10-QPeriod: Q2 FY2015

ISHARES GOLD TRUST Quarterly Report for Q2 Ended Jun 30, 2015

Filed August 7, 2015For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported its financial results for the period ending June 30, 2015. During this quarter, the Trust saw an increase in its net asset value, primarily driven by an increase in the number of outstanding Shares. However, this growth was partially offset by a decline in the LBMA Gold Price PM. The Trust's assets consist almost entirely of gold bullion, exposing investors to the price fluctuations of this commodity. The Trust's operational performance for the quarter reflected a net investment loss due to sponsor fees, coupled with a net realized and unrealized loss on its gold holdings. The Trust continues to operate as a passive investment vehicle, aiming to mirror the price of gold, with its shares being created and redeemed in large blocks by authorized participants through exchanges of gold bullion.

Financial Highlights

9 data points
Beta

Net Income

-$91.10M

EPS (Diluted)

$-0.32

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$3.97M
Operating Income-$3.97M
Net Income-$91.10M
EPS (Basic)$-0.32
Shares Outstanding (Basic)276.49M

Key Highlights

  • 1Net Asset Value (NAV) per Share decreased to $11.32 as of June 30, 2015, from $11.61 at December 31, 2014, reflecting a decline in gold prices.
  • 2The Trust's total assets, primarily composed of gold bullion, stood at $6,317,125,000 as of June 30, 2015.
  • 3For the six months ended June 30, 2015, the Trust reported a net decrease in net assets of $172,591,809, largely due to a net change in unrealized depreciation on its gold holdings.
  • 4Total expenses for the six months ended June 30, 2015, were $7,963,555, primarily consisting of sponsor fees.
  • 5The number of Shares outstanding increased significantly from 535,400,000 at December 31, 2014, to 558,050,000 at June 30, 2015, indicating increased investor interest or creation activity.
  • 6The Trust's investment in gold bullion is valued at fair value using the LBMA Gold Price PM, with a note about the transition from the London PM Fix benchmark.
  • 7The Trust's primary risk factor is the concentration of its assets in gold bullion, making it susceptible to gold price volatility.

Frequently Asked Questions

The primary asset held by the iShares Gold Trust (IAU) is gold bullion. The Trust is designed to reflect the performance of the price of gold.

The net asset value per Share is calculated by dividing the Trust's total net assets (value of gold bullion minus liabilities) by the number of Shares outstanding on any given business day. The gold bullion is valued using the LBMA Gold Price PM.

The main expense for the iShares Gold Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the net asset value. The Sponsor also assumes other administrative and marketing expenses.

Individual investors cannot directly buy or redeem Shares from the Trust. Shares are issued and redeemed in large aggregations (baskets) through registered broker-dealers known as Authorized Participants, who then trade them on the open market (NYSE Arca).