Summary
This Form 8-K filing by iShares® COMEX® Gold Trust (IAU) on June 30, 2010, announces two significant operational adjustments. Firstly, the Custodian Agreement with The Bank of New York Mellon and the Bank of Nova Scotia was amended to increase the maximum value of gold the custodian can hold to $10 billion. This expansion of custodial capacity suggests a positive outlook on potential growth in assets under management for the trust. Secondly, and critically for investors, the annual sponsor fee was reduced from its previous rate to 0.25% of the Trust's adjusted net asset value, effective July 1, 2010. This fee reduction directly benefits shareholders by increasing the net return on their investment. Investors in IAU should view these updates favorably, as they indicate enhanced operational flexibility and a more cost-effective structure for the trust.
Key Highlights
- 1The maximum value of gold the custodian can hold has been increased to $10 billion through an amendment to the Custodian Agreement.
- 2The sponsor fee for the iShares® COMEX® Gold Trust has been reduced to 0.25% of the adjusted net asset value.
- 3This fee reduction is effective from July 1, 2010.
- 4The amendments were executed by The Bank of New York Mellon (Trustee), Bank of Nova Scotia (Custodian), and BlackRock Asset Management International Inc. (Sponsor).
- 5The filing signifies a move towards greater operational capacity and improved cost efficiency for the Trust.
- 6Exhibit 4.1 details the Third Amendment to the Depositary Trust Agreement regarding the sponsor fee.
- 7Exhibit 10.1 details the Amendment to the Custody Agreement concerning the increased gold holding capacity.