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Adviser Profile

As of Date 04/12/2024
Adviser Type - Large advisory firm
- An investment adviser (or subadviser) to an investment company
Number of Employees 150
of those in investment advisory functions 36
Registration SEC, Approved, 4/25/2008

Client Types

- Banking or thrift institutions
- Investment companies
- Pooled investment vehicles

Advisory Activities

- Portfolio management for investment companies
- Portfolio management for pooled investment vehicles
- Portfolio management for businesses

Compensation Arrangments

- A percentage of assets under your management

Recent News

Reported AUM

Discretionary
Non-discretionary
44B 38B 32B 25B 19B 13B 6B
2015 2016 2017 2018 2019 2020 2021 2022 2023

Private Funds



Employees

Brochure Summary

Overview

Global X is a Delaware limited liability company with its principal offices located at 605 Third Avenue, 24th and 43rd floors, New York, New York 10158, 1 Gateway Center, Newark, NJ 07102, 201 South Biscayne Blvd, St 2850 Miami, FL 33131, 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland and 123 Buckingham Palace Road, London, SW1W 9SH, United Kingdom. Global X started operations in 2008. The Adviser is registered as an investment adviser under the Advisers Act. The Adviser serves as the investment adviser of Global X Funds (the “Trust”) and each series of the Trust (the “Global X U.S. ETFs”) and the Global X ETFs ICAV, a UCITS fund range with segregated liability between each UCITS fund, registered in Ireland and authorized by the Central Bank of Ireland (each a “Global X UCITS ETF” and collectively with the Global X U.S. ETFs, the “Global X ETFs”). Global X Digital Assets, LLC (“GXDA”) is a Delaware limited liability company with its principal offices located at 605 Third Avenue, 43rd Floor, New York, NY 10158. GXDA’s focus is on the development, operation and management of digital asset investment funds, exchange traded debt securities and separately managed accounts. GXDA is an affiliate of Global X Management Company LLC and has no dealings with its principal business. However, the two entities share some internal resources such as portfolio management, operations, legal, and compliance. GXDA offers investment advisory services to additional separate managed accounts on a model portfolio delivery and sub-advisory services basis (collectively, “Digital Asset Strategies”). The sub- advisory services for digital asset separately managed accounts is contemplated to be to unaffiliated investment advisers. In these cases, the third-party adviser (“TPA”) selects GXDA to manage separate accounts overseen by the TPA. The agreement is with the TPA, not with the end client, and the TPA retains the discretionary authority to hire GXDA, as well as to terminate services with GXDA. The TPA is responsible for determining that GXDA’s digital assets are appropriate for the TPA’s client and for ongoing monitoring of our management in light of the end-client’s needs. While contemplated Digital Asset Strategies are still currently being formed, certain statements in this brochure, including those made in the present tense, describe the prospective business activities of GXDA. GXDA also acts as arranger to a crypto exchange traded product program (the “Program”) for the issue of undated, limited recourse, non-interest bearing exchange traded debt securities issued by Global X Digital Assets Issuer Limited (the “Issuer”). The Issuer is incorporated and registered in Jersey under the Companies (Jersey) Law 1991 (as amended), with registered number 139150 and GXDA provides certain administrative and operational services in respect of the Program. GXDA is paid a fee by the Issuer in respect of such services. As of December 31, 2023, Global X had approximately $42,500M assets under management, nearly all of which on a discretionary basis. Adviser to the Trust Global X serves as the investment adviser and the administrator for the Trust. The Trust is a registered open-end management investment company registered under the Investment Company Act of 1940 as amended (the “1940 Act”) that currently consists of one hundred twelve exchange-traded funds, one hundred of which are operational. The shares of each currently operational Global X U.S. ETF are listed on a U.S. national securities exchange such as the Cboe BZX, NYSE Arca, Inc. or the NASDAQ. Certain of the Global X U.S. ETFs could be registered in non-U.S. jurisdictions or cross-listed on non-U.S. exchanges. Subject to the supervision of the Trust’s Board of Trustees, Global X is responsible for managing the investment activities of each Global X U.S. ETF and its business affairs and other administrative matters. The Adviser has created both passively managed ETFs that attempt to track either proprietary or non-proprietary indexes (each, an “Underlying Index”) and actively managed ETFs designed to provide exposure to U.S. and global options, fixed income, commodity, digital assets and equity markets. The Trust includes, but is not limited to, ETFs pursuing the following general investment strategies: Thematic. Solutions focusing primarily on emerging and disruptive technologies. Income. Aiming to deliver alternative, higher-yielding income solutions. Core. Portfolio building blocks that aim to deliver exposure to specific values or factors. International Access. Solutions designed for investors seeking to chart a different course. Commodities. Exposure to metals and mining companies. Global X also works with sub-advisers to facilitate portfolio management of certain Funds. Global X UCITS ETFs The Adviser acts as the investment adviser and the distributor for the Global X UCITS ETFs, a series of Irish domiciled funds, regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 as amended by European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016 as may be amended or replaced. Information about the Global X UCITS ETFs, including a description of the management fees and investor eligibility, is generally contained in each fund’s prospectus, key investor information document and supplements, which can be found on the Global X UCITS ETFs’ website as applicable. Sub-advisory Services As compensation for the sub‐advisory services provided to the Funds, the Adviser may pay to the applicable sub‐adviser a sub‐advisory fee based upon a percentage of that Fund’s daily net assets. The level of the sub‐advisory fee paid with respect to a Fund is negotiated between the Adviser and the applicable sub‐adviser and will vary, depending on, among other things, the types of assets in which the Fund invests. Sub‐advisory fees are generally accrued daily and are billed and paid in arrears. In some cases, the Sub-Adviser may be an affiliate of the Adviser. Conversely, the Adviser and GXDA serve as sub-advisers to other investment vehicles. In these arrangements, the level of the sub‐advisory fee paid to the Adviser or GXDA is negotiated between the Adviser or GXDA and the counterparty and will vary, depending on, among other things, the types of assets in which the Fund invests. In some cases, the Adviser may act as a sub-adviser of an affiliate of the Adviser. Separately Managed Accounts The Adviser provides investment advisory services to certain separately managed accounts, either affiliated or otherwise, and pooled investment vehicles (some of which may include financial institutions and their customers and clients). GXDA intends to offer investment advisory services to separate managed accounts on a model portfolio delivery and advisory basis (collectively, “Digital Asset Strategies”). While contemplated Digital Asset Strategies are still currently being formed, certain statements in this brochure, including those made in the past and present tense, describe the prospective business activities of GXDA. Digital Model Portfolio Delivery of Digital Asset Strategies Global X Digital Assets LLC creates and provides non-discretionary model portfolios (“Digital Model Portfolios”), comprised of digital assets. Digital Model Portfolios seek to track indexes (“Indexes”) designed by the Global X Digital Assets team. The Indexes are calculated and administered by the index provider(s). The Digital Model Portfolios are provided to or otherwise made available to investment advisers, broker-dealers and other financial intermediaries or platform providers (“Third-Party Providers”) for such Third-Party Providers to use at their discretion, or at the discretion of their clients, in the provision of investment advisory services to their own clients. Such Third-Party Providers may utilize software platforms to aid in their provision of investment advisory services and may choose to make the Digital Model Portfolios available to clients as options on such platforms. Third-Party Providers and their respective clients have sole investment discretion with respect to the selection of underlying investment options for such investors’ accounts, including the recommendation, selection, and management of an investment strategy based on a Model Portfolio. Global X does not have investment discretion or trading responsibilities with respect to such arrangements and does not have an advisory relationship with Third-Party Providers’ clients or manage the implementation of Digital Model Portfolios on the basis of the investment objectives of individual clients that participate in these programs. Third-Party Providers may use numerous strategies, including strategies of other investment advisers. The implementation of any such investment strategy, including one based on a Model Portfolio, will be conducted by the applicable Third-Party Provider or its respective clients. Third- Party Providers are responsible for using their own judgments with respect to the implementation of a Model Portfolio for an underlying client and, as such, may deviate from the allocations recommended for a Model Portfolio at their discretion. GXDA may make updates to the Digital Model Portfolios from time to time. In the event of an update to the Digital Model Portfolios, GXDA will make such update available to the Third-Party Providers, who in their sole discretion may determine whether to implement such updates on behalf of their clients. GXDA may receive compensation from Third-Party Providers for use of the Digital Model Portfolios. For a further discussion, see Item 5 of this brochure. Sub-Advisory Services of Digital Asset Strategies Global X Digital Assets, LLC is contemplating providing sub-advisory services for digital asset strategies to unaffiliated investment advisers. In these cases, the third-party adviser (“TPA”) selects GXDA to manage separate accounts overseen by the TPA. The agreement is with the TPA, not with the end client, and the TPA retains the discretionary authority to hire us, as well as to terminate our services. The TPA is responsible for determining that GXDA’s digital
assets are appropriate for the TPA’s client and for ongoing monitoring of our management in light of the end-client’s needs. The TPA has the ability to invest their clients’ assets directly into digital assets through the use of a separately managed account investment partner platforms (“Investment Platforms”) which allows for client onboarding via an advisor portal (the “Advisor Portal”), and the delivery of various digital asset investment models and allocation modules, execution of transactions in digital assets and the integration and reporting of holdings and trade information to Advisor’s portfolio management system. Clients of GXDA are Advisors and their respective clients (“Clients”) which include retail and high-net worth individuals as well as institutional clients. Together, the Advisor Portal and the Client Portal are referred to as the “Investment Platform.” “Digital assets” includes cryptographically derived assets, referred to as cryptoassets, cryptocurrencies, and/or blockchain tokens, virtual currencies or digital currencies, such as bitcoin and ether, as well as other assets available on public, private or permissioned blockchains and/or ledger systems, including decentralized application tokens and protocol tokens, and other digital assets that are based on a cryptographic protocol of a computer network that can be (i) centralized or decentralized, (ii) closed or open-source, and/or (iii) used as a medium of exchange, store of value, and/or represent ownership in some asset, interest or object, whether real or intangible. Digital assets are a digital representation of value that function as a medium of exchange, a unit of account, or a store of value, but they do not have legal tender status in the United States. Digital assets are not backed nor supported by any government or central bank (except for Central Bank Digital Currencies (“CBDCs”)). The prices of digital assets are derived by market forces of supply and demand, and digital assets are more volatile than traditional currencies and financial assets. Many of the Digital Asset Strategies have exposure to bitcoin and ether; however, other digital asset holdings in these strategies are anticipated to grow. Bitcoin is a digital asset the ownership and behavior of which are determined by participants in an online, peer-to-peer network that connects computers that run publicly accessible, or “open source,” software that follows the rules and procedures governing the Bitcoin network, commonly referred to as the Bitcoin protocol. The value of bitcoin, like the value of other digital assets, is not backed by any government, corporation or other identified body. Ownership and the ability to transfer or take other actions with respect to bitcoin is protected through public-key cryptography. The supply of bitcoin is constrained or formulated by its protocol instead of being explicitly delegated to an identified body (e.g., a central bank or corporate treasury) to control. Units of bitcoin are treated as fungible. Bitcoin and certain other types of digital assets are sometimes referred to as digital currencies or cryptocurrencies. No single entity owns or operates the Bitcoin network, the infrastructure of which is collectively maintained by (1) a decentralized group of participants who run computer software that results in the recording and validation of transactions (commonly referred to as “miners”), (2) developers who propose improvements to the Bitcoin protocol and the software that enforces the protocol and (3) users who choose what Bitcoin software to run. Bitcoin was released in 2009 and, as a result, there is little data on its long-term investment potential. Bitcoin is not backed by a government- issued legal tender. Ether is a digital asset that is created and transmitted through the operations of the peer-to-peer Ethereum Network, a decentralized network of computers that operates on cryptographic protocols. No single entity owns or operates the Ethereum Network, the infrastructure of which is collectively maintained by a decentralized user base. The Ethereum Network allows people to exchange tokens of value, called ether, which are recorded on a public transaction ledger known as a blockchain. Ether can be used to pay for goods and services, including computational power on the Ethereum network, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on digital asset exchanges or in individual end-user-to-end-user transactions under a barter system. Furthermore, the Ethereum Network also allows users to write and implement smart contracts—that is, general-purpose code that executes on every computer in the network and can instruct the transmission of information and value based on a sophisticated set of logical conditions. Using smart contracts, users can create markets, store registries of debts or promises, represent the ownership of property, move funds in accordance with conditional instructions and create digital assets other than ether on the Ethereum Network. Smart contract operations are executed on the Ethereum Blockchain in exchange for payment of ether. The Ethereum Network is one of a number of projects intended to expand blockchain use beyond just a peer-to-peer money system. Investment Platforms that GXDA have onboarded are a technology platform which operates like a traditional trade execution system and allows Advisors to open a Separately Managed Account (“SMA”) on behalf of each of their Clients and to place digital asset trades for their Clients in their SMAs which are routed directly to a digital asset exchange for execution and processing. The Investment Platforms provides transactional reporting of the Client’s digital assets in the SMA which can be integrated into the Advisor’s or representative’s third-party performance reporting system and used by the Advisor or Representative for their Client communications and overall performance reporting to their Clients. Because the Investment Platform integrates with various industry-standard portfolio management and reporting systems, Advisors and Representatives can see each of their Client’s digital asset exposures directly in the portfolio management system alongside the client’s other asset holdings. Advisors and Representatives can also view their Client’s holdings, unofficial performance, Client documents, research, and educational materials directly by logging into the Investment Platform. The Investment Platform allows Advisors and Representatives, on behalf of their Clients, to open accounts directly with a digital asset custodian. GXDA only partners with digital asset custodians that are “qualified custodians.” A qualified custodian is a type of institution that is approved by regulators to hold assets on behalf of clients. The Investment Platform integrates with the digital asset custodian to allow Advisors and Representatives, on behalf of their Clients, to add funds or in-kind contributions, withdraw funds, enter orders to purchase and sell digital assets, build a custom allocation module and/or make investment selections of various investment models. Model Portfolio Services Global X also creates, manages, and provides non-discretionary model portfolios, comprised of recommended allocations of individual exchange traded funds (“ETFs”), either regulated pursuant to the 1940 Act or the Undertakings for Collective Investment in Transferable Securities (“UCITS”), including, but not limited to, Global X ETFs (each, a “Model Portfolio,” and collectively, “Model Portfolios”). Each Model Portfolio is designed to pursue a particular investment strategy and to have a specified risk tolerance level. Each Model Portfolio is intended to achieve such strategy through investment in ETFs, in accordance with the target allocations established for the Model Portfolio. Global X will not be limited to using Global X ETFs in the Model Portfolios; however, a Model Portfolio may have up to a 100% allocation in Global X ETFs. The Model Portfolios are provided to or otherwise made available to investment advisers, broker- dealers and other financial intermediaries or platform providers (“Third-Party Providers”) for such Third-Party Providers to use at their discretion, or at the discretion of their clients, in the provision of investment advisory services to their own clients. Such Third-Party Providers may utilize software platforms to aid in their provision of investment advisory services and may choose to make the Model Portfolios available to clients as options on such platforms. Third-Party Providers and their respective clients have sole investment discretion with respect to the selection of underlying investment options for such investors’ accounts, including the recommendation, selection, and management of an investment strategy based on a Model Portfolio. Global X does not have investment discretion or trading responsibilities with respect to such arrangements and does not have an advisory relationship with Third-Party Providers’ clients or manage the implementation of Model Portfolios on the basis of the investment objectives of individual clients that participate in these programs. Third-Party Providers may use numerous strategies, including strategies of other investment advisers. The implementation of any such investment strategy, including one based on a Model Portfolio, will be conducted by the applicable Third-Party Provider or its respective clients. Third-Party Providers are responsible for using their own judgments with respect to the implementation of a Model Portfolio for an underlying client and, as such, may deviate from the allocations recommended for a Model Portfolio at their discretion. Global X may make updates to the recommended allocations to ETFs that comprise the Model Portfolios from time to time. In the event of an update to the Model Portfolios, Global X will make such update available to the Third-Party Providers, who in their sole discretion may determine whether to implement such updates on behalf of their clients. Global X may receive compensation from Third- Party Providers for use of the Model Portfolios and will be indirectly compensated by investments in the Global X ETFs based on the Model Portfolios. For a further discussion, see Item 5 of this brochure.