Franklin Templeton Holdings Trust (FGDL) risk factors, FY2025 10-K

Other

1. 01An investment in the Fund is subject to market risk with respect to the gold markets
2. 02Market risk refers to the risk that the market price of gold bullion held by the Trust may go up and down, sometimes rapidly or unpredictably. The market price of the gold bullion has been historically unpredictable
3. 03The Fund is not a diversified investment and, therefore, may be more volatile than other investments
4. 04Adverse developments in gold bullion trading prices may affect the value of an investment in the Fund
5. 05Economic or other events could result in large-scale sales of gold, which could decrease the price of gold and the value of an investment in the Fund
6. 06The Fund is subject to the risk that the Fund’s gold bullion may be sold at low prices to pay expenses
7. 07Temporary increases in the price of gold due to purchases of gold bullion to deliver to the Fund in exchange for Creation Units may adversely affect the Fund
8. 08The price of gold may be affected by the sale of gold by exchange-traded funds (“ETFs”) or other exchange-traded vehicles tracking gold markets
9. 09Substantial sales of gold by the “official” sector could adversely affect an investment in the Shares
10. 10Potential discrepancies in the calculation of the LBMA Gold Price PM, as well as any future changes to the LBMA Gold Price PM, could offset the value of the gold bullion held by the Fund and could have an adverse effect on the methodology used to calculate an investment in the Fund

RISKS RELATED TO THE SHARES

1. 11The Fund is a passive investment vehicle and is not actively managed
2. 12An investment in the Fund has inherent costs, which may detract significantly from Fund’s investment results
3. 13The Fund is subject to responsible sourcing due diligence risk
4. 14An active and liquid market for the Shares of the Fund may not be sustained
5. 15The Shares may trade at a price which is at, above or below the NAV per Share and any discount or premium in the trading price relative to the NAV per Share may widen as a result of non-concurrent trading hours between the Commodity Exchange Inc. (the “COMEX”) and NYSE Arca
6. 16An investment in the Shares may be adversely affected by competition from other methods of investing in gold
7. 17The liquidation of the Fund or the Trust may occur at a time when the disposition of the Fund’s gold will result in losses to investors in Shares
8. 18Redemption orders may be subject to rejection, suspension or postponement
9. 19The liquidity of the Fund’s Shares may be affected by the withdrawal of Authorized Participants and substantial redemptions by Authorized Participants
10. 20Shareholders do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA
11. 21Shareholders do not have the rights enjoyed by investors in certain other vehicles
12. 22NYSE Arca may halt trading in the Shares, which would adversely impact your ability to sell your Shares
13. 23The Trust is an “emerging growth company” and it cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make the Shares less attractive to investors

RISKS RELATED TO THE CUSTODY OF GOLD

1. 24The Fund will rely on the Custodian for the safekeeping of essentially all of the Fund’s gold bullion. As a result, failure by the Custodian to exercise due care in the safekeeping of the Fund’s gold bullion could result in a loss to the Fund
2. 25The value of the Shares will be adversely affected if gold owned by the Fund is lost or damaged in circumstances in which the Fund is not in a position to recover the corresponding loss
3. 26Any loss of gold owned by the Fund will result in a corresponding loss in the NAV of the Fund and it is reasonable to expect that such loss will also result in a decrease in the value at which the Shares are traded on NYSE Arca
4. 27Gold transferred to the Fund in connection with the creation transactions may not be of the quality required under applicable contractual arrangements. The Fund will sustain a loss if the Fund issues Shares in exchange for gold of inferior quality and that loss will adversely affect the value of all existing Shares
5. 28The Fund’s lack of insurance protection and the shareholders’ limited rights of legal recourse against the Fund, the Trustee, the Marketing Agent, the Sponsor, the Custodian and any sub-custodian expose the shareholders to the risk of loss of the Fund’s gold for which no person is liable
6. 29Resignation of the Custodian would likely lead to the termination of the Fund if no successor is appointed
7. 30The gold bullion custody operations of the Custodian are not subject to specific governmental regulatory supervision

GENERAL RISKS

1. 31The Fund is exposed to various operational risks
2. 32Market disruption events or extraordinary events could cause a disruption in the operation of the Fund and its secondary market
3. 33The service providers engaged by the Fund may not carry adequate insurance to cover claims against them by the Fund, which could adversely affect the value of the Fund’s net assets
4. 34The Fund’s obligation to indemnify certain of its service providers could adversely affect an investment in the Shares
5. 35Potential conflicts of interest may arise among the Sponsor or its affiliates and the Fund