10-QPeriod: Q3 FY2015

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2015

Filed July 31, 2015For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported its quarterly results for the period ending June 30, 2015. The Trust's primary asset is gold bullion, and its performance is directly tied to the price of gold. During this quarter, GLD experienced a net loss of $375.173 million, a significant shift from a net income of $67.953 million in the same period of the prior year. This change is largely attributable to a substantial unrealized loss on its investment in gold, reflecting a decline in gold prices during the quarter. The Trust's net assets decreased to $26.77 billion from $30.25 billion at the end of the prior fiscal year, primarily due to share redemptions exceeding creations and the depreciation in the value of gold. Key operational aspects include the adoption of investment company accounting standards effective October 1, 2014, which resulted in reporting gold at fair value and recognizing unrealized gains and losses in the statement of operations. The Trust had no cash balance at the end of the period, as gold is sold to cover expenses. Investors should note the recent transition to the LBMA Gold Price PM for valuation and the associated risks regarding benchmark integrity.

Financial Highlights

12 data points
Beta

Net Income

-$375.17M

EPS (Diluted)

$-1.55

Total Assets

$26.85B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$27.65M
Operating Income-$27.65M
Net Income-$375.17M
EPS (Basic)$-1.55
Shares Outstanding (Basic)242.37M

Key Highlights

  • 1The Trust reported a net loss of $375.17 million for the three months ended June 30, 2015, compared to a net income of $67.95 million in the prior year's quarter.
  • 2Net assets decreased to $26.77 billion as of June 30, 2015, from $30.25 billion as of September 30, 2014, driven by net redemptions and the decline in gold value.
  • 3The Trust experienced a significant net change in unrealized depreciation on its gold holdings, amounting to $281.15 million for the quarter.
  • 4Total expenses for the quarter decreased slightly to $27.65 million from $32.61 million in the prior year's quarter, with fees waived by the Sponsor and Marketing Agent for the nine-month period ended June 30, 2015.
  • 5As of June 30, 2015, the Trust held 22.93 million ounces of gold with a fair value of $26.85 billion.
  • 6The Trust adopted investment company accounting standards effective October 1, 2014, impacting how gold is valued and how gains/losses are recognized.
  • 7The Trust had no cash balance at the period end, as gold is sold to cover operational expenses.

Frequently Asked Questions

The significant net loss of $375.17 million for the three months ended June 30, 2015, was primarily due to a substantial net change in unrealized depreciation on the Trust's gold holdings, amounting to $281.15 million. This reflects the decline in the market value of gold during the quarter.

The Trust's net assets decreased to $26.77 billion as of June 30, 2015, from $30.25 billion as of September 30, 2014. This reduction was influenced by more shares being redeemed than created, alongside the depreciation in the value of the gold held by the Trust.

Effective October 1, 2014, the Trust adopted investment company accounting standards. Gold is now reported at fair value on the Statement of Financial Condition. The fair value is determined using the LBMA Gold Price PM on each day the NYSE Arca is open for regular trading. Previously, gold was reported at the lower of average cost or market value.

No, the Trust generally does not hold cash. When gold is sold to cover expenses, the Trustee aims to sell only the amount of gold necessary to cover those expenses, minimizing the Trust's holdings of assets other than gold. As a result, the Trust typically has a zero cash balance at the end of each reporting period.