10-QPeriod: Q1 FY2019

ISHARES GOLD TRUST Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 7, 2019For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported an increase in its Net Asset Value (NAV) for the quarter ending March 31, 2019. The Trust's total assets grew to $12,556,331,670 from $11,544,738,146 at the end of the previous year, primarily driven by an increase in the price of gold and significant share creation activity. During the quarter, 85.5 million Shares were created and 13.35 million Shares were redeemed, resulting in a net increase in outstanding shares and a corresponding rise in the Trust's assets under management. Despite a net investment loss, the Trust experienced a net increase in assets resulting from operations, largely due to unrealized appreciation in the value of its gold bullion holdings. The Sponsor's fee of 0.25% per annum continues to be the primary expense, slightly dampening the NAV growth relative to the gold price increase. For investors, the report indicates a positive trend in the Trust's value, reflecting the performance of gold prices during the period, with continued robust activity in the creation and redemption of Shares.

Financial Highlights

8 data points
Beta

Net Income

$112.40M

EPS (Diluted)

$0.22

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$7.62M
Operating Income-$7.62M
Net Income$112.40M
EPS (Basic)$0.22

Key Highlights

  • 1The Trust's Net Asset Value (NAV) per Share increased from $12.28 to $12.40 during the quarter ended March 31, 2019.
  • 2Total assets of the Trust grew by approximately 8.76% to $12,556,331,670 from $11,544,738,146 at the end of 2018.
  • 3There was significant activity in Share creation and redemption, with 85,500,000 Shares created and 13,350,000 Shares redeemed, leading to a net increase in outstanding Shares to 1,012,350,000.
  • 4The net increase in net assets resulting from operations was $112,404,575, primarily driven by an unrealized gain of $114,176,495 on gold bullion.
  • 5The price of gold saw a modest increase during the quarter, contributing to the rise in the Trust's NAV.
  • 6The Trust's only significant expense was the Sponsor's fee, which amounted to $7,619,352 for the quarter, equivalent to 0.25% of average assets.
  • 7The fair value of the gold bullion held by the Trust is classified as Level 1 within the fair value hierarchy, meaning it is based on unadjusted quoted prices in active markets.

Frequently Asked Questions

During the first quarter of 2019, the iShares Gold Trust (IAU) experienced an increase in its Net Asset Value (NAV) per Share, rising from $12.28 to $12.40. This growth was supported by an increase in the price of gold and significant activity in the creation and redemption of Trust Shares, leading to an overall increase in total assets.

The Trust's total assets grew from $11,544,738,146 at December 31, 2018, to $12,556,331,670 at March 31, 2019. This increase was primarily due to the appreciation in the value of the gold bullion held and the net creation of Shares.

The primary expense of the iShares Gold Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the Trust's net asset value. The Sponsor also assumes other administrative costs such as trustee fees, custodian fees, and listing fees, meaning the Sponsor's fee is the only direct expense of the Trust reported in its operations.

Individual investors cannot directly buy or sell Shares with the Trust. Instead, Shares are issued and redeemed by the Trust only in exchange for gold bullion through 'Authorized Participants,' which are typically registered broker-dealers. Investors typically buy and sell Shares on the NYSE Arca stock exchange through their brokerage accounts.