Summary
The iShares Gold Trust (IAU) reported a significant increase in its Net Asset Value (NAV) for the period ending June 30, 2020. Driven by a substantial rise in the price of gold, the Trust's NAV grew by 28.13% during the second quarter of 2020 and by 46.99% over the first six months of the year. This strong performance is primarily attributable to the appreciation of its sole asset, gold bullion, which saw its fair value increase significantly due to market conditions. The Trust experienced notable activity in its shares, with a net increase in outstanding shares driven by substantial contributions for new shares issued, outweighing redemptions. Despite the overall growth, the Trust's performance slightly lagged the raw increase in gold prices due to the accrual of sponsor's fees, which represent the primary operating expense. The report also highlights the ongoing impact of the COVID-19 pandemic, noting potential disruptions to gold supply chains and market volatility, although the Trust's operations remained effective through the period.
Financial Highlights
8 data points| Operating Expenses | $14.63M |
| Operating Income | -$14.63M |
| Net Income | $2.12B |
| EPS (Basic) | $2.94 |
Key Highlights
- 1Net Asset Value (NAV) increased by 28.13% in Q2 2020 and 46.99% in the first six months of 2020, driven by rising gold prices.
- 2The Trust holds only gold bullion as its primary asset, valued at $25.92 billion as of June 30, 2020, an increase from $17.63 billion at December 31, 2019.
- 3There was significant issuance of new shares during the period, with 409,250,000 shares issued and 85,000,000 shares redeemed in the first six months of 2020.
- 4Sponsor's fees, representing the primary expense, amounted to $14.6 million for Q2 2020 and $26.5 million for the first six months of 2020.
- 5The net increase in NAV per share was $1.47 for the three months ended June 30, 2020, and $2.28 for the six months ended June 30, 2020.
- 6The Trust's NAV per share ended the period at $16.88, up from $14.56 at the beginning of the year.
- 7The report notes the ongoing impact of COVID-19, including potential disruptions to the gold market and service providers, but indicates no material impact on the Trust's controls and procedures.