Summary
The SPDR Gold Trust (GLD) reported its financial condition for the period ending December 31, 2015. The Trust experienced a net decrease in Shares Outstanding during the quarter, with redemptions significantly outweighing creations. This resulted in a decrease in the Trust's net assets and a decline in the Net Asset Value (NAV) per Share from $106.68 to $101.62. The total assets, primarily composed of investment in gold, decreased from $24,620,671,000 to $21,979,062,000. Total liabilities also increased, largely due to a new gold payable of $40,650,000. The Trust incurred a net loss of $1,143,013,000 for the three months ended December 31, 2015, driven by a substantial net change in unrealized depreciation on its gold holdings.
Financial Highlights
12 data pointsBeta
Financial Statements
Beta
| Operating Expenses | $23.82M |
| Operating Income | -$23.82M |
| Net Income | -$1.14B |
| EPS (Basic) | $-5.11 |
| Shares Outstanding (Basic) | 223.62M |
Key Highlights
- 1Net Assets decreased from $24,612,170,000 (September 30, 2015) to $21,930,606,000 (December 31, 2015).
- 2Shares outstanding decreased significantly from 230,700,000 to 215,800,000 during the quarter.
- 3Net Asset Value (NAV) per Share declined from $106.68 to $101.62.
- 4The Trust reported a net loss of $1,143,013,000 for the three months ended December 31, 2015, compared to a net loss of $469,526,000 for the same period in 2014.
- 5Total expenses for the three months ended December 31, 2015 were $23,818,000, a decrease from $31,685,000 in the prior year period, primarily due to the elimination of custody, trustee, and marketing agent fees being absorbed by the Sponsor.
- 6The value of investment in gold decreased from $24,503,318,000 to $21,979,062,000, reflecting a significant unrealized depreciation of $753,891,000 during the quarter.
- 7The Trust held no cash balances at the end of the period, aligning with its operational strategy of selling gold to cover expenses.
Frequently Asked Questions
The primary driver of the decrease in Net Assets was a significant net decrease in Shares Outstanding, with redemptions ($3,050,374,000) substantially exceeding creations ($1,511,823,000) during the quarter. This, combined with a substantial net change in unrealized depreciation on the investment in gold (a loss of $753,891,000), led to a net loss for the period and a reduction in Net Assets.
Effective July 17, 2015, the Trust's only recurring expense is the Sponsor's fee (0.40% of daily NAV), with the Sponsor assuming responsibility for all ordinary fees and expenses, including those of the Trustee, Custodian, and Marketing Agent. This resulted in a significant decrease in direct expenses reported by the Trust for the current period compared to the prior year, as many of these costs are now borne by the Sponsor and not directly expensed by the Trust.
The Trust does not maintain cash balances. Its operational strategy involves selling gold held by the Trust as needed to pay for expenses. Consequently, the Trust typically ends each reporting period with zero cash.
Effective October 1, 2014, the Trust adopted accounting and reporting guidance for investment companies. This resulted in reporting its investment in gold at fair value (instead of lower of cost or market), recognizing the net change in unrealized appreciation/depreciation on gold in the Statements of Operations, and classifying Shares as Net Assets. This adoption primarily affects the accounting and presentation of financial information rather than the Trust's underlying investment objective or operations.