01—Abstract
Summary
Summary of the 10-K filed November 25, 2008. Cited figures are marked; the original filing is the authoritative source.
SPDR Gold Trust (GLD) filed its annual report on Form 10-K for the period ending September 29, 2008.
The Trust's primary objective is to provide investors with a convenient and cost-effective way to gain exposure to the price of gold bullion. The Trust holds physical gold, and its shares are designed to track the performance of gold prices, less expenses. As of September 30, 2008, the Trust held approximately 23.3 million ounces of gold, valued at over $20.5 billiona.
The filing details the Trust's operational structure, including its sponsor (World Gold Trust Services, LLC), trustee (BNY Mellon Asset Servicing), custodian (HSBC Bank USA, N.A.), and marketing agent (State Street Global Markets, LLC). During the fiscal year, the Trust experienced significant growth in its gold holdings and market value, reflecting the overall increase in gold prices during a period of global economic uncertainty and financial crisis.
The report highlights the operational expenses, which include fees for custody, trustee, sponsor, and marketing services, all of which are paid from the Trust's assets through the sale of gold. The filing also outlines various risks associated with investing in gold and the Trust, including price volatility, potential discounts or premiums of the shares relative to Net Asset Value, and the impact of Trust expenses on returns.
02—Key points
Key Highlights
- SPDR Gold Trust (GLD) aims to track the performance of gold bullion prices, less expenses.
- As of September 30, 2008, the Trust held approximately 23.3 million ounces of gold valued at over $20.5 billion.
- The Trust's operational structure involves key service providers: Sponsor (WGTS), Trustee (BNY Mellon), Custodian (HSBC), and Marketing Agent (State Street Global Markets).
- Trust expenses, such as custody, trustee, sponsor, and marketing fees, are paid from the Trust's gold holdings.
- The filing details the Trust's listing on NYSE Arca and other international exchanges.
- Significant risks include gold price volatility, potential trading price deviations from Net Asset Value (NAV), and the impact of expenses on returns.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2008filed November 25, 2008Financial Statements
FY2008 against FY2007
| Line item | FY2008FY2007 | Change |
|---|---|---|
| Gross Profit | $17.99M$6.91M | +160.4% |
| Operating Expenses | $70.57M$39.67M | +77.9% |
| Net Income | $1.97B$313.44M | +527.1% |
| EPS (Basic) | $9.60$2.05 | +368.3% |
| Shares Outstanding (Basic) | 204.76M152.87M | +33.9% |
05—Questions
Frequently Asked Questions
What is the primary investment objective of SPDR Gold Trust (GLD)?
The primary investment objective of SPDR Gold Trust is for its Shares to reflect the performance of the price of gold bullion, less the Trust’s expenses. It aims to provide investors with a cost-effective and convenient way to gain exposure to gold.
How are the Trust's expenses paid?
The Trust's expenses, including fees for custody, trustee, sponsor, and marketing services, are paid from the Trust's assets through the sale of its gold holdings. The Trustee sells gold as needed to cover these operational costs.
What is the role of the Sponsor (World Gold Trust Services, LLC) in the Trust?
The Sponsor is responsible for establishing the Trust, overseeing the performance of service providers, preparing regulatory filings, and marketing the Shares. The Sponsor also has the authority to direct the Trustee on certain actions, such as terminating the Trust if its NAV falls below a specified threshold.
What are the key risks associated with investing in GLD shares?
Key risks include the volatility of gold prices, the possibility that the trading price of GLD shares may trade at a premium or discount to the Net Asset Value (NAV) per share, and the ongoing dilution of the amount of gold represented by each share due to the sale of gold to cover Trust expenses.
06—Continue