Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 26, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K/A | ' | ' |
Amendment Flag | 'true | ' | ' |
Amendment Description | 'ETFS Palladium Trust is filing this Amendment No.1 on form 10-K/A (this "Amendment") to amend our 10-K for the year ended December 31, 2013, filed on February 28, 2014 (the "Original Filing"). This amendment is being filed solely to correct an error identified in the Table of Contents, an incorrect version of which was included in the Original Filing. No other changes have been made to the Original Filing. This Amendment No. 1 does not reflect events that may have occurred subsequent to the Original Filing date, and does not modify or update in any way disclosures made in the Form 10-K for the year ended December 31, 2013. | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'ETFS PALLADIUM TRUST | ' | ' |
Entity Central Index Key | '0001459862 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 6,650,000 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $526,897,500 |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Statements_of_Financial_Condit
Statements of Financial Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
ASSETS | ' | ' | ||
Investment in palladium | $463,598,000 | [1] | $445,038,000 | [1] |
Total assets | 463,598,000 | 445,038,000 | ||
LIABILITIES | ' | ' | ||
Fees payable to Sponsor | 260,849 | 254,522 | ||
Total liabilities | 261,000 | 255,000 | ||
REDEEMABLE SHARES AND SHAREHOLDERS’ DEFICIT | ' | ' | ||
Shares at redemption value to investors | 510,214,000 | [2] | 497,765,000 | [2] |
Shareholders’ deficit | -46,877,000 | -52,982,000 | ||
Total liabilities, redeemable Shares & shareholders’ deficit | $463,598,000 | $445,038,000 | ||
[1] | The investment in palladium is valued at the lower of cost or market value. Refer to note 2.1 for a breakdown of cost and market value of the investment in palladium. | |||
[2] | Authorized Share capital is unlimited and no par value per Share. Shares issued and outstanding at December 31, 2013 were 7,350,000 and at December 31, 2012 were 7,250,000. |
Statements_of_Financial_Condit1
Statements of Financial Condition (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 |
Statements of Financial Condition [Abstract] | ' | ' |
Common stock, shares authorized | 'unlimited | 'unlimited |
Common stock, shares issued | 7,350,000 | 7,250,000 |
Common stock, shares outstanding | 7,350,000 | 7,250,000 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
REVENUES | ' | ' | ' |
Value of palladium transferred to pay expenses | $3,291,000 | $2,884,000 | $4,443,000 |
Cost of palladium transferred to pay expenses | -2,904,000 | -2,806,000 | -3,442,000 |
Gain on palladium transferred to pay expenses | 387,000 | 78,000 | 1,001,000 |
Gain on palladium distributed for the redemption of Shares | 14,838,000 | 616,000 | 86,833,000 |
Total gain on palladium | 15,225,000 | 694,000 | 87,834,000 |
EXPENSES | ' | ' | ' |
Sponsor’s Fee | 3,297,191 | 2,943,626 | 4,203,724 |
Total expenses | 3,297,000 | 2,944,000 | 4,203,000 |
Net gain / (loss) from operations | $11,928,000 | ($2,250,000) | $83,631,000 |
Net gain / (loss) per Share (in Dollars per Share) | $1.54 | ($0.29) | $8.87 |
Weighted average number of Shares (in Shares) | 7,721,918 | 7,737,568 | 9,432,740 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCREASE IN CASH FROM OPERATIONS: | ' | ' | ' |
Cash proceeds received from transfer of palladium | $0 | $0 | $0 |
Cash expenses paid | 0 | 0 | 0 |
Increase in cash resulting from operations | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ' | ' | ' |
Value of palladium received for creation of Shares | 140,584 | 194,997 | 190,757 |
Value of palladium distributed for redemption of Shares - at average cost | 119,120 | 98,236 | 433,432 |
RECONCILIATION OF NET GAIN / ( LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | ' | ' | ' |
Net gain / (loss) from operations | 11,928 | -2,250 | 83,631 |
Adjustments to reconcile net gain / (loss) to net cash provided by operating activities: | ' | ' | ' |
(Increase) / decrease in investment in palladium | -18,560 | -93,955 | 246,117 |
Decrease in palladium receivable | 0 | 0 | 23,591 |
Increase / (decrease) in fees payable to Sponsor | 6 | 60 | -243 |
Increase / (decrease) in redeemable Shares: | ' | ' | ' |
Creations | 140,584 | 194,997 | 167,166 |
Redemptions | -133,958 | -98,852 | -520,262 |
Net cash provided by operating activities | 0 | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ' | ' | ' |
Value of palladium transferred to pay expenses | $3,291 | $2,884 | $4,443 |
Statement_of_Changes_in_Shareh
Statement of Changes in Shareholders' Deficit (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Changes in Shareholders' Deficit [Abstract] | ' | ' | ' |
Shareholders’ deficit - opening balance | ($52,982) | ($23,047) | ($264,285) |
Net gain / (loss) from operations | 11,928 | -2,250 | 83,631 |
Adjustment of redeemable Shares to redemption value | -5,823 | -27,685 | 157,607 |
Shareholders’ deficit – closing balance | ($46,877) | ($52,982) | ($23,047) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization [Abstract] | ' |
Organization | ' |
1. Organization | |
The ETFS Palladium Trust (the “Trust”) is an investment trust formed on December 30, 2009, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds palladium bullion and issues ETFS Physical Palladium Shares (the “Shares”) (in minimum blocks of 50,000 Shares, referred to as “Baskets”) in exchange for deposits of palladium and distributes palladium in connection with redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company that is a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands based company. The Trust is governed by the Trust Agreement. | |
The investment objective of the Trust is for the Shares to reflect the performance of the price of palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the palladium market through an investment in securities. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies | ' | ||||||||
2. Significant Accounting Policies | |||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 the Trust. | |||||||||
2.1. Valuation of Palladium | |||||||||
Palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, and is valued, for financial statement purposes, at the lower of cost or market. The cost of palladium is determined according to the average cost method and the market value is based on the London PM Fix used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of palladium to pay the remuneration due to the Sponsor (the “Sponsor’s Fee”), or palladium distributed for the redemption of Shares, are calculated on a trade date basis using average cost. The London PM Fix is the afternoon session of the twice daily fix of the price of an ounce of palladium which starts at 2:00 PM London, England time and is performed in London by the four members of the London Platinum and Palladium Market. | |||||||||
Once the value of palladium has been determined, the NAV is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the Sponsor’s Fee, from the fair value of the palladium and all other assets held by the Trust. | |||||||||
The table below summarizes the unrealized gains on the Trust’s palladium holdings as of December 31, 2013 and 2012: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(Amounts in 000's of US$) | |||||||||
Investment in palladium - average cost | $ | 463,598 | $ | 445,038 | |||||
Unrealized gain on investment in palladium | 46,877 | 52,982 | |||||||
Investment in palladium - market value | $ | 510,475 | $ | 498,020 | |||||
The Trust recognizes the diminution in value of the investment in palladium which arises from market declines on an interim basis. Increases in the value of the investment in palladium through market price recoveries in later interim periods of the same fiscal year are recognized in the later interim period. Increases in value recognized on an interim basis may not exceed the previously recognized diminution in value. | |||||||||
The per Share amount of palladium exchanged for a purchase or redemption is calculated daily by the Trustee, using the London PM Fix to calculate the palladium amount in respect of any liabilities for which covering palladium sales have not yet been made, and represents the per Share amount of palladium held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred. | |||||||||
2.2 Palladium Receivable or Payable | |||||||||
Palladium receivable or payable represents the quantity of palladium covered by contractually binding orders for the creation or redemption of Shares respectively, where the palladium has not yet been transferred to or from the Trust’s account. Generally, ownership of the palladium is transferred within three days of trade date. | |||||||||
There was no palladium receivable or payable at December 31, 2013 and 2012. | |||||||||
2.3. Creations and Redemptions of Shares | |||||||||
The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 50,000 shares). The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) is a participant in The Depository Trust Company, (3) has entered into an Authorized Participant Agreement with the Trustee and the Sponsor, and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian or other palladium bullion clearing bank. An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the palladium and any cash required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated palladium account, either loco London or loco Zurich, established with the Custodian or a palladium bullion clearing bank by an Authorized Participant. | |||||||||
The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of palladium represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. | |||||||||
Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When palladium is exchanged in settlement of redemption, it is considered a sale of palladium for financial statement purposes. | |||||||||
The amount of bullion represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of bullion to be delivered or distributed by the Trust. In order to ensure that the correct metal is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000th of an ounce. | |||||||||
The Shares of the Trust are classified as “Redeemable Capital Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. Changes in the Shares for the years ended December 31, 2013, 2012 and 2011 are set out below: | |||||||||
Year | Year | Year | |||||||
Ended | Ended | Ended | |||||||
(Amounts in 000's of US$, except for Share and per Share data) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||
Number of redeemable Shares | |||||||||
Opening balance | 7,250,000 | 5,950,000 | 11,250,000 | ||||||
Creations | 2,000,000 | 2,900,000 | 2,100,000 | ||||||
Redemptions | -1,900,000 | -1,600,000 | -7,400,000 | ||||||
Closing balance | 7,350,000 | 7,250,000 | 5,950,000 | ||||||
Redeemable Shares | |||||||||
Opening balance | $ | 497,765 | $ | 373,935 | $ | 884,638 | |||
Creations | 140,584 | 194,997 | 167,166 | ||||||
Redemptions | -133,958 | -98,852 | -520,262 | ||||||
Adjustment to redemption value | 5,823 | 27,685 | -157,607 | ||||||
Closing balance | $ | 510,214 | $ | 497,765 | $ | 373,935 | |||
Redemption value per Share at period end | $ | 69.42 | $ | 68.66 | $ | 62.85 | |||
2.4. Revenue Recognition Policy | |||||||||
Revenues consist of realized gains / losses resulting from the transfer of palladium for Share redemptions and / or to pay expenses. Realized gains / losses are recognized on a trade date basis. | |||||||||
The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of palladium to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s palladium as necessary to pay these expenses. When selling palladium to pay expenses, the Trustee will endeavor to sell the smallest amounts of palladium needed to pay these expenses in order to minimize the Trust’s holdings of assets other than palladium. | |||||||||
Unless otherwise directed by the Sponsor, when selling palladium the Trustee will endeavor to sell at the price established by the London PM Fix. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such palladium, only if the sale transaction is made at the next London PM Fix or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. | |||||||||
2.5. Income Taxes | |||||||||
The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. 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 Trust has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes. The Sponsor has evaluated the application of ASC 740 to the Trust, to determine whether or not there are uncertain tax positions that require financial statement recognition. Based on this evaluation, the Sponsor has determined no reserves for uncertain tax positions are required to be recorded as a result of the application of ASC 740. As a result, no income tax liability or expense has been recorded in the accompanying financial statements. | |||||||||
2.6. Investment in Palladium | |||||||||
Changes in ounces of palladium and the respective values for the years ended December 31, 2013, 2012 and 2011 are set out below: | |||||||||
Year | Year | Year | |||||||
Ended | Ended | Ended | |||||||
(Amounts in 000's of US$, except for ounces data) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||
Ounces of palladium | |||||||||
Opening balance | 712,474.5 | 588,255.6 | 1,089,108.1 | ||||||
Creations | 196,033.9 | 286,166.1 | 238,310.9 | ||||||
Redemptions | -185,992.90 | -157,419.80 | -733,279.80 | ||||||
Transfers of palladium to pay expenses | -4,547.90 | -4,527.40 | -5,883.60 | ||||||
Closing balance | 717,967.6 | 712,474.5 | 588,255.6 | ||||||
Investment in palladium (lower of cost or market) | |||||||||
Opening balance | $ | 445,038 | $ | 351,083 | $ | 597,200 | |||
Creations | 140,584 | 194,997 | 190,757 | ||||||
Redemptions | -119,120 | -98,236 | -433,432 | ||||||
Transfers of palladium to pay expenses | -2,904 | -2,806 | -3,442 | ||||||
Closing balance | $ | 463,598 | $ | 445,038 | $ | 351,083 | |||
2.7. Expenses | |||||||||
The Trust will transfer palladium to pay the Sponsor’s Fee that will accrue daily at an annualized rate equal to 0.60% of the adjusted net asset value (“ANAV”) of the Trust, paid monthly in arrears. | |||||||||
The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses. | |||||||||
For the year ended December 31, 2013 the Sponsor’s Fee was $3,297,191 (December 31, 2012: $2,943,626; December 31, 2011: $4,203,724). | |||||||||
At December 31, 2013 $260,849 was payable to the Sponsor (December 31, 2012: $254,522). | |||||||||
2.8 Recent Accounting Pronouncements | |||||||||
In June 2013, the Financial Accounting Standards Board issued ASU 2013-08, Financial Services –Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements. ASU 2013-08 changes the approach to the investment company assessment, requires non-controlling ownership interests in other investment companies to be measured at fair value, and requires additional disclosures about the investment company's status as an investment company. The amendments are effective for interim and annual reporting periods beginning after December 15, 2013. The Trust is currently evaluating the impact, if any, this pronouncement will have on the financial statements. | |||||||||
2.9 Subsequent Events | |||||||||
In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events were identified. | |||||||||
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Related Parties [Abstract] | ' |
Related Parties | ' |
3. Related Parties | |
The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants or purchase or sell palladium or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. | |
Concentration_Of_Risk
Concentration Of Risk | 12 Months Ended |
Dec. 31, 2013 | |
Concentration Of Risk [Abstract] | ' |
Concentration Of Risk | ' |
4. Concentration of Risk | |
The Trust’s sole business activity is the investment in palladium, and substantially all the Trust’s assets are holdings of palladium which creates a concentration risk associated with fluctuations in the price of palladium. Several factors could affect the price of palladium, including: (i) global palladium supply, which is influenced by factors such as production and cost levels in major palladium-producing countries. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers of palladium supply and demand. Sales of existing stockpiles of palladium have been a key source of supply in the past eight years and are likely to be exhausted soon, placing a higher burden on new mine supply; (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; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that palladium will maintain its long-term value in terms of purchasing power in the future. In the event that the price of palladium 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 the Trust’s financial position and results of operations. | |
Indemnification
Indemnification | 12 Months Ended |
Dec. 31, 2013 | |
Indemnification [Abstract] | ' |
Indemnification | ' |
5. Indemnification | |
Under the Trust’s organizational documents, each of the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees, and affiliates) is indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||
Valuation Of Palladium | ' | ||||||||
2.1. Valuation of Palladium | |||||||||
Palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, and is valued, for financial statement purposes, at the lower of cost or market. The cost of palladium is determined according to the average cost method and the market value is based on the London PM Fix used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of palladium to pay the remuneration due to the Sponsor (the “Sponsor’s Fee”), or palladium distributed for the redemption of Shares, are calculated on a trade date basis using average cost. The London PM Fix is the afternoon session of the twice daily fix of the price of an ounce of palladium which starts at 2:00 PM London, England time and is performed in London by the four members of the London Platinum and Palladium Market. | |||||||||
Once the value of palladium has been determined, the NAV is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the Sponsor’s Fee, from the fair value of the palladium and all other assets held by the Trust. | |||||||||
The table below summarizes the unrealized gains on the Trust’s palladium holdings as of December 31, 2013 and 2012: | |||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(Amounts in 000's of US$) | |||||||||
Investment in palladium - average cost | $ | 463,598 | $ | 445,038 | |||||
Unrealized gain on investment in palladium | 46,877 | 52,982 | |||||||
Investment in palladium - market value | $ | 510,475 | $ | 498,020 | |||||
The Trust recognizes the diminution in value of the investment in palladium which arises from market declines on an interim basis. Increases in the value of the investment in palladium through market price recoveries in later interim periods of the same fiscal year are recognized in the later interim period. Increases in value recognized on an interim basis may not exceed the previously recognized diminution in value. | |||||||||
The per Share amount of palladium exchanged for a purchase or redemption is calculated daily by the Trustee, using the London PM Fix to calculate the palladium amount in respect of any liabilities for which covering palladium sales have not yet been made, and represents the per Share amount of palladium held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred. | |||||||||
Palladium Receivable Or Payable | ' | ||||||||
2.2 Palladium Receivable or Payable | |||||||||
Palladium receivable or payable represents the quantity of palladium covered by contractually binding orders for the creation or redemption of Shares respectively, where the palladium has not yet been transferred to or from the Trust’s account. Generally, ownership of the palladium is transferred within three days of trade date. | |||||||||
There was no palladium receivable or payable at December 31, 2013 and 2012. | |||||||||
Creations And Redemptions Of Shares | ' | ||||||||
2.3. Creations and Redemptions of Shares | |||||||||
The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 50,000 shares). The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) is a participant in The Depository Trust Company, (3) has entered into an Authorized Participant Agreement with the Trustee and the Sponsor, and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian or other palladium bullion clearing bank. An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the palladium and any cash required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated palladium account, either loco London or loco Zurich, established with the Custodian or a palladium bullion clearing bank by an Authorized Participant. | |||||||||
The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of palladium represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. | |||||||||
Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When palladium is exchanged in settlement of redemption, it is considered a sale of palladium for financial statement purposes. | |||||||||
The amount of bullion represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of bullion to be delivered or distributed by the Trust. In order to ensure that the correct metal is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000th of an ounce. | |||||||||
The Shares of the Trust are classified as “Redeemable Capital Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. Changes in the Shares for the years ended December 31, 2013, 2012 and 2011 are set out below: | |||||||||
Year | Year | Year | |||||||
Ended | Ended | Ended | |||||||
(Amounts in 000's of US$, except for Share and per Share data) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||
Number of redeemable Shares | |||||||||
Opening balance | 7,250,000 | 5,950,000 | 11,250,000 | ||||||
Creations | 2,000,000 | 2,900,000 | 2,100,000 | ||||||
Redemptions | -1,900,000 | -1,600,000 | -7,400,000 | ||||||
Closing balance | 7,350,000 | 7,250,000 | 5,950,000 | ||||||
Redeemable Shares | |||||||||
Opening balance | $ | 497,765 | $ | 373,935 | $ | 884,638 | |||
Creations | 140,584 | 194,997 | 167,166 | ||||||
Redemptions | -133,958 | -98,852 | -520,262 | ||||||
Adjustment to redemption value | 5,823 | 27,685 | -157,607 | ||||||
Closing balance | $ | 510,214 | $ | 497,765 | $ | 373,935 | |||
Redemption value per Share at period end | $ | 69.42 | $ | 68.66 | $ | 62.85 | |||
Revenue Recognition Policy | ' | ||||||||
2.4. Revenue Recognition Policy | |||||||||
Revenues consist of realized gains / losses resulting from the transfer of palladium for Share redemptions and / or to pay expenses. Realized gains / losses are recognized on a trade date basis. | |||||||||
The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of palladium to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s palladium as necessary to pay these expenses. When selling palladium to pay expenses, the Trustee will endeavor to sell the smallest amounts of palladium needed to pay these expenses in order to minimize the Trust’s holdings of assets other than palladium. | |||||||||
Unless otherwise directed by the Sponsor, when selling palladium the Trustee will endeavor to sell at the price established by the London PM Fix. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such palladium, only if the sale transaction is made at the next London PM Fix or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. | |||||||||
Income Taxes | ' | ||||||||
2.5. Income Taxes | |||||||||
The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. 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 Trust has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes. The Sponsor has evaluated the application of ASC 740 to the Trust, to determine whether or not there are uncertain tax positions that require financial statement recognition. Based on this evaluation, the Sponsor has determined no reserves for uncertain tax positions are required to be recorded as a result of the application of ASC 740. As a result, no income tax liability or expense has been recorded in the accompanying financial statements. | |||||||||
Investment In Palladium | ' | ||||||||
2.6. Investment in Palladium | |||||||||
Changes in ounces of palladium and the respective values for the years ended December 31, 2013, 2012 and 2011 are set out below: | |||||||||
Year | Year | Year | |||||||
Ended | Ended | Ended | |||||||
(Amounts in 000's of US$, except for ounces data) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||
Ounces of palladium | |||||||||
Opening balance | 712,474.5 | 588,255.6 | 1,089,108.1 | ||||||
Creations | 196,033.9 | 286,166.1 | 238,310.9 | ||||||
Redemptions | -185,992.90 | -157,419.80 | -733,279.80 | ||||||
Transfers of palladium to pay expenses | -4,547.90 | -4,527.40 | -5,883.60 | ||||||
Closing balance | 717,967.6 | 712,474.5 | 588,255.6 | ||||||
Investment in palladium (lower of cost or market) | |||||||||
Opening balance | $ | 445,038 | $ | 351,083 | $ | 597,200 | |||
Creations | 140,584 | 194,997 | 190,757 | ||||||
Redemptions | -119,120 | -98,236 | -433,432 | ||||||
Transfers of palladium to pay expenses | -2,904 | -2,806 | -3,442 | ||||||
Closing balance | $ | 463,598 | $ | 445,038 | $ | 351,083 | |||
Expenses | ' | ||||||||
2.7. Expenses | |||||||||
The Trust will transfer palladium to pay the Sponsor’s Fee that will accrue daily at an annualized rate equal to 0.60% of the adjusted net asset value (“ANAV”) of the Trust, paid monthly in arrears. | |||||||||
The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses. | |||||||||
For the year ended December 31, 2013 the Sponsor’s Fee was $3,297,191 (December 31, 2012: $2,943,626; December 31, 2011: $4,203,724). | |||||||||
At December 31, 2013 $260,849 was payable to the Sponsor (December 31, 2012: $254,522). | |||||||||
Recent Accounting Pronouncements | ' | ||||||||
2.8 Recent Accounting Pronouncements | |||||||||
In June 2013, the Financial Accounting Standards Board issued ASU 2013-08, Financial Services –Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements. ASU 2013-08 changes the approach to the investment company assessment, requires non-controlling ownership interests in other investment companies to be measured at fair value, and requires additional disclosures about the investment company's status as an investment company. The amendments are effective for interim and annual reporting periods beginning after December 15, 2013. The Trust is currently evaluating the impact, if any, this pronouncement will have on the financial statements. | |||||||||
Subsequent Events | ' | ||||||||
2.9 Subsequent Events | |||||||||
In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events were identified. | |||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||
Schedule Of Unrealized Gains Or Losses On The Trust's Palladium Holdings | ' | ||||||||
31-Dec-13 | 31-Dec-12 | ||||||||
(Amounts in 000's of US$) | |||||||||
Investment in palladium - average cost | $ | 463,598 | $ | 445,038 | |||||
Unrealized gain on investment in palladium | 46,877 | 52,982 | |||||||
Investment in palladium - market value | $ | 510,475 | $ | 498,020 | |||||
Schedule Of Redeemable Capital Shares | ' | ||||||||
Year | Year | Year | |||||||
Ended | Ended | Ended | |||||||
(Amounts in 000's of US$, except for Share and per Share data) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||
Number of redeemable Shares | |||||||||
Opening balance | 7,250,000 | 5,950,000 | 11,250,000 | ||||||
Creations | 2,000,000 | 2,900,000 | 2,100,000 | ||||||
Redemptions | -1,900,000 | -1,600,000 | -7,400,000 | ||||||
Closing balance | 7,350,000 | 7,250,000 | 5,950,000 | ||||||
Redeemable Shares | |||||||||
Opening balance | $ | 497,765 | $ | 373,935 | $ | 884,638 | |||
Creations | 140,584 | 194,997 | 167,166 | ||||||
Redemptions | -133,958 | -98,852 | -520,262 | ||||||
Adjustment to redemption value | 5,823 | 27,685 | -157,607 | ||||||
Closing balance | $ | 510,214 | $ | 497,765 | $ | 373,935 | |||
Redemption value per Share at period end | $ | 69.42 | $ | 68.66 | $ | 62.85 | |||
Schedule Of Investment In Palladium | ' | ||||||||
Year | Year | Year | |||||||
Ended | Ended | Ended | |||||||
(Amounts in 000's of US$, except for ounces data) | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||
Ounces of palladium | |||||||||
Opening balance | 712,474.5 | 588,255.6 | 1,089,108.1 | ||||||
Creations | 196,033.9 | 286,166.1 | 238,310.9 | ||||||
Redemptions | -185,992.90 | -157,419.80 | -733,279.80 | ||||||
Transfers of palladium to pay expenses | -4,547.90 | -4,527.40 | -5,883.60 | ||||||
Closing balance | 717,967.6 | 712,474.5 | 588,255.6 | ||||||
Investment in palladium (lower of cost or market) | |||||||||
Opening balance | $ | 445,038 | $ | 351,083 | $ | 597,200 | |||
Creations | 140,584 | 194,997 | 190,757 | ||||||
Redemptions | -119,120 | -98,236 | -433,432 | ||||||
Transfers of palladium to pay expenses | -2,904 | -2,806 | -3,442 | ||||||
Closing balance | $ | 463,598 | $ | 445,038 | $ | 351,083 | |||
Organization_Details
Organization (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Organization [Abstract] | ' |
Minimum block of shares issued redeemed against palladium | 50,000 |
Significant_Accounting_Policie3
Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Abstract] | ' | ' | ' |
Annualized rate of Sponsors Fee | 0.60% | ' | ' |
Sponsor Fees | $3,297,191 | $2,943,626 | $4,203,724 |
Fees payable to the Sponsor | 260,849 | 254,522 | ' |
Palladium receivable at market value | $0 | $0 | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Schedule Of Unrealized Gains Or Losses On The Trust's Palladium Holdings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
Significant Accounting Policies [Abstract] | ' | ' | ' | ' | ||
Investment in palladium - average cost | $463,598 | [1] | $445,038 | [1] | $351,083 | $597,200 |
Unrealized gain on investment in palladium | 46,877 | 52,982 | ' | ' | ||
Investment in palladium - market value | $510,475 | $498,020 | ' | ' | ||
[1] | The investment in palladium is valued at the lower of cost or market value. Refer to note 2.1 for a breakdown of cost and market value of the investment in palladium. |
Significant_Accounting_Policie5
Significant Accounting Policies (Schedule Of Palladium Receivable And Payable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Abstract] | ' | ' |
Palladium receivable | $0 | $0 |
Palladium payable | $0 | $0 |
Significant_Accounting_Policie6
Significant Accounting Policies (Schedule Of Redeemable Capital Shares) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Significant Accounting Policies [Abstract] | ' | ' | ' | ||
Opening balance (in Shares) | 7,250,000 | 5,950,000 | 11,250,000 | ||
Creations (in Shares) | 2,000,000 | 2,900,000 | 2,100,000 | ||
Redemptions (in Shares) | -1,900,000 | -1,600,000 | -7,400,000 | ||
Closing balance (in Shares) | 7,350,000 | 7,250,000 | 5,950,000 | ||
Opening balance | $497,765 | [1] | $373,935 | $884,638 | |
Creations | 140,584 | 194,997 | 167,166 | ||
Redemptions | -133,958 | -98,852 | -520,262 | ||
Adjustment to redemption value | 5,823 | 27,685 | -157,607 | ||
Closing balance | $510,214 | [1] | $497,765 | [1] | $373,935 |
Redemption value per Share at period end (in Dollars per share) | $69.42 | $68.66 | $62.85 | ||
[1] | Authorized Share capital is unlimited and no par value per Share. Shares issued and outstanding at December 31, 2013 were 7,350,000 and at December 31, 2012 were 7,250,000. |
Significant_Accounting_Policie7
Significant Accounting Policies (Schedule Of Investment In Palladium) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
oz | oz | oz | |||
Significant Accounting Policies [Abstract] | ' | ' | ' | ||
Opening balance (in Ounces) | 712,474.50 | 588,255.60 | 1,089,108.10 | ||
Creations (in Ounces) | 196,033.90 | 286,166.10 | 238,310.90 | ||
Redemptions (in Ounces) | -185,992.90 | -157,419.80 | -733,279.80 | ||
Transfers of palladium to pay expenses (in Ounces) | -4,547.90 | -4,527.40 | -5,883.60 | ||
Closing balance (in Ounces) | 717,967.60 | 712,474.50 | 588,255.60 | ||
Opening balance | $445,038 | [1] | $351,083 | $597,200 | |
Creations | 140,584 | 194,997 | 190,757 | ||
Redemptions | -119,120 | -98,236 | -433,432 | ||
Transfers of palladium to pay expenses | -2,904 | -2,806 | -3,442 | ||
Closing balance | $463,598 | [1] | $445,038 | [1] | $351,083 |
[1] | The investment in palladium is valued at the lower of cost or market value. Refer to note 2.1 for a breakdown of cost and market value of the investment in palladium. |