Tracking error - is measured as the difference in
return from holding spot gold and the return from holding GBS.
Measuring tracking error - The gold price return
has been measured using the London AM Fix and the GOLD return
has been measured using the ASX Close Price. These two prices,
the London AM Fix and the GOLD Close Price, occur at slightly
different times which may cause additional “tracking
error” due to the small timing difference. The GOLD
Close Price will also reflect the Monthly Gold Sales Charge
of 0.4% p.a.
Indicative Value
Gold Entitlement
Each Gold Bullion Security ("GBS")
is equivalent to approximately 1/10th of one fine troy ounce
of gold bullion. The Indicative Value of GBS is directly
related to the gold entitlement per GBS.
Management Fee
The management
fee of 0.40% p.a. is accrued daily and will
be deducted from the gold backing each GBS and held on trust
for the GBS investors. As a result, the value of each GBS
and the entitlement to gold per GBS will fall each day by
the fee (assuming no change in the gold price). The fee is
deducted by the Gold Trustee selling gold at the end of the
month.
Indicative Value
As a result, the Net Asset Value (NAV) at any time will
be equal to the gold entitlement per GBS multiplied by the
spot price of gold in the investor's own currency.
1 July 2005
NAV = 99.5200% x 0.10 x
1 ounce gold x spot gold price
And So on ….
NAV = Gold Entitlement x
0.10 x 1 ounce gold x spot gold price
