0001387131-22-005874.txt : 20220509 0001387131-22-005874.hdr.sgml : 20220509 20220509171907 ACCESSION NUMBER: 0001387131-22-005874 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 35 CONFORMED PERIOD OF REPORT: 20220331 FILED AS OF DATE: 20220509 DATE AS OF CHANGE: 20220509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: abrdn Palladium ETF Trust CENTRAL INDEX KEY: 0001459862 STANDARD INDUSTRIAL CLASSIFICATION: [6221] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-34589 FILM NUMBER: 22906229 BUSINESS ADDRESS: STREET 1: 712 FIFTH AVENUE STREET 2: 49TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212-446-2020 MAIL ADDRESS: STREET 1: 712 FIFTH AVENUE STREET 2: 49TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: Aberdeen Standard Palladium ETF Trust DATE OF NAME CHANGE: 20181001 FORMER COMPANY: FORMER CONFORMED NAME: ETFS PALLADIUM TRUST DATE OF NAME CHANGE: 20090326 10-Q 1 pall-10q_033122.htm QUARTERLY REPORT
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION  

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  

For the Quarterly Period Ended March 31, 2022 

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  

For the Transition Period from _____________ to _____________  

 

Commission File Number: 001-34589 

 

 

 

abrdn Palladium ETF Trust 

(Exact name of registrant as specified in its charter)

 

New York   26-4733157

(State or other jurisdiction of incorporation or 

organization)

 

  (I.R.S. Employer Identification No.)
c/o abrdn ETFs Sponsor LLC    

712 Fifth Avenue, 49th Floor 

New York, NY 

(Address of principal executive offices) 

 

10019 

(Zip Code)

 

(844) 383-7289  

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each
exchange on which
registered
abrdn Physical Palladium Shares ETF   PALL   NYSE Arca

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer   Accelerated Filer
Non-Accelerated Filer   Smaller Reporting Company
      Emerging Growth Company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes    ☒ No

 

As of May 5, 2022, abrdn Palladium ETF Trust had 2,050,000 abrdn Physical Palladium Shares ETF outstanding.

 

 

 

 

 

 

abrdn Palladium ETF Trust

 

FORM 10-Q

 

FOR THE QUARTER ENDED MARCH 31, 2022

 

INDEX

 

PART I. FINANCIAL INFORMATION  
   
Item 1. Financial Statements 1
   
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 12
   
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
   
Item 4. Controls and Procedures 14
   
PART II. OTHER INFORMATION  
   
Item 1. Legal Proceedings 15
   
Item 1A. Risk Factors 15
   
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 15
   
Item 3. Defaults Upon Senior Securities 15
   
Item 4. Mine Safety Disclosures 15
   
Item 5. Other Information 15
   
Item 6. Exhibits 16
     
SIGNATURES   17

 

 

 

 

abrdn Palladium ETF Trust

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Statements of Assets and Liabilities 

At March 31, 2022 (Unaudited) and December 31, 2021

 

   March 31, 2022   December 31, 2021 
(Amounts in 000's of US$, except for Share and per Share data)          
ASSETS          
Investment in palladium (cost: March 31, 2022: $415,255; December 31, 2021: $334,434)  $461,951   $358,161 
Total assets   461,951    358,161 
           
LIABILITIES          
Fees payable to Sponsor   228    190 
Palladium payable   10,494     
Total liabilities   10,722    190 
           
NET ASSETS(1)  $451,229   $357,971 

 

(1) Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2022 were 2,150,000 and at December 31, 2021 were 1,950,000. Net asset values per Share at March 31, 2022 and December 31, 2021 were $209.87 and $183.58, respectively.

 

See Notes to the Financial Statements

 

1 

 

 

abrdn Palladium ETF Trust

 

Schedules of Investments

At March 31, 2022 (Unaudited) and December 31, 2021

 

   March 31, 2022 
Description  oz   Cost   Fair Value   % of Net Assets 
Investment in palladium (in 000's of US$, except for oz and percentage data)
Palladium   204,493.3   $415,255   $461,951    102.37%
Total investment in palladium   204,493.3   $415,255   $461,951    102.37%
Less liabilities             10,722    (2.37)%
Net Assets            $451,229    100.00%

 

   December 31, 2021 
Description  oz   Cost   Fair Value   % of Net Assets 
Investment in palladium (in 000's of US$, except for oz and percentage data)
Palladium   181,531.1   $334,434   $358,161    100.05%
Total investment in palladium   181,531.1   $334,434   $358,161    100.05%
Less liabilities             (190)   (0.05)%
Net Assets            $357,971    100.00%

 

See Notes to the Financial Statements

 

2 

 

 

abrdn Palladium ETF Trust

 

Statements of Operations (Unaudited) 

For the three months ended March 31, 2022 and 2021

 

  

Three Months
Ended
March 31, 2022 

  

Three Months
Ended
March 31, 2021 

 
(Amounts in 000's of US$, except for Share and per Share data)          
EXPENSES          
Sponsor's Fee  $594   $563 
Total expenses   594    563 
           
Net investment loss   (594)   (563)
           
REALIZED AND UNREALIZED GAINS / (LOSSES)          
Realized gain on palladium transferred to pay expenses   65    199 
Realized gain on palladium distributed for the redemption of Shares   4,305    9,510 
Change in unrealized gain on investment in palladium   21,908    34,733 
Change in unrealized gain on unsettled creations or redemptions   1,061     
Total gain on investment in palladium   27,339    44,442 
           
Change in net assets from operations  $26,745   $43,879 
           
Net increase / (decrease) in net assets per Share  $13.67   $26.57 
           
Weighted average number of Shares   1,956,667    1,651,389 

 

See Notes to the Financial Statements

 

3 

 

 

abrdn Palladium ETF Trust

 

Statements of Changes in Net Assets (Unaudited) 

For the three months ended March 31, 2022 and 2021

 

   Three Months Ended March 31, 2022 
(Amounts in 000's of US$, except for Share data)  Shares   Amount 
Opening balance at January 1, 2022   1,950,000   $357,971 
Net investment loss        (594)
Realized gain on investment in palladium        4,370 
Change in unrealized gain on investment in palladium        21,908 
Change in unrealized gain on unsettled creations or redemptions        1,061 
Creations   425,000    112,112 
Redemptions   (225,000)   (45,599)
Closing balance at March 31, 2022   2,150,000   $451,229 

 

   Three Months Ended March 31, 2021 
(Amounts in 000's of US$, except for Share data)  Shares   Amount 
Opening balance at January 1, 2021   1,625,000   $356,238 
Net investment loss        (563)
Realized gain on investment in palladium        9,709 
Change in unrealized gain on investment in palladium        34,733 
Creations   125,000    28,524 
Redemptions   (100,000)   (23,814)
Closing balance at March 31, 2021   1,650,000   $404,827 

 

See Notes to the Financial Statements

 

4 

 

 

abrdn Palladium ETF Trust

 

Financial Highlights (Unaudited) 

For the three months ended March 31, 2022 and 2021 

 

   Three Months
Ended
March 31, 2022
   Three Months
Ended
March 31, 2021
 
Per Share Performance (for a Share outstanding throughout the entire period)          
Net asset value per Share at beginning of period  $183.58   $219.22 
Income from investment operations:          
Net investment loss   (0.30)   (0.34)
Total realized and unrealized gains or losses on investment in palladium   26.59    26.47 
Change in net assets from operations   26.29    26.13 
           
Net asset value per Share at end of period  $209.87   $245.35 
           
Weighted average number of Shares   1,956,667    1,651,389 
           
Expense ratio(1)   0.60%   0.60%
           
Net investment loss ratio(1)   (0.60)%   (0.60)%
           
Total return, net asset value(2)   14.32%   11.92%

 

(1) Annualized for periods less than one year.
(2) Total return is not annualized.

 

See Notes to the Financial Statements

 

5 

 

 

abrdn Palladium ETF Trust

 

Notes to the Financial Statements (Unaudited)

  

1.    Organization

 

The abrdn Palladium ETF Trust (known as Aberdeen Standard Palladium ETF Trust prior to March 31, 2022) (the “Trust”) is a common law trust formed on December 30, 2009 under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by abrdn ETFs Sponsor LLC (known as Aberdeen Standard Investments ETFs Sponsor LLC prior to March 1, 2022) (the “Sponsor”) and The Bank of New York Mellon as Trustee (the “Trustee”). The Trust holds palladium bullion and issues abrdn Physical Palladium Shares ETF (known as Aberdeen Standard Physical Palladium Shares ETF prior to March 31, 2022) (“Shares”) in minimum blocks of 25,000 Shares (also referred to as “Baskets”) in exchange for deposits of palladium and distributes palladium in connection with the 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 and a wholly-owned subsidiary of abrdn Inc. (known as Aberdeen Standard Investments Inc. prior to January 1, 2022). abrdn Inc. is a wholly-owned indirect subsidiary of abrdn (formerly known as 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. The fiscal year end for the Trust is December 31.

 

The accompanying financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q. In the opinion of the Trust’s management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three months ended March 31, 2022 and for all periods presented have been made.

 

These financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the operating results for the full year.

 

2.    Significant Accounting Policies

 

The preparation of financial statements in accordance with U.S. GAAP 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 ASC 820, Fair Value Measurement (“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. 

 

6 

 

 

abrdn Palladium ETF Trust

 

Notes to the Financial Statements (Unaudited)

 

The Trust's palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. The Trust's 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 vault premises on a segregated basis and whose appointment has been approved by the Sponsor. At March 31, 2022, approximately 31.40% of the Trust’s palladium was held by one or more sub-custodians.

 

The Trust's 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 average cost of palladium transferred.

 

The LME is responsible for the administration of the electronic palladium 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”).

 

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.

 

Fair Value Hierarchy

 

ASC 820 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 Trust 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.

 

7 

 

 

abrdn Palladium ETF Trust

 

Notes to the Financial Statements (Unaudited)

 

– Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’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 Trust’s investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.

 

The categorization of the Trust’s assets is as shown below:

 

(Amounts in 000’s of US$) 

March 31, 2022

  

December 31, 2021

 
         
Level 1          
Investment in palladium  $461,951   $358,161 

 

There were no transfers between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.

 

2.3.    Palladium Receivable and 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 palladium is transferred within two business days of the trade date. At March 31, 2022, the Trust had no palladium receivable for the creation of Shares and $10,493,871 of palladium payable for the redemption of Shares. At December 31, 2021, the Trust had no palladium receivable or payable for the creation or redemption 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 25,000 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 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.

 

8 

 

 

abrdn Palladium ETF Trust

 

Notes to the Financial Statements (Unaudited)

 

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 two 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 a redemption, it is considered a sale of palladium for financial statement purposes.

 

The amount of palladium 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 palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium 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 on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium.

 

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 the number of Shares outstanding are presented in the Statement of Changes in Net Assets.

 

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 Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2022 or December 31, 2021.

 

9 

 

 

abrdn Palladium ETF Trust

 

Notes to the Financial Statements (Unaudited)

 

2.6.    Investment in Palladium

 

Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:

 

   Three Months
Ended
March 31, 2022
   Three Months
Ended
March 31, 2021
 
(Amounts in 000’s of US$, except for ounces data)          
Ounces of palladium          
Opening balance   181,531.1    152,187.5 
Creations   39,500.4    11,688.4 
Redemptions   (16,273.3)   (9,348.2)
Transfers of palladium to pay expenses   (264.9)   (227.4)
Closing balance   204,493.3    154,300.3 
           
Investment in palladium          
Opening balance  $358,161   $356,424 
Creations   112,112    28,524 
Redemptions   (35,105)   (23,814)
Realized gain on palladium distributed for the redemption of Shares   4,305    9,510 
Transfers of palladium to pay expenses   (556)   (537)
Realized gain on palladium transferred to pay expenses   65    199 
Change in unrealized gain on investment in palladium   21,908    34,733 
Change in unrealized gain on unsettled creations or redemptions   1,061     
Closing balance  $461,951   $405,039 

 

 

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 the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal to 0.60% of the adjusted daily 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 up to $100,000 per annum in legal expenses.

 

For the three months ended March 31, 2022 and 2021, the Sponsor's Fee was $594,312 and $562,747, respectively.

 

At March 31, 2022 and at December 31, 2021, the fees payable to the Sponsor were $227,739 and $189,455, respectively.

 

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 three months ended March 31, 2022 and 2021.

 

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 average cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.

 

10 

 

 

abrdn Palladium ETF Trust

 

Notes to the Financial Statements (Unaudited)

 

Realized gains and 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 average 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 impacting the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified. 

 

 

3.    Related Parties

 

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. In addition, the Trustee and the Custodian and their affiliates may from time to time purchase or sell palladium directly, for their own account, as agent for their customers and for accounts over which they exercise investment discretion. The Trustee’s and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust. 

 

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 of 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, investment demand, and sales of existing stockpiles of palladium, which 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. 

 

5.    Indemnification

 

Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith, willful misconduct or willful malfeasance 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.

 

11 

 

 

abrdn Palladium ETF Trust

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

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 December 30, 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 palladium and is expected to issue Baskets in exchange for deposits of palladium and to distribute palladium 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 palladium, 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 palladium.

 

The Trust issues and redeems Shares only with Authorized Participants in exchange for palladium and only in aggregations of 25,000 Shares or integral multiples thereof. 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 “PALL”.

 

Valuation of Palladium 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 palladium held by the Trust and determines the NAV of the Trust.

 

At the Evaluation Time, the Trustee values the Trust’s palladium on the basis of that day’s LME PM Fix or, if no LME PM Fix is made on such day, the next most recent LME PM Fix determined prior to the Evaluation Time will be used, unless the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event the Sponsor determines that the LME PM Fix or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust’s palladium is not an appropriate basis for evaluation of the Trust’s palladium, it shall identify an alternative basis for such evaluation to be employed by the Trustee. Neither the Trustee nor the Sponsor shall be liable to any person for the determination that the LME PM Fix or such other publicly available price is not appropriate as a basis for evaluation of the Trust’s palladium or for any determination as to the alternative basis for such evaluation provided that such determination is made in good faith.

 

Once the value of the palladium has been determined, the Trustee subtracts all estimated accrued but unpaid fees (other than the fees accruing for such day on which the valuation takes place that are computed by reference to the value of the Trust or its assets), expenses and other liabilities of the Trust from the total value of the palladium and all other assets of the Trust (other than any amounts credited to the Trust’s reserve account, if established). 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 

 

 

All fees accruing for the day on which the valuation takes place that are computed by reference to the value of the Trust or its assets are calculated using the ANAV calculated for such day. The Trustee subtracts from the ANAV the amount of accrued fees so computed for such day and the resulting figure is the NAV of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of the Shares outstanding as of the close of trading on the NYSE Arca (which includes the net number of any Shares created or redeemed on such evaluation day).

 

The Trustee’s estimation of accrued but unpaid fees, expenses and liabilities is conclusive upon all persons interested in the Trust and no revision or correction in any computation made under the Trust Agreement will be required by reason of any difference in amounts estimated from those actually paid.

 

The NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the palladium 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 Quarter Ended March 31, 2022

 

The Trust’s NAV increased from $357,971,468 at December 31, 2021 to $451,228,945 at March 31, 2022, a 26.05% increase for the quarter. The increase in the Trust’s NAV resulted from an increase in the price per ounce of palladium, which rose 14.50% from $1,973.00 at December 31, 2021 to $2,259.00 at March 31, 2022, and an increase in outstanding Shares, which rose from 1,950,000 Shares at December 31, 2021 to 2,150,000 Shares at March 31, 2022, as a result of 425,000 Shares (17 Baskets) being created and 225,000 Shares (9 Baskets) being redeemed during the quarter.

 

The NAV per Share increased 14.32% from $183.58 at December 31, 2021 to $209.87 at March 31, 2022. The Trust’s NAV per Share rose slightly less than the price per ounce of palladium on a percentage basis due to the Sponsor’s Fee, which was $594,312 for the quarter, or 0.60% of the Trust’s ANAV on an annualized basis.

 

The NAV per Share of $280.22 at March 7, 2022 was the highest during the quarter, compared with a low of $172.49 at January 6, 2022.

 

The increase in net assets from operations for the quarter ended March 31, 2022 was $26,745,073, resulting from a realized gain of $65,380 on the transfer of palladium to pay expenses, a realized gain of $4,305,376 on palladium distributed for the redemption of Shares, a change in unrealized gain on investment in palladium of $21,907,759 and a change in unrealized gain on unsettled redemptions of $1,060,870, offset by the Sponsor’s Fee of $594,312. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2022.

 

The Quarter Ended March 31, 2021

 

The Trust’s NAV increased from $356,238,300 at December 31, 2020 to $404,826,709 at March 31, 2021, a 13.64% increase for the quarter. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of palladium, which rose 12.08%from $2,342.00 at December 31, 2020 to $2,625.00 at March 31, 2021 and an increase in outstanding Shares, which rose from 1,625,000 Shares at December 31, 2020 to 1,650,000 Shares at March 31, 2021, as a result of 125,000 Shares (5 Baskets) being created and 100,000 Shares (4 Baskets) being redeemed.

 

The NAV per Share increased 11.92% from $219.22 at December 31, 2020 to $245.35 at March 31, 2021. The Trust’s NAV per Share rose slightly less than the price per ounce of palladium on a percentage basis due to the Sponsor’s Fee, which was $562,747 for the quarter, or 0.60% of the Trust’s ANAV on an annualized basis.

 

The NAV per Share of $250.36 at March 18, 2021 was the highest during the quarter, compared with a low of $211.24 at February 4, 2021.

 

13 

 

 

The increase in net assets from operations for the quarter ended March 31, 2021 was $43,878,521, resulting from a realized gain of $198,752 on the transfer of palladium to pay expenses, a realized gain of $9,509,812 on palladium distributed for the redemption of Shares, and a change in unrealized gain on investment in palladium of $34,732,704, and the Sponsor’s Fee of $562,747. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2021.

 

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 palladium as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell palladium to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of palladium to the Sponsor. At March 31, 2022, 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 accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Refer to Note 2 to the Financial Statements for further information on accounting policies.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk 

Not applicable.

 

Item 4. Controls and Procedures 

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the audit committee, as appropriate, to allow timely decisions regarding required disclosure.

 

Under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rules 13a-15(e) and 15d-15(e). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of March 31, 2022, the Trust’s disclosure controls and procedures were effective.

 

There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.

 

14 

 

 

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings 

None.

 

Item 1A. Risk Factors  

Except for the risk factor set forth below, there have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

 

Risks Related to Palladium

 

On April 8, 2022, in response to Russia’s invasion of Ukraine, LPPM suspended two government-owned Russian platinum and palladium refiners. New productions by such refiners will no longer be accepted as “Good Delivery” by the LPPM until further notice. The bars and sponges these refiners previously produced will still be considered Good Delivery, consistent with past suspensions of refiners by the LPPM. Fewer suppliers to the LPPM may lead to a lower supply of Good Delivery palladium and further volatility in the price of palladium.

 

General Risks

 

Armed conflict can result in significant disruptions to the commodities markets and could adversely affect the price of the Shares.

 

On February 24, 2022, Russia commenced an invasion of Ukraine. In response to such conflict or for other reasons, governments have imposed and may impose additional economic sanctions against Russia, certain other countries, entities and/or individuals. Economic sanctions and other similar governmental actions could, among other things, prevent or prohibit certain entities or individuals from participating in the bullion and commodities markets or otherwise impact the functioning of those markets. Such actions could affect the value of palladium held by the Fund. Sanctions could also result in countermeasures or retaliatory actions, which may impact the value of palladium. Although it is not possible to predict the impact that any sanctions and retaliatory actions may have on the Fund, such events could significantly harm the value of the Fund's shares.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 

Item 2(a). None. 

Item 2(b). Not applicable. 

Item 2(c). For the three months ended March 31, 2022: 

17 Baskets were created. 

9 Basket were redeemed.

 

Period  

Total Baskets 

Redeemed 

  Total Shares
Redeemed
  Average ounces
of palladium
per Share
January 2022   5   125,000   0.093
February 2022   -   -   -
March 2022   4   100,000   0.093
    9   225,000   0.093

 

Item 3. Defaults Upon Senior Securities 

None.

 

Item 4. Mine Safety Disclosures 

Not applicable.

 

Item 5. Other Information 

None.

  

 

15 

 

 

Item 6. Exhibits 

   
31.1 Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 The following financial statements from the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL: (i) Statements of Assets and Liabilities, (ii) Statements of Operations, (iii) Statements of Changes in Net Assets, and (iv) Notes to the Financial Statements.
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Document
101.DEF Inline XBRL Taxonomy Extension Definitions Document
101.LAB Inline XBRL Taxonomy Extension Labels Document
101.PRE Inline XBRL Taxonomy Extension Presentation Document
104 The cover page from the Trust’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL (included as Exhibit 101).

 

16 

 

 

abrdn Palladium ETF Trust

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities thereunto duly authorized.

 

  abrdn ETFs Sponsor LLC
     
Date: May 9, 2022 /s/ Steven Dunn
  Steven Dunn *
  President and Chief Executive Officer
  (Principal Executive Officer)
   
Date: May 9, 2022 /s/ Andrea Melia
  Andrea Melia *
  Chief Financial Officer and Treasurer
  (Principal Financial Officer and Principal Accounting Officer)

 

* The Registrant is a trust and the persons are signing in their capacities as officers of abrdn ETFs Sponsor LLC, the Sponsor of the Registrant.

 

17 

 

EX-31.1 2 ex31-1.htm CHIEF EXECUTIVE OFFICER'S CERTIFICATE

 

abrdn Palladium ETF Trust 10-Q

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven Dunn, certify that:

1. I have reviewed this Report on Form 10-Q of abrdn Palladium ETF Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

   
Date: May 9, 2022 /s/ Steven Dunn
  Steven Dunn**
  President and Chief Executive Officer
  (Principal Executive Officer)

 

*

The originally executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request.

   
** The Registrant is a trust and Mr. Dunn is signing in his capacity as an officer of abrdn ETFs Sponsor LLC, the Sponsor of the Registrant.

 

 

  

EX-31.2 3 ex31-2.htm CHIEF FINANCIAL OFFICER'S CERTIFICATE
 

abrdn Palladium ETF Trust 10-Q

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Andrea Melia, certify that:

1. I have reviewed this Report on Form 10-Q of abrdn Palladium ETF Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

   
Date: May 9, 2022 /s/ Andrea Melia*
  Andrea Melia**
  Chief Financial Officer and Treasurer
  (Principal Financial Officer and Principal Accounting Officer)

 

*

The originally executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request.

   
** The Registrant is a trust and Ms. Melia is signing in her capacity as an officer of abrdn ETFs Sponsor LLC, the Sponsor of the Registrant.

 

  

EX-32.1 4 ex32-1.htm CHIEF EXECUTIVE OFFICER'S CERTIFICATE
 

abrdn Palladium ETF Trust 10-Q

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of abrdn Palladium ETF Trust (the “Registrant”) on Form 10-Q for the quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

     
Date: May 9, 2022 /s/ Steven Dunn*  
  Steven Dunn**  
  President and Chief Executive Officer  
  (Principal Executive Officer)  

 

*The originally executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request.
**The Registrant is a trust and Mr. Dunn is signing in his capacity as an officer of abrdn ETFs Sponsor LLC, the Sponsor of the Registrant.

 

  

EX-32.2 5 ex32-2.htm CHIEF FINANCIAL OFFICER'S CERTIFICATE
 

abrdn Palladium ETF Trust 10-Q

Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of abrdn Palladium ETF Trust (the “Registrant”) on Form 10-Q for the quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

     
Date: May 9, 2022 /s/ Andrea Melia*  
  Andrea Melia**  
  Chief Financial Officer and Treasurer  
  (Principal Financial Officer and Principal Accounting Officer)  

 

*The originally executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request.
**The Registrant is a trust and Ms. Melia is signing in her capacity as an officer of abrdn ETFs Sponsor LLC, the Sponsor of the Registrant.

 

  

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December 31, 2021: $334,434) Total assets LIABILITIES Fees payable to Sponsor Palladium payable Total liabilities NET ASSETS Investment Company [Abstract] Investment in palladium at cost Common stock, shares authorized Common stock, no par value (in dollars per share) Common stock, shares issued Common stock, shares outstanding Net asset value per share (in dollars per share) Statement [Table] Statement [Line Items] Investment in palladium Cost Fair Value % of Net Assets Less liabilities Less liabilities, % of Net Assets Net Assets Net Assets, % of Net Assets Income Statement [Abstract] EXPENSES Sponsor's Fee Total expenses Net investment loss REALIZED AND UNREALIZED GAINS / (LOSSES) Realized gain on palladium transferred to pay expenses Realized gain on palladium distributed for the redemption of Shares Change in unrealized gain on investment in palladium Change in unrealized gain on unsettled creations or redemptions Total gain on investment in palladium Change in net assets from operations Net increase / (decrease) in net assets per Share Weighted average number of Shares Statement of Stockholders' Equity [Abstract] Opening balance (in shares) Opening balance Net investment loss Realized gain on investment in palladium Creations (in shares) Creations Redemptions (in shares) Redemptions Closing balance (in shares) Closing balance Financial Highlights Per Share Performance (for a Share outstanding throughout the entire period) Net asset value per Share at beginning of period Income from investment operations: Net investment loss Total realized and unrealized gains or losses on investment in palladium Change in net assets from operations Net asset value per Share at end of period Expense ratio Net investment loss ratio Total return, net asset value Organization, Consolidation and Presentation of Financial Statements [Abstract] Organization Accounting Policies [Abstract] Significant Accounting Policies Related Party Transactions [Abstract] Related Parties Risks and Uncertainties [Abstract] Concentration of Risk Commitments and Contingencies Disclosure [Abstract] Indemnification Basis of Accounting Valuation of Palladium Palladium Receivable and Payable Creations and Redemptions of Shares Income Taxes Investment in Palladium Expenses / Realized Gains / Losses Subsequent Events The categorization of the Trust’s assets is as shown below: Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below: Minimum block of shares issued redeemed against palladium Fair Value, Recurring and Nonrecurring [Table] Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] Investment in palladium Opening balance Creations Redemptions Transfers of palladium to pay expenses Closing balance Opening balance Creations Redemptions Transfers of palladium to pay expenses Closing balance Percentage of palladium held by sub-custodians Palladium receivable Reserve for uncertain tax positions Maximum sponsor fee for legal expenses All other expenses Net investment gain (loss). Realized gain or loss during the period on bullion distributed for the redemption of Shares. Realized gains or losses are calculated on a trade date basis using average cost. Change in unrealized gain (loss) on investment in Bullion. Net realized and unrealized gains and losses on investment in Bullion per share. Change in net assets from operations per share. Annualized rate of sponsor's fee. Annualized net investment income (loss) ratio. The minimum block of shares that can be created or redeemed against bullion deposits or distributions. Disclosure of valuation of bullion policy. Disclosure of bullion receivable and payable policy. Disclosure of creation and redemptions of shares policy. Disclosure of expenses policy. Tabular disclosure of movement in the investment in bullion in the Trust. Ounces of bullion received into the Trust's account in respect of creations. Ounces of bullion paid out of the Trust's account in respect of redemptions. Ounces of bullion transferred to pay Trust's expenses. Amount of creations of bullion in investment. Value of bullion distributed at average cost for the redemption of Shares excluding bullion payable. Cost of Bullion transferred to pay Trust's expenses. Percentage of asset being held by trust. Amount of bullion payable at market value as of the reporting date. Net Assets, Percentage of Net Assets. The net gain or loss in the period on bullion. Total return, at net asset value. Amount of bullion receivable at market value as of the reporting date. Maximum sponsor fee for legal expenses. Net investment income (loss) per share. The amount represents change in unrealized gain (loss) on unsettled creations or redemptions. Assets Liabilities Operating Expenses Total gain / (loss) on investment in palladium Net Income (Loss) Attributable to Parent Shares, Outstanding Stockholders' Equity Attributable to Parent Stock Redeemed or Called During Period, Shares Stock Redeemed or Called During Period, Value Net investment income (loss) per share Change in net assets from operations Investment in Physical Commodities, Fair Value Disclosure Creations (in Ounces) Creations [Default Label] Redemptions [Default Label] Transfers of palladiuim to pay expenses EX-101.PRE 10 pall-20220331_pre.xml XBRL PRESENTATION FILE XML 11 R1.htm IDEA: XBRL DOCUMENT v3.22.1
Cover - shares
3 Months Ended
Mar. 31, 2022
May 05, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2022  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --12-31  
Entity File Number 001-34589  
Entity Registrant Name abrdn Palladium ETF Trust  
Entity Central Index Key 0001459862  
Entity Tax Identification Number 26-4733157  
Entity Incorporation, State or Country Code NY  
Entity Address, Address Line One 712 Fifth Avenue  
Entity Address, Address Line Two 49th Floor  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10019  
City Area Code 844  
Local Phone Number 383-7289  
Title of 12(b) Security abrdn Physical Palladium Shares ETF  
Trading Symbol PALL  
Security Exchange Name NYSEArca  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,050,000
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.22.1
Statements of Assets and Liabilities (Unaudited) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
ASSETS    
Investment in palladium (cost: March 31, 2022: $415,255; December 31, 2021: $334,434) $ 461,951,000 $ 358,161,000
Total assets 461,951,000 358,161,000
LIABILITIES    
Fees payable to Sponsor 227,739 189,455
Palladium payable 10,493,871 0
Total liabilities 10,722,000 190,000
NET ASSETS [1] $ 451,229,000 $ 357,971,000
[1] Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2022 were 2,150,000 and at December 31, 2021 were 1,950,000. Net asset values per Share at March 31, 2022 and December 31, 2021 were $209.87 and $183.58, respectively.
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Statements of Assets and Liabilities (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Investment Company [Abstract]    
Investment in palladium at cost $ 415,255 $ 334,434
Common stock, shares authorized Unlimited Unlimited
Common stock, no par value (in dollars per share) $ 0 $ 0
Common stock, shares issued 2,150,000 1,950,000
Common stock, shares outstanding 2,150,000 1,950,000
Net asset value per share (in dollars per share) $ 209.87 $ 183.58
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.22.1
Schedules of Investments (Unaudited)
$ in Thousands
Mar. 31, 2022
USD ($)
oz
Dec. 31, 2021
USD ($)
oz
Investment in palladium | oz 204,493.3 181,531.1
Cost $ 415,255 $ 334,434
Fair Value $ 461,951 $ 358,161
% of Net Assets 102.37% 100.05%
Less liabilities $ 10,722 $ (190)
Less liabilities, % of Net Assets (2.37%) (0.05%)
Net Assets [1] $ 451,229 $ 357,971
Net Assets, % of Net Assets 100.00% 100.00%
Palladium Ounces    
Investment in palladium | oz 204,493.3 181,531.1
Cost $ 415,255 $ 334,434
Fair Value $ 461,951 $ 358,161
% of Net Assets 102.37% 100.05%
[1] Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2022 were 2,150,000 and at December 31, 2021 were 1,950,000. Net asset values per Share at March 31, 2022 and December 31, 2021 were $209.87 and $183.58, respectively.
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.22.1
Statements of Operations (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
EXPENSES    
Sponsor's Fee $ 594,312 $ 562,747
Total expenses 594,000 563,000
Net investment loss (594,000) (563,000)
REALIZED AND UNREALIZED GAINS / (LOSSES)    
Realized gain on palladium transferred to pay expenses 65,000 199,000
Realized gain on palladium distributed for the redemption of Shares 4,305,000 9,510,000
Change in unrealized gain on investment in palladium 21,908,000 34,733,000
Change in unrealized gain on unsettled creations or redemptions 1,061,000
Total gain on investment in palladium 27,339,000 44,442,000
Change in net assets from operations $ 26,745,000 $ 43,879,000
Net increase / (decrease) in net assets per Share $ 13.67 $ 26.57
Weighted average number of Shares 1,956,667 1,651,389
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Statements of Changes in Net Assets (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]    
Opening balance (in shares) 1,950,000 1,625,000
Opening balance $ 357,971 $ 356,238
Net investment loss (594) (563)
Realized gain on investment in palladium 4,370 9,709
Change in unrealized gain on investment in palladium 21,908 34,733
Change in unrealized gain on unsettled creations or redemptions $ 1,061
Creations (in shares) 425,000 125,000
Creations $ 112,112 $ 28,524
Redemptions (in shares) (225,000) (100,000)
Redemptions $ (45,599) $ (23,814)
Closing balance (in shares) 2,150,000 1,650,000
Closing balance $ 451,229 $ 404,827
XML 17 R7.htm IDEA: XBRL DOCUMENT v3.22.1
Financial Highlights (Unaudited) - $ / shares
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Per Share Performance (for a Share outstanding throughout the entire period)    
Net asset value per Share at beginning of period $ 183.58 $ 219.22
Income from investment operations:    
Net investment loss (0.30) (0.34)
Total realized and unrealized gains or losses on investment in palladium 26.59 26.47
Change in net assets from operations 26.29 26.13
Net asset value per Share at end of period $ 209.87 $ 245.35
Weighted average number of Shares 1,956,667 1,651,389
Expense ratio [1] 0.60% 0.60%
Net investment loss ratio [1] (0.60%) (0.60%)
Total return, net asset value [2] 14.32% 11.92%
[1] Annualized for periods less than one year.
[2] Total return is not annualized.
XML 18 R8.htm IDEA: XBRL DOCUMENT v3.22.1
Organization
3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization

1.    Organization

 

The abrdn Palladium ETF Trust (known as Aberdeen Standard Palladium ETF Trust prior to March 31, 2022) (the “Trust”) is a common law trust formed on December 30, 2009 under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by abrdn ETFs Sponsor LLC (known as Aberdeen Standard Investments ETFs Sponsor LLC prior to March 1, 2022) (the “Sponsor”) and The Bank of New York Mellon as Trustee (the “Trustee”). The Trust holds palladium bullion and issues abrdn Physical Palladium Shares ETF (known as Aberdeen Standard Physical Palladium Shares ETF prior to March 31, 2022) (“Shares”) in minimum blocks of 25,000 Shares (also referred to as “Baskets”) in exchange for deposits of palladium and distributes palladium in connection with the 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 and a wholly-owned subsidiary of abrdn Inc. (known as Aberdeen Standard Investments Inc. prior to January 1, 2022). abrdn Inc. is a wholly-owned indirect subsidiary of abrdn (formerly known as 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. The fiscal year end for the Trust is December 31.

 

The accompanying financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q. In the opinion of the Trust’s management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three months ended March 31, 2022 and for all periods presented have been made.

 

These financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the operating results for the full year.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.22.1
Significant Accounting Policies
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Significant Accounting Policies

2.    Significant Accounting Policies

 

The preparation of financial statements in accordance with U.S. GAAP 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 ASC 820, Fair Value Measurement (“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. 

 

The Trust's palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. The Trust's 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 vault premises on a segregated basis and whose appointment has been approved by the Sponsor. At March 31, 2022, approximately 31.40% of the Trust’s palladium was held by one or more sub-custodians.

 

The Trust's 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 average cost of palladium transferred.

 

The LME is responsible for the administration of the electronic palladium 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”).

 

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.

 

Fair Value Hierarchy

 

ASC 820 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 Trust 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 Trust’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 Trust’s investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.

 

The categorization of the Trust’s assets is as shown below:

 

(Amounts in 000’s of US$) 

March 31, 2022

  

December 31, 2021

 
         
Level 1          
Investment in palladium  $461,951   $358,161 

 

There were no transfers between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.

 

2.3.    Palladium Receivable and 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 palladium is transferred within two business days of the trade date. At March 31, 2022, the Trust had no palladium receivable for the creation of Shares and $10,493,871 of palladium payable for the redemption of Shares. At December 31, 2021, the Trust had no palladium receivable or payable for the creation or redemption 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 25,000 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 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 two 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 a redemption, it is considered a sale of palladium for financial statement purposes.

 

The amount of palladium 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 palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium 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 on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium.

 

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 the number of Shares outstanding are presented in the Statement of Changes in Net Assets.

 

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 Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2022 or December 31, 2021.

 

2.6.    Investment in Palladium

 

Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:

 

   Three Months
Ended
March 31, 2022
   Three Months
Ended
March 31, 2021
 
(Amounts in 000’s of US$, except for ounces data)          
Ounces of palladium          
Opening balance   181,531.1    152,187.5 
Creations   39,500.4    11,688.4 
Redemptions   (16,273.3)   (9,348.2)
Transfers of palladium to pay expenses   (264.9)   (227.4)
Closing balance   204,493.3    154,300.3 
           
Investment in palladium          
Opening balance  $358,161   $356,424 
Creations   112,112    28,524 
Redemptions   (35,105)   (23,814)
Realized gain on palladium distributed for the redemption of Shares   4,305    9,510 
Transfers of palladium to pay expenses   (556)   (537)
Realized gain on palladium transferred to pay expenses   65    199 
Change in unrealized gain on investment in palladium   21,908    34,733 
Change in unrealized gain on unsettled creations or redemptions   1,061     
Closing balance  $461,951   $405,039 

 

 

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 the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal to 0.60% of the adjusted daily 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 up to $100,000 per annum in legal expenses.

 

For the three months ended March 31, 2022 and 2021, the Sponsor's Fee was $594,312 and $562,747, respectively.

 

At March 31, 2022 and at December 31, 2021, the fees payable to the Sponsor were $227,739 and $189,455, respectively.

 

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 three months ended March 31, 2022 and 2021.

 

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 average 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 and 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 average 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 impacting the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified. 

 

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.1
Related Parties
3 Months Ended
Mar. 31, 2022
Related Party Transactions [Abstract]  
Related Parties

3.    Related Parties

 

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. In addition, the Trustee and the Custodian and their affiliates may from time to time purchase or sell palladium directly, for their own account, as agent for their customers and for accounts over which they exercise investment discretion. The Trustee’s and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust. 

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.22.1
Concentration of Risk
3 Months Ended
Mar. 31, 2022
Risks and Uncertainties [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 of 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, investment demand, and sales of existing stockpiles of palladium, which 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. 

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.1
Indemnification
3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Indemnification

5.    Indemnification

 

Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith, willful misconduct or willful malfeasance 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.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.22.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2022
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 ASC 820, Fair Value Measurement (“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. 

 

The Trust's palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. The Trust's 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 vault premises on a segregated basis and whose appointment has been approved by the Sponsor. At March 31, 2022, approximately 31.40% of the Trust’s palladium was held by one or more sub-custodians.

 

The Trust's 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 average cost of palladium transferred.

 

The LME is responsible for the administration of the electronic palladium 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”).

 

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.

 

Fair Value Hierarchy

 

ASC 820 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 Trust 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 Trust’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 Trust’s investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.

 

The categorization of the Trust’s assets is as shown below:

 

(Amounts in 000’s of US$) 

March 31, 2022

  

December 31, 2021

 
         
Level 1          
Investment in palladium  $461,951   $358,161 

 

There were no transfers between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.

Palladium Receivable and Payable

2.3.    Palladium Receivable and 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 palladium is transferred within two business days of the trade date. At March 31, 2022, the Trust had no palladium receivable for the creation of Shares and $10,493,871 of palladium payable for the redemption of Shares. At December 31, 2021, the Trust had no palladium receivable or payable for the creation or redemption of Shares.

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 25,000 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 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 two 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 a redemption, it is considered a sale of palladium for financial statement purposes.

 

The amount of palladium 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 palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium 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 on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium.

 

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 the number of Shares outstanding 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 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 Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2022 or December 31, 2021.

Investment in Palladium

2.6.    Investment in Palladium

 

Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:

 

   Three Months
Ended
March 31, 2022
   Three Months
Ended
March 31, 2021
 
(Amounts in 000’s of US$, except for ounces data)          
Ounces of palladium          
Opening balance   181,531.1    152,187.5 
Creations   39,500.4    11,688.4 
Redemptions   (16,273.3)   (9,348.2)
Transfers of palladium to pay expenses   (264.9)   (227.4)
Closing balance   204,493.3    154,300.3 
           
Investment in palladium          
Opening balance  $358,161   $356,424 
Creations   112,112    28,524 
Redemptions   (35,105)   (23,814)
Realized gain on palladium distributed for the redemption of Shares   4,305    9,510 
Transfers of palladium to pay expenses   (556)   (537)
Realized gain on palladium transferred to pay expenses   65    199 
Change in unrealized gain on investment in palladium   21,908    34,733 
Change in unrealized gain on unsettled creations or redemptions   1,061     
Closing balance  $461,951   $405,039 

 

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 the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal to 0.60% of the adjusted daily 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 up to $100,000 per annum in legal expenses.

 

For the three months ended March 31, 2022 and 2021, the Sponsor's Fee was $594,312 and $562,747, respectively.

 

At March 31, 2022 and at December 31, 2021, the fees payable to the Sponsor were $227,739 and $189,455, respectively.

 

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 three months ended March 31, 2022 and 2021.

 

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 average 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 and 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 average 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 impacting the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified. 

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.22.1
Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
The categorization of the Trust’s assets is as shown below:

The categorization of the Trust’s assets is as shown below:

 

(Amounts in 000’s of US$) 

March 31, 2022

  

December 31, 2021

 
         
Level 1          
Investment in palladium  $461,951   $358,161 
Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:

Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:

 

   Three Months
Ended
March 31, 2022
   Three Months
Ended
March 31, 2021
 
(Amounts in 000’s of US$, except for ounces data)          
Ounces of palladium          
Opening balance   181,531.1    152,187.5 
Creations   39,500.4    11,688.4 
Redemptions   (16,273.3)   (9,348.2)
Transfers of palladium to pay expenses   (264.9)   (227.4)
Closing balance   204,493.3    154,300.3 
           
Investment in palladium          
Opening balance  $358,161   $356,424 
Creations   112,112    28,524 
Redemptions   (35,105)   (23,814)
Realized gain on palladium distributed for the redemption of Shares   4,305    9,510 
Transfers of palladium to pay expenses   (556)   (537)
Realized gain on palladium transferred to pay expenses   65    199 
Change in unrealized gain on investment in palladium   21,908    34,733 
Change in unrealized gain on unsettled creations or redemptions   1,061     
Closing balance  $461,951   $405,039 
XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.1
Organization (Details Narrative)
3 Months Ended
Mar. 31, 2022
shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Minimum block of shares issued redeemed against palladium 25,000
XML 26 R16.htm IDEA: XBRL DOCUMENT v3.22.1
The categorization of the Trust’s assets is as shown below: (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investment in palladium $ 461,951 $ 358,161
XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.1
Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below: (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2022
USD ($)
oz
Mar. 31, 2021
USD ($)
oz
Accounting Policies [Abstract]    
Opening balance | oz 181,531.1 152,187.5
Creations | oz 39,500.4 11,688.4
Redemptions | oz (16,273.3) (9,348.2)
Transfers of palladium to pay expenses | oz (264.9) (227.4)
Closing balance | oz 204,493.3 154,300.3
Opening balance $ 358,161 $ 356,424
Creations 112,112 28,524
Redemptions (35,105) (23,814)
Realized gain on palladium distributed for the redemption of Shares 4,305 9,510
Transfers of palladium to pay expenses (556) (537)
Realized gain on palladium transferred to pay expenses 65 199
Change in unrealized gain on investment in palladium 21,908 34,733
Change in unrealized gain on unsettled creations or redemptions 1,061
Closing balance $ 461,951 $ 405,039
XML 28 R18.htm IDEA: XBRL DOCUMENT v3.22.1
Significant Accounting Policies (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Accounting Policies [Abstract]      
Percentage of palladium held by sub-custodians 31.40%    
Palladium receivable $ 0   $ 0
Palladium payable $ 10,493,871   0
Minimum block of shares issued redeemed against palladium 25,000    
Reserve for uncertain tax positions $ 0   0
Expense ratio [1] 0.60% 0.60%  
Maximum sponsor fee for legal expenses $ 100,000    
Sponsor's Fee 594,312 $ 562,747  
Fees payable to Sponsor 227,739   $ 189,455
All other expenses $ 0 $ 0  
[1] Annualized for periods less than one year.
XML 29 pall-10q_033122_htm.xml IDEA: XBRL DOCUMENT 0001459862 2022-01-01 2022-03-31 0001459862 2022-05-05 0001459862 2022-03-31 0001459862 2021-12-31 0001459862 2021-01-01 2021-12-31 0001459862 currency:XPD 2022-03-31 0001459862 currency:XPD 2021-12-31 0001459862 2021-01-01 2021-03-31 0001459862 2020-12-31 0001459862 2021-03-31 0001459862 us-gaap:FairValueInputsLevel1Member 2022-03-31 0001459862 us-gaap:FairValueInputsLevel1Member 2021-12-31 iso4217:USD shares iso4217:USD shares pure utr:oz 0001459862 false --12-31 2022 Q1 Unlimited Unlimited 10-Q true 2022-03-31 false 001-34589 abrdn Palladium ETF Trust NY 26-4733157 712 Fifth Avenue 49th Floor New York NY 10019 844 383-7289 abrdn Physical Palladium Shares ETF PALL NYSEArca Yes Yes Accelerated Filer false false false false 2050000 415255000 334434000 461951000 358161000 461951000 358161000 228000 190000 10494000 0 10722000 190000 451229000 357971000 0 0 2150000 2150000 1950000 1950000 209.87 183.58 204493.3 415255000 461951000 1.0237 204493.3 415255000 461951000 1.0237 10722000 -0.0237 451229000 1.0000 181531.1 334434000 358161000 1.0005 181531.1 334434000 358161000 1.0005 -190000 -0.0005 357971000 1.0000 594000 563000 594000 563000 -594000 -563000 65000 199000 4305000 9510000 21908000 34733000 1061000 27339000 44442000 26745000 43879000 13.67 26.57 1956667 1651389 1950000 357971000 -594000 4370000 21908000 1061000 425000 112112000 225000 45599000 2150000 451229000 1625000 356238000 -563000 9709000 34733000 125000 28524000 100000 23814000 1650000 404827000 183.58 219.22 -0.30 -0.34 26.59 26.47 26.29 26.13 209.87 245.35 1956667 1651389 0.0060 0.0060 -0.0060 -0.0060 0.1432 0.1192 <p id="xdx_807_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zWrv4Nofngw9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>1.    <span id="xdx_82F_zR8v8FwzYYM7">Organization</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The abrdn Palladium ETF Trust (known as Aberdeen Standard Palladium ETF Trust prior to March 31, 2022) (the “Trust”) is a common law trust formed on December 30, 2009 under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by abrdn ETFs Sponsor LLC (known as Aberdeen Standard Investments ETFs Sponsor LLC prior to March 1, 2022) (the “Sponsor”) and The Bank of New York Mellon as Trustee (the “Trustee”). The Trust holds palladium bullion and issues abrdn Physical Palladium Shares ETF (known as Aberdeen Standard Physical Palladium Shares ETF prior to March 31, 2022) (“Shares”) in minimum blocks of <span id="xdx_90C_ecustom--MinimumBlockOfSharesIssuedRedeemedAgainstBullion_pid_uShares_c20220101__20220331_zv5y9NSuGhf7" title="Minimum block of shares issued redeemed against palladium">25,000</span> Shares (also referred to as “Baskets”) in exchange for deposits of palladium and distributes palladium in connection with the 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 and a wholly-owned subsidiary of abrdn Inc. (known as Aberdeen Standard Investments Inc. prior to January 1, 2022). abrdn Inc. is a wholly-owned indirect subsidiary of abrdn (formerly known as Standard Life Aberdeen) plc. The Trust is governed by the Trust Agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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. The fiscal year end for the Trust is December 31.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q. In the opinion of the Trust’s management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three months ended March 31, 2022 and for all periods presented have been made.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the operating results for the full year.</p> 25000 <p id="xdx_800_eus-gaap--SignificantAccountingPoliciesTextBlock_z9BDW589Vci3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>2.    <span id="xdx_821_z2hZIEJ7IES7">Significant Accounting Policies</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements in accordance with U.S. GAAP 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. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_848_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_z3WKZRzsUdpj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.1.    <span id="xdx_861_z20GYN2tRpjl">Basis of Accounting</span></i></b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, <i>Financial Services—Investment Companies</i>, 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.</p> <p id="xdx_858_z1KN64I5sdij" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_844_ecustom--ValuationOfBullionPolicyTextBlock_z2L42idLCyq8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.2.    <span id="xdx_863_zOqdN5IkUTUf">Valuation of Palladium</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust follows the provisions of ASC 820, <i>Fair Value Measurement </i>(“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. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust's palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. The Trust's 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 vault premises on a segregated basis and whose appointment has been approved by the Sponsor. At March 31, 2022, approximately <span id="xdx_906_ecustom--PercentageOfAssetBeingHeldByTrust_iI_dp_c20220331_zhNEKlMrsZoi" title="Percentage of palladium held by sub-custodians">31.40</span>% of the Trust’s palladium was held by one or more sub-custodians.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust's 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 average cost of palladium transferred.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The LME is responsible for the administration of the electronic palladium 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”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Fair Value Hierarchy</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASC 820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">– Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">– 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">– Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust’s investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_89A_eus-gaap--ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock_zuta6V1Yje9g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8B0_z6RNLkFg4i2l">The categorization of the Trust’s assets is as shown below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-style: italic">(Amounts in 000’s of US$)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20220331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zs2DRWzR01F7" style="text-align: center"><p style="border-bottom: black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31, 2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zZuMnVJz2Qf1" style="white-space: nowrap; text-align: center"><p style="border-bottom: black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic">Level 1</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--InvestmentInPhysicalCommoditiesFairValueDisclosure_iI_pn3n3_zoVp8ypaJar7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Investment in palladium</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">461,951</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">358,161</td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_8A8_zK7sZAAAgtj5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There were no transfers between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.</p> <p id="xdx_853_zNxncPr5RMi3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_848_ecustom--ReceivableAndPayablePolicyTextBlock_zFTJIWkA8og7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.3.   <span id="xdx_86B_zead8X0h3xv2"> Palladium Receivable and Payable</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 palladium is transferred within two business days of the trade date. At March 31, 2022, the Trust had <span id="xdx_906_ecustom--BullionReceivableAtMarketValue_iI_do_c20220331_zLkoIqWq1eBi" title="Palladium receivable">no</span> palladium receivable for the creation of Shares and $<span id="xdx_909_ecustom--BullionPayableAtMarketValue_iI_c20220331_zOkg3TIv1i12" title="Palladium payable">10,493,871</span> of palladium payable for the redemption of Shares. At December 31, 2021, the Trust had <span id="xdx_906_ecustom--BullionReceivableAtMarketValue_iI_do_c20211231_zvlPsRC4oYZk"><span id="xdx_903_ecustom--BullionPayableAtMarketValue_iI_do_c20211231_zD36oE4WmUfk">no</span></span> palladium receivable or payable for the creation or redemption of Shares.</p> <p id="xdx_852_z0mRPOnw1il7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_846_ecustom--CreationsAndRedemptionsOfSharesPolicyTextBlock_zbFEG1QmrJzf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.4.    <span id="xdx_86A_zwrrt1RVVqkd">Creations and Redemptions of Shares</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 <span id="xdx_90E_ecustom--MinimumBlockOfSharesIssuedRedeemedAgainstBullion_pid_uShares_c20220101__20220331_zAjofut1WZT1" title="Minimum block of shares issued redeemed against palladium">25,000</span> 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 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 two 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 a redemption, it is considered a sale of palladium for financial statement purposes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The amount of palladium 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 palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium 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 on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 the number of Shares outstanding are presented in the Statement of Changes in Net Assets.</p> <p id="xdx_853_zEEeypimF4Hj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_846_eus-gaap--IncomeTaxPolicyTextBlock_zFk2baQqE7Bf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.5.    <span id="xdx_861_zBlH8mecqB28">Income Taxes</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that <span id="xdx_90C_eus-gaap--LiabilityForUncertainTaxPositionsNoncurrent_iI_do_c20220331_zmM1z0svplof" title="Reserve for uncertain tax positions"><span id="xdx_900_eus-gaap--LiabilityForUncertainTaxPositionsNoncurrent_iI_do_c20211231_zktGId5GM6bc" title="Reserve for uncertain tax positions">no</span></span> reserves for uncertain tax positions are required as of March 31, 2022 or December 31, 2021.</p> <p id="xdx_854_zMk8hA5fs9Ic" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_84B_eus-gaap--InvestmentPolicyTextBlock_zxiArpCZlFG3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.6.    <span id="xdx_86F_zFmXGuhTK854">Investment in Palladium</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_89E_ecustom--InvestmentsInBullionTableTextBlock_zO8q9enyylDk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8BF_zm1JlECuGzc1">Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20220101__20220331_zjS8s1fWAfx1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months<br/> Ended<br/> March 31, 2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20210101__20210331_z53syVkUpaoi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months<br/> Ended<br/> March 31, 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic; text-align: left">(Amounts in 000’s of US$, except for ounces data)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Ounces of palladium</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--InvestmentOwnedBalanceOtherMeasure_iS_pp1p0_uoz_zOXdQ45FrIb5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Opening balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">181,531.1</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">152,187.5</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CreationsOuncesOfBullion_pp1p0_uoz_zCsOPwn58uH7" style="vertical-align: bottom; background-color: White"> <td>Creations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,500.4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,688.4</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--RedemptionsOuncesOfBullion_pp1p0_uoz_ztxqGaHC7LDh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Redemptions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,273.3</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,348.2</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_ecustom--TransfersOfBullionOunces_pp1p0_uoz_zds5p0hMYbH1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Transfers of palladium to pay expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(264.9</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(227.4</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Closing balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--InvestmentOwnedBalanceOtherMeasure_iE_pp1d_uoz_c20220101__20220331_zNZwx14RbASg" style="border-bottom: Black 2.5pt double; text-align: right" title="Closing balance">204,493.3</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--InvestmentOwnedBalanceOtherMeasure_iE_pp1d_uoz_c20210101__20210331_zxV4PLZ7nwj4" style="border-bottom: Black 2.5pt double; text-align: right" title="Closing balance">154,300.3</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; width: 70%">Investment in palladium</td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr id="xdx_406_eus-gaap--InvestmentInPhysicalCommodities_iS_pn3n3_uUSD_zGeEEsWRq4Yl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Opening balance</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">358,161</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">356,424</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--CreationsValueOfBullion_pn3n3_uUSD_zwi99ieXKLu7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Creations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,112</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,524</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--ValueOfBullionDistributedForRedemptionOfSharesExcludingBullionPayable_iN_pn3n3_di_uUSD_zBt1Ntejg129" style="vertical-align: bottom; background-color: White"> <td>Redemptions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(35,105</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,814</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_ecustom--RealizedGainLossOnBullionDistributedForRedemptionOfShares_pn3n3_uUSD_zb67VmYkmT7a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Realized gain on palladium distributed for the redemption of Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,305</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,510</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CostOfBullionTransferredToPayExpenses_iN_pn3n3_di_uUSD_z7IO1AxQeNC2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Transfers of palladium to pay expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(556</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(537</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--GainLossOnSaleOfTrustAssetsToPayExpenses_pn3n3_uUSD_zE5Stl2F3Vhg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Realized gain on palladium transferred to pay expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">65</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">199</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--ChangeInUnrealizedGainLossOnInvestmentInBullion_pn3n3_uUSD_zDkzU6GjEFug" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in unrealized gain on investment in palladium</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right">21,908</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="text-align: right">34,733</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--ChangeInUnrealizedGainLossOnUnsettledCreationsOrRedemptions_zL9t8jBqJtp5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Change in unrealized gain on unsettled creations or redemptions</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,061</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0325">—</span></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Closing balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--InvestmentInPhysicalCommodities_iE_c20220101__20220331_zHo9u4ACnIka" style="border-bottom: Black 2.5pt double; text-align: right" title="Closing balance">461,951</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--InvestmentInPhysicalCommodities_iE_c20210101__20210331_zJ5aMXNYfGj2" style="border-bottom: Black 2.5pt double; text-align: right" title="Closing balance">405,039</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A3_zifEn80Lbl8g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_859_zQiuYezGMgYe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_840_ecustom--ExpensesPolicyTextBlock_zeTNbf3Fduf5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.7.    <span id="xdx_863_zMVQjSIDB2dl">Expenses / Realized Gains / Losses</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.<br/> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust will transfer palladium to the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal to <span id="xdx_900_ecustom--AnnualizedRateOfSponsorsFee_pid_dp_c20220101__20220331_z8NwzemQNN8" title="Expense ratio">0.60</span>% of the adjusted daily net asset value (“ANAV”) of the Trust, paid monthly in arrears. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 up to $<span id="xdx_90E_ecustom--MaximumSponsorFeeForLegalExpenses_pp0p0_uUSD_c20220101__20220331_z2nibLSKn486" title="Maximum sponsor fee for legal expenses">100,000</span> per annum in legal expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the three months ended March 31, 2022 and 2021, the Sponsor's Fee was $<span id="xdx_903_eus-gaap--SponsorFees_pp0p0_c20220101__20220331_zHQ5tnlsIp11" title="Sponsor's Fee">594,312</span> and $<span id="xdx_90D_eus-gaap--SponsorFees_pp0p0_c20210101__20210331_zVdegVPPrc91">562,747</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At March 31, 2022 and at December 31, 2021, the fees payable to the Sponsor were $<span id="xdx_906_eus-gaap--AccountsPayableRelatedPartiesCurrent_iI_pp0p0_uUSD_c20220331_zvz7AIppw1k" title="Fees payable to Sponsor">227,739</span> and $<span id="xdx_909_eus-gaap--AccountsPayableRelatedPartiesCurrent_iI_pp0p0_uUSD_c20211231_zH6eqwr2Bkra">189,455</span>, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 <span id="xdx_90C_eus-gaap--OtherCostAndExpenseOperating_do_c20220101__20220331_z65s0wipcjS5" title="All other expenses"><span id="xdx_904_eus-gaap--OtherCostAndExpenseOperating_do_c20210101__20210331_zj7v0FRLwEL1" title="All other expenses">no</span></span> expenses during the three months ended March 31, 2022 and 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 average cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Realized gains and 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 average cost of palladium transferred.</p> <p id="xdx_851_z6qwSDYqORfc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_84A_eus-gaap--SubsequentEventsPolicyPolicyTextBlock_zhwZy2njuBId" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.8.    <span id="xdx_865_zuFkgfTFJXQl">Subsequent Events</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In accordance with the provisions set forth in FASB ASC 855-10, <i>Subsequent Events</i>, the Trust’s management has evaluated the possibility of subsequent events impacting the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified. </p> <p id="xdx_853_zlxNKfSYui49" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_848_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_z3WKZRzsUdpj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.1.    <span id="xdx_861_z20GYN2tRpjl">Basis of Accounting</span></i></b> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, <i>Financial Services—Investment Companies</i>, 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.</p> <p id="xdx_844_ecustom--ValuationOfBullionPolicyTextBlock_z2L42idLCyq8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.2.    <span id="xdx_863_zOqdN5IkUTUf">Valuation of Palladium</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust follows the provisions of ASC 820, <i>Fair Value Measurement </i>(“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. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust's palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. The Trust's 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 vault premises on a segregated basis and whose appointment has been approved by the Sponsor. At March 31, 2022, approximately <span id="xdx_906_ecustom--PercentageOfAssetBeingHeldByTrust_iI_dp_c20220331_zhNEKlMrsZoi" title="Percentage of palladium held by sub-custodians">31.40</span>% of the Trust’s palladium was held by one or more sub-custodians.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust's 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 average cost of palladium transferred.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The LME is responsible for the administration of the electronic palladium 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”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Fair Value Hierarchy</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASC 820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">– Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">– 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">– Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Trust’s investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_89A_eus-gaap--ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock_zuta6V1Yje9g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8B0_z6RNLkFg4i2l">The categorization of the Trust’s assets is as shown below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-style: italic">(Amounts in 000’s of US$)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20220331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zs2DRWzR01F7" style="text-align: center"><p style="border-bottom: black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31, 2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zZuMnVJz2Qf1" style="white-space: nowrap; text-align: center"><p style="border-bottom: black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic">Level 1</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--InvestmentInPhysicalCommoditiesFairValueDisclosure_iI_pn3n3_zoVp8ypaJar7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Investment in palladium</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">461,951</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">358,161</td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_8A8_zK7sZAAAgtj5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There were no transfers between levels during the three months ended March 31, 2022 or the year ended December 31, 2021.</p> 0.3140 <p id="xdx_89A_eus-gaap--ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock_zuta6V1Yje9g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8B0_z6RNLkFg4i2l">The categorization of the Trust’s assets is as shown below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-style: italic">(Amounts in 000’s of US$)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20220331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zs2DRWzR01F7" style="text-align: center"><p style="border-bottom: black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>March 31, 2022</b></p></td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zZuMnVJz2Qf1" style="white-space: nowrap; text-align: center"><p style="border-bottom: black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>December 31, 2021</b></p></td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic">Level 1</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--InvestmentInPhysicalCommoditiesFairValueDisclosure_iI_pn3n3_zoVp8ypaJar7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Investment in palladium</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">461,951</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">358,161</td><td style="width: 1%; text-align: left"> </td></tr> </table> 461951000 358161000 <p id="xdx_848_ecustom--ReceivableAndPayablePolicyTextBlock_zFTJIWkA8og7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.3.   <span id="xdx_86B_zead8X0h3xv2"> Palladium Receivable and Payable</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 palladium is transferred within two business days of the trade date. At March 31, 2022, the Trust had <span id="xdx_906_ecustom--BullionReceivableAtMarketValue_iI_do_c20220331_zLkoIqWq1eBi" title="Palladium receivable">no</span> palladium receivable for the creation of Shares and $<span id="xdx_909_ecustom--BullionPayableAtMarketValue_iI_c20220331_zOkg3TIv1i12" title="Palladium payable">10,493,871</span> of palladium payable for the redemption of Shares. At December 31, 2021, the Trust had <span id="xdx_906_ecustom--BullionReceivableAtMarketValue_iI_do_c20211231_zvlPsRC4oYZk"><span id="xdx_903_ecustom--BullionPayableAtMarketValue_iI_do_c20211231_zD36oE4WmUfk">no</span></span> palladium receivable or payable for the creation or redemption of Shares.</p> 0 10493871 0 0 <p id="xdx_846_ecustom--CreationsAndRedemptionsOfSharesPolicyTextBlock_zbFEG1QmrJzf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.4.    <span id="xdx_86A_zwrrt1RVVqkd">Creations and Redemptions of Shares</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 <span id="xdx_90E_ecustom--MinimumBlockOfSharesIssuedRedeemedAgainstBullion_pid_uShares_c20220101__20220331_zAjofut1WZT1" title="Minimum block of shares issued redeemed against palladium">25,000</span> 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 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 two 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 a redemption, it is considered a sale of palladium for financial statement purposes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The amount of palladium 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 palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium 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 on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 the number of Shares outstanding are presented in the Statement of Changes in Net Assets.</p> 25000 <p id="xdx_846_eus-gaap--IncomeTaxPolicyTextBlock_zFk2baQqE7Bf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.5.    <span id="xdx_861_zBlH8mecqB28">Income Taxes</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that <span id="xdx_90C_eus-gaap--LiabilityForUncertainTaxPositionsNoncurrent_iI_do_c20220331_zmM1z0svplof" title="Reserve for uncertain tax positions"><span id="xdx_900_eus-gaap--LiabilityForUncertainTaxPositionsNoncurrent_iI_do_c20211231_zktGId5GM6bc" title="Reserve for uncertain tax positions">no</span></span> reserves for uncertain tax positions are required as of March 31, 2022 or December 31, 2021.</p> 0 0 <p id="xdx_84B_eus-gaap--InvestmentPolicyTextBlock_zxiArpCZlFG3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>2.6.    <span id="xdx_86F_zFmXGuhTK854">Investment in Palladium</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_89E_ecustom--InvestmentsInBullionTableTextBlock_zO8q9enyylDk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span id="xdx_8BF_zm1JlECuGzc1">Changes in ounces of palladium and their respective values for the three months ended March 31, 2022 and 2021 are set out below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20220101__20220331_zjS8s1fWAfx1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months<br/> Ended<br/> March 31, 2022</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20210101__20210331_z53syVkUpaoi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months<br/> Ended<br/> March 31, 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-style: italic; text-align: left">(Amounts in 000’s of US$, except for ounces data)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Ounces of palladium</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--InvestmentOwnedBalanceOtherMeasure_iS_pp1p0_uoz_zOXdQ45FrIb5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Opening balance</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">181,531.1</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">152,187.5</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--CreationsOuncesOfBullion_pp1p0_uoz_zCsOPwn58uH7" style="vertical-align: bottom; background-color: White"> <td>Creations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,500.4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,688.4</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--RedemptionsOuncesOfBullion_pp1p0_uoz_ztxqGaHC7LDh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Redemptions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,273.3</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,348.2</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_ecustom--TransfersOfBullionOunces_pp1p0_uoz_zds5p0hMYbH1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Transfers of palladium to pay expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(264.9</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(227.4</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Closing balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--InvestmentOwnedBalanceOtherMeasure_iE_pp1d_uoz_c20220101__20220331_zNZwx14RbASg" style="border-bottom: Black 2.5pt double; text-align: right" title="Closing balance">204,493.3</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--InvestmentOwnedBalanceOtherMeasure_iE_pp1d_uoz_c20210101__20210331_zxV4PLZ7nwj4" style="border-bottom: Black 2.5pt double; text-align: right" title="Closing balance">154,300.3</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; width: 70%">Investment in palladium</td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%"> </td><td style="text-align: left; width: 1%"> </td><td style="width: 1%"> </td> <td style="text-align: left; width: 1%"> </td><td style="text-align: right; width: 12%"> </td><td style="text-align: left; width: 1%"> </td></tr> <tr id="xdx_406_eus-gaap--InvestmentInPhysicalCommodities_iS_pn3n3_uUSD_zGeEEsWRq4Yl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Opening balance</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">358,161</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">356,424</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--CreationsValueOfBullion_pn3n3_uUSD_zwi99ieXKLu7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Creations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,112</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,524</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--ValueOfBullionDistributedForRedemptionOfSharesExcludingBullionPayable_iN_pn3n3_di_uUSD_zBt1Ntejg129" style="vertical-align: bottom; background-color: White"> <td>Redemptions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(35,105</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,814</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_ecustom--RealizedGainLossOnBullionDistributedForRedemptionOfShares_pn3n3_uUSD_zb67VmYkmT7a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Realized gain on palladium distributed for the redemption of Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,305</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,510</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CostOfBullionTransferredToPayExpenses_iN_pn3n3_di_uUSD_z7IO1AxQeNC2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Transfers of palladium to pay expenses&l