Summary
This 8-K filing from SPDR Gold Trust (GLD) on June 1, 2011, details significant amendments to its gold custody agreements. The primary change involves the "First Amended and Restated Unallocated Bullion Account Agreement" and the "First Amended and Restated Allocated Bullion Account Agreement," effective as of the same date. These amendments alter how gold is managed between the Trust's unallocated and allocated accounts. Specifically, the Trust will now ensure that at the end of each business day, none of its gold is held in an unallocated account. Previously, a standing instruction allowed up to 430 fine ounces to remain in the unallocated account. This change, authorized by an amendment to the Trust Indenture, streamlines the custody arrangement, potentially enhancing the direct allocation of gold to the Trust's holdings. Investors should note this operational adjustment as it impacts the daily structure of the Trust's gold reserves.
Key Highlights
- 1Effective June 1, 2011, SPDR Gold Trust (GLD) amended and restated its gold custody agreements with The Bank of New York Mellon (Trustee) and HSBC Bank USA, National Association (Custodian).
- 2The "First Amended and Restated Unallocated Bullion Account Agreement" and "First Amended and Restated Allocated Bullion Account Agreement" are the key documents updated.
- 3A significant operational change is that, as of the effective date, no gold will be held in the Trust's unallocated account at the end of each business day.
- 4This replaces a previous arrangement where up to 430 fine ounces could remain in the unallocated account.
- 5The Trust Indenture was also amended (Amendment No. 3) to authorize the Trustee to enter into these new custody arrangements.
- 6World Gold Trust Services, LLC, as the sponsor, has approved and facilitated these changes.
- 7The filing includes these amendments as exhibits to the 8-K report.