of allowance entitlement

in relation to the Product Fee) with EDB.

The EUAs are held by the Custodian in their account at the Luxembourg registry. The Custodian has no obligation to maintain

insurance specific to the Company or specific only to the EUA held for the Company against theft or loss. However, the Custodian

maintains insurance in connection with its own business operation. The level of insurance and particulars remains at the discretion

of the Custodian. There is a risk that the EUA could be lost or stolen and the Company would not be able to satisfy its obligations

in respect of the Carbon ETC Securities. In such an event the Company would adjust the EUA Entitlement of each Security of the

relevant Series to the extent necessary to reflect such damage or loss.

The credit rating of EDB is not available, the Directors have considered that as the EUAs are held in the Union Registry on the

Company’s behalf by EDB, that they are of the opinion that the Custodian counterparty risk is acceptable. The Directors have

considered the credit risk attributable to the cash and cash equivalents held with Butterfield (Jersey) as immaterial.

Ultimately, all credit and counterparty risks associated with EDB are borne by the Carbon ETC Securityholders.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Financial risk management (continued)

(b)

Credit risk (continued)

Concentration risk

At the reporting date, the Company’s EUAs at fair value were concentrated in the following asset types and geographical location:

industry

Dec

Types of collaterals

EUAs

100

By Geographical location

31-Dec-23

Country of origin

Luxembourg

100

(c)

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations as they fall due. The Company limits its exposure

to liquidity risk given the Company’s ability to realise the EUAs in cash and the EUAs held by each series match the securities

issued and any redemptions made. The ultimate amount repaid to the Carbon ETC Securityholders is limited in recourse to the

proceeds from the EUAs. All liquidity risk associated with the EUAs are ultimately borne by the Carbon ETC Securityholders.

Other payables are deemed by the Directors to be immaterial.

The contractual maturity profile of financial liabilities as at 31 December 2023 is as follows:

Carrying amount

Gross

contractual cash

flows

Less than one

year

EUR

Financial liabilities designated at fair value through profit or loss

3,858,710 3,858,710 3,858,710

Product Fees payables

3,790 3,790 3,790

Other payables 429 429 429

3,862,929 3,862,929 3,862,929

Due to the fact that the Carbon ETC Securityholders have the option, through the Authorised Participants, to redeem the securities

before the final scheduled maturity date, the financial liabilities designated at fair value through profit or loss have been classified as

due in less than one year.

The carrying amount and the gross contractual cashflows are equal to the fair value of each liability as stated in the statement of

financial position.

Subscriptions

Only Authorised Participants may subscribe for Carbon ETC Securities from the Company. The Authorised Participant(s) in respect

of each Series of Carbon ETC Securities at the Issue Date of such Series will be specified in the relevant Final Terms.

Securities may be offered to any category of potential investors provided that the offer complies with the selling restrictions as

defined in the Company’s Prospectus.

Buy-backs

The Company may (without the consent of the Trustee or any Securityholder), from time to time, buy back all or some of the Carbon

ETC Securities. Only an Authorised Participant may request that the Company buy back Carbon ETC Securities by delivering a valid

Buy-Back Order subject to and in accordance with the terms of the Authorised Participant Agreement. The Company will only

accept a Buy- Back Order and buy back Carbon ETC Securities if a valid Buy-Back Order is given by an Authorised Participant and

all conditions precedent to a purchase of the Carbon ETC Securities are satisfied.

Redemptions

The Carbon ETC Securities of a Series may become due and payable prior to their Scheduled Maturity Date, which is known as an

“Early Redemption Event” as defined in the Company’s Prospectus. If any of the Early Redemption Events occur, each Carbon

ETC Security will become due and payable at an amount (the “Early Redemption Amount”) equal to the greater of (i) the Early

Allowances(s) Redemption Amount; and (ii) Minimum Debt Principal Amount.

Final Redemption

Unless previously redeemed in whole or purchased and cancelled by the Company, the Carbon ETC Securities of each series will

become due and payable on their scheduled maturity date at their final redemption amount. The Company has the discretion to set

the Scheduled Maturity Date of a series of Carbon ETC Securities prior to the issue of that series of Carbon ETC Securities.

Their Final Redemption Amount and Early Redemption Amount depends on the Value per Carbon ETC Security, which in turn

depends on the value of the Underlying EUA.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Financial risk management (continued)

(c)

Liquidity risk (continued)

Other liquidity risks

Certain disruption events (including EUA-related disruption events) may occur which affect, inter alia, determination of the Value

per Carbon ETC Security and the allowance(s) entitlement per Carbon ETC Security, the commencement of the EUA disposal period

(the postponement of which may extend the maturity date of the Carbon ETC Securities). Disruption events may also affect the sale

of EUAs by the Company to the Carbon Counterparty, which may result in the Programme Administrator making an alternative

determination, in its sole and absolute discretion, of the satisfaction of the Early Redemption Amount or Final Redemption Amount.

Purchasers may receive substantially less than their original investment or even zero.

Certain events, including events relating to EUAs or the EU ETS, may lead to an early redemption of the Carbon ETC Securities.

The rights of securityholders to be paid amounts due under the Carbon ETC Securities (on early redemption and on enforcement) are

applied in the order of the priority waterfall set out in the Conditions.

On early redemption of the Carbon ETC Securities and in respect of any EUAs which remain stolen following delivery of a theft

event notice from the Company, such EUAs are included in the calculation of the Early Redemption Amount in respect of the relevant

Carbon ETC Securities but are deemed to have been sold at a price of zero. As a result, the securityholders may receive substantially

less than their original investment or even zero.

(d)

Operational risk

Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s processes

and infrastructure, and from external factors other than credit, markets and liquidity issues such as those arising from legal and

regulatory requirements and generally accepted standards of corporate behaviour.

Operational risks arise from all of the Company’s operations. The Company was incorporated with the purpose of engaging in those

activities outlined in note 1. All administration functions are undertaken by Apex Financial Services (Corporate) Limited. DWS

Investments UK Limited acts as the Company’s Programme Administrator.

The Directors have considered the credit and counterparty risk of Standard Chartered Bank as the Carbon Counterparty. Standard

Chartered Bank’s S&P Global credit rating is A-1, therefore the Directors are of the opinion that Carbon Counterparty risk is

acceptable.

(e)

Climate risk

The Directors acknowledge that climate change is an emerging risk impacting the global economy and will continue to be of

interest to all stakeholders with a focus on how climate change is expected to impact the operations of the EUAs industry. While the

demand for the EUAs will be correlated to climate change, the Directors have determined that there are no immediate impacts of

climate change on the business operations of the Company. Given this, there is no basis on which to provide extended information of

analysis relating to climate change risks on the business operations of the Company. Furthermore, the Directors conclude that at

present there is no material impact to the fair value of financial instruments, assets and liabilities of the company. The Directors

recognise that governmental and societal responses to climate change risks are still developing and the future impact cannot be

predicted. Therefore, the future fair value of assets and liabilities may fluctuate as the market responds to climate change policies,

physical events and changes in societal behaviours.

Fair values

The Company's financial assets and financial liabilities at fair value through profit or loss are carried at fair value in the statement of financial

position.

The Company’s accounting policy on fair value measurement for EUAs is disclosed in note 3(e) to the financial statements. The Company's

accounting policy on fair value measurement of financial assets designated at fair value through profit or loss and financial liabilities

designated at fair value through profit or loss is disclosed in note 3(f). The Company measures fair values using the following fair value

hierarchy that reflects the significance of the inputs used in making the measurements.

 Level 1: Quoted market price in an active market for an identical instrument.

 Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices).

 Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the

reporting date that would have been determined by market participants acting at arm’s length.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Fair values (continued)

Level 2 prices use widely recognised valuation models for determining the fair value of common and more simple financial instruments that

use only observable market data and require little management judgement and estimation. Availability of observable market prices and model

inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determination of fair

values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on

specific events and general conditions in the financial markets.

Transfers between levels are determined based on changes to the significant inputs used in their fair value measurement. The Directors

evaluate whether significant inputs to the valuation models are observable at the period end in making a decision to change levelling from one

level to another.

The Company determines the effective date of transfer at the beginning of the reporting period.

The Company does not have any financial instruments at level 3 and there has not been any transfer between levels during the period ended

31 December 2023.

At 31 December 2023, the carrying amounts of EUAs at fair value and financial liabilities issued by the Company are as follows:

Level

Total

EUR

EUAs at fair value

3,858,710

858,710

EUAs at fair value in relation to the Product Fee payable

3,790

Product Fees payable

(3,790)

Financial liabilities designated at fair value through profit

loss

(3,858,710)

3,862,500

,862

500

)

Although the Directors believe that their estimates of fair value are appropriate, the use of different methodologies or assumptions could

lead to different measurements of fair value as fair value estimates are made at a specific point in time, based on market conditions

and information about the financial instrument.

Classification of financial instruments

Carrying

value

Fair

value

At fair value through profit or loss

31-Dec-23

EUR

31-Dec-23

EUR

Product Fees payable

(3,790)

Financial liabilities designated at fair value through profit or loss

(3,858,710)

(3,862,500)

At amortised cost

Cash

and

cash

equivalents

429

Other receivables

Other payables

(429)

Operating expenses

All costs associated with the Company are paid by the Programme Administrator including audit fees. Audit fees incurred for the period

ended 31 December 2023 amounted to GBP 60,000.

Related Party Transactions and connected parties

All expenses of the Company are borne by DWS Investments UK Limited, as Programme Administrator, including fees paid to Apex Financial

Services (Corporate) Limited (the “Corporate Services Provider”), EDB as Custodian, Apex Fund Services (Ireland) Limited (the

“Determination Agent and Issuing Agent”), and Apex Corporate Trustees (UK) Limited (the “Trustee”). During the financial period, the

Company incurred a cost of EUR 67,000 relating to administration services provided by Corporate Services Provider, a cost of EUR 38,250

related to the custody services provided by EBD, a cost EUR 3,125 relating services provided by the Determination Agent and Issuing Agent,

a cost of EUR 127,318 relating to the services provided by the Trustee.

Xtrackers (Jersey) ETC PLC

Notes to the financial statements (continued)

For the period from the date of incorporation 18 October 2022 to 31 December 2023

Related Party Transactions and connected parties (continued)

Product fees incurred for the period ended 31 December 2023 due to Programme Administrator amounted to EUR 3,329 of which EUR 3,790

was payable as at 31 December 2023, with the change attributable to fair value movements (see note 10).

Paul Michael Monahan and Vinod Kumar Rajput are Directors of the Company and are employees of an affiliate company of the Corporate

Services Provider and Apex Financial Services (Nominees) Limited and Apex Financial Services (Nominees 2) Limited are affiliates of the

Corporate Services Provider.

Ultimate controlling party

The Directors of the Company consider Apex Financial Services (Trustees) Limited as trustee of the Xtrackers (Jersey) ETC Purpose Trust

(the beneficial owner of the issued share capital of the Company) to be the ultimate controlling party of the Company.

Key management personnel

The key management personnel have been identified as being the Directors of the Company.

Paul Michael Monahan and Vinod Kumar Rajput were employees of Apex Financial Services (Jersey) Limited during the period ended 31

December 2023. Their emoluments are paid by Apex Financial Services (Jersey) Limited and other related entities and no re-charge is made

to the Company. It is therefore not possible to make a reasonable apportionment of their emoluments in respect of the Company.

Subsequent events

There have been no significant subsequent events since the period end and up to the date of signing this report, 24 April 2024, that require disclosure

in this financial statements.