CGS SG ETF SERIES II (CGS Fullgoal CSI 1000 ETF): FY2025 Financial Review
The CGS SG ETF SERIES II, specifically the CGS Fullgoal CSI 1000 ETF, listed on the Singapore Exchange, released its annual financial statements for the fiscal year ended 31 December 2025. Below is a detailed analysis of the fund’s performance, balance sheet strength, expenses, and key portfolio attributes.
Key Financial Metrics
| Metric |
FY2025 |
FY2024* |
YoY Change |
| Total Return (after tax) |
US\$3,279,861 |
(US\$528,909) |
Significant improvement |
| Net Asset Value (NAV) |
US\$13,497,685 |
US\$10,306,979 |
+31% |
| NAV per unit |
US\$1.2570 |
US\$0.9528 |
+32% |
| Units in Issue (end period) |
10,738,000 |
10,818,000 |
-0.7% |
| Expense Ratio (excl. preliminary) |
2.24% |
1.96% |
+0.28ppt |
| Turnover Ratio |
3.93% |
17.92% |
-14ppt |
| Distribution/Dividend |
Not disclosed |
Not disclosed |
N/A |
*FY2024 covers the period from 20 October 2023 (initial launch) to 31 December 2024.
Historical Performance Trends
After a challenging initial period (FY2024) where the fund posted a net loss, FY2025 marked a substantial turnaround. The ETF delivered a positive total return of US\$3.28 million, boosted by a US\$3.52 million gain on investments, reversing the previous year’s negative return. Net asset value and NAV per unit both increased over 30%, indicating a strong recovery and positive market performance for the underlying CSI 1000 Index portfolio.
Portfolio and Asset Overview
- Investment Focus: The ETF is a feeder fund, investing primarily (over 90%) in the Fullgoal CSI 1000 ETF listed on the Shenzhen Stock Exchange, which tracks small cap Chinese companies ranked 801–1800 by market cap.
- Top Holdings: The fund’s only holding is the Fullgoal CSI 1000 ETF. The largest underlying positions within the Fullgoal CSI 1000 ETF as of year-end 2025 include Shannon Semiconductor Technology, Dosilicon, Yuanjie Semiconductor Technology, CIG Shanghai, and OFILM Group, each contributing less than 1% to total assets, reflecting a high level of diversification.
Expense and Turnover Analysis
- Expense Ratio: The ETF’s expense ratio rose to 2.24% in FY2025 from 1.96% in FY2024 (excluding preliminary expenses), above average for broad-market ETFs. For context, the underlying Fullgoal CSI 1000 ETF reported a much lower expense ratio of 0.21% in FY2025.
- Turnover Ratio: Portfolio turnover declined sharply to 3.93% from 17.92% in FY2024, indicating a much lower level of trading activity, consistent with a passive indexing strategy.
Related Party Transactions and Other Notable Items
- Management and Trustee Fees: The manager (CGS International Securities Singapore Pte. Ltd.) charges a 0.9% management fee (annualized), with total management fees of US\$104,861 for FY2025. The trustee (BNP Paribas Trust Services Singapore Limited) receives 0.01% p.a. (minimum US\$15,000, waived for six months from launch).
- Bank, Custody, and Administration: All cash is held with BNP Paribas, rated A+ by S&P.
- No Leverage or Derivatives: The ETF does not engage in derivatives, securities lending, or borrowing, and holds no debt securities.
- No Distributions/Dividends: There were no dividend distributions reported for the review period.
Risk Management and Market Exposures
- Currency Risk: The fund’s main exposure is to CNY (Chinese Renminbi) through its investment in the Fullgoal CSI 1000 ETF. A 5% rise or fall in CNY against USD would impact NAV by approximately US\$682,140.
- Liquidity and Credit Risk: All liabilities are short-term (under 3 months), and credit risk is deemed low due to high-quality counterparties.
Other Corporate Actions and Disclosures
- Units Created and Cancelled: In FY2025, 400,000 units were created and 480,000 units redeemed, resulting in a marginal net decrease in units outstanding.
- No Share Buybacks, Placements, or Mergers: The ETF did not undertake any share buybacks, placements, or M&A activity.
- No Exceptional Items: There were no exceptional earnings or one-off expenses recognized.
Conclusion and Investment Recommendations
Overall Assessment: The CGS Fullgoal CSI 1000 ETF posted a strong turnaround in FY2025, driven by a robust recovery in the underlying CSI 1000 Index and positive market performance of Chinese small cap equities. The NAV and NAV per unit saw notable increases. However, the fund’s expense ratio remains high for a passive ETF, and all returns are derived from capital appreciation rather than income, as no dividends are paid.
- If You Currently Hold the ETF: The strong NAV recovery and positive return suggest that holding may be appropriate for investors seeking exposure to Chinese small caps, especially given the fund’s full replication approach and improved performance. However, consider the high expense ratio and closely monitor ongoing performance and China market conditions.
- If You Are Not Holding: New investors may consider entry if they have a positive outlook on Chinese small caps and are comfortable with the associated risks and the high ongoing costs. The ETF offers exposure to a diversified basket of small cap Chinese equities, but fees could dampen longer-term returns relative to the underlying index.
Disclaimer: This article is not investment advice. All investments carry risk. Please consider your own circumstances and consult a financial adviser before making investment decisions.
View CGS FG CSI1000 S$ Historical chart here
