Franklin Templeton Holdings Trust Reports Growth in Gold ETF Assets and Share Performance

Franklin Templeton Holdings Trust has reported significant financial developments in its latest 10-Q filing for the period ending December 31, 2024. The Trust's primary series, the Franklin Responsibly Sourced Gold ETF, saw its net assets increase to approximately $107.97 million, up from $62.10 million as of March 31, 2024. This growth was primarily driven by a substantial rise in the investment in gold, which reached $107.99 million, compared to $62.11 million in the previous period. The net asset value (NAV) per share also increased to $34.83 from $29.57, reflecting a strong performance in the gold market.

In terms of operational metrics, the Trust issued 1.4 million shares during the quarter, bringing the total shares outstanding to 3.1 million. This is a notable increase from 2.1 million shares at the end of the previous fiscal period. The increase in shares was accompanied by a net capital share transaction of approximately $23.89 million, which offset a net decrease in net assets resulting from operations of about $1.90 million. The Trust's investment strategy focuses on responsibly sourced gold, and it continues to hold a significant amount of gold bullion, with 41,360.171 ounces valued at $107.99 million at the end of the reporting period.

The financial performance for the three months ending December 31, 2024, showed a net investment loss of $38,441, compared to a loss of $24,388 in the same period the previous year. The net realized and unrealized loss on investment in gold was approximately $(1.87) million, influenced by a decrease in gold prices from $2,629.95 per ounce to $2,610.85 per ounce. This decline in gold prices contributed to a total return of -0.77% for the quarter, contrasting with a 10.20% return in the same quarter of the previous year.

Looking ahead, the Trust's management remains focused on maintaining its investment strategy in gold while navigating market fluctuations. The Trust has indicated that it does not foresee any significant changes in its liquidity needs or operational structure. The Sponsor's fee, which is 0.15% of the NAV, continues to be the primary recurring expense, and the Trust plans to manage its gold sales carefully to cover these costs. The Trust's outlook remains cautiously optimistic, with a commitment to responsibly sourced gold investments and a focus on shareholder value.