10-KPeriod: FY2021

ISHARES GOLD TRUST Annual Report, Year Ended Dec 31, 2021

Filed March 1, 2022For Securities:IAU

Summary

The iShares Gold Trust (IAU) 10-K filing for the period ending December 30, 2021, reveals a trust designed to reflect the performance of the price of gold. The trust's assets primarily consist of physical gold bullion held by its custodian. During 2021, the net asset value of the trust decreased by 10.01%, attributed to a decline in the number of outstanding shares and a slight decrease in the LBMA Gold Price. Key operational aspects include the trust's passive management strategy, with its primary recurring expense being the Sponsor's fee (0.25% of NAV). The trust does not engage in active trading or hedging. The filing also emphasizes the risks associated with gold price volatility, operational failures, cybersecurity threats, and potential conflicts of interest due to the Sponsor's affiliates managing other gold-related funds.

Financial Highlights

8 data points
Beta

Net Income

-$1.40B

EPS (Diluted)

$-1.65

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$72.77M
Operating Income-$72.77M
Net Income-$1.40B
EPS (Basic)$-1.65

Key Highlights

  • 1The Trust's net asset value decreased by 10.01% in 2021, from $31,918,269,136 to $28,723,023,637.
  • 2Outstanding Shares decreased from 885,225,000 at the end of 2020 to 829,750,000 at the end of 2021.
  • 3The LBMA Gold Price decreased by 3.75% during 2021.
  • 4The Trust's primary expense is the Sponsor's fee, which was $72,773,331 for the year ended December 31, 2021, representing an annualized rate of 0.25% of the net asset value.
  • 5The Trust is a passive investment vehicle seeking to mirror the price of gold and does not actively manage its holdings.
  • 6A one-for-two reverse stock split was effective on May 24, 2021.
  • 7The filing details significant risks including gold price volatility, potential disruptions in the LBMA Gold Price determination process, and operational risks associated with custodianship and technology systems.

Frequently Asked Questions

The primary objective of the iShares Gold Trust (IAU) is to reflect generally the performance of the price of gold, before payment of the Trust's expenses and liabilities. It aims to provide investors with a cost-effective way to gain exposure to the gold market through the securities market.

The Trust's main ordinary recurring expense 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 certain administrative and marketing expenses, including trustee fees, custodian fees, listing fees, SEC registration fees, printing and mailing costs, audit fees, and a portion of legal fees.

The Net Asset Value (NAV) is calculated daily by valuing the gold held by the Trust using the LBMA Gold Price PM. From the total value of the gold and other assets, all accrued fees, expenses, and liabilities of the Trust are subtracted. The resulting figure is divided by the number of outstanding Shares to determine the NAV per Share.

Key risks include the inherent volatility of gold prices, the potential for disruptions in the LBMA Gold Price benchmark, operational risks related to gold custody and technology systems, and the possibility of conflicts of interest arising from the Sponsor's other activities. Additionally, the Trust's value can decrease due to the ongoing Sponsor's fee, which requires the Trust to sell gold over time, reducing the amount of gold backing each share.