Franklin Templeton Holdings Trust (FGDL) risk factors, FY2026 10-K

Other

1. 01Market risk refers to the risk that the market price of gold held by the Fund may go up and down, sometimes rapidly or unpredictably. The market price of the gold has been historically unpredictable
2. 02The Fund is not a diversified investment and, therefore, may be more volatile than other investments
3. 03Adverse developments in gold bullion trading prices may adversely affect the value of an investment in the Fund20% rewritten
4. 04Economic 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
5. 05The Fund is subject to the risk that the Fund’s gold bullion may be sold at low prices to pay expenses
6. 06The price of gold may be affected by the sale of gold by exchange-traded funds (“ETFs”) or other exchange-traded vehicles tracking gold markets
7. 07Substantial sales of gold by the “official” sector could adversely affect the value of an investment in the Shares
8. 08Geopolitical tensions or conflicts affecting significant gold producers could result in a decline in the price of gold and adversely affect the value of an investment in the SharesNew
9. 09Potential discrepancies in the calculation, accuracy or reliability of the LBMA Gold Price PM, as well as any future changes to the LBMA Gold Price PM, could adversely affect the value of the gold bullion held by the Fund and the methodology used to calculate the value of an investment in the Fund

RISKS RELATED TO THE FUND AND THE SHARES

1. 10The Fund is a passive investment vehicle and is not actively managed
2. 11An investment in the Fund has inherent costs, which may detract significantly from Fund’s investment results
3. 12The Fund is subject to responsible sourcing due diligence risk
4. 13An active and liquid market for the Shares of the Fund may not be sustained43% rewritten
5. 14The 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. 15The Sponsor may amend the Declaration of Trust without the consent of the ShareholdersNew
7. 16An investment in the Shares may be adversely affected by competition from other methods of investing in gold
8. 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
9. 18Redemption orders may be subject to rejection, suspension or postponement
10. 19The liquidity of the Fund’s Shares may be affected by the withdrawal of Authorized Participants and substantial redemptions by Authorized Participants
11. 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
12. 21Shareholders do not have the rights enjoyed by investors in certain other vehicles88% rewritten
13. 22NYSE Arca may halt trading in the Shares, which would adversely impact your ability to sell your Shares
14. 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 investors63% rewritten
15. 24exemption from any rules requiring mandatory audit firm rotation and auditor discussion and analysis and, unless otherwise determined by the SEC, any new audit rules adopted by the Public Company Accounting Oversight BoardNew

RISKS RELATED TO THE CUSTODY OF GOLD

1. 25The 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. 26The 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. 27Any 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. 28Gold 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. 29The 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. 30Resignation of the Custodian would likely lead to the termination of the Fund if no successor is appointed
7. 31The gold bullion custody operations of the Custodian are not subject to specific governmental regulatory supervision

GENERAL RISKS

1. 32The Fund is exposed to various operational risks
2. 33Market disruption events or extraordinary events could cause a disruption in the operation of the Fund and its secondary market
3. 34The Fund may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the FundNew
4. 35The 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
5. 36The Fund’s obligation to indemnify certain of its service providers could adversely affect an investment in the Shares
6. 37Potential conflicts of interest may arise among the Sponsor or its affiliates and the Fund74% rewritten
7. 38The Sponsor, its affiliates and their officers and employees are not prohibited from engaging in other businesses or activities, including those that might be in direct competition with the FundNew