10-KPeriod: FY2015

ISHARES GOLD TRUST Annual Report, Year Ended Dec 31, 2015

Filed February 29, 2016For Securities:IAU

Summary

iShares Gold Trust (IAU) filed its annual report for the fiscal year ended December 31, 2015, on February 29, 2016. The Trust's primary objective is to reflect the performance of the price of gold, holding physical gold bullion as its primary asset. During 2015, the Trust experienced a decrease in its net asset value from approximately $6.21 billion to $5.21 billion, primarily driven by a decline in gold prices. The number of outstanding shares also decreased. The Trust operates as a passive investment vehicle with limited activities, focused on issuing and redeeming shares in exchange for gold, and selling gold to cover expenses, including the Sponsor's fee. The Sponsor, iShares Delaware Trust Sponsor LLC, a subsidiary of BlackRock, Inc., assumes certain administrative and marketing expenses in exchange for this fee. The NAV per share also saw a decline, reflecting the decrease in gold prices and the impact of the Sponsor's fee.

Financial Highlights

11 data points
Beta

Net Income

-$762.12M

EPS (Diluted)

$-2.80

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$15.25M
Operating Income-$15.25M
Net Income-$762.12M
EPS (Basic)$-2.80
Shares Outstanding (Basic)271.70M

Key Highlights

  • 1Net Asset Value (NAV) decreased by 16.15% to $5.21 billion in 2015, largely due to a 11.42% drop in the price of gold.
  • 2Outstanding shares decreased from 535.4 million to 508.1 million during the year.
  • 3The Trust's net asset value per share declined by 11.71% to $10.25.
  • 4Sponsor's fees amounted to $15.25 million for the year, representing 0.25% of the Trust's average assets.
  • 5The Trust uses the LBMA Gold Price PM for valuing its gold holdings, having transitioned from the London PM Fix in March 2015.
  • 6The Trust is a grantor trust for U.S. federal income tax purposes, meaning income and expenses flow through to shareholders.
  • 7Shares are created and redeemed in 'Baskets' of 50,000 shares with Authorized Participants in exchange for physical gold.

Frequently Asked Questions

The primary reason for the decrease in the Trust's NAV in 2015 was the decline in the price of gold. The price of gold fell from $1,199.25 per ounce at the end of 2014 to $1,062.25 per ounce at the end of 2015.

The main recurring expense for the Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. The Sponsor also assumes other administrative and marketing expenses such as Trustee fees, Custodian fees, listing fees, and audit fees, up to certain limits.

The value of the gold held by the Trust is determined daily using the LBMA Gold Price PM (London Bullion Market Association Gold Price PM). If the LBMA Gold Price PM is not available on a business day, the Trustee is authorized to use the most recently announced LBMA Gold Price AM.

Investors can buy and sell shares of the iShares Gold Trust on the NYSE Arca exchange through a traditional brokerage account under the ticker symbol 'IAU'. Authorized Participants can create or redeem Baskets of Shares by depositing or withdrawing physical gold directly with the Trust.