Summary
This report covers the iShares COMEX Gold Trust (IAU) for the period ending September 30, 2006. The Trust's primary asset is gold bullion, and its objective is to mirror the price of gold, less expenses. For the nine months ended September 30, 2006, the Trust's net asset value grew significantly, driven by an increase in the price of gold and substantial share creations. Financially, the Trust holds gold bullion valued at $715,932,000 as of September 30, 2006, a substantial increase from $316,959,000 at December 31, 2005. The Trust experienced a net income of $1,451,000 for the nine-month period, primarily due to gains on gold distributed for redemptions and sales to cover expenses, which were partially offset by sponsor fees. The net asset value per share also saw a notable increase during this period.
Key Highlights
- 1The Trust's gold bullion inventory increased significantly from $316.96 million at year-end 2005 to $715.93 million by September 30, 2006, reflecting strong investor interest and rising gold prices.
- 2For the nine months ended September 30, 2006, the Trust reported a net income of $1.45 million, compared to a net loss of $0.19 million for the same period in the prior year, indicating improved performance.
- 3Net asset value per share increased from $51.52 at December 31, 2005, to $59.46 at September 30, 2006, closely tracking the rise in the COMEX Spot Settlement Price of gold.
- 4The Trust issued 7,000,000 shares and redeemed 200,000 shares during the nine months ended September 30, 2006, indicating net share creation and growth in the Trust's assets under management.
- 5Sponsor's fees were the primary expense for the Trust, amounting to $2.19 million for the nine months ended September 30, 2006, and were charged at an annualized rate of 0.40% of the adjusted daily net asset value.
- 6The Trust is a passive investment vehicle that issues and redeems shares solely in exchange for gold bullion, not cash, with transactions conducted through Authorized Participants.