10-QPeriod: Q2 FY2021

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2021

Filed May 6, 2021For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported a significant decrease in net assets and share count for the quarter ended March 31, 2021, compared to the previous fiscal year-end. Total assets and net assets fell from $76.98 billion and $76.95 billion respectively at September 30, 2020, to $56.41 billion and $56.39 billion at March 31, 2021. This decline is primarily attributed to substantial redemptions of shares, with over 116 million shares redeemed during the six-month period ending March 31, 2021, compared to creations of just over 38 million shares. The Trust experienced a net investment loss and a significant net change in unrealized depreciation on its gold holdings. For the six months ended March 31, 2021, the Trust reported a net loss of $7.34 billion, largely driven by an unrealized depreciation of $10.61 billion in the value of its gold investments, partially offset by realized gains from gold distributed for redemptions and gold sold to pay expenses. Investors should note that the Trust's performance is directly tied to the price of gold bullion, and the substantial unrealized depreciation reflects a decline in gold prices during the period.

Financial Highlights

9 data points
Beta

Net Income

-$7.29B

EPS (Diluted)

$-18.97

Total Assets

$56.41B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$63.97M
Net Income-$7.29B
EPS (Basic)$-18.97
Shares Outstanding (Basic)384.29M

Key Highlights

  • 1Net assets decreased by approximately 26.7% from $76.95 billion (September 30, 2020) to $56.39 billion (March 31, 2021).
  • 2Outstanding shares significantly decreased from 434.4 million (September 30, 2020) to 355.9 million (March 31, 2021), indicating net redemptions.
  • 3The Trust reported a net loss of $7.34 billion for the six months ended March 31, 2021, primarily due to a $10.61 billion unrealized depreciation in the value of its gold holdings.
  • 4For the six months ended March 31, 2021, redemptions of shares valued at $19.94 billion were substantially higher than creations valued at $6.71 billion.
  • 5The Trust's sole asset is physical gold, valued at $56.41 billion at March 31, 2021, held by the Custodian.
  • 6Sponsor fees remained a consistent expense, totaling $138.5 million for the six months ended March 31, 2021.
  • 7The Trust does not hold any derivative instruments or engage in hedging activities.

Frequently Asked Questions

The primary driver for the decrease in net assets from $76.95 billion to $56.39 billion was a substantial volume of share redemptions exceeding creations during the period. This is reflected in the significant drop in outstanding shares and the large negative net change in the value of shares redeemed compared to those created.

The Trust's financial results were significantly impacted by gold price fluctuations, specifically an unrealized depreciation of $10.61 billion on its gold holdings during the six months ended March 31, 2021. This unrealized loss was the largest component contributing to the Trust's overall net loss of $7.34 billion for the period.

No, the SPDR Gold Trust's investment objective is to reflect the performance of the price of gold bullion, less expenses. The Trustee does not actively manage the gold or employ hedging techniques to reduce the risk of losses from price decreases. The Trust's performance is directly tied to the market price of gold.

The primary recurring expense is the Sponsor's fee, which accrues daily at an annual rate of 0.40% of the daily Net Asset Value (NAV). This fee covers various operational costs, including fees for the Trustee, Custodian, Sponsor, marketing, legal, and audit expenses.