Exhibit 99.2

European ETC Business

of ETF Securities Limited

Management Report and Audited

Financial Statements

For the Financial Years Ended

31 December 2015, 2016 & 2017

ETF Securities Limited and its subsidiaries specialise in the development and issuance of exchange-traded products (“ETPs”). ETPs are transparent securities issued by open-ended investment vehicles and traded on exchanges. They are designed to ensure the price of the securities issued tracks the performance of the underlying commodity, index or currency while providing market liquidity for the investor. ETPs typically are not actively managed, are significantly lower in cost when compared to actively managed mutual funds and are easily accessible to investors. As a result, ETPs have grown rapidly in recent years, particularly when compared to more traditional investment products such as mutual funds.

ETPs include the following types of products:

The business model is to establish new trading platforms to allow investors to gain exposure to different asset classes. These are based on special purpose entities (referred to as “Issuers”). The Issuers are established and incorporated as companies and offer listed securities (“Securities”) that are traded on various stock exchanges.

The European element of ETF Securities Limited’s ETC business (the “European ETC Business”) acts as the manager for the following Issuers:

No trading or management of futures contracts is required of the Issuers because the Issuers enter into arrangements to acquire an equivalent asset exposure to the underlying assets from a third party, which fully hedges the exposure of each Issuer. The purpose of the Issuers is to provide a vehicle that permits trading of the Securities, not to make gains from trading in the underlying assets themselves.

The European ETC Business generates revenues from management fees charged to the Issuers for the provision of management services - pursuant to the terms of the securities issued, the European ETC Business is entitled to:

No creation or redemption fees are payable when investors trade in the ETPs on a listed market such as the London Stock Exchange.

For each of the years presented in these financial statements, the European ETC Business was managed by the ETF Securities Leadership team (“Management”):

Description of these financial statements

These financial statements (the “Combined and Carve-Out Financial Statements”), which comprise the Combined and Carve-Out Statements of Profit or Loss and Other Comprehensive Income, Financial Position, Cash Flows, and Changes in Net Parent Investment for the years ended 31 December 2015 to 2017 and related notes, have been prepared in order to report the financial performance of the European ETC Business separately from the rest of the ETF Securities Limited business. Management believes the financial information reflects the assets, liabilities, income, expenses and cash flows associated with the European ETC Business and reflects the economic activity associated with the functions that would be necessary to operate independently. However, as the European ETC Business did not operate as a stand-alone entity during those periods, the financial information may not be indicative of the European ETC Business’s future performance and does not necessarily reflect what its results of operations, financial position, and cash flows would have been had the European ETC Business operated as a separate entity apart from the ETF Securities Limited group during those periods.

The Combined and Carve-Out Financial Statements have been prepared on the basis of the accounting policies set out in note 1.

Management are responsible for preparing the Combined and Carve-Out Financial Statements of the European ETC Business in accordance with the accounting policies set out in note 1.

Management must not approve the Combined and Carve-Out Financial Statements unless they are satisfied that they have been properly prepared. In preparing the Combined and Carve-Out Financial Statements, management are required to:

Management are responsible for keeping adequate accounting records that are sufficient to show and explain the transactions of the European ETC Business and disclose with reasonable accuracy at any time the financial position of the European ETC Business and enable them to ensure that the Combined and Carve-Out Financial Statements have been prepared in accordance with the accounting policies stated. They have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the European ETC Business and to prevent and detect fraud and other irregularities.

Independent Auditors’ Report

The Board of Directors

ETF Securities Limited

Report on the Combined and Carve-out Financial Statements of

the European ETC Business of ETF Securities Limited

We have audited the accompanying combined and carve-out financial statements (the “financial statements”) of the European ETC business of ETF Securities Limited (the “European ETC Business”), which comprise the combined and carve-out statements of financial position as of 31 December 2017, 2016 and 2015, and the related combined and carve-out statements of profit or loss and other comprehensive income, cash flows, and changes in net parent investment for the years then ended, and related notes to the financial statements.

Management’s Responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the business’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the business’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independent Auditors’ Report

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the European ETC Business as of 31 December 2017, 2016 and 2015, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Emphasis of Matter

As described in Note 1 to the combined and carve-out financial statements, the financial statements have been prepared to reflect the financial position and performance of the European ETC Business as if it were a stand-alone entity for the years ended 31 December 2017, 2016 and 2015. The European ETC Business was not a stand-alone entity for the years ended 31 December 2017, 2016 and 2015 and therefore, the financial statements do not necessarily reflect the financial position, financial performance, changes in net parent investment, and cash flows of the European ETC Business had the business operated as a stand-alone business, and may not form a reliable basis for the evaluation of the future financial performance or position of the European ETC Business.

KPMG Channel Islands Limited

Chartered Accountants

St Helier, Jersey

26 April 2018

All the items dealt with in arriving at the results for the years ended 31 December 2017, 2016 and 2015 relate to continuing operations. The notes on pages 10 to 36 form a part of these Combined and Carve-Out Financial Statements.

The notes on pages 10 to 36 form a part of these financial statements.

The Combined and Carve-Out Financial Statements on pages 6 to 36 were approved and were signed on 26 April 2018 by:

Graham Tuckwell

Chairman, ETF Securities Limited

Joseph Roxburgh

Chief Financial Officer, ETF Securities Limited

Mark Weeks

Chief Executive Officer, ETF Securities (UK) Limited

The notes on pages 10 to 36 form a part of these financial statements.

1 There are non-cash transactions as detailed in note 20.

The notes on pages 10 to 36 form a part of these Combined and Carve-Out Financial Statements.

The principal accounting policies are described below.

Basis of Preparation of Financial Statements

The purpose of these financial statements (the “Combined and Carve-Out Financial Statements”) is to report the historical financial information and performance of the European ETC Business separately from the rest of the ETF Securities Limited group. The Combined and Carve-Out Financial Statements present only the historical financial information of the European ETC Business that has been acquired by WisdomTree Investments, Inc (“WisdomTree”), comprising certain assets, liabilities, revenues, expenses and cash flows associated with the European ETC Business that are reported within entities of the ETF Securities Limited group, together with the following entities which were acquired:

During the periods presented within these Combined and Carve-Out Financial Statements, the European ETC Business functioned as part of the larger group of companies controlled by ETF Securities Limited, and accordingly, a process has been completed to combine and carve-out the Acquired Entities together with other assets, liabilities, revenues, expenses and cash flows associated with the European ETC Business in preparing the Combined and Carve-Out Financial Statements.

The Acquired Entities presented in these Combined and Carve-Out Financial Statements do not form a consolidation group, therefore the Combined and Carve-Out Financial Statements have been derived from the aggregation of the individual company financial statements of the Acquired Entities. All intra-company balances, income, expenses and unrealized gains and losses arising from transactions between the Acquired Entities were eliminated when preparing the Combined and Carve-Out Financial Statements. Transactions with other ETF Securities Limited group entities have been disclosed as transactions with related parties.

The legal structure was not considered the key factor in determining the perimeter of the Combined and Carve-Out Financial Statements, but rather the basis of the economic activities. As a result:

The Combined and Carve-Out Financial Statements have been prepared under the historical cost convention, as modified by the revaluation of metal bullion and certain financial assets and financial liabilities held at fair value through profit or loss, together with changes required to revalue the provision for deferred consideration to fair value which are recorded through profit or loss. The Combined and Carve-Out Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB.

Management believes the basis of preparation described above results in the financial information reflecting the assets, liabilities, income, expenses and cash flows associated with the European ETC Business and reflects the economic activity associated with its functions that would be necessary to operate independently. However, as the European ETC Business did not operate as a stand-alone entity during those periods, the financial information may not be indicative of the European ETC Business’s future performance and does not necessarily reflect what its results of operations, financial position, and cash flows would have been had the European ETC Business operated as a separate entity apart from the ETF Securities Limited group during those periods.

Basis of Preparation of Financial Statements (continued)

The key judgements applied by Management in preparing these Combined and Carve-Out Financial Statements are disclosed in note 2.

Accounting Standards

In preparing the Combined and Carve-Out Financial Statements, Management have adopted all new or revised Standards and Interpretations, including:

For the Year ended 31 December 2017:

For the Year ended 31 December 2016:

For the Year ended 31 December 2015:

Of those Standards and Interpretations adopted, none resulted in any significant effect on these Combined and Carve-Out Financial Statements.

Management have not applied the following new and revised IFRSs that have been issued but are not yet effective:

IFRS 9 Financial Instruments (as amended in 2014) (effective for annual periods beginning on or after 1 January 2018)

A finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement.

The standard contains requirements in the following areas:

Accounting Standards (continued)

IFRS 9 Financial Instruments (continued)

The business intends to adopt IFRS 9 for the annual period beginning on 1 January 2018. An assessment of the impact of adoption of IFRS 9 has been undertaken where it was concluded that there would be minimal impact on the amounts reported in respect of the financial instruments.

IFRS 16 Leases (effective for annual periods beginning on or after 1 January 2019)

IFRS 16 specifies how to recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with lessor accounting under IFRS 16 being substantially unchanged from its predecessor, IAS 17.

The business intends to adopt IFRS 16 for the annual period beginning on 1 January 2019. A preliminary assessment of the impact of adoption of IFRS 16 has been undertaken where it was concluded that there would be a requirement to record a value in use asset and a related lease liability in respect of the lease related to the office space (this lease is disclosed in note 16).

The business intends to adopt the following standards and amendments when they become effective. An assessment of the impact of adoption of these standards and amendments has been undertaken and Management does not anticipate that they will have a significant impact on future financial statements of the European ETC Business:

IFRS 2 Share-based Payment (effective for annual periods beginning on or after 1 January 2018)

Amends IFRS 2 Share-based Payment to clarify the standard in relation to:

IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (no effective date set)

Amends IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) to clarify the treatment of the sale or contribution of assets from an investor to its associate or joint venture, as follows:

These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferring shares in a subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves.

Accounting Standards (continued)

IFRS 15 Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2018)

IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. The five steps in the model are as follows:

Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters. New disclosures about revenue are also introduced.

Annual Improvements to IFRS

Makes amendments to the following standards:

Management has considered other standards and interpretations in issue but not effective and concluded that they would not have a material impact on the future financial periods when they become available.

Going Concern

Management consider the operations of the European ETC Business to be on-going, with a reasonable expectation that the business has adequate resources to enable it to continue in operational existence for the foreseeable future. Accordingly, these Combined and Carve-Out Financial Statements have been prepared on a going concern basis. In arriving at this judgement Management noted that the reported results of the European ETC Business are impacted each year by the revaluation of Deferred Consideration, which is a non-cash item reflecting changes in the gold price. The payments in respect of the Deferred Consideration are of limited recourse to the net gold inflows received. In order to hedge against the short term movements in the gold price, the European ETC Business retains gold ounces from the net gold inflows that are adequate to cover the next bi-annual payment as it falls due. The Deferred Consideration is an annual cost continuing into perpetuity as disclosed in note 12.

As part of the assessment, and due to the nature of the business, consideration was given to the situations that could arise that may result in the early redemption of the outstanding Securities, and thus no fee income being earned. The Securities and the individual Issuers themselves are non-recourse and therefore any liabilities falling due are the responsibility of the issuing company which incurs the liability and is not the responsibility of the rest of the European ETC Business.

Accounting Standards (continued)

Investments

Investments are carried at cost less accumulated impairment losses in the statement of financial position. On disposal of such investments, the difference between disposal proceeds and the carrying amounts of the investments are recognised through profit or loss.

Investments are reviewed annually for indications of impairment by Management. If Management determine there are indications of impairment, a detailed assessment of the recoverable amount of each investment as a cash-generating unit based will be undertaken through the application of a value in use calculation.

During each of the years presented in these Combined and Carve-Out Financial Statements, no such indications of impairment have been identified.

Provisions

Provisions are recognised when:

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Deferred Consideration

The Deferred Consideration is a non-financial liability as it represents an obligation to pay gold into perpetuity arising from the acquisition of Gold Bullion Securities Limited (note 12). Due to the uncertain value of the gold flows, it has been treated as a provision. Deferred Consideration is adjusted at each period end to reflect Management’s best estimate of the provision required to settle this obligation as a result of changes in the gold price or the discount rate. Management consider this estimate equates to the fair value. The change in value is recorded in the Statement of Profit or Loss and Other Comprehensive Income under the heading “Revaluation and Foreign Exchange Differences”. Management’s determination of fair value forms a significant accounting estimate, which is described further in note 2 and note 12.

The unwinding of the discount to reflect the movement in the value of the provision due to the passage of time, keeping all other assumptions constant, is expensed under the heading ”Finance Charge” in the Statement of Profit or Loss and Other Comprehensive Income (and is shown in note 4 as “Accretion Expense on Deferred Consideration”).

Intangible Assets

Intangible assets that are acquired separately with indefinite useful lives are carried at cost less accumulated impairment losses.

Intangible assets are reviewed for any indications of impairment at least annually, or more frequently when there is an indication that goodwill may be impaired. If any such indicators exist, the recoverable amount of the intangible asset is estimated in order to determine if there is an impairment, and the extent of such impairment. For the purpose of impairment testing, Management will assess the future flows allocated to the cash generating unit supports the intangible asset. If the recoverable amount of the cash generating unit is less than the carrying amount of the intangible asset, an impairment loss is recognised directly through profit or loss. An impairment loss recognised for intangible assets may be reversed in a subsequent period.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying value, are recognised through profit or loss when the intangible asset is derecognised.

Product Development Costs

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

Internally generated intangible assets arising from the European ETC Business’s development activities are recognised only if all of the following conditions are met:

Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred. No product development costs have been eligible to be capitalised during the years ended 31 December 2017, 2016 and 2015.

Property, Plant and Equipment and Depreciation

Tangible fixed assets are stated at cost less depreciation and any provisions for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Foreign Currencies

Management consider that Sterling is the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions of the European ETC Business.

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. The resulting differences are accounted for through profit or loss.

Interest Income

Interest income is recognised when it is probable that the economic benefits will flow to the business and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

Revenue Recognition

Revenue is recognised to the extent that the economic benefits will flow to the business and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and other sales taxes or duty.

Management and licence fees are calculated by applying a fixed percentage (set out in each Security prospectus) to the market value of the Issuers’ debt Securities in issue on a daily basis.

Fees received for the issue and redemption of the Issuers’ Securities are recognised at the date on which the transaction becomes legally binding. All other income and expenses are recognised on an accruals basis.

Taxation

Income tax expense represents the sum of current and deferred tax. Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The European ETC Business’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Combined and Carve-Out Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the European ETC Business expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Share Based Payments

The cost of equity-settled transactions with service providers is recognised in the statement of comprehensive income. The expense is measured at the fair value of the services received over the service period. Expenses will be recognised for awards that do not ultimately vest.

Financial Instruments

Cash and Cash Equivalents

Cash and Cash Equivalents include deposits held at call with banks.

Trade and Other Receivables

Trade and other receivables are initially recognised at fair value, and are subsequently measured at amortised cost less appropriate allowances for estimated irrecoverable amounts.

Loans and Trade and Other Payables

Loans and trade payables are initially measured at fair value, and are subsequently measured at amortised cost.

Bullion Held

The European ETC Business receives gold and other precious metal bullion as fee income pursuant to the terms of the Metal Securities issued. The European ETC Business is obliged to pay a fixed amount of gold every six months under the terms of the Sale and Purchase Agreement for the acquisition of Gold Bullion Securities Limited, and a variable amount every month under the terms of the Licence and Marketing Support Agreement. Gold is held to meet these obligations. The European ETC Business may also retain gold and other precious metal bullion for its own account and this bullion held is treated as a non-monetary asset used as a store of wealth or as quasi-currency, and is revalued to market value using the last quote provided by the London Bullion Market Association (“LBMA”) on its last business day prior to the year-end date.

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the European ETC Business at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and the reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately through profit or loss.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The presentation of financial statements in conformity with IFRS requires the use of accounting estimates. It also requires management to exercise its judgment in the process of applying the accounting policies and to disclose areas where accounting estimates/judgments have the most significant impact on the amounts reported within these Combined and Carve-Out Financial Statements.

The critical accounting estimates are disclosed as relevant throughout these Combined and Carve-Out Financial Statements and summarised below:

All of the European ETC Business’s ETPs are issued by special purpose vehicles which, as disclosed in note 10, have a nominal amount of share capital owned by the European ETC Business. IFRS requires consolidation of entities controlled by the European ETC Business. Control is defined as:

The application of the definition of control requires judgment, and based on this definition, management have determined that the European ETC Business controls the following entities:

For all of the entities listed above the European ETC Business owns a majority of the voting equity interests and is therefore entitled to any residual interest that may remain in these entities.

These Combined and Carve-Out Financial Statements do not include the Issuers (as disclosed in note 1). Based on the contractual terms, the European ETC Business assessed that the ownership of the share capital is not the dominant factor in deciding control of the Issuers, as the variable returns from the Issuers’ activities is attributable to the holders of the Securities. In the event that any of the Issuers were consolidated, this would result in an increase in gross liabilities (reflecting the fair value of Securities issued by the Issuers) and a corresponding increase in gross assets (reflecting the fair value of the Issuers’ investment in underlying assets), amounts which would be largely offset given the pass-through nature of the Issuers’ activities.

Intangible assets are reviewed for impairment by Management, who must exercise judgement to estimate the value of those investments. Management have applied a methodology of assessing the recoverable amount of the intangible asset as a cash-generating unit based on a value in use calculation. The calculations use cash flow projections based on detailed financial budgets or gold flows predicted as a result of the Assets under Management. A discount rate of 15% (2016 and 2015: 15%), based on Management’s estimations of the rate that the market would expect on an investment of an equivalent risk, has been applied to those cash or gold flows to generate their total present value. No indications of impairment were identified as at 31 December 2017, 2016 and 2015.

The fair value of Deferred Consideration represents the estimated present value of the obligation to deliver gold under the agreements described in note 12, by:

The critical accounting judgment relates to Management’s determination of an appropriate discount rate to discount the value of the future gold flows. This discount rate was then used to value the Deferred Consideration, together with the gold price based on last quote provided by the LBMA, being the AM fix rate on 29 December 2017 of £960.840 per fine troy ounce (2016: £942.580, 2015: £716.364).

Management have considered changes in the risk factors that would impact the carrying value of the deferred consideration, and have estimated an appropriate discount rate to be 9.5% (2016 and 2015: 9.5%) for each of the years presented, taking into account the developments in observable risk-free rates, as adjusted for estimated business-specific risk, each year. In making this determination, Management note the long-term nature of the Deferred Consideration, the fact it is settled in gold bullion through receipt of fees in gold bullion, and the anticipated surplus of fees out of which the Deferred Consideration is paid. Management also note that the discount rate used is in line with a previously agreed settlement, which has subsequently lapsed. In the opinion of Management, this discount rate results in a best estimate of the provision at which settlement of the Deferred Consideration could be achieved at each reporting date.

The identifiable assets, liabilities, revenues, and expenses that were included within the individual company financial statements of ETFS Management Company (Jersey) Limited or ETF Securities (UK) Limited but that were not related to the European ETC Business have been excluded, specifically those balances related to the Australian business of the ETF Securities Limited group, which has been acquired by WisdomTree.

The identifiable assets, liabilities, revenues and expenses that were related to the European ETC Business but recorded elsewhere in the ETF Securities Limited group have been included, specifically those balances related to the deferred consideration, licence contributions, and loyalty payments.

Furthermore, amounts charges by ETF Securities Limited to ETFS Management Company (Jersey) Limited in respect of the Intellectual Property owned by ETF Securities Limited in respect of the European ETC Business have been excluded on the basis that such Intellectual Property would be transferred to WisdomTree as part of the acquisition.

The taxation charges have been recognised within these Combined and Carve-Out Financial Statements using the allocation method – the recognition of the taxation charges incurred by ETFS Management Company (Jersey) Limited and ETF Securities (UK) Limited for each of the years presented. Management has not made any adjustments to the taxation charges or provisions to reflect that the charges that may have been incurred had the European ETC Business operated as a separate entity apart from the ETF Securities Limited group during those periods. Specifically, no taxation has been applied to the increased profits recognised in respect of the removal of the charges in respect of the Intellectual Property as these amounts were subject to a rate of taxation of 0%.

Calculations were undertaken by Management to determine the fair value of the services received. The expense is estimated based upon Assets under Management together with the level of net creations within the relevant underlying products. The fee rates were determined using the fees agreed with other equivalent independent service providers as a benchmark, together with an assessment of the level and the quality and level of services received.

Operating profit includes the following items of revenue and expense:

The Accretion Expense on Deferred Consideration comprises:

Additional information is set out in note 12 to these Combined and Carve-Out Financial Statements.

Due to the change in the gold price at the end of the year, the fair value of the Deferred Consideration increased by £1.8 million (2016: increase by £23.0 million, 2015: decrease by £5.4 million). Additional information is set out in note 12 to these Combined and Carve-Out Financial Statements.

The ETF Securities Limited group reviews and revises remuneration packages of all key management personnel from time-to-time. The aggregate remuneration for Management comprised:

The Wages and Salaries include contributions to personal pensions schemes of 7% of basic salaries. There are no other post employment benefits or other long term benefits provided to Management. Management did not receive any Share Based Payments during the years ended 31 December 2017, 2016 or 2015.

The average number of persons, including executive directors, employed in the European ETC Business was as follows:

The aggregate remuneration of these employees comprised:

The share based payments disclosed in note 18 do not represent payments made to employees.

The European ETC Business has also incurred audit fees for the year of GBP 154,624 in respect of the Issuers (2016: GBP 147,180, 2015: GBP 145,000).

The effective tax rate is based on the standard domestic tax rate of ETF Securities Limited in Jersey, being 0%. The reconciliation presented reflects this effective tax rate of 0% with a reconciling item for the effect of different tax rates applied to the results of the Acquired Entities:

Deferred Tax Asset

The deferred tax asset relates to timing differences between accounting provisions and payments. It is probable that the future taxable profits will generate by the European ETC Business and accordingly the deferred tax asset is recognised in these Combined and Carve-Out Financial Statements.

The European ETC Business holds 100% of the share capital of the following Issuers (which are all incorporated and registered in Jersey). As disclosed in note 2 the variable returns from the Issuers’ activities is attributable to the holders of the Securities, and based on the contractual terms, the European ETC Business has assessed that the ownership of the share capital is not the dominant factor in deciding control of these entities; as a result these entities are not consolidated within these Combined and Carve-Out Financial Statements, but are recorded at historic cost less provisions for impairment:

Furthermore, as the variable returns from the Issuers’ activities is attributable to the holders of the Securities, the value attributable to these investments is the historic cost, as this is the residual return attributable to the European ETC Business.