10-QPeriod: Q2 FY2019

ISHARES GOLD TRUST Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 6, 2019For Securities:IAU

Summary

The iShares Gold Trust (IAU) reported its financial results for the period ending June 29, 2019. The Trust experienced a significant increase in its Net Asset Value (NAV) driven by a rise in the price of gold. For the six months ended June 30, 2019, the Trust's NAV grew by 15.61%, from $11.54 billion to $13.35 billion, largely due to a 9.94% increase in the price of gold. This performance was further supported by net creations of Shares, indicating investor interest. Operationally, the Trust generated a net increase in assets of over $1.13 billion for the six-month period, primarily from unrealized gains on its gold bullion holdings and realized gains from distributions and sales for expenses. Despite a net investment loss due to sponsor fees, the overall operational performance was strongly positive. The Trust's structure as a passive investment vehicle focused on reflecting gold's performance means its financial results are directly tied to gold price movements and investor inflows/outflows.

Financial Highlights

8 data points
Beta

Net Income

$1.03B

EPS (Diluted)

$2.10

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$7.62M
Operating Income-$7.62M
Net Income$1.03B
EPS (Basic)$2.10

Key Highlights

  • 1Net Assets increased by 15.61% to $13.35 billion as of June 30, 2019, up from $11.54 billion at the end of 2018.
  • 2Net increase in net assets from operations for the six months ended June 30, 2019, was $1,139,692,805.
  • 3The Trust's investment in gold bullion, at fair value, rose to $13.35 billion from $11.55 billion over the period.
  • 4Net Asset Value (NAV) per Share increased by 9.77% to $13.48 for the six months ended June 30, 2019, from $12.28 at December 31, 2018.
  • 5The Trust experienced a net increase in Shares issued and outstanding of 49,700,000 for the six months ended June 30, 2019.
  • 6Sponsor's fees amounted to $15,240,757 for the six months ended June 30, 2019, representing an annualized expense ratio of 0.25% of average net assets.
  • 7Gold bullion held by the Trust is valued at Level 1 within the fair value hierarchy, indicating it is based on unadjusted quoted prices in active markets for identical assets.

Frequently Asked Questions

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

The Trust generates returns by holding physical gold bullion. Its performance is directly tied to the fluctuations in the market price of gold. Investors benefit from increases in the price of gold, while the Trust incurs losses if the price of gold declines.

The primary expense of the Trust is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the Trust's net asset value. Other administrative and marketing expenses are typically assumed by the Sponsor.

Individual investors cannot buy or redeem Shares directly with the Trust. They must transact through registered broker-dealers that are Authorized Participants, who then interact with the Trust for the creation and redemption of Shares in large aggregations (Baskets).