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| 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.