Add
PPLT to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| PPLT > SEC Filings for PPLT > Form 10-Q on 10-Aug-2011 | All Recent SEC Filings |
10-Aug-2011
Quarterly Report
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 p.m. 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 price (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 Sponsor's Fees computed for such day to determine the net asset value ("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.
The Quarter Ended June 30, 2011
The NAV of the Trust is obtained by subtracting the Trust's liabilities on any day from the value of the platinum owned by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.
The Trust's NAV decreased from $765,579,067 at March 31, 2011 to $725,374,893 at June 30, 2011, a 5.25% decrease for the quarter. The decrease in the Trust's NAV resulted primarily from a decrease in the price per ounce of platinum, which fell 2.88% from $1,773.00 at March 31, 2011 to $1,722.00 at June 30, 2011 and a decrease in outstanding Shares, which fell from 4,350,000 Shares at March 31, 2011 to 4,250,000 Shares at June 30, 2011, a result of 450,000 Shares (9 Baskets) being created and 550,000 Shares (11 Baskets) being redeemed during the quarter.
NAV per Share decreased 3.02% from $176.00 at March 31, 2011 to $170.68 at June 30, 2011. The Trust's NAV per Share fell slightly more than the price per ounce of platinum on a percentage basis due to Sponsor's Fees, which were $1,162,433 for the quarter, or 0.60% of the Trust's assets on an annualized basis.
The NAV per Share of $184.33 at May 3, 2011 was the highest during the quarter, compared with a low of $166.42 at June 27, 2011.
Net gain from operations for the quarter ended June 30, 2011 was $5,930,502, resulting from a net gain of $107,611 on the transfer of platinum to pay expenses and a net gain of $6,985,324 on platinum distributed for the redemption of Shares, offset by Sponsor's Fees of $1,162,433. Other than the Sponsor's Fee, the Trust had no expenses during the quarter ended June 30, 2011.
The Six Months Ended June 30, 2011
The Trust's NAV decreased from $765,761,606 at December 31, 2010 to $725,374,893
at June 30, 2011, a 5.27% decrease for the period. The decrease in the Trust's
NAV resulted primarily from a decrease in the price per ounce of platinum, which
fell 0.52% from $1,731.00 at December 31, 2010 to $1,722.00 at June 30, 2011 and
a decrease in outstanding Shares, which fell from 4,450,000 Shares at December
31, 2010 to 4,250,000 Shares at June 30, 2011, a result of 1,000,000 Shares (20
Baskets) being created and 1,200,000 Shares (24 Baskets) being redeemed during
the period.
NAV per Share decreased 0.81% from $172.08 at December 31, 2010 to $170.68 at June 30, 2011.
Sponsor's Fees were $2,352,282 for the period, or 0.60% of the Trust's assets on an annualized basis.
The NAV per Share of $184.58 at February 9, 2011 was the highest during the period, compared with a low of $166.42 at June 27, 2011.
Net gain from operations for the period ended June 30, 2011 was $11,730,983 resulting from a net gain of $205,113 on the transfer of platinum to pay expenses and a net gain of $13,878,152 on platinum distributed for the redemption of Shares, offset by Sponsor's Fees of $2,352,282. Other than the Sponsor's Fee, the Trust had no expenses during the period ended June 30, 2011.
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 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 June 30, 2011 the Trust did not have any cash balances.
Off-Balance Sheet Arrangements
The Trust has no off-balance sheet arrangements.
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.
|
|