What is the primary investment objective of the iShares COMEX Gold Trust (IAU)?

The primary objective of the iShares COMEX Gold Trust is for the value of its shares to reflect, at any given time, the price of the gold bullion owned by the Trust, less the Trust's accrued expenses and liabilities.

How are the Trust's assets valued, and what is the main risk for investors?

The Trust's assets consist solely of gold bullion, which is valued at fair market value based on the COMEX settlement price for the spot month gold futures contract. The primary risk for investors is the concentration risk associated with fluctuations in the price of gold; a decline in gold prices will adversely affect the value of the Trust's shares.

Who is responsible for the Trust's expenses, and what are the key costs for shareholders?

The Sponsor, Barclays Global Investors, N.A., assumes most of the administrative and marketing expenses incurred by the Trust. The primary expense borne by the Trust itself is the Sponsor's fee, which accrues daily at an annualized rate of 0.40% of the adjusted daily net asset value. Other expenses like Trustee and custodian fees are paid by the Sponsor.

How does an investor buy or sell shares of the iShares COMEX Gold Trust?

Individual investors cannot directly buy or redeem shares with the Trust. Shares are issued and redeemed by the Trust in large aggregations (50,000 shares) only through registered broker-dealers known as 'Authorized Participants'. Individual investors typically buy and sell IAU shares on the AMEX stock exchange through their brokerage accounts.

IAU 10-Q Quarterly Report Q1 FY2005 — Revenue, Net Income, EPS

Summary

The iShares COMEX Gold Trust (IAU) filed its first quarterly report for the period ending March 31, 2005. Established on January 21, 2005, the Trust's primary objective is to reflect the price of gold bullion owned by the Trust, less expenses. The Trust experienced significant growth in its net assets during this initial period, increasing from approximately $6.4 million to over $299.8 million, driven by substantial share creations and redemptions. As a passive investment vehicle, IAU's performance is directly tied to the price of gold. The report highlights that the net asset value per share closely tracked the COMEX spot settlement price of gold, with minor deviations attributed to sponsor fees. The Trust's financial statements show holdings of gold bullion valued at fair market value and a net income driven primarily by gains on gold distributions for share redemptions. The Sponsor, Barclays Global Investors, N.A., assumes most administrative expenses, with the Sponsor's fee being the primary expense for the Trust.

Key Highlights

1The Trust's net assets grew significantly from $6.4 million at inception (January 21, 2005) to $299.9 million as of March 31, 2005, representing a substantial increase of over 4,500%.
2This growth was fueled by the issuance and redemption of shares, with 15.45 million shares created and 8.6 million shares redeemed during the period.
3The Trust's performance closely mirrors the price of gold, as evidenced by the net asset value per share tracking the COMEX spot settlement price, with a slight decrease due to sponsor fees.
4Gold bullion is the Trust's sole asset, valued at fair market value, and its price fluctuations are the primary driver of the Trust's share value.
5The net income for the period was $7.75 million, primarily generated from gains on gold distributed for share redemptions.
6Barclays Global Investors, N.A. acts as the Sponsor and covers most of the Trust's operating expenses, with the Sponsor's fee being the main reported expense.
7The Trust operates as a grantor trust for federal income tax purposes, meaning gains and losses are passed through to shareholders.

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2005

Summary

Key Highlights

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