10-QPeriod: Q1 FY2018

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2018

Filed May 7, 2018For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported a net asset value of $11.55 billion as of March 31, 2018, a notable increase from $10.15 billion at the end of 2017. This growth was driven by both an increase in outstanding shares, reflecting strong investor inflows, and a rise in the price of gold during the quarter. The Trust's net asset value per share also increased to $12.71 from $12.45, mirroring the appreciation in gold prices. The Trust's operations for the first quarter of 2018 resulted in a net increase in assets of approximately $201.2 million. This increase was primarily attributable to a significant unrealized gain on its gold bullion holdings, partially offset by sponsor fees. The Trust operates as a passive investment vehicle, aiming to track the price of gold, and its primary source of liquidity remains its holdings of gold bullion.

Financial Highlights

8 data points
Beta

Net Income

$201.21M

EPS (Diluted)

$0.46

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$6.86M
Operating Income-$6.86M
Net Income$201.21M
EPS (Basic)$0.46

Key Highlights

  • 1Total Assets under management grew to $11.55 billion as of March 31, 2018, up from $10.15 billion as of December 31, 2017.
  • 2Net Asset Value (NAV) per Share increased to $12.71 as of March 31, 2018, compared to $12.45 as of December 31, 2017.
  • 3The Trust experienced a net increase in net assets resulting from operations of $201.2 million for the three months ended March 31, 2018.
  • 4A significant unrealized appreciation in the value of gold bullion, amounting to $205.5 million, was the primary driver of operational gains.
  • 5Investor inflows were substantial, with 96.9 million shares created during the quarter, contributing to the growth in total assets.
  • 6Sponsor's fees for the quarter were $6.86 million, representing 0.25% of the Trust's average net asset value.

Frequently Asked Questions

The primary driver was the appreciation in the price of gold, leading to a significant unrealized gain on the Trust's gold bullion holdings, coupled with substantial investor inflows indicated by the creation of new shares.

The Trust's expenses are primarily limited to the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the net asset value. The Sponsor assumes most other administrative and marketing expenses.

Individual investors cannot directly buy or redeem shares from the Trust. Instead, they must transact through registered broker-dealers known as Authorized Participants, who interact directly with the Trust for the creation and redemption of shares in large blocks (baskets).