Summary
SPDR Gold Trust (GLD) filed an 8-K on July 17, 2015, detailing significant amendments to its governing documents, primarily focused on how the Trust's ordinary fees and expenses are handled. The most impactful change is the execution of Amendment No. 6 to the Trust Indenture, which shifts the responsibility for all ordinary fees and expenses to the Sponsor, World Gold Trust Services, LLC. In exchange for assuming these costs, the Sponsor will receive a fee of 0.40% per year of the Trust's daily Net Asset Value (NAV). These changes are effective as of July 17, 2015, and necessitated further amendments to related agreements, including the Allocated Bullion Account Agreement, Unallocated Bullion Account Agreement with the Custodian (HSBC Bank plc), and the Marketing Agent Agreement with State Street Global Markets, LLC. Investors should note that this amendment alters the cost structure of the Trust, potentially impacting the net returns, and clarifies the Sponsor's role in managing operational expenses.
Key Highlights
- 1SPDR Gold Trust executed Amendment No. 6 to its Trust Indenture, effective July 17, 2015.
- 2The Sponsor (World Gold Trust Services, LLC) will now be responsible for all ordinary fees and expenses of the Trust.
- 3In return for assuming these expenses, the Sponsor will be paid an annual fee of 0.40% of the Trust's daily Net Asset Value (NAV).
- 4This change impacts the expense structure and operational management of the Trust.
- 5Conforming amendments were made to the Allocated Bullion Account Agreement, Unallocated Bullion Account Agreement, and the Marketing Agent Agreement.
- 6These amendments are designed to streamline the management of Trust expenses and clarify the roles of the Sponsor and service providers.