World Gold Trust 10-Q

Item 1. Financial Statements (Unaudited) Combined Statements of Financial Condition at March 31, 2021 (unaudited) and September 30, 2020 (Amounts in 000’s of US$) Mar-31, 2021 Sep-30, 2020 (unaudited) ASSETS Investments in Gold, at fair value (cost $ 3,896,055 and $ 3,014,561 at March 31, 2021 and September 30, 2020, respectively) $ 3,943,181 $ 3,542,996 Gold receivable — 18,793 Total Assets $ 3,943,181 $ 3,561,789 LIABILITIES Accounts payable to Sponsor $ 609 $ 517 Total Liabilities $ 609 $ 517 Net Assets $ 3,942,572 $ 3,561,272 See notes to the unaudited financial statements. 1 Table of Contents World Gold Trust Combined Schedules of Investment (All balances in 000’s except percentages) March 31, 2021 Ounces of gold Cost Fair Value % of Net Assets (unaudited) Investment in Gold 2,331.8 $ 3,896,055 $ 3,943,181 100.02 % Total Investment $ 3,896,055 $ 3,943,181 100.02 % Liabilities in excess of other assets ( 609 ) ( 0.02 )% Net Assets $ 3,942,572 100.00 % September 30, 2020 Ounces of gold Cost Fair Value % of Net Assets Investment in Gold 1,877.7 $ 3,014,561 $ 3,542,996 99.49 % Total Investment $ 3,014,561 $ 3,542,996 99.49 % Other assets in excess of liabilities 18,276 0.51 % Net Assets $ 3,561,272 100.00 % See notes to the unaudited financial statements. 2 Table of Contents World Gold Trust Unaudited Combined Statements of Operations For the three and six months ended March 31, 2021 and March 31, 2020 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) EXPENSES Sponsor fees $ 1,794 $ 586 $ 3,487 $ 1,083 Total expenses 1,794 586 3,487 1,083 Net investment loss ( 1,794 ) ( 586 ) ( 3,487 ) ( 1,083 ) Net realized and change in unrealized gain/(loss) on investment in gold Net realized gain/(loss) from investment in gold sold to pay Sponsor fees 122 68 346 116 Net realized gain/(loss) from gold distributed for the redemption of shares 2,205 3,320 36,875 8,005 Net change in unrealized appreciation/(depreciation) on investment in gold ( 453,395 ) 61,192 ( 481,309 ) 83,564 Net realized and change in unrealized gain/(loss) on investment in gold ( 451,068 ) 64,580 ( 444,088 ) 91,685 Net income/(loss) $ ( 452,862 ) $ 63,994 $ ( 447,575 ) $ 90,602 See notes to the unaudited financial statements. 3 Table of Contents World Gold Trust Unaudited Combined Statements of Cash Flows For the three and six months ended March 31, 2021 and March 31, 2020 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) INCREASE/DECREASE IN CASH FROM OPERATIONS: Cash proceeds received from sales of gold $ 1,763 $ 534 $ 3,395 $ 1,011 Cash expenses paid ( 1,763 ) ( 534 ) ( 3,395 ) ( 1,011 ) Increase/(Decrease) in cash resulting from operations — — — — Cash and cash equivalents at beginning of period — — — — 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 change in gold receivable $ 443,475 $ 370,394 $ 1,240,817 $ 483,190 Value of gold distributed for redemption of shares-net of change in gold payable $ 63,699 $ 37,794 $ 393,149 $ 87,590 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net income/(loss) $ ( 452,862 ) $ 63,994 $ ( 447,575 ) $ 90,602 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Proceeds from sales of gold to pay expenses 1,763 534 3,395 1,011 Net realized (gain)/loss from investment in gold sold to pay Sponsor fees ( 122 ) ( 68 ) ( 346 ) ( 116 ) Net realized (gain)/loss from gold distributed for the redemption of shares ( 2,205 ) ( 3,320 ) ( 36,875 ) ( 8,005 ) Net change in unrealized (appreciation)/depreciation on investment in gold 453,395 ( 61,192 ) 481,309 ( 83,564 ) Increase/(Decrease) in accounts payable to Sponsor 31 52 92 72 Net cash provided by operating activities $ — $ — $ — $ — See notes to the unaudited financial statements. 4 Table of Contents World Gold Trust Unaudited Combined Statements of Changes in Net Assets For the three and six months ended March 31, 2021 and March 31, 2020 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) Net Assets - Opening Balance $ 4,015,658 $ 1,133,086 $ 3,561,272 $ 1,050,703 Creations 443,475 455,825 1,222,024 561,396 Redemptions ( 63,699 ) ( 37,794 ) ( 393,149 ) ( 87,590 ) Net investment loss ( 1,794 ) ( 586 ) ( 3,487 ) ( 1,083 ) Net realized gain/(loss) from investment in gold sold to pay Sponsor fees 122 68 346 116 Net realized gain/(loss) from gold distributed for the redemption of shares 2,205 3,320 36,875 8,005 Net change in unrealized appreciation/(depreciation) on investment in gold ( 453,395 ) 61,192 ( 481,309 ) 83,564 Net Assets - Closing Balance $ 3,942,572 $ 1,615,111 $ 3,942,572 $ 1,615,111 See notes to the unaudited financial statements. 5 Table of Contents SPDR ® Gold MiniShares SM Trust Statements of Financial Condition at March 31, 2021 (unaudited) and September 30, 2020 (Amounts in 000’s of US$ except for share and per share data) Mar-31, 2021 Sep-30, 2020 (unaudited) ASSETS Investments in Gold, at fair value (cost $ 3,896,055 and $ 3,014,561 at March 31, 2021 and September 30, 2020, respectively) $ 3,943,181 $ 3,542,996 Gold receivable — 18,793 Total Assets $ 3,943,181 $ 3,561,789 LIABILITIES Accounts payable to Sponsor $ 609 $ 517 Total Liabilities $ 609 $ 517 Net Assets $ 3,942,572 $ 3,561,272 Shares issued and outstanding (1) 234,300,000 189,500,000 Net asset value per Share $ 16.83 $ 18.79 (1) Authorized share capital is unlimited and the par value of the Shares is $ 0.00 . See notes to the unaudited financial statements. 6 Table of Contents SPDR ® Gold MiniShares SM Trust Schedules of Investment (All balances in 000’s except for percentages) March 31, 2021 Ounces of gold Cost Fair Value % of Net Assets (unaudited) Investment in Gold 2,331.8 $ 3,896,055 $ 3,943,181 100.02 % Total Investment $ 3,896,055 $ 3,943,181 100.02 % Liabilities in excess of other assets ( 609 ) ( 0.02 )% Net Assets $ 3,942,572 100.00 % September 30, 2020 Ounces of gold Cost Fair Value % of Net Assets Investment in Gold 1,877.7 $ 3,014,561 $ 3,542,996 99.49 % Total Investment $ 3,014,561 $ 3,542,996 99.49 % Other assets in excess of liabilities 18,276 0.51 % Net Assets $ 3,561,272 100.00 % See notes to the unaudited financial statements. 7 Table of Contents SPDR ® Gold MiniShares SM Trust Unaudited Statements of Operations For the three and six months ended March 31, 2021 and March 31, 2020 (Amounts in 000’s of US$, except per share data) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) EXPENSES Sponsor fees $ 1,794 $ 586 $ 3,487 $ 1,083 Total expenses 1,794 586 3,487 1,083 Net investment loss ( 1,794 ) ( 586 ) ( 3,487 ) ( 1,083 ) Net realized and change in unrealized gain/(loss) on investment in gold Net realized gain/(loss) from investment in gold sold to pay Sponsor fees 122 68 346 116 Net realized gain/(loss) from gold distributed for the redemption of shares 2,205 3,320 36,875 8,005 Net change in unrealized appreciation/(depreciation) on investment in gold ( 453,395 ) 61,192 ( 481,309 ) 83,564 Net realized and change in unrealized gain/(loss) on investment in gold ( 451,068 ) 64,580 ( 444,088 ) 91,685 Net income/(loss) $ ( 452,862 ) $ 63,994 $ ( 447,575 ) $ 90,602 Net income/(loss) per share $ ( 2.00 ) $ 0.77 $ ( 2.10 ) $ 1.15 Weighted average number of shares (in 000’s) 226,720 83,274 213,202 78,792 See notes to the unaudited financial statements. 8 Table of Contents SPDR ® Gold MiniShares SM Trust Unaudited Statements of Cash Flows For the three and six months ended March 31, 2021 and March 31, 2020 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) INCREASE/DECREASE IN CASH FROM OPERATIONS: Cash proceeds received from sales of gold $ 1,763 $ 534 $ 3,395 $ 1,011 Cash expenses paid ( 1,763 ) ( 534 ) ( 3,395 ) ( 1,011 ) Increase/(Decrease) in cash resulting from operations — — — — Cash and cash equivalents at beginning of period — — — — 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 change in gold receivable $ 443,475 $ 370,394 $ 1,240,817 $ 483,190 Value of gold distributed for redemption of shares-net of change in gold payable $ 63,699 $ 37,794 $ 393,149 $ 87,590 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net income/(loss) $ ( 452,862 ) $ 63,994 $ ( 447,575 ) $ 90,602 Adjustments to reconcile net income/(loss) to net cash provided by operating activities: Proceeds from sales of gold to pay expenses 1,763 534 3,395 1,011 Net realized (gain)/loss from investment in gold sold to pay Sponsor fees ( 122 ) ( 68 ) ( 346 ) ( 116 ) Net realized (gain)/loss from gold distributed for the redemption of shares ( 2,205 ) ( 3,320 ) ( 36,875 ) ( 8,005 ) Net change in unrealized (appreciation)/depreciation on investment in gold 453,395 ( 61,192 ) 481,309 ( 83,564 ) Increase/(Decrease) in accounts payable to Sponsor 31 52 92 72 Net cash provided by operating activities $ — $ — $ — $ — See notes to the unaudited financial statements. 9 Table of Contents SPDR ® Gold MiniShares SM Trust Unaudited Statements of Changes in Net Assets For the three and six months ended March 31, 2021 and March 31, 2020 (Amounts in 000’s of US$) Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) Net Assets - Opening Balance $ 4,015,658 $ 1,133,086 $ 3,561,272 $ 1,050,703 Creations 443,475 455,825 1,222,024 561,396 Redemptions ( 63,699 ) ( 37,794 ) ( 393,149 ) ( 87,590 ) Net investment loss ( 1,794 ) ( 586 ) ( 3,487 ) ( 1,083 ) Net realized gain/(loss) from investment in gold sold to pay Sponsor fees 122 68 346 116 Net realized gain/(loss) from gold distributed for the redemption of shares 2,205 3,320 36,875 8,005 Net change in unrealized appreciation/(depreciation) on investment in gold ( 453,395 ) 61,192 ( 481,309 ) 83,564 Net Assets - Closing Balance $ 3,942,572 $ 1,615,111 $ 3,942,572 $ 1,615,111 See notes to the unaudited financial statements. 10 Table of Contents WORLD GOLD TRUST Notes to the Unaudited Financial Statements 1. Organization The World Gold Trust (the “Trust”) was organized as a Delaware statutory trust on August 27, 2014 and is governed by the Fourth Amended and Restated Agreement and Declaration of Trust (“Declaration of Trust”), dated as of April 16, 2018 and amended on February 6, 2020, between WGC USA Asset Management Company, LLC (the “Sponsor”) and the Delaware Trust Company (the “Trustee”). The Trust is authorized to issue an unlimited number of shares of beneficial interest (“Shares”). The beneficial interest in the Trust may be divided into one or more series. The Trust has established six separate series, one of which is operational as of March 31, 2021. The accompanying financial statements relate to the Trust and its one operational series, SPDR ® Gold MiniShares SM Trust (“GLDM”). The shares of GLDM (the “Shares”) began publicly trading on June 26, 2018 on the NYSE Arca, Inc. (the “NYSE Arca”). The Shares are also listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores). The fiscal year-end of GLDM is September 30th. The investment objective of GLDM is for its Shares to reflect the performance of the price of gold, less its expenses. GLDM’s only ordinary recurring expense is the Sponsor’s annual fee of 0.18 % of its net asset value (“NAV”). The Sponsor believes that, for many investors, the Shares represent a cost-effective investment in gold. BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, (“BNYM” or the “Administrator”) is the administrator and transfer agent. BNYM also serves as the custodian of GLDM’s cash, if any. ICBC Standard Bank Plc (the “Custodian”) is responsible for custody of GLDM’s gold. State Street Global Advisors Funds Distributors, LLC is the marketing agent (the “Marketing Agent”). The Trust had no operations with respect to GLDM’s Shares prior to June 26, 2018 other than matters relating to its organization and the registration of the offer and sale of GLDM’s Shares under the Securities Act of 1933, as amended. The Statements of Financial Condition and Schedules of Investment at March 31, 2021, and the Statements of Operations, Changes in Net Assets and Cash Flows for the three and six months ended March 31, 2021 and 2020 have been prepared without audit. In the opinion of management of the Sponsor, 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 six months ended March 31, 2021 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 Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The results of operations for the three and six months ended March 31, 2021 are not necessarily indicative of the operating results for the full fiscal year. 2. Significant Accounting Policies The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by GLDM and the Trust. 2.1 Basis of Accounting For accounting purposes, GLDM is an investment company within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies, and 11 Table of Contents therefore applies the specialized accounting and reporting guidance therein. It is not registered as an investment company under the Investment Company Act of 1940, as amended. These financial statements present the financial condition, results of operations and cash flows of the Trust combined with its operating series and GLDM separately. For the periods presented, there were no balances or activity for the Trust and the footnotes accordingly relate to GLDM, unless stated otherwise. 2.2 Basis of Presentation The financial statements are presented for the Trust, as the SEC registrant, combined with GLDM and for GLDM individually. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to GLDM are enforceable only against the assets of GLDM and not against the assets of the Trust generally or any other series that the Trust may establish. 2.3 Cash and Cash Equivalents Cash and cash equivalents when outstanding include highly liquid investments of sufficient credit quality with original maturity of three months or less. 2.4 Fair Value Measurement U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. GLDM’s policy is to value its investments at fair value. Various inputs are used in determining the fair value of GLDM’s assets or liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 – Inputs that are unobservable for the asset and liability, including a fund’s assumptions (if any) used in determining the fair value of investments. The following table summarizes GLDM’s investment at fair value: (Amounts in 000’s of US$) March 31, 2021 Level 1 Level 2 Level 3 Investment in Gold $ 3,943,181 $ — $ — Total $ 3,943,181 $ — $ — (Amounts in 000’s of US$) September 30, 2020 Level 1 Level 2 Level 3 Investment in Gold $ 3,542,996 $ — $ — Total $ 3,542,996 $ — $ — 12 Table of Contents There were no transfers between Level 1 and other Levels for the six months ended March 31, 2021 or for the year ended September 30, 2020. The Administrator values the gold held by GLDM on the basis of the price of an ounce of gold as determined by ICE Benchmark Administration Limited (the “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 (the “LBMA”). In determining the NAV of GLDM, the Administrator values the gold held on the basis of the price of an ounce of gold determined by the IBA 3:00 PM auction process (the “LBMA Gold Price PM”), which is an electronic auction. The auction runs twice daily at 10:30 AM and 3:00 PM London time. The Administrator calculates the NAV of GLDM on each day the NYSE Arca is open for regular trading, generally as of 12:00 PM New York time. If no LBMA Gold Price 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 is used in the determination of the NAV of GLDM, unless the Administrator, in consultation with the Sponsor, determines that such price is inappropriate to use as the basis for such determination. 2.5 Custody of Gold Gold is held by the Custodian on behalf of GLDM. During the six months ended March 31, 2021 and the year ended September 30, 2020, no gold was held by a subcustodian. 2.6 Gold Receivable Gold receivable represents the quantity of gold covered by contractually binding orders for the creation of Shares where the gold has not yet been transferred to GLDM’s account. Generally, ownership of the gold is transferred within two business days of the trade date. Mar-31, Sep-30, (Amounts in 000’s of US$) 2021 2020 Gold receivable $ — $ 18,793 2.7 Gold Payable Gold payable represents the quantity of gold covered by contractually binding orders for the redemption of Shares where the gold has not yet been transferred out of GLDM’s account. Generally, ownership of the gold is transferred within two business days of the trade date. Mar-31, Sep-30, (Amounts in 000’s of US$) 2021 2020 Gold payable $ — $ — 2.8 Creations and Redemptions of Shares GLDM creates and redeems Shares from time to time, but only in one or more Creation Units (a Creation Unit equals a block of 100,000 Shares). GLDM issues Shares in Creation Units to certain authorized participants (“Authorized Participants”) on an ongoing basis. The creation and redemption of Creation Units is only made in exchange for the amount of gold and any cash represented by the Creation Units being created or redeemed. This amount will be based on the combined net asset value of the number of Shares included in the Creation Units being created or redeemed determined on the day the order to create or redeem Creation Units is properly received. 13 Table of Contents As the Shares are redeemable in Creation Units at the option of the Authorized Participants, GLDM has classified the Shares as Net Assets for financial reporting purposes. Changes in the Shares for the six months ended March 31, 2021 and 2020 are as follows: (Amounts are in 000’s) Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 Activity in Number of Shares Created and Redeemed: Creations 66,700 35,700 Redemptions ( 21,900 ) ( 5,900 ) Net Change in Number of Shares Created and Redeemed 44,800 29,800 (Amounts in 000’s of US$) Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 Activity in Value of Shares Created and Redeemed: Creations $ 1,222,024 $ 561,396 Redemptions ( 393,149 ) ( 87,590 ) Net change in Value of Shares Created and Redeemed $ 828,875 $ 473,806 2.9 Income and Expense (Amounts in 000’s of US$) The Administrator will, at the direction of the Sponsor, sell GLDM’s gold as necessary to pay its expenses. When selling gold to pay expenses, the Administrator will endeavor to sell the smallest amount of gold needed to pay expenses in order to minimize GLDM’s holdings of assets other than gold. Unless otherwise directed by the Sponsor, the Administrator will give a sell order and sell gold to the Custodian at the LBMA Gold Price PM following the sell order. 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 Sponsor expenses on the Statement of Operations. GLDM’s net realized and change in unrealized gain/(loss) on investment in gold for the six months ended March 31, 2021 of $( 444,088 ) is made up of a realized gain of $ 346 from the sale of gold to pay Sponsor fees, a realized gain of $ 36,875 from gold distributed for the redemption of shares, and a change in unrealized depreciation of $( 481,309 ) on investment in gold. GLDM’s net realized and change in unrealized gain/(loss) on investment in gold for the six months ended March 31, 2020 of $ 91,685 is made up of a realized gain of $ 116 from the sale of gold to pay Sponsor fees, a realized gain of $ 8,005 from gold distributed for the redemption of shares, and a change in unrealized appreciation of $ 83,564 on investment in gold. 2.10 Income Taxes GLDM is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, it is not subject to U.S. federal income tax. Instead, its income and expenses “flow through” to the shareholders, and the Administrator will report GLDM’s proceeds, income, deductions, gains and losses to the Internal Revenue Service on that basis. The Sponsor has evaluated whether there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2021. As of 14 Table of Contents March 31, 2021, the 2019 and 2018 tax years remain open for examination. There were no examinations in progress at period end. 3. Related Parties—Sponsor The Sponsor receives an annual fee equal to 0.18 % of the NAV of GLDM, calculated on a daily basis. The Sponsor is responsible for the payment of all of GLDM’s ordinary fees and expenses, including but not limited to the following: fees charged by GLDM’s Administrator, Custodian, Marketing Agent and Trustee; exchange listing fees; typical maintenance and transaction fees of The Depository Trust Company; SEC registration fees; printing and mailing costs; audit fees and expenses; and legal fees not in excess of $ 100,000 per annum and expenses and applicable license fees. The Sponsor is not, however, required to pay any extraordinary expenses incurred in the ordinary course of GLDM’s business as outlined in the Sponsor’s agreement with the Trust. 4. GLDM Expenses GLDM’s only ordinary recurring operating expense is the Sponsor’s annual fee of 0.18 % of the NAV of GLDM. The Sponsor’s fee is payable monthly in arrears. Expenses payable will reduce the NAV of GLDM. 5. Concentration of Risk GLDM’s primary business activities are the investment in gold and the issuance and sale of Shares. Various factors could affect the price of gold including: (i) global gold supply and demand, which is influenced by such factors 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 gold-producing countries such as China, Australia, South Africa and the United States; (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; (vi) other economic variables such as income growth, economic output, and monetary policies; and (vii) global or regional political, economic or financial events and situations. In addition, while gold is used to preserve wealth by investors around the world, 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 GLDM’s financial position and results of operations. 6. Indemnification The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith or willful misconduct. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. The Trustee and each of its officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. The Sponsor will not be liable to the Trust, the Trustee or any shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment 15 Table of Contents or for depreciation or loss incurred by reason of the sale of any gold or other assets held in trust under Declaration of Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. 7. Financial Highlights The following presentation includes financial highlights related to investment performance and operations of a Share outstanding for the three and six months ended March 31, 2021 and 2020. 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 NYSE Arca during the period. An individual investor’s return and ratios may vary based on the timing of capital transactions. Three Months Ended Mar-31, 2021 Three Months Ended Mar-31, 2020 Six Months Ended Mar-31, 2021 Six Months Ended Mar-31, 2020 (unaudited) (unaudited) (unaudited) (unaudited) Net Asset Value Net asset value per Share, beginning of period $ 18.83 $ 15.19 $ 18.79 $ 14.82 Net investment income/(loss) ( 0.01 ) ( 0.01 ) ( 0.02 ) ( 0.01 ) Net Realized and Change in Unrealized Gain/(Loss) ( 1.99 ) 0.86 ( 1.94 ) 1.23 Net Income/(Loss) ( 2.00 ) 0.85 ( 1.96 ) 1.22 Net asset value per Share, end of period $ 16.83 $ 16.04 $ 16.83 $ 16.04 Market value per Share, beginning of period $ 18.94 $ 15.14 $ 18.80 $ 14.70 Market value per Share, end of period $ 17.00 $ 15.72 $ 17.00 $ 15.72 Ratio to average net assets Net investment loss (1) ( 0.18 )% ( 0.18 )% ( 0.18 )% ( 0.18 )% Gross expenses (1) 0.18 % 0.18 % 0.18 % 0.18 % Net expenses (1) 0.18 % 0.18 % 0.18 % 0.18 % Total Return, at net asset value (2) ( 10.62 )% 5.60 % ( 10.43 )% 8.23 % Total Return, at market value (2) ( 10.24 )% 3.83 % ( 9.57 )% 6.94 % (1) Percentages are annualized. (2) Percentages are not annualized . 16 Table of Contents