ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2016

Summary

The iShares Gold Trust (IAU) reported a significant increase in net assets for the quarter ended March 31, 2016, primarily driven by a substantial rise in the price of gold and an increase in the number of outstanding shares. The Trust's net asset value grew by 42.21% to $7.41 billion, with net asset value per share increasing from $10.25 to $11.93. This performance reflects the strong positive trend in gold prices during the period, which saw a 16.45% increase. Key operational figures show a net increase in assets from operations of $937.9 million, largely attributable to a substantial unrealized gain on its gold bullion holdings. The Trust experienced significant share creation activity, with 140.95 million new shares issued compared to 28.2 million redeemed, indicating strong investor demand. Despite a nominal net investment loss due to sponsor fees, the overall operational gains and capital inflows resulted in robust growth for the Trust.

Key Highlights

• 1Net Assets increased by 42.21% to $7.41 billion for the quarter ended March 31, 2016.
• 2Net Asset Value (NAV) per Share rose from $10.25 to $11.93, a 16.49% increase.
• 3The Trust experienced a significant net increase in net assets from operations of $937.9 million, primarily due to a large unrealized gain on gold bullion ($935.1 million).
• 4Investor demand was strong, with 140.95 million Shares created versus 28.2 million Shares redeemed during the quarter.
• 5Gold bullion holdings increased from 4,905.6 ounces at December 31, 2015, to 5,990.5 ounces at March 31, 2016.
• 6The Trust reported a net investment loss of $4.18 million for the quarter, primarily due to sponsor fees (0.25% of NAV).
• 7The Trust experienced an inadvertent issuance of 20.1 million unregistered shares between February 19 and March 3, 2016, which could expose the Trust to rescission rights or damages claims.

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