01—Abstract
Summary
Summary of the 10-K filed November 28, 2016. Cited figures are marked; the original filing is the authoritative source.
SPDR Gold Trust (GLD) provides investors with a cost-effective and convenient way to gain exposure to the price of gold bullion.
The Trust aims to reflect the performance of gold prices, less trust expenses. As of September 30, 2016, the Trust held approximately 30.5 million ounces of gold, valued at over $40 billiona. The Trust's primary expense is the Sponsor's fee, which has been set at 0.40% of the daily Net Asset Value (NAV) since July 17, 2015, covering all ordinary operating expenses.
For the fiscal year ended September 30, 2016, the Trust reported a net income of approximately $4.95 billionb, primarily driven by a significant unrealized gain on its gold holdings. This contrasts with a net loss of approximately $2.69 billion in the previous fiscal year. Investors should note that the value of the Shares is directly tied to the price of gold, which can be volatile and influenced by numerous global economic and geopolitical factors.
02—Key points
Key Highlights
- SPDR Gold Trust (GLD) aims to track the price of gold bullion, less expenses.
- As of September 30, 2016, the Trust held over 30 million ounces of gold valued at approximately $40.36 billion.
- The Trust reported a net income of $4.95 billion for the fiscal year ended September 30, 2016, a significant turnaround from a net loss of $2.69 billion in the prior year.
- The primary expense is the Sponsor's fee of 0.40% of daily NAV, covering ordinary operating expenses.
- The Net Asset Value (NAV) is determined daily based on the LBMA Gold Price PM.
- Shares are created and redeemed by Authorized Participants in Baskets (100,000 Shares each).
- The Trust is not actively managed and does not employ hedging strategies.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2016filed November 28, 2016Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Gross Profit | $0$0 | — |
| Operating Expenses | $127.08M$114.11M | +11.4% |
| Operating Income | -$127.08M-$110.01M | −15.5% |
| Net Income | $4.95B-$2.69B | +284.4% |
| EPS (Basic) | $18.36$-11.10 | +265.4% |
| Shares Outstanding (Basic) | 269.74M241.86M | +11.5% |
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.
How is the Net Asset Value (NAV) of the SPDR Gold Trust determined?
The NAV is determined daily by the Trustee based on the LBMA Gold Price PM (or the next most recent LBMA Gold Price if PM is unavailable by noon New York time), less estimated accrued expenses and other liabilities of the Trust.
What are the main expenses incurred by the SPDR Gold Trust?
Since July 17, 2015, the Trust's primary recurring expense is the Sponsor's fee, set at an annual rate of 0.40% of the daily NAV. This fee covers ordinary operating expenses, including fees for the Trustee, Custodian, Marketing Agent, and other administrative and marketing costs.
How does an investor gain or lose value from holding SPDR Gold Shares?
The value of SPDR Gold Shares is directly linked to the market price of gold bullion. Fluctuations in the price of gold will materially affect an investment in the Shares. The value of the Shares will also be reduced by the Trust's expenses, which lead to a gradual decrease in the amount of gold represented by each Share over time.
06—Continue