# abrdn Platinum ETF Trust: Form 10-Q for the period ended Sep 30, 2010

- Company: [abrdn Platinum ETF Trust](/companies/pplt.md) (CIK 1460235)
- Form: 10-Q
- Filed: 2010-11-12
- Accepted by EDGAR: Nov 12, 2010, 15:37 ET
- Period: 2010-09-30
- Accession: 0000930413-10-005588
- Inline XBRL: no
- Main document: https://www.sec.gov/Archives/edgar/data/1460235/000093041310005588/c63279_10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1460235/000093041310005588/

## Management's discussion and analysis

As filed, 8,648 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 forward-looking statements with respect to the Trust’s financial conditions, operations, future performance and business. These statements can be identified by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments. 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 reflect a change in management’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 trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “PPLT”.

### Valuation of Platinum and Computation of Net Asset Value

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 PM. New York time, on such day (the “Evaluation Time”) the Trustee values the Platinum held by the Trust and determines both 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.

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### The Quarter Ended September 30, 2010

During the period the market value of the Trust’s assets increased from $475,776,426 on July 1, 2010 to $538,036,322 at September 30, 2010, representing a 13.09% increase. The number of Shares outstanding also increased from 3,000,000 at July 1, 2010 to 3,250,000 at September 30, 2010, with 10 Baskets created and 5 Baskets redeemed, representing 250,000 net Shares created.

The NAV per Share increased from $150.96 on July 1, 2010 to $165.48 on September 30, 2010, representing a 9.62% increase during the quarter. The NAV per Share increased proportionately slightly less than the price per ounce of Platinum ($1,514.00 on July 1, 2010 to $1,662.00 on September 30, 2010) due to Sponsor’s Fees, which were $706,062 for the quarter.

The NAV per Share of $165.48 on September 30, 2010, was the highest during the period, compared with a low of $148.84 on August 24, 2010.

Net gain for the quarter was $13,209,483, resulting from a net loss of $2,293,399 on Platinum distributed for the redemption of Shares, an unrealized gain on investment in Platinum of $16,227,649 (due to the reversal of the loss arising from the market value of Platinum falling below the average cost in the prior quarter) and a net loss of $18,705 on the transfer of Platinum to pay the Sponsor’s Fee, which was $706,062. Other than the Sponsor’s Fees, the Trust had no other expenses during the period.

### The Period from Date of Inception (December 30, 2009) to September 30, 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 was $15,690,000 and the NAV per Share was $156.90 on January 8, 2010.

The assets of the Trust at market value at September 30, 2010 were $538,036,322. The number of Shares outstanding at September 30, 2010 was 3,250,000, with 88 Baskets (representing 4,400,000 Shares) created and 23 Baskets (representing 1,150,000 Shares) redeemed during the period from the Date of Inception to September 30, 2010.

The NAV per Share increased from $156.90 on January 8, 2010 to $165.48 on September 30, 2010 representing a 5.47% increase from the close of business on the Commencement of Operations. The NAV per Share decreased proportionately slightly less than the price per ounce of Platinum ($1,569.0 on January 8, 2010 to $1,662.0 on September 30, 2010) due to Sponsor’s Fees, which were $2,036,218 for 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 NAV per Share of $174.89 on April 26, 2010, was the highest during the period, compared with a low of $147.43 on February 5, 2010.

Net loss for the period ended September 30, 2010 was $4,700,027 resulting from a net loss of $2,671,352 on Platinum distributed for the redemption of Shares and a net gain of $7,543 on the transfer of Platinum to pay the Sponsor’s Fees which were $2,036,218.

### Liquidity & Capital Resources

The Trust is not aware of any trends, demands, commitments, 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 ordinary 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.

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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 September 30, 2010 the Trust did not have any cash balances.

### 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 financial statements for further discussion of accounting policies.

## Controls and procedures

As filed, 967 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 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 changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s third fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting; these changes have occurred as a result of the Sponsor’s review of the control processes; the changes made strengthen the review and reconciliation procedures over the financial statements.

## 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 Nov 12, 2010.
Source: SEC EDGAR, the filing index for accession 0000930413-10-005588. Last ingested by Listed: Nov 6, 2026, 17:56 ET. No prices; not investment advice.