CGS SG ETF Series II (CGS Fullgoal CSI 1000 ETF): 2025 Semi-Annual Financial Analysis

The CGS SG ETF Series II, managed by CGS International Securities Singapore Pte. Ltd., is a Singapore-listed umbrella unit trust, with its sub-fund, the CGS Fullgoal CSI 1000 ETF, designed to closely track the performance of the CSI 1000 Index. This analysis summarizes the key financials, performance trends, and highlights from its unaudited report for the period ended 30 June 2025.

Key Financial Metrics

*Note: The ETF was launched on 20 October 2023; no comparable data for the prior year/period.

Historical Performance Trends

The fund experienced a notable turnaround in the first half of 2025, generating a positive total return of \$862,444 after incurring a significant deficit of \$(2,254,494) in the previous period. Net assets attributable to unitholders increased by 8.36% from the end of 2024 to 30 June 2025, reflecting both improved investment performance and portfolio appreciation.

Expense and Turnover Ratios

• Expense Ratio: The fund’s annualized expense ratio (excluding preliminary expenses) rose to 2.48% from 1.88% in the previous period. This is relatively high for passive ETFs, although part of this may be attributable to the fund’s small AUM and initial ramp-up expenses.
• Portfolio Turnover Ratio: This metric dropped sharply to 0.85% from 11.10%, indicating much less trading activity as the ETF is now fully invested and tracking its underlying index with minimal changes.

Portfolio Composition and Top Holdings

The ETF invests wholly into the Fullgoal CSI 1000 ETF, which itself tracks the CSI 1000 Index—a basket of small-cap Chinese equities. As of 30 June 2025, the fund’s sole holding was the Fullgoal CSI 1000 ETF, representing 101.31% of net assets (with a small negative cash position offsetting this).

Related Party Transactions & Other Notes

• No soft dollar commissions, cash rebates, or other similar arrangements were reported.
• Bank balances are held with a related party of the Trustee, but amounts are immaterial relative to fund size.
• No use of derivatives, borrowings, or securities lending was reported.
• No distributions or dividends were declared for the period.

Events & Risks

There were no reported divestments, IPOs, fundraising, asset sales, legal disputes, or extraordinary items in the period. No adverse material information was disclosed that could impact the fund’s valuation.

Conclusion & Investment Recommendations

Overall Assessment:
The CGS Fullgoal CSI 1000 ETF demonstrated a strong rebound in performance, moving from a significant loss in the previous period to a healthy gain in the first half of 2025. The fund now appears stable, fully invested, and closely tracking its index. However, the relatively high expense ratio and lack of distributions may be a concern for some investors.

For Existing Investors (Currently Holding)

• The fund’s recovery and alignment with its benchmark suggest it can continue to serve as a small-cap China equity allocation in a diversified portfolio.
• Monitor expense ratios and underlying index performance, as these can materially affect long-term returns.
• No immediate red flags warranting an exit, but ongoing review is advised given the fund’s short track record.

For Prospective Investors (Not Currently Holding)

• This ETF offers convenient exposure to the Chinese small-cap equity market through a single security, but investors should be comfortable with the risks associated with small-cap China equities and the fund’s expense ratio.
• Consider initiating a position if seeking targeted China small-cap exposure and if the risk profile matches your portfolio objectives.

Disclaimer: This analysis is based solely on the fund’s published semi-annual report for the period ended 30 June 2025. It does not constitute investment advice. Please consider your individual circumstances and consult with a financial advisor before making investment decisions.

View CGS FG CSI1000 S$ Historical chart here