10-KPeriod: FY2015

SPDR GOLD TRUST Annual Report, Year Ended Sep 30, 2015

Filed November 24, 2015For Securities:GLD

Summary

The SPDR Gold Trust (GLD) 10-K filing for the fiscal year ended September 30, 2015, reveals a passive investment vehicle designed to track the price of gold bullion. The Trust holds physical gold, and its Shares represent fractional ownership interests in this gold. Key operational aspects include the creation and redemption of Shares through Authorized Participants and the daily valuation of gold based on the LBMA Gold Price. Financially, the Trust experienced a significant net loss of $2,685,202,000 for the fiscal year ended September 30, 2015. This loss is primarily attributed to a substantial unrealized depreciation on its gold holdings. The Trust's expenses are managed by the Sponsor, who assumed responsibility for all ordinary expenses in exchange for a fee, which was the primary recurring expense for the period. Investors should note that the amount of gold backing each share gradually decreases over time due to the sale of gold to cover Trust expenses.

Financial Highlights

15 data points
Beta

Net Income

-$2.69B

EPS (Diluted)

$-11.10

Total Assets

$24.62B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Gross Profit$0
Operating Expenses$114.11M
Operating Income-$110.01M
Net Income-$2.69B
EPS (Basic)$-11.10
Shares Outstanding (Basic)241.86M

Key Highlights

  • 1The Trust's primary objective is to reflect the performance of the price of gold bullion, less expenses.
  • 2Gold is held by HSBC Bank plc as the Custodian in London.
  • 3The Trust experienced a net loss of approximately $2.685 billion for the fiscal year ended September 30, 2015.
  • 4As of September 30, 2015, the Trust held 21,995.8 ounces of gold with a market value of $24.5 billion.
  • 5Effective July 17, 2015, the Sponsor's fee became the sole recurring fixed expense for the Trust, set at 0.40% of the daily Net Asset Value.
  • 6The LBMA Gold Price is used for daily valuation of the Trust's gold holdings.
  • 7The amount of gold represented by each Share is expected to gradually decrease over time due to the sale of gold to cover Trust expenses.

Frequently Asked Questions

The SPDR Gold Trust (GLD) is an investment trust that holds physical gold bullion. Shares of the Trust represent fractional undivided beneficial interests in the gold held by the Trust. Investors can buy and sell these Shares on stock exchanges, providing a convenient way to gain exposure to the price of gold without directly holding the physical commodity.

The primary risk is the fluctuation in the price of gold. The value of the Shares is directly tied to the market value of the gold held by the Trust. If the price of gold declines, the value of the Shares will also decline. Additionally, the amount of gold backing each share gradually decreases over time due to the sale of gold to cover the Trust's operating expenses.

Effective July 17, 2015, the Trust's only recurring expense is the Sponsor's fee, which accrues daily at an annual rate of 0.40% of the daily Net Asset Value. In exchange for this fee, the Sponsor assumes responsibility for all ordinary fees and expenses of the Trust, including those of the Trustee, Custodian, and marketing agent. Previously, these expenses were itemized and paid by the Trust.

The value of the gold held by the Trust is determined daily based on the LBMA Gold Price PM. The Net Asset Value (NAV) per Share is calculated by subtracting the Trust's liabilities (including accrued expenses) from the total value of its gold holdings and dividing by the number of outstanding Shares. The Shares then trade on the NYSE Arca at market prices that can fluctuate around the NAV.