# abrdn Platinum ETF Trust: Form 10-Q for the period ended Mar 31, 2010

- Company: [abrdn Platinum ETF Trust](/companies/pplt.md) (CIK 1460235)
- Form: 10-Q
- Filed: 2010-05-17
- Accepted by EDGAR: May 17, 2010, 17:30 ET
- Period: 2010-03-31
- Accession: 0000930413-10-002944
- Inline XBRL: no
- Main document: https://www.sec.gov/Archives/edgar/data/1460235/000093041310002944/c61613_10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1460235/000093041310002944/

## Management's discussion and analysis

As filed, 7,547 characters.

*This information should be read in conjunction with the financial statements and notes to the financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. Neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.*

### Introduction.

The Trust is a common law trust, formed under the laws of the state of New York on the Date of Inception. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors or employees and is administered by the Trustee pursuant to the Trust Agreement. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. It will not hold or trade in commodity futures contracts, nor is it a commodity pool, subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

The Trust holds platinum and is expected to issue Baskets in exchange for deposits of platinum, and to distribute platinum in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of platinum, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in platinum.

The Trust issues and redeems Shares only with Authorized Participants in exchange for platinum, only in aggregations of 50,000 or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee.

Shares of the Trust began trading on the New York Stock Exchange (the “NYSE”) Arca under the symbol “PPLT” on January 8, 2010.

### Valuation of Platinum and Computation of NAV.

As of the London PM Fix on each day that the NYSE Arca is open for regular trading or as soon as practicable after 4:00 p.m. New York time, on such day (the “Evaluation Time”) the Trustee values the platinum held by the Trust and determines both the adjusted net asset value (the “ANAV”) and the NAV of the Trust.

At the Evaluation Time, the Trustee values the Trust’s platinum on the basis of that day’s London PM Fix, or, if no London PM Fix is made on such day or has not been announced by the Evaluation Time, the next most recent London platinum fix (AM or PM) determined prior to the Evaluation Time is used, unless the Sponsor determines that such price is inappropriate as a basis for valuation. In the case this determination is made, the Sponsor will identify an alternative basis for such evaluation to be used by the Trustee.

Once the value of the platinum held by the Trust has been determined, the Trustee subtracts all estimated accrued but unpaid fees and other liabilities of the Trust from the total value of the platinum and all other assets of the Trust. The resulting figure is the ANAV of the Trust. The ANAV is used to compute the Sponsor’s Fee.

The Trustee then subtracts from the ANAV the amount of accrued Sponsor’s Fees computed for such day to determine the NAV of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding as of the close of trading on the NYSE Arca.

### Liquidity & Capital Resources.

11

The Trust is not aware of any trends, demands, conditions, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only expense of the Trust during the period covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its transfers and sales of platinum.

The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s platinum as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell platinum to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of platinum to the Sponsor. At March 31, 2010 the Trust did not have any cash balances.

### The Period from Date of Inception (December 30, 2009) to March 31, 2010.

On December 30, 2009, the Trust was formed as a legal entity with an initial deposit of platinum. On January 8, 2010 the Trust’s Shares commenced trading on the NYSE Arca under the symbol PPLT, and the Trust commenced operations, began accruing expenses and began the calculation of NAV (the “Commencement of Operations”). The market value of the assets of the Trust were $15,690,000 and the redemption value per Share was $156.90 as of close of business on January 8, 2010.

The assets of the Trust at market value at March 31, 2010 were $509,499,163 representing a 3,147.28% increase from the asset level as of close of business on the Commencement of Operations. The redemption value per Share increased from $156.90 on January 8, 2010 to $164.28 on March 31, 2010 representing a 4.70% increase from the NAV as of close of business on the Commencement of Operations.

The price of platinum per ounce increased from $1,569.00 on January 8, 2010 to $1,645.00 on March 31, 2010, representing a 4.84% increase during the period. The Trust’s redemption value per Share rose slightly less than the platinum spot price per ounce on a percentage basis due to the Sponsor’s Fees. The Sponsor earned $530,459 in fees during the period, or 0.60% of the Trust’s assets on an annualized basis. Other than the Sponsor’s Fees, the Trust had no other expenses during the period.

The redemption value per Share of $164.28 on March 31, 2010 , was the highest during the period, compared with a low of $147.43 on February 5, 2010.

The number of Baskets created from the Date of Inception to March 31, 2010 was 69 (representing 3,450,000 Shares 67 of which were created during the three month period ending March 31, 2010). 5 Baskets (representing 250,000 Shares) were redeemed during the period.

Net loss for the period ended March 31, 2010 was $1,934,548 resulting from a net loss of $6,958 on the transfer of platinum to pay the Sponsor’s Fee, a net loss of $1,397,131 on platinum distributed for the redemption of Baskets, and Sponsor’s Fees of $530,459.

### Critical Accounting Estimates.

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. In addition, please refer to Note 2 to the consolidated financial statements for further discussion of accounting policies.

## Controls and procedures

As filed, 784 characters.

The authorized officers of the Sponsor performing functions equivalent to those that a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, and with the participation of the Trustee, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded

12 that the disclosure controls and procedures of the Trust have been effective as of the end of the period covered by this Form 10-Q.

There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s first fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.

## Risk factors

As filed, 183 characters.

There have been no material changes to the risk factors since last disclosed in the prospectus included in the registrant’s registration statement filed on Form S-1 on April 23, 2010.

Filed May 17, 2010.
Source: SEC EDGAR, the filing index for accession 0000930413-10-002944. Last ingested by Listed: Nov 6, 2026, 17:56 ET. No prices; not investment advice.