10-QPeriod: Q2 FY2015

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2015

Filed May 6, 2015For Securities:GLD

Summary

This report for the SPDR Gold Trust (GLD) for the quarter ending March 31, 2015, highlights a shift in accounting practices to align with investment company standards, effective October 1, 2014. The Trust's primary asset is its investment in gold, valued at approximately $28.1 billion at the end of the period. Total liabilities were minimal, amounting to $12.1 million. A key operational metric is the Net Asset Value (NAV) per Share, which stood at $113.91 on March 31, 2015. The Trust experienced a net loss of $484.7 million for the quarter, largely driven by a significant unrealized loss on its gold holdings, reflecting the volatility of gold prices. Investors should note the shift in reporting to fair value for gold and the inclusion of unrealized gains/losses in the Statement of Operations. The report also details the Trust's operational metrics, including a decrease in outstanding shares from 257.3 million to 246.9 million during the quarter. The Trust operates with no cash reserves, as gold is sold to cover expenses, aligning with its objective of reflecting the price of gold bullion. The introduction of the LBMA Gold Price PM as the primary valuation benchmark for gold is a significant development, replacing the London Gold Fix. Investors should be aware of the risks associated with this new benchmark and potential price discrepancies.

Financial Highlights

12 data points
Beta

Net Income

-$484.67M

EPS (Diluted)

$-1.94

Total Assets

$28.14B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$29.81M
Operating Income-$28.86M
Net Income-$484.67M
EPS (Basic)$-1.94
Shares Outstanding (Basic)250.39M

Key Highlights

  • 1The SPDR Gold Trust (GLD) reported approximately $28.1 billion in assets under management as of March 31, 2015, primarily consisting of physical gold.
  • 2Net Asset Value (NAV) per Share was $113.91 at the end of the quarter.
  • 3The Trust recorded a net loss of $484.7 million for the three months ended March 31, 2015, primarily due to unrealized losses on gold holdings.
  • 4Total outstanding shares decreased from approximately 257.3 million to 246.9 million during the quarter.
  • 5The Trust adopted investment company accounting standards effective October 1, 2014, leading to changes in financial statement presentation, including valuing gold at fair value and recognizing unrealized gains/losses.
  • 6The LBMA Gold Price PM, a new benchmark, replaced the London Gold Fix for valuing the Trust's gold holdings starting March 20, 2015.
  • 7The Trust maintains no cash balance, as gold is sold to cover operational expenses.

Frequently Asked Questions

The primary asset held by the SPDR Gold Trust is physical gold bullion.

The value of the Trust's gold holdings is determined using the LBMA Gold Price PM. Prior to March 20, 2015, it used the London Gold Fix. The valuation is performed on each day the NYSE Arca is open for trading.

The Trust experienced a net loss of $484.7 million for the three months ended March 31, 2015. This was largely driven by a net change in unrealized losses on its gold investment.

The Trust's operational expenses are covered by selling the exact amount of gold needed to pay those expenses. This strategy minimizes the Trust's holdings of assets other than gold, resulting in no cash balance at the end of reporting periods.