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are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree |
of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different |
levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which |
the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair |
value measurement in its entirety. The Trust’s investment in gold is classified as a |
level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources. F- 9 abrdn Gold ETF Trust Notes to the Financial Statements The categorization of the Trust’s assets is as shown be December 31, 2022 December 31, 2021 (Amounts in 000’s of US$) Level 1 Investment in gold $ 2,427,492 $ 2,391,578 There were no transfers between levels during the years ended December 31, 2022 and 2021. 2.3. Gold Receivable and Payable Gold receivable or payable represents the quantity of gold |
covered by contractually binding orders for the creation or redemption of Shares respectively, where the gold has not yet |
been transferred to or from the Trust’s account. Generally, ownership of gold is transferred within two business days of |
the trade date. At December 31, 2022, the Trust had $ 15,636,662 of gold receivable for the creation of Shares and no gold payable for the redemption of Shares. At December 31, 2021, the Trust had no gold receivable or payable for |
the creation or redemption of Shares. 2.4. Creations and Redemptions |
of Shares The Trust expects to create and redeem Shares from time to time, |
but only in one or more Baskets (a Basket equals a block of 100,000 Shares). The Trust issues Shares in Baskets to Authorized |
Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. |
An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank |
or other financial institution which is not required to register as a broker-dealer to engage in securities transactions; (2) is |
a participant in The Depository Trust Company; (3) has entered into an Authorized Participant Agreement with the Trustee and the |
Sponsor; and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian or other gold |
bullion clearing bank. An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor |
and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the gold required |
for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated gold account, either loco London |
or loco Zurich, established with the Custodian or a gold bullion clearing bank by an Authorized Participant. The creation and redemption of Baskets is only made in exchange |
for the delivery to the Trust or the distribution by the Trust of the amount of gold represented by the Baskets being created |
or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or |
redeemed determined on the day the order to create or redeem Baskets is properly received. Authorized Participants may, on any business day, place an order |
with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is two business days. In the |
event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. |
When gold is exchanged in settlement of a redemption, it is considered a sale of gold for financial statement purposes. F- 10 abrdn Gold ETF Trust Notes to the Financial Statements The amount of gold represented by the Baskets created or |
redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption |
of Shares may differ from the value of gold to be delivered or distributed by the Trust. In order to ensure that the |
correct amount of gold is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees |
in the event of any shortfall or excess on each transaction. For each transaction, this amount is not more than 1/1000th of an |
ounce of gold. As the Shares of the Trust are subject to redemption at the |
option of Authorized Participants, the Trust has classified the outstanding Shares as Net Assets. Changes in the number of Shares |
outstanding are presented in the Statement of Changes in Net Assets. 2.5. Income Taxes 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 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 December 31, 2022 or December 31, 2021. 2.6. Investment in Gold Changes in ounces of gold and their respective values for |
the years ended December 31, 2022 and 2021 are set out be Year Ended December 31, 2022 Year Ended December 31, 2021 (Amounts in 000’s of US$, except for ounces data) Ounces of gold Opening balance 1,324,350.2 1,405,430.5 Creations 204,255.2 69,166.7 Redemptions ( 187,874.4 ) ( 147,946.2 ) Transfers of gold to pay expenses ( 2,347.9 ) ( 2,300.8 ) Closing balance 1,338,383.1 1,324,350.2 Investment in gold Opening balance $ 2,391,578 $ 2,652,891 Creations 382,148 128,307 Redemptions ( 328,867 ) ( 258,605 ) Realized gain on gold distributed for the redemption of Shares 33,258 32,491 Transfers of gold to pay expenses ( 4,233 ) ( 4,155 ) Realized gain on gold transferred to pay expenses 556 635 Change in unrealized (loss) on investment in gold ( 46,948 ) ( 159,986 ) Closing balance $ 2,427,492 $ 2,391,578 F- 11 abrdn Gold ETF Trust Notes to the Financial Statements 2.7. Expenses / Realized Gains |
/ Losses The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of gold to the |
Sponsor. The Trust will transfer gold to the Sponsor to pay the |
Sponsor’s Fee that accrues daily at an annualized rate equal to 0.17 % of the adjusted daily net asset value ("ANAV") |
of the Trust, paid monthly in arrears. The Sponsor has agreed to assume administrative and marketing |
expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee |
and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission |
(the “SEC”) registration fees, printing and mailing costs, audit fees and up to $ 100,000 per annum in legal expenses. For the year ended December 31, 2022, 2021 and |
2020, the Sponsor’s Fee was $ 4,232,956 , $ 4,122,059 and $ 3,640,527 , respectively. At December 31, 2022 and at December 31, 2021, the |
fees payable to the Sponsor were $ 346,303 and $ 345,581 , respectively. With respect to expenses not otherwise assumed by the Sponsor, |
the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay |
these expenses. When selling gold to pay expenses, the Trustee will endeavor to sell the smallest amounts of gold needed |
to pay these expenses in order to minimize the Trust’s holdings of assets other than gold. Other than the Sponsor’s |
Fee, the Trust had no expenses during the years ended December 31, 2022 and 2021. Unless otherwise directed by the Sponsor, when selling gold |
the Trustee will endeavor to sell at the price established by the LBMA PM Gold Price. The Trustee will place orders with dealers |
(which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. |
The Custodian may be the purchaser of such gold only if the sale transaction is made at the next LBMA PM Gold Price or such |
other publicly available price that the Sponsor deems fair, in each case as set 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. Neither the Trustee nor the Sponsor |
is liable for depreciation or loss incurred by reason of any sale. Realized gains and losses result from the transfer of gold |
for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value |
and average cost of gold transferred. 2.8. Subsequent Events In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events , the Trust’s management has evaluated the possibility of subsequent events impacting the Trust’s |
financial statements through the filing date. In connection with her retirement, Andrea Melia has resigned as Chief Financial Officer and Treasurer of the Sponsor, to be effective |
on February 28, 2023, immediately after the filing of this report. Ms. Melia has served as Principal Financial Officer of the Registrant. |
Brian Kordeck was appointed as Chief Financial Officer and Treasurer of the Sponsor, to be effective on February 28, 2023, immediately |
after the filing of this report. Mr. Kordeck will serve as Principal Financial Officer of the Registrant. 3. Related Parties The Sponsor and the Trustee are considered to be related parties |
to the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase |
or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. |
In addition, the Trustee and the Custodian and their affiliates may from time to time purchase or sell gold directly, for |
their own account, as agent for their customers and for accounts over which they exercise investment discretion. The Trustee’s |
and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust. F- 12 abrdn Gold ETF Trust Notes to the Financial Statements 4. Concentration of Risk The Trust’s sole business activity is the investment in gold, |
and substantially all the Trust’s assets are holdings of gold, which creates a concentration of risk associated with |
fluctuations in the price of gold. Several factors could affect the price of gold, includin (i) global gold supply and demand, |
which is influenced by factors such as forward selling by gold producers, purchases made by gold producers to unwind gold hedge |
positions, central bank purchases and sales, and production and cost levels in major global gold-producing countries; (ii) investors’ |
expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading |
activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. |
In addition, there is no assurance that gold will maintain its long-term value in terms of purchasing power in the future. |
In the event that the price of gold declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. |
Each of these events could have a material effect on the Trust’s financial position and results of operations. 5. Indemnification Under the Trust’s organizational documents, the Trustee |
(and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) |
are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith, willful misconduct |
or willful malfeasance on its part and without reckless disregard on its part of its obligations and duties under the Trust’s |
organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims |
that may be made against the Trust that have not yet occurred. F- 13 abrdn Gold ETF Trust SIGNATURES Pursuant to the requirements of the Securities |
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities |
thereunto duly authorized. abrdn ETFs Sponsor LLC Date: February 28, 2023 /s/ Steven Dunn* Steven Dunn ** President and Chief Executive Officer (Principal Executive Officer) Date: February 28, 2023 /s/ Andrea Melia* Andrea Melia ** Chief Financial Officer and Treasurer (Principal Financial Officer and Principal |
Accounting Officer) * The |
original executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for |
inspection upon request. ** The |
Registrant is a trust and the persons are signing in their capacities as officers of abrdn ETFs Sponsor LLC, the Sponsor of the |
Registrant. |
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STATES SECURITIES AND EXCHANGE COMMISSION Washington, |
D.C. 20549 Form 10-Q ☒ QUARTERLY |
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For |
the Quarterly Period Ended March 31, 2022 or ☐ TRANSITION |
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For |
the Transition Period from to Commission |
File Numbe 001-34441 abrdn |
Gold ETF Trust (Exact |
Subsets and Splits