What changed in this filing

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Item 1. Financial Statements

2020-11-05 compared with 2020-08-05 · 136 added, 102 removed, 557 unchanged (30% of the section changed)

2 unchanged sentences

Commodity-Indexed Trust

Statements of Assets and Liabilities  

At June 30, 2020 and December 31, 2019

Statements of Assets and Liabilities (Unaudited)

At September 30, 2020 and December 31, 2019

September 30,

$ 12,365,282  

8 unchanged sentences

10,882,146  

Receivable for capital Shares sold

719,599,854  

781,761,523  

Liabilities  

Sponsor’s fees payable

1 unchanged sentence

465,837  

Payable for variation margin on open futures contracts (Note 9)

Payable for capital shares redeemed

1,077,393  

Payable for variation margin on open futures contracts (Note 9)  

5,952,581  

Total Liabilities

2 unchanged sentences

Commitments and contingent liabilities (Note 7)

$ 718,083,734  

15 unchanged sentences

Statements of Operations (Unaudited)

For the three and six months ended June 30, 2020 and 2019

For the three and nine months ended September 30, 2020 and 2019

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,  

Investment Income

9 unchanged sentences

( 275,413,702

Net realized loss

Net realized gain (loss)

( 275,352,582

9 unchanged sentences

Net increase (decrease) in net assets per Share based on average shares outstanding during the period.

Se e note s t o financial statements.

See notes to financial statements.

iShares S&P GSCI™

1 unchanged sentence

Statements of Changes in Net Assets (Unaudited)

For the three and six months ended June 30, 2020

Six Months Ended

June 3 0 , 2020

For the three, six and nine months ended September 30, 2020

Nine Months Ended

September 30, 2020

Net Assets at December 31, 2019

23 unchanged sentences

Net Assets at June 30, 2020

Net investment loss

Net realized gain

Net change in unrealized appreciation/depreciation

Net increase in net assets resulting from operations

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

Net increase in net assets from capital share transactions

Increase in net assets

Net Assets at September 30, 2020

Shares issued and redeemed

6 unchanged sentences

Statements of Changes in Net Assets (Unaudited)

For the three and six months ended June 30, 2019

Six Months Ended

June 3 0 , 2019

For the three, six and nine months ended September 30, 2019

Nine Months Ended September 30, 2019

Net Assets at December 31, 2018

26 unchanged sentences

Net Assets at June 30, 2019

Net investment income

Net realized gain

Net change in unrealized appreciation/depreciation

Net decrease in net assets resulting from operations

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

( 202,783,739

Net decrease in net assets from capital share transactions

( 116,309,775

Decrease in net assets

( 150,540,190

Net Assets at September 30, 2019

Shares issued and redeemed

6 unchanged sentences

Statements of Cash Flows (Unaudited)

For the six months ended June 30, 2020 and 2019

Six Months Ended

For the nine months ended September 30, 2020 and 2019

Nine Months Ended

September 30,

Cash Flows from Operating Activities

29 unchanged sentences

Unrestricted –

See notes to financial statements.

iShares S&P GSCI™

Commodity-Indexed Trust

iShares S&P GSCI™ Commodity-Indexed Trust

Schedules of Investments (Unaudited)

At June 30, 2020 and December 31, 2019

June 3 0 , 2020

At September 30, 2020 and December 31, 2019

September 30, 2020

Security Description

3 unchanged sentences

$ 74,999,310  

0.14 % due 07/07/20  

0.07% due 10/08/20

60,000,000  

59,999,256  

0.09 % –

0.13 % due 07/14/20  

0.14% due 10/13/20

30,000,000  

29,999,237  

0.09 % due 07/23/20  

0.12% due 10/15/20

40,000,000  

39,998,794  

0.13 % due 07/28/20  

0.07% –

0.09% due 10/20/20

37,500,000  

37,498,516  

0.12 % –

0.13 % due 08/04/20  

0.07% –

0.10% due 10/27/20

105,930,000  

105,924,071  

0.11 % – 

0.09% –

0.14% due 11/05/20

1 unchanged sentence

75,993,535  

0.12 % due 08/11/20  

0.10% due 11/12/20

40,000,000  

39,995,742  

0.12 % due 08/20/20  

0.08% due 11/17/20

35,000,000  

34,995,887  

0.12 % due 08/27/20  

0.08% due 11/24/20

20,000,000  

19,997,375  

0.12 % due 09/10/20  

0.10% due 11/27/20

30,000,000  

29,995,487  

0.14 % due 09/24/20  

0.11% due 12/03/20

25,000,000  

24,995,844  

0.14 % due 10/13/20  

0.10% due 12/08/20

32,000,000  

31,991,538  

Treasury bills (Cost:

0.11% due 01/21/21

40,000,000  

39,987,244  

Total Investments –

0.11% due 02/11/21

35,000,000  

34,986,423  

Other Assets, Less Liabilities –

0.11% due 02/18/21

15,000,000  

14,994,167  

Net Assets –

Treasury bills (Cost:

$696,349,281 )  

696,352,426  

Total Investments –

96.97%  

696,352,426  

Other Assets, Less Liabilities –

21,731,308  

Net Assets –

100.00%  

$ 718,083,734  

A portion of the above U.S.

1 unchanged sentence

Rates shown are discount rates paid at the time of purchase.

As of June 30, 2020, the open S&P GSCI-ER futures contracts were as follows:

As of September 30, 2020, the open S&P GSCI-ER futures contracts were as follows:

Number of Contracts  

4 unchanged sentences

45,484  

September 16, 2020  

December 15, 2020  

$ 718,092,295  

8 unchanged sentences

$ 49,990,521  

1.54 % – 

1.54% –

1.87% due 01/16/20

13 unchanged sentences

14,978,480  

1.88 % – 

1.88% –

1.93% due 02/06/20

10 unchanged sentences

14,964,767  

1.53 % – 

1.53% –

1.61% due 03/12/20

7 unchanged sentences

34,845,071  

1.55 % – 

1.55% –

1.61% due 04/23/20

8 unchanged sentences

Treasury bills (Cost:

$ 750,419,242 )  

750,519,365  

Total Investments –

96.80 %  

750,519,365  

Other Assets, Less Liabilities –

$750,419,242 )

750,519,365  

Total Investments –

750,519,365  

Net Assets –

Other Assets, Less Liabilities –

24,823,740  

Net Assets –

$ 775,343,105  

A portion of the above U.S.

(a) A portion of the above U.S.

Treasury bills are posted as margin for the Trust’s Index Futures positions as described in Note 2D.

Rates shown are discount rates paid at the time of purchase.

(b) Rates shown are discount rates paid at the time of purchase.

As of December 31, 2019, the open S&P GSCI-ER futures contracts were as follows:

12 unchanged sentences

Notes to Financial Statements (Unaudited)

June 30, 2020

1 - Organization

September 30, 2020

1 - Organization

The iShares S&P GSCI™

27 unchanged sentences

Investment Companies , but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

2  - Significant Accounting Policies

2 - Significant Accounting Policies

Basis of Accounting

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S.

The preparation of financial statements in conformity with U.S.

GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Actual results could differ from those estimates.

21 unchanged sentences

These investments are valued at fair value.

As of June 30, 2020 and December 31, 2019, the Trust had restricted short-term investments held at the broker of $ 55,726,170 and $ 29,438,936 , respectively, which were posted as margin for the Trust’s Index Futures positions.

As of September 30, 2020 and December 31, 2019, the Trust had restricted short-term investments held at the broker of $ 48,196,855 and $ 29,438,936 , respectively, which were posted as margin for the Trust’s Index Futures positions.

Securities Transactions and Income Recognition

5 unchanged sentences

Shareholders are individually responsible for their own tax payments on their proportionate share of income, gain, loss, deduction, expense and credit.

The Sponsor has analyzed the tax positions as of June 30, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

The Sponsor has analyzed the tax positions as of September 30, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Calculation of Net Asset Value

The net asset value of the Trust on any given day is obtained by subtracting the Trust’s accrued expenses and other liabilities on that day from the value of ( 1 ) the Trust’s Index Futures positions and Collateral Assets on that day, ( 2 ) the interest earned on those assets by the Trust and ( 3 ) any other assets of the Trust, as of 4:00 p.m.

The net asset value of the Trust on any given day is obtained by subtracting the Trust’s accrued expenses and other liabilities on that day from the value of ( 1 ) the Trust’s Index Futures positions and Collateral Assets on that day, ( 2 ) the interest earned on those assets by the Trust and ( 3 ) any other assets of the Trust, as of 4:00 p.m.

(New York time) that day.

6 unchanged sentences

The Trust is under no obligation to make periodic distributions to shareholders.

3  - Offering of the Shares

3 - Offering of the Shares

Shares are issued and redeemed continuously in one or more blocks of 50,000 Shares (the “Baskets”) in exchange for Index Futures and cash (or, in the discretion of the Sponsor, other Collateral Assets in lieu of cash).

7 unchanged sentences

A large sale or redemption of Shares of the Trust by Affiliates could significantly reduce the asset size of the Trust, which might have an adverse effect on the Trust and the Shares that remain outstanding.

4  - Trust Expenses

4 - Trust Expenses

The Trust is responsible for paying any applicable brokerage commissions and similar transaction fees out of its assets in connection with the roll of Index Futures held by the Trust.

4 unchanged sentences

( 1 ) the fees of the Trustee, the Delaware Trustee, the Advisor, the Trust Administrator, the processing agent and their respective agents, ( 2 ) NYSE Arca listing fees, ( 3 ) printing and mailing costs, ( 4 ) audit fees, ( 5 ) fees for registration of the Shares with the SEC, ( 6 ) tax reporting costs, ( 7 ) license fees and ( 8 ) legal expenses relating to the Trust of up to $ 100,000 annually.

5  - Related Parties

5 - Related Parties

The Sponsor, the Trustee and the Advisor are considered to be related parties to the Trust.

The Trustee’s and Advisor’s fees are paid by the Sponsor and are not a separate expense of the Trust.

6  - Indemnification

6 - Indemnification

The Trust Agreement provides that the Trustee shall indemnify the Sponsor, its directors, employees, delegees and agents against, and hold each of them harmless from, any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including reasonable fees and expenses of counsel) (i) caused by the negligence or bad faith of the Trustee or (ii) arising out of any information furnished in writing to the Sponsor by the Trustee expressly for use in the registration statement, or any amendment thereto or periodic report, filed with the SEC relating to the Shares that is not materially altered by the Sponsor.

The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries and agents shall be indemnified from the Trust and held harmless against any loss, liability, claim, cost, expense or judgment of any kind whatsoever (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement and incurred without their ( 1 ) negligence, bad faith or willful misconduct or ( 2 ) reckless disregard of their obligations and duties under the Trust Agreement.

The investment advisory agreement (the “Advisory Agreement”) between the Sponsor and the Advisor provides that the Advisor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability, cost, expense or judgment (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of their obligations under the Advisory Agreement or any actions taken in accordance with the provisions of the Advisory Agreement and incurred without their ( 1 ) negligence, bad faith or willful misconduct or ( 2 ) reckless disregard of their obligations and duties under the Advisory Agreement.

7  - Commitments and Contingent Liabilities

The investment advisory agreement (the “Advisory Agreement”) between the Sponsor and the Advisor provides that the Advisor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability, cost, expense or judgment (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of their obligations under the Advisory Agreement or any actions taken in accordance with the provisions of the Advisory Agreement and incurred without their ( 1 ) negligence, bad faith or willful misconduct or ( 2 ) reckless disregard of their obligations and duties under the Advisory Agreement.

7 - Commitments and Contingent Liabilities

In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses.

The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

8  - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and six months ended June 30, 2020 and 2019.

8 - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and nine months ended September 

2020 and 2019.

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Net asset value per Share, beginning of period

14 unchanged sentences

The Index Futures’

settlement value at expiration is based on the value of the S&P GSCI‑ER at that time.

settlement value at expiration is based on the value of the S&P GSCI‑ER at that time.

Therefore, the value of the Trust will fluctuate based upon the value of the S&P GSCI-ER and the prices of futures contracts and commodities underlying the S&P GSCI-ER.

The commodities markets have historically been extremely volatile.

For the six months ended June 30, 2020 and the year ended December 31, 2019, the average month-end notional amounts of open Index Futures were $ 615,128,927 and $ 960,422,151 , respectively.

The following table shows the variation margin on open futures contracts, by risk exposure category, on the statements of assets and liabilities as of June 

2020 and December 31, 2019:

For the nine months ended September 

2020 and the year ended December 

2019, the average month-end notional amounts of open Index Futures were $ 643,358,116 and $ 960,422,151 , respectively.

The following table shows the variation margin on open futures contracts, by risk exposure category, on the statements of assets and liabilities as of September 30, 2020 and December 31, 2019:

Asset Derivatives

Liability Derivatives

June 30, 2020

September 30, 2020

Commodity contracts

5 unchanged sentences

Payable for variation margin on open futures contracts

The following table shows the effect of the open futures contracts, by risk exposure category, on the statements of operations for the three months and six ended June 30, 2020 and 2019:

The following table shows the effect of the open futures contracts, by risk exposure category, on the statements of operations for the three months and nine ended September 30, 2020 and 2019:

Statements of

2 unchanged sentences

Appreciation/Depreciation

Three Months Ended June 30, 2020

Three Months Ended September 30, 2020

Commodity contracts

1 unchanged sentence

Net change in unrealized appreciation/depreciation on futures contracts

Three Months Ended June 30, 201 9

Three Months Ended September 30, 2019

Commodity contracts

1 unchanged sentence

Net change in unrealized appreciation/depreciation on futures contracts

Six Months Ended June 30, 20 20

Nine Months Ended September 30, 2020

Commodity contracts

2 unchanged sentences

Net change in unrealized appreciation/depreciation on futures contracts

Six Months Ended June 30, 201 9

Nine Months Ended September 30, 2019

Commodity contracts

5 unchanged sentences

Investments in Index Futures are measured at fair value on the basis of that day’s settlement price for Index Futures as announced by the applicable Exchange.

If there is no announced settlement price for a particular Index Futures contract on a Business Day, the Trustee uses the most recently announced settlement price unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for valuation. 

Treasury bills are valued at the last available bid price received from independent pricing services.

12 unchanged sentences

Fair value pricing could result in a difference between the prices used to calculate the Trust’s net asset value and the prices used by the Trust’s underlying index, which in turn could result in a difference between the Trust’s performance and the performance of the Trust’s underlying index.

The following table summarizes the value of each of the Trust’s investments by the fair value hierarchy levels as of June 30, 2020 and December 31, 2019:

June 3 0 , 2020

The following table summarizes the value of each of the Trust’s investments by the fair value hierarchy levels as of September 30, 2020 and December 

September 30, 2020

Futures contracts (a)

5 unchanged sentences

Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10‑Q.

This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10 ‑

The discussion and analysis that follows may contain statements that relate to future events or future performance.

72 unchanged sentences

Results of Operations

The Quarter Ended June 3 0 , 2020

The Trust’s net asset value increased from $501,546,756 at March 31, 2020 to $609,244,207 at June 30, 2020.

The increase in the Trust’s net asset value resulted primarily from a net increase in net assets resulting from operations.

The Trust’s net asset value also benefitted from an increase in the number of outstanding Shares, which rose from 53,500,000 Shares at March 31, 2020 to 59,000,000 Shares at June 30, 2020, a consequence of 7,650,000 Shares (153 Baskets) being created and 2,150,000 Shares (43 Baskets) being redeemed during the quarter.

The 10.25% increase in the Trust’s NAV from $9.37 at March 31, 2020 to $10.33 at June 30, 2020 is directly related to the 10.43% increase in the settlement price for the Index Futures.

The Quarter Ended September 30, 2020

The Trust’s net asset value increased from $609,244,207 at June 30, 2020 to $718,083,734 at September 30, 2020.

The increase in the Trust’s net asset value resulted primarily from a net increase in the number of outstanding Shares which rose from 59,000,000 Shares at June 30, 2020 to 66,650,000 Shares at September 30, 2020, a consequence of 10,550,000 Shares (211 Baskets) being created and 2,900,000 Shares (58 Baskets) being redeemed during the quarter.

The Trust’s net asset value also benefited from a net increase in net assets resulting from operations.

The 4.26% increase in the Trust’s NAV from $10.33 at June 30, 2020 to $10.77 at September 30, 2020 is directly related to the 4.57% increase in the settlement price for the Index Futures.

The Trust’s NAV increased slightly less than the settlement price for the Index Futures on a percentage basis due to the Sponsor’s fees and brokerage commissions.

Net increase in net assets resulting from operations for the quarter ended June 30, 2020 was $57,709,585, resulting from a net investment loss of $419,416 and a net realized and unrealized gain of $58,129,001.

For the quarter ended June 30, 2020, the Trust had a net realized and unrealized loss of $686,574 on short-term investments and a net realized and unrealized gain of $58,815,575 on futures contracts.

Net increase in net assets resulting from operations for the quarter ended September 30, 2020 was $26,808,143, resulting from a net investment loss of $1,379,227 and a net realized and unrealized gain of $28,187,370.

For the quarter ended September 30, 2020, the Trust had a net realized and unrealized loss of $11,369 on short-term investments and a net realized and unrealized gain of $28,198,739 on futures contracts.

Other than the Sponsor’s fees of $1,309,010 and brokerage commissions and fees of $274,439, the Trust had no expenses during the quarter.

The Six-Month Period Ended June 30, 2020

The Trust’s net asset value decreased from $775,343,105 at December 31, 2019 to $609,244,207 at June 30, 2020.

The Nine -Month Period Ended September 30, 2020

The Trust’s net asset value decreased from $775,343,105 at December 31, 2019 to $718,083,734 at September 30, 2020.

The decrease in the Trust’s net asset value resulted primarily from a net decrease in net assets resulting from operations.

The decrease in the Trust’s net asset value was partially offset by an increase in the number of outstanding Shares, which rose from 47,750,000 Shares at December 31, 2019 to 59,000,000 Shares at June 30, 2020, a consequence of 17,100,000 Shares (342 Baskets) being created and 5,850,000 Shares (117 Baskets) being redeemed during the period.

The 36.39% decrease in the Trust’s NAV from $ 16.24 at December 31, 2019 to $ 10.33 at June 30, 2020 is directly related to the 36.52% decrease in the settlement price for the Index Futures.

The Trust’s NAV decreased slightly less than the settlement price for the Index Futures on a percentage basis due to interest income from Treasury bills.

Net decrease in net assets resulting from operations for the period was $310,391,805, resulting from a net investment income of $608,839 and a net realized and unrealized loss of $311,000,644.

For the six months ended June 30, 2020, the Trust had a net realized and unrealized loss of $24,490 on short-term investments and a net realized and unrealized loss of $310,976,154 on futures contracts.

The decrease in the Trust’s net asset value was partially offset by an increase in the number of outstanding Shares, which rose from 47,750,000 Shares at December 31, 2019 to 66,650,000 Shares at September 30, 2020, a consequence of 27,650,000 Shares (553 Baskets) being created and 8,750,000 Shares (175 Baskets) being redeemed during the period.

The 33.68% decrease in the Trust’s NAV from $16.24 at December 31, 2019 to $10.77 at September 30, 2020 is directly related to the 33.62% decrease in the settlement price for the Index Futures.

The Trust’s NAV decreased slightly more than the settlement price for the Index Futures on a percentage basis due to the Sponsor’s fees and brokerage commissions.

Net decrease in net assets resulting from operations for the period was $283,583,662, resulting from a net investment loss of $770,388 and a net realized and unrealized loss of $282,813,274.

For the nine months ended September 30, 2020, the Trust had a net realized and unrealized loss of $35,859 on short‑term investments and a net realized and unrealized loss of $282,777,415 on futures contracts.

Other than the Sponsor’s fees of $3,609,289 and brokerage commissions and fees of $741,568, the Trust had no expenses during the period.

Liquidity and Capital Resources

The Trust’s assets as of June 30, 2020 consist of Index Futures and Collateral Assets used to satisfy applicable margin requirements for those Index Futures positions.

The Trust’s assets as of September 30, 2020 consist of Index Futures and Collateral Assets used to satisfy applicable margin requirements for those Index Futures positions.

The Trust does not anticipate any further need for liquidity, because creations and redemptions of Shares generally occur in-kind and ordinary expenses are met by cash on hand.

2 unchanged sentences

In the case of an extraordinary expense and/or insufficient interest income to cover ordinary expenses, however, the Trust could be forced to liquidate its positions in Index Futures and Collateral Assets to pay such expenses.

As of June 30, 2020, the market for Index Futures had not developed significant liquidity and the Trust represented substantially all of the long-side open interest in Index Futures.

As of September 30, 2020, the market for Index Futures had not developed significant liquidity and the Trust represented substantially all of the long-side open interest in Index Futures.

In addition, it is expected that Goldman Sachs & Co.

22 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements