10-QPeriod: Q3 FY2019

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2019

Filed August 6, 2019For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported a significant increase in its Net Assets for the period ending June 30, 2019, reaching $35.96 billion, up from $28.32 billion at the end of the prior fiscal year. This growth is primarily driven by a substantial unrealized appreciation in the value of its gold holdings, which rose to $36.14 billion from $28.33 billion. The Trust experienced a net income of $2.75 billion for the three months ended June 30, 2019, a significant turnaround from a net loss of $2.02 billion in the same period of the prior year, largely due to a strong positive change in the unrealized appreciation of gold. During the nine months ended June 30, 2019, the Trust saw increased activity in share creations and redemptions, with net creations totaling 18,400,000 shares valued at approximately $2.26 billion more than redemptions. This indicates growing investor interest or a net inflow of assets into the trust. Despite the overall positive financial performance driven by gold price appreciation, investors should note that the Trust's objective is to reflect the performance of gold bullion prices less expenses, and as such, the value of shares is directly tied to gold market volatility.

Financial Highlights

9 data points
Beta

Net Income

$2.75B

EPS (Diluted)

$10.68

Total Assets

$36.14B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$31.69M
Net Income$2.75B
EPS (Basic)$10.68
Shares Outstanding (Basic)257.06M

Key Highlights

  • 1Net Assets increased substantially to $35.96 billion as of June 30, 2019, from $28.32 billion as of September 30, 2018, driven by gold price appreciation.
  • 2The fair value of the Trust's gold holdings increased to $36.14 billion, reflecting a significant gain in gold prices during the period.
  • 3The Trust reported a net income of $2.75 billion for the three months ended June 30, 2019, a strong recovery from a net loss of $2.02 billion in the prior year's comparable period.
  • 4Net realized and change in unrealized gain/(loss) on investment in gold was a positive $2.78 billion for the three months ended June 30, 2019, compared to a negative $1.98 billion in the prior year.
  • 5There was a net increase in the number of shares created (18.4 million) versus redeemed (14.6 million) for the nine months ended June 30, 2019, indicating net inflows.
  • 6The Trust's net investment loss was minimal at $31.69 million for the three months ended June 30, 2019, demonstrating efficient cost management.
  • 7Total return at net asset value for the three months ended June 30, 2019, was a positive 8.66%, indicating strong performance aligned with gold price movements.

Frequently Asked Questions

The primary driver of SPDR Gold Trust's (GLD) Net Assets growth is the change in the fair value of its gold holdings. For the period ending June 30, 2019, the significant increase in Net Assets was directly correlated with the substantial appreciation in the market price of gold.

SPDR Gold Trust (GLD) primarily generates income or loss from the net realized and changes in unrealized gains or losses on its investment in gold. The Trust also incurs expenses, primarily Sponsor fees, which contribute to a net investment loss. For the period, strong gains from gold price movements significantly outweighed the expenses.

Creations and redemptions are how Authorized Participants can create or redeem units of the Trust. For the nine months ended June 30, 2019, there were more creations (18.4 million shares) than redemptions (14.6 million shares), indicating a net inflow of assets into the Trust. This activity helps the Trust's share price track the net asset value (NAV) of the underlying gold.

As of June 30, 2019, the Trust did not have any cash balances. The Trust's policy is to minimize holdings of assets other than gold by selling only the exact amount of gold needed to cover expenses, which often results in zero cash balances at the end of reporting periods.