Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

ABERDEEN STANDARD SILVER ETF TRUST Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

11/06/2020 | 02:58pm EDT

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 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 within the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements may relate to the Trust's financial condition, 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 July 20, 2009. 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 does not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

The Trust holds silver and is expected to issue Baskets in exchange for deposits of silver and to distribute silver 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 silver, 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 silver.

The Trust issues and redeems Shares only with Authorized Participants in exchange for silver and only in one or more Baskets (a Basket equals a Block of 50,000 Shares). 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 "SIVR".

Valuation of Silver and Computation of Net Asset Value

On each day that the NYSE Arca is open for regular trading, as promptly as practicable after 4:00 p.m. New York time on such day (the "Evaluation Time"), the Trustee evaluates the silver held by the Trust and determine both the ANAV and the NAV of the Trust.

At the Evaluation Time, the Trustee values the Trust's silver on the basis of that day's LBMA Silver Price (the daily price of an ounce of silver as set at approximately 12:00 noon London, England time by LBMA-authorized bullion banks or market makers in an electronic, over-the-counter auction conducted by the ICE Benchmark Administration ("IBA") and disseminated by major market vendors, or, if no LBMA Silver Price is made on such day or has not been announced by the Evaluation Time, the next most recent LBMA Silver Price determined prior to the Evaluation Time is used, unless the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event the Sponsor determines that the LBMA Silver Price or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust's silver is not an appropriate basis for evaluation of the Trust's silver, it shall identify an alternative basis for such evaluation to be employed by the Trustee.

Once the value of the silver has been determined, the Trustee subtracts all estimated accrued but unpaid fees. The resulting figure is the adjusted net asset value (the "ANAV") of the Trust. The ANAV of the Trust is used to compute the Sponsor's Fee.



                                      12





                       ABERDEEN STANDARD SILVER ETF TRUST


The Trustee then subtracts from ANAV the amount of the accrued Sponsor's Fee computed for such day to determine the 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 September 30, 2020

The NAV of the Trust is obtained by subtracting the Trust's liabilities on any day from the value of the silver owned and receivable 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 increased from $507,681,170 at June 30, 2020 to $769,658,234 at September 30, 2020, a 51.60% increase for the quarter. The increase in the Trust's NAV resulted primarily from an increase in the price per ounce of silver, which rose 32.94% from $17.85 at June 30, 2020 to $23.73 at September 30, 2020 and an increase in outstanding Shares, which rose from 29,400,000 Shares at June 30, 2020 to 33,550,000 Shares at September 30, 2020, as a result of 4,650,000 Shares (93 Baskets) being created and 500,000 Shares (10 Baskets) being redeemed.

The NAV per Share increased 32.83% from $17.27 at June 30, 2020 to $22.94 at September 30, 2020. The Trust's NAV per Share rose slightly less than the price per ounce of silver on a percentage basis due to the Sponsor's Fee, which was $555,114 for the quarter, or 0.30% of the Trust's ANAV on an annualized basis.

The NAV per Share of $27.94 at September 1, 2020 was the highest during the quarter, compared with a low of $17.35 at July 2, 2020.

The increase in net assets from operations for the quarter ended September 30, 2020 was $162,818,720, resulting from a realized gain of $84,387 on the transfer of silver to pay expenses, a realized gain of $3,028,557 on silver distributed for the redemption of Shares, and a change in unrealized gain on investment in silver of $160,260,890, offset by the Sponsor's Fee, net of waiver, of $555,114. Other than the Sponsor's Fee, the Trust had no expenses during the quarter ended September 30, 2020.

The Nine Months Ended September 30, 2020

The Trust's NAV increased from $407,463,630 at December 31, 2019 to $769,658,234 at September 30, 2020, a 88.89% increase for the period. The increase in the Trust's NAV resulted primarily from an increase in outstanding Shares, which rose from 23,300,000 Shares at December 31, 2019 to 33,550,000 Shares at September 30, 2020, as a result of 10,900,000 Shares (218 Baskets) being created and 650,000 Shares (13 Baskets) being redeemed, as well as an increase in the price per ounce of silver, which rose 31.47% from $18.05 at December 31, 2019 to $23.73 at September 30, 2020.

The NAV per Share increased 31.16% from $17.49 at December 31, 2019 to $22.94 at September 30, 2020. The Trust's NAV per Share rose slightly less than the price per ounce of silver on a percentage basis due to the Sponsor's Fee, net of waiver, which was $1,172,012 for the period, or 0.30% of the Trust's ANAV on an annualized basis.

The NAV per Share of $27.94 at September 1, 2020 was the highest during the period, compared with a low of $11.63 at March 19, 2020.

The increase in net assets from operations for the period ended September 30, 2020 was $171,975,468, resulting from a realized gain of $38,496 on the transfer of silver to pay expenses, a realized gain of $2,793,078 on silver distributed for the redemption of Shares, and a change in unrealized gain on investment in silver of $170,315,906, offset by the Sponsor's Fee, net of waiver, of $1,172,012. Other than the Sponsor's Fee, the Trust had no expenses during the period ended September 30, 2020.



                                      13





                       ABERDEEN STANDARD SILVER ETF TRUST


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 silver as necessary to pay the Trust's expenses not otherwise assumed by the Sponsor. The Trustee will not sell silver to pay the Sponsor's Fee but will pay the Sponsor's Fee through in-kind transfers of silver to the Sponsor. At September 30, 2020, the Trust did not have any cash balances.

Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with U.S. GAAP. The preparation of these financial statements relies on estimates and assumptions, such as the Valuation of Silver and Computation of Net Asset Value discussed above, that impact the Trust's financial position and results of operations. These estimates and assumptions affect the Trust's application of accounting policies.

© Edgar Online, source Glimpses

Latest news "Companies"
05:59pGOPRO : Q1 Earnings Snapshot
AQ
05:59pCARDIFF ONCOLOGY : Q1 Earnings Snapshot
AQ
05:59pHALF-YEAR RESULTS 2020/21 : Strong growth in the cloud // Substantial increase in EBIT and rising EBIT margin
PU
05:59pBig Fossil Fuel Infrastructure Unaffordable, Secretary-General Tells Petersberg Climate Dialogue, Stressing Such Investments ‘Simply Deepen Our Predicament'
PU
05:59pNTOG members onboard HMCS Calgary make record-breaking heroin bust
PU
05:59pPIZZA PIZZA ROYALTY CORP.  : Announces Timing of First Quarter Results
AQ
05:59pGENEURO  : Availability of documents and information for the annual shareholders' meeting of May 27, 2021
PU
05:58pCATCHMARK : Q1 Earnings Snapshot
AQ
05:58pWESTERN FOREST PRODUCTS INC.  : Announces Results of Annual and Special Meeting of Shareholders
AQ
05:57pFUNKO-A : Q1 Earnings Snapshot
AQ
Latest news "Companies"