# World Gold Trust: Form 10-Q for the period ended Dec 31, 2019

- Company: [World Gold Trust](/companies/gldm.md) (CIK 1618181)
- Form: 10-Q
- Filed: 2020-02-07
- Accepted by EDGAR: Feb 7, 2020, 16:04 ET
- Period: 2019-12-31
- Accession: 0001193125-20-028138
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1618181/000119312520028138/d868321d10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1618181/000119312520028138/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2019-12-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Net income | 3 months, 2019-10-01 to 2019-12-31 | $26.6m | us-gaap:NetIncomeLoss |
| Operating cash flow | 3 months, 2019-10-01 to 2019-12-31 | $0 | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Share repurchases | 3 months, 2019-10-01 to 2019-12-31 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Total assets | at 2019-12-31 | $1.13bn | us-gaap:Assets |
| Total liabilities | at 2019-12-31 | $168.0k | us-gaap:Liabilities |

## Management's discussion and analysis

As filed, 9,141 characters.

*This information should be read in conjunction with the financial statements and notes included in Item 1 of Part I of this Quarterly Report. This Quarterly Report, including the exhibits hereto and the information incorporated by reference herein, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. Except for historical information, statements about future gold prices, gold bullion sales, foreign currencies (including the Reference Currencies), foreign currency exchange rates, costs, plans, or objectives are forward-looking statements based on our estimates, beliefs, assumptions and projections. Words such as “could,” “would,” “may,” “expect,” “project,” “intend,” “plan,” “believe,” “seek,” “estimate,” and “predict,” and variations on such words, and similar expressions that reflect our current views with respect to future events and fund performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties that are difficult to predict and many of which are outside of our control, and actual results could differ materially from those discussed. Important factors that we believe could affect performance and cause results to differ materially from our expectations are described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as updated from time to time in the Trust’s Securities and Exchange Commission filings.*

### Trust Overview

The World Gold Trust (the “Trust”) was formed as a Delaware statutory trust on August 27, 2014. The Trust consists of multiple series (each, a “Fund” and collectively, the “Funds”). Each Fund issues common units of beneficial interest that represent units of fractional undivided beneficial interest in and ownership of such Fund. The term of the Trust and each Fund is perpetual (unless terminated earlier in certain circumstances). The Trust was organized in separate series as a Delaware statutory trust rather than as separate statutory trusts to achieve certain administrative and other efficiencies. The Trust is sponsored by WGC USA Asset Management Company, LLC (the “Sponsor”).

The Trust established six separate series, of which only SPDR® Gold MiniSharesSM Trust (“GLDM”) is operational as of December 31, 2019. GLDM commenced operations on June 26, 2018. GLDM’s investment objective is for its shares (the “Shares”) to reflect the performance of the price of gold, less its expenses.

Gold is held by ICBC Standard Bank Plc (the “Custodian”) on behalf of GLDM.

Investing in the Shares does not insulate the investor from risks, including price volatility. The following chart illustrates the movement in the market price of the Shares and NAV of the Shares against the corresponding gold price (per 1/100 of an oz. of gold) since the day the Shares first began trading on the NYSE Arca:

### Share price & NAV v. gold price – June 26, 2018 to December 31, 2019

### Critical Accounting Policy

### Valuation of Gold, Definition of NAV

GLDM values the investment in gold bullion at fair value. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon (the “Administrator”), will value any gold bullion held by GLDM on the basis of the price of an ounce of gold as determined by ICE Benchmark Administration Limited. In determining the NAV, the Administrator will value the gold bullion held by GLDM on the basis of the LBMA Gold Price PM. The Administrator will calculate the NAV on each day the NYSE Arca is open for regular trading, at the earlier LBMA Gold Price PM for the day or 12:00 PM New York time. If no LBMA Gold Price (AM or PM) is made on a particular evaluation day or if the LBMA Gold Price PM has not been announced by 12:00 PM New York time on a particular evaluation day, the next most recent LBMA Gold Price AM or PM will be used in the determination of the NAV, unless the Sponsor determines that such price is inappropriate to use as the basis for such determination. Gold held by GLDM is reported at fair value on the Statement of Financial Condition.

Once the value of the gold has been determined, the Administrator subtracts all estimated accrued expenses and other liabilities of GLDM from the total value of the gold and all other assets of GLDM. The resulting figure is the NAV. The NAV is used to compute the Sponsor’s fee. The Administrator determines the NAV per Share by dividing the NAV of GLDM by the number of Shares outstanding as of the close of trading on NYSE Arca.

### Results of Operations

In the three months ended December 31, 2019, 7,100,000 Shares (71 Creation Units) were created in exchange for 70,827.1 ounces of gold, 3,400,000 Shares (34 Creation Units) were redeemed in exchange for 33,911.7 ounces of gold and 323.9 ounces of gold were sold to pay Sponsor fees. For accounting purposes, GLDM reflects creations and redemptions on the date of receipt of a notification of a creation but does not issue Shares until the requisite amount of gold is received. Upon a redemption, GLDM delivers gold upon receipt of Shares. These creations were completed in the normal course of business.

At December 31, 2019, the Custodian held 739,106.2 ounces of gold in its vault, 100% of which is allocated gold in the form of good delivery gold bars with a market value of $1,125,659,336 (cost — $984,046,112). Subcustodians did not hold any gold in their vaults on behalf of GLDM.

At September 30, 2019, the Custodian held 697,523.6 ounces of gold in its vault, 100% of which is allocated gold in the form of good delivery gold bars with a market value of $1,036,031,998 (cost — $916,789,900). Subcustodians did not hold any gold in their vaults on behalf of GLDM.

On September 19, 2019, Inspectorate International Limited concluded the annual full count of GLDM’s gold bullion held by the Custodian. On October 2, 2019, Inspectorate International Limited concluded reconciliation procedures from September 19, 2019 through September 30, 2019. The results can be found on www.spdrgoldshares.com.

#### Cash Resources and Liquidity

At December 31, 2019, GLDM did not have any cash balances. When selling gold to pay expenses, GLDM endeavors to sell the exact amount of gold needed to pay expenses in order to minimize GLDM’s holdings of assets other than gold or any gold receivable. As a consequence, we expect that GLDM will not record any net cash flow from its operations and that its cash balance will be zero at the end of each reporting period.

#### Analysis of Movements in the Price of Gold

As movements in the price of gold are expected to directly affect the price of the Shares, it is important to understand the recent movements in the price of gold. However, past movements in the price of gold are not indicators of future movements.

The following chart shows movements in the price of gold based on the LBMA Gold Price PM in U.S. dollars per ounce over the period from June 26, 2018 (the first date the Shares began trading on the NYSE Arca) to December 31, 2019.

### Daily Gold Price – June 26, 2018 – December 31, 2019

### LBMA Gold Price PM USD

The average, high, low and end-of-period gold prices for the three- and twelve-month periods from June 30, 2018 through December 31, 2019, based on the LBMA Gold Price PM were:

| Period | Average | High | Date | Low | Date | End of Period | Last Day of Period |  |
| --- | ---: | ---: | --- | ---: | --- | ---: | --- | ---: |
| Three months 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 |  |
| Three months to September 30, 2018 | $1,213.19 | $1,262.05 | Jul 9, 2018 | $1,178.40 | Aug 17, 2018 | $1,187.25 | Sep 28, 2018 |  |
| Three months to December 31, 2018 | $1,226.28 | $1,279.00 | Dec 28, 2018 | $1,185.55 | Oct 9, 2018 | $1,281.65 | Dec 31, 2018 | (1) |
| Three months 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 |  |
| Three months 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 |  |
| Three months to September 30, 2019 | $1,472.47 | $1,546.10 | Sep 4, 2019 | $1,388.65 | Jul 5, 2019 | $1,485.30 | Sep 30, 2019 |  |
| Three months to December 31, 2019 | $1,480.96 | $1,517.10 | Oct 3, 2019 | $1,452.05 | Nov 12, 2019 | $1,523.00 | Dec 31, 2019 | (1) |
| Twelve months ended December 31, 2019 | $1,392.60 | $1,546.10 | Sep 4, 2019 | $1,269.50 | Apr 23, 2019 | $1,523.00 | Dec 31, 2019 | (1) |

19

(1) There was no LBMA Gold Price PM on the last business day of December 2019 or 2018. The LBMA Gold Price AM on the last business day of December 2019 and 2018 was $1,523.00 and $1,281.65, respectively. The Net Asset Value of GLDM on December 31, 2019 and 2018 was calculated using the LBMA Gold Price AM.

## Market risk

As filed, 209 characters.

GLDM is a passive investment vehicle. Fluctuations in the value of gold bullion will affect the value of Shares which are designed to reflect the performance of the price of gold bullion, less GLDM’s expenses.

## Controls and procedures

As filed, 2,938 characters.

#### Disclosure Controls and Procedures

The duly authorized officers of the Sponsor, performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report. Such disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that the Trust files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are recorded, processed, summarized and reported, within the time period specified in the applicable rules and forms, and that such information is accumulated and communicated to the duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, and to the Audit Committee of the Sponsor, as appropriate, to allow timely decisions regarding required disclosure.

The duly authorized officers of the Sponsor, performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, have evaluated the effectiveness of GLDM’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of GLDM were effective as of the end of the period covered by this report. Such disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that the Trust files or submits under the Exchange Act on behalf of GLDM are recorded, processed, summarized and reported, within the time period specified in the applicable rules and forms, and that such information is accumulated and communicated to the duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, and to the Audit Committee of the Sponsor, as appropriate, to allow timely decisions regarding required disclosure.

#### Internal Control over Financial Reporting

There has been no change in the internal control over financial reporting of the Trust that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

There has been no change in the internal control over financial reporting of GLDM that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, GLDM’s internal control over financial reporting.

## Risk factors

As filed, 656 characters.

You should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2019, which could materially affect our business, financial condition or future results. There have been no material changes in our risk factors from those disclosed in our 2019 Annual Report on Form 10-K.

The risks described in our Annual Report on Form 10-K are not the only risks facing the Trust. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Filed Feb 7, 2020.
Source: SEC EDGAR, the filing index for accession 0001193125-20-028138. Last ingested by Listed: Oct 24, 2026, 15:14 ET. No prices; not investment advice.