Summary
This 8-K filing from SPDR Gold Trust (GLD) on November 9, 2011, primarily announces an amendment to the Marketing Agent Agreement. The key development is the extension of a fee reduction provision that was originally set to expire on November 11, 2011. This provision ensures that if the Trust's ordinary expenses exceed 0.40% of its daily Adjusted Net Asset Value in any given month, the fees payable to the Sponsor (World Gold Trust Services, LLC) and the Marketing Agent (State Street Global Markets, LLC) will be reduced by the excess amount, shared equally up to the total fee amount. This amendment is significant for investors as it provides continued cost certainty and potentially lower overall expenses for the Trust. By extending the fee reduction mechanism, the Sponsor and Marketing Agent demonstrate a commitment to managing the Trust's operational costs, which directly impacts the net returns realized by GLD shareholders. The fee reduction is contingent on the Trust's expenses relative to its net asset value, offering a performance-based element to the fee structure.
Key Highlights
- 1Amendment to the Marketing Agent Agreement extending a fee reduction provision.
- 2The fee reduction provision was set to expire on November 11, 2011, and has now been extended indefinitely as long as the agreement remains in effect.
- 3The fee reduction applies if the Trust's ordinary expenses exceed 0.40% per year of the daily Adjusted Net Asset Value for a given month.
- 4The excess expenses leading to a fee reduction are shared equally between the Sponsor (World Gold Trust Services, LLC) and the Marketing Agent (State Street Global Markets, LLC), up to the amount of their respective fees.
- 5This amendment aims to provide continued cost management and potential expense savings for GLD shareholders.
- 6The filing includes Exhibit 10.6, which is Amendment No. 4 to the Marketing Agent Agreement.