10-Q/A: Franklin Responsibly Sourced Gold ETF Reports Financial Results for Quarter Ended December 31, 2023

Franklin Responsibly Sourced Gold ETF files amended 10-Q report showing an increase in net assets despite a decrease in shares outstanding.

Summary

• Franklin Templeton Holdings Trust is filing an amendment to its Form 10-Q for the quarter ended December 31, 2023, to include separately stated financial statements and schedules for the Trust and the Fund.
• The amendment addresses comments from the SEC and includes new certifications by the Principal Executive Officer and Principal Financial Officer.
• The Trust is an emerging growth company and may take advantage of certain exemptions from reporting requirements.
• The Fund's investment objective is to reflect the performance of the price of gold bullion, less expenses.
• As of December 31, 2023, the Fund held 28,059.466 ounces of gold, with a fair value of $57,869,843.
• The NAV per Share increased from $25.00 to $27.55 during the quarter ended December 31, 2023, due to an increase in the price of gold.
• For the nine months ended December 31, 2023, the Fund's net assets increased by $1,885,023.
• The Fund's only recurring expense is the Sponsor's fee of 0.15% of the NAV.
• 500,000 Shares were redeemed during the quarter ended December 31, 2023.
• The Fund is classified as a grantor trust for United States federal income tax purposes.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The fund's NAV increased, and it adheres to responsible sourcing. However, it is subject to market risks and experienced net redemptions.

Positives

• The Fund's NAV per Share increased during the quarter ended December 31, 2023.
• The Fund experienced a net increase in assets resulting from operations for the nine months ended December 31, 2023.
• The Fund holds responsibly sourced gold, aligning with ethical sourcing standards.
• The Sponsor assumes the ordinary fees and expenses of the Fund, providing cost efficiency.

Negatives

• The Fund experienced net redemptions of shares during the nine months ended December 31, 2023.
• The Fund's value is highly dependent on the price of gold, which can be volatile.
• The Fund's NAV per Share decreased during the period from May 24, 2022 to December 31, 2022.

Risks

• The Fund's performance is directly linked to the price of gold, which is subject to various market risks.
• Global gold supply and demand, inflation expectations, currency exchange rate volatility, and political/economic events can affect the price of gold.
• There is no assurance that gold will maintain its long-term value in terms of purchasing power.
• The Fund is subject to general market risks and uncertainties.

Future Outlook

The document contains forward-looking statements regarding future gold prices, market conditions, and the Fund's operations, which are subject to risks and uncertainties.

Industry Context

The Fund operates in the gold ETF market, providing investors with exposure to gold bullion while adhering to responsible sourcing guidelines.

Legal Proceedings

• As of February 12, 2024, the Trust and the Fund are not subject to any material legal proceedings, nor is any material legal proceeding threatened against the Trust or Fund.

Related Party Transactions

• Franklin Holdings, LLC is the Sponsor of the Trust and a related party.
• Franklin Distributors, LLC serves as the Marketing Agent of the Fund and is an affiliate of the Sponsor.
• The Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund in exchange for the Sponsor's fee.

Stakeholder Impact

• Shareholders are exposed to the price of gold bullion, less the Fund's expenses.
• Authorized Participants can create and redeem Creation Units in exchange for gold.
• The Fund's operations impact service providers such as the Administrator, Custodian, and Trustee.

Key Dates

Keywords

gold, ETF, Franklin Responsibly Sourced Gold ETF, financial results, gold bullion, net asset value, responsible sourcing