Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Aberdeen Standard Palladium ETF Trust | ||
Entity Central Index Key | 1,459,862 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | pall | ||
Entity Public Float | $ 144,960,000 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,650,000 |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Investment in palladium (cost: December 31, 2018: $112,344; December 31, 2017: $155,318) | $ 185,555,000 | $ 241,679,000 | |
Total assets | 185,555,000 | 241,679,000 | |
LIABILITIES | |||
Fees payable to Sponsor | 89,688 | 124,409 | |
Total Liabilities | 90,000 | 124,000 | |
Net assets | [1] | $ 185,465,000 | $ 241,555,000 |
[1] | Authorized share capital is unlimited and no par value per share. Shares issued and outstanding at December 31, 2018 were 1,550,000 and at December 31, 2017 were 2,400,000. Net asset value per share at December 31, 2018 was $119.66 and at December 31, 2017 was $100.65. |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements of Assets and Liabilities [Abstract] | ||
Investment in palladium at cost | $ 112,344 | $ 155,318 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, par value | ||
Common stock, shares issued | 1,550,000 | 2,400,000 |
Common stock, shares outstanding | 1,550,000 | 2,400,000 |
Net asset value per share | $ 119.66 | $ 100.65 |
Schedules of Investments
Schedules of Investments $ in Thousands | Dec. 31, 2018USD ($)oz | Dec. 31, 2017USD ($)oz | |
Investment Holdings [Line Items] | |||
Investment in palladium (oz) | oz | 146,915.9 | 228,863.1 | |
Cost | $ 112,344 | $ 155,318 | |
Fair Value | $ 185,555 | $ 241,679 | |
% of Net Assets | 100.05% | 100.05% | |
Less liabilities | $ (90) | $ (124) | |
Less liabilities, % of Net Assets | (0.05%) | (0.05%) | |
Net assets | [1] | $ 185,465 | $ 241,555 |
Net assets, % of Net Assets | 100.00% | 100.00% | |
Palladium [Member] | |||
Investment Holdings [Line Items] | |||
Investment in palladium (oz) | oz | 146,915.9 | 228,863.1 | |
Cost | $ 112,344 | $ 155,318 | |
Fair Value | $ 185,555 | $ 241,679 | |
% of Net Assets | 100.05% | 100.05% | |
[1] | Authorized share capital is unlimited and no par value per share. Shares issued and outstanding at December 31, 2018 were 1,550,000 and at December 31, 2017 were 2,400,000. Net asset value per share at December 31, 2018 was $119.66 and at December 31, 2017 was $100.65. |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EXPENSES | |||
Sponsor's Fee | $ 1,073,755 | $ 1,278,403 | $ 1,099,935 |
Total expenses | 1,074,000 | 1,278,000 | 1,100,000 |
Net investment loss | (1,074,000) | (1,278,000) | (1,100,000) |
REALIZED AND UNREALIZED GAINS / (LOSSES) | |||
Realized gain / (loss) on palladium transferred to pay expenses | 340,000 | 266,000 | (82,000) |
Realized gain / (loss) on palladium distributed for the redemption of Shares | 30,150,000 | 14,337,000 | (1,837,000) |
Change in unrealized (loss) /gain on investment in palladium | (13,150,000) | 77,205,000 | 43,045,000 |
Total gain on investment in palladium | 17,340,000 | 91,808,000 | 41,126,000 |
Change in net assets from operations | $ 16,266,000 | $ 90,530,000 | $ 40,026,000 |
Net increase in net assets per Share | $ 8.91 | $ 35.37 | $ 12.85 |
Weighted average number of Shares (in Shares) | 1,826,301 | 2,559,726 | 3,114,344 |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements of Changes in Net Assets [Abstract] | |||
Opening balance (in Shares) | 2,400,000 | 2,750,000 | 3,450,000 |
Creations (in Shares) | 400,000 | 450,000 | 400,000 |
Redemptions (in Shares) | (1,250,000) | (800,000) | (1,100,000) |
Closing balance (in Shares) | 1,550,000 | 2,400,000 | 2,750,000 |
Opening balance | $ 241,555 | $ 178,252 | $ 182,043 |
Net investment loss | (1,074) | (1,278) | (1,100) |
Realized gain on investment in palladium | 30,490 | 14,603 | (1,919) |
Change in unrealized gain/(loss) on investment in palladium | (13,150) | 77,205 | 43,045 |
Creations | 42,111 | 37,402 | 22,809 |
Redemptions | (114,467) | (64,629) | (66,626) |
Closing balance | $ 185,465 | $ 241,555 | $ 178,252 |
Financial Highlights
Financial Highlights - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Per Share Performance (for a Share outstanding throughout the entire period) | |||
Net asset value per Share at beginning of period | $ 100.65 | $ 64.82 | $ 52.77 |
Income from investment operations: | |||
Net investment loss | (0.59) | (0.50) | (0.35) |
Total realized and unrealized gains or losses on investment in palladium | 19.60 | 36.33 | 12.40 |
Change in net assets from operations | 19.01 | 35.83 | 12.05 |
Net asset value per Share at end of period | $ 119.66 | $ 100.65 | $ 64.82 |
Weighted average number of shares | 1,826,301 | 2,559,726 | 3,114,344 |
Expense ratio | 0.60% | 0.60% | 0.60% |
Net investment loss ratio | (0.60%) | (0.60%) | (0.60%) |
Total return, at net asset value | 18.89% | 55.28% | 22.83% |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization [Abstract] | |
Organization | 1. Organ ization The Aberdeen Standard Palladium ETF Trust (the “Trust”), formerly known as ETFS Palladium Trust prior to October 1, 2018, is an investment trust formed on December 30, 2009, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by Aberdeen Standard Investments ETFs Sponsor LLC (the “Sponsor”), formerly known as ETF Securities USA LLC prior to October 1, 2018, and The Bank of New York Mellon as trustee (the “Trustee”) at the time of the Trust’s organization. The Trust holds palladium bullion and issues Aberdeen Standard Physical Palladium Shares ETF (the “Shares”), formerly known as ETFS Physical Palladium Shares prior to October 1, 2018, (in minimum blocks of 50,000 Shares, also 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. Prior to April 27, 2018, the Sponsor was wholly-owned by ETF Securities Limited, a Jersey, Channel Islands based company. Effective April 27, 2018, ETF Securities Limited sold its membership interest in the Sponsor to Aberdeen Standard Investments Inc. (“ASII”), formerly known as Aberdeen Asset Management Inc. prior to January 1, 2019 , a Delaware corporation. As a result of the sale, A SII became the sole member of the Sponsor. A SII is a wholly-owned indirect subsidiary of Standard Life Aberdeen plc. 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 Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Signific ant 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. Basis of Accounting The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies , and has concluded that for reporting purposes, the Trust is classified as an Investment Company. 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. 2.2. Valuation of Palladium The Trust follows the provisions of FASB ASC 820, Fair Value Measurements (“ASC 820”). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. Palladium may also be held by UBS AG, or any other firm selected by the Custodian to hold the Trust’s palladium in the Trust’s allocated account in the firm’s Zurich, Switzerland vault premises on a segregated basis and whose appointment has been approved by the Sponsor (the “Zurich Sub-Custodian”). Palladium is recorded at fair value. The cost of palladium is determined according to the average cost method and the fair value is based on the afternoon session of the twice daily fix of an ounce of palladium administered by the London Metal Exchange (“LME”) (the “LME PM Fix”). Realized gains and losses on transfers of palladium, or palladium distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and cost of palladium transferred. Since December 1, 2014, the LME has been responsible for the administration of the electronic palladium bullion price fixing system (“LMEbullion”) that replicates electronically the manual London palladium fix processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”) as well as providing electronic market clearing processes for palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London palladium fix processes, establishes and publishes fixed prices for troy ounces of palladium twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the LME AM Fix) and 2:00 p.m. London time (the LME PM Fix). Prior to December 1, 2014, the Trust utilized the London PM Fix as its benchmark for valuation purposes. The London PM Fix for palladium was the price of an ounce of palladium as set by four fixing members of the London Platinum and Palladium Market (“LPPM”) at approximately 2:00 p.m. , London time, on each working day and was widely accepted among palladium market participants. The London PM Fix was discontinued on November 30, 2014. Once the value of palladium has been determined, the Net Asset Value (the “NAV”) is computed by the Trustee by deducting all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the palladium and all other assets held by the Trust. The Trust recognizes changes in fair value of the investment in palladium as changes in unrealized gains or losses on investment in palladium through the Statement of Operations. The per Share amount of palladium exchanged for a purchase or redemption is calculated daily by the Trustee, using the LME 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. Valuation of Palladium (continued) Fair Value Hierarchy Generally accepted accounting principles establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows: – Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access. – Level 2. Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data. – Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The investment in palladium is classified as a level 2 asset, as the Trust’s investment in palladium is calculated using primary market pricing sources supported by observable, verifiable inputs. The categorization of the Trust’s assets is as shown below: (Amounts in 000's of US$) December 31, 2018 December 31, 2017 Level 2 Investment in palladium $ 185,555 $ 241,679 There were no re-allocations or transfers between levels during the years ended December 31, 2018 and 2017 . 2.3 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, for all orders accepted prior to September 5, 2017, ownership of the palladium was transferred within three business days of the trade date, and for all orders accepted on or after September 5, 2017, ownership of the palladium is transferred within two business days of the trade date. 2.4. 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. Effective as of September 5, 2017, the typical settlement period for Shares is two business days. Prior to September 5, 2017, the typical settlement period was 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. As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as Net Assets. Changes in Shares are presented in the Statement of Changes in Net Assets. 2.5. Income Taxes The Trust is classified as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself will not be subject to US 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 FASB ASC 740-10, Income Taxes . The Sponsor has evaluated the application of ASC 740-10 to the Trust, to determine whether or not there are uncertain tax positions in its major jurisdictions that require financial statement recognition. Based on this evaluation, the Sponsor has determined the Trust’s major jurisdictions to be where it is organized and where bullion is held. No uncertain tax positions have been identified. 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, 2018 and 2017 are set out below: Year Year Ended Ended (Amounts in 000's of US$, except for ounces data) December 31, 2018 December 31, 2017 Ounces of palladium Opening balance 228,863.1 263,819.3 Creations 38,014.7 43,021.8 Redemptions (118,869.0) (76,489.4) Transfers of palladium to pay expenses (1,092.9) (1,488.6) Closing balance 146,915.9 228,863.1 Investment in palladium Opening balance $ 241,679 $ 178,342 Creations 42,111 37,402 Redemptions (114,467) (64,629) Realized gain on palladium distributed for the redemption of Shares 30,150 14,337 Transfers of palladium to pay expenses (1,108) (1,244) Realized gain on palladium transferred to pay expenses 340 266 Change in unrealized (loss) / gain on investment in palladium (13,150) 77,205 Closing balance $ 185,555 $ 241,679 2.7. Expenses / Realized Gains / Losses 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. 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, 2018 the Sponsor’s Fee was $ 1,073,755 ( December 31, 2017 : $ 1,278,403 ; December 31, 2016 : $1,099,935 ). At December 31, 2018 , the fees payable to the Sponsor were $ 89,688 ( December 31, 2017 : $ 124,409 ). 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. Other than the Sponsor’s Fee, the Trust had no expenses during the years ended December 31, 2018 and 2017 . Unless otherwise directed by the Sponsor, when selling palladium the Trustee will endeavor to sell at the price established by the LME 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 LME 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 cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. Realized gains or losses result from the transfer of palladium for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and cost of palladium transferred. 2.8 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 requiring adjustment to or disclosure in the f inancial statements were identified. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
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 and demand, 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. Sales of existing stockpiles of palladium have been a key source of supply 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, 2018 | |
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, willful malfeasance 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 Polici_2
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Basis Of Accounting | 2.1. Basis of Accounting The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies , and has concluded that for reporting purposes, the Trust is classified as an Investment Company. 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. |
Valuation Of Palladium | 2.2. Valuation of Palladium The Trust follows the provisions of FASB ASC 820, Fair Value Measurements (“ASC 820”). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. Palladium may also be held by UBS AG, or any other firm selected by the Custodian to hold the Trust’s palladium in the Trust’s allocated account in the firm’s Zurich, Switzerland vault premises on a segregated basis and whose appointment has been approved by the Sponsor (the “Zurich Sub-Custodian”). Palladium is recorded at fair value. The cost of palladium is determined according to the average cost method and the fair value is based on the afternoon session of the twice daily fix of an ounce of palladium administered by the London Metal Exchange (“LME”) (the “LME PM Fix”). Realized gains and losses on transfers of palladium, or palladium distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and cost of palladium transferred. Since December 1, 2014, the LME has been responsible for the administration of the electronic palladium bullion price fixing system (“LMEbullion”) that replicates electronically the manual London palladium fix processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”) as well as providing electronic market clearing processes for palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London palladium fix processes, establishes and publishes fixed prices for troy ounces of palladium twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the LME AM Fix) and 2:00 p.m. London time (the LME PM Fix). Prior to December 1, 2014, the Trust utilized the London PM Fix as its benchmark for valuation purposes. The London PM Fix for palladium was the price of an ounce of palladium as set by four fixing members of the London Platinum and Palladium Market (“LPPM”) at approximately 2:00 p.m. , London time, on each working day and was widely accepted among palladium market participants. The London PM Fix was discontinued on November 30, 2014. Once the value of palladium has been determined, the Net Asset Value (the “NAV”) is computed by the Trustee by deducting all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the palladium and all other assets held by the Trust. The Trust recognizes changes in fair value of the investment in palladium as changes in unrealized gains or losses on investment in palladium through the Statement of Operations. The per Share amount of palladium exchanged for a purchase or redemption is calculated daily by the Trustee, using the LME 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. Valuation of Palladium (continued) Fair Value Hierarchy Generally accepted accounting principles establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows: – Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access. – Level 2. Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data. – Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The investment in palladium is classified as a level 2 asset, as the Trust’s investment in palladium is calculated using primary market pricing sources supported by observable, verifiable inputs. The categorization of the Trust’s assets is as shown below: (Amounts in 000's of US$) December 31, 2018 December 31, 2017 Level 2 Investment in palladium $ 185,555 $ 241,679 There were no re-allocations or transfers between levels during the years ended December 31, 2018 and 2017 . |
Palladium Receivable Or Payable | 2.3 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, for all orders accepted prior to September 5, 2017, ownership of the palladium was transferred within three business days of the trade date, and for all orders accepted on or after September 5, 2017, ownership of the palladium is transferred within two business days of the trade date. |
Creations And Redemptions Of Shares | 2.4. 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. Effective as of September 5, 2017, the typical settlement period for Shares is two business days. Prior to September 5, 2017, the typical settlement period was 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. As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as Net Assets. Changes in Shares are presented in the Statement of Changes in Net Assets. |
Income Taxes | 2.5. Income Taxes The Trust is classified as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself will not be subject to US 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 FASB ASC 740-10, Income Taxes . The Sponsor has evaluated the application of ASC 740-10 to the Trust, to determine whether or not there are uncertain tax positions in its major jurisdictions that require financial statement recognition. Based on this evaluation, the Sponsor has determined the Trust’s major jurisdictions to be where it is organized and where bullion is held. No uncertain tax positions have been identified. 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, 2018 and 2017 are set out below: Year Year Ended Ended (Amounts in 000's of US$, except for ounces data) December 31, 2018 December 31, 2017 Ounces of palladium Opening balance 228,863.1 263,819.3 Creations 38,014.7 43,021.8 Redemptions (118,869.0) (76,489.4) Transfers of palladium to pay expenses (1,092.9) (1,488.6) Closing balance 146,915.9 228,863.1 Investment in palladium Opening balance $ 241,679 $ 178,342 Creations 42,111 37,402 Redemptions (114,467) (64,629) Realized gain on palladium distributed for the redemption of Shares 30,150 14,337 Transfers of palladium to pay expenses (1,108) (1,244) Realized gain on palladium transferred to pay expenses 340 266 Change in unrealized (loss) / gain on investment in palladium (13,150) 77,205 Closing balance $ 185,555 $ 241,679 |
Expenses / Realized Gains / Losses | 2.7. Expenses / Realized Gains / Losses 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. 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, 2018 the Sponsor’s Fee was $ 1,073,755 ( December 31, 2017 : $ 1,278,403 ; December 31, 2016 : $1,099,935 ). At December 31, 2018 , the fees payable to the Sponsor were $ 89,688 ( December 31, 2017 : $ 124,409 ). 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. Other than the Sponsor’s Fee, the Trust had no expenses during the years ended December 31, 2018 and 2017 . Unless otherwise directed by the Sponsor, when selling palladium the Trustee will endeavor to sell at the price established by the LME 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 LME 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 cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. Realized gains or losses result from the transfer of palladium for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and cost of palladium transferred. |
Subsequent Events | 2.8 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 requiring adjustment to or disclosure in the f inancial statements were identified. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Categorization Of The Trust's Assets | (Amounts in 000's of US$) December 31, 2018 December 31, 2017 Level 2 Investment in palladium $ 185,555 $ 241,679 |
Schedule Of Investment In Palladium | Year Year Ended Ended (Amounts in 000's of US$, except for ounces data) December 31, 2018 December 31, 2017 Ounces of palladium Opening balance 228,863.1 263,819.3 Creations 38,014.7 43,021.8 Redemptions (118,869.0) (76,489.4) Transfers of palladium to pay expenses (1,092.9) (1,488.6) Closing balance 146,915.9 228,863.1 Investment in palladium Opening balance $ 241,679 $ 178,342 Creations 42,111 37,402 Redemptions (114,467) (64,629) Realized gain on palladium distributed for the redemption of Shares 30,150 14,337 Transfers of palladium to pay expenses (1,108) (1,244) Realized gain on palladium transferred to pay expenses 340 266 Change in unrealized (loss) / gain on investment in palladium (13,150) 77,205 Closing balance $ 185,555 $ 241,679 |
Organization (Details)
Organization (Details) | 9 Months Ended |
Sep. 30, 2018shares | |
Organization [Abstract] | |
Minimum block of shares issued redeemed against palladium | 50,000 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |||
Basket of shares | 50,000 | ||
Fair value transfers | $ 0 | $ 0 | |
Reserve for uncertain tax positions | $ 0 | $ 0 | |
Annualized rate of Sponsors Fee | 0.60% | 0.60% | 0.60% |
Sponsor Fees | $ 1,073,755 | $ 1,278,403 | $ 1,099,935 |
Fees payable to Sponsor | 89,688 | 124,409 | |
All other expenses | $ 0 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies (Categorization Of The Trust's Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in palladium | $ 185,555 | $ 241,679 |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule Of Investment In Palladium) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)oz | Dec. 31, 2017USD ($)oz | Dec. 31, 2016USD ($)oz | |
Significant Accounting Policies [Abstract] | |||
Opening balance (in Ounces) | oz | 228,863.1 | 263,819.3 | |
Creations (in Ounces) | oz | 38,014.7 | 43,021.8 | |
Redemptions (in Ounces) | oz | (118,869) | (76,489.4) | |
Transfers of palladium to pay expenses (in Ounces) | oz | (1,092.9) | (1,488.6) | |
Closing balance (in Ounces) | oz | 146,915.9 | 228,863.1 | 263,819.3 |
Investment in palladium, fair value, Opening balance | $ 241,679 | $ 178,342 | |
Creations | 42,111 | 37,402 | |
Redemptions | (114,467) | (64,629) | |
Realized gain on palladium distributed for the redemption of Shares | 30,150 | 14,337 | $ (1,837) |
Transfers of palladiuim to pay expenses | (1,108) | (1,244) | |
Realized gain on palladium transferred to pay expenses | 340 | 266 | (82) |
Change in unrealized (loss) /gain on investment in palladium | (13,150) | 77,205 | 43,045 |
Investment in palladium, fair value, closing balance | $ 185,555 | $ 241,679 | $ 178,342 |