Summary
The iShares COMEX Gold Trust (IAU) 10-Q filing for the quarter ended March 31, 2010, indicates a slight decrease in the Trust's total assets, primarily due to a net redemption of shares, despite an increase in the price of gold. The Trust holds physical gold bullion as its primary asset. Its objective is to reflect the price of gold, less expenses. The net asset value per share saw a modest increase, slightly underperforming the rise in gold prices due to the impact of sponsor fees. The financial statements show a decrease in gold bullion inventory from $1.91 billion to $1.87 billion. Net income for the quarter was $31.9 million, an increase from the prior year's $23.4 million, driven by gains on gold distributions for share redemptions and sales to cover expenses, offset by sponsor fees. The Trust continues to operate as a passive investment vehicle, with shares issued and redeemed in exchange for gold, not cash.
Financial Highlights
2 data points| Operating Expenses | $2.75M |
| Net Income | $31.94M |
Key Highlights
- 1Total assets decreased slightly to $1.87 billion as of March 31, 2010, down from $1.91 billion at year-end 2009.
- 2Net income for the quarter ended March 31, 2010, was $31.9 million, an increase compared to $23.4 million for the same period in 2009.
- 3The Trust experienced a net redemption of shares during the quarter, with 1,050,000 shares redeemed versus 300,000 shares issued.
- 4The fair value of gold bullion held decreased to $2.75 billion from $2.79 billion.
- 5Sponsor's fees amounted to $2.75 million for the quarter, representing the Trust's primary expense.
- 6The net asset value per share increased from $107.39 at December 31, 2009, to $109.06 at March 31, 2010.
- 7The Trust's gold holdings are valued using the COMEX Spot Settlement Price and are accounted for at the lower of cost or market.