10-QPeriod: Q1 FY2013

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 9, 2013For Securities:IAU

Summary

This filing for the iShares Gold Trust (IAU) for the quarter ending March 31, 2013, indicates a decline in the Trust's net asset value, primarily driven by a decrease in the price of gold. The net asset value per share decreased by 3.96% to $15.54, mirroring the 3.95% drop in the London PM Fix price for gold. This decline, while significant, was slightly exacerbated by the Trust's operational expenses, specifically the Sponsor's fees, which represented approximately 0.06% of the average weighted assets during the quarter. Despite the decrease in the value of its gold holdings, the Trust generated a substantial net income of $144.99 million, largely due to significant gains realized on gold distributed for share redemptions. The Trust experienced a net decrease in outstanding shares, with redemptions exceeding creations, reflecting investor sentiment during the period. The Trust continues to operate as a passive investment vehicle, with its Shares designed to track the price of gold, less expenses.

Financial Highlights

12 data points
Beta

Net Income

$144.99M

EPS (Diluted)

$0.40

Total Assets

$9.19B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$7.02M
Net Income$144.99M
EPS (Basic)$0.40
Shares Outstanding (Basic)358.67M

Key Highlights

  • 1Net Asset Value (NAV) per Share decreased by 3.96% to $15.54, reflecting a decline in gold prices.
  • 2The Trust reported a net income of $144.99 million for the quarter, primarily driven by gains on gold distributed for share redemptions.
  • 3Total assets of the Trust decreased to $9.19 billion from $9.32 billion at the end of the prior fiscal year.
  • 4Outstanding Shares decreased from 719.55 million to 701.60 million, indicating net redemptions during the quarter.
  • 5Sponsor's fees, the primary expense, amounted to $7.02 million for the quarter.
  • 6The Trust holds approximately 6,821 ounces of gold bullion valued at $10.90 billion at fair value as of March 31, 2013.
  • 7The Trust continues to operate as a passive investment vehicle, with its objective being to track the price of gold less expenses.

Frequently Asked Questions

The primary driver of the iShares Gold Trust's performance is the price of gold bullion. The Trust's objective is for the value of its Shares to reflect the price of gold it holds, less its expenses and liabilities.

The Trust's net asset value per Share decreased by 3.96% from $16.18 at December 31, 2012, to $15.54 at March 31, 2013. This decline is directly related to the 3.95% decrease in the London PM Fix price of gold during the same period.

The main ongoing expense for the Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the net asset value. For the quarter ended March 31, 2013, these fees totaled $7.02 million. The Sponsor also assumes other administrative and marketing expenses.

Shares are created and redeemed by Authorized Participants, which are typically registered broker-dealers. These transactions involve the exchange of gold bullion for Shares, rather than cash. Individual investors cannot directly create or redeem Shares with the Trust.