Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|
| |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
® Long Dollar Gold Trust |
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| ||
® Gold MiniSharesSM Trust |
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|
Large accelerated filer |
☐ |
Accelerated filer |
☐ | |||
|
☐ |
Smaller reporting company |
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Page |
||||||
1 |
||||||
Item 1. |
1 | |||||
Item 2. |
40 | |||||
Item 3. |
46 | |||||
Item 4. |
46 | |||||
47 |
||||||
Item 1. |
47 | |||||
Item 1A. |
47 | |||||
Item 2. |
48 | |||||
Item 3. |
48 | |||||
Item 4. |
48 | |||||
Item 5. |
48 | |||||
Item 6. |
48 | |||||
50 |
Part 1. | FINANCIAL INFORMATION |
Documents |
Page |
|||
2 |
||||
15 |
||||
29 |
(Amounts in 000’s of US$) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
(unaudited) |
||||||||
ASSETS |
||||||||
Investment in Gold, at fair value (cost $ |
$ | |
$ | |
||||
Gold Delivery Agreement receivable |
|
|
||||||
Gold receivable |
— |
|
||||||
Total Assets |
$ | |
$ | |
||||
LIABILITIES |
||||||||
Accounts payable to Sponsor |
$ | |
$ | |
||||
Gold Delivery Agreement payable |
|
|
||||||
Total Liabilities |
$ | |
$ | |
||||
Net Assets |
$ | |
$ | |
||||
June 30, 2019 |
Ounces of gold |
Cost |
Fair Value |
% of Net Assets |
||||||||||||
(unaudited) |
||||||||||||||||
Investment in Gold |
|
$ | |
$ | |
|
% | |||||||||
Gold Delivery Agreement |
— |
— |
— |
|
% | |||||||||||
Total Investments |
|
$ | |
$ | |
|
% | |||||||||
Liabilities in excess of other assets |
( |
) | ( |
)% | ||||||||||||
Net Assets |
$ | |
|
% | ||||||||||||
Underlying Instrument |
Counter-Party |
Notional Value |
Expiration Date |
Unrealized Appreciation/(Depreciation) |
||||||||||||||||
Gold Delivery Agreement |
|
$ | |
|
$ |
September 30, 2018 |
Ounces of gold |
Cost |
Fair Value |
% of Net Assets |
||||||||||||
Investment in Gold |
|
$ | |
$ | |
|
% | |||||||||
Gold Delivery Agreement |
— |
— |
— |
|
% | |||||||||||
Total Investments |
|
$ | |
$ | |
|
% | |||||||||
Assets in excess of liabilities |
|
|
% | |||||||||||||
Net Assets |
$ | |
|
% | ||||||||||||
Underlying Instrument |
Counter-Party |
Notional Value |
Expiration Date |
Unrealized Appreciation/(Depreciation) |
||||||||||||||||
Gold Delivery Agreement |
|
$ | |
|
$ |
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
EXPENSES |
||||||||||||||||
Sponsor fees |
$ | |
$ | |
$ | |
$ | |
||||||||
Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Total expenses |
|
|
|
|
||||||||||||
Net investment loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized and change in unrealized gain/(loss) on investment in gold and Gold Delivery Agreement |
||||||||||||||||
Net realized gain/(loss) from investment in gold sold to pay Sponsor fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) on Gold Delivery Agreement |
( |
) | |
|
|
|||||||||||
Net realized gain/(loss) on gold transferred to cover Gold Delivery Agreement and Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) from gold distributed for the redemption of shares |
|
— |
|
|
||||||||||||
Net change in unrealized appreciation/(depreciation) on investment in gold |
|
( |
) | |
( |
) | ||||||||||
Net realized and change in unrealized gain/(loss) on investment in gold and Gold Delivery Agreement |
|
( |
) | |
( |
) | ||||||||||
Net Income/(Loss) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
INCREASE/DECREASE IN CASH FROM OPERATIONS: |
||||||||||||||||
Cash proceeds received from sales of gold |
$ | $ | $ | $ | ||||||||||||
Cash expenses paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Increase/(Decrease) in cash resulting from operations |
||||||||||||||||
INCREASE/DECREASE IN CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||||||
Cash proceeds from issuance of shares |
||||||||||||||||
Cash paid for repurchase of shares |
||||||||||||||||
Increase/(Decrease) in cash resulting from financing activities |
||||||||||||||||
Cash and cash equivalents at beginning of period |
||||||||||||||||
Cash and cash equivalents at end of period |
$ | $ | $ | $ | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: |
||||||||||||||||
Value of gold received for creation of shares - net of gold receivable |
$ |
$ |
$ |
$ |
||||||||||||
Value of gold distributed for redemption of shares - net of gold payable |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) | ||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING ACTIVITIES: |
||||||||||||||||
Value of Gold Delivery Agreement inflows - net of Gold Delivery Agreement receivable |
$ |
$ |
$ |
$ |
||||||||||||
Value of Gold Delivery Agreement outflows - net of Gold Delivery Agreement payable |
$ |
( |
) |
$ |
( |
$ |
( |
$ |
( |
|||||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||||||||||
Net Income/(Loss) |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
||||||||||||||||
Gold paid for Gold Delivery Provider fees |
||||||||||||||||
Proceeds from sales of gold to pay expenses |
||||||||||||||||
Net realized (gain)/loss from investment in gold sold to pay Sponsor fees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized (gain)/loss on Gold Delivery Agreement |
( |
) | ( |
) | ( |
) | ||||||||||
Net realized (gain)/loss on gold transferred to cover Gold Delivery Agreement and Gold Delivery Provider fees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized (gain)/loss from gold distributed for the redemption of shares |
( |
) | ( |
) | ( |
) | ||||||||||
Net change in unrealized (appreciation)/depreciation on investment in gold |
( |
) | ( |
) | 1,252 |
|||||||||||
Increase/(Decrease) in accounts payable to Sponsor |
||||||||||||||||
Net cash provided by operating activities |
$ | — |
$ | — |
$ | — |
$ | — |
||||||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
Net Assets - Opening Balance |
$ | |
$ | |
$ | |
$ | |
||||||||
Creations |
|
|
|
|
||||||||||||
Redemptions |
( |
) | — |
( |
) | ( |
) | |||||||||
Net investment loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized gain/(loss) from investment in gold sold to pay Sponsor fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) on Gold Delivery Agreement |
( |
) | |
|
|
|||||||||||
Net realized gain/(loss) on gold transferred to cover Gold Delivery Agreement and Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) from gold distributed for the redemption of shares |
|
— |
|
|
||||||||||||
Net change in unrealized appreciation/(depreciation) on investment in gold |
|
( |
) | |
(1,252 |
) | ||||||||||
Net Assets - Closing Balance |
$ | |
$ | |
$ | |
$ | |
||||||||
1. |
Organization |
2. |
Significant Accounting Policies |
2.1 |
Basis of Accounting |
2.2 |
Basis of Presentation |
2.3 |
Cash and Cash Equivalents |
2.4 |
Solactive GLD ® Long USD Gold Index—Gold Delivery Agreement |
2.5 |
Fair Value Measurement |
(Amounts in 000’s of US$) June 30, 2019 |
Level 1 |
Level 2 |
Level 3 |
|||||||||
Investment in Gold |
$ | $ | — |
$ | — |
|||||||
Gold Delivery Agreement |
— |
— |
— |
|||||||||
Total |
$ | $ | — |
$ | — |
|||||||
(Amounts in 000’s of US$) September 30, 2018 |
Level 1 |
Level 2 |
Level 3 |
|||||||||
Investment in Gold |
$ | $ | — |
$ | — |
|||||||
Gold Delivery Agreement |
— |
— |
— |
|||||||||
Total |
$ | $ | — |
$ | — |
|||||||
2.6 |
Custody of Gold |
2.7 |
Gold Receivable/Payable |
Jun-30, 2019 |
Sep-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Gold receivable |
$ | $ |
Jun-30, 2019 |
Sep-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Gold payable |
$ | $ |
2.8 |
Gold Delivery Agreement Receivable |
Jun-30, 2019 |
Sep-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Gold Delivery Agreement receivable |
$ | $ |
2.9 |
Gold Delivery Agreement Payable |
Jun-30, 2019 |
Sep-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Gold Delivery Agreement payable |
$ | $ |
2.10 |
Creations and Redemptions of Shares |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||
(Amounts in 000’s) |
||||||||
Activity in Number of Shares Created and Redeemed: |
||||||||
Creations |
||||||||
Redemptions |
( |
) | ( |
) | ||||
Net change in Number of Shares Created and Redeemed |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Activity in Value of Shares Created and Redeemed: |
||||||||
Creations |
$ | |
$ | |
||||
Redemptions |
( |
) | ( |
) | ||||
Net change in Value of Shares Created and Redeemed |
$ | |
$ | |
||||
2.11 |
Income and Expense (Amounts in 000’s of US$) |
2.12 |
Income Taxes |
2.13 |
New Accounting Pronouncements |
3. |
Fund Expenses |
4. |
Foreign Currency Risk |
5. |
Counterparty Risk |
6. |
Concentration of Risk |
7. |
Derivative Contract Information |
Risk exposure derivative type |
Location of Gain or Loss on Derivatives Recognized in Income |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||||||||
(Amounts in 000’s of US$) |
||||||||||||||||||
Currency Risk |
Net Realized gain/(loss) on Gold Delivery Agreement |
$ | ( |
) | $ | $ | $ |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Average notional |
$ | $ |
Gross Amounts of Assets and Liabilities Presented in the Combined Statements of Financial Condition |
||||||||
Assets a |
Liabilities a |
|||||||
Derivatives |
||||||||
Gold Delivery Agreement |
$ | $ | ||||||
a |
Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset on the Combined Statements of Financial Condition. |
Amounts Not Offset in the Combined Statements of Financial Condition |
|||||||||||||||||||||
Gross Amounts of Assets Presented in the Combined Statements of Financial Condition |
Financial Instruments Available for Offset |
Financial Instruments Collateral Received |
Cash Collateral Received |
Net Amount |
|||||||||||||||||
Counterparty |
|||||||||||||||||||||
Merrill Lynch International |
$ | $ | $ | $ | $ |
Amounts Not Offset in the Combined Statements of Financial Condition |
|||||||||||||||||||||
Gross Amounts of Liabilities Presented in the Combined Statements of Financial Condition |
Financial Instruments Available for Offset |
Financial Instruments Collateral Pledged |
Cash Collateral Pledged |
Net Amount |
|||||||||||||||||
Counterparty |
|||||||||||||||||||||
Merrill Lynch International |
$ | $ | $ | $ | $ |
8. |
Indemnification |
9. |
Financial Highlights |
10. |
Subsequent Events |
(Amounts in 000’s of US$ except for share and per share data) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
(unaudited) |
||||||||
ASSETS |
||||||||
Investment in Gold, at fair value (cost $ |
$ | $ | ||||||
Gold Delivery Agreement receivable |
||||||||
Total Assets |
$ | $ | ||||||
LIABILITIES |
||||||||
Accounts payable to Sponsor |
$ | $ | ||||||
Gold Delivery Agreement payable |
||||||||
Total Liabilities |
$ | $ | ||||||
Net Assets |
$ | $ | ||||||
Shares issued and outstanding (1) |
||||||||
Net asset value per Share |
$ | $ |
(1) | Authorized share capital is unlimited and the par value of the Shares is $ |
June 30, 2019 |
Ounces of gold |
Cost |
Fair Value |
% of Net Assets |
||||||||||||
(unaudited) |
||||||||||||||||
Investment in Gold |
|
$ | |
$ | |
|
% | |||||||||
Gold Delivery Agreement |
— |
— |
— |
|
% | |||||||||||
Total Investments |
|
$ | |
$ | |
|
% | |||||||||
Liabilities in excess of other assets |
( |
) | ( |
)% | ||||||||||||
Net Assets |
$ | |
|
% | ||||||||||||
Underlying Instrument |
Counter-Party |
Notional Value |
Expiration Date |
Unrealized Appreciation/ (Depreciation) |
||||||||||
Gold Delivery Agreement |
|
$ | |
|
$ | |
September 30, 2018 |
Ounces of gold |
Cost |
Fair Value |
% of Net Assets |
||||||||||||
Investment in Gold |
|
$ | |
$ | |
|
% | |||||||||
Gold Delivery Agreement |
— |
— |
— |
|
% | |||||||||||
Total Investments |
|
$ | |
$ | |
|
% | |||||||||
Assets in excess of liabilities |
|
|
% | |||||||||||||
Net Assets |
$ | |
|
% | ||||||||||||
Underlying Instrument |
Counter-Party |
Notional Value |
Expiration Date |
Unrealized Appreciation/ (Depreciation) |
||||||||||||
Gold Delivery Agreement |
|
$ | |
|
$ | |
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
EXPENSES |
||||||||||||||||
Sponsor fees |
$ | |
$ | |
$ | |
$ | |
||||||||
Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Total expenses |
|
|
|
|
||||||||||||
Net investment loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized and change in unrealized gain/(loss) on investment in gold and Gold Delivery Agreement |
||||||||||||||||
Net realized gain/(loss) from investment in gold sold to pay Sponsor fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) on Gold Delivery Agreement |
( |
) | |
|
|
|||||||||||
Net realized gain/(loss) on gold transferred to cover Gold Delivery Agreement and Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) from gold distributed for the redemption of shares |
— |
— |
— |
|
||||||||||||
Net change in unrealized appreciation/(depreciation) on investment in gold |
|
( |
) | |
( |
) | ||||||||||
Net realized and change in unrealized gain/(loss) on investment in gold and Gold Delivery Agreement |
|
( |
) | |
( |
) | ||||||||||
Net Income/(Loss) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Net income/(loss) per share |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Weighted average number of shares (in 000’s) |
|
|
|
|
||||||||||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
INCREASE/DECREASE IN CASH FROM OPERATIONS: |
||||||||||||||||
Cash proceeds received from sales of gold |
$ | |
$ | |
$ | |
$ | |
||||||||
Cash expenses paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Increase/(Decrease) in cash resulting from operations |
|
|
|
|
||||||||||||
INCREASE/DECREASE IN CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||||||
Cash proceeds from issuance of shares |
|
|
|
|
||||||||||||
Cash paid for repurchase of shares |
|
|
|
|
||||||||||||
Increase/(Decrease) in cash resulting from financing activities |
|
|
|
|
||||||||||||
Cash and cash equivalents at beginning of period |
|
|
|
|
||||||||||||
Cash and cash equivalents at end of period |
$ | |
$ | |
$ | |
$ | |
||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: |
||||||||||||||||
Value of gold received for creation of shares - net of gold receivable |
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Value of gold distributed for redemption of shares - net of gold payable |
$ |
|
$ |
|
$ |
|
$ |
( |
) | |||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING ACTIVITIES: |
||||||||||||||||
Value of Gold Delivery Agreement inflows - net of Gold Delivery Agreement receivable |
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Value of Gold Delivery Agreement outflows - net of Gold Delivery Agreement payable |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||||||||||
Net Income/(Loss) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
||||||||||||||||
Gold paid for Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Proceeds from sales of gold to pay expenses |
|
|
|
|
||||||||||||
Net realized (gain)/loss from investment in gold sold to pay Sponsor fees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized (gain)/loss on Gold Delivery Agreement |
|
( |
) | ( |
) | ( |
) | |||||||||
Net realized (gain)/loss on gold transferred to cover Gold Delivery Agreement and Gold Delivery Provider fees |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized (gain)/loss from gold distributed for the redemption of shares |
|
|
|
( |
) | |||||||||||
Net change in unrealized (appreciation)/depreciation on investment in gold |
( |
) | |
( |
) | 885 |
||||||||||
Increase/(Decrease) in accounts payable to Sponsor |
— |
— |
|
|
||||||||||||
Net cash provided by operating activities |
$ | |
$ | |
$ | |
$ | |
||||||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
Net Assets - Opening Balance |
$ | |
$ | |
$ | |
$ | |
||||||||
Creations |
|
|
|
|
||||||||||||
Redemptions |
— |
— |
— |
( |
) | |||||||||||
Net investment loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized gain/(loss) from investment in gold sold to pay Sponsor fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) on Gold Delivery Agreement |
( |
) | |
|
|
|||||||||||
Net realized gain/(loss) on gold transferred to cover Gold Delivery Agreement and Gold Delivery Provider fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) from gold distributed for the redemption of shares |
— |
— |
— |
|
||||||||||||
Net change in unrealized appreciation/(depreciation) on investment in gold |
|
( |
) | |
(885 |
) | ||||||||||
Net Assets - Closing Balance |
$ | |
$ | |
$ | |
$ | |
||||||||
1. |
Organization |
2. |
Significant Accounting Policies |
2.1 |
Basis of Accounting |
2.2 |
Basis of Presentation |
2.3 |
Cash and Cash Equivalents |
2.4 |
Solactive GLD ® Long USD Gold Index—Gold Delivery Agreement |
2.5 |
Fair Value Measurement |
(Amounts in 000’s of US$) June 30, 2019 |
Level 1 |
Level 2 |
Level 3 |
|||||||||
Investment in Gold |
$ | $ | — |
$ | — |
|||||||
Gold Delivery Agreement |
— |
— |
— |
|||||||||
Total |
$ | $ | — |
$ | — |
|||||||
(Amounts in 000’s of US$) September 30, 2018 |
Level 1 |
Level 2 |
Level 3 |
|||||||||
Investment in Gold |
$ | $ | — |
$ | — |
|||||||
Gold Delivery Agreement |
— |
— |
— |
|||||||||
Total |
$ | $ | — |
$ | — |
|||||||
2.6 |
Custody of Gold |
2.7 |
Gold Delivery Agreement Receivable and Gold Receivable |
(Amounts in 000’s of US$) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
Gold Delivery Agreement receivable |
$ | $ | ||||||
Gold Receivable |
— |
2.8 |
Gold Delivery Agreement Payable and Gold Payable |
(Amounts in 000’s of US$) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
Gold Delivery Agreement payable |
$ | $ | ||||||
Gold Payable |
— |
2.9 |
Creations and Redemptions of Shares |
(Amounts in 000’s) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||
Activity in Number of Shares Created and Redeemed: |
||||||||
Creations |
||||||||
Redemptions |
(— |
) | ( |
) | ||||
Net change in Number of Shares Created and Redeemed |
||||||||
(Amounts in 000’s of US$) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||
Activity in Value of Shares Created and Redeemed: |
||||||||
Creations |
$ | |
$ | |
||||
Redemptions |
(— |
) | ( |
) | ||||
Net change in Value of Shares Created and Redeemed |
$ |
|
$ | |
||||
2.10 |
Income and Expense (Amounts in 000’s of US$) |
2.11 |
Income Taxes |
2.12 |
New Accounting Pronouncements |
3. |
Related Parties—Sponsor |
4. |
Fund Expenses |
5. |
Concentration of Risk |
6. |
Foreign Currency Risk |
7. |
Counterparty Risk |
8. |
Derivative Contract Information |
Risk exposure derivative type |
Location of Gain or Loss on Derivatives Recognized in Income |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||||||||
(Amounts in 000’s of US$) |
||||||||||||||||||
Currency Risk |
Net Realized gain/(loss) on Gold Delivery Agreement |
$ | ( |
) | $ | $ | $ |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||
(Amounts in 000’s of US$) |
||||||||
Average notional |
$ | $ |
Gross Amounts of Assets and Liabilities Presented in the Statements of Financial Condition |
||||||||
Assets a |
Liabilities a |
|||||||
Derivatives |
||||||||
Gold Delivery Agreement |
$ | $ | ||||||
a |
Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset on the Statements of Financial Condition. |
Amounts Not Offset in the Statements of Financial Condition |
|||||||||||||||||||||
Gross Amounts of Assets Presented in the Statements of Financial Condition |
Financial Instruments Available for Offset |
Financial Instruments Collateral Received |
Cash Collateral Received |
Net Amount |
|||||||||||||||||
Counterparty |
|||||||||||||||||||||
Merrill Lynch International |
$ | $ | $ | $ | $ |
Amounts Not Offset in the Statements of Financial Condition |
|||||||||||||||||||||
Gross Amounts of Liabilities Presented in the Statements of Financial Condition |
Financial Instruments Available for Offset |
Financial Instruments Collateral Pledged |
Cash Collateral Pledged |
Net Amount |
|||||||||||||||||
Counterparty |
|||||||||||||||||||||
Merrill Lynch International |
$ | $ | $ | $ | $ |
9. |
Indemnification |
10. |
Financial Highlights |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
|||||||||||||
Net Asset Value |
||||||||||||||||
Net asset value per Share, beginning of period |
$ | $ | $ | $ | ||||||||||||
Net investment income/(loss) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net Realized and Change in Unrealized Gain/ (Loss) |
( |
) | ||||||||||||||
Net Income/(Loss) |
( |
) | ||||||||||||||
Net asset value per Share, end of period |
$ | $ | $ | $ | ||||||||||||
Market value per Share, beginning of period |
$ | $ | $ | $ | ||||||||||||
Market value per Share, end of period |
$ | $ | $ | $ | ||||||||||||
Ratio to average net assets |
||||||||||||||||
Net Investment loss (1) |
( |
)% | ( |
)% | ( |
)% | ( |
)% | ||||||||
Gross expenses (1) |
% | % | % | % | ||||||||||||
Net expenses (1) |
% | % | % | % | ||||||||||||
Total Return, at net asset value (2) |
% | ( |
)% | % | % | |||||||||||
Total Return, at market value (2) |
% | ( |
)% | % | % | |||||||||||
(1) | Percentages are annualized. |
(2) | Percentages are not annualized. |
11. |
Subsequent Events |
(Amounts in 000’s of US$ except for share and per share data) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
(unaudited) |
||||||||
ASSETS |
||||||||
Investment in Gold, at fair value (cost $ |
$ | $ | ||||||
Gold receivable |
— |
|||||||
Total Assets |
$ | $ | ||||||
LIABILITIES |
||||||||
Accounts payable to Sponsor |
$ | $ | ||||||
Total Liabilities |
$ | $ | ||||||
Net Assets |
$ | $ | ||||||
Shares issued and outstanding (1) |
||||||||
Net asset value per Share |
$ | $ |
(1) | Authorized share capital is unlimited and the par value of the Shares is $ |
June 30, 2019 |
Ounces of gold |
Cost |
Fair Value |
% of Net Assets |
||||||||||||
(unaudited) |
||||||||||||||||
Investment in Gold |
|
$ | |
$ | |
|
% | |||||||||
Total Investments |
$ | |
$ | |
|
% | ||||||||||
Liabilities in excess of other assets |
( |
) | ( |
)% | ||||||||||||
Net Assets |
$ | |
|
% | ||||||||||||
September 30, 2018 |
Ounces of gold |
Cost |
Fair Value |
% of Net Assets |
|||||||||||||
Investment in Gold |
|
$ | |
$ | |
|
% | ||||||||||
Total Investments |
$ | |
$ | |
|
% | |||||||||||
Assets in excess of liabilities |
|
|
% | ||||||||||||||
Net Assets |
$ | |
|
% | |||||||||||||
(Amounts in 000’s of US$, except per share data) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 (1) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 (1) |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
EXPENSES |
||||||||||||||||
Sponsor fees |
$ | |
$ | |
$ | |
$ | |
||||||||
Total expenses |
|
|
|
|
||||||||||||
Net investment loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized and change in unrealized gain/(loss) on investment in gold |
||||||||||||||||
Net realized gain/(loss) from investment in gold sold to pay Sponsor fees |
|
— |
|
— |
||||||||||||
Net realized gain/(loss) from gold distributed for the redemption of shares |
|
|
|
|
||||||||||||
Net change in unrealized appreciation/(depreciation) on investment in gold |
|
( |
) | |
( |
) | ||||||||||
Net realized and change in unrealized gain/(loss) on investment in gold |
|
( |
) | |
( |
) | ||||||||||
Net Income/(Loss) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Net income/(loss) per share |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Weighted average number of shares (in 000’s) |
|
|
|
|
||||||||||||
(1) |
2018 amounts are not comparative as operations commenced on June 26, 2018. |
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 (1) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 (1) |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
INCREASE/DECREASE IN CASH FROM OPERATIONS: |
||||||||||||||||
Cash proceeds received from sales of gold |
$ | |
$ | |
$ | |
$ | |
||||||||
Cash expenses paid |
( |
) | |
( |
) | |
||||||||||
Increase/(Decrease) in cash resulting from operations |
|
|
|
|
||||||||||||
Cash and cash equivalents at beginning of period |
|
|
|
|
||||||||||||
Cash and cash equivalents at end of period |
$ | |
$ | |
$ | |
$ | |
||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: |
||||||||||||||||
Value of gold received for creation of shares - net of gold receivable |
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
Value of gold distributed for redemption of shares - net of gold payable |
$ |
( |
) |
$ |
— |
$ |
( |
) |
$ |
— |
||||||
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 (1) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 (1) |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||||||||||
Net income/(loss) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities |
||||||||||||||||
Proceeds from sales of gold to pay expenses |
|
|
|
|
||||||||||||
Net realized (gain)/loss from investment in gold sold to pay Sponsor fees |
( |
) | — |
( |
) | — |
||||||||||
Net realized (gain)/loss from gold distributed for the redemption of shares |
( |
) | — |
( |
) | — |
||||||||||
Net change in unrealized (appreciation)/depreciation on investment in gold |
( |
) | |
( |
) | 367 |
||||||||||
Increase/(Decrease) in accounts payable to Sponsor |
|
|
|
|
||||||||||||
Net cash provided by operating activities |
$ | |
$ | |
$ | |
$ | |
||||||||
(1) |
2018 amounts are not comparative as operations commenced on June 26, 2018. |
(Amounts in 000’s of US$) |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 (1) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 (1) |
||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
Net Assets - Opening Balance |
$ | |
$ | |
$ | |
$ | |
||||||||
Creations |
|
|
|
|
||||||||||||
Redemptions |
( |
) | |
( |
) | |
||||||||||
Net investment loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net realized gain/(loss) from investment in gold sold to pay Sponsor fees |
|
|
|
|
||||||||||||
Net realized gain/(loss) from gold distributed for the redemption of shares |
|
— |
|
— |
||||||||||||
Net change in unrealized appreciation/(depreciation) on investment in gold |
|
( |
) | |
(367 |
) | ||||||||||
Net Assets - Closing Balance |
$ | |
$ | |
$ | |
$ | |
||||||||
(1) |
2018 amounts are not comparative as operations commenced on June 26, 2018. |
1. |
Organization |
2. |
Significant Accounting Policies |
2.1 |
Basis of Accounting |
2.2 |
Basis of Presentation |
2.3 |
Cash and Cash Equivalents |
2.4 |
Fair Value Measurement |
(Amounts in 000’s of US$) June 30, 2019 |
Level 1 |
Level 2 |
Level 3 |
|||||||||
Investment in Gold |
$ | |
$ | — |
$ | — |
||||||
Total |
$ | |
$ | — |
$ | — |
||||||
(Amounts in 000’s of US$) September 30, 2018 |
Level 1 |
Level 2 |
Level 3 |
|||||||||
Investment in Gold |
$ | |
$ | — |
$ | — |
||||||
Total |
$ | |
$ | — |
$ | — |
||||||
2.5 |
Custody of Gold |
2.6 |
Gold Receivable |
(Amounts in 000’s of US$) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
Gold receivable |
$ | |
$ | |
2.7 |
Gold Payable |
(Amounts in 000’s of US$) |
Jun-30, 2019 |
Sep-30, 2018 |
||||||
Gold payable |
$ | |
$ | |
2.8 |
Creations and Redemptions of Shares |
(Amounts are in 000’s) |
|
Nine Months Ended Jun-30, 2019 |
|
|
Nine Months Ended Jun-30, 2018 |
| ||
Activity in Number of Shares Created and Redeemed: |
||||||||
Creations |
|
|
||||||
Redemptions |
( |
) | (— |
) | ||||
Net change in Number of Shares Created and Redeemed |
|
|
||||||
(Amounts in 000’s of US$) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 |
||||||
Activity in Value of Shares Created and Redeemed: |
||||||||
Creations |
$ | |
$ | |
||||
Redemptions |
( |
) | (— |
) | ||||
Net change in Value of Shares Created and Redeemed |
$ | |
$ | |
||||
2.9 |
Income and Expense (Amounts in 000’s of US$) |
2.10 |
Income Taxes |
2.11 |
New Accounting Pronouncements |
3. |
Related Parties—Sponsor |
4. |
GLDM Expenses |
5. |
Concentration of Risk |
6. |
Indemnification |
7. |
Financial Highlights |
Three Months Ended Jun-30, 2019 |
Three Months Ended Jun-30, 2018 (1) |
Nine Months Ended Jun-30, 2019 |
Nine Months Ended Jun-30, 2018 (1) |
||||||||||||||
Net Asset Value |
|||||||||||||||||
Net asset value per Share, beginning of period |
$ | |
$ | |
(1) |
$ | |
$ | |
(1) | |||||||
Net investment income/(loss) |
( |
) | |
( |
) | |
|||||||||||
Net Realized and Change in Unrealized Gain/(Loss) |
|
( |
) | |
( |
) | |||||||||||
Net Income/(Loss) |
|
( |
) | |
( |
) | |||||||||||
Net asset value per Share, end of period |
$ | |
$ | |
$ | |
$ | |
|||||||||
Market value per Share, beginning of period |
$ | |
$ | |
$ | |
$ | |
|||||||||
Market value per Share, end of period |
$ | |
$ | |
$ | |
$ | |
|||||||||
Ratio to average net assets |
|||||||||||||||||
Net Investment loss (2) |
( |
)% | ( |
)% | ( |
)% | ( |
)% | |||||||||
Gross expenses (2) |
|
% | |
% | |
% | |
% | |||||||||
Net expenses (2) |
|
% | |
% | |
% | |
% | |||||||||
Total Return, at net asset value (3) |
|
% | ( |
)% (1) |
|
% | ( |
)% (1) | |||||||||
Total Return, at market value (3) |
|
% | ( |
)% (1) |
|
% | ( |
)% (1) | |||||||||
(1) | Shares began publicly trading on June 26, 2018; therefore, the Total Return, at net asset value and Total Return, at market value are based on the period of June 26, 2018 to June 30, 2018. |
(2) | Percentages are annualized. |
(3) | Percentages are not annualized. |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
* | Index and gold price data have been normalized based on GLDW NAV price per share on January 30, 2017 for comparison purposes. |
Period |
Average |
High |
Date |
Low |
Date |
End of period |
Last business day (1) |
|||||||||||||||||||||
January 30, 2017 to March 31, 2017 |
$ | 1,230.10 |
$ | 1,256.90 |
Mar 27, 2017 |
$ | 1,189.85 |
Jan 30, 2017 |
$ | 1,241.70 |
Mar 31, 2017 |
|||||||||||||||||
April 1, 2017 to June 30, 2017 |
$ | 1,257.49 |
$ | 1,292.70 |
Jun 07, 2017 |
$ | 1,221.00 |
May 11, 2017 |
$ | 1,243.25 |
Jun 30, 2017 |
|||||||||||||||||
July 1, 2017 to September 30, 2017 |
$ | 1,278.01 |
$ | 1,350.90 |
Sep 08, 2017 |
$ | 1,207.55 |
Jul 10, 2017 |
$ | 1,286.95 |
Sep 29, 2017 |
|||||||||||||||||
October 1, 2017 to December 31, 2017 |
$ | 1,276.68 |
$ | 1,305.15 |
Oct 16, 2017 |
$ | 1,241.60 |
Dec 13, 2017 |
$ | 1,296.50 |
Dec 29, 2017 |
|||||||||||||||||
January 1, 2018 to March 31, 2018 |
$ | 1,330.70 |
$ | 1,360.25 |
Jan 25, 2018 |
$ | 1,311.05 |
Feb 08, 2018 |
$ | 1,323.90 |
Mar 29, 2018 |
|||||||||||||||||
April 1, 2018 to June 30, 2018 |
$ | 1,306.26 |
$ | 1,347.90 |
Apr 19, 2018 |
$ | 1,250.50 |
Jun 28, 2018 |
$ | 1,250.55 |
Jun 29, 2018 |
|||||||||||||||||
July 1, 2018 to September 30, 2018 |
$ | 1,213.47 |
$ | 1,262.60 |
Jul 09, 2018 |
$ | 1,176.70 |
Aug 17, 2018 |
$ | 1,183.50 |
Sep 28, 2018 |
|||||||||||||||||
October 1, 2018 to December 31, 2018 |
$ | 1,227,42 |
$ | 1,281.65 |
Dec 31, 2018 |
$ | 1,185.30 |
Oct 01, 2018 |
$ | 1,281.65 |
Dec 31, 2018 |
|||||||||||||||||
January 1, 2019 to March 31, 2019 |
$ | 1,304.11 |
$ | 1,345.75 |
Feb 20, 2019 |
$ | 1,278.70 |
Jan 21, 2019 |
$ | 1,291.15 |
Mar 29, 2019 |
|||||||||||||||||
April 1, 2019 to June 30, 2019 |
$ | 1,309.31 |
$ | 1,429.55 |
Jun 25, 2019 |
$ | 1,270.05 |
May 3, 2019 |
$ | 1,413.20 |
Jun 28, 2019 |
|||||||||||||||||
January 30, 2017 to June 30, 2019 |
$ | 1,274.41 |
$ | 1,429.55 |
Jun 25, 2019 |
$ | 1,176.70 |
Aug 17, 2018 |
$ | 1,413.20 |
Jun 28, 2019 |
|||||||||||||||||
(1) | The end of period gold price is the LBMA Gold Price AM on the last business day of the period. This is in accordance with the Declaration of Trust and the basis used for calculating the NAV of GLDW. |
Period |
Average |
High |
Date |
Low |
Date |
End of period |
Last business day (1) |
|||||||||||||||||||||
April 1, 2018 to June 30, 2018 |
$ | 1,305.99 |
$ | 1,351.45 |
Apr 18, 2018 |
$ | 1,250.45 |
Jun 29, 2018 |
$ | 1,250.45 |
Jun 29, 2018 |
|||||||||||||||||
July 1, 2018 to September 30, 2018 |
$ | 1,213.19 |
$ | 1,262.05 |
Jul 09, 2018 |
$ | 1,178.40 |
Aug 17, 2018 |
$ | 1,187.25 |
Sep 28, 2018 |
|||||||||||||||||
October 1 to December 31, 2018 |
$ | 1,226.28 |
$ | 1,279.00 |
Dec 28, 2018 |
$ | 1,185.55 |
Oct 09, 2018 |
$ | 1,281.65 |
Dec 31, 2018 |
(2) | ||||||||||||||||
January 1, 2019 to March 31, 2019 |
$ | 1,303.79 |
$ | 1,343.75 |
Feb 20, 2019 |
$ | 1,279.55 |
Jan 21, 2019 |
$ | 1,295.40 |
Mar 29, 2019 |
|||||||||||||||||
April 1, 2019 to June 30, 2019 |
$ | 1,309.39 |
$ | 1,431.40 |
Jun 25, 2019 |
$ | 1,269.50 |
Apr 23, 2019 |
$ | 1,409.00 |
Jun 28, 2019 |
(1) | The end of period gold price is the LBMA Gold Price PM on the last business day of the period. This is in accordance with the Declaration of Trust and the basis used for calculating the NAV of GLDM. |
(2) | There was no LBMA Gold Price PM on the last business day of December 2018. The LBMA Gold Price AM on the last business day of December 2018 was $1,281.65. The Net Asset Value of the Trust on December 31, 2018 was calculated using the LBMA Gold Price AM, in accordance with the Trust Indenture. |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
Item 4. |
Controls and Procedures |
Item 1. |
Legal Proceedings |
Item 1A. |
Risk Factors |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
a) | None. |
b) | Not applicable. |
c) | Not applicable. |
Period |
Total Number of Shares Redeemed |
Average Ounces of Gold Per Share |
||||||
04/01/19 to 04/30/19 |
— |
— |
||||||
05/01/19 to 05/31/19 |
— |
— |
||||||
06/01/19 to 06/30/19 |
— |
— |
||||||
Total |
— |
— |
||||||
Period |
Total Number of Shares Redeemed |
Average Ounces of Gold Per Share |
||||||
04/01/19 to 04/30/19 |
1,400,000 |
.00999 |
||||||
05/01/19 to 05/31/19 |
— |
— |
||||||
06/01/19 to 06/30/19 |
500,000 |
.00998 |
||||||
Total |
1,900,000 |
.00998 |
||||||
Item 3. |
Defaults Upon Senior Securities |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Other Information |
Item 6. |
Exhibits |
Exhibit No. |
Description of Exhibit | |||
3.1 |
||||
3.2 |
||||
3.3 |
||||
4.1 |
||||
4.2 |
||||
31.1* |
||||
31.2* |
||||
32.1* |
||||
32.2* |
||||
101.INS |
XBRL Instance Document | |||
101.SCH |
XBRL Taxonomy Extension Schema Document | |||
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document | |||
101.DEF |
XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed herewith. |
WGC USA Asset Management Company, LLC Sponsor of the World Gold Trust (Registrant) | ||||
Date: August 6, 2019 |
By: |
/s/ Joseph R. Cavatoni | ||
Joseph R. Cavatoni | ||||
Principal Executive Officer | ||||
Date: August 6, 2019 |
By: |
/s/ Laura S. Melman | ||
Laura S. Melman | ||||
Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) |
* | The registrant is a trust and the persons are signing in their capacities as officers of WGC USA Asset Management Company, LLC, the Sponsor of the registrant. |