01—Abstract
Summary
Summary of the 10-Q filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
The iShares Gold Trust (IAU) reported an increase in its Net Asset Value (NAV) for the quarter ended March 31, 2024, driven primarily by a rise in the price of gold.
The Trust's total assets increased to $27.56 billiona, with the value of its gold bullion holdings appreciating significantly. Net assets saw a substantial increase of $1.87 billion resulting from operations, largely due to unrealized gains on gold bullion. Despite the positive operational results, the Trust experienced a net decrease in outstanding shares as redemptions (24.05 million shares) outpaced creations (4.95 million shares).
The Trust maintained its passive investment strategy, aiming to mirror the performance of gold prices before expenses. Expenses remain minimal, primarily consisting of the Sponsor's fee, which is set at an annualized rate of 0.25%b of NAV.
02—Key points
Key Highlights
- The Trust's Net Asset Value (NAV) per Share increased from $39.03 at December 31, 2023, to $41.88 at March 31, 2024, a gain of 7.30%.
- Total assets grew to $27.56 billion as of March 31, 2024, up from $26.43 billion at December 31, 2023, driven by the appreciation of gold bullion holdings.
- The Trust reported a net increase in net assets from operations of $1.87 billion for the three months ended March 31, 2024.
- Net realized and unrealized gains on gold bullion amounted to $1.89 billion for the quarter.
- The number of outstanding Shares decreased by 19.1 million, from 677.05 million to 657.95 million, as redemptions exceeded creations.
- Sponsor's fees for the quarter were $16.2 million, representing an annualized expense ratio of 0.25% of average assets.
- The Trust's investment in gold bullion is valued using the LBMA Gold Price PM and is categorized as a Level 1 asset in the fair value hierarchy.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 8, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Operating Expenses | $16.21M$16.71M | −3.0% |
| Operating Income | -$16.21M-$16.71M | +3.0% |
| Net Income | $1.87B$2.35B | −20.5% |
| EPS (Basic) | $2.81$3.11 | −9.6% |
05—Questions
Frequently Asked Questions
How did the iShares Gold Trust perform during the first quarter of 2024?
The iShares Gold Trust (IAU) experienced a positive performance during the first quarter of 2024. The Net Asset Value (NAV) per Share increased by 7.30%, reaching $41.88 by March 31, 2024. This growth was primarily driven by an increase in the price of gold bullion, which is the Trust's sole holding.
What are the main drivers of the Trust's Net Asset Value changes?
The primary driver of the Trust's Net Asset Value is the market price of gold bullion. For the quarter ended March 31, 2024, the appreciation of gold led to significant unrealized gains, contributing $1.67 billion to the net increase in assets. Realized gains from selling gold to cover expenses and distributing gold for share redemptions also contributed positively.
Did the number of Shares outstanding increase or decrease during the quarter?
The number of Shares outstanding for the iShares Gold Trust decreased during the quarter ended March 31, 2024. A total of 24.05 million Shares were redeemed, while only 4.95 million Shares were created, resulting in a net decrease of 19.1 million Shares outstanding.
What are the expenses associated with holding IAU?
The primary ongoing expense for the iShares Gold Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. For the first quarter of 2024, these fees amounted to $16.2 million. The Sponsor also assumes other administrative and marketing expenses, keeping the direct costs to the Trust minimal.
06—Continue