10-QPeriod: Q3 FY2018

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2018

Filed August 7, 2018For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported its financial condition for the period ending June 30, 2018. The Trust's primary asset is its investment in gold, which decreased in fair value from $35,669,225,000 in September 2017 to $33,034,479,000 as of June 30, 2018. This decline reflects a significant unrealized depreciation in the value of its gold holdings during the period. Consequently, the Trust's Net Assets also decreased from $35,657,505,000 to $32,916,642,000, with the Net Asset Value (NAV) per Share falling from $121.91 to $118.45. Operationally, the Trust experienced a net loss of $2,020,347,000 for the three months ended June 30, 2018, largely driven by unrealized losses on its gold investment. The Trust's expense ratio remained stable at 0.40%. The number of outstanding shares also decreased significantly from 292,500,000 to 277,900,000 during the nine months ended June 30, 2018, indicating net redemptions. Investors should note the direct correlation between the Trust's performance and the price of gold, with its operations primarily focused on holding gold bullion.

Financial Highlights

10 data points
Beta

Net Income

-$2.02B

EPS (Diluted)

$-7.01

Total Assets

$33.03B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$35.60M
Net Income-$2.02B
EPS (Basic)$-7.01
Shares Outstanding (Basic)288.15M

Key Highlights

  • 1The Trust's investment in gold decreased in fair value from approximately $35.7 billion to $33.0 billion between September 30, 2017, and June 30, 2018.
  • 2Net Assets of the Trust declined from approximately $35.7 billion to $32.9 billion over the same period.
  • 3Net Asset Value (NAV) per Share decreased from $121.91 to $118.45.
  • 4The Trust reported a significant net loss of $2.02 billion for the three months ended June 30, 2018, primarily due to unrealized losses on gold.
  • 5There was a net decrease in outstanding Shares from 292,500,000 to 277,900,000 during the nine months ended June 30, 2018, indicating net redemptions.
  • 6The Trust's expense ratio remained consistently at 0.40% of average net assets.
  • 7The Trust does not hold any derivative instruments and has no cash balances, as it uses gold to pay expenses.

Frequently Asked Questions

The primary driver of the Trust's net loss of $2,020,347,000 for the three months ended June 30, 2018, was the net change in unrealized depreciation on its investment in gold, which amounted to $2,061,214,000.

The Trust's investment in gold decreased in fair value from $35,669,225,000 at September 30, 2017, to $33,034,479,000 at June 30, 2018. This reduction is due to both a decrease in the amount of gold held (from 27,799.3 ounces to 26,418.1 ounces) and a decline in the fair value per ounce.

The Trust's expense ratio (Net Expenses) remained constant at 0.40% of average net assets for the three and nine month periods ended June 30, 2018, and 2017. This is the annual rate charged by the Sponsor for managing the Trust and covering ordinary expenses.

No, the Trust does not maintain any cash balances. When expenses need to be paid, the Trustee sells the smallest amount of gold necessary to cover these costs. As a result, the Trust typically has a zero cash balance at the end of each reporting period.