|
|
|
|
|
|
|
|
|
(Amounts in 000’s of US$) |
|
Six Months Ended Mar-31, 2022 |
|
|
Six Months Ended Mar-31, 2021 |
|
Activity in Value of Shares Created and Redeemed: |
|
|
|
|
|
|
|
|
| Creations |
|
$ |
11,474,427 |
|
|
$ |
6,713,466 |
|
| Redemptions |
|
|
(5,070,901 |
) |
|
|
(19,936,729 |
) |
| |
|
|
|
|
|
|
|
|
| Net change in Value of Shares Created and Redeemed |
|
$ |
6,403,526 |
|
|
$ |
(13,223,263 |
) |
| |
|
|
|
|
|
|
|
|
|
Income and Expense (Amounts in 000’s of US$) |
The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay the Trust’s expenses. When selling gold to pay expenses, the Trustee will endeavor to sell the smallest amount of gold needed to pay expenses in order to minimize the Trust’s holdings of assets other than gold. Unless otherwise directed by the Sponsor, the Trustee will sell gold to the Custodian at the next LBMA Gold Price PM following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the gold sold, and such amounts are reported as net realized gain/(loss) from investment in gold sold to pay expenses on the Statements of Operations.
The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the six months ended March 31, 2022 of $6,388,032 is made up of a realized gain of $16,195 from the sale of gold to pay expenses, a realized gain of $743,073 from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $5,628,764 on investment in gold.
The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the six months ended March 31, 2021 of $(7,203,083) is made up of a realized gain of $25,666 from the sale of gold to pay expenses, a realized gain of $3,380,697 from gold distributed for the redemption of Shares, and a change in unrealized depreciation of $(10,609,446) on investment in gold.
The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2022 or September 30, 2021.
The Sponsor evaluates tax positions taken or expected to be taken in the course of its tax treatment, and its tax reporting to its shareholders, of these positions to determine whether the tax positions are
“more-likely-than-not”
to be sustained by the applicable tax authority. Tax positions not deemed to meet that threshold would be recorded as an expense in the current year. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of March 31, 2022, the 2020, 2019 and 2018 tax years remain open for examination. There were no examinations in progress at period end.
|
Related Parties – Sponsor and Trustee |
The Trust’s only recurring fixed expense is the Sponsor’s fee which accrues daily at an annual rate equal to 0.40% of the daily NAV, in exchange for the Sponsor assuming the responsibility to pay all ordinary fees and expenses of the Trust which include fees and expenses of the Trustee, the fees and expenses of the Custodian for the custody of the Trust’s gold bars, the fees and expenses of the Sponsor, certain taxes, the fees of the Marketing Agent, printing and mailing costs, legal and audit fees, registration fees, NYSE Arca listing fees and other marketing costs and expenses.
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