01—Abstract
Summary
Summary of the 10-K filed November 27, 2018. 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, 2018.
The Trust's primary objective is to reflect the performance of the price of gold bullion, less its expenses. As of September 30, 2018, the Trust held approximately 23.86 million ounces of gold, valued at $28.33 billiona. The Trust's net assets stood at $28.32 billion.
For the fiscal year ended September 30, 2018, the Trust reported a net loss of $2.62 billionb, primarily driven by a significant decrease in the unrealized appreciation of its gold holdings. This financial performance is directly tied to the fluctuations in the price of gold, which experienced volatility during the reporting period.
The Trust's expenses, primarily the sponsor fee, are paid through the sale of gold, leading to a gradual decrease in the amount of gold represented by each outstanding share over time. Investors should note that the Trust is a passive investment vehicle and does not engage in active management or hedging strategies.
02—Key points
Key Highlights
- The SPDR Gold Trust (GLD) aims to track the price of gold bullion, less expenses.
- As of September 30, 2018, the Trust held approximately 23.86 million ounces of gold, valued at $28.33 billion.
- The Trust reported a net loss of $2.62 billion for the fiscal year ended September 30, 2018, largely due to changes in the market value of its gold holdings.
- The Trust's primary recurring expense is the Sponsor's fee, which accrues daily at an annual rate of 0.40% of the daily Net Asset Value (NAV).
- The amount of gold represented by each Share gradually decreases over time due to the sale of gold to cover Trust expenses.
- Shares are created and redeemed by Authorized Participants in Baskets, with a transaction fee of $2,000 per order.
- The value of the Shares is determined using the LBMA Gold Price PM as the primary valuation benchmark.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2018filed November 27, 2018Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Operating Expenses | $136.30M$136.08M | +0.2% |
| Net Income | -$2.62B-$1.89B | −38.3% |
| EPS (Basic) | $-9.35$-6.59 | −41.9% |
| Shares Outstanding (Basic) | 280.15M287.35M | −2.5% |
05—Questions
Frequently Asked Questions
What is the primary investment objective of the SPDR Gold Trust (GLD)?
The primary investment objective of the SPDR Gold Trust is for its Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. It offers investors a way to gain exposure to the gold market without the complexities of directly holding physical gold.
How are the Trust's expenses paid?
The Trust's expenses, primarily the Sponsor's fee, are paid by selling the Trust's gold holdings as needed. This process means that over time, the amount of gold backing each Share gradually decreases, irrespective of the gold price's performance.
What is the role of Authorized Participants in GLD?
Authorized Participants are typically large financial institutions that interact directly with the Trust to create or redeem Baskets of Shares. They facilitate the flow of Shares into and out of the market by delivering physical gold to the Trust in exchange for new Shares, or by redeeming Shares in exchange for gold. They are charged a transaction fee for these services.
How is the Net Asset Value (NAV) of GLD determined?
The Net Asset Value (NAV) of the Trust is determined daily by valuing the gold held by the Trust based on the LBMA Gold Price PM. All estimated accrued fees, expenses, and other liabilities are then subtracted from the total value of the Trust's assets.
06—Continue