-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q/LVs8jHV0iqM64iYJNQces4uopH3q/RjHdHX3/IjKpBEGv3c3sw9AlzRRLNT2iz 423LXL7OL+f3BlSbNubT8A== 0001135428-11-000015.txt : 20110106 0001135428-11-000015.hdr.sgml : 20110106 20110106141750 ACCESSION NUMBER: 0001135428-11-000015 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20101031 FILED AS OF DATE: 20110106 DATE AS OF CHANGE: 20110106 EFFECTIVENESS DATE: 20110106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Global X Funds CENTRAL INDEX KEY: 0001432353 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-22209 FILM NUMBER: 11513728 BUSINESS ADDRESS: STREET 1: C/O LAW OFFICES OF DT CHISOLM, P.C. STREET 2: 11508 H-236 PROVIDENCE ROAD CITY: CHARLOTTE, STATE: NC ZIP: 28277 BUSINESS PHONE: (704) 806-2387 MAIL ADDRESS: STREET 1: C/O LAW OFFICES OF DT CHISOLM, P.C. STREET 2: 11508 H-236 PROVIDENCE ROAD CITY: CHARLOTTE, STATE: NC ZIP: 28277 0001432353 S000023259 Global X FTSE Nordic 30 ETF C000068030 Global X FTSE Nordic 30 ETF 0001432353 S000024773 Global X/InterBolsa FTSE Colombia 20 ETF C000073664 Global X/InterBolsa FTSE Colombia 20 ETF 0001432353 S000026979 Global X China Consumer ETF C000081214 Global X China Consumer ETF 0001432353 S000026984 Global X China Energy ETF C000081219 Global X China Energy ETF 0001432353 S000026985 Global X China Financials ETF C000081220 Global X China Financials ETF 0001432353 S000026986 Global X China Industrials ETF C000081221 Global X China Industrials ETF 0001432353 S000026987 Global X China Materials ETF C000081222 Global X China Materials ETF 0001432353 S000026988 Global X China Technology ETF C000081223 Global X China Technology ETF 0001432353 S000028727 Global X Copper Miners ETF C000087858 Global X Copper Miners ETF 0001432353 S000028730 Global X Silver Miners ETF C000087861 Global X Silver Miners ETF 0001432353 S000029210 Global X Brazil Consumer ETF C000089863 Global X Brazil Consumer ETF 0001432353 S000029211 Global X Brazil Financials ETF C000089864 Global X Brazil Financials ETF 0001432353 S000029215 Global X Brazil Mid Cap ETF C000089868 Global X Brazil Mid Cap ETF 0001432353 S000029441 Global X Lithium ETF C000090392 Global X Lithium ETF N-CSR 1 globalx_ncsr.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________ FORM N-CSR ________ CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER 811-22209 THE GLOBAL X FUNDS (Exact name of registrant as specified in charter) ________ 410 Park Avenue, 4th Floor New York, NY 10022 (Address of principal executive offices) (Zip code) SEI Investments Global Fund Services One Freedom Valley Drive Oaks, PA 19456 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (888) 493-8631 DATE OF FISCAL YEAR END: OCTOBER 31, 2010 DATE OF REPORTING PERIOD: OCTOBER 31, 2010 ITEM 1. REPORTS TO STOCKHOLDERS. [LOGO OMITTED] GLOBAL FUNDS The World in your Hands GLOBAL X SILVER MINERS ETF GLOBAL X LITHIUM ETF GLOBAL X COPPER MINERS ETF GLOBAL X BRAZIL MID CAP ETF GLOBAL X BRAZIL FINANCIALS ETF GLOBAL X BRAZIL CONSUMER ETF GLOBAL X /INTERBOLSA FTSE COLOMBIA 20 ETF GLOBAL X FTSE NORDIC 30 ETF GLOBAL X CHINA CONSUMER ETF GLOBAL X CHINA ENERGY ETF GLOBAL X CHINA FINANCIALS ETF GLOBAL X CHINA INDUSTRIALS ETF GLOBAL X CHINA TECHNOLOGY ETF GLOBAL X CHINA MATERIALS ETF ANNUAL REPORT OCTOBER 31, 2010 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands TABLE OF CONTENTS - -------------------------------------------------------------------------------- Management Discussion of Fund Performance 1 Schedules of Investments Global X Silver Miners ETF 15 Global X Lithium ETF 17 Global X Copper Miners ETF 19 Global X Brazil Mid Cap ETF 21 Global X Brazil Financials ETF 24 Global X Brazil Consumer ETF 26 Global X/InterBolsa FTSE Colombia 20 ETF 28 Global X FTSE Nordic 30 ETF 30 Global X China Consumer ETF 33 Global X China Energy ETF 35 Global X China Financials ETF 37 Global X China Industrials ETF 39 Global X China Technology ETF 41 Global X China Materials ETF 43 Statements of Assets and Liabilities 45 Statements of Operations 48 Statements of Changes in Net Assets 51 Financial Highlights 55 Notes to Financial Statements 56 Report of Independent Registered Public Accounting Firm 69 Disclosure of Fund Expenses 70 Approval of Investment Advisory Agreement 72 Supplemental Information 77 Trustees and Officers of the Trust 80 Notice to Shareholders 83 The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the "Commission") for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds' Forms N-Q are available on the Commission's website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, will be available (i) without charge, upon request, by calling 1-888-GXFund-1; and (ii) on the Commission's website at http://www.sec.gov. [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X SILVER MINERS ETF - -------------------------------------------------------------------------------- GLOBAL X SILVER MINERS ETF (TICKER: SIL) The Global X Silver Miners ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Silver Miners Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the silver mining industry. It is comprised of selected companies globally that are actively engaged in some aspect of the silver mining industry, such as silver mining, refining, or exploration. The Fund is the first Exchange Traded Fund ("ETF") globally focused exclusively on the silver mining sector. For the period from the Fund's commencement date on April 19, 2010 through October 31, 2010 (the "reporting period"), the Fund increased 39.31%, while the Index increased 40.04% . The Fund commenced operations with a net asset value of $14.50 per share on April 19, 2010 and ended the period with a net asset value of $20.20 on October 31, 2010. Twenty-one of the Fund's twenty-six holdings as of October 31, 2010 increased in value for the reporting period, led by First Majestic Silver and Hochschild Mining, which returned 127.66% and 82.74% respectively. The worst performers were Excellon Resources and Scorpio Mining, which returned -19.53% and -8.55% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X Silver Miners ETF 39.31% 39.86% ----------------------------------- Solactive Global Silver Miners Index 40.04% 40.04% ----------------------------------- [LINE GRAPH OMITTED] 4/19/2010 10/31/2010 Global X Silver Miners ETF $ 10,000 $ 13,931 Solactive Global Silver Miners Index $ 10,000 $ 14,004 Global X Silver Miners ETF* Solactive Global Silver Miners Index *FUND COMMENCED OPERATIONS ON APRIL 19, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND PERFORMANCE. 1 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X LITHIUM ETF - -------------------------------------------------------------------------------- GLOBAL X LITHIUM ETF (TICKER: LIT) The Global X Lithium ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the largest and most liquid listed companies that are active in the exploration and/or mining of Lithium or the production of Lithium batteries. The Fund is the first ETF globally focused exclusively on the lithium sector. For the period from the Fund's commencement date on July 22, 2010 through October 31, 2010 (the "reporting period"), the Fund increased 27.85%, while the Index increased 27.99% . The Fund commenced operations with a net asset value of $15.51 per share on July 22, 2010 and ended the period with a net asset value of $19.83 on October 31, 2010. Nineteen of the Fund's twenty holdings as of October 31, 2010 increased in value for the reporting period, led by Avalon Rare Metals and Valance Technology, which returned 80.07% and 67.53% respectively. Only one holding as of October 31, 2010 lost value during the reporting period, Coslight Technology International Group, which returned -16.14% . GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X Lithium ETF 27.85% 28.18% ----------------------------------- Solactive Global Lithium Index 27.99% 27.99% ----------------------------------- [LINE GRAPH OMITTED] 7/22/2010 10/31/2010 Global X Lithium ETF $ 10,000 $ 12,785 Solactive Global Lithium Index $ 10,000 $ 12,799 Global X Lithium ETF* Solactive Global Lithium Index *FUND COMMENCED OPERATIONS ON JULY 22, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND PERFORMANCE. 2 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X COPPER MINERS ETF - -------------------------------------------------------------------------------- GLOBAL X COPPER MINERS ETF (TICKER: COPX) The Global X Copper Miners ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Copper Miners Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the copper mining industry. It is comprised of selected companies globally that are actively engaged in some aspect of the copper mining industry, such as copper mining, refining, or exploration. For the period from the Fund's commencement date on April 19, 2010 through October 31, 2010 (the "reporting period"), the Fund increased 15.49%, while the Index increased 16.17% . The Fund commenced operations with a net asset value of $14.40 per share on April 19, 2010 and ended the period with a net asset value of $16.63 on October 31, 2010. Twenty-five of the Fund's thirty-one holdings as of October 31, 2010 increased in value for the reporting period, led by Augusta Resource and Duluth Metals, which returned 57.66% and 57.30% respectively. The worst performers were Cudeco and Vedanta Resources, which returned -49.22% and -20.26% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X Copper Miners ETF 15.49% 15.90% ----------------------------------- Solactive Global Copper Miners Index 16.17% 16.17% ----------------------------------- [LINE GRAPH OMITTED] 4/19/2010 10/31/2010 Global X Copper Miners ETF $ 10,000 $ 11,549 Solactive Global Copper Miners Index $ 10,000 $ 11,617 Global X Copper Miners ETF* Solactive Global Copper Miners Index *FUND COMMENCED OPERATIONS ON APRIL 19, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND PERFORMANCE. 3 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X BRAZIL MID CAP ETF - -------------------------------------------------------------------------------- GLOBAL X BRAZIL MID CAP ETF (TICKER: BRAZ) The Global X Brazil Mid Cap ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Mid Cap Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of Brazilian mid cap companies. It is comprised of mid-market capitalization securities of companies that are domiciled or have their main business operations in Brazil. The Fund is the first ETF globally focused exclusively on Brazil mid cap companies. For the period from the Fund's commencement date on June 21, 2010 through October 31, 2010 (the "reporting period"), the Fund increased 20.58%, while the Index increased 20.64% . The Fund commenced operations with a net asset value of $15.16 per share on June 21, 2010 and ended the period with a net asset value of $18.28 on October 31, 2010. Thirty-seven of the Fund's forty-one holdings as of October 31, 2010 increased in value for the reporting period, led by TAM and Lojas Renner, which returned 65.17% and 48.63% respectively. The worst performers were Metalurgica Gerdau and Marfrig Alimentos, which returned -14.80% and -6.56% respectively. GROWTH OF A $10,000 INVESTMENT AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X Brazil Mid Cap ETF 20.58% 22.30% ----------------------------------- Solactive Brazil Mid Cap Index 20.64% 20.64% ----------------------------------- [LINE GRAPH OMITTED] 6/21/2010 10/31/2010 Global X Brazil Mid Cap ETF $ 10,000 $ 12,058 Solactive Brazil Mid Cap Index $ 10,000 $ 12,064 Global X Brazil Mid Cap ETF* Solactive Brazil Mid Cap Index *FUND COMMENCED OPERATIONS ON JUNE 21, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND PERFORMANCE. 4 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X BRAZIL FINANCIALS ETF - -------------------------------------------------------------------------------- GLOBAL X BRAZIL FINANCIALS ETF (TICKER: BRAF) The Global X Brazil Financials ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Financials Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the financial sector in Brazil. It is comprised of selected companies which have their main business operations in the financial sector and are domiciled or have their main business operations in Brazil. The Fund is the first ETF globally focused exclusively on the Brazil financial sector. For the period from the Fund's commencement date on July 28, 2010 through October 31, 2010 (the "reporting period"), the Fund increased 15.38%, while the Index increased 15.57% . The Fund commenced operations with a net asset value of $15.08 per share on July 28, 2010 and ended the period with a net asset value of $17.40 on October 31, 2010. Twenty-two of the Fund's twenty-five holdings as of October 31, 2010 increased in value for the reporting period, led by Brasil Brokers Participacoe and Sul America, which returned 42.72% and 38.17% respectively. The worst performers were Banco Panamericano and Redecard, which returned -10.23% and -6.08% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X Brazil Financials ETF 15.38% 17.37% ----------------------------------- Solactive Brazil Financials Index 15.57% 15.57% ----------------------------------- [LINE GRAPH OMITTED] 7/28/2010 10/31/2010 Global X Brazil Financials ETF $ 10,000 $ 11,538 Solactive Brazil Financials Index $ 10,000 $ 11,557 Global X Brazil Financials ETF* Solactive Brazil Financials Index *FUND COMMENCED OPERATIONS ON JULY 28, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND PERFORMANCE. 5 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X BRAZIL CONSUMER ETF - -------------------------------------------------------------------------------- GLOBAL X BRAZIL CONSUMER ETF (TICKER: BRAQ) The Global X Brazil Consumer ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Consumer Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the consumer sector in Brazil. It is comprised of selected companies which have their main business operations in the consumer sector and are domiciled or have their main business operations in Brazil. The Fund is the nation's first ETF focused exclusively on the Brazil consumer sector. For the period from the Fund's commencement date on July 7, 2010 through October 31, 2010 (the "reporting period"), the Fund increased 28.88%, while the Index increased 29.31% . The Fund commenced operations with a net asset value of $15.48 per share on July 7, 2010 and ended the period with a net asset value of $19.95 on October 31, 2010. Twenty-seven of the Fund's twenty-nine holdings as of October 31, 2010 increased in value for the reporting period, led by Cia Hering and SLC Agricola, which returned 84.72% and 67.51% respectively. Only two holdings as of October 31, 2010 lost value during the reporting period, JBS and Marfrig Alimentos, which returned -14.83% and -9.62% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X Brazil Consumer ETF 28.88% 31.01% ----------------------------------- Solactive Brazil Consumer Index 29.31% 29.31% ----------------------------------- [LINE GRAPH OMITTED] 7/7/2010 10/31/2010 Global X Brazil Consumer ETF $ 10,000 $ 12,888 Solactive Brazil Consumer Index $ 10,000 $ 12,931 Global X Brazil Consumer ETF* Solactive Brazil Consumer Index *FUND COMMENCED OPERATIONS ON JULY 7, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND PERFORMANCE. 6 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF - -------------------------------------------------------------------------------- GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF (TICKER: GXG) The Global X/InterBolsa FTSE Colombia 20 ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Colombia 20 Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is a market capitalization-weighted index of the 20 most liquid stocks in the Colombian market. The Index is designed to measure broad based equity market performance in Colombia. The Fund is the first ETF globally focused exclusively on Colombia. For the 12-month period ended October 31, 2010 (the "reporting period"), the Fund increased 71.28%, while the Index increased 75.53% . The Fund had a net asset value of $27.84 per share on October 31, 2009 and ended the period with a net asset value of $45.98 on October 31, 2010. Colombia was among the world's top performing countries for the reporting period. Twenty of the Fund's twenty-two holdings as of October 31, 2010 increased in value for the reporting period led by Grupo Aval Acciones y Valores and Tableros y Maderas de Caldas, which returned 125.02% and 91.31% respectively. Only two holdings as of October 31, 2010 lost value during the reporting period, Empresa de Telecomunicaciones de Bogota and Sociedad de Inversiones en Energia, which returned -18.84% and -0.35% respectively. GROWTH OF A $10,000 INVESTMENT
--------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* --------------------------------------------------------------------- One Year Return Annualized Inception to Date --------------------------------------------------------------------- Net Asset Value Market Price Net Asset Value Market Price --------------------------------------------------------------------- Global X/InterBolsa FTSE Colombia 20 ETF 71.28% 64.38% 94.75% 90.90% --------------------------------------------------------------------- FTSE Colombia 20 Index 75.53% 75.53% 97.61% 97.61% ---------------------------------------------------------------------
[LINE GRAPH OMITTED]
2/5/2009 10/31/2009 10/31/2010 Global X/InterBolsa FTSE Colombia 20 ETF $ 10,000 $ 18,560 $ 31,790 FTSE Colombia 20 Index $ 10,000 $ 18,563 $ 32,584
Global X/InterBolsa FTSE Columbia 20 ETF FTSE Colombia 20 Index *FUND COMMENCED OPERATIONS ON FEBRUARY 5, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 7 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X FTSE NORDIC 30 ETF - -------------------------------------------------------------------------------- GLOBAL X FTSE NORDIC 30 ETF (TICKER: GXF) The Global X FTSE Nordic 30 ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Nordic 30 Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is a market capitalization-weighted index of the 30 largest and most liquid stocks in Sweden, Denmark, Norway and Finland. The Index is designed to measure broad based equity market performance in these countries. The Fund is the nation's first ETF focused exclusively on the Nordic region. For the 12-month period ended October 31, 2010 (the "reporting period"), the Fund increased 19.68%, while the Index increased 20.20% . The Fund had a net asset value of $16.07 per share on October 31, 2009 and ended the period with a net asset value of $19.22 on October 31, 2010. The Nordic region was among the top performing developed market regions for the reporting period. Twenty-seven of the Fund's thirty holdings as of October 31, 2010 increased in value for the reporting period, led by Novo Nordisk and SKF, which returned 70.73% and 62.28% respectively. The worst performers were Vestas Wind Systems and Nokia, which returned -55.15% and -12.38% respectively. GROWTH OF A $10,000 INVESTMENT
------------------------------------------------------------------ AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ------------------------------------------------------------------ One Year Return Annualized Inception to Date ------------------------------------------------------------------ Net Asset Value Market Price Net Asset Value Market Price ------------------------------------------------------------------ Global X FTSE Nordic 30 ETF 19.68% 19.71% 26.43% 26.86% ------------------------------------------------------------------ FTSE Nordic 30 Index 20.20% 20.20% 27.59% 27.59% ------------------------------------------------------------------
[LINE GRAPH OMITTED]
8/17/2009 10/31/2009 10/31/2010 Global X FTSE Nordic 30 ETF $ 10,000 $ 11,083 $ 13,263 FTSE Nordic 30 Index $ 10,000 $ 11,160 $ 13,415
Global X FTSE Nordic 30 ETF* FTSE Nordic 30 Index *FUND COMMENCED OPERATIONS ON AUGUST 17, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 8 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X CHINA CONSUMER ETF - -------------------------------------------------------------------------------- GLOBAL X CHINA CONSUMER ETF (TICKER: CHIQ) The Global X China Consumer ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Consumer Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the consumer sector in China. It is comprised of selected companies which have their main business operations in the consumer sector and are domiciled in China or have their main business operations in this country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the first ETF globally focused exclusively on the China consumer sector. For the period from the Fund's commencement date on November 30, 2009 through October 31, 2010 (the "reporting period"), the Fund increased 29.90%, while the Index increased 30.37% . The Fund commenced operations with a net asset value of $15.65 per share on November 30, 2009 and ended the period with a net asset value of $20.33 on October 31, 2010. Thirty-one of the Fund's forty holdings as of October 31, 2010 increased in value for the reporting period, led by Great Wall Motor and Bosideng International Holdings, which returned 169.58% and 160.96% respectively. The worst performers were VisionChina Media and China Dongxiang Group, which returned -54.77% and -19.38% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X China Consumer ETF 29.90% 31.18% ----------------------------------- Solactive China Consumer Index 30.37% 30.37% ----------------------------------- [LINE GRAPH OMITTED] 11/30/2009 10/31/2010 Global X China Consumer ETF $ 10,000 $ 12,990 Solactive China Consumer Index $ 10,000 $ 13,037 Global X China Consumer ETF* Solactive China Consumer Index *FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 9 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X CHINA ENERGY ETF - -------------------------------------------------------------------------------- GLOBAL X CHINA ENERGY ETF (TICKER: CHIE) The Global X China Energy ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Energy Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the energy sector in China. It is comprised of selected companies which have their main business operations in the energy sector and are domiciled in China or have their main business operations in this country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the nation's first ETF focused exclusively on the China energy sector. For the period from the Fund's commencement date on December 15, 2009 through October 31, 2010 (the "reporting period"), the Fund increased 4.66%, while the Index increased 5.79% . The Fund commenced operations with a net asset value of $15.02 per share on December 15, 2009 and ended the period with a net asset value of $15.72 on October 31, 2010. Sixteen of the Fund's twenty-seven holdings as of October 31, 2010 increased in value for the reporting period, led by Renesola and JA Solar Holdings, which returned 166.00% and 44.62% respectively. The worst performers were Suntech Power Holdings and Honghua Group, which returned -52.57% and -27.32% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X China Energy ETF 4.66% 5.46% ----------------------------------- Solactive China Energy Index 5.79% 5.79% ----------------------------------- [LINE GRAPH OMITTED] 12/15/2009 10/31/2010 Global X China Energy ETF $ 10,000 $ 10,466 Solactive China Energy Index $ 10,000 $ 10,579 Global X China Energy ETF* Solactive China Energy Index *FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 10 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X CHINA FINANCIALS ETF - -------------------------------------------------------------------------------- GLOBAL X CHINA FINANCIALS ETF (TICKER: CHIX) The Global X China Financials ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Financials Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the financial sector in China. It is comprised of selected companies which have their main business operations in the financial sector and are domiciled in China or have their main business operations in this country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the nation's first ETF focused exclusively on the China financial sector. For the period from the Fund's commencement date on December 10, 2009 through October 31, 2010 (the "reporting period"), the Fund decreased 0.87%, while the Index decreased 0.23% . The Fund commenced operations with a net asset value of $14.90 per share on December 10, 2009 and ended the period with a net asset value of $14.77 on October 31, 2010. Eleven of the Fund's thirty-three holdings as of October 31, 2010 increased in value for the reporting period, led by Soho China and PICC Property & Casualty, which returned 70.66% and 65.79% respectively. The worst performers were Greentown China Holdings and Sino-Ocean Land Holdings, which returned -35.09% and -34.47% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X China Financials ETF (0.87%) (0.27)% ----------------------------------- Solactive China Financials Index (0.23%) (0.23)% ----------------------------------- [LINE GRAPH OMITTED] 12/10/2009 10/31/2010 Global X China Financials ETF $ 10,000 $ 9,913 Solactive China Financials Index $ 10,000 $ 9,977 Global X China Financials ETF* Solactive China Financials Index *FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 11 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X CHINA INDUSTRIALS ETF - -------------------------------------------------------------------------------- GLOBAL X CHINA INDUSTRIALS ETF (TICKER: CHII) The Global X China Industrials ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Industrials Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the industrial sector in China. It is comprised of selected companies which have their main business operations in the industrial sector and are domiciled in China or have their main business operations in this country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the first ETF globally focused exclusively on the China industrial sector. For the period from the Fund's commencement date on November 30, 2009 through October 31, 2010 (the "reporting period"), the Fund increased 10.52%, while the Index increased 11.32% . The Fund commenced operations with a net asset value of $15.50 per share on November 30, 2009 and ended the period with a net asset value of $17.13 on October 31, 2010. Twenty-three of the Fund's thirty-six holdings as of October 31, 2010 increased in value for the reporting period, led by Dongfang Electric and Weichai Power, which returned 85.90% and 58.32% respectively. The worst performers were Duoyuan Global Water and A-Power Energy Generation Systems, which returned - -68.50% and -58.60% respectively. GROWTH OF A $10,000 INVESTMENT ---------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ---------------------------------- Cumulative Inception to Date ---------------------------------- Net Asset Value Market Price ---------------------------------- Global X China Industrials ETF 10.52% 11.10% ---------------------------------- Solactive China Industrials Index 11.32% 11.32% ---------------------------------- [LINE GRAPH OMITTED] 11/30/2009 10/31/2010 Global X China Industrials ETF $ 10,000 $ 11,052 Solactive China Industrials Index $ 10,000 $ 11,132 Global X China Industrials ETF* Solactive China Industrials Index *FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 12 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X CHINA TECHNOLOGY ETF - -------------------------------------------------------------------------------- GLOBAL X CHINA TECHNOLOGY ETF (TICKER: CHIB) The Global X China Technology ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Technology Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the technology sector in China. It is comprised of selected companies which have their main business operations in the technology sector and are domiciled in China or have their main business operations in this country. Only securities which are tradable for foreign investors without restrictions are eligible. For the period from the Fund's commencement date on December 8, 2009 through October 31, 2010 (the "reporting period"), the Fund increased 15.50%, while the Index increased 16.14% . The Fund commenced operations with a net asset value of $14.90 per share on December 8, 2009 and ended the period with a net asset value of $17.21 on October 31, 2010. Eighteen of the Fund's twenty-six holdings as of October 31, 2010 increased in value for the reporting period, led by Baidu and Kingdee International Software Group, which returned 162.65% and 121.58% respectively. The worst performers were BYD Electronic International and KongZhong, which returned -37.44% and - -32.97% respectively. GROWTH OF A $10,000 INVESTMENT ----------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ----------------------------------- Cumulative Inception to Date ----------------------------------- Net Asset Value Market Price ----------------------------------- Global X China Technology ETF 15.50% 15.91% ----------------------------------- Solactive China Technology Index 16.14% 16.14% ----------------------------------- [LINE GRAPH OMITTED] 12/8/2009 10/31/2010 Global X China Technology ETF $ 10,000 $ 11,550 Solactive China Technology Index $ 10,000 $ 11,614 Global X China Technology ETF* Solactive China Technology Index *FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 13 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands MANAGEMENT DISCUSSION OF FUND PERFORMANCE GLOBAL X CHINA MATERIALS ETF - -------------------------------------------------------------------------------- GLOBAL X CHINA MATERIALS ETF (TICKER: CHIM) The Global X China Materials ETF (the "Fund") seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Materials Index (the "Index"). The Fund generally seeks to replicate the Index but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index. The Index is designed to reflect the performance of the materials sector in China. It is comprised of selected companies which have their main business operations in the materials sector and are domiciled in China or have their main business operations in this country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the nation's first ETF focused exclusively on the China materials sector. For the period from the Fund's commencement date on January 12, 2010 through October 31, 2010 (the "reporting period"), the Fund decreased 2.41%, while the Index decreased 1.82% . The Fund commenced operations with a net asset value of $14.95 per share on January 12, 2010 and ended the period with a net asset value of $14.59 on October 31, 2010. Fifteen of the Fund's thirty holdings as of October 31, 2010 increased in value for the reporting period, led by Dongyue Group and China Rare Earth Holdings, which returned 126.12% and 92.76% respectively. The worst performers were China Green Agriculture and Shougang Concord International Enterprises, which returned -54.35% and -40.07% respectively. GROWTH OF A $10,000 INVESTMENT ---------------------------------- AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010* ---------------------------------- Cumulative Inception to Date ---------------------------------- Net Asset Value Market Price ---------------------------------- Global X China Materials ETF (2.41%) (1.87)% ---------------------------------- Solactive China Materials Index (1.82%) (1.82)% ---------------------------------- [LINE GRAPH OMITTED] 1/12/2010 10/31/2010 Global X China Materials ETF $ 10,000 $ 9,759 Solactive China Materials Index $ 10,000 $ 9,818 Global X China Materials ETF* Solactive China Materials Index *FUND COMMENCED OPERATIONS ON JANUARY 12, 2010. THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED, MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN UNMANAGED INDEX. THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES. THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION. 14 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X SILVER MINERS ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 99.9% Basic Materials 0.1% Short-Term Investments + Percentages based on total investments. SHARES VALUE --------- ------------- COMMON STOCK -- 100.0% CANADA-- 56.3% Basic Materials -- 56.3% Alexco Resource (*) .................... 425,000 $ 2,635,000 Bear Creek Mining (*) .................. 459,000 3,540,818 ECU Silver Mining (*) .................. 2,380,000 1,751,889 Endeavour Silver (*) ................... 418,200 2,044,998 Excellon Resources (*) ................. 2,016,200 1,642,405 First Majestic Silver (*) .............. 705,500 5,414,673 Fortuna Silver Mines (*) ............... 858,500 3,218,638 Gammon Gold (*) ........................ 799,000 5,457,170 Great Panther Silver (*) ............... 858,500 1,019,516 Impact Silver (*) ...................... 323,000 374,070 MAG Silver CAD(*) ...................... 4,640 38,663 MAG Silver USD(*) ...................... 389,760 3,235,008 Minefinders (*) ........................ 510,000 4,493,100 Orko Silver (*) ........................ 901,000 1,750,888 Pan American Silver .................... 600,100 19,155,192 Scorpio Mining (*) ..................... 850,000 725,783 Silver Standard Resources (*) .......... 307,700 7,470,956 Silver Wheaton (*) ..................... 875,500 25,170,625 Silvercorp Metals ...................... 803,250 7,510,387 ------------- TOTAL CANADA ............................. 96,649,779 ------------- MEXICO-- 11.5% Basic Materials -- 11.5% Industrias Penoles ..................... 696,400 19,762,260 ------------- PERU-- 5.3% Basic Materials -- 5.3% Hochschild Mining ...................... 1,173,000 9,093,547 ------------- RUSSIA-- 4.6% Basic Materials -- 4.6% Polymetal GDR (*) ...................... 496,250 7,840,750 ------------- UNITED STATES-- 22.3% Basic Materials -- 22.3% Coeur d'Alene Mines (*) ................ 357,000 7,357,770 Fresnillo .............................. 1,173,690 23,479,811 Hecla Mining (*) ....................... 1,031,900 7,109,791 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 15 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X SILVER MINERS ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE ------------ -------------- COMMON STOCK -- continued Basic Materials -- continued Mines Management (*) ............... 144,500 $ 358,360 ------------- TOTAL UNITED STATES .................. 38,305,732 ------------- TOTAL COMMON STOCK (Cost $142,354,887) ................ 171,652,068 ------------- TIME DEPOSIT -- 0.0% Brown Brothers, 0.031% (Cost $86,755) ................... $ 86,755 86,755 ------------- TOTAL INVESTMENTS -- 100.0% (Cost $142,441,642) ................ $ 171,738,823 ============= PERCENTAGES ARE BASED ON NET ASSETS OF $171,671,834. * Non-income producing security. CAD -- CANADIAN DOLLAR GDR -- GLOBAL DEPOSITARY RECEIPT USD-- UNITED STATES DOLLAR The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ -------- -------- ------------- Common Stock $ 171,652,068 $ -- $ -- $ 171,652,068 Time Deposit -- 86,755 -- 86,755 ------------- -------- -------- ------------- Total Investments in Securities $ 171,652,068 $ 86,755 $ -- $ 171,738,823 ============= ======== ======== =============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 16 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X LITHIUM ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 59.7% Basic Materials 40.3% Industrials + Percentages based on total investments. SHARES VALUE ---------- ------------- COMMON STOCK -- 100.0% AUSTRALIA-- 5.1% Basic Materials -- 5.1% Galaxy Resources (*) ..................... 1,892,523 $ 2,717,650 Orocobre (*) ............................. 542,872 1,293,059 ------------- TOTAL AUSTRALIA ............................ 4,010,709 ------------- CANADA-- 7.9% Basic Materials -- 6.2% Avalon Rare Metals (*) ................... 738,643 3,298,485 Canada Lithium (*) ....................... 1,268,039 1,008,059 Lithium One (*) .......................... 548,277 570,393 ------------- 4,876,937 ------------- Industrials -- 1.7% Electrovaya (*) .......................... 444,874 1,331,696 ------------- TOTAL CANADA ............................... 6,208,633 ------------- HONG KONG-- 2.7% Industrials -- 2.7% Coslight Technology International Group .. 2,933,027 2,126,534 ------------- TOTAL HONG KONG 2,126,534 ------------- UNITED STATES-- 84.3% Basic Materials -- 48.4% FMC ...................................... 180,289 13,179,126 Rockwood Holdings (*) .................... 186,349 6,320,958 Sociedad Quimica y Minera de Chile ADR ... 355,392 18,409,306 ------------- 37,909,390 ------------- Industrials -- 35.9% A123 Systems (*) ......................... 317,675 3,087,801 Advanced Battery Technologies (*) ........ 915,945 3,617,983 China BAK Battery (*) .................... 1,152,331 2,200,952 Ener1 (*) ................................ 918,620 3,325,404 Exide Technologies (*) ................... 519,415 3,059,354 GS Yuasa ................................. 455,157 3,034,380 Saft Groupe .............................. 93,160 3,558,644 Sanyo Electric (*) ....................... 837,528 1,362,088 Ultralife (*) ............................ 425,880 2,235,870 Valence Technology (*) ................... 2,036,000 2,606,080 ------------- 28,088,556 ------------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 17 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X LITHIUM ETF - -------------------------------------------------------------------------------- VALUE ------------ COMMON STOCK -- CONTINUED TOTAL UNITED STATES ....................................... $ 65,997,946 ------------ TOTAL COMMON STOCK (Cost $71,144,283) ...................................... 78,343,822 ------------ TOTAL INVESTMENTS -- 100.0% (Cost $71,144,283) ...................................... $ 78,343,822 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $78,316,565. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ -------- ------- ------------ Common Stock $ 78,343,822 $ -- $ -- $ 78,343,822 ------------ -------- ------- ------------ Total Investments in Securities $ 78,343,822 $ -- $ -- $ 78,343,822 ============ ======== ======= ============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 18 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X COPPER MINERS ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 99.8% Basic Materials 0.2% Short-Term Investments + Percentages based on total investments. SHARES VALUE --------- ------------ COMMON STOCK -- 100.0% AUSTRALIA-- 12.8% Basic Materials -- 12.8% Aditya Birla Minerals (*) ................... 226,800 $ 270,106 Cudeco (*) .................................. 86,400 202,408 Equinox Minerals (*) ........................ 300,600 1,634,433 OZ Minerals ................................. 1,123,200 1,723,003 ------------ TOTAL AUSTRALIA ............................... 3,829,950 ------------ CANADA-- 43.6% Basic Materials -- 43.6% Augusta Resource (*) ........................ 88,200 345,744 Capstone Mining (*) ......................... 126,720 445,243 Continental Minerals (*) .................... 81,000 203,514 Copper Mountain Mining CAD(*) ............... 135,200 652,845 Copper Mountain Mining USD(*) ............... 12,300 59,815 Duluth Metals (*) ........................... 57,600 158,288 First Quantum Minerals ...................... 16,128 1,413,673 HudBay Minerals, Cl B ....................... 95,400 1,507,449 Imperial Metals (*) ......................... 11,196 272,510 Inmet Mining ................................ 21,600 1,292,735 Ivanhoe Mines (*) ........................... 68,760 1,655,053 Lundin Mining (*) ........................... 235,800 1,495,012 Mercator Minerals (*) ....................... 142,200 445,204 Northern Dynasty Minerals (*) ............... 67,500 608,850 Polymet Mining (*) .......................... 237,800 439,930 Quadra FNX Mining (*) ....................... 82,971 1,172,620 Taseko Mines (*) ............................ 141,690 896,898 ------------ TOTAL CANADA .................................. 13,065,383 ------------ CHINA-- 5.1% Basic Materials -- 5.1% Jiangxi Copper, Cl H ........................ 547,200 1,524,824 ------------ MEXICO-- 4.8% Basic Materials -- 4.8% Grupo Mexico, Cl B .......................... 435,600 1,436,552 ------------ POLAND-- 4.7% Basic Materials -- 4.7% KGHM Polska Miedz ........................... 31,104 1,396,756 ------------ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 19 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X COPPER MINERS ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE ----------- ------------ COMMON STOCK -- continued SOUTH AFRICA-- 0.9% Basic Materials -- 0.9% Metorex (*) ................................... 414,000 $ 258,672 ------------ SWITZERLAND-- 4.2% Basic Materials -- 4.2% Xstrata ....................................... 65,340 1,264,783 ------------ UNITED KINGDOM-- 8.9% Basic Materials -- 8.9% Antofagasta ................................... 80,640 1,706,134 Vedanta Resources ............................. 28,800 956,405 ------------ TOTAL UNITED KINGDOM ............................ 2,662,539 ------------ UNITED STATES-- 15.0% Basic Materials -- 15.0% Freeport-McMoRan Copper & Gold ................ 19,085 1,806,968 Kazakhmys ..................................... 54,000 1,137,315 Southern Copper ............................... 36,000 1,540,800 ------------ TOTAL UNITED STATES ............................ 4,485,083 ------------ TOTAL COMMON STOCK (Cost $29,160,650) ............................ 29,924,542 ------------ TIME DEPOSIT -- 0.2% Brown Brothers, 0.031% (Cost $63,927) .............................. $ 63,927 63,927 ------------ TOTAL INVESTMENTS -- 100.2% (Cost $29,224,577) ............................ $ 29,988,469 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $29,928,577. * Non-income producing security. CAD -- CANADIAN DOLLAR CL -- CLASS USD -- UNITED STATES DOLLAR The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ --------- ----------- ------------ Common Stock $ 29,924,542 $ -- $ -- $ 29,924,542 Time Deposit -- 63,927 -- 63,927 ------------ --------- ----------- ------------ Total Investments in Securities $ 29,924,542 $ 63,927 $ -- $ 29,988,469 ============ ========= =========== ============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 20 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL MID CAP ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 24.4% Utilities 19.1% Financials 18.6% Industrials 13.3% Consumer Services 10.8% Consumer Goods 8.0% Basic Materials 5.8% Telecommunications + Percentages based on total investments. SHARES VALUE -------- ------------ COMMON STOCK -- 82.9% BRAZIL-- 82.9% Basic Materials -- 3.0% Fibria Celulose ADR (*) ...................... 49,258 $ 884,674 ------------ Consumer Goods -- 10.5% Cosan, Cl A .................................. 27,430 360,705 Cosan Industria e Comercio ................... 22,080 351,764 Hypermarcas (*) .............................. 59,200 981,196 Marfrig Alimentos ............................ 30,400 271,832 Natura Cosmeticos ............................ 38,400 1,100,767 ------------ 3,066,264 ------------ Consumer Services -- 11.1% Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR ................................. 26,713 1,058,102 Gol Linhas Aereas Inteligentes ADR ........... 22,390 394,960 Lojas Renner ................................. 27,200 1,082,289 NET Servicos de Comunicacao ADR (*) .......... 20,369 273,148 TAM ADR ...................................... 17,344 427,876 ------------ 3,236,375 ------------ Financials -- 13.4% BR Malls Participacoes ....................... 65,280 614,912 Cyrela Brazil Realty Empreendimentos e Participacoes ............................ 64,000 882,577 MRV Engenharia e Participacoes ............... 70,400 687,224 Multiplan Empreendimentos Imobiliarios ....... 15,360 357,772 PDG Realty Empreendimentos e Participacoes ... 65,600 814,486 Porto Seguro ................................. 37,600 550,228 ------------ 3,907,199 ------------ Industrials -- 18.5% All America Latina Logistica ................. 144,000 1,365,766 Cia de Concessoes Rodoviarias ................ 35,200 955,055 Duratex ...................................... 51,200 591,907 Empresa Brasileira de Aeronautica ADR ........ 36,376 1,049,448 LLX Logistica (*) ............................ 102,400 562,916 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 21 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL MID CAP ETF - -------------------------------------------------------------------------------- SHARES VALUE -------- ------------ COMMON STOCK -- continued Industrials -- continued Weg ........................................... 68,800 $ 900,885 ------------ 5,425,977 ------------ Telecommunications -- 4.8% Telegraph Norte Leste Participacoes ADR ....... 60,804 932,733 Tim Participacoes ADR ......................... 15,028 484,803 ------------ 1,417,536 ------------ Utilities -- 21.6% Cia de Saneamento Basico do Estado de Sao Paulo ADR ............................... 13,317 612,049 Cia Energetica de Minas Gerais ADR ............ 87,421 1,559,591 Cia Paranaense de Energia ADR ................. 23,443 544,581 CPFL Energia ADR .............................. 20,354 1,462,028 EDP - Energias do Brasil ...................... 12,480 271,845 Tractebel Energia ............................. 42,880 647,474 Ultrapar Participacoes ADR .................... 19,484 1,208,982 ------------ 6,306,550 ------------ TOTAL BRAZIL .................................... 24,244,575 ------------ TOTAL COMMON STOCK (Cost $21,986,842) ............................ 24,244,575 ------------ PREFERRED STOCK -- 16.8% BRAZIL-- 16.8% Basic Materials -- 4.9% Metalurgica Gerdau, Cl A ...................... 60,800 933,481 Suzano Papel e Celulose ....................... 54,400 513,068 ------------ 1,446,549 ------------ Consumer Services -- 2.4% Lojas Americanas .............................. 64,000 686,658 ------------ Financials -- 5.8% Banco do Estado do Rio Grande do Sul .......... 36,000 394,951 Bradespar ..................................... 51,200 1,298,573 ------------ 1,693,524 ------------ Telecommunications -- 0.8% Telemar Norte Leste (*) ....................... 8,800 250,183 ------------ Utilities -- 2.9% Cia Energetica de Sao Paulo ................... 31,200 489,513 Eletropaulo Metropolitana Eletricidade de Sao Paulo ................................ 20,160 350,784 ------------ 840,297 ------------ TOTAL BRAZIL .................................... 4,917,211 ------------ TOTAL PREFERRED STOCK (Cost $4,582,331) ............................. 4,917,211 ------------ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 22 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL MID CAP ETF - -------------------------------------------------------------------------------- FACE AMOUNT VALUE ----------- ------------ CORPORATE OBLIGATION -- 0.3% 0Marfrig Alimentos, Convertible (1,2) 1.04%, 07/15/15 (Cost $70,659) ........................ $ 12 $ 71,750 ------------ TOTAL INVESTMENTS -- 100.0% (Cost $26,639,832) ......................... $ 29,233,536 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $29,242,121. * Non-income producing security. (1) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such security as of October 31 2010, was $71,750 and represents 0.3% of net assets. (2) Securities considered illiquid. The total value of such securities as of October 31, 2010 was $71,750 and represented 0.3% of net assets ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ --------- --------- ------------ Common Stock $ 24,244,575 $ -- $ -- $ 24,244,575 Preferred Stock 4,917,211 -- -- 4,917,211 Corporate Obligation -- -- 71,750 71,750 ------------ --------- --------- ------------ Total Investments in Securities $ 29,161,786 $ -- $ 71,750 $ 29,233,536 ============ ========= ========= ============
Investments in Corporate Obligations ------------------------ Beginning balance as of June 21, 2010 $ -- Accrued discounts/premiums -- Realized gain/(loss) -- Change in unrealized appreciation/(depreciation) 1,091 Net purchases 70,659 Net sales -- Net transfer in Level 3 -- Net transfer out of Level 3 -- ---------- Ending balance as of October 31, 2010 $ 71,750 ==========
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 23 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL FINANCIALS ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTING (UNAUDITED)+: [BAR GRAPH OMITTED] 99.7% Financials 0.3% Short-Term Investments + Percentages based on total investments. SHARES VALUE ------ ---------- COMMON STOCK -- 93.7% BRAZIL-- 93.7% Financials -- 93.7% Banco Bradesco ADR ................................. 39,600 $ 823,680 Banco da Amazonia .................................. 453,600 157,853 Banco do Brasil .................................... 40,950 795,136 Banco Santander Brasil ADR ......................... 26,910 387,504 BM&F Bovespa ....................................... 41,670 348,520 BR Malls Participacoes ............................. 43,560 410,318 Brasil Brokers Participacoes ....................... 25,200 139,571 Brookfield Incorporacoes ........................... 30,600 165,508 CETIP - Balcao Organizado de Ativos e Derivativos .. 30,825 328,177 Cielo .............................................. 32,805 283,469 Cyrela Brazil Realty Empreendimentos e Participacoes 25,560 352,479 Even Construtora e Incorporadora ................... 18,450 103,818 Iguatemi Empresa de Shopping Centers ............... 5,625 131,949 Itau Unibanco Holding ADR .......................... 31,680 778,061 MRV Engenharia e Participacoes ..................... 42,750 417,313 Multiplan Empreendimentos Imobiliarios ............. 10,530 245,269 PDG Realty Empreendimentos e Participacoes ......... 32,940 408,981 Porto Seguro ....................................... 25,650 375,355 Redecard ........................................... 18,360 238,136 Rossi Residencial .................................. 24,300 238,930 Sul America ........................................ 17,280 203,744 ---------- TOTAL BRAZIL ......................................... 7,333,771 ---------- TOTAL COMMON STOCK (Cost $6,873,882) .................................. 7,333,771 ---------- PREFERRED STOCK -- 5.9% BRAZIL-- 5.9% Financials -- 5.9% Banco ABC Brasil ................................... 7,380 68,124 Banco do Estado do Rio Grande do Sul ............... 24,570 269,554 Banco Industrial e Comercial ....................... 9,360 87,008 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 24 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL FINANCIALS ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE ----------- ---------- PREFERRED STOCK -- continued Financials -- continued Banco Panamericano ............................ 7,470 $ 33,442 ----------- TOTAL BRAZIL .................................... 458,128 ----------- TOTAL PREFERRED STOCK (Cost $422,607) ............................... 458,128 ----------- TIME DEPOSIT -- 0.3% Brown Brothers, 0.031% (Cost $21,192) .............................. $ 21,192 21,192 ----------- TOTAL INVESTMENTS -- 99.9% (Cost $7,317,681) ............................. $ 7,813,091 =========== PERCENTAGES ARE BASED ON NET ASSETS OF $7,829,337. ADR -- AMERICAN DEPOSITARY RECEIPT The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ----------- --------- ------- ----------- Common Stock $ 7,333,771 $ -- $ -- $ 7,333,771 Preferred Stock 458,128 -- -- 458,128 Time Deposit -- 21,192 -- 21,192 ----------- --------- ------- ----------- Total Investments in Securities $ 7,791,899 $ 21,192 $ -- $ 7,813,091 =========== ========= ======= ===========
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 25 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL CONSUMER ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 52.8% Consumer Goods 47.2% Consumer Services + Percentages based on total investments. SHARES VALUE -------- ------------ COMMON STOCK -- 87.3% BRAZIL-- 87.3% Consumer Goods -- 46.1% BRF - Brasil Foods ADR .......................... 69,757 $ 1,020,545 Cia Hering ...................................... 28,660 1,415,588 Cosan, Cl A ..................................... 77,447 1,018,428 Cosan Industria e Comercio ...................... 60,150 958,270 Gafisa ADR ...................................... 74,922 1,257,940 Hypermarcas (*) ................................. 61,400 1,017,660 JBS ............................................. 207,800 801,588 M Dias Branco ................................... 11,515 292,052 Marfrig Alimentos ............................... 82,650 739,043 Natura Cosmeticos ............................... 40,075 1,148,782 Sao Martinho .................................... 24,400 293,451 SLC Agricola .................................... 28,775 356,420 Souza Cruz ...................................... 22,580 1,184,671 ------------ 11,504,438 ------------ Consumer Services -- 41.2% Anhanguera Educacional Participacoes ............ 57,575 1,127,457 B2W Cia Global Do Varejo ........................ 29,040 529,106 Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR ............................. 28,454 1,127,063 Drogasil ........................................ 18,655 481,835 Gol Linhas Aereas Inteligentes ADR .............. 62,790 1,107,616 Localiza Rent a Car ............................. 60,100 997,885 Lojas Renner .................................... 34,810 1,385,091 Marisa Lojas .................................... 29,280 473,205 Multiplus ....................................... 80,200 1,348,177 NET Servicos de Comunicacao ADR (*) ............. 36,950 495,499 TAM ADR ......................................... 48,609 1,199,184 ------------ 10,272,118 ------------ TOTAL BRAZIL ...................................... 21,776,556 ------------ TOTAL COMMON STOCK (Cost $19,904,813) .............................. 21,776,556 ------------ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 26 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X BRAZIL CONSUMER ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE ----------- ----------- PREFERRED STOCK -- 12.7% BRAZIL-- 12.7% Consumer Goods -- 6.6% Cia de Bebidas das Americas ADR ................. 9,387 $ 1,307,046 Sao Paulo Alpargatas ............................ 55,050 339,314 ----------- 1,646,360 ----------- Consumer Services -- 6.1% Lojas Americanas ................................ 122,650 1,315,916 Saraiva Livreiros Editores ...................... 9,760 212,654 ----------- 1,528,570 ----------- TOTAL BRAZIL ...................................... 3,174,930 ----------- TOTAL PREFERRED STOCK (Cost $2,736,528) ............................... 3,174,930 ----------- CORPORATE OBLIGATION -- 0.2% Marfrig Alimentos, Convertible (1,2) 1.04%, 07/15/15 (Cost $35,152) ............................. $ 6 35,852 ----------- TOTAL INVESTMENTS -- 100.2% (Cost $22,676,493) .............................. $24,987,338 =========== PERCENTAGES ARE BASED ON NET ASSETS OF $24,934,269. * Non-income producing security. (1) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such security as of October 31 2010 was $35,852 and represents 0.2% of net assets. (2) Securities considered illiquid. The total value of such securities as of October 31, 2010 was $35,852 and represented 0.2% of Net Assets ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ ---------- --------- ------------ Common Stock $ 21,776,556 $ -- $ -- $ 21,776,556 Preferred Stock 3,174,930 -- -- 3,174,930 Corporate Obligation -- -- 35,852 35,852 ------------ ---------- --------- ------------ Total Investments in Securities $ 24,951,486 $ -- $ 35,852 $ 24,987,338 ============ ========== ========= ============
Investments in Corporate Obligations ------------------------ Beginning balance as of July 7, 2010 $ -- Accrued discounts/premiums -- Realized gain/(loss) -- Change in unrealized appreciation/(depreciation) 700 Net purchases 35,152 Net sales -- Net transfer in and/or out of Level 3 -- --------- Ending balance as of October 31, 2010 $ 35,852 =========
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 27 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X /INTERBOLSA FTSE COLOMBIA 20 ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 40.0% Financials 33.1% Oil & Gas 9.0% Industrials 7.8% Utilities 4.6% Consumer Goods 4.4% Consumer Services 0.6% Short-Term Investments 0.5% Telecommunications + Percentages based on total investments. SHARES VALUE --------- ------------ COMMON STOCK -- 99.9% COLOMBIA-- 99.9% Consumer Goods -- 4.6% Grupo Nacional de Chocolates .................. 582,413 $ 8,596,737 Textiles Fabricato Tejicondor (*) ............. 33,549,557 476,869 ------------ 9,073,606 ------------ Consumer Services -- 4.4% Almacenes Exito ............................... 661,847 8,683,757 ------------ Financials -- 40.2% BanColombia ADR ............................... 580,699 39,168,147 Bolsa de Valores de Colombia .................. 102,183,484 2,524,980 Cia Colombiana de Inversiones ................. 2,363,190 8,449,192 Financiera Colombiana ......................... 454,807 8,448,689 Grupo Aval Acciones y Valores ................. 11,828,195 9,634,819 Grupo de Inversiones Suramericana ............. 407,813 9,140,790 Helm Bank ..................................... 3,130,916 818,160 Interbolsa .................................... 559,122 803,898 ------------ 78,988,675 ------------ Industrials -- 9.1% Cementos Argos ................................ 1,235,448 8,577,624 Inversiones Argos ............................. 716,197 8,613,784 Tableros y Maderas de Caldas .................. 105,578,704 573,722 ------------ 17,765,130 ------------ Oil & Gas -- 33.3% Ecopetrol ADR ................................. 869,494 41,509,644 Pacific Rubiales Energy CAD(*) ................ 547,729 17,476,366 Pacific Rubiales Energy COP(*) ................ 30,089 954,058 Pacific Rubiales Energy USD(*) ................ 44,894 1,427,629 Sociedad de Inversiones en Energia ............ 503,012 4,014,856 ------------ 65,382,553 ------------ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 28 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X /INTERBOLSA FTSE COLOMBIA 20 ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE ----------- ------------- COMMON STOCK -- continued Telecommunications -- 0.5% Empresa de Telecomunicaciones de Bogota (*) .... 2,317,881 $ 937,695 ------------- Utilities -- 7.8% Interconexion Electrica ........................ 1,139,101 9,091,884 Isagen ......................................... 4,473,808 6,297,866 ------------- 15,389,750 ------------- TOTAL COLOMBIA ................................... 196,221,166 ------------- TOTAL COMMON STOCK (Cost $174,289,129) ............................ 196,221,166 ------------- TIME DEPOSIT -- 0.6% Brown Brothers, 0.031% (Cost $1,101,675) ............................ $ 1,101,675 1,101,675 ------------- TOTAL INVESTMENTS -- 100.5% (Cost $175,390,804) ............................ $ 197,322,841 ============= PERCENTAGES ARE BASED ON NET ASSETS OF $196,354,919. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CAD -- CANADIAN DOLLAR COP -- COLOMBIAN PESO USD -- UNITED STATES DOLLAR The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------- ------------ ----------- ------------- Common Stock $ 196,221,166 $ -- $ -- $ 196,221,166 Time Deposit -- 1,101,675 -- 1,101,675 ------------- ------------ ----------- ------------- Total Investments in Securities $ 196,221,166 $ 1,101,675 $ -- $ 197,322,841 ============= ============ =========== =============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 29 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X FTSE NORDIC 30 ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 29.0% Financials 16.1% Industrials 12.6% Technology 9.9% Health Care 8.2% Oil & Gas 6.3% Consumer Goods 6.0% Telecommunications 5.3% Basic Materials 3.9% Consumer Services 2.4% Utilities 0.3% Short-Term Investments + Percentages based on total investments. SHARES VALUE ------ ----------- COMMON STOCK -- 100.0% DENMARK-- 20.0% Consumer Goods -- 2.6% Carlsberg, Cl B ................................... 3,000 $ 328,059 ----------- Financials -- 3.6% Danske Bank ....................................... 17,200 457,378 ----------- Health Care -- 9.9% Novo Nordisk ADR .................................. 11,939 1,251,207 ----------- Industrials -- 2.7% A P Moller - Maersk, Cl B ......................... 40 347,093 ----------- Oil & Gas -- 1.2% Vestas Wind Systems (*) ........................... 4,880 155,721 ----------- TOTAL DENMARK ....................................... 2,539,458 ----------- FINLAND-- 15.1% Basic Materials -- 1.7% UPM-Kymmene ....................................... 12,850 213,690 ----------- Financials -- 3.0% Sampo, Cl A ....................................... 13,618 381,478 ----------- Industrials -- 1.7% Kone, Cl B ........................................ 3,940 211,091 ----------- Technology -- 6.3% Nokia ADR ......................................... 74,850 799,398 ----------- Utilities -- 2.4% Fortum ............................................ 10,850 307,563 ----------- TOTAL FINLAND ....................................... 1,913,220 ----------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 30 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X FTSE NORDIC 30 ETF - -------------------------------------------------------------------------------- SHARE VALUE ----- ----------- COMMON STOCK -- continued NORWAY-- 18.3% Basic Materials -- 3.7% Norsk Hydro ...................................... 29,559 $ 180,273 Yara International ............................... 5,500 288,100 ----------- 468,373 ----------- Consumer Goods -- 1.9% Orkla ............................................ 24,700 238,183 ----------- Financials -- 3.2% DnB .............................................. 29,575 404,400 ----------- Oil & Gas -- 7.0% Seadrill ......................................... 7,517 226,792 Statoil ADR ...................................... 30,248 660,314 ----------- 887,106 ----------- Telecommunications -- 2.5% Telenor .......................................... 19,800 318,051 ----------- TOTAL NORWAY ....................................... 2,316,113 ----------- SWEDEN-- 46.6% Consumer Goods -- 1.8% Svenska Cellulosa, Cl B .......................... 14,900 230,528 ----------- Consumer Services -- 3.9% Hennes & Mauritz, Cl B ........................... 14,172 498,214 ----------- Financials -- 19.2% Investor, Cl B ................................... 11,400 233,411 Nordea Bank ...................................... 98,000 1,076,432 Skandinaviska Enskilda Banken, Cl A .............. 50,200 387,965 Svenska Handelsbanken, Cl A ...................... 15,300 499,025 Swedbank * ....................................... 16,977 236,422 ----------- 2,433,255 ----------- Industrials -- 11.8% Atlas Copco, Cl A ................................ 15,900 331,482 Sandvik .......................................... 29,400 442,135 SKF, Cl B ........................................ 10,300 265,341 Volvo, Cl B * .................................... 34,200 461,969 ----------- 1,500,927 ----------- Technology -- 6.3% Ericsson ADR ..................................... 73,100 803,369 ----------- Telecommunications -- 3.6% TeliaSonera ...................................... 54,000 449,590 ----------- TOTAL SWEDEN ....................................... 5,915,883 ----------- TOTAL COMMON STOCK (Cost $11,126,807) ............................... 12,684,674 ----------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 31 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X FTSE NORDIC 30 ETF - -------------------------------------------------------------------------------- FACE AMOUNT VALUE ----------- ------------ TIME DEPOSIT -- 0.3% Brown Brothers, 0.031% (Cost $34,696) .............................. $ 34,696 $ 34,696 ------------ TOTAL INVESTMENTS -- 100.3% (Cost $11,161,503) ............................ $ 12,719,370 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $12,683,474. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ --------- ----------- -------------- Common Stock $ 12,684,674 $ -- $ -- $ 12,684,674 Time Deposit -- 34,696 -- 34,696 ------------ --------- ----------- -------------- Total Investments in Securities $ 12,684,674 $ 34,696 $ -- $ 12,719,370 ============ ========= =========== ==============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 32 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA CONSUMER ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 50.5% Consumer Goods 43.0% Consumer Services 6.5% Health Care 0.0% Short-Term Investments + Percentages based on total investments. SHARES VALUE ------ ----------- COMMON STOCK -- 100.0% CHINA-- 78.9% Consumer Goods -- 39.0% 361 Degrees International ..................... 1,896,200 $ 1,837,147 Anta Sports Products .......................... 2,318,000 4,784,684 AviChina Industry & Technology, Cl H (*) ...... 5,178,000 2,798,955 BaWang International Group Holding ............ 2,646,000 1,112,826 China Huiyuan Juice Group ..................... 1,376,500 923,420 China Yurun Food Group ........................ 2,320,687 9,026,591 Dongfeng Motor Group, Cl H .................... 4,935,900 10,697,825 Great Wall Motor, Cl H ........................ 1,255,600 3,944,302 Li Ning ....................................... 1,839,719 5,245,219 Shenzhou International Group Holdings ......... 1,135,200 1,318,059 Tingyi Cayman Islands Holding ................. 2,890,920 7,869,341 Tsingtao Brewery, Cl H ........................ 1,134,947 6,069,040 Uni-President China Holdings .................. 3,061,600 2,180,256 Want Want China Holdings ...................... 9,478,100 8,742,732 Zhongpin (*) .................................. 77,106 1,559,083 ----------- 68,109,480 ----------- Consumer Services -- 33.4% Air China, Cl H ............................... 6,279,000 8,440,692 AirMedia Group ADR (*) ........................ 206,400 1,426,224 Ajisen China Holdings ......................... 1,221,200 2,196,188 China Southern Airlines, Cl H (*) ............. 4,281,522 2,910,909 Focus Media Holding ADR (*) ................... 190,900 4,724,775 Golden Eagle Retail Group ..................... 1,909,200 5,073,860 Home Inns & Hotels Management ADR (*) ......... 80,870 4,137,309 Intime Department Store Group ................. 3,113,200 4,771,373 New Oriental Education & Technology Group ADR (*) ..................................... 74,120 7,958,264 Parkson Retail Group .......................... 4,146,000 7,498,893 PCD Stores .................................... 7,534,444 2,430,027 Peak Sport Products ........................... 2,631,600 2,098,110 Shanghai Jin Jiang International Hotels Group, Cl H ........................................ 3,887,200 972,878 VisionChina Media ADR (*) ..................... 146,050 609,028 Wumart Stores, Cl H ........................... 1,341,600 3,150,027 ----------- 58,398,557 ----------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 33 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA CONSUMER ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE ---------- ------------- COMMON STOCK -- continued Health Care -- 6.5% Shandong Weigao Group Medical Polymer, Cl H .. 1,996,060 $ 5,291,823 Sinopharm Group, Cl H ........................ 1,548,000 6,081,043 ------------- 11,372,866 ------------- TOTAL CHINA ..................................... 137,880,903 ------------- HONG KONG-- 21.1% Consumer Goods -- 11.6% Bosideng International Holdings .............. 6,725,200 3,401,035 China Agri-Industries Holdings ............... 4,180,161 6,083,058 China Foods .................................. 2,304,800 1,914,869 Guangzhou Automobile Group, Cl H ............. 5,829,514 8,874,302 ------------- 20,273,264 ------------- Consumer Services -- 9.5% China Dongxiang Group ........................ 8,100,764 4,535,609 China Resources Enterprise ................... 2,045,643 8,642,930 China Travel International Inv HK * .......... 8,669,400 2,069,096 New World Department Store China ............. 1,494,900 1,388,559 ------------- 16,636,194 ------------- TOTAL HONG KONG ................................. 36,909,458 ------------- TOTAL COMMON STOCK (Cost $153,554,971) .......................... 174,790,361 ------------- TIME DEPOSIT -- 0.0% Brown Brothers, 0.031% (Cost $50,636) ............................. $ 50,636 50,636 ------------- TOTAL INVESTMENTS -- 100.0% (Cost $153,605,607) .......................... $ 174,840,997 ============= PERCENTAGES ARE BASED ON NET ASSETS OF $174,875,063. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
INVESTMENTS IN SECURITIES LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------- -------- --------- ------------- Common Stock $ 174,790,361 $ -- $ -- $ 174,790,361 Time Deposit -- 50,636 -- 50,636 ------------- -------- --------- ------------- Total Investments in Securities $ 174,790,361 $ 50,636 $ -- $ 174,840,997 ============= ======== ========= =============
There have been no significant transfers between Level 1 & Level 2. The accompanying notes are an integral part of the financial statements. 34 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA ENERGY ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 83.8% Energy 16.0% Utilities 0.2% Short-Term Investments + Percentages based on total investments. SHARES VALUE ------ ----------- COMMON STOCK -- 100.0% CHINA-- 69.2% Energy -- 60.6% China Coal Energy, Cl H ......................... 135,000 $ 233,377 China Longyuan Power Group, Cl H (*) ............ 144,655 150,601 China Oilfield Services, Cl H ................... 107,043 173,723 China Petroleum & Chemical, Cl H ................ 557,400 525,659 China Shenhua Energy, Cl H ...................... 96,800 430,838 Honghua Group * ................................. 113,400 17,117 JA Solar Holdings ADR (*) ....................... 10,750 89,763 LDK Solar ADR (*) ............................... 8,475 96,361 PetroChina, Cl H ................................ 386,000 471,084 Renesola ADR (*) ................................ 4,775 57,156 Solarfun Power Holdings ADR (*) ................. 3,724 38,022 Suntech Power Holdings ADR (*) .................. 8,140 69,109 Tianneng Power International .................... 69,000 30,978 Trina Solar ADR (*) ............................. 6,040 161,630 Yanzhou Coal Mining, Cl H ....................... 84,204 242,247 Yingli Green Energy Holding ADR (*) ............. 6,225 72,583 ----------- 2,860,248 ----------- Utilities -- 8.6% Datang International Power Generation, Cl H ..... 217,069 87,372 ENN Energy Holdings ............................. 57,712 155,442 Huadian Power International, Cl H ............... 149,400 34,308 Huaneng Power International, Cl H ............... 224,123 128,088 ----------- 405,210 ----------- TOTAL CHINA ....................................... 3,265,458 ----------- HONG KONG-- 30.8% Energy -- 23.3% Beijing Enterprises Holdings .................... 31,800 217,637 CNOOC ........................................... 263,400 545,734 Fushan International Energy Group ............... 210,609 141,286 Kunlun Energy ................................... 155,341 197,598 ----------- 1,102,255 ----------- Utilities -- 7.5% China Power International Development ........... 183,600 41,687 China Resources Power Holdings .................. 92,400 177,853 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 35 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA ENERGY ETF - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT VALUE --------------- ------------ COMMON STOCK -- continued Utilities -- continued GCL Poly Energy Holdings * ................... 418,657 $ 132,866 ----------- 352,406 ----------- TOTAL HONG KONG ................................ 1,454,661 ----------- TOTAL COMMON STOCK (Cost $4,505,984) ............................ 4,720,119 ----------- TIME DEPOSIT -- 0.2% Brown Brothers, 0.031% (Cost $7,123) .............................. $ 7,123 7,123 ----------- TOTAL INVESTMENTS -- 100.2% (Cost $4,513,107) ............................ $ 4,727,242 =========== PERCENTAGES ARE BASED ON NET ASSETS OF $4,717,314. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ----------- ---------- --------- ----------- Common Stock $ 4,720,119 $ -- $ -- $ 4,720,119 Time Deposit -- 7,123 -- 7,123 ----------- ---------- --------- ----------- Total Investments in Securities $ 4,720,119 $ 7,123 $ -- $ 4,727,242 =========== ========== ========= ===========
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 36 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA FINANCIALS ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 100.0% Financials + Percentages based on total investments. SHARES VALUE -------- ------------ COMMON STOCK -- 99.8% CHINA-- 85.1% Financials -- 85.1% Agile Property Holdings ....................... 771,900 $ 1,015,737 Bank of China, Cl H ........................... 12,564,153 7,520,921 Bank of Communications, Cl H .................. 2,825,427 3,087,361 China Citic Bank, Cl H ........................ 4,590,079 3,333,868 China Construction Bank, Cl H ................. 7,946,439 7,575,945 China Life Insurance, Cl H .................... 1,379,431 6,041,707 China Merchants Bank, Cl H .................... 1,243,433 3,529,108 China Minsheng Banking, Cl H .................. 594,190 552,689 China Pacific Insurance Group, Cl H ........... 720,792 2,989,584 CNinsure ADR .................................. 25,690 660,233 Country Garden Holdings ....................... 1,972,057 697,092 E-House China Holdings ADR .................... 26,050 435,295 Evergrande Real Estate Group .................. 2,610,558 1,108,024 Greentown China Holdings ...................... 333,692 386,582 Guangzhou R&F Properties ...................... 538,355 768,146 Industrial & Commercial Bank of China, Cl H ... 8,816,833 7,097,690 Longfor Properties ............................ 706,223 840,937 PICC Property & Casualty, Cl H (*) ............ 1,916,611 2,828,654 Ping An Insurance Group of China, Cl H ........ 337,866 3,637,397 Renhe Commercial Holdings ..................... 4,988,163 952,406 Shimao Property Holdings ...................... 826,892 1,367,592 Shui On Land .................................. 1,455,157 730,263 Sino-Ocean Land Holdings ...................... 2,390,350 1,646,731 Soho China .................................... 1,050,674 893,250 ------------ TOTAL CHINA ..................................... 59,697,212 ------------ HONG KONG-- 14.7% Financials -- 14.7% China Everbright .............................. 400,722 1,041,689 China Overseas Land & Investment .............. 1,523,310 3,203,286 China Resources Land .......................... 1,046,429 2,062,780 China Taiping Insurance Holdings (*) .......... 427,730 1,572,658 Franshion Properties China .................... 1,484,979 480,855 Hopson Development Holdings ................... 342,496 383,085 KWG Property Holding .......................... 667,262 528,548 Poly Hong Kong Investments .................... 639,659 658,524 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 37 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA FINANCIALS ETF - -------------------------------------------------------------------------------- SHARES VALUE -------- ------------ COMMON STOCK -- continued Financials -- continued Shenzhen Investment ............................ 1,067,862 $ 382,983 ------------ TOTAL HONG KONG .................................. 10,314,408 ------------ TOTAL COMMON STOCK (Cost $67,004,786) ............................. 70,011,620 ------------ TOTAL INVESTMENTS -- 99.8% (Cost $67,004,786) ............................. $ 70,011,620 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $70,158,407. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ --------- --------- ------------- Common Stock $ 70,011,620 $ -- $ -- $ 70,011,620 ------------ --------- --------- ------------- Total Investments in Securities $ 70,011,620 $ -- $ -- $ 70,011,620 ============ ========= ========= =============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 38 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA INDUSTRIALS ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 100.0% Industrials + Percentages based on total investments. SHARES VALUE -------- ------------ COMMON STOCK -- 100.0% CHINA-- 83.6% Industrials -- 83.6% Anhui Conch Cement, Cl H ........................ 161,200 $ 675,878 A-Power Energy Generation Systems (*) ........... 8,780 62,689 Asia Cement China Holdings ...................... 142,500 65,262 BBMG ............................................ 302,410 429,930 Byd, Cl H ....................................... 60,400 368,179 China Communications Construction, Cl H ......... 558,592 533,990 China COSCO Holdings, Cl H ...................... 406,356 473,909 China National Building Material, Cl H .......... 350,906 855,603 China National Materials ........................ 312,953 278,983 China Railway Construction, Cl H ................ 405,000 506,289 China Railway Group, Cl H ....................... 783,100 631,418 China Shanshui Cement Group ..................... 512,467 364,943 China Shipping Container Lines, Cl H (*) ........ 980,870 398,604 China Shipping Development, Cl H ................ 350,075 509,437 CSR Corp ........................................ 497,481 506,376 Dongfang Electric, Cl H ......................... 86,104 418,779 Duoyuan Global Water ADR (*) .................... 6,340 79,313 Guangshen Railway, Cl H ......................... 389,154 157,140 Harbin Electric (*) ............................. 5,140 110,818 Harbin Power Equipment, Cl H .................... 166,895 224,783 Metallurgical Corp of China, Cl H (*) ........... 807,000 390,413 Sany Heavy Equipment International Holdings ..... 161,792 231,686 Shanghai Electric Group, Cl H ................... 759,418 508,473 Sinotrans, Cl H ................................. 415,609 112,060 Sinotruk Hong Kong .............................. 178,806 205,994 Weichai Power, Cl H ............................. 49,545 650,680 Yangzijiang Shipbuilding Holdings ............... 447,376 646,417 Zhuzhou CSR Times Electric, Cl H ................ 114,447 349,185 ------------ TOTAL CHINA ...................................... 10,747,231 ------------ HONG KONG-- 16.4% Industrials -- 16.4% Beijing Capital International Airport, Cl H ..... 397,811 219,655 China High Speed Transmission Equipment Group ... 210,276 429,699 China Resources Cement Holdings (*) ............. 466,362 329,703 Citic Resources Holdings (*) .................... 566,208 144,631 Shanghai Industrial Holdings .................... 121,631 560,186 Shenzhen International Holdings ................. 1,855,046 145,984 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 39 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA INDUSTRIALS ETF - -------------------------------------------------------------------------------- SHARES VALUE -------- ------------- COMMON STOCK -- continued Industrials -- continued Sinotrans Shipping .............................. 347,450 $ 140,299 Tianjin Development Holdings * .................. 168,000 129,608 ------------ TOTAL HONG KONG ................................... 2,099,765 ------------ TOTAL COMMON STOCK (Cost $12,307,366) .............................. 12,846,996 ------------ TOTAL INVESTMENTS -- 100.0% (Cost $12,307,366) .............................. $ 12,846,996 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $12,850,150. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ ---------- --------- ------------ Common Stock $ 12,846,996 $ -- $ -- $ 12,846,996 ------------ ---------- --------- ------------ Total Investments in Securities $ 12,846,996 $ -- $ -- $ 12,846,996 ============ ========== ========= ============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 40 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA TECHNOLOGY ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 86.1% Techhnology 13.9% Telecommunications + Percentages based on total investments. SHARES VALUE -------- ------------ COMMON STOCK -- 100.1% CHINA-- 91.4% Technology -- 81.5% AAC Acoustic Technologies Holdings .............. 79,000 $ 190,381 Alibaba.com (*) ................................. 96,567 188,614 AsiaInfo Holdings (*) ........................... 4,350 96,657 Baidu ADR (*) ................................... 2,670 293,727 BYD Electronic International .................... 94,000 49,599 China Communications Services, Cl H ............. 223,000 130,036 Ctrip.com International ADR (*) ................. 5,070 263,995 Foxconn International Holdings (*) .............. 182,000 134,304 Giant Interactive Group ADR ..................... 23,700 168,270 Kingdee International Software Group ............ 173,000 91,283 Kingsoft ........................................ 58,000 29,332 Lenovo Group .................................... 289,500 187,487 Netease.com ADR (*) ............................. 5,190 216,942 Perfect World ADR (*) ........................... 4,600 149,040 Semiconductor Manufacturing International (*) ... 1,925,000 161,422 Shanda Interactive Entertainment ADR (*) ........ 4,100 165,681 Sina (*) ........................................ 4,460 251,098 Sohu.com (*) .................................... 3,340 248,830 Tencent Holdings ................................ 9,450 216,396 VanceInfo Technologies ADR (*) .................. 3,241 117,875 ZTE, Cl H ....................................... 41,400 153,820 ------------ 3,504,789 ------------ Telecommunications -- 9.9% China Telecom, Cl H ............................. 363,000 187,789 China Unicom Hong Kong .......................... 149,904 213,116 KongZhong ADR (*) ............................... 3,480 25,752 ------------ 426,657 ------------ TOTAL CHINA ....................................... 3,931,446 ------------ HONG KONG-- 8.7% Technology -- 4.7% Longtop Financial Technologies ADR (*) .......... 5,485 199,325 ------------ Telecommunications -- 4.0% China Mobile .................................... 17,000 173,149 ------------ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 41 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA TECHNOLOGY ETF - -------------------------------------------------------------------------------- VALUE ----------- COMMON STOCK -- continued TOTAL HONG KONG ................................... $ 372,474 ----------- TOTAL COMMON STOCK (Cost $3,810,056) ............................... 4,303,920 ----------- TOTAL INVESTMENTS -- 100.1% (Cost $3,810,056) ............................... $ 4,303,920 =========== PERCENTAGES ARE BASED ON NET ASSETS OF $4,301,280. * Non-income producing security. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ----------- --------- -------- ------------ Common Stock $ 4,303,920 $ -- $ -- $ 4,303,920 ----------- --------- -------- ------------ Total Investments in Securities $ 4,303,920 $ -- $ -- $ 4,303,920 =========== ========= ======== ============
There have been no significant transfers between Level 1 & Level 2. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 42 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA MATERIALS ETF - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS (UNAUDITED)+: [BAR GRAPH OMITTED] 100.0% Basic Materials + Percentages based on total investments. SHARES VALUE -------- ------------ COMMON STOCK -- 100.1% CHINA-- 78.2% Basic Materials -- 78.2% Aluminum Corp of China, Cl H * .................. 2,346,300 $ 2,227,826 Angang Steel, Cl H .............................. 1,460,700 2,295,240 China Agritech (*) .............................. 44,240 568,484 China BlueChemical .............................. 4,053,285 3,205,439 China Green Agriculture (*) ..................... 67,150 493,552 China Molybdenum, Cl H .......................... 2,891,314 2,775,160 China Rare Earth Holdings * ..................... 3,790,945 2,063,858 China Vanadium Titano - Magnetite Mining (*) .... 4,241,900 2,205,390 China XLX Fertiliser ............................ 1,533,679 699,174 Chongqing Iron & Steel, Cl H * .................. 1,990,617 559,840 Dongyue Group ................................... 3,554,334 1,563,624 General Steel Holdings (*) ...................... 59,250 175,973 Gulf Resources (*) .............................. 66,280 556,752 Hunan Non-Ferrous Metal, Cl H * ................. 5,798,600 2,588,327 Jiangxi Copper, Cl H ............................ 1,098,100 3,059,958 Maanshan Iron & Steel, Cl H ..................... 4,495,908 2,575,255 Real Gold Mining (*) ............................ 1,209,005 2,152,420 ShengdaTech (*) ................................. 117,400 743,142 Sinopec Shanghai Petrochemical, Cl H ............ 6,478,000 2,908,306 Sinopec Yizheng Chemical Fibre, Cl H (*) ........ 5,482,817 2,044,191 Xinjiang Xinxin Mining Industry, Cl H ........... 2,606,954 1,762,319 Yongye International (*) ........................ 134,350 1,073,456 Zhaojin Mining Industry ......................... 1,248,200 3,880,798 Zijin Mining Group, Cl H ........................ 3,058,149 2,884,004 ------------ TOTAL CHINA ....................................... 45,062,488 ------------ HONG KONG-- 21.9% Basic Materials -- 21.9% Citic Pacific ................................... 1,106,489 2,947,725 Fufeng Group .................................... 2,859,807 2,542,001 Lumena Resources (1,2) .......................... 2,773,555 1,048,393 Shougang Concord International Enterprises * .... 11,067,900 1,856,216 Sinofert Holdings * ............................. 4,566,200 2,415,231 Yingde Gases (*) ................................ 2,115,900 1,815,251 ------------ 12,624,817 ------------ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 43 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SCHEDULE OF INVESTMENTS OCTOBER 31, 2010 GLOBAL X CHINA MATERIALS ETF - -------------------------------------------------------------------------------- VALUE ------------ COMMON STOCK -- continued TOTAL HONG KONG ................................... $ 12,624,817 ------------ TOTAL COMMON STOCK (Cost $46,775,714) .............................. 57,687,305 ------------ TOTAL INVESTMENTS -- 100.1% (Cost $46,775,714) .............................. $ 57,687,305 ============ PERCENTAGES ARE BASED ON NET ASSETS OF $57,641,714. * Non-income producing security. (1) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such security as of October 31, 2010, was $1,048,393 and represents 1.8% of net assets. (2) Securities considered illiquid. The total value of such securities as of October 31, 2010 was $1,048,393 and represented 1.8% of Net Assets. CL -- CLASS The following is a summary of the inputs used as of October 31, 2010, in valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total ------------ -------- ----------- ------------ Common Stock $ 56,638,912 $ -- $ 1,048,393 $ 57,687,305 ------------ -------- ----------- ------------ Total Investments in Securities $ 56,638,912 $ -- $ 1,048,393 $ 57,687,305 ============ ======== =========== ============
Investments in Securities ------------------------- Beginning balance as of January 12, 2010 $ -- Accrued discounts/premiums -- Realized gain/(loss) -- Change in unrealized appreciation/(depreciation) -- Net purchases -- Net sales -- Net transfer in Level 3 1,048,393 Net transfer out of Level 3 -- ----------- Ending balance as of October 31, 2010 $ 1,048,393 =========== For the period ended October 31, 2010, transfers between Level 1 and Level 3 assets and liabilities totaled $1,048,393. The Level 3 investment presented above was considered a Level 1 investment at the beginning of the reporting period. The reason for the classification change was a temporary trading suspension of the investment's shares, which necessitated a fair value determination by the Fair Value Committee at the end of the reporting period. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 44 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2010 - --------------------------------------------------------------------------------
GLOBAL X SILVER GLOBAL X GLOBAL X COPPER GLOBAL X BRAZIL MINERS ETF LITHIUM ETF MINERS ETF MID CAP ETF -------------- ---------------- --------------- --------------- ASSETS: Cost of Investments $ 142,441,642 $ 71,144,283 $ 29,224,577 $ 26,639,832 Cost of Foreign Currency 14,006 1,625,084 4,255 40,154 ------------- ------------ ------------ ------------ Investments at Value $ 171,738,823 $ 78,343,822 $ 29,988,469 $ 29,233,536 Foreign Currency at Value 14,192 1,639,069 4,365 40,558 Unrealized Appreciation on Forward Foreign Currency Contracts -- 701 35 -- Receivable for Capital Shares Sold 4,040,000 2,964,000 1,641,500 -- Dividend and Interest Receivable 2 -- 3,023 10,760 Receivable for Foreign Currency Contracts -- -- -- -- Reclaim Receivable -- -- 112 -- ------------- ------------ ------------ ------------ TOTAL ASSETS 175,793,017 82,947,592 31,637,504 29,284,854 ------------- ------------ ------------ ------------ LIABILITIES: Payable for Investment Securities Purchased 4,039,316 2,962,443 1,699,089 -- Payable due to Investment Adviser 81,867 39,487 9,838 14,735 Payable due to Custody -- -- -- -- Payable for Foreign Currency Contracts -- -- -- -- Unrealized Depreciation on Forward Foreign Currency Contracts -- 14,104 -- -- Due to Custodian -- 1,614,993 -- 27,998 Overdraft of Foreign Currency -- -- -- -- Other Payables -- -- -- -- ------------- ------------ ------------ ------------ TOTAL LIABILITIES 4,121,183 4,631,027 1,708,927 42,733 ------------- ------------ ------------ ------------ NET ASSETS $ 171,671,834 $ 78,316,565 $ 29,928,577 $ 29,242,121 ============= ============ ============ ============ Proceeds of Foreign Currency $ -- $ -- $ -- $ -- ------------- ------------ ------------ ------------ NET ASSETS CONSIST OF: Paid-in Capital $ 142,150,366 $ 71,062,500 $ 29,170,000 $ 26,555,500 Undistributed Net Investment Income (Accumulated Net Investment Loss) 221,096 (50,941) 4,749 57,041 Accumulated Net Realized Gain (Loss) on Investments and Foreign Currency Translations 3,005 104,884 (10,213) 35,266 Net Unrealized Appreciation on Investments 29,297,181 7,199,539 763,892 2,593,704 Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations 186 583 149 610 ------------- ------------ ------------ ------------ NET ASSETS $ 171,671,834 $ 78,316,565 $ 29,928,577 $ 29,242,121 ============= ============ ============ ============ Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 8,500,000 3,950,000 1,800,000 1,600,000 ============= ============ ============ ============ Net Asset Value, Offering and Redemption Price Per Share $20.20 $19.83 $16.63 $18.28 ============= ============ ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 45 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2010 - --------------------------------------------------------------------------------
GLOBAL GLOBAL X BRAZIL GLOBAL X BRAZIL X/INTERBOLSA FTSE GLOBAL X FTSE GLOBAL X CHINA GLOBAL X CHINA FINANCIALS ETF CONSUMER ETF COLOMBIA 20 ETF NORDIC 30 ETF CONSUMER ETF ENERGY ETF --------------- --------------- ----------------- ------------- -------------- ------------- $ 7,317,681 $ 22,676,493 $ 175,390,804 $ 11,161,503 $ 153,605,607 $ 4,513,107 11,404 5,621 -- -- -- -- ----------- ------------ ------------- ------------ ------------- ----------- $ 7,813,091 $ 24,987,338 $ 197,322,841 $ 12,719,370 $ 174,840,997 $ 4,727,242 11,469 5,789 -- -- -- -- -- -- -- 6 4 1 864,500 997,500 8,253,900 -- 7,048,500 -- 4,473 3,412 91,448 -- 146,189 -- -- -- 1,066,082 -- -- -- -- -- -- 1,854 -- -- ----------- ------------ ------------- ------------ ------------- ----------- 8,693,533 25,994,039 206,734,271 12,721,230 182,035,690 4,727,243 ----------- ------------ ------------- ------------ ------------- ----------- 860,091 996,969 8,253,638 -- 7,042,929 -- 4,105 13,866 90,899 6,584 88,366 2,642 -- -- 52,277 -- -- -- -- -- 1,067,758 -- -- -- -- -- -- 85 -- -- -- 48,935 -- -- -- -- -- -- 895,512 31,087 29,332 7,287 -- -- 19,268 -- -- -- ----------- ------------ ------------- ------------ ------------- ----------- 864,196 1,059,770 10,379,352 37,756 7,160,627 9,929 ----------- ------------ ------------- ------------ ------------- ----------- $ 7,829,337 $ 24,934,269 $ 196,354,919 $ 12,683,474 $ 174,875,063 $ 4,717,314 =========== ============ ============= ============ ============= =========== $ -- $ -- $ 895,512 $ 31,547 $ 29,693 $ 7,283 ----------- ------------ ------------- ------------ ------------- ----------- $ 7,320,000 $ 22,596,500 $ 174,174,500 $ 11,010,644 $ 153,390,500 $ 4,500,000 13,826 3,670 87,541 127,846 513,701 58,057 (3) 23,090 164,905 (13,283) (265,101) (54,875) 495,410 2,310,845 21,932,037 1,557,867 21,235,390 214,135 104 164 (4,064) 400 573 (3) ----------- ------------ ------------- ------------ ------------- ----------- $ 7,829,337 $ 24,934,269 $ 196,354,919 $ 12,683,474 $ 174,875,063 $ 4,717,314 =========== ============ ============= ============ ============= =========== 450,000 1,250,000 4,270,000 660,000 8,600,000 300,000 =========== ============ ============= ============ ============= =========== $17.40 $19.95 $45.98 $19.22 $20.33 $15.72 =========== ============ ============= ============ ============= ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 46 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2010 - --------------------------------------------------------------------------------
GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA FINANCIALS ETF INDUSTRIALS ETF TECHNOLOGY ETF MATERIALS ETF -------------- --------------- -------------- --------------- ASSETS: Cost of Investments $ 67,004,786 $ 12,307,366 $ 3,810,056 $ 46,775,714 Cost of Foreign Currency 201,885 5,810 14,334 87,464 ------------ ------------ ----------- ------------ Investments at Value $ 70,011,620 $ 12,846,996 $ 4,303,920 $ 57,687,305 Foreign Currency at Value 202,013 6,540 14,373 87,549 Receivable for Foreign Currency Contracts 24,493 -- -- -- Dividend and Interest Receivable 14,106 16,280 -- -- ------------ ------------ ----------- ------------ TOTAL ASSETS 70,252,232 12,869,816 4,318,293 57,774,854 ------------ ------------ ----------- ------------ LIABILITIES: Payable due to Investment Adviser 44,838 11,168 2,312 33,512 Payable for Foreign Currency Contracts 24,495 -- -- -- Due to Custodian 24,492 8,449 14,699 99,618 Unrealized Depreciation on Forward Foreign Currency Contracts -- 49 2 10 ------------ ------------ ----------- ------------ TOTAL LIABILITIES 93,825 19,666 17,013 133,140 ------------ ------------ ----------- ------------ NET ASSETS $ 70,158,407 $ 12,850,150 $ 4,301,280 $ 57,641,714 ============ ============ =========== ============ NET ASSETS CONSIST OF: Paid-in Capital $ 67,366,879 $ 12,380,221 $ 3,761,500 $ 46,701,000 Undistributed Net Investment Income 1,177,309 149,709 7,571 44,666 Accumulated Net Realized Gain (Loss) on Investments and Foreign Currency Translations (1,392,752) (220,120) 38,308 (15,617) Net Unrealized Appreciation on Investments 3,006,834 539,630 493,864 10,911,591 Net Unrealized Appreciation on Foreign Currency Translations 137 710 37 74 ------------ ------------ ----------- ------------ NET ASSETS $ 70,158,407 $ 12,850,150 $ 4,301,280 $ 57,641,714 ============ ============ =========== ============ Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 4,750,000 750,000 250,000 3,950,000 ============ ============ =========== ============ Net Asset Value, Offering and Redemption Price Per Share $14.77 $17.13 $17.21 $14.59 ============ ============ =========== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 47 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED OCTOBER 31, 2010 - --------------------------------------------------------------------------------
GLOBAL X GLOBAL X GLOBAL X COPPER GLOBAL X BRAZIL GLOBAL X SILVER LITHIUM MINERS BRAZIL MID FINANCIALS MINERS ETF(1) ETF(2) ETF(1) CAP ETF(3) ETF(4) --------------- -------- -------- ---------- ----------- INVESTMENT INCOME: Dividend Income $ 493,392 $ 12,708 $ 17,805 $ 94,914 $ 21,844 Interest Income 63 13 1 8 4 Less: Foreign Taxes Withheld (17,528) -- (1,013) (1,916) (1,122) ------------ ----------- --------- ----------- --------- TOTAL INVESTMENT INCOME 475,927 12,721 16,793 93,006 20,726 ------------ ----------- --------- ----------- --------- Supervision and Administrations Fees(5) 246,319 72,966 15,452 32,458 8,323 ------------ ----------- --------- ----------- --------- TOTAL EXPENSES 246,319 72,966 15,452 32,458 8,323 ------------ ----------- --------- ----------- --------- NET INVESTMENT INCOME (LOSS) 229,608 (60,245) 1,341 60,548 12,403 ------------ ----------- --------- ----------- --------- NET REALIZED GAIN (LOSS) ON: Investments 284,871(6) 104,884 (10,213) 33,357 (2) Foreign Currency Transactions (8,512) 9,304 3,408 (1,598) 1,422 ------------ ----------- --------- ----------- --------- NET REALIZED GAIN (LOSS) ON INVESTMENTS 276,359 114,188 (6,805) 31,759 1,420 ------------ ----------- --------- ----------- --------- NET CHANGE IN UNREALIZED APPRECIATION Investments 29,297,181 7,199,539 763,892 2,593,704 495,410 Foreign Currency Transactions 186 583 149 610 104 ------------ ----------- --------- ----------- --------- NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 29,297,367 7,200,122 764,041 2,594,314 495,514 ------------ ----------- --------- ----------- --------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 29,573,726 7,314,310 757,236 2,626,073 496,934 ------------ ----------- --------- ----------- --------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 29,803,334 $ 7,254,065 $ 758,577 $ 2,686,621 $ 509,337 ============ =========== ========= =========== =========
(1) THE FUND COMMENCED OPERATIONS ON APRIL 19, 2010. (2) THE FUND COMMENCED OPERATIONS ON JULY 22, 2010. (3) THE FUND COMMENCED OPERATIONS ON JUNE 21, 2010. (4) THE FUND COMMENCED OPERATIONS ON JULY 28, 2010. (5) THE SUPERVISION AND ADMINISTRATION FEES REFLECT THE SUPERVISORY AND ADMINISTRATIVE FEE, WHICH INCLUDES FEES PAID BY THE FUNDS FOR THE INVESTMENT ADVISORY SERVICES PROVIDED BY THE ADVISER. (SEE NOTE 3 IN NOTES TO FINANCIAL STATEMENTS.) (6) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4 IN NOTES TO FINANCIAL STATEMENTS.) THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 48 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED OCTOBER 31, 2010 - --------------------------------------------------------------------------------
GLOBAL X GLOBAL GLOBAL X BRAZIL X/INTERBOLSA GLOBAL X GLOBAL X CHINA CHINA CONSUMER FTSE COLOMBIA FTSE NORDIC CONSUMER ENERGY ETF(1) 20 ETF 30 ETF ETF(2) ETF(3) ----------- ------------ ----------- ------------ --------- INVESTMENT INCOME: Dividend Income $ 30,159 $ 586,088 $ 195,415 $ 842,656 $ 84,877 Interest Income 4 35 4 75 12 Less: Foreign Taxes Withheld (2,863) (57,642) (31,543) (6,286) (6,189) ----------- ------------ ----------- ------------ --------- TOTAL INVESTMENT INCOME 27,300 528,481 163,876 836,445 78,700 ----------- ------------ ----------- ------------ --------- Supervision and Administrations Fees(4) 24,160 221,067 33,950 323,137 20,854 Custodian Fees -- 58,518 -- -- -- ----------- ------------ ----------- ------------ --------- TOTAL EXPENSES 24,160 279,585 33,950 323,137 20,854 ----------- ------------ ----------- ------------ --------- NET INVESTMENT INCOME 3,140 248,896 129,926 513,308 57,846 ----------- ------------ ----------- ------------ --------- NET REALIZED GAIN (LOSS) ON: Investments 22,240 192,512 412,160(5) (265,101) (54,875) Foreign Currency Transactions 1,380 (44,317) (73) 393 211 ----------- ------------ ----------- ------------ --------- NET REALIZED GAIN (LOSS) ON INVESTMENTS 23,620 148,195 412,087 (264,708) (54,664) ----------- ------------ ----------- ------------ --------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: Investments 2,310,845 20,399,073 1,292,671 21,235,390 214,135 Foreign Currency Transactions 164 (6,565) 504 573 (3) ----------- ------------ ----------- ------------ --------- NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 2,311,009 20,392,508 1,293,175 21,235,963 214,132 ----------- ------------ ----------- ------------ --------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 2,334,629 20,540,703 1,705,262 20,971,255 159,468 ----------- ------------ ----------- ------------ --------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,337,769 $ 20,789,599 $ 1,835,188 $ 21,484,563 $ 217,314 =========== ============ =========== ============ =========
(1) THE FUND COMMENCED OPERATIONS ON JULY 7, 2010. (2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. (3) THE FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009. (4) THE SUPERVISION AND ADMINISTRATION FEES REFLECT THE SUPERVISORY AND ADMINISTRATIVE FEE, WHICH INCLUDES FEES PAID BY THE FUNDS FOR THE INVESTMENT ADVISORY SERVICES PROVIDED BY THE ADVISER. (SEE NOTE 3 IN NOTES TO FINANCIAL STATEMENTS.) (5) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4 IN NOTES TO FINANCIAL STATEMENTS.) THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 49 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED OCTOBER 31, 2010 - --------------------------------------------------------------------------------
GLOBAL X GLOBAL X GLOBAL X GLOBAL X CHINA CHINA CHINA CHINA FINANCIALS INDUSTRIALS TECHNOLOGY MATERIALS ETF(1) ETF(2) ETF(3) ETF(4) ----------- ----------- ---------- --------- INVESTMENT INCOME: Dividend Income $ 1,622,695 $ 291,033 $ 29,563 $ 186,206 Interest Income 16 8 1 10 Less: Foreign Taxes Withheld (108,977) (12,682) (1,857) (7,335) ----------- ----------- --------- ------------ TOTAL INVESTMENT INCOME 1,513,734 278,359 27,707 178,881 ----------- ----------- --------- ------------ Supervision and Administrations Fees(5) 338,609 143,352 20,303 132,463 ----------- ----------- --------- ------------ TOTAL EXPENSES 338,609 143,352 20,303 132,463 ----------- ----------- --------- ------------ NET INVESTMENT INCOME 1,175,125 135,007 7,404 46,418 ----------- ----------- --------- ------------ NET REALIZED GAIN (LOSS) ON: Investments 1,587,627(6) 1,501,101(6) 38,309 (15,617) Foreign Currency Transactions 2,184 14,702 166 (1,752) ----------- ----------- --------- ------------ NET REALIZED GAIN (LOSS) ON INVESTMENTS 1,589,811 1,515,803 38,475 (17,369) ----------- ----------- --------- ------------ NET CHANGE IN UNREALIZED APPRECIATION ON: Investments 3,006,834 539,630 493,864 10,911,591 Foreign Currency Transactions 137 710 37 74 ----------- ----------- --------- ------------ NET CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS 3,006,971 540,340 493,901 10,911,665 ----------- ----------- --------- ------------ NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 4,596,782 2,056,143 532,376 10,894,296 ----------- ----------- --------- ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,771,907 $ 2,191,150 $ 539,780 $ 10,940,714 =========== =========== ========= ============
(1) THE FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009. (2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. (3) THE FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009. (4) THE FUND COMMENCED OPERATIONS ON JANUARY 12, 2010. (5) THE SUPERVISION AND ADMINISTRATION FEES REFLECT THE SUPERVISORY AND ADMINISTRATIVE FEE, WHICH INCLUDES FEES PAID BY THE FUNDS FOR THE INVESTMENT ADVISORY SERVICES PROVIDED BY THE ADVISER. (SEE NOTE 3 IN NOTES TO FINANCIAL STATEMENTS.) (6) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4 IN NOTES TO FINANCIAL STATEMENTS.) THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 50 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
GLOBAL X GLOBAL X SILVER GLOBAL X COPPER MINERS GLOBAL X BRAZIL MINERS ETF LITHIUM ETF ETF MID CAP ETF PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2010(1) 2010(2) 2010(1) 2010(3) --------------- ------------- ------------- --------------- OPERATIONS: Net Investment Income (Loss) $ 229,608 $ (60,245) $ 1,341 $ 60,548 Net Realized Gain (Loss) on Investments and Foreign Currency Transactions 276,359(4) 114,188 (6,805) 31,759 Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions 29,297,367 7,200,122 764,041 2,594,314 ------------- ------------ ------------ ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 29,803,334 7,254,065 758,577 2,686,621 ------------- ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Issued 143,459,000 71,062,500 29,170,000 26,555,500 Redeemed (1,590,500) -- -- -- ------------- ------------ ------------ ------------ INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 141,868,500 71,062,500 29,170,000 26,555,500 ------------- ------------ ------------ ------------ TOTAL INCREASE IN NET ASSETS 171,671,834 78,316,565 29,928,577 29,242,121 ------------- ------------ ------------ ------------ NET ASSETS: Beginning of Period -- -- -- -- ------------- ------------ ------------ ------------ End of Period $ 171,671,834 $ 78,316,565 $ 29,928,577 $ 29,242,121 ============= ============ ============ ============ UNDISTRIBUTED NET INVESTMENT INCOME/(ACCUMULATED NET INVESTMENT LOSS) $ 221,096 $ (50,941) $ 4,749 $ 57,041 ============= ============ ============ ============ SHARE TRANSACTIONS: Issued 8,600,000 3,950,000 1,800,000 1,600,000 Redeemed (100,000) -- -- -- ------------- ------------ ------------ ------------ NET INCREASE IN SHARES OUTSTANDING FROM SHARE TRANSACTIONS 8,500,000 3,950,000 1,800,000 1,600,000 ============= ============ ============ ============
(1) THE FUND COMMENCED OPERATIONS ON APRIL 19, 2010. (2) THE FUND COMMENCED OPERATIONS ON JULY 22, 2010. (3) THE FUND COMMENCED OPERATIONS ON JUNE 21, 2010. (4) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4 IN NOTES TO FINANCIAL STATEMENTS.) THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 51 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
GLOBAL X GLOBAL X BRAZIL BRAZIL GLOBAL X/INTERBOLSA FTSE FINANCIALS ETF CONSUMER ETF COLOMBIA 20 ETF PERIOD ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, YEAR ENDED OCTOBER 31, 2010(1) 2010(2) OCTOBER 31, 2010 2009(3) ----------- ------------ ---------------- ------------ OPERATIONS: Net Investment Income $ 12,403 $ 3,140 $ 248,896 $ 68,711 Net Realized Gain on Investments and Foreign Currency Transactions 1,420 23,620 148,195 51,378 Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions 495,514 2,311,009 20,392,508 1,535,465 ----------- ------------ ------------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 509,337 2,337,769 20,789,599 1,655,554 ----------- ------------ ------------- ----------- DIVIDENDS AND DISTRIBUTIONS: Net Investment Income -- -- (264,734) -- ----------- ------------ ------------- ----------- TOTAL DIVIDENDS AND DISTRIBUTIONS -- -- (264,734) -- ----------- ------------ ------------- ----------- CAPITAL SHARE TRANSACTIONS: Issued 7,320,000 22,596,500 168,870,000 5,304,500 ----------- ------------ ------------- ----------- INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 7,320,000 22,596,500 168,870,000 5,304,500 ----------- ------------ ------------- ----------- TOTAL INCREASE IN NET ASSETS 7,829,337 24,934,269 189,394,865 6,960,054 ----------- ------------ ------------- ----------- NET ASSETS: Beginning of Period -- -- 6,960,054 -- ----------- ------------ ------------- ----------- End of Period $ 7,829,337 $ 24,934,269 $ 196,354,919 $ 6,960,054 =========== ============ ============= =========== UNDISTRIBUTED NET INVESTMENT INCOME $ 13,826 $ 3,670 $ 87,541 $ 116,542 =========== ============ ============= =========== SHARE TRANSACTIONS: Issued 450,000 1,250,000 4,020,000 250,000 ----------- ------------ ------------- ----------- NET INCREASE IN SHARES OUTSTANDING FROM SHARE TRANSACTIONS 450,000 1,250,000 4,020,000 250,000 =========== ============ ============= ===========
(1) THE FUND COMMENCED OPERATIONS ON JULY 28, 2010. (2) THE FUND COMMENCED OPERATIONS ON JULY 7, 2010. (3) THE FUND COMMENCED OPERATIONS ON FEBRUARY 5, 2009. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 52 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
GLOBAL X GLOBAL X CHINA CHINA ENERGY GLOBAL X FTSE NORDIC 30 ETF CONSUMER ETF ETF YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2010 2009(1) 2010(2) 2010(3) ------------- ------------- -------------- ------------- OPERATIONS: Net Investment Income (Loss) $ 129,926 $ (2,689) $ 513,308 $ 57,846 Net Realized Gain (Loss) on Investments and Foreign Currency Transactions 412,087(4) 2,840 (264,708) (54,664) Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions 1,293,175 265,092 21,235,963 214,132 ------------ ----------- ------------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,835,188 265,243 21,484,563 217,314 ------------ ----------- ------------- ----------- DIVIDENDS AND DISTRIBUTIONS: Net Investment Income (2,158) -- -- -- ------------ ----------- ------------- ----------- TOTAL DIVIDENDS AND DISTRIBUTIONS (2,158) -- -- -- ------------ ----------- ------------- ----------- CAPITAL SHARE TRANSACTIONS: Issued 9,938,400 3,009,396 153,390,500 4,500,000 Redeemed (2,462,600) -- -- -- ------------ ----------- ------------- ----------- INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 7,475,800 3,009,396 153,390,500 4,500,000 ------------ ----------- ------------- ----------- TOTAL INCREASE IN NET ASSETS 9,308,830 3,274,639 174,875,063 4,717,314 ------------ ----------- ------------- ----------- NET ASSETS: Beginning of Period 3,374,644 100,005 -- -- ------------ ----------- ------------- ----------- End of Period $ 12,683,474 $ 3,374,644 $ 174,875,063 $ 4,717,314 ============ =========== ============= =========== UNDISTRIBUTED NET INVESTMENT INCOME/(ACCUMULATED NET INVESTMENT LOSS) $ 127,846 $ (2,006) $ 513,701 $ 58,057 ============ =========== ============= =========== SHARE TRANSACTIONS: Issued 590,000 210,000 8,600,000 300,000 Redeemed (140,000) -- -- -- ------------ ----------- ------------- ----------- NET INCREASE IN SHARES OUTSTANDING FROM SHARE TRANSACTIONS 450,000 210,000 8,600,000 300,000 ============ =========== ============= ===========
(1) THE FUND COMMENCED OPERATIONS ON AUGUST 17, 2009. (2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. (3) THE FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009. (4) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4 IN NOTES TO FINANCIAL STATEMENTS.) The accompanying notes are an integral part of the financial statements. 53 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA TECHNOLOGY GLOBAL X CHINA FINANCIALS ETF INDUSTRIALS ETF ETF MATERIALS ETF PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2010(1) 2010(2) 2010(3) 2010(4) --------------- --------------- ------------- -------------- OPERATIONS: Net Investment Income $ 1,175,125 $ 135,007 $ 7,404 $ 46,418 Net Realized Gain (Loss) on Investments and Foreign Currency Transactions 1,589,811(5) 1,515,803(5) 38,475 (17,369) Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions 3,006,971 540,340 493,901 10,911,665 ------------ ------------ ----------- ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 5,771,907 2,191,150 539,780 10,940,714 ------------ ------------ ----------- ------------ CAPITAL SHARE TRANSACTIONS: Issued 82,874,000 27,227,000 3,761,500 46,701,000 Redeemed (18,487,500) (16,568,000) -- -- ------------ ------------ ----------- ------------ INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 64,386,500 10,659,000 3,761,500 46,701,000 ------------ ------------ ----------- ------------ TOTAL INCREASE IN NET ASSETS 70,158,407 12,850,150 4,301,280 57,641,714 ------------ ------------ ----------- ------------ NET ASSETS: Beginning of Period -- -- -- -- ------------ ------------ ----------- ------------ End of Period $ 70,158,407 $ 12,850,150 $ 4,301,280 $ 57,641,714 ============ ============ =========== ============ UNDISTRIBUTED NET INVESTMENT INCOME $ 1,177,309 $ 149,709 $ 7,571 $ 44,666 ============ ============ =========== ============ SHARE TRANSACTIONS: Issued 6,000,000 1,700,000 250,000 3,950,000 Redeemed (1,250,000) (950,000) -- -- ------------ ------------ ----------- ------------ NET INCREASE IN SHARES OUTSTANDING FROM SHARE TRANSACTIONS 4,750,000 750,000 250,000 3,950,000 ============ ============ =========== ============
(1) THE FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009. (2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. (3) THE FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009. (4) THE FUND COMMENCED OPERATIONS ON JANUARY 12, 2010. (5) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4 IN NOTES TO FINANCIAL STATEMENTS.) THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 54 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SELECTED PER SHARE DATA & RATIOS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET RATIO REALIZED RATIO OF OF NET AND NET NET EXPENSES INVESTMENT NET ASSET NET UNREALIZED DISTRIBUTION ASSET ASSETS TO INCOME VALUE, INVESTMENT GAIN (LOSS) TOTAL FROM NET VALUE, END OF AVERAGE (LOSS) TO BEGINNING INCOME ON FROM INVESTMENT END OF TOTAL PERIOD NET AVERAGE NET PORTFOLIO OF PERIOD (LOSS)* INVESTMENTS OPERATIONS INCOME PERIOD RETURN** (000) ASSETS ASSETS TURNOVER --------- ---------- ----------- ---------- ------------ ------ -------- ------- -------- ----------- --------- Global X Silver Miners ETF(1) Institutional Shares 2010 $14.50 $0.05 $5.65 $5.70 $-- $20.20 39.31% $171,672 0.65%+ 0.61%+ 0.35%++ Global X Lithium ETF(2) Institutional Shares 2010 $15 .51 $(0.03) $4.35 $4 .32 $-- $19.83 27.85% $78,317 0.75%+ (0.62)%+ 5.55%++ Global X Copper Miners ETF(1) Institutional Shares 2010 $14.40 $-- $2 .23 $2.23 $-- $16.63 15.49% $29,929 0.65%+ 0.06%+ 1.36%++ Global X Brazil Mid Cap ETF(3) Institutional Shares 2010 $15.16 $0.08 $3.04 $3.12 $-- $18.28 20.58% $29,242 0.69%+ 1.24%+ 2.69%++ Global X Brazil Financials ETF(4) Institutional Shares 2010 $15.08 $0.05 $2.27 $2.32 $-- $17.40 15.38% $7,829 0.77%+ 1.15%+ --%++ Global X Brazil Consumer ETF(5) Institutional Shares 2010 $15.48 $-- $4.47 $4.47 $-- $19.95 28.88% $24,934 0.77%+ 0.07%+ 4.72%++ Global X/InterBolsa FTSE Colombia 20 ETF Institutional Shares 2010 $27.84 $0.31 $18.89 $19.20 $(1.06) $45.98 71.28% $196,355 0.86% 0.77% 40.95%++ 2009(6) $15.00 $0.50 $12.34 $12.84 $-- $27.84 85.60% $6,960 0.86%+ 2.93%+ 1.94% Global X FTSE Nordic 30 ETF Institutional Shares 2010 $16.07 $0.32 $2.84 $3.16 $(0.01) $19.22 19.68% $12,683 0.50% 1.91% 4.07%++ 2009(7) $14.50 $(0.02) $1.59 $1.57 $-- $16.07 10.83% $3,375 0.50%+ (0.50)%+ 0.70% Global X China Consumer ETF(8) Institutional Shares 2010 $15.65 $0.17 $4.51 $4.68 $-- $20.33 29.90% $174,875 0.65%+ 1.03%+ 3.91%++ Global X China Energy ETF(9) Institutional Shares 2010 $15.02 $0.23 $0.47 $0.70 $-- $15.72 4.66% $4,717 0.65%+ 1.80%+ 20.55%++ Global X China Financials ETF(10) Institutional Shares 2010 $14.90 $0.27 $(0.40) $(0.13) $-- $14.77 (0.87)% $70,158 0.65%+ 2.26%+ 14.42%++ Global X China Industrials ETF(8) Institutional Shares 2010 $15.50 $0.08 $1.55 $1.63 $-- $17.13 10.52% $12,850 0.65%+ 0.61%+ 12.74%++ Global X China Technology ETF(11) Institutional Shares 2010 $14.90 $0.03 $2.28 $2.31 $-- $17.21 15.50% $4,301 0.65%+ 0.24%+ 5.15%++ Global X China Materials ETF(12) Institutional Shares 2010 $14.95 $0.02 $(0.38) $(0.36) $-- $14.59 (2.41)% $57,642 0.65%+ 0.23%+ 6.13%++
(1) THE FUND COMMENCED OPERATIONS ON APRIL 19, 2010. (2) THE FUND COMMENCED OPERATIONS ON JULY 22, 2010. (3) THE FUND COMMENCED OPERATIONS ON JUNE 21, 2010. (4) THE FUND COMMENCED OPERATIONS ON JULY 28, 2010. (5) THE FUND COMMENCED OPERATIONS ON JULY 7, 2010. (6) THE FUND COMMENCED OPERATIONS ON FEBRUARY 5, 2009. (7) THE FUND COMMENCED OPERATIONS ON AUGUST 17, 2009. (8) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009. (9) THE FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009. (10) THE FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009. (11) THE FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009. (12) THE FUND COMMENCED OPERATIONS ON JANUARY 12, 2010. * PER SHARE CALCULATIONS WERE PERFORMED USING AVERAGE SHARES. ** TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. THE RETURN SHOWN DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. + ANNUALIZED. ++ PORTFOLIO TURNOVER RATE IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. EXCLUDES THE EFFECTS OF IN-KIND TRANSFERS. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 55 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 1. ORGANIZATION The Global X Funds (the "Trust") is a Delaware Statutory Trust formed on March 6, 2008. The Trust is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as an open-end management investment company and as of October 31, 2010 had thirty-nine investment portfolios: Global X FTSE Nordic 30 ETF, Global X FTSE Denmark 30 ETF, Global X FTSE Finland 30 ETF, Global X FTSE Norway 30 ETF, Global X FTSE Argentina 20 ETF, Global X/InterBolsa FTSE Colombia 20 ETF, Global X FTSE Egypt 30 ETF, Global X FTSE Peru 20 ETF, Global X FTSE Philippines 30 ETF, Global X FTSE Poland 30 ETF, Global X FTSE United Arab Emirates 20 ETF, Global X Emerging Africa NR-40 ETF, Global X Pakistan KSE30 ETF, Global X China Consumer ETF, Global X China Energy ETF, Global X China Financials ETF, Global X China Industrials ETF, Global X China Materials ETF, Global X China Technology ETF, Global X Copper Miners ETF, Global X Gold Miners ETF, Global X Platinum Miners ETF, Global X Silver Miners ETF, Global X Brazil Consumer ETF, Global X Brazil Financials ETF, Global X Brazil Industrials ETF, Global X Brazil Materials ETF, Global X Brazil Utilities ETF, Global X Mid Cap ETF, Global X China Mid Cap, Global X Aluminum ETF, Global X Lithium ETF, Global X Uranium ETF, Global X Fishing ETF, Global X Food ETF, Global X Shipping ETF, Global X Waste Management ETF, Global X Gold Explorers ETF, Global X Oil & Gas Explorers ETF.(1, 2) As of October 31, 2010, the following investment portfolios were operational: Global X Silver Miners ETF, Global X Lithium ETF, Global X Copper Miners ETF, Global X Brazil Mid Cap ETF, Global X Brazil Financials ETF, Global X Brazil Consumer ETF, Global X/InterBolsa FTSE Colombia 20 ETF, Global X FTSE Nordic 30 ETF, Global X China Consumer ETF, Global X China Energy ETF, Global X China Financials ETF, Global X China Industrials ETF, Global X China Technology ETF, and the Global X China Materials ETF (the "Funds").(3) The Funds seek to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. Each Fund is classified as "non-diversified" for purposes of the 1940 Act. This means that each Fund may invest most of its assets in securities issued by or representing a small number of companies. As a result, each Fund may be more susceptible to the risks associated with these particular companies, or to a single economic, political or regulatory occurrence affecting these companies. Global X Management Company LLC (the "Adviser"), a Delaware Limited Liability Company, serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board of Trustees (the "Board"), the Adviser is responsible for managing the investment activities of the Funds, the Funds' business affairs and other administrative matters. - --------------- (1) As of November 17, 2010, the Trust added the following nine investment portfolios: Global X Russell Emerging Markets Growth ETF, Global X Russell Emerging Markets Value ETF, Global X Next 11 ETF, Global X FTSE ASEAN ETF, Global X FTSE Andean ETF, Global X S&P/TSX Venture ETF, Global X Oil Equities ETF, Global X Auto ETF. (2) As of November 17, 2010 the Trust discontinued the following three investment portfolios: Global X FTSE Egypt 30 ETF, Global X FTSE Peru 20 ETF, and Global X FTSE Poland ETF. (3) The following investment portfolios became operational as of November 3, 2010, November 4, 2010 and November 9, 2010, respectively: Global X Gold Explorers ETF, Global X Uranium ETF, and Global X FTSE Norway ETF. 56 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the Significant Accounting Policies followed by the Funds. USE OF ESTIMATES -- The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principals ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates, and could have a material impact to the Funds. SECURITY VALUATION -- Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm if a security's primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used). For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Board. The Funds' Fair Value Procedures are implemented through a Fair Value Committee (the "Committee") designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been de-listed from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. As of October 31, 2010 there were $71,750, $35,852 and $1,048,393, of fair valued securities in the Global X Brazil Mid Cap ETF, Global X Brazil Consumer ETF and Global X China Materials ETF, respectively. As of October 31, 2010, no other Fund has fair valued securities. 57 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 2. SIGNIFICANT ACCOUNTING POLICIES (continued) SECURITY VALUATION (concluded) For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security's last trade and the time at which the Fund's calculated their net asset value. The closing prices of such securities may no longer reflect their market value at the time the Funds calculated net asset value if an event that could materially affect the value of those securities (a "Significant Event") has occurred between the time of the security's last close and the time that the Funds calculate net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the Adviser becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate net asset value, it may request that a Committee meeting be called. In addition, the Funds' Sub-administrator, SEI Investments Global Funds Services ("SEIGFS"), monitors price movements among certain selected indices, securities and/or baskets of securities that may be an indicator that the closing prices received earlier from foreign exchanges or markets may not reflect market value at the time the Funds calculate net asset value. If price movements in a monitored index or security exceed levels established by the Sub-administrator, the Sub-administrator notifies the Adviser that such limits have been exceeded. In such event, the Adviser makes the determination whether a Committee meeting should be called based on the information provided. In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: The three levels of the fair value hierarchy are described below: Level 1 -- Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the funds have has the ability to access at the measurement date; Level 2 -- Other significant observable inputs (including quoted prices for similar investments, fair value of investments for which the Fund has the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost) Level 3 -- Significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments, fair value of investments for which the Fund does not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term) Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement. For the period ended October 31, 2010 there has been no significant changes to the Funds' fair valuation methodologies. 58 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 2. SIGNIFICANT ACCOUNTING POLICIES (continued) FEDERAL INCOME TAXES -- It is the Funds' intention to qualify or continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether it is "more-likely-than-not" (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. However, management's conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on trade date. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date. FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of (i) investment securities, (ii) income and (iii) expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds' do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent amounts actually received or paid. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Funds distribute substantially all of their net investment income annually. Any net realized capital gains are distributed annually. All distributions are recorded on ex-dividend date. CREATION UNITS -- The Funds issue and redeem shares ("Shares") at NAV and only in large blocks of Shares, (each block of Shares for a Fund is called a "Creation Unit" or multiples thereof). Purchasers of Creation Units ("Authorized Participants") at NAV must pay a standard Creation Transaction Fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an investor on the same day. An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard Redemption Fee per 59 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 2. SIGNIFICANT ACCOUNTING POLICIES (concluded) CREATION UNITS (concluded) transaction on the date of such redemption, regardless of the number of Creation Units redeemed that day. If a Creation Unit is purchased or redeemed for cash, a higher Transaction Fee will be charged. The following table discloses Creation Unit breakdown:
CREATION UNIT SHARES TRANSACTION FEE VALUE REDEMPTION FEE -------------------------------------------------------------- Global X Silver Miners ETF 50,000 $ 1,000 $ 1,010,000 $ 1,000 Global X Lithium ETF 50,000 1,000 991,500 1,000 Global X Copper Miners ETF 50,000 1,000 831,500 1,000 Global X Brazil Mid Cap ETF 50,000 1,900 914,000 1,900 Global X Brazil Financials ETF 50,000 1,900 870,000 1,900 Global X Brazil Consumer ETF 50,000 1,900 997,500 1,900 Global X/InterBolsa FTSE Colombia 20 ETF 30,000 2,600 1,379,400 2,600 Global X FTSE Nordic 30 ETF 50,000 1,500 961,000 1,500 Global X China Consumer ETF 50,000 2,300 1,016,500 2,300 Global X China Energy ETF 50,000 2,300 786,000 2,300 Global X China Financials ETF 50,000 2,300 738,500 2,300 Global X China Industrials ETF 50,000 2,300 856,500 2,300 Global X China Technology ETF 50,000 2,300 860,500 2,300 Global X China Materials ETF 50,000 2,300 729,500 2,300
3. RELATED PARTY TRANSACTIONS The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board of Trustees, the Adviser is responsible for managing the investment activities of the Funds and the Funds' business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate Distribution Agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate Investment Advisory Agreement), under what is essentially an "all-in" fee structure. For its service to the Funds, under the Supervision and Administration Agreement, each Fund pays a monthly a fee to the Adviser at the annual rate (stated as a percentage of the average daily net assets of the Fund). In addition, the Funds bear other expenses that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes and governmental fees, brokerage fees, commissions and other transaction expenses, costs of borrowing money, including interest expenses and extraordinary expenses (such as litigation and indemnification expenses). In addition, the Global X/InterBolsa FTSE Colombia 20 ETF pays custodial fees that are not covered by the Supervision and Administration Agreement. 60 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 3. RELATED PARTY TRANSACTIONS (continued) SUPERVISION AND ADMINISTRATION FEE ------------------ Global X Silver Miners ETF 0.65% Global X Lithium ETF 0.75% Global X Copper Miners ETF 0.65% Global X Brazil Mid Cap ETF 0.69% Global X Brazil Financials ETF 0.77% Global X Brazil Consumer ETF 0.77% Global X/InterBolsa FTSE Colombia 20 ETF* 0.68% Global X FTSE Nordic 30 ETF 0.50% Global X China Consumer ETF 0.65% Global X China Energy ETF 0.65% Global X China Financials ETF 0.65% Global X China Industrials ETF 0.65% Global X China Technology ETF 0.65% Global X China Materials ETF 0.65% *The Global X/InterBolsa FTSE Colombia 20 ETF Fund paid 0.18% in Custody Fees (in addition to the Supervision and Administration Fee) during the fiscal year ended October 31, 2010. The Adviser and InterBolsa S.A. ("InterBolsa"), one of the leading broker-dealers located in Colombia, entered into an agreement, pursuant to which InterBolsa has agreed to provide certain marketing, marketing-related and other services and allows the use of InterBolsa's name and brand with respect to the Global X/InterBolsa FTSE Colombia 20 ETF. Under this agreement, InterBolsa agreed to make an initial payment to the Adviser regarding certain start up expenses for the Fund and the Adviser has agreed to share with InterBolsa fifty percent (50%) of the Adviser's legitimate profits and losses with respect to the Global X/InterBolsa FTSE Colombia 20 ETF. The Adviser and MCCA Lithium ETF, LLC ("MCCA"), a single purpose limited liability firm, have entered into an agreement, pursuant to which MCCA has agreed to assist the Adviser, in its capacity as sponsor of the Global X Lithium ETF, by providing initial capital and additional financial resources to the Adviser in connection with the listing, launch and the continuing operation of the Global X Lithium Fund. In return, the Adviser has agreed to compensate MCCA for its financial assistance to the Adviser with respect to the Global X Lithium ETF by sharing with MCCA fifty percent (50%) of the Adviser's Net Profits with respect to the Global X Lithium ETF. For this purpose, the term Net Profits means, for any calendar quarter, the total management fees received by the Adviser with respect to the Global X Lithium ETF less direct expenses, marketing expenses and overhead expenses for the Global X Lithium ETF during such quarter. In the event that there are no Net Profits with respect to the Global X Lithium ETF in any calendar quarter, MCCA shall pay fifty percent of the negative shortfall in Net Profits to the Adviser. The agreement between the parties does not contemplate that MCCA or any of its affiliates will be involved directly or indirectly in the distribution of shares of the Global X Lithium ETF. SEIGFS serves as Sub-Administrator to the Funds. As Sub-Administrator, SEIGFS provides the Funds with the required general administrative services, including, without limitation: office space, 61 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 3. RELATED PARTY TRANSACTIONS (concluded) equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, the Sub-Administrator receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser. SEI Investments Distribution Co. ("SIDCO") serves as each Funds underwriter and distributor of Shares pursuant to a Distribution Agreement. Under the Distribution Agreement, SIDCO, as agent, receives orders to create and redeem Shares in Creation Unit Aggregations and transmits such orders to the Trust's custodian and transfer agent. The Distributor has no obligation to sell any specific quantity of Fund Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (i) the costs of processing and maintaining records of creations of Creation Units; (ii) all costs of maintaining the records required of a registered broker/dealer; (iii) the expenses of maintaining its registration or qualification as a dealer or broker under Federal or state laws; (iv) filing fees; and (v) all other expenses incurred in connection with the distribution services as contemplated in the Distribution Agreement. 4. INVESTMENT TRANSACTIONS For the period ended October 31, 2010, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government and short-term securities were: SALES AND PURCHASES MATURITIES ------------ ------------ Global X Silver Miners ETF $ 761,535 $ 269,077 Global X Lithium ETF 2,396,151 2,185,097 Global X Copper Miners ETF 387,186 84,900 Global X Brazil Mid Cap ETF 2,711,705 376,160 Global X Brazil Financials ETF -- -- Global X Brazil Consumer ETF 3,411,239 581,764 Global X/InterBolsa FTSE Colombia 20 ETF 79,173,144 15,416,228 Global X FTSE Nordic 30 ETF 410,772 270,793 Global X China Consumer ETF 12,704,437 2,458,933 Global X China Energy ETF 837,906 770,349 Global X China Financials ETF 10,388,240 8,506,932 Global X China Industrials ETF 3,307,450 3,055,691 Global X China Technology ETF 199,003 184,871 Global X China Materials ETF 4,504,283 1,655,385 62 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 4. INVESTMENT TRANSACTIONS (concluded) For the period ended October 31, 2010, in-kind transactions associated with creations and redemptions were:
SALES AND REALIZED PURCHASES MATURITIES GAIN/(LOSS) ------------- ----------- ------------ Global X Silver Miners ETF $ 143,160,788 $ 1,583,258 $ 281,866 Global X Lithium ETF 70,828,329 - - Global X Copper Miners ETF 28,868,578 - - Global X Brazil Mid Cap ETF 24,269,019 - - Global X Brazil Financials ETF 7,296,489 - - Global X Brazil Consumer ETF 19,823,929 - - Global X/InterBolsa FTSE Colombia 20 ETF 105,039,233 - - Global X FTSE Nordic 30 ETF 9,922,895 2,458,244 425,443 Global X China Consumer ETF 143,572,922 - - Global X China Energy ETF 4,497,831 - - Global X China Financials ETF 81,981,287 18,445,435 2,980,379 Global X China Industrials ETF 27,130,981 16,576,366 1,721,221 Global X China Technology ETF 3,757,614 - - Global X China Materials ETF 43,942,433 - -
During the period ended October 31, 2010, there were no purchases or sales of long-term U.S. Government securities for the Funds. 5. TAX INFORMATION The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise. 63 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 5. TAX INFORMATION (continued) The following differences, primarily attributable to foreign currency, redemptions in-kind, sales of passive foreign investment companies and net operating losses, have been reclassified to/from the following accounts during the fiscal period ended October 31, 2010.
UNDISTRIBUTED NET ACCUMULATED PAID-IN INVESTMENT NET REALIZED GLOBAL X FUNDS CAPITAL INCOME/(LOSS) GAIN/(LOSS) - -------------- -------- -------------- ------------ Global X Silver Miners ETF $281,866 $(8,512) $(273,354) Global X Lithium ETF -- 9,304 (9,304) Global X Copper Miners ETF -- 3,408 (3,408) Global X Brazil Mid Cap ETF -- (3,507) 3,507 Global X Brazil Financials ETF -- 1,423 (1,423) Global X Brazil Consumer ETF -- 530 (530) Global X/InterBolsa FTSE Colombia 20 ETF -- (13,163) 13,163 Global X FTSE Nordic 30 ETF 425,443 2,084 (427,527) Global X China Consumer ETF -- 393 (393) Global X China Energy ETF -- 211 (211) Global X China Financials ETF 2,980,379 2,184 (2,982,563) Global X China Industrials ETF 1,721,221 14,702 (1,735,923) Global X China Technology ETF -- 167 (167) Global X China Materials ETF -- (1,752) 1,752
The tax character of dividends and distributions paid during the last period ended October 31, 2010 and 2009 were as follows: LONG-TERM GLOBAL X ORDINARY CAPITAL FUNDS INCOME GAIN TOTALS - -------- --------- ---------- --------- Global X/InterBolsa FTSE Colombia 20 ETF 2010 $ 264,734 $ -- $ 264,734 2009 $ -- $ -- $ -- Global X FTSE Nordic 30 ETF 2010 $ 2,158 $ -- $ 2,158 2009 $ -- $ -- $ -- 64 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 5. TAX INFORMATION (continued) As of October 31, 2010, the components of Distributable Earnings on a tax basis were as follows:
GLOBAL X SILVER GLOBAL X GLOBAL X COPPER MINERS ETF LITHIUM ETF MINERS ETF ------------- ------------ --------------- Undistributed Ordinary Income $ 2,989,314 $ 1,619,934 $ 367,992 Capital Loss Carryforwards -- -- (10,213) Unrealized Appreciation on Investments and Foreign Currency 26,532,154 5,620,698 400,798 Other Temporary Differences -- 13,433 -- ------------ ------------ ----------- Total Distributable Earnings $ 29,521,468 $ 7,254,065 $ 758,577 ============ ============ =========== GLOBAL X BRAZIL GLOBAL X BRAZIL GLOBAL X BRAZIL MID CAP ETF FINANCIALS ETF CONSUMER ETF --------------- --------------- --------------- Undistributed Ordinary Income $ 318,873 $ 13,826 $ 26,760 Capital Loss Carryforwards -- (3) -- Unrealized Appreciation on Investments and Foreign Currency 2,367,748 495,514 2,311,009 ------------ ------------ ----------- Total Distributable Earnings $ 2,686,621 $ 509,337 $ 2,337,769 ============ ============ =========== GLOBAL X/INTERBOLSA FTSE COLOMBIA GLOBAL X FTSE GLOBAL X CHINA 20 ETF NORDIC 30 ETF CONSUMER ETF -------------- -------------- -------------- Undistributed Ordinary Income $ 891,803 $ 150,580 $ 1,734,523 Undistributed Long-Term Capital Gain 456,069 -- -- Capital Loss Carryforwards -- (7,319) (173,208) Unrealized Appreciation on Investments and Foreign Currency 20,832,547 1,529,491 19,923,248 Other Temporary Differences -- 78 -- ------------ ------------ ----------- Total Distributable Earnings $ 22,180,419 $ 1,672,830 $21,484,563 ============ ============ =========== GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA ENERGY ETF FINANCIALS ETF INDUSTRIALS ETF -------------- -------------- --------------- Undistributed Ordinary Income $ 61,491 $ 1,177,309 $ 149,709 Capital Loss Carryforwards -- (626,459) (220,121) Unrealized Appreciation on Investments and Foreign Currency 155,823 2,240,678 540,341 ------------ ------------ ----------- Total Distributable Earnings $ 217,314 $ 2,791,528 $ 469,929 ============ ============ =========== GLOBAL X CHINA GLOBAL X CHINA TECHNOLOGY ETF MATERIALS ETF -------------- -------------- Undistributed Ordinary Income $ 45,879 $ 336,119 Unrealized Appreciation on Investments and Foreign Currency 493,901 10,604,595 ------------ ------------ Total Distributable Earnings $ 539,780 $ 10,940,714 ============ ============
65 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 5. TAX INFORMATION (concluded) For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward for a maximum period of eight years and applied against future gains. As of October 31, 2010, the Funds that had capital loss carryforwards are listed below.
GLOBAL X GLOBAL X GLOBAL X GLOBAL X GLOBAL X GLOBAL X COPPER BRAZIL FTSE CHINA CHINA CHINA MINERS FINANCIALS NORDIC 30 CONSUMER FINANCIALS INDUSTRIALS ETF ETF ETF ETF ETF ETF -------- ---------- --------- --------- ---------- ----------- Oct. 2018 $ 10,213 $ 3 $ 7,319 $ 173,208 $ 626,459 $ 220,121 -------- ------ ------- --------- --------- --------- Total $ 10,213 $ 3 $ 7,319 $ 173,208 $ 626,459 $ 220,121 ======== ====== ======= ========= ========= =========
The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at October 31, 2010 were as follows:
AGGREGATED AGGREGATED GROSS GROSS NET FEDERAL UNREALIZED UNREALIZED UNREALIZED GLOBAL X FUNDS TAX COST APPRECIATION DEPRECIATION APPRECIATION - -------------- ------------ ------------ ------------ ------------- Global X Silver Miners ETF $145,206,855 $27,326,430 $ (794,462) $26,531,968 Global X Lithium ETF 72,723,707 5,914,192 (294,077) 5,620,115 Global X Copper Miners ETF 29,587,819 705,573 (304,923) 400,650 Global X Brazil Mid Cap ETF 26,866,398 2,505,276 (138,138) 2,367,138 Global X Brazil Financials ETF 7,317,681 534,975 (39,565) 495,410 Global X Brazil Consumer ETF 22,676,493 2,511,479 (200,634) 2,310,845 Global X/InterBolsa FTSE Colombia 20 ETF 176,486,230 21,135,759 (299,148) 20,836,611 Global X FTSE Nordic 30 ETF 11,190,279 1,743,185 (214,094) 1,529,091 Global X China Consumer ETF 154,918,322 21,933,951 (2,011,276) 19,922,675 Global X China Energy ETF 4,571,416 314,902 (159,076) 155,826 Global X China Financials ETF 67,771,080 4,239,020 (1,998,480) 2,240,540 Global X China Industrials ETF 12,307,366 1,641,488 (1,101,858) 539,630 Global X China Technology ETF 3,810,056 737,701 (243,837) 493,864 Global X China Materials ETF 47,082,784 11,489,427 (884,906) 10,604,521
The preceding differences between book and tax cost are primarily due to mark to market treatment of passive foreign investment companies and wash sales. 6. CONCENTRATION OF RISKS The Funds invest in securities of foreign issuers in several countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries. The Funds may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. 66 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 7. OTHER At October 31, 2010, the total Shares outstanding that were held by Authorized Participants were as follows. The Authorized Participants have entered into an agreement with the Funds' Distributor. PERCENTAGE OF AUTHORIZED SHARES PARTICIPANTS OUTSTANDING ------------ ------------- Global X Silver Miners ETF 5 100% Global X Lithium ETF 4 100% Global X Copper Miners ETF 4 100% Global X Brazil Mid Cap ETF 3 100% Global X Brazil Financials ETF 3 100% Global X Brazil Consumer ETF 3 100% Global X/InterBolsa FTSE Colombia 20 ETF 5 100% Global X FTSE Nordic 30 ETF 4 100% Global X China Consumer ETF 5 100% Global X China Energy ETF 2 100% Global X China Financials ETF 4 100% Global X China Industrials ETF 2 100% Global X China Technology ETF 2 100% Global X China Materials ETF 4 100% Pursuant to the Trust's organizational documents, the Trustees of the Trust and the Trust's officers are indemnified against certain liabilities that may arise out of the performance of their duties. Additionally, in the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established. 8. NEW ACCOUNTING PRONOUNCEMENT In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about Fair Value Measurements." ASU No. 2010-06 amends FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair value measurements. Certain disclosures required by ASU No. 2010-06 are effective for interim and annual periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact ASU No. 2010-06 will have on the Funds' financial statement disclosure. 67 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES TO FINANCIAL STATEMENTS (CONCLUDED) OCTOBER 31, 2010 - -------------------------------------------------------------------------------- 9. SUBSEQUENT EVENT The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional disclosures or adjustments were required to the financial statements as of the date the financial statements were issued. Subsequent to year end, the following investment portfolios of the Trust commenced operations. FUND NAME COMMENCED OPERATIONS - --------- -------------------- Global X Gold Explorers ETF November 3, 2010 Global X Uranium ETF November 4, 2010 Global X FTSE Norway ETF November 9, 2010 68 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM OCTOBER 31, 2010 - -------------------------------------------------------------------------------- To the Shareholders and Board of Trustees of the Global X Funds We have audited the accompanying statement of assets and liabilities of the Global X Silver Miners ETF, Global X Lithium ETF, Global X Copper Miners ETF, Global X Brazil Mid Cap ETF, Global X Brazil Financials, Global X Brazil Consumer ETF, Global X/InterBolsa FTSE Colombia 20 ETF, Global X FTSE Nordic 30 ETF, Global X China Consumer ETF, Global X China Energy ETF, Global X China Financials ETF, Global X China Industrials ETF, Global X China Technology ETF, and Global X China Materials ETF, (each a series of the Global X Funds, (the "Trust') and collectively referred to as the "Funds") including the schedules of investments, as of October 31, 2010 and the related statements of operations, changes in net assets and financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities and cash owned as of October 31, 2010, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds, as of October 31, 2010, the results of their operations, changes in their net assets and the financial highlights for the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. Abington, Pennsylvania /s/ Sanville & Company December 23, 2010 ---------------------- 69 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands DISCLOSURE OF FUND EXPENSES (UNAUDITED) - -------------------------------------------------------------------------------- All Exchange Traded Funds ("ETF") have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, brokerage fees, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. Operating expenses such as these are deducted from an ETF's gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the ETF's average net assets; this percentage is known as the ETF's expense ratio. The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table on the next page illustrates your Fund's costs in two ways: ACTUAL FUND RETURN. This section helps you to estimate the actual expenses that your Fund incurred over the period. The "Expenses Paid During Period" column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the "Ending Account Value" number is derived from deducting that expense cost from the Fund's gross investment return. You can use this information, together with the actual amount you invested in the Funds, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Funds under "Expenses Paid During Period." HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with those of other funds. It assumes that the Funds had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund's comparative cost by comparing the hypothetical result for your Fund in the "Expense Paid During Period" column with those that appear in the same charts in the shareholder reports for other funds. NOTE: Because the return is set at 5% for comparison purposes -- NOT your Fund's actual return -- the account values shown may not apply to your specific investment. 70 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONCLUDED) - --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 05/01/10 10/31/10 RATIOS PERIOD - ------------------------------------------------------------------------------------------ GLOBAL X SILVER MINERS ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,336.90 0.65% $3.83(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X LITHIUM ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,278.50 0.75 2.39(2) HYPOTHETICAL 5% RETURN 1,000.00 1,021.42 0.75 3.82(1) - ------------------------------------------------------------------------------------------ GLOBAL X COPPER MINERS ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,221.90 0.65 3.64(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X BRAZIL MID CAP ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,205.80 0.69 2.77(3) HYPOTHETICAL 5% RETURN 1,000.00 1,021.68 0.69 3.52(1) - ------------------------------------------------------------------------------------------ GLOBAL X BRAZIL FINANCIALS ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,153.80 0.77 2.18(4) HYPOTHETICAL 5% RETURN 1,000.00 1,021.32 0.77 3.92(1) - ------------------------------------------------------------------------------------------ GLOBAL X BRAZIL CONSUMER ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,288.80 0.77 2.46(5) HYPOTHETICAL 5% RETURN 1,000.00 1,021.32 0.77 3.92(1) - ------------------------------------------------------------------------------------------ GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,395.40 0.86 5.19(1) HYPOTHETICAL 5% RETURN 1,000.00 1,020.87 0.86 4.38(1) - ------------------------------------------------------------------------------------------ GLOBAL X FTSE NORDIC 30 ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,091.41 0.50 2.64(1) HYPOTHETICAL 5% RETURN 1,000.00 1,022.68 0.50 2.55(1) - ------------------------------------------------------------------------------------------ GLOBAL X CHINA CONSUMER ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,165.00 0.65 3.55(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X CHINA ENERGY ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,069.40 0.65 3.39(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X CHINA FINANCIALS ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,099.80 0.65 3.44(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X CHINA INDUSTRIALS ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,148.10 0.65 3.52(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X CHINA TECHNOLOGY ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,109.60 0.65 3.46(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------ GLOBAL X CHINA MATERIALS ETF - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN 1,000.00 1,136.30 0.65 3.50(1) HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1) - ------------------------------------------------------------------------------------------
(1) EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED 184/365 (TO REFLECT THE ONE-HALF YEAR PERIOD.) (2) COMMENCED OPERATIONS ON JULY 22, 2010. EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 102/365 (TO REFLECT THE PERIOD FROM INCEPTION TO DATE.) (3) COMMENCED OPERATIONS ON JUNE 21, 2010. EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 133/365 (TO REFLECT THE PERIOD FROM INCEPTION TO DATE.) (4) COMMENCED OPERATIONS ON JULY 28, 2010. EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 96/365 (TO REFLECT THE PERIOD FROM INCEPTION TO DATE.) (5) COMMENCED OPERATIONS ON JULY 7, 2010. EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 117/365 (TO REFLECT THE PERIOD FROM INCEPTION TO DATE.) 71 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)\ - -------------------------------------------------------------------------------- Section 15(c) of the Investment Company Act of 1940, as amended ("1940 Act"), requires that each mutual fund's board of trustees, including a majority of those trustees who are not "interested persons" of the mutual fund, as defined in the 1940 Act ("Independent Trustees"), consider and approve the terms of the Funds' investment advisory agreement. At the June 4, 2010 quarterly meeting of the Trust's Board of Trustees ("Board"), the Board approved the initial (i) Investment Advisory Agreement between the Trust, on behalf of Global X Lithium ETF, Global X Brazil Mid Cap ETF, Global X Brazil Financials ETF, and Global X Brazil Consumer ETF (each a "New Fund," and, collectively, the "New Funds"), and Global X Management ("New Funds Advisory Agreement"); and (ii) Supervision and Administration Agreement between the Trust, on behalf of the New Funds, and Global X Management Company ("New Funds S&A Agreement"). At the August 27, 2010 quarterly meeting of the Board of Trustees of the Trust, the Board approved the continuation of the (i) Investment Advisory Agreement between the Trust, on behalf of Global X FTSE Nordic 30 ETF ("Nordic Fund"), and Global X Management ("Nordic Advisory Agreement"); and (ii) Supervision and Administration Agreement between the Trust, on behalf the Nordic Fund, and Global X Management Company ("Nordic S&A Agreement"). The New Funds Advisory Agreement and the New Funds S&A Agreement are referred to herein collectively as the "New Funds Agreements." The Nordic Advisory Agreement and the Nordic S&A Agreement are referred to herein collectively as the "Nordic Agreements." In advance of each of the Board meetings noted above, the Board (including the Independent Trustees) requested (in writing) detailed information from Global X Management Company ("Global X Management") in connection with their consideration of the New Funds Agreements and the Nordic Agreements and received and reviewed written responses from Global X Management and supporting materials relating to those requests for information. In determining to approve the New Funds Agreements the Board concluded that each agreement was fair and reasonable and in the best interests of each New Fund and its shareholders. In determining to approve the continuation of the Nordic Agreements the Board concluded that each agreement was fair and reasonable and in the best interests of the Nordic Fund and its shareholders. The Board considered the following categories of material factors, among others, relating to the New Funds Agreements and the Nordic Agreements. Based upon its review of these various factors, as well as other information considered by the Board, the Board concluded that approval of the New Funds Agreements and the continuation of the Nordic Agreements was in the best interests of the each New Fund and the Nordic Fund, respectively. In reaching this decision, the Board did not assign relative weights to the factors discussed below or deem any one factor or group of them to be controlling in and of themselves. The factors considered by the Board (including the Independent Trustees) with respect to the approval of the New Funds Agreements and the Nordic Agreements are discussed separately below. NEW FUNDS AGREEMENTS NATURE, EXTENT AND QUALITY OF SERVICES With respect to this factor, the Board considered: o the terms of the New Funds Agreements and the range of services to be provided to the New Funds in accordance with the New Funds Agreements; 72 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- o Global X Management's key personnel and the portfolio managers who would provide investment advisory services to the New Funds; o Global X Management's responsibilities under the New Funds Agreements to, among other things, (i) manage the investment operations of the New Funds and the composition of each New Fund's assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust's officers and Board, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by the New Funds, (iv) select broker-dealers to execute portfolio transactions for the New Funds when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the New Funds, the periodic updating of the registration statement, prospectuses, statement of additional information, and other reports and documents for the New Funds required to be filed by the Trust with the Securities and Exchange Commission ("SEC") and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including creation units) of the New Funds by shareholders and new investors; o the nature, extent and quality of Global X Management's services (including advisory, administrative and compliance services) for the existing Funds; and o the quality of Global X Management's resources and personnel that would be made available to the New Funds, including Global X Management's experience and the professional qualifications of Global X Management's key personnel. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the New Funds by Global X Management. PERFORMANCE The Board determined that because the New Funds had not started operations, meaningful data relating to investment performance was not available and, therefore, could not be a factor in approving the New Funds Agreements. COST OF SERVICES AND PROFITABILITY With respect to this factor, the Board considered: o Global X Management's cost to provide investment management, supervision and administrative and related services to the New Funds and the profitability to it, if any, from managing the New Funds; o the proposed advisory fees under the New Funds Advisory Agreement and the proposed fees under the New Funds S&A Agreement for each New Fund; and o the expected profitability to Global X Management, if any, from all services to be provided to the New Funds and all aspects of its relationships with the New Funds. In connection with these considerations, the Board noted that Global X Management advised the Board that it did not expect to generate any profits from its services to the New Funds during the first 12 months of their operation but expected to generate profits after that initial period. Based on these considerations, the Board concluded that the profits anticipated to be realized by Global X Management from its relationship with the New Funds would not be excessive. 73 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- COMPARISON OF FEES AND SERVICES With respect to this factor, the Board considered: o comparative information with respect to the proposed investment advisory fees to be paid to Global X Management by each of the New Funds. In connection with this consideration, Global X Management provided the Board with detailed comparative expense data for each of the New Funds, including fees and expenses paid by comparable specialized and/or focused exchange-traded funds and fees and expenses paid by other Funds that are series of the Trust under their unitary fee structure; o the proposed unitary fee structure (which includes as one component the proposed investment advisory fee for each New Fund) and the projected total expense ratios for each of the New Funds; and o that, under the New Funds S&A Agreement, Global X Management would be responsible for certain expenses of the New Funds. Based on these considerations, the Board concluded that the proposed advisory fee, proposed supervision and administrative fee, and total expense ratio of each New Fund should not preclude approval of the Agreements. ECONOMIES OF SCALE With respect to this factor, the Board considered: o the extent to which economies of scale would be realized as the New Funds grow and whether the proposed fees for each New Fund reflected these economies of scale; and o the significant investment of time, personnel and other resources that Global X Management intends to made in the New Funds in order to seek to assure that the New Funds are attractive to shareholders and investors. Based on these considerations, the Board concluded that approval of the proposed unitary fee for each New Fund was reasonable. OTHER BENEFITS In considering the New Funds Agreement, in addition to the categories discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with the New Funds. NORDIC AGREEMENTS NATURE, EXTENT AND QUALITY OF SERVICES With respect to this factor, the Board considered: o the terms of the Nordic Agreements and the range of services that would continue to be provided to the Nordic Fund in accordance with the Nordic Agreements; 74 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- o Global X Management's key personnel and the portfolio managers who would continue to provide investment advisory, supervision and administrative services to the Nordic Fund. In connection with these considerations, the Board noted that Global X Management had significantly increased its support staff since the inception of the Nordic Fund; o Global X Management's responsibilities under the Agreements, among other things, to: (i) manage the investment operations of the Nordic Fund and the composition of the Nordic Fund's assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust's officers and Board, (iii) vote proxies, exercise consents, and exercise all other rights relating to securities and assets held by the Nordic Fund, (iv) select broker-dealers to execute portfolio transactions for the Nordic Fund when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the Nordic Fund, the periodic updating of the registration statement, prospectuses, statement of additional information, and other reports and documents for the Nordic Fund required to be filed by the Trust with the SEC and other regulatory and governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including creation units) of the Nordic Fund by shareholders and new investors; o the nature, extent and quality of the all of the services (including advisory, administrative and compliance services) that have been provided by Global X Management to the Nordic Fund and the adequacy of Global X Management's personnel resources that would continue to be made available to the Nordic Fund; and o Global X Management's experience and the professional qualifications of Global X Management's key personnel. Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Nordic Funds by Global X Management. PERFORMANCE With respect to this fact, the Board considered the Nordic Fund's total return and investment performance relative to (i) the average performance of mutual funds in the same classification as the Funds, as determined by third party services that rank mutual fund performance; and (ii) the performance of comparable funds, pertinent indexes, and pertinent mutual fund performance rankings. In connection with these considerations, the Board received and reviewed information that in the period from inception, August 17, 2009, to August 13, 2010, the Nordic Fund achieved total returns of 13.87%, versus 15.17% for the underlying index, the FTSE Nordic 30 Total Return Index. The Board considered that part of the performance difference is attributable to management fees and transaction cost. In addition, the Board considered that although Global X Management followed a replication strategy, perfect replication is impractical in light of transaction costs. Based on these considerations and comparisons, the Board concluded that the investment performance of the Nordic Fund did not adversely affect the Board approval of the continuance of the Nordic Agreements. 75 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONCLUDED) - -------------------------------------------------------------------------------- COST OF SERVICES AND PROFITABILITY The Board considered that Global X Management's cost to provide investment management and related services to the Nordic Fund and the expected profitability to it from managing the Nordic Fund and all aspects of its relationships with the Nordic Fund. The Board received and reviewed information that disclosed that Global X Management did not generate any profits from its services to the Nordic Fund since its inception date to July 31, 2010. The Board considered that it was expected that the Nordic Fund would continue not to generate profits for Global X Management. Based on these considerations, the Board concluded that the profits anticipated to be realized, if any, by Global X Management from its relationship with the Nordic Fund would not be excessive and supported approval of the continuance of the Nordic Fund. COMPARISON OF FEES AND SERVICES With respect to this factor, the Board considered: o comparative expense data for the Nordic Fund, including fees and expenses paid by comparable emerging market, frontier country and regional focused exchange-traded funds. In connection with this consideration, Global X Management provided the Board with detailed comparative expense data for Nordic Fund, including fees and expenses paid by other Funds that are series of the Trust under their unitary fee structure; o the proposed unitary fee structure (which includes as one component the proposed investment advisory fee for each New Fund) and the current total expense ratio for the Nordic Fund; and o that, under the Nordic S&A Agreement, Global X Management would continue to be responsible for certain expenses of the Nordic Fund, including the cost of transfer agency, custody, fund administration, legal, audit, and other services for the Nordic Fund, except taxes and governmental fees, brokerage fees, commissions and other transaction expenses, costs of borrowing money, including interest expenses and extraordinary expenses (such as litigation and indemnification expenses). Based on these considerations, the Board concluded that the advisory fee, supervision and administrative fee, and total expense ratio of the Nordic Fund supported approval of the continuation of the Nordic Agreements. ECONOMIES OF SCALE The Board considered the extent to which economies of scale would be realized if the Nordic Fund grows and whether the fees for the Nordic Fund reflected these economies of scale. Based on these considerations, the Board concluded that approval of the continuation of the unitary fee was reasonable. OTHER BENEFITS The Board considered any other benefits realized by Global X Management as a result from its relations relationships with the Nordic Fund and concluded that all information it considered supported approval of the continuation of the Nordic Agreements. 76 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SUPPLEMENTAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- Net asset value, or "NAV", is the price per Share at which the Funds issue and redeems Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The "Market Price" of the Funds generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds are listed for trading, as of the time that the Funds' NAV is calculated. The Funds' Market Price may be at, above or below their NAV. The NAV of the Funds will fluctuate with changes in the market value of their Funds holdings. The Market Price of the Funds will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Funds on a given day, generally at the time NAV is calculated. A premium is the amount that the Funds are trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Funds are trading below the reported NAV, expressed as a percentage of the NAV. The following information shows the frequency distributions of premiums and discounts for the Funds. The information shown is for the full calendar quarter completed after the inception date through the date of the most recent calendar quarter end. Information for the Global X Lithium ETF, Global X Brazil Financials ETF and the Global X Brazil Consumer ETF, showing the frequency distributions of premiums and discounts for the Funds are not presented as they did not have a full quarter of information as of October 31, 2010. Each line in the table shows the number of trading days in which the Funds traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results. 77 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
PERCENTAGE OF TOTAL DAYS ---------------------------------------------------------------------------- GLOBAL GLOBAL X GLOBAL X X/INTERBOLSA GLOBAL X GLOBAL X SILVER COPPER GLOBAL X FTSE FTSE CHINA MINERS MINERS BRAZIL MID COLOMBIA 20 NORDIC 30 CONSUMER PREMIUM/DISCOUNT RANGE ETF(1) ETF(1) CAP ETF(2) ETF(3) ETF(4) ETF(5) - ------------------------------------------------------------------------------------------------------------------- Greater than 3.0% and Less than 3.5% - - - - - - Greater than 2.5% and Less than 3.0% - - 2.20% - - 0.88% Greater than 2.0% and Less than 2.5% - - 21.98% 0.40% - 2.65% Greater than 1.5% and Less than 2.0% - - 68.13% 0.40% 1.22% 6.64% Greater than 1.0% and Less than 1.5% 1.52% - 6.59% 6.07% 2.44% 14.16% Greater than 0.5% and Less than 1.0% 16.67% 25.00% 1.10% 18.62% 12.60% 27.88% Between 0.5% and -0.5% 69.70% 56.82% - 34.82% 44.31% 22.12% Less than -0.5% and Greater than -1.0% 12.11% 13.64% - 21.05% 29.27% 12.83% Less than -1.0% and Greater than -1.5% - 4.54% - 9.72% 9.35% 5.31% Less than -1.5% and Greater than -2.0% - - - 6.88% 0.81% 4.42% Less than -2.0% and Greater than -2.5% - - - 1.63% - 2.21% Less than -2.5% and Greater than -3.0% - - - 0.41% - 0.45% Less than -3.0% and Greater than -3.5% - - - - - 0.45% ---------------------------------------------------------------------------- Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% ---------------------------------------------------------------------------- NUMBER OF DAYS ---------------------------------------------------------------------------- GLOBAL GLOBAL X GLOBAL X X/INTERBOLSA GLOBAL X GLOBAL X SILVER COPPER GLOBAL X FTSE FTSE CHINA MINERS MINERS BRAZIL MID COLOMBIA 20 NORDIC 30 CONSUMER PREMIUM/DISCOUNT RANGE ETF(1) ETF(1) CAP ETF(2) ETF(3) ETF(4) ETF(5) - ------------------------------------------------------------------------------------------------------------------- Greater than 3.0% and Less than 3.5% - - - - - - Greater than 2.5% and Less than 3.0% - - 2 - - 2 Greater than 2.0% and Less than 2.5% - - 20 1 - 6 Greater than 1.5% and Less than 2.0% - - 62 1 3 15 Greater than 1.0% and Less than 1.5% 2 - 6 15 6 32 Greater than 0.5% and Less than 1.0% 22 33 1 46 31 63 Between 0.5% and -0.5% 92 75 - 86 109 50 Less than -0.5% and Greater than -1.0% 16 18 - 52 72 29 Less than -1.0% and Greater than -1.5% - 6 - 24 23 12 Less than -1.5% and Greater than -2.0% - - - 17 2 10 Less than -2.0% and Greater than -2.5% - - - 4 - 5 Less than -2.5% and Greater than -3.0% - - - 1 - 1 Less than -3.0% and Greater than -3.5% - - - - - 1 ---------------------------------------------------------------------------- Total 132 132 91 247 246 226 ----------------------------------------------------------------------------
78 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands SUPPLEMENTAL INFORMATION (UNAUDITED) (CONCLUDED) - --------------------------------------------------------------------------------
PERCENTAGE OF TOTAL DAYS --------------------------------------------------------------------- GLOBAL X GLOBAL X GLOBAL X GLOBAL X GLOBAL X CHINA CHINA CHINA CHINA CHINA ENERGY FINANCIALS INDUSTRIALS TECHNOLOGY MATERIALS PREMIUM/DISCOUNT RANGE ETF(6) ETF(7) ETF(5) ETF(8) ETF(9) - ------------------------------------------------------------------------------------------------------------ Greater than 3.0% and Less than 3.5% - - - - - Greater than 2.5% and Less than 3.0% - 1.36% 0.88% - 0.51% Greater than 2.0% and Less than 2.5% 1.84% 2.27% 2.63% - 2.53% Greater than 1.5% and Less than 2.0% 2.30% 5.00% 3.51% - 4.55% Greater than 1.0% and Less than 1.5% 11.06% 11.82% 11.84% 4.05% 11.62% Greater than 0.5% and Less than 1.0% 20.28% 22.73% 20.61% 15.32% 23.74% Between 0.5% and -0.5% 28.11% 22.73% 27.19% 44.14% 22.73% Less than -0.5% and Greater than -1.0% 17.51% 17.73% 16.23% 26.58% 15.66% Less than -1.0% and Greater than -1.5% 7.37% 6.36% 6.58% 6.76% 8.08% Less than -1.5% and Greater than -2.0% 6.91% 4.09% 5.26% 3.15% 4.54% Less than -2.0% and Greater than -2.5% 2.76% 2.27% 1.75% - 3.53% Less than -2.5% and Greater than -3.0% 1.39% 1.82% 3.07% - 1.51% Less than -3.0% and Greater than -3.5% 0.47% 1.82% 0.45% - 1.00% --------------------------------------------------------------------- Total 100.00% 100.00% 100.00% 100.00% 100.00% --------------------------------------------------------------------- NUMBER OF DAYS --------------------------------------------------------------------- GLOBAL X GLOBAL X GLOBAL X GLOBAL X GLOBAL X CHINA CHINA CHINA CHINA CHINA ENERGY FINANCIALS INDUSTRIALS TECHNOLOGY MATERIALS PREMIUM/DISCOUNT RANGE ETF(6) ETF(7) ETF(5) ETF(8) ETF(9) - ------------------------------------------------------------------------------------------------------------ Greater than 3.0% and Less than 3.5% - - - - - Greater than 2.5% and Less than 3.0% - 3 2 - 1 Greater than 2.0% and Less than 2.5% 4 5 6 - 5 Greater than 1.5% and Less than 2.0% 5 11 8 - 9 Greater than 1.0% and Less than 1.5% 24 26 27 9 23 Greater than 0.5% and Less than 1.0% 44 50 47 34 47 Between 0.5% and -0.5% 61 50 62 98 45 Less than -0.5% and Greater than -1.0% 38 39 37 59 31 Less than -1.0% and Greater than -1.5% 16 14 15 15 16 Less than -1.5% and Greater than -2.0% 15 9 12 7 9 Less than -2.0% and Greater than -2.5% 6 5 4 - 7 Less than -2.5% and Greater than -3.0% 3 4 7 - 3 Less than -3.0% and Greater than -3.5% 1 4 1 - 2 --------------------------------------------------------------------- Total 217 220 228 222 198 ---------------------------------------------------------------------
(1) The Fund commenced operations on April 19, 2010. (2) The Fund commenced operations on June 21, 2010. (3) The Fund commenced operations on February 5, 2009. (4) The Fund commenced operations on August 17, 2009. (5) The Fund commenced operations on November 30, 2009. (6) The Fund commenced operations on December 15, 2009. (7) The Fund commenced operations on December 10, 2009. (8) The Fund commenced operations on December 8, 2009. (9) The Fund commenced operations on January 12, 2010. 79 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) - -------------------------------------------------------------------------------- Set forth below are the names, addresses, ages, position with the Trust, Term of Office and Length of Time Served, the principal occupations for the last five years, number of Funds in fund complex overseen by trustee, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.
- ------------------------------------------------------------------------------------------------------------- NAME, ADDRESS POSITION(S) NUMBER OF FUNDS OTHER DIRECTORSHIPS (YEAR OF HELD PRINCIPAL OCCUPATION(S) DURING IN TRUST OVERSEEN HELD BIRTH) WITH FUNDS THE PAST 5 YEARS BY DIRECTOR BY TRUSTEES - ------------------------------------------------------------------------------------------------------------- INDEPENDENT TRUSTEES(2) - ------------------------------------------------------------------------------------------------------------- Sanjay Director President of Risk Advisors Inc. (since 14(3) Director of Kellton Ram (since 2008) 2007); Chief Information Officer, M. Financial Services Bharwani Safra & Co (2004-2006). (since 2009). 410 Park Ave, 4th floor New York, NY 10022 (1974) - ------------------------------------------------------------------------------------------------------------- Scott R. Director Founder and President, DirectPay USA 14(3) None. Chichester(1) (since 2008) LLC (since 2006); Chief Financial 410 Park Officer, Ong Corporation (2002-2008). Ave, 4th floor New York, NY 10022 (1970) - ------------------------------------------------------------------------------------------------------------- Kartik Director Senior Product Manager, Wireless 14(3) None. Kiran Shah (since 2008) Generation (since 2008). 410 Park Ave, 4th floor New York, NY 10022 (1977) - -------------------------------------------------------------------------------------------------------------
80 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- The Trust's Statement of Additional Information ("SAI") includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The following chart lists Trustees and Officers as of October 31, 2010.
- ------------------------------------------------------------------------------------------------------------ NUMBER OF FUNDS PRINCIPAL OCCUPATION(S) IN TRUST OTHER NAME, ADDRESS POSITION(S) HELD DURING OVERSEEN BY DIRECTORSHIPS HELD (YEAR OF BIRTH) WITH FUNDS THE PAST 5 YEARS DIRECTOR BY TRUSTEES - ------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE / OFFICERS(2) - ------------------------------------------------------------------------------------------------------------ Bruno del Ama Director (since 2008), Chief Executive Officer, Global 14(3) None. 410 Park Ave, President, Chief X Management Company LLC 4th floor Executive Officer (since 2008); Head of Global New York, NY (since 2008) Structured Products Operations 10022 at Radian Asset Assurance (1976) (2004-2008). - ------------------------------------------------------------------------------------------------------------ Jose C. Gonzalez Chief Operating Chief Operating Officer, Global N/A N/A 410 Park Ave, Officer, Chief X Management Company LLC 4th floor Compliance Officer (since 2008); Founder and New York, NY and Chief Financial President of GWM Group, Inc. 10022 Officer, Secretary (since 2006); Financial Advisor, (1976) (since 2008) Broad Street Securities, Inc. (2004-2006). - ------------------------------------------------------------------------------------------------------------ Joseph Gallo(4) Assistant Secretary Corporate Counsel of Sub- N/A N/A One Freedom Administrator (since 2007); Valley Drive Associate Counsel, ICMA Oaks, PA 19456 Retirement Corporation (2004- (1973) 2007). - ------------------------------------------------------------------------------------------------------------
81 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONCLUDED) - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------- OTHER DIRECTORSHIPS NAME, ADDRESS POSITION(S) HELD PRINCIPAL OCCUPATION(S) DURING HELD (YEAR OF BIRTH) WITH FUNDS THE PAST 5 YEARS BY TRUSTEES - ---------------------------------------------------------------------------------------------------- Stephen Panner(4) Assistant Treasurer Fund Accounting Director of the N/A One Freedom Valley Drive Sub-Administrator since 2005. Oaks, PA 19456 Fund Administration Manager, (1970) Old Mutual Fund Services, 2000- 2005. Chief Financial Officer, Controller and Treasurer, PBHG Funds and PBHG Insurance Series Fund, 2004-2005. Assistant Treasurer. - ----------------------------------------------------------------------------------------------------
(1) Mr. Chichester is currently married to a sister of Mr. del Ama's wife. While an "immediate family member" as defined in Section 2(a) (19) of the 1940 Act of Mr. del Ama would be considered an Interested Person, Mr. Chichester is not considered an immediate family member for this purpose. Although this fact was taken into consideration in determining whether Mr. Chichester should be considered to be an independent trustee for purposes of the Section 2(a)(19) of the 1940 Act, it was determined that this relationship was not one that should disqualify Mr. Chichester from serving as an independent trustee of the Trust. (2) Each Trustee serves until his or her successor is duly elected or appointed and qualified. (3) As of October 31, 2010, the Trust had thirty-nine investment portfolios, fourteen of which were operational. As of November 9, 2010, the Trust had 17 investment portfolios that were operational. See "ORGANIZATION" section of the Notes to the Financial Statements herein for additional information. (4) These officers of the Trust also serve as officers of one or more mutual funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor. 82 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTICE TO SHAREHOLDERS (UNAUDITED) - -------------------------------------------------------------------------------- For shareholders that do not have an October 31, 2010 tax year end, this notice is for informational purposes only. For shareholders with an October 31, 2010 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended October 31, 2010, the Funds are designating the following items with regard to distributions paid during the year.
QUALIFYING FOR SHORT- CORPORATE TERM LONG-TERM ORDINARY DIVIDENDS QUALIFYING INTEREST CAPITAL CAPITAL GAIN INCOME TOTAL RECEIVED DIVIDEND RELATED GAIN DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DEDUCTION(1) INCOME(2) DIVIDENDS(3) DIVIDENDS(4) ------------- --------------------------- -------------- ----------- -------------- -------------- Global X/InterBolsa FTSE Colombia 20 ETF 0.00% 100.00% 100.00% 1.54% 19.92% 0.00% 100.00% Global X FTSE Nordic 30 ETF 0.00% 100.00% 100.00% 0.00% 93.60% 0.00% 100.00%
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). (2) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Relief Reconciliation Act of 2003 and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law. (3) The percentage in this column represents the amount of "Interest Related Dividends" as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of net investment income distributions that is exempt from U.S. withholding tax when paid for foreign investors. (4) The percentage in this column represents the amount of "Short-Term Capital Gain Dividends" as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of short-term capital gain distributions that is exempt from U.S. withholding tax when paid to foreign investors. The Fund intends to pass through a foreign tax credit to shareholders. For the fiscal year ended October 31, 2010, the total amount of foreign source income and foreign tax credit are as follows: FOREIGN TAX FOREIGN SOURCE CREDIT PASS INCOME THROUGH -------------- ---------- Global X Copper Miners ETF $ 16,774 $ 685 Global X/InterBolsa FTSE Colombia 20 ETF 457,874 57,643 Global X FTSE Nordic 30 ETF 164,711 31,543 Global X China Consumer ETF 710,727 6,286 Global X China Energy ETF 64,884 6,189 Global X China Financials ETF 1,284,544 108,977 Global X China Industrials ETF 154,579 12,682 Global X China Technology ETF 20,742 1,857 Global X China Materials ETF 134,379 7,335 The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2010. Complete information will be computed and reported in conjunction with your 2010 Form 1099-DIV. 83 [LOGO OMITTED] GLOBAL FUNDS The World in your Hands NOTES - -------------------------------------------------------------------------------- [LOGO OMITTED] GLOBAL FUNDS The World in your Hands 410 Park Ave, 4th floor New York, NY 10022 1-888-GXFund-1 (1-888-493-8631) www.globalxfunds.com INVESTMENT ADVISER: Global X Management Company LLC 410 Park Ave, 4th floor New York, NY 10022 DISTRIBUTOR: SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456 SUB-ADMINISTRATOR: SEI Investments Global Funds Services One Freedom Valley Drive Oaks, PA 19456 COUNSEL FOR THE INDEPENDENT TRUSTEES: Dechert LLP 1175 I Street N.W. Washington, DC 20007 This information must be preceded or accompanied by a current prospectus for the Funds described. GLX-AR-001-0200 ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a)(1) The registrant's board of trustees has determined that the registrant has at least one audit committee financial expert serving on the audit committee. (a)(2) The audit committee financial expert is Scott Chichester and is independent as defined in Form N-CSR Item 3(a)(2). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Fees billed by Sanville & Company related to the Trust. Sanville & Company billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years was as follows:
- ------------------ ----------------------------------------------------- ----------------------------------------------------- 2010 2009 - ------------------ ----------------------------------------------------- ----------------------------------------------------- - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- All fees and All fees and All other fees All fees and All fees and All other fees services to the services to and services to services to the services to and services to Trust that were service service Trust that were service service pre-approved affiliates that affiliates that pre-approved affiliates that affiliates that were did not require were did not require pre-approved pre-approval pre-approved pre-approval - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (a) Audit $112,000 $0 $0 $31,000 $0 $0 Fees(1) - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (b) Audit-Related $0 $0 $0 $0 $0 $0 Fees - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (c) Tax Fees $0 $0 $0 $0 $0 $0 - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- (d) All $0 $0 $0 $0 $0 $0 Other Fees - ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(e)(1) Not applicable. (e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows Sanville & Company: ---------------------------- ----------------- ---------------- 2010 2009 ---------------------------- ----------------- ---------------- ---------------------------- ----------------- ---------------- Audit-Related Fees 0% 0% ---------------------------- ----------------- ---------------- ---------------------------- ----------------- ---------------- Tax Fees 0% 0% ---------------------------- ----------------- ---------------- ---------------------------- ----------------- ---------------- All Other Fees 0% 0% ---------------------------- ----------------- ---------------- (f) Not applicable. (g) The aggregate non-audit fees and services billed by Sanville & Company for the last two fiscal years were $0 and $0 for 2010 and 2009, respectively. (h) During the past fiscal year, all non-audit services provided by Registrant's principal accountant to either Registrant's investment adviser or to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant were pre-approved by the audit committee of Registrant's Board of Trustees. Included in the audit committee's pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to open-end management investment companies. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to open-end management investment companies. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to open-end management investment companies. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005 ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to open-end management investment companies. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes. ITEM 11. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. ITEMS 12. EXHIBITS. (a)(1) Not applicable for semi-annual report. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) The Global X Funds By (Signature and Title)* /s/ Bruno del Ama ----------------- Bruno del Ama President Date: December 23, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Bruno del Ama ----------------- Bruno del Ama President Date: December 23, 2010 By (Signature and Title)* /s/ Jose C. Gonzalez -------------------- Jose C. Gonzalez CFO Date: December 23, 2010 * Print the name and title of each signing officer under his or her signature. EX-99.CODE ETH 2 ex-code.txt APPENDIX J CODE OF ETHICS I. INTRODUCTION. The Board of Trustees (the "Board") of Global X Funds (the "Company"), in accordance with Rule 17j-1 under the Investment Company Act of 1940, as amended (the "1940 Act"), has approved and adopted this Code of Ethics (the "Code") and has determined that this Code is reasonably designed to prevent Access Persons, as defined herein, from engaging in conduct prohibited by Rule 17j-1. This Code also sets forth the general fiduciary principles to which all of the Company's Access Persons are subject and establishes reporting requirements for Access Persons. Certain capitalized terms used in this Code and not defined in the text herein, such as "Access Persons," are defined in Appendix A. A. About the Company and the Advisor The Company is a registered investment company that consists of multiple investment portfolios of exchange-traded funds, each of which is hereinafter referred to as a "Fund." Global X Management Company LLC (the "Advisor") is the investment adviser for the Funds. In managing the Funds, the Advisor employs a passive, or indexing, strategy which seeks to replicate, for each Fund's investment portfolio, the composition of each Fund's benchmark index (the "Underlying Index"). The composition of each Underlying Index is maintained by a third party (the "Index Provider") that is unaffiliated with the Advisor or the Company. The Index Provider alone decides the component securities in each Underlying Index. SEI Investments Distribution Co. (the "Distributor") serves as the distributor of creation units for each Fund on an agency basis. In adopting this Code, the Board took into consideration all of these facts. B. Who is covered by the Code This Code applies to all Access Persons of the Company, which includes all Trustees of the Company (both Interested Trustees and Independent Trustees), and all officers of the Company II. STATEMENT OF GENERAL FIDUCIARY PRINCIPLES. The Company requires that its Trustees, officers and Access Persons conduct their personal investment activities in accordance with the following general fiduciary principles: o the duty at all times to place the interests of the Company's shareholders first; o the requirement that all personal securities transactions must be conducted consistent with this Code and in such a manner as to avoid any actual or potential conflict of interest or any abuse of an individual's position of trust and responsibility; and o the fundamental standard that Company personnel should not take inappropriate advantage of their positions. In view of the foregoing, the Company has determined to adopt this Code to specify a code of conduct for certain types of personal securities transactions which might involve conflicts of interest or an appearance of impropriety and to establish reporting requirements and enforcement procedures. III. RESTRICTIONS ON PERSONAL INVESTING ACTIVITIES. A. General Policy No Access Person shall, in connection with the direct or indirect purchase or sale of a Security "held or to be acquired" by a Fund: o employ any device, scheme or artifice to defraud the Funds; o make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements, in light of the circumstances under which they are made, not misleading; o engage in any act, practice or course of business that operates or would operate as a fraud or deceit upon the Funds; or o engage in any manipulative practice with respect to the Funds. B. Prohibition Against Insider Trading Access Persons and the members of their Family/Household are prohibited from engaging in, or helping others engage in, insider trading. Generally, the "insider trading" doctrine under U.S. federal securities laws prohibits any person (including investment advisers) from knowingly or recklessly breaching a duty owed by that person by: (1) trading while in possession of material, nonpublic information; (2) communicating ("tipping") such information to others; (3) recommending the purchase or sale of securities on the basis of such information; or (4) providing substantial assistance to someone who is engaged in any of the above activities. This means that Access Persons and members of their Family/Household may not trade with respect to a particular security or issuer at a time when that person knows or should know that he or she is in possession of material nonpublic information about the issuer or security. Information is considered "material" if there is a substantial likelihood that a reasonable investor would consider it important in making his or her investment decisions, or if it could reasonably be expected to affect the price of a company's securities, such as information about a drug trial or clinical testing results. Material information can also relate to events or circumstances affecting the market for a company's securities such as information about an expected government ruling or regulation that can affect the business of a company in which a Fund invests. Information is considered nonpublic until such time as it has been disseminated in a manner making it available to investors generally (e.g., through national business and financial news wire services). C. Pre-clearance of Investments in IPOs or Limited Offerings. Access Persons who also meet the definition of Investment Personnel may not directly or indirectly acquire Beneficial Ownership in any Securities in an IPO or Limited Offering without obtaining, in advance of the transaction, clearance from the Advisor's Chief Compliance Officer ("CCO"). In order to obtain pre-clearance, a person meeting the definition of Investment Personnel must complete and submit to the CCO a Personal Trade Request Form (a "PTR") which is included as Appendix B. The CCO must review each request for approval and record the decision regarding the request. The general standards for granting or denying pre-clearance are discussed below, although the CCO retains authority to grant pre-clearance in exceptional circumstances for good cause. If pre-clearance is obtained, the approval is valid for the day on which it is granted and the immediately following business day. The CCO may revoke a pre-clearance any time after it is granted and before the transaction is executed. Pre-clearance will typically not be given to an Access Person to purchase or sell any IPO or Limited Offering of an issuer (i) if such Security is a component Security in an Underlying Index, on a day when the Security is "being considered for purchase or sale" by a Fund or (ii) if such Security is not a component Security in an Underlying Index but public notice has been given that such Security will be added to, or removed from, an Underlying Index, until such time as the applicable Fund completes the reconstitution of its portfolio to replicate the Security's weighting in the Underlying Index. D. Restrictions on Personal Securities Transactions For Access Persons Other than Independent Trustees and Distributor Access Persons Each Access Person shall direct his or her broker to supply to the CCO, on a timely basis, duplicate copies of confirmations of all Securities transactions, other than for Exempt Securities, in which the person has, or by reason of such transaction acquires, any direct or indirect Beneficial Ownership and copies of periodic statements for all securities accounts (1) Pre-clearance Access Persons may not buy or sell Securities, other than Exempt Securities, for any account in which he or she has any direct or indirect Beneficial Ownership, unless such person obtains, in advance of the transaction, clearance for that transaction from the Company's CCO or his designee. The CCO has designated the Advisor's CCO as the person responsible for reviewing and granting pre-clearance requests under the Code. The general standards for granting or denying pre-clearance are discussed below, although the CCO retains authority to grant pre-clearance in exceptional circumstances for good cause. Pre-clearance must be obtained for all Securities, except Exempt Securities, that either (i) are included as a component Security in an Underlying Index or (ii) for which public notice has been given that such Security will be added to, or deleted from, an Underlying Index. In order to obtain pre-clearance, an Access Person must complete and submit to the CCO a PTR. If the transaction is approved by the CCO, that approval is valid for the day on which it is granted and the immediately following business day. The CCO may revoke a pre-clearance any time after it is granted and before the transaction is executed. Pre-clearance will typically not be given to purchase or sell any Security of an issuer (i) if such Security is a component Security in an Underlying Index, on a day when the Security is being considered for purchase or sale by a Fund or (ii) if such Security is not a component Security in an Underlying Index but public notice has been given that such Security will be added to, or deleted from, an Underlying Index, until such time as the applicable Fund completes the reconstitution of its portfolio to replicate the Security's weighting in the Underlying Index. (2) Prohibition on Short-Term Trading Access Persons may not purchase or sell, or sell and purchase, within any period of 30 calendar days, a Security, other than an Exempt Security, held by a Fund. If any such transactions occur, the Company will require any profits from the transactions to be disgorged for donation by the Company to charity. In applying the 30 calendar day holding period, the Company will apply the "last-in, first-out" methodology. (3) Prohibition on Short Sales and Similar Transactions. Access Persons may not purchase a put option or sell a call option, sell short or otherwise take a short position, either directly or through any Beneficial Ownership, in any Security held by any Fund. E. Restrictions on Personal Securities Transactions by Access Persons who are Independent Trustees. The Company recognizes that Independent Trustees do not have on-going, day-to-day involvement with the operations of the Company and are not involved in decisions regarding Fund portfolio transactions. In addition, it is the practice of the Company to give information about Securities purchased or sold by each Fund, or considered for purchase and sale by each Fund, to Independent Trustees in materials circulated more than 15 days after such Securities are purchased or sold by a Fund or are considered for purchase or sale by a Fund. Accordingly, the Company believes that less stringent controls are appropriate for Independent Trustees, as follows: 1. The Securities pre-clearance requirement contained in paragraph III.D.l. and the short-term trading and short sale restrictions in paragraphs III.D.2 and III.D.3 above shall only apply to an Independent Trustee if he or she knew or, in the ordinary course of fulfilling his or her official duties as a director, should have known, that at the time of his or her transaction in a Security (other than an Exempt Security) or during the 15-day period before that transaction, that the Security was also purchased or sold by a Fund or considered for the purchase or sale by a Fund. 2. If the pre-clearance provisions of the preceding paragraph apply, no pre-clearance will be given to an Independent Trustee to purchase or sell any Security of an issuer (i) if such Security is a component Security in an Underlying Index, on a day when the Security is being considered for purchase or sale by a Fund; (ii) if such Security is not a component Security in an Underlying Index but public notice has been given that such Security will be added to, or deleted from, an Underlying Index, until such time as the applicable Fund completes the reconstitution of its portfolio to replicate the Security's weighting in the Underlying Index; or (iii) when the CCO has been advised by the Advisor that the same Security is being considered for purchase or sale for a Fund. IV. REPORTING REQUIREMENTS AND PROCEDURES. In order to provide the Company with information to enable it to determine with reasonable assurance whether the provisions of this Code are being observed by its Access Persons, the following reporting requirements regarding personal securities transactions apply. A. Reporting Requirements for Access Persons Other than Independent Trustees and Distributor Access Persons (1) Initial and Annual Holdings Reports: Within ten days after a person becomes an Access Person, and annually thereafter, such person shall submit to the CCO a completed Initial/Annual Holdings Report substantially in the form attached hereto as Appendix C. Each holdings report must contain, at a minimum, (a) the title and type of Security, and, as applicable, the exchange ticker symbol or CUSIP number, number of shares and principal amount of each Security (other than an Exempt Security) in which the person has any direct or indirect beneficial ownership; (b) the name of any broker, dealer or bank with whom the person maintains an account in which any Securities other than Exempt Securities are held for the person's direct or indirect benefit; and (c) the date the person submits the report. The Initial Holdings Report must be current as of a date no more than 45 days prior to the date the person became an Access Person and the Annual Holdings Report shall be submitted no later than January 31 and must be current as of a date no more than 45 days prior to the date the report is submitted. (2) Quarterly Report: Each Access Person shall submit reports substantially in the form attached hereto as Appendix D to the CCO, showing all transactions in Securities (other than Exempt Securities) in which the person has, or by reason of such transaction acquires, any direct or indirect beneficial ownership, as well as all accounts established with brokers, dealers or banks during the quarter in which any Securities, other than Exempt Securities, were held for the direct or indirect beneficial interest of the person. Such reports shall be filed no later than 30 days after the end of each calendar quarter. An Access Person need not make a quarterly transaction report under this paragraph if all of the information required by this paragraph is contained in the brokerage confirmations or account statements required to be submitted under III.D above. The Report must include the date on which such report was submitted to the CCO. B. Reporting Requirements for Independent Trustees An Independent Trustee need not make an initial or annual holdings report described in paragraph IV.A.1 above and shall only be required to submit the quarterly report required under paragraph IV.A.2 for a transaction in a Security (other than an Exempt Security) where he or she knew (or should have known) at the time of the transaction or, in the ordinary course of fulfilling his or her official duties as a director, should have known that during the 15-day period immediately preceding or after the date of the transaction, such Security is or was purchased or sold, or considered for purchase or sale, by a Fund. V. ADMINISTRATION OF THE CODE. A. The CCO's Duties and Responsibilities. (1) The CCO shall promptly provide all persons covered by this Code with a copy of the Code. In addition, all persons covered by this Code must complete the Acknowledgment included as Appendix E within ten days of becoming subject to this Code and must submit an Acknowledgment to the CCO by January 31 each year thereafter; (2) The CCO shall identify all Access Persons and inform them of their reporting obligations promptly. (3) In determining whether to approve a PTR, the CCO will determine, in good faith, whether the Access Person knew, or should have known, that a Fund had engaged in a transaction involving, or was contemplating a transaction involving, such a Security with 15 days of the PTR. The CCO must maintain a record of any decision relating to pre-clearance requests, and the reasons supporting the decision, for at least five years after the end of the fiscal year in which the approval is granted; (4) The CCO will, on a quarterly basis, compare all reported personal securities transactions with the Funds' completed portfolio transactions during the quarter to determine whether a Code violation may have occurred. The CCO may request additional information or take any other appropriate measure that he or she decides is necessary to aid in this determination; (5) If the CCO finds that a Code violation may have occurred, the CCO must report the possible violation to the Board; (6) The CCO will submit his or her own reports (as required) to an alternate compliance officer who will fulfill the duties of the CCO with respect to such reports; and (7) At least annually, the CCO must furnish to the Board, and the Board must consider, a written report that describes any issues arising under the Code since the previous report, including, but not limited to, information about material violations of the Code and sanctions imposed in response to the material violations; and certifies that the Code contains policies and procedures reasonably designed to prevent Access Persons from violating the Code. B. The Board's Duties and Responsibilities (1) The Board must approve this Code before retaining the Advisor's services; (2) The Board must approve all material changes to this Code no later than six months after adoption of the material change; and (3) The Board will determine, in its sole discretion, whether a person has violated the Code. If it is determined that a person violated the Code, the Board shall determine the appropriate disciplinary action to be taken and sanctions to be imposed. C. The Advisor's Duties and Responsibilities At least annually, the Advisor shall furnish to the Board, and the Board shall consider, a written report that describes any issues arising under this code of ethics since the previous report, including, but not limited to, information about material violations of the code of ethics or procedures and sanctions imposed in response to the material violations; and certifies that the Advisor has adopted procedures reasonably necessary to prevent its Access Persons from violating the code of ethics. VI. RECORDKEEPING. ------------- The Company will maintain records as set forth below. These records will be maintained in accordance with Rule 17j-1 under the 1940 Act and the following requirements. They will be available for examination by representatives of the Securities and Exchange Commission (the "SEC") and other regulatory agencies. A. A copy of this Code and any other code adopted by the Company which is, or at any time within the past five years has been, in effect will be preserved in an easily accessible place. B. A record of any Code violation and of any action taken as a result of the violation will be preserved in an easily accessible place for a period of at least five years following the end of the fiscal year in which the violation occurred. C. A copy of each report submitted by an Access Person under this Code will be preserved for a period of at least five years from the end of the fiscal year in which the report is made or the information is provided, for the first two years in an easily accessible place. D. A record of all persons, currently or within the past five years, who are or were required to submit reports under this Code, and a list of those who are or were responsible for reviewing these reports, will be maintained in an easily accessible place. E. A copy of each annual issues report and accompanying certification, as required by this Code, must be maintained for at least five years from the end of the fiscal year in which it is made, for the first two years in any easily accessible place. VII. MISCELLANEOUS. A. Confidentiality. The Company will endeavor to maintain the confidentiality of all PTRs and any other information filed pursuant to this Code. Such reports and related information, however, may be produced to the SEC and other regulatory agencies. B. The "should have known" standard. For purposes of this Code, the "should have known" standard does not: o imply a duty of inquiry; o presume that the individual should have deduced or extrapolated from discussions or memoranda dealing with a Fund's investment strategies; or o impute knowledge from the individual's awareness of a Fund's portfolio holdings, market considerations, benchmark index, or investment policies, objectives and restrictions. APPENDIX A DEFINITIONS The definitions and terms used in this Code are intended to mean the same as they do under the 1940 Act and the other federal securities laws. If a definition hereunder conflicts with the definition in the 1940 Act or other federal securities laws, or if a term used in this Code is not defined, the definitions and meanings in the 1940 Act or other federal securities laws, as applicable, should be followed. ACCESS PERSON means: (i) the Company's directors and officers; (ii) any Advisor Access Person; (iii) any other any employee of the Company who, in connection with his or her regular functions or duties, makes, participates in, or obtains information regarding, the purchase or sale of a Security by the Company, or whose functions relate to the making of any recommendations with respect to such purchases or sales; (iv) any natural person in a control relationship to the Company who obtains information concerning recommendations made to the Company with regard to the purchase or sale of Securities; and (v) any director, officer or general partner of the principal underwriter who, in the ordinary course of business, makes, participates in or obtains information regarding, the purchase or sale of Securities by the Company, or whose functions or duties in the ordinary course of business relate to the making of any recommendation to the Company regarding the purchase or sale of Securities. Access Persons include: (a) a member of an Access Person's immediate family (spouse, domestic partner, child or parents) who lives in an Access Person's household (including children who are temporarily living outside of the household for school, military service or other similar situation); (b) a relative of the person who lives in an Access Person's household and over whose purchases, sales, or other trading activities an Access Person directly or indirectly exercises influence; (c) a relative whose financial affairs an Access Person "controls," whether by contract, arrangement, understanding or by convention (such as a relative he or she traditionally advises with regard to investment choices, invests for or otherwise assists financially); (d) an investment account over which an Access Person has investment control or discretion; (e) a trust or other arrangement that names an Access Person as a beneficiary; and (f) a non-public entity (partnership, corporation or otherwise) of which an Access Person is a director, officer, partner or employee, or in which he owns 10% or more of any class of voting securities, a "controlling" interest as generally defined by securities laws, or over which he exercises effective control. ADVISOR ACCESS PERSON means a person who meets the definition of Access Person with respect to the Advisor. AUTOMATIC INVESTMENT PLAN means a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan. However, any transaction that overrides the pre-set schedule or allocations of the automatic investment plan is not under the Automatic Investment Plan. BENEFICIAL OWNERSHIP or BENEFICIALLY OWNS means the same as it does under Section 16 of the Securities Exchange Act of 1934 and Rule 16a-1(a)(2) thereunder. A person is the "beneficial owner" of any securities in which he or she has a direct or indirect pecuniary (monetary) interest. CONTROL means the power to exercise a controlling influence over the management or policies of a Fund, unless such power is solely the result of an official position with such Fund. Any person who owns beneficially, either directly or through one or more controlled companies, more than 25 per centum of the voting securities of a Fund shall be presumed to control such Fund. Any person who does not so own more than 25 per centum of the voting securities of any Fund shall be presumed not to control such Fund. A natural person shall be presumed not to be a controlled person within the meaning of this title. Any such presumption may be rebutted by evidence, but except as otherwise provided in accordance with applicable law, shall continue until a determination to the contrary made by the SEC by order either on its own motion or on application by an interested person. DISTRIBUTOR ACCESS PERSON means a person who meets the definition of Access Person with respect to the Distributor and is subject to the Distributor's Code of Ethics. If such person is an Access Person but is not subject to the Distributor's Code of Ethics, such person shall be considered an Adviser Access Person for all purposes herein. EXEMPT SECURITY means: (i) direct obligations of the U.S. Government (or any other "government security" as that term is defined in the 1940 Act), bankers' acceptances, bank certificates of deposit, commercial paper and High-Quality Short-Term Debt Instruments, including repurchase agreements, and shares of registered open-end investment companies, other than exchange traded funds, (ii) securities purchased or sold in any account over which the Access Person has no direct or indirect influence or control, (iii) securities purchased or sold in a transaction that is non-volitional on the part of either the Access Person or a Company, including mergers, recapitalizations or similar transactions, and (iv) securities acquired as a part of an Automatic Investment Plan. FAMILY/HOUSEHOLD means a member of such person's immediate family (spouse, domestic partner, child or parents) who lives in the person's household (including children who are temporarily living outside of the household for school, military service or other similar situation), and a relative of the person who lives in such person's household. HIGH QUALITY SHORT-TERM DEBT INSTRUMENT means any instrument that has a maturity at issuance of less than 366 days and that is rated in one of the two highest rating categories by a nationally recognized statistical rating organization (e.g., Moody's Investors Service). INDEPENDENT TRUSTEE means a Trustee of the Company who is not an "interested person" of the Company within the meaning of Section 2(a)(19) of the 1940 Act. IPO (i.e., initial public offering) means an offering of securities registered under the Securities Act of 1933 the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934. INTERESTED TRUSTEE means a Trustee of the Company who is an "interested person" of the Company within the meaning of Section 2(a)(19) of the 1940 Act. INVESTMENT PERSONNEL means (i) any employee of the Company or the Advisor (or of any company in a control relationship to the Company or the Advisor) who, in connection with his or her regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of Securities by the Company, (ii) any natural person who controls the Company or the and who obtains information concerning recommendations made to the Company regarding the purchase or sale of Securities by that Company. LIMITED OFFERING means an offering that is exempt from registration under the Securities Act of 1933 pursuant to Section 4(2), Section 4(6), Rule 504, Rule 505 or Rule 506 (e.g., private placements). PURCHASE or SALE of a security includes, among other things, the writing of an option to purchase or sell a security. SECURITY or SECURITIES means any note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the foregoing. A SECURITY HELD or TO BE ACQUIRED by a Fund means: (i) any security that within the most recent 15 days is or has been held by the Fund or is being or has been considered by the Advisor for purchase by the Fund and (ii) any option to purchase or sell, and any security convertible into or exchangeable for, a security. APPENDIX B PERSONAL TRADE REQUEST FORM (PTR) The following form must be completed by you in order to request pre-clearance of a personal securities transaction that requires pre-clearance under the Code of Ethics of the Global X Funds. By signing below, you certify that you are not aware of any trades for any Funds in this Security over the past 15 days and that you are also not aware that the Advisor is planning on engaging in a trade involving this Security over the next 15 days. You further certify that you do not have any confidential or inside information relating to the issuer of this Security. This Form must be submitted to the Company's Chief Compliance Officer. You may not complete this trade until you receive approval from the Chief Compliance Officer. If approved, the approval is good for the day it is given and the following business day. If your trade is not completed within that time, you must submit a new request. Name: Social Security Number: INVESTMENT INFORMATION Issuer and ticker symbol: Nature of Equity Investments (please circle): Common Stock Preferred Stock Number of Shares: Nature of Fixed Income Investments: Describe instrument: Principal amount of trade: TRANSACTION INFORMATION Transaction Type (please circle): Purchase Sale Short Sale Estimated Trade Date: Estimated Price: Broker/Dealer: Is the proposed investment an IPO? Y N Is the proposed investment a Limited Offering? Y N Signature: Date: B-1 Chief Compliance Officer Action Approved:___________________________________ Not Approved:_______________________________ APPENDIX C INITIAL AND ANNUAL HOLDINGS REPORTS To: The Chief Compliance Officer Global X Funds As of , a date within 45 calendar days of this submission, I had direct or indirect beneficial ownership interest in the Securities listed below which are required to be reported pursuant to the Code of Ethics of Global X Funds. Name of Reporting Person: If Initial Report, Date Person Became Subject to the Code: Information in Report Dated as of: Date Report Submitted: Securities Holdings : - ------------------- Check here if, in lieu of completing the chart below, you have attached all of your most recent investment account statements: , Number of statements attached:
PRINCIPAL AMOUNT, TICKER SYMBOL MATURITY DATE AND INTEREST TITLE OF SECURITY OR CUSIP NUMBER OF SHARES RATE (IF APPLICABLE) - ----------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------
The name of all brokers, dealers or banks with whom I maintain an account in which my securities are held for my direct or indirect benefit are as follows NAME OF BROKER, DEALER OR BANK NAME(S) ON AND TYPE OF ACCOUNT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- I certify that I have included on this report all securities holdings and accounts required to be reported pursuant to the Code of Ethics and that the information contained herein is accurate an complete. Signature:________________________ Date:__________________________ APPENDIX D QUARTERLY REPORT To: The Chief Compliance Officer Global X Funds I hereby certify that I have engaged in the following personal securities transactions which are required to be reported under the Code of Ethics of Global X Funds during the calendar quarter indicated below. I hereby submit this report within 30 days after the end of that quarter. (Note: you do not need to complete this report if all of your trading confirmations and account statements are already being delivered to the Chief Compliance Officer) Name of Reporting Person: Calendar Quarter Ended: Date Report Submitted: Securities Transactions Please provide the following information for any reportable transactions during the quarter:
PRINCIPAL NAME OF AMOUNT, BROKER, TICKER MATURITY DATE DEALER OR DATE OF TITLE OF SYMBOL OR NUMBER OF AND INTEREST TYPE OF BANK EFFECTING TRANSACTION SECURITY CUSIP SHARES PRICE (IF APPLICABLE) TRANSACTION TRANSACTION - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------
I have established the following new accounts with brokers, dealers or banks in which my securities are held for my direct or indirect benefit.
NAME OF BROKER, DEALER OR BANK DATE ACCOUNT WAS ESTABLISHED NAME(S) ON AND TYPE OF ACCOUNT - ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------
I certify that I have included on this report all securities transactions and accounts required to be reported pursuant to the Code of Ethics. Signature:____________________ Date:_________________________ APPENDIX E ACKNOWLEDGMENT To: Chief Compliance Officer Global X Funds Re: Acknowledgment of Code of Ethics Initial Acknowledgment: Please check here if this is an initial acknowledgment. I certify that (1) I have received, read and understand this Code of Ethics, (2) I am aware that I am subject to the provisions of this Code, (3) I will comply with this Code, (4) I will report all holdings, transactions and accounts that I am required to report pursuant to this Code. Annual Acknowledgment: Please check here if this is an annual acknowledgment. I certify that (1) I have received, read and understand this Code of Ethics, (2) I am aware that I am subject to the provisions of this Code, (3) I have complied with this Code at all times during the previous calendar year, and (4) I have, during the previous calendar year, reported all holdings, transactions and accounts that I am required to report pursuant to this Code. Name (print):______________________________________ Position:_____________________________________ Signature:____________________________________ Date Submitted:_______________________________ EX-99.CERT 3 ex-cert.txt CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Bruno del Ama, certify that: 1. I have reviewed this report on Form N-CSR of The Global X Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 23, 2010 /s/ Bruno del Ama - ----------------- Bruno del Ama President CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Jose C. Gonzalez, certify that: 1. I have reviewed this report on Form N-CSR of The Global X Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 23, 2010 /s/ Jose C. Gonzalez - -------------------- Jose C. Gonzalez CFO EX-99.906 CERT 4 ex-906cert.txt CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the President of The Global X Funds, with respect to the Fund's Form N-CSR for the period ended October 31, 2010 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: December 23, 2010 /s/ Bruno del Ama ----------------- Bruno del Ama President CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the CFO of The Global X Funds, with respect to the Fund's Form N-CSR for the period ended October 31, 2010 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: December 23, 2010 /s/ Jose C. Gonzalez -------------------- Jose C. Gonzalez CFO -----END PRIVACY-ENHANCED MESSAGE-----