NOTES
TO THE FINANCIAL STATEMENTS
August 31, 2025 (Unaudited)(Continued)
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F.
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Reclassification of Capital Accounts.
GAAP requires that certain components of net assets relating to
permanent differences be reclassified between financial and tax reporting.
These reclassifications have no effect on net assets or NAV per share and
are primarily due to differing book and tax treatments for in-kind
redemptions. For the year ended February 28, 2025, the following
adjustments were made: |
|
|
|
|
|
|
|
|
|
Tema
American Reshoring ETF |
|
|
$(1,545,757) |
|
|
$1,545,757
|
|
Tema
Durable Quality ETF |
|
|
$— |
|
|
$— |
|
Tema
Electrification ETF |
|
|
$— |
|
|
$— |
|
Tema
Heart & Health ETF |
|
|
$(2,515,466) |
|
|
$2,515,466
|
|
Tema
Oncology ETF |
|
|
$— |
|
|
$— |
|
|
|
|
|
|
|
|
NOTE
3 – INVESTMENT ADVISORY AND OTHER AGREEMENTS
Management
The
Adviser acts as each Fund’s investment adviser pursuant to an investment
advisory agreement with the Trust (the “Investment Advisory Agreement”).
NEOS
Investment Management, LLC (the “Sub-Adviser”) acts as the sub-adviser to each
of the Funds pursuant to investment sub-advisory agreement with the Adviser (the
“Sub-Advisory Agreement”).
Under
the Investment Advisory Agreement the Adviser provides investment advisory
services to the Funds, including providing oversight of the Sub-Adviser, as well
as daily monitoring of the purchase and sale of securities by the Sub-Adviser
for the Funds and regular review of the Sub-Adviser’s performance. The
Investment Advisory Agreement provides that the Adviser will furnish investment
advisory services in connection with the management of the Funds. The Adviser
provides portfolio management services, including developing investment
recommendations, and provides certain administrative services as well as
overseeing and monitoring the nature and quality of the services provided by
other service providers to the Funds. The Adviser performs compliance monitoring
services to help each Fund maintain compliance with applicable laws and
regulations and provides services related to, among others, the valuation of
Fund securities, risk management and oversight of trade execution and brokerage
services carried out by the Sub-Adviser.
Pursuant
to the Investment Advisory Agreement, RSHO, HRTS, and CANC pays the Adviser a
monthly unitary management fee at an annual rate of 0.99%, based on each Fund’s
average daily net assets. TOLL pays the Adviser a monthly unitary management fee
at an annual rate of 0.55%, based on the Fund’s average daily net assets. VOLT
pays the Advisor a monthly unitary management fee at an annual rate of 0.75%,
based on the Fund’s average daily net assets. DSPY pays the Adviser a monthly
unitary management fee at an annual rate of 0.18%, based on the Fund’s average
daily net assets.
Under
the Investment Advisory Agreement, the Adviser has agreed to pay all operating
expenses of each Fund, except for certain expenses, including but not limited
to, interest expenses, taxes, brokerage expenses, future Rule 12b-1 fees (if
any), and the management fee payable to the Adviser under the Investment
Advisory Agreement.
Pursuant
to the Sub-Advisory Agreement, the Adviser compensates the Sub-Adviser out of
the management fees it receives from the Funds.
The
Adviser has contractually agreed to waive its fees and reimburse expenses to the
extent necessary to keep total annual operating expenses for RSHO, HRTS, and
CANC including acquired fund fees and expenses for money market funds (excluding
acquired fund fees and expenses of investment companies other than money market
funds, amounts payable pursuant to any plan adopted in accordance with
Rule 12b-1, interest expense, taxes, brokerage commissions, other
expenditures which are capitalized in accordance with generally accepted
accounting principles, and extraordinary expenses) from exceeding 0.75% of the
average daily net assets of each Fund until at least June 28, 2027. The
Adviser may not terminate the fee waiver during the contractual period. Each
waiver/expense payment by the Adviser is subject to recoupment by the Adviser
from the Funds in the three years following the date the waiver/expense
