What changed in this filing

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Item 1. Financial Statements

2021-02-05 compared with 2020-08-07 · 42 added, 53 removed, 176 unchanged (35% of the section changed)

1 unchanged sentence

Statements of Financial Condition

at June 30, 2020 (unaudited) and September 30, 2019

(Amounts in 000’s of US$ except for share data)

Investment in Gold, at fair value (cost $ 54,307,578 and $ 39,069,054 at June 30, 2020 and September 30, 2019, respectively)

at December 31, 2020 (unaudited) and September 30, 2020

(Amounts in 000’s of US$ except for share and per share data)

Investments in Gold, at fair value (cost $ 56,553,517 and $ 60,743,750 at December 31, 2020 and September 30, 2020, respectively)

Gold receivable

Accounts payable to Sponsor

6 unchanged sentences

(Amounts in 000’s except for percentages)

June 30, 2020

December 31, 2020

Investment in Gold

Total Investment

in excess of other assets

Other assets in excess of liabilities

September 30, 2020

4 unchanged sentences

Unaudited Statements of Operations

For the three and nine months ended June, 2020 and 2019

For the three months ended December 31, 2020 and 2019

(Amounts in 000’s of US$, except per share data)

10 unchanged sentences

See notes to the unaudited financial statements.

Unaudited Statements of Cash Flows

For the three and nine months ended June 30, 2020 and 2019

Unaudited Statements of Cash Flow s

For the three months ended December 31, 2020 and 2019

(Amounts in 000’s of US$)

INCREASE/DECREASE IN CASH FROM OPERATIONS:

Proceeds received from sales of gold

Expenses paid

Cash proceeds received from sales of gold

Cash expenses paid

Increase/(Decrease) in cash resulting from operations

1 unchanged sentence

Cash and cash equivalents at end of period

SUPPLEMENTAL DISCLOSURE OF NON-CASH

FINANCING ACTIVITIES:

Value of gold received for creation of shares—net of gold receivable

Value of gold distributed for redemption of shares—net of gold payable

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING

Value of gold received for creation of shares—net of change in gold receivable

Value of gold distributed for redemption of shares—net of change in gold payable

(Amounts in 000’s of US$)

10 unchanged sentences

Unaudited Statements of Changes in Net Assets

For the three and nine months ended June 30, 2020 and 2019

For the three months ended December 31, 2020 and 2019

(Amounts in 000’s of US$)

22 unchanged sentences

Any losses sustained by the Trust will adversely affect the value of the Shares.

The Statements of Financial Condition and Schedule of Investment at June 30, 2020 and the Statements of Operations, Cash Flows and Changes in Net Assets for the three and nine months ended June 30, 2020 and 2019 have been prepared on behalf of the Trust without audit.

In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows as of and for the three and nine months ended June 30, 2020 and for all periods presented have been made.

The Statements of Financial Condition and Schedule s

of Investment at December 31, 2020 and the Statements of Operations, Cash Flows and Changes in Net Assets for the three months ended December 31, 2020 and 2019 have been prepared on behalf of the Trust without audit.

In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows as of and for the three months ended December 31, 2020 and for all periods presented have been made.

These financial statements should be read in conjunction with the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K

for the fiscal year ended September 30, 2020.

The results of operations for the three and nine months ended June 30, 2020 are not necessarily indicative of the operating results for the full fiscal year.

The results of operations for the three months ended December 31, 2020 are not necessarily indicative of the operating results for the full fiscal year.

Significant Accounting Policies

4 unchanged sentences

Basis of Accounting

For accounting purposes only, the Trust is an investment company and, therefore, applies the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification

946 , Financial Services—Investment Companies.

The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended.

14 unchanged sentences

(Amounts in 000’s of US$)

June 30, 2020

December 31, 2020

Investment in Gold

2 unchanged sentences

Investment in Gold

There were no transfers between Level 1 and other Levels in the nine months ended June 30, 2020 or for the year ended September 30, 2019.

There were no transfers between Level 1 and other Levels for the three months ended December 31, 2020 or for the year ended September 30, 2020.

The Trustee values the gold held by the Trust on the basis of the price of an ounce of gold as determined by the ICE Benchmark Administration Limited (“IBA”), a benchmark administrator, which provides an independently administered auction process as well as the overall administration and governance for the London Bullion Market Association (“LBMA”).

In determining the net asset value (“NAV”) of the Trust, the Trustee values the gold held by the Trust on the basis of the price of an ounce of gold determined by the IBA 3:00 PM auction process (“LBMA Gold Price PM”), which is an electronic auction, with the imbalance calculated, and the price adjusted in rounds (30 seconds in duration).

In determining the net asset value (“NAV”) of the Trust, the Trustee values the gold held by the Trust on the basis of the price of an ounce of gold determined by the IBA 3:00 PM auction process

(“LBMA Gold Price PM”), which is an electronic auction, with the imbalance calculated, and the price adjusted in rounds (30 seconds in duration).

The auction runs twice daily at 10:30 AM and 3:00 PM London time.

Trustee determines the NAV of the Trust on each day the NYSE Arca is open for regular trading, at the earlier of the LBMA Gold Price PM for the day or 12:00 PM New York time.

The Trustee determines the NAV of the Trust on each day the NYSE Arca is open for regular trading, at the earlier of the LBMA Gold Price PM for the day or 12:00 PM New York time.

If no LBMA Gold Price is made on a particular evaluation day or if the LBMA Gold Price 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) is used in the determination of the NAV of the Trust, unless the Trustee, in consultation with the Sponsor, determines that such a price is inappropriate to use as the basis for such determination.

Custody of Gold

Gold is held by the Custodian on behalf of the Trust, 100 % of which is allocated gold in the form of good delivery gold bars which includes gold held with a subcustodian (Bank of England).

The greatest amount of gold held by Bank of England during the quarter ended

June 30, 2020

was approximately 2,251,607 ounces or 6.3 % of the Trust’s gold on May 21, 2020.

At June 30, 2020, Bank of England held approximately 1,283,665

ounces or 3.4 % of the Trust’s gold in an allocated account.

No gold was held by a subcustodian during

the year ended September 30, 2019

or the six months ended March 31, 2020.

Gold is held by the Custodian on behalf of the Trust, 100 % of which is allocated gold in the form of good delivery gold bars which includes gold held with a subcustodian.

During the three months ended December 31, 2020, no gold was held by a subcustodian.

Gold Receivable

11 unchanged sentences

As the Shares of the Trust are redeemable in Baskets at the option of the Authorized Participants, the Trust has classified the Shares as Net Assets for financial reporting purposes.

Activity in the number of Shares created and redeemed for the nine months ended June 30, 2020 and 2019 are as follows:

(All amounts are in 000’s)

Activity in the number of Shares created and redeemed for the three months ended December 31, 2020 and 2019 are as follows:

(Amounts are in 000’s)

Activity in Number of Shares Created and Redeemed:

1 unchanged sentence

(Amounts in 000’s of US$)

Activity in Value of Shares Created and Redeemed:

Net Change in Value of Shares Created and Redeemed

Activity in Number of Shares Created and Redeemed:

Net change in Number of Shares Created and Redeemed

Income and Expense (Amounts in 000’s of US$)

3 unchanged sentences

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 nine months ended June 30, 2020 of $ 8,803,725 is made up of a realized gain of $ 20,644 from the sale of gold to pay expenses, a realized gain of $ 1,175,009 from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $ 7,608,072 on investment in gold.

The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the nine months ended June 30, 2019 of $ 5,466,979 is made up of a realized gain of $ 1,199 from the sale of gold to pay expenses, a realized gain of $ 181,451 from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $ 5,284,329 on investment in gold.

The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the three months ended

December 31, 2020 of $ 23,404 is made up of a realized gain of $ 15,299 from the sale of gold to pay expenses, a realized gain of $ 1,667,498 from gold distributed for the redemption of Shares, and a change in unrealized depreciation of $ 1,659,393 on investment in gold.

The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the three months ended

December 31, 2019 of $ 1,060,777 is made up of a realized gain of $ 4,663 from the sale of gold to pay expenses, a realized gain of $ 280,217 from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $ 775,897 on investment in gold.

The Trust is classified as a “grantor trust” for U.S.

3 unchanged sentences

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 June 30, 2020 or September 30, 2019.

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”

3 unchanged sentences

Open tax years are those years that are open for examination by the relevant income taxing authority.

As of June 30, 2020, the 2019, 2018 and 2017 tax years remain open for examination.

As of December 31, 2020, the 2019, 2018 and 2017 tax years remain open for examination.

There were no examinations in progress at period end.

New Accounting Pronouncements

In August 2018, the FASB issued Accounting Standards Update 2018-13,

Fair Value Measurement (Topic 820):

Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”).

The update provides guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements.

will be effective for annual periods beginning after December 15, 2019.

Early adoption is permitted.

Management does not currently expect these changes to have a material impact to future financial statements.

Related Parties – Sponsor and Trustee

The Trust’s only recurring 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.

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.

Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell gold or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

14 unchanged sentences

The Sponsor, and its shareholders, members, directors, officers, employees, affiliates and subsidiaries, are indemnified by the Trust and held harmless against certain losses, liabilities or expenses incurred in the performance of their duties under the Trust Indenture without gross negligence, bad faith, willful misconduct, willful malfeasance or reckless disregard of the indemnified party’s obligations and duties under the Trust Indenture.

Such indemnity includes payment by the Trust of the costs and expenses incurred in defending against any claim or liability under the Trust Indenture.

Such indemnity includes payment by the Trust of the costs and expenses incurred in defending against

any claim or liability under the Trust Indenture.

Under the Trust Indenture, the Sponsor may be able to seek indemnification by the Trust for payments it makes in connection with the Sponsor’s activities under the Trust Indenture to the extent its conduct does not disqualify it from receiving such indemnification under the terms of the Trust Indenture.

5 unchanged sentences

Financial Highlights

The Trust is presenting the following financial highlights related to investment performance and operations of a Share outstanding for the three and nine months ended June 30, 2020 and 2019, respectively.

The Trust is presenting the following financial highlights related to investment performance and operations of a Share outstanding for the three months ended December 31, 2020 and 2019, respectively.

The total return at net asset value is based on the change in net asset value of a Share during the period and the total return at market value is based on the change in market value of a Share on the NYSE Arca during the period.

3 unchanged sentences

Net investment income/(loss)

Net Realized and Change in Unrealized Gain /

Net Realized and Change in Unrealized Gain/(Loss)

Net Income/(Loss)

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements