NEW YORK--(BUSINESS WIRE)--
iShares Delaware Trust Sponsor LLC, in its capacity as the sponsor of
iShares Gold Trust (IAU), today announced changes to the pricing source
used in the evaluation of IAU’s gold. With effect from March 20, 2015,
IAU will use the LBMA Gold Price PM when determining the net asset value
of IAU.
On February 19, 2015, the London Bullion Market Association (LBMA)
announced that it had selected ICE Benchmark Administration (IBA) to
calculate the LBMA Gold Price. The IBA will operate a physically
settled, electronic and tradable auction process.
This change in pricing source will not affect IAU’s investment
objective, which will continue to seek to reflect generally the
performance of the price of gold, less IAU’s expenses and liabilities.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2014, BlackRock’s AUM was $4.652 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
September 30, 2014, the firm had approximately 12,100 employees in more
than 30 countries and a major presence in key global markets, including
North and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com
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About iShares
iShares is a global leader in exchange-traded funds (ETFs), with more
than a decade of expertise and commitment to individual and
institutional investors of all sizes. With over 700 funds globally
across multiple asset classes and strategies and more than $1 trillion
in assets under management as of December 31, 2014, iShares helps
clients around the world build the core of their portfolios, meet
specific investment goals and implement market views. iShares
funds are powered by the expert portfolio and risk management of
BlackRock, trusted to manage more money than any other investment firm.1
iShares Gold Trust (the “Trust”) has filed a registration statement
(including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus
and other documents the Trust has filed with the SEC for more complete
information about the issuer and this offering. You may get these
documents for free by visiting www.iShares.com
or EDGAR on the SEC website at www.sec.gov.
Alternatively, the Trust will arrange to send you the prospectus if you
request it by calling toll-free 1-800-474-2737.
Investing involves risk, including possible loss of principal.
Because shares of the Trust are intended to reflect the price of the
gold held by the Trust, the market price of the shares is subject to
fluctuations similar to those affecting gold prices. Additionally,
shares of the Trust are bought and sold at market price, not at net
asset value ("NAV"). Brokerage commissions will reduce returns.
Shares of the Trust are intended to reflect, at any given time, the
market price of gold owned by the Trust at that time less the Trust's
expenses and liabilities. The price received upon the sale of the
shares, which trade at market price, may be more or less than the value
of the gold represented by such shares. If an investor sells the shares
at a time when no active market for them exists, such lack of an active
market will most likely adversely affect the price received for the
shares. For a more complete discussion of the risk factors relative
to the Trust, carefully read the prospectus.
Following an investment in shares of the Trust, several factors may have
the effect of causing a decline in the prices of gold and a
corresponding decline in the price of the shares. Among them: (i) Large
sales by the official sector. A significant portion of the aggregate
world gold holdings is owned by governments, central banks and related
institutions. If one or more of these institutions decides to sell in
amounts large enough to cause a decline in world gold prices, the price
of the shares will be adversely affected; (ii) A significant increase in
gold hedging activity by gold producers. Should there be an increase in
the level of hedge activity of gold producing companies, it could cause
a decline in world gold prices, adversely affecting the price of the
shares; and (iii) A significant change in the attitude of speculators
and investors towards gold. Should the speculative community take a
negative view towards gold, it could cause a decline in world gold
prices, negatively impacting the price of the shares.
Gold Spot Prices provided by The Bullion Desk. No warranty is given for
the accuracy of these prices and no liability is accepted for reliance
thereon. Prices are provided on a reasonable efforts basis and delays
may occur both because of the delay in third parties communicating the
information to the site and because of delays inherent in posting
information over the internet. Prices shown are indicative only and do
not represent actionable quotations on prices of actual trades.
The amount of gold represented by shares of the Trust will decrease over
the life of the Trust due to sales of gold necessary to pay the
sponsor's fee and trust expenses. Without increases in the price of gold
sufficient to compensate for that decrease, the price of the shares will
also decline, and investors will lose money on their investment. The
Trust will have limited duration. The liquidation of the Trust may occur
at a time when the disposition of the Trust's gold will result in losses
to investors. Although market makers will generally take advantage of
differences between the NAV and the trading price of Trust shares
through arbitrage opportunities, there is no guarantee that they will do
so. There is no guarantee an active trading market will develop for the
shares, which may result in losses on your investment at the time of
disposition of your shares. The value of the shares of the Trust will be
adversely affected if gold owned by the Trust is lost or damaged in
circumstances in which the Trust is not in a position to recover the
corresponding loss. The Trust is a passive investment vehicle. This
means that the value of your shares may be adversely affected by Trust
losses that, if the Trust had been actively managed, might have been
avoidable.
Shares of the Trust are not deposits or other obligations of or
guaranteed by BlackRock, Inc., and its affiliates, and are not insured
by the Federal Deposit Insurance Corporation or any other governmental
agency. The sponsor of the Trust is iShares Delaware Trust Sponsor LLC
(the “Sponsor”). BlackRock Investments, LLC ("BRIL"), assists in the
promotion of the Trust. The Sponsor and BRIL are affiliates of
BlackRock, Inc. Although shares of the iShares Gold Trust may be bought
or sold on the secondary market through any brokerage account, shares of
the Trust are not redeemable from the Trust except in large aggregated
units called "Baskets". Only registered broker-dealers that become
authorized participants by entering into a contract with the sponsor and
the trustee of the Trust may purchase or redeem Baskets.
All references to LBMA Gold Price are used with the permission of ICE
Benchmark Administration Limited and have been provided for
informational purposes only. ICE Benchmark Administration Limited
accepts no liability or responsibility for the accuracy of the prices or
the underlying product to which the prices may be referenced.
©2015 BlackRock. All rights reserved. iSHARES and BLACKROCK
are registered trademarks of BlackRock. All other marks are the property
of their respective owners. iS-15044-0315
1 Based on 4.652T in AUM as of 12/31/14.
BlackRock, Inc.
Melissa Garville, 212-810-5528
Melissa.Garville@blackrock.com
or
Diane
Henry, 415-670-4567
Diane.Henry@blackrock.com
Source: BlackRock, Inc.