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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

 

x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2012.

 

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from             to             

Commission file numbers : 001-32947 (registrant)

                                                     001-32948 (co-registrant)

 

 

iShares® S&P GSCI™ Commodity-Indexed Trust

iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

(Rule 140 co-registrant)

(Exact name of registrant as specified in its charter)

 

 

 

  51-6573369 (registrant)
Delaware   34-2061331 (co-registrant)
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification Numbers)

c/o BlackRock Asset Management International Inc.

400 Howard Street

San Francisco, California 94105

Attn: Product Management Team

iShares® Product Research & Development

(Address of principal executive offices)

(415) 670-2000

(Registrant and co-registrant’s telephone number, including area code)

 

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the registrant and co-registrant (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant and co-registrant were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   x  (registrant)    Accelerated filer      ¨
Non-accelerated filer  

 

¨

   Smaller reporting company      ¨

(Do not check if a smaller reporting company)

       

Indicate by check mark whether the registrant and co-registrant are shell companies (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

 

 

 


Table of Contents

Table of Contents

 

         Page  
PART I – FINANCIAL INFORMATION   

Item 1.  

  Financial Statements      1   
  iShares® S&P GSCI™ Commodity-Indexed Trust   
  Statements of Financial Condition at September 30, 2012 (Unaudited) and December 31, 2011      1   
  Statements of Operations (Unaudited) for the three and nine months ended September 30, 2012 and 2011      2   
  Statements of Changes in Shareholders’ Capital for the nine months ended September 30, 2012 (Unaudited) and the year ended December 31, 2011      3   
  Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2012 and 2011      4   
  Notes to Financial Statements (Unaudited)      5   
  iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC   
  Statements of Financial Condition at September 30, 2012 (Unaudited) and December 31, 2011      9   
  Statements of Operations (Unaudited) for the three and nine months ended September 30, 2012 and 2011      10   
  Statements of Changes in Members’ Equity for the nine months ended September 30, 2012 (Unaudited) and the year ended December 31, 2011      11   
  Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2012 and 2011      12   
  Schedule of Investments (Unaudited) at September 30, 2012      13   
  Notes to Financial Statements (Unaudited)      14   

Item 2.  

  Management’s Discussion and Analysis of Financial Condition and Results of Operations      20   

Item 3.  

  Quantitative and Qualitative Disclosures About Market Risk      23   

Item 4.  

  Controls and Procedures      24   
PART II – OTHER INFORMATION   

Item 1.  

  Legal Proceedings      25   

Item 1A.  

  Risk Factors      25   

Item 2.  

  Unregistered Sales of Equity Securities and Use of Proceeds      28   

Item 3.  

  Defaults Upon Senior Securities      28   

Item 4.  

  Mine Safety Disclosures      28   

Item 5.  

  Other Information      28   

Item 6.  

  Exhibits      29   

SIGNATURES

     30   


Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

iShares® S&P GSCI™ Commodity-Indexed Trust

Statements of Financial Condition

At September 30, 2012 (Unaudited) and December 31, 2011

 

     September 30,
2012
     December 31,
2011
 

Assets

  

Current Assets

  

Investment in iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

   $ 1,325,611,094       $ 1,313,291,939   
  

 

 

    

 

 

 

Total Assets

   $ 1,325,611,094       $ 1,313,291,939   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Capital

  

Current Liabilities

  

Commitments and Contingent Liabilities (Note 7)

   $ —         $ —     

Redeemable capital Shares, no par value, unlimited amount authorized (at redemption value) - 38,950,000 issued and outstanding at September 30, 2012 and 39,750,000 issued and outstanding at December 31, 2011

     1,325,611,094         1,313,291,939   
  

 

 

    

 

 

 

Total Shareholders’ Capital

     1,325,611,094         1,313,291,939   
  

 

 

    

 

 

 

Total Liabilities and Shareholders’ Capital

   $ 1,325,611,094       $ 1,313,291,939   
  

 

 

    

 

 

 

See notes to financial statements.

 

1


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Statements of Operations (Unaudited)

For the three and nine months ended September 30, 2012 and 2011

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2012     2011     2012     2011  

Investment Income Allocated from iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

        

Interest

   $ 317,614      $ 262,341      $ 685,021      $ 1,593,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     317,614        262,341        685,021        1,593,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses Allocated from iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

        

Management fee

     2,440,656        2,789,149        7,431,062        9,692,786   

Brokerage commissions and fees

     —          1,320        3,630        759,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     2,440,656        2,790,469        7,434,692        10,452,632   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment loss

     (2,123,042     (2,528,128     (6,749,671     (8,859,379
  

 

 

   

 

 

   

 

 

   

 

 

 

Realized and Unrealized Gain (Loss) Allocated from iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

        

Net realized gain (loss) on short-term investments

     —          25,268        (1,604     183,325   

Net realized gain (loss) on futures contracts

     (55,078     (7,899,285     (9,755,133     173,197,510   

Net change in unrealized appreciation/depreciation on futures contracts

     136,069,574        (149,211,673     48,686,331        (311,566,496
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

     136,014,496        (157,085,690     38,929,594        (138,185,661
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss)

   $ 133,891,454      $ (159,613,818   $ 32,179,923      $ (147,045,040
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss) per Share

   $ 3.45      $ (5.10   $ 0.81      $ (3.01

Weighted-average Shares outstanding

     38,782,065        31,321,196        39,547,993        48,844,322   

See notes to financial statements.

 

2


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Statements of Changes in Shareholders’ Capital

For the nine months ended September 30, 2012 (Unaudited)

and the year ended December 31, 2011

 

     Nine Months
Ended
September 30, 2012
    Year Ended
December 31, 2011
 

Shareholders’ Capital, Beginning of Period

   $ 1,313,291,939      $ 1,799,879,995   

Contributions

     53,845,870        90,651,034   

Redemptions

     (73,706,638     (539,534,773

Net investment loss

     (6,749,671     (11,297,295

Net realized gain (loss) on short-term investments

     (1,604     184,876   

Net realized gain (loss) on futures contracts

     (9,755,133     165,820,763   

Net change in unrealized appreciation/ depreciation on futures contracts

     48,686,331        (192,412,661
  

 

 

   

 

 

 

Shareholders’ Capital, End of Period

   $ 1,325,611,094      $ 1,313,291,939   
  

 

 

   

 

 

 

Net Asset Value per Share, End of Period

   $ 34.03      $ 33.04   

See notes to financial statements.

 

3


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Statements of Cash Flows (Unaudited)

For the nine months ended September 30, 2012 and 2011

 

     Nine Months Ended
September 30,
 
     2012     2011  

Cash Flows from Operating Activities

    

Net gain (loss)

   $ 32,179,923      $ (147,045,040

Adjustments to reconcile net gain (loss) to net cash provided by operating activities:

    

(Increase) decrease in investment in iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

     (12,319,155     535,909,342   
  

 

 

   

 

 

 

Net cash provided by operating activities

     19,860,768        388,864,302   
  

 

 

   

 

 

 

Cash Flows from Financing Activities

    

Contributions

     53,845,870        90,651,034   

Redemptions

     (73,706,638     (479,515,336
  

 

 

   

 

 

 

Net cash used in financing activities

     (19,860,768     (388,864,302
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     —          —     
  

 

 

   

 

 

 

Cash and Cash Equivalents

    

Beginning of period

     —          —     
  

 

 

   

 

 

 

End of period

   $ —        $ —     
  

 

 

   

 

 

 

See notes to financial statements.

 

4


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Notes to Financial Statements (Unaudited)

At September 30, 2012

1 - Organization

The iShares® S&P GSCI™ Commodity-Indexed Trust (the “Trust”) was organized as a Delaware statutory trust on July 7, 2006 and commenced operations on July 10, 2006. Prior to May 9, 2007, the Trust was known as the iShares® GSCI® Commodity-Indexed Trust. BlackRock Asset Management International Inc. (“BAMII”) is the “Sponsor” of the Trust and “Manager” of the iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC (the “Investing Pool”). BlackRock Institutional Trust Company, N.A. is the “Trustee” of the Trust. The Trust is governed by the Amended and Restated Trust Agreement, dated as of September 12, 2007 (the “Trust Agreement”), among the Sponsor, the Trustee and Wilmington Trust Company (the “Delaware Trustee”). The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets. Substantially all of the net assets of the Trust consist of its holdings of the limited liability company interests of a commodity pool. That commodity pool, iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC, holds long positions in futures contracts on the S&P GSCI™ Excess Return Index listed on the Chicago Mercantile Exchange called Commodity Excess Return Futures (“CERFs”) and posts margin in the form of cash or short-term or similar securities, referred to as “Short-Term Securities,” to collateralize its CERF positions. Margin is required to be posted at the time the CERF position is established.

It is the objective of the Trust that the performance of the Shares will correspond generally to the performance of the S&P GSCI™ Total Return Index before payment of the Trust’s and the Investing Pool’s expenses.

The Trust and the Investing Pool are each commodity pools, as defined in the regulations of the Commodity Futures Trading Commission (the “CFTC”) and are operated by BAMII, a commodity pool operator registered with the CFTC. BAMII is an indirect subsidiary of BlackRock, Inc.

The accompanying unaudited financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all material adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement of the interim period financial statements have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2011 as filed with the SEC on February 29, 2012.

The Trust is not an investment company registered under the Investment Company Act of 1940, as amended.

2 - Summary of Significant Accounting Policies

 

A. Basis of Accounting

The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. 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 and these differences could be material.

 

B. Investment in the Investing Pool

The Trust’s investment in the Investing Pool is valued at an amount equal to the value of the Trust’s capital account in the Investing Pool, which is measured at fair value.

The financial statements of the Investing Pool should be read in conjunction with the Trust’s financial statements.

At September 30, 2012, the Trust owned 99.99% of the Investing Pool’s net assets. Because the Trust invests substantially all of its assets in the Investing Pool, the accounting policies of the Investing Pool, including the Investing Pool’s security valuation policies, will directly affect the recorded value of the Trust’s investment in the Investing Pool. The Trust also receives a daily allocation of its respective income, expenses and net realized and unrealized gains and losses in proportion to its investment in the Investing Pool.

 

5


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

C. Valuation

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investments at fair value.

The Trust records its investment in the Investing Pool at fair value based on the Trust’s proportionate interest in the net assets of the Investing Pool. Disclosure regarding valuation of the Investing Pool’s investment portfolio can be found in Note 10 of the Investing Pool’s Notes to Financial Statements.

 

D. Income Taxes

The Trust is not an association taxable as a corporation for federal, state and local income tax purposes.

No provision for federal, state, and local income taxes has been made in the accompanying financial statements because the Trust is not subject to income taxes. Shareholders are individually responsible for their own tax payments on their proportionate share of gains, losses, credits, or deductions.

 

E. 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 equity investment in the Investing Pool and (2) any other assets of the Trust, as of 4:00 p.m. (New York time) that day. The Trustee determines the net asset value per Share (the “NAV”) by dividing the net asset value of the Trust on a given day by the number of Shares outstanding or deemed to be outstanding at 4:00 p.m. (New York time) that day. The NAV is calculated each day on which NYSE Arca, Inc. (“NYSE Arca”) is open for regular trading, as soon as practicable after 4:00 p.m. (New York time).

 

F. Distributions

Interest and distributions received by the Investing Pool on the assets posted as margin may be used to acquire additional CERFs or, in the discretion of the Sponsor, distributed to Shareholders. The Trust is under no obligation to make periodic distributions to Shareholders.

 

G. Recent Accounting Standard

In December 2011, the FASB issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Trust’s financial statements and disclosures.

3 - Offering of the Shares

Shares are issued and redeemed continuously in one or more blocks of 50,000 Shares in exchange for a combination of CERFs and cash (or, in the discretion of the Sponsor, Short-Term Securities in lieu of cash). The baskets of CERFs and cash (or, in the discretion of the Sponsor, Short-Term Securities in lieu of cash) are transferred to or from the Investing Pool in exchange for limited liability company interests in the Investing Pool. In addition, the Investing Pool is required to deposit cash margin with its futures commission merchant with a value equal to 100% of the value of each CERF position at the time it is established.

 

6


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust transacts only with registered broker-dealers that have entered into a contractual arrangement with the Trust and the Sponsor governing, among other matters, the creation and redemption of Shares (such authorized broker-dealers are the “Authorized Participants”). Authorized Participants may redeem their Shares (as well as Shares on behalf of other investors) at any time on any business day in one or more blocks of 50,000 Shares. Redemptions of Shares in exchange for baskets of CERFs and cash (or, in the discretion of the Sponsor, Short-Term Securities in lieu of cash) are treated as sales for financial statement purposes.

On September 30, 2012, the Trust had 38,950,000 Shares outstanding.

4 - Trust Expenses

The Trust is not expected to directly bear any ordinary recurring expenses. The Sponsor has agreed to pay the following administrative, operational and marketing expenses: (1) the fees of the Trustee, Delaware Trustee, Trust administrator and processing agent, (2) NYSE Arca listing fees, (3) printing and mailing costs, (4) audit fees, (5) tax reporting costs, (6) license fees, and (7) up to $100,000 per annum in legal fees. The Sponsor has also paid the costs of the Trust’s organization and the initial sales of the Shares, including applicable SEC registration fees.

5 - Related Parties

The Sponsor, the Manager and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust. The Manager is paid by the Investing Pool and that fee is an indirect expense of the Trust.

6 - Indemnification

The Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the United States Securities Act of 1933, as amended) and subsidiaries are entitled to be indemnified by the Trust and held harmless against any loss, liability or expense 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, willful misconduct or willful malfeasance or (2) reckless disregard of their obligations and duties under the Trust 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 - Net Asset Value and Financial Highlights

The Trust is presenting the following net asset values and financial highlights related to investment performance and operations for a Share outstanding for the period from January 1, 2012 to September 30, 2012. The net investment income (loss) and total expense ratios are calculated using average net assets. The net asset value presentation is calculated using daily Shares outstanding. The net investment income (loss) and total expense ratios have been annualized and include the allocation of net investment income (loss) and expenses from the Investing Pool. The total return is based on the change in net asset value of a Share during the period. An investor’s return and ratios may vary based on the timing of capital transactions.

 

7


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Trust

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

Net asset value per Share, beginning of period

   $ 33.04   

Net investment loss

     (0.17

Realized and unrealized gain

     1.16   
  

 

 

 

Net increase in net assets from operations

     0.99   
  

 

 

 

Net asset value per Share, end of period

   $ 34.03   
  

 

 

 

Ratio to average net assets:

  

Net investment loss(a)

     (0.68 )% 

Expenses(a)

     0.75

Total return, at net asset value(b)

     3.00

 

(a) 

Percentage is annualized.

(b) 

Percentage is not annualized.

9 - Subsequent Events

In connection with the preparation of the financial statements of the Trust as of and for the period ended September 30, 2012, management has evaluated the impact of all subsequent events on the Trust through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

 

8


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

Statements of Financial Condition

At September 30, 2012 (Unaudited) and December 31, 2011

 

     September 30,
2012
     December 31,
2011
 

Assets

     

Current Assets

     

Cash and cash equivalents

   $ 953,250       $ 94,645   

Cash and cash equivalents held at FCM (restricted)

     19,647,647         27,248,073   

Short-term investments held at FCM (restricted)

     1,296,695,093         1,287,357,438   

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

     9,156,880         —     

Interest receivable

     129         60   
  

 

 

    

 

 

 

Total Assets

   $ 1,326,452,999       $ 1,314,700,216   
  

 

 

    

 

 

 

Liabilities and Members’ Equity

     

Current Liabilities

     

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

   $ —         $ 552,020   

Management fee payable

     824,684         839,539   
  

 

 

    

 

 

 

Total Liabilities

     824,684         1,391,559   
  

 

 

    

 

 

 

Commitments and Contingent Liabilities (Note 7)

     —           —     

Members’ Equity

     

General member

     17,221         16,718   

Limited member

     1,325,611,094         1,313,291,939   
  

 

 

    

 

 

 

Total Members’ Equity

     1,325,628,315         1,313,308,657   
  

 

 

    

 

 

 

Total Liabilities and Members’ Equity

   $ 1,326,452,999       $ 1,314,700,216   
  

 

 

    

 

 

 

See notes to financial statements.

 

9


Table of Contents

iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

Statements of Operations (Unaudited)

For the three and nine months ended September 30, 2012 and 2011

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2012     2011     2012     2011  

Investment Income

        

Interest

   $ 317,616      $ 262,345      $ 685,028      $ 1,593,270   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     317,616        262,345        685,028        1,593,270   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses

        

Management fee

     2,440,689        2,789,182        7,431,158        9,692,887   

Brokerage commissions and fees

     —          1,320        3,630        759,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     2,440,689        2,790,502        7,434,788        10,452,733   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment loss

     (2,123,073     (2,528,157     (6,749,760     (8,859,463
  

 

 

   

 

 

   

 

 

   

 

 

 

Realized and Unrealized Gain (Loss)

        

Net realized gain (loss) on short-term investments

     —          25,269        (1,604     183,327   

Net realized gain (loss) on futures contracts

     (55,079     (7,899,380     (9,755,259     173,199,100   

Net change in unrealized appreciation/depreciation on futures contracts

     136,071,359        (149,213,471     48,687,049        (311,570,041
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

     136,016,280        (157,087,582     38,930,186        (138,187,614
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss)

   $ 133,893,207      $ (159,615,739   $ 32,180,426      $ (147,047,077
  

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

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iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

Statements of Changes in Members’ Equity

For the nine months ended September 30, 2012 (Unaudited)

and the year ended December 31, 2011

 

     General
Member
    Limited
Member
    Total
Members’
Equity
 

Members’ Equity, December 31, 2011

   $ 16,718      $ 1,313,291,939      $ 1,313,308,657   

Contributions

     —          53,845,870        53,845,870   

Redemptions

     —          (73,706,638     (73,706,638

Net investment loss

     (89     (6,749,671     (6,749,760

Net realized loss on short-term investments

     —          (1,604     (1,604

Net realized loss on futures contracts

     (126     (9,755,133     (9,755,259

Net change in unrealized appreciation/ depreciation on futures contracts

     718        48,686,331        48,687,049   
  

 

 

   

 

 

   

 

 

 

Members’ Equity, September 30, 2012

   $ 17,221      $ 1,325,611,094      $ 1,325,628,315   
  

 

 

   

 

 

   

 

 

 
     General
Member
    Limited
Member
    Total
Members’
Equity
 

Members’ Equity, December 31, 2010

   $ 17,393      $ 1,799,879,995      $ 1,799,897,388   

Contributions

     —          90,651,034        90,651,034   

Redemptions

     —          (539,534,773     (539,534,773

Net investment loss

     (115     (11,297,295     (11,297,410

Net realized gain on short-term investments

     2        184,876        184,878   

Net realized gain on futures contracts

     1,497        165,820,763        165,822,260   

Net change in unrealized appreciation/ depreciation on futures contracts

     (2,059     (192,412,661     (192,414,720
  

 

 

   

 

 

   

 

 

 

Members’ Equity, December 31, 2011

   $ 16,718      $ 1,313,291,939      $ 1,313,308,657   
  

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

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iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

Statements of Cash Flows (Unaudited)

For the nine months ended September 30, 2012 and 2011

 

     Nine Months Ended
September 30,
 
     2012     2011  

Cash Flows from Operating Activities

  

Net gain (loss)

   $ 32,180,426      $ (147,047,077

Adjustments to reconcile net gain (loss) to net cash provided by operating activities:

    

Purchases of short-term investments

     (4,144,911,857     (4,680,371,464

Sales/maturities of short-term investments

     4,136,191,524        5,116,541,500   

Accretion of discount

     (618,926     (1,542,504

Net realized (gain) loss on short-term investments

     1,604        (183,327

Change in operating assets and liabilities:

    

Cash and cash equivalents held at FCM (restricted)

     7,600,426        36,352,741   

Receivable for variation margin on open futures contracts

     (9,156,880     35,184,200   

Interest receivable

     (69     226   

Payable for variation margin on open futures contracts

     (552,020     28,703,070   

Management fee payable

     (14,855     (250,472
  

 

 

   

 

 

 

Net cash provided by operating activities

     20,719,373        387,386,893   
  

 

 

   

 

 

 

Cash Flows from Financing Activities

  

Contributions

     53,845,870        90,651,034   

Redemptions

     (73,706,638     (479,515,336
  

 

 

   

 

 

 

Net cash used in financing activities

     (19,860,768     (388,864,302
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     858,605        (1,477,409
  

 

 

   

 

 

 

Cash and Cash Equivalents

  

Beginning of period

     94,645        1,662,838   
  

 

 

   

 

 

 

End of period

   $ 953,250      $ 185,429   
  

 

 

   

 

 

 

See notes to financial statements.

 

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iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC

Schedule of Investments (Unaudited)

At September 30, 2012

 

Face Amount

    

Security Description

   Fair Value  
   United States Treasury bills:   
  $550,000,000       0.08% - 0.10% due 12/06/12    $ 549,901,000   
  259,500,000       0.10% due 12/20/12      259,442,333   
  487,446,000       0.08% due 12/27/12      487,351,760   
     

 

 

 
   Total United States Treasury bills - 97.82%(a)    $ 1,296,695,093   
     

 

 

 

 

(a)

Percentage is based on members’ equity.

 

 

As of September 30, 2012, the open CERF’s were as follows:

 

Contracts

       

Expiration Date

        

Current Notional Amount

          

Net Unrealized Loss

 

26,932

     March 2014       $ 1,324,246,440          $ 25,174,580   

See notes to financial statements.

 

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iShares® S&P GSCI™ Commodity-Indexed Pool LLC

Notes to Financial Statements (Unaudited)

At September 30, 2012

1 - Organization

The iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC (the “Investing Pool”) is a limited liability company organized under the laws of the State of Delaware on July 7, 2006 and commenced operations on July 10, 2006. Prior to May 9, 2007, the Investing Pool was known as the iShares® GSCI® Commodity-Indexed Investing Pool LLC. BlackRock Asset Management International Inc. (the “Manager”) is responsible for the administration of the Investing Pool. The Investing Pool holds long positions in futures contracts on the S&P GSCI™ Excess Return Index (“S&P GSCI-ER”) listed on the Chicago Mercantile Exchange (the “CME”) called Commodity Excess Return Futures (“CERFs”) and posts margin in the form of cash or short-term or similar securities, referred to as “Short-Term Securities,” to collateralize its CERF positions.

It is the objective of the Investing Pool that its performance will correspond generally to the performance of the S&P GSCI™ Total Return Index (the “Index”) before payment of the Investing Pool’s expenses.

The Investing Pool is a commodity pool, as defined in the regulations of the Commodity Futures Trading Commission (the “CFTC”) and is operated by the Manager, a commodity pool operator registered with the CFTC. The Manager is an indirect subsidiary of BlackRock, Inc. BlackRock Fund Advisors (the “Advisor”), an indirect subsidiary of BlackRock, Inc., serves as the commodity trading advisor of the Investing Pool and is registered with the CFTC.

The Investing Pool is not an investment company registered under the Investment Company Act of 1940, as amended.

2 - Summary of Significant Accounting Policies

 

A. Basis of Accounting

The following is a summary of significant accounting policies consistently followed by the Investing Pool in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). 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 and these differences could be material.

 

B. Investment in CERFs

CERFs are futures contracts listed on the CME whose settlement at expiration is based on the value of the S&P GSCI-ER at that time. The terms of the CERFs require the Investing Pool to deposit initial margin with a value equal to 100% of the value of each CERF position at the time the position is established, thereby making those positions unleveraged. Because of this, additional variation margin payments are not required. Although daily variation margins are not required, daily fluctuations in the value of the CERFs are recorded as an unrealized gain or loss. When a CERF is closed, the Investing Pool records a realized gain or loss based on the difference between the value of the CERF at the time it was opened and the value at the time it was closed. The Investing Pool will deposit with the clearing futures commission merchant (“FCM”) the required margin for the CERFs in the form of cash or Short-Term Securities. CERFs are derivative instruments valued at fair value, which the Manager has determined to be that day’s announced CME settlement price for the CERF. If there is no announced CME settlement price for the CERF on that day, the Manager will use the most recently announced CME settlement price unless the Manager determines that the price is inappropriate as a basis for the valuation of the CERFs. The Investing Pool’s investment in the CERFs has not been designated as a hedging instrument. As a result, all changes in the fair value are reflected in the Statements of Operations.

 

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iShares® S&P GSCI™ Commodity-Indexed Pool LLC

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

The investment objective of the Investing Pool is to seek investment results that correspond generally to the performance of the Index before payment of the Investing Pool’s expenses through holdings of long positions in CERFs.

For futures contracts, counterparty credit risk is mitigated because futures contracts are exchange-traded and the exchange’s clearing house acts as central counterparty to all exchange-traded futures contracts (although customers continue to have credit exposure to the clearing member who holds their account).

Please refer to Note 9 for additional disclosures regarding the Investing Pool’s investments in CERFs.

 

C. Cash and Cash Equivalents

The Investing Pool defines cash and cash equivalents to be highly liquid investments with original maturities of three months or less.

As of September 30, 2012 and December 31, 2011, the Investing Pool had cash and cash equivalents held at its clearing FCM of $19,647,647 and $27,248,073 respectively, which were posted as margin to collateralize its CERF positions.

 

D. Short-Term Investments

Short-term investments on the Statements of Financial Condition consist principally of short-term fixed income securities with original maturities of one year or less. These investments are valued at fair value.

As of September 30, 2012 and December 31, 2011, the Investing Pool had short-term investments held at its clearing FCM of $1,296,695,093 and $1,287,357,438 respectively, which were posted as margin to collateralize its CERF positions.

 

E. Securities Transactions, Income and Expense Recognition

Securities transactions are accounted for on the trade date. Realized gains and losses on investment transactions are determined using the specific identification method. Other income and expenses are recognized on the accrual basis.

 

F. Income Taxes

The Investing Pool is not an association taxable as a corporation and is treated as a partnership for federal, state and local income tax purposes.

No provision for federal, state, and local income taxes has been made in the accompanying financial statements because the Investing Pool is not subject to income taxes. Holders of interests in the Investing Pool are individually responsible for their own tax payments on their proportionate share of gains, losses, credits, or deductions.

 

G. Calculation of Net Asset Value

The net asset value of the Investing Pool on any given day is obtained by subtracting the Investing Pool’s accrued expenses and other liabilities on that day from the value of the assets of the Investing Pool, calculated as of 4:00 p.m. (New York time) on each day on which NYSE Arca, Inc. (“NYSE Arca”) is open for regular trading, as soon as practicable after that time.

 

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iShares® S&P GSCI™ Commodity-Indexed Pool LLC

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

H. Recent Accounting Standard

In December 2011, the Financial Accounting Standards Board (“FASB”) issued guidance to enhance current disclosure requirements on offsetting of certain assets and liabilities and enable financial statement users to compare financial statements prepared under U.S. GAAP and International Financial Reporting Standards (IFRS). The new disclosures are required for investments and derivative financial instruments subject to master netting agreements or similar agreements and require an entity to disclose both gross and net information about such investments and transactions eligible for offset in the statement of assets and liabilities. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar agreements. The guidance is effective for financial statements for fiscal years beginning after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Investing Pool’s financial statements and disclosures.

3 - Offering of the Investing Pool Interests

Interests in the Investing Pool (“Investing Pool Interests”) are issued only to and redeemable only by the iShares® S&P GSCI™ Commodity-Indexed Trust (the “Trust”) in exchange for a combination of CERFs and cash or Short-Term Securities in lieu of cash. The baskets of CERFs and cash or Short-Term Securities in lieu of cash are transferred to or from the Trust in exchange for Investing Pool Interests. Individual investors cannot purchase or redeem Investing Pool Interests. The Investing Pool transacts only with the Trust and the Manager.

Redemptions of Investing Pool Interests in exchange for CERFs and cash or Short-Term Securities in lieu of cash are treated as sales for financial statement purposes.

4 - Investing Pool Expenses

The Manager pays the amounts that would otherwise be considered the ordinary operating expenses, if any, of the Investing Pool. The Manager receives an allocation from the Investing Pool that accrues daily at an annualized rate equal to 0.75% of the net asset value of the Investing Pool.

5 - Related Parties

BlackRock Institutional Trust Company, N.A. is the “Administrator” of the Investing Pool. The Manager and the Administrator are considered to be related parties to the Trust and Investing Pool. The Advisor is considered to be a related party to the Investing Pool. The Administrator’s and Advisor’s fees are paid by the Manager from the Investing Pool’s expense allocation to the Manager and are not a separate expense of the Investing Pool.

6 - Indemnification

The Trust, the Manager and any officers, agents and delegates of the Investing Pool (the “Indemnitees”) are entitled to indemnification from the Investing Pool for any loss, damage, claim or expense (including reasonable attorney’s fees) incurred by any Indemnitee by reason of any act or omission performed or omitted by such Indemnitee on behalf of the Investing Pool, unless such act or omission is the result of such Indemnitee’s gross negligence, bad faith or willful misconduct, and provided that such indemnity shall be provided out of, and only to the extent of, the Investing Pool’s assets.

 

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iShares® S&P GSCI™ Commodity-Indexed Pool LLC

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

7 - Commitments and Contingent Liabilities

In the normal course of business, the Investing Pool may enter into contracts with service providers that contain general indemnification clauses. The Investing Pool’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Investing Pool that have not yet occurred.

8 - Financial Highlights

The Investing Pool is presenting the following financial highlights related to investment performance and operations for the period from January 1, 2012 to September 30, 2012. The net investment income (loss) and total expense ratios are calculated using average net assets and have been annualized. The total return is based on the change in the net asset value during the period.

 

Ratio to average net assets:

  

Net investment loss(a)

     (0.68 )% 

Expenses(a)

     0.75

Total return(b)

     2.76

 

(a) 

Percentage is annualized.

(b) 

Percentage is not annualized.

9 - Investing in CERFs

Substantially all of the Investing Pool’s assets are invested in CERFs. The CERFs’ settlement value at expiration is based on the value of S&P GSCI-ER at that time. Therefore, the value of the Investing Pool will fluctuate based upon the value of the S&P GSCI-ER and the prices of the commodities underlying the S&P GSCI-ER. The commodities markets have historically been extremely volatile. For the nine months ended September 30, 2012 and the year ended December 31, 2011, the average month-end notional amount of open CERFs were $1,332,376,635 and $1,634,239,228, respectively.

The following table shows the variation margin on open futures contracts, by risk exposure category, on the Statements of Financial Condition for as of September 30, 2012 and December 31, 2011:

 

    

Asset Derivatives

   Fair Value     

Liability Derivatives

   Fair Value  

September 30, 2012

                       

Commodity contracts

   Receivable for variation margin on open futures contracts    $ 9,156,880       Payable for variation margin on open futures contracts    $ —     

December 31, 2011

                       
Commodity contracts    Receivable for variation margin on open futures contracts    $ —         Payable for variation margin on open futures contracts    $ 552,020   

 

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iShares® S&P GSCI™ Commodity-Indexed Pool LLC

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

The following table shows the effect of the futures contracts, by risk exposure category, on the Statements of Operations for the nine months ended September 30, 2012 and 2011:

 

Nine Months Ended September 30, 2012

  

Statements of

Operations Location

   Realized Gain (Loss)     Change in
Unrealized
Appreciation / Depreciation
 
Commodity contracts    Net realized loss on futures contracts    $ (9,755,259   $ —     
   Net change in unrealized appreciation/depreciation on futures contracts      —          48,687,049   

Nine Months Ended September 30, 2011

                 

Commodity contracts

   Net realized gain on futures contracts    $ 173,199,100      $ —     
   Net change in unrealized appreciation/depreciation on futures contracts      —          (311,570,041

10 – Investment Valuation

FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures defines fair value as the price the Investing Pool would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Investing Pool’s policy is to value its investments at fair value.

Investments in CERFs are measured at fair value using the last reported CME settlement price for CERFs.

U.S. Treasury bills are valued at the last available bid price received from independent pricing services. In determining the value of a fixed income investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures.

Various inputs are used in determining the fair value of financial investments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:

 

Level 1       Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2       Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and
Level 3       Unobservable inputs that are unobservable for the asset or liability, including the Investing Pool’s assumptions used in determining the fair value of investments.

 

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iShares® S&P GSCI™ Commodity-Indexed Pool LLC

Notes to Financial Statements (Unaudited) (Continued)

At September 30, 2012

 

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

The following table summarizes the valuation of the Investing Pool’s investments by the fair value hierarchy levels as of September 30, 2012 and December 31, 2011:

 

     Level 1     Level 2      Level 3      Total  

September 30, 2012

          

CERFs(a)

   $ (25,174,580   $ —         $ —         $ (25,174,580

U.S. Treasury bills

     —          1,296,695,093         —           1,296,695,093   

December 31, 2011

          

CERFs(a)

   $ (73,861,629   $ —         $ —         $ (73,861,629

U.S. Treasury bills

     —          1,287,357,438         —           1,287,357,438   

 

(a) 

CERFs are valued at unrealized appreciation (depreciation). As of September 30, 2012 and December 31, 2011 current notional amounts of open CERFs were $1,324,246,440 and $1,310,495,480, respectively.

11 - Subsequent Events

In connection with the preparation of the financial statements of the Investing Pool as of and for the period ended September 30, 2012, management has evaluated the impact of all subsequent events on the Investing Pool through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

 

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Table of Contents
Item 2. 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. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. None of the Trust, the Sponsor, the Manager, the Trustee or the Delaware Trustee assumes responsibility for the accuracy or completeness of any forward-looking statements. None of the Trust, the Sponsor, the Manager, the Trustee or the Delaware Trustee is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in expectations or predictions.

Introduction

The iShares® S&P GSCI™ Commodity-Indexed Trust (the “Trust”) is a Delaware statutory trust that issues units of beneficial interest ( “Shares”) representing fractional undivided beneficial interests in its net assets. Substantially all of the assets of the Trust consist of interests in the iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC (the “Investing Pool”). The Investing Pool holds long positions in futures contracts ( “CERFs”) on the S&P GSCI™ Excess Return Index (“S&P GSCI-ER”) listed on the Chicago Mercantile Exchange, (the “CME”), and posts margin in the form of cash or short-term or similar securities, referred to as “Short-Term Securities,” to collateralize its CERF positions. It is the objective of the Trust that the performance of the Shares will correspond generally to the performance of the S&P GSCI™ Total Return Index (the “Index”) before payment of the Trust’s and the Investing Pool’s expenses and liabilities. The Index is intended to reflect the performance of a diversified group of commodities. BlackRock Asset Management International Inc. (“BAMII”) is the “Sponsor” of the Trust and the “Manager” of the Investing Pool. BlackRock Institutional Trust Company, N.A. is the “Trustee” of the Trust. The Trust and the Investing Pool are commodity pools, as defined in the regulations of the Commodity Futures Trading Commission (the “CFTC”) and are operated by BAMII, a commodity pool operator registered with the CFTC. The Trust and the Investing Pool have delegated some of the administration to State Street Bank and Trust Company (the “Trust Administrator” or “Investing Pool Administrator”). Wilmington Trust Company, a Delaware banking corporation, serves as the “Delaware Trustee” of the Trust. Neither the Trust nor the Investing Pool is an investment company registered under the Investment Company Act of 1940, as amended.

The Trust intends to offer Shares on a continuous basis but is not required to do so and may suspend the offering of Shares at any time. The Trust issues and redeems Shares only in one or more blocks of 50,000 Shares ( “Baskets”). These transactions are generally in exchange for consideration (or redemption proceeds) consisting of CERFs and cash (or, at the discretion of the Sponsor, Short-Term Securities in lieu of cash) with a value equal to the net asset value per Basket on the date the creation or redemption order is received in proper form. Only certain institutions, called “Authorized Participants,” that enter into an agreement with the Trust may purchase or redeem Baskets. Owners of beneficial interests in Shares (“Shareholders”) who are not Authorized Participants have no right to redeem their Shares; they may redeem their Shares only through an Authorized Participant and only in Baskets.

Shares of the Trust trade on NYSE Arca, Inc. (“NYSE Arca”) under the symbol “GSG.”

Valuation of CERFs; Computation of Trust’s Net Asset Value

The Trustee determines the net asset value of the Trust and the net asset value per Share, or NAV, as of 4:00 p.m. (New York time), on each Business Day on which NYSE Arca is open for regular trading, as soon as practicable after that time. A “Business Day” is

 

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defined as a day (1) on which none of the following occurs: (a) NYSE Arca is closed for regular trading, (b) the CME is closed for regular trading or (c) the Federal Reserve wire transfer system is closed for cash wire transfers, or (2) that the Trustee determines that it is able to conduct business. The Trustee values the Trust’s assets based upon the determination by the Manager, which may act through the Investing Pool Administrator, of the net asset value of the Investing Pool. The Manager determines the net asset value of the Investing Pool as of the same time that the Trustee determines the net asset value of the Trust.

The Manager values the Investing Pool’s long position in CERFs on the basis of that day’s announced CME settlement price for the CERF. The value of the Investing Pool’s CERF position (including any related margin) equals the product of (a) the number of CERF contracts owned by the Investing Pool and (b) the settlement price on the date of calculation. If there is no announced CME settlement price for the CERF on a Business Day, the Manager uses the most recently announced CME settlement price unless the Manager determines that such price is inappropriate as a basis for valuation. The daily settlement price for the CERF is established by the CME shortly after the close of trading in Chicago on each trading day.

The Manager values all other property of the Investing Pool at (a) its current market value, if quotations for such property are readily available, or (b) its fair value, as reasonably determined by the Manager, if the current market value cannot be determined.

Once the value of the CERFs and interest earned on any assets posted as margin and any other assets of the Investing Pool have been determined, the Manager subtracts all accrued expenses and liabilities of the Investing Pool as of the time of calculation in order to calculate the net asset value of the Investing Pool. The Manager, or the Investing Pool Administrator on its behalf, then calculates the value of the Trust’s interests in the Investing Pool (“Investing Pool Interests”) and provides this information to the Trustee.

Once the value of the Trust’s Investing Pool Interests has been determined and provided to the Trustee, the Trustee subtracts all accrued expenses and other liabilities of the Trust from the total value of the assets of the Trust, in each case as of the calculation time. The resulting amount is the net asset value of the Trust. The Trustee determines the NAV by dividing the net asset value of the Trust by the number of Shares outstanding at the time the calculation is made. Shares to be delivered under a creation order are considered to be outstanding for purposes of determining the NAV if the applicable creation order was received by the Trustee prior to 2:40 p.m. (New York time) (or, on any day on which the CME is scheduled to close early, prior to the close of trading of CERFs on the CME on such day), on the date of calculation. Shares to be delivered under a redemption request are not considered to be outstanding for purposes of calculating the NAV if the applicable redemption request was received by the Trustee prior to 2:40 p.m. (New York time) (or, on any day on which the CME is scheduled to close early, prior to the close of trading of CERFs on the CME on such day), on the date of calculation.

Results of Operations

The Quarter Ended September 30, 2012

The Trust’s net asset value increased from $1,181,472,461 at June 30, 2012 to $1,325,611,094 at September 30, 2012. The increase in the Trust’s net asset value was primarily due to an increase in the price of CERFs during the quarter from $440.80 at June 30, 2012 to $491.70 at September 30, 2012, an 11.55% increase. The Trust’s net asset value also benefitted from an increase in outstanding Shares, which rose from 38,650,000 at June 30, 2012 to 38,950,000 at September 30, 2012 due to 400,000 Shares (8 Baskets) being created and 100,000 Shares (2 Baskets) being redeemed during the quarter.

The Nine Months Ended September 30, 2012

The Trust’s net asset value increased from $1,313,291,939 at December 31, 2011 to $1,325,611,094 at September 30, 2012. The increase in the Trust’s net asset value was primarily due to an increase in the price of CERFs during the period from $474.80 at December 31, 2011 to $491.70 at September 30, 2012, a 3.56% increase. The increase in the Trust’s net asset value was offset by a decrease in outstanding Shares, which decreased from 39,750,000 at December 31, 2011 to 38,950,000 at September 30, 2012 due to 1,550,000 Shares (31 Baskets) being created and 2,350,000 Shares (47 Baskets) being redeemed during the period.

 

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Liquidity and Capital Resources

The Trust’s sole asset as of September 30, 2012 was its investment in the Investing Pool. The Investing Pool’s assets consist of CERFs, cash and Short-Term Securities that are posted as collateral for the Investing Pool’s CERF positions. The Trust and the Investing Pool do 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. Interest earned on the assets posted as collateral is paid to the Investing Pool and is used to pay the fixed fee to the Manager and purchase additional CERFs, or, in the discretion of the Sponsor, distributed to Shareholders. In exchange for a fee based on the net asset value of the Investing Pool, the Sponsor and the Manager have assumed most of the ordinary expenses incurred by the Trust and the Investing Pool. In the case of an extraordinary expense and/or insufficient interest income to cover ordinary expenses, however, the Investing Pool could be forced to liquidate its CERF positions to pay such expenses. As of September 30, 2012, the market for CERFs had not developed significant liquidity and the Investing Pool represented substantially all of the long-side open interest in CERFs. In addition, it is expected that Goldman, Sachs & Co. or its accountholders may represent, directly or indirectly, a substantial portion of the short-side interest in such market. The existence of such a limited number of market participants could cause or exacerbate losses to the Trust if the Trust were required to liquidate its CERF positions.

The Sponsor is unaware of any other trends, demands, conditions or events that are reasonably likely to result in material changes to the Trust’s or the Investing Pool’s liquidity needs.

Because the Investing Pool trades CERFs, its capital is at risk due to changes in the value of the CERFs or other assets (market risk) or the inability of counterparties to perform (credit risk).

Market Risk

The Investing Pool holds CERF positions and posts cash and Short-Term Securities as margin to collateralize the CERF positions. Because of this limited diversification of the Investing Pool’s assets, fluctuations in the value of the CERFs are expected to directly affect the value of the Shares. The value of the CERFs is expected to track generally the S&P GSCI-ER, although this correlation may not be exact. The S&P GSCI-ER, in turn, reflects the value of a diversified group of commodities. The market risk associated with the Investing Pool’s CERF positions is limited to the amount of cash and Short-Term Securities posted as margin. The Investing Pool’s exposure to market risk will be influenced by a number of factors, including the lack of liquidity of the CERF market and activities of other market participants.

Credit Risk

When the Investing Pool purchases or holds CERFs, it is exposed to the credit risk of a default by the CME Clearing House, which serves as the counterparty to each CERF position, and of a default by its clearing futures commission merchant. In the case of such a default, the Investing Pool could be unable to recover amounts due to it on its CERF positions and assets posted as margin. The Investing Pool is also exposed to the credit risk of the obligors of any Short-Term Securities posted as margin.

Off-Balance Sheet Arrangements and Contractual Obligations

The Trust and the Investing Pool have not used, nor do they expect to use, special purpose entities to facilitate off-balance sheet financing arrangements. The Trust and the Investing Pool have no loan guarantee arrangements or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services for the benefit, or on behalf of the Trust and the Investing Pool. While the Trust’s and the Investing Pool’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on either the Trust’s or the Investing Pool’s financial position.

 

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Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s and the Investing Pool’s financial position and results of operations. These estimates and assumptions affect the Trust’s and the Investing Pool’s application of accounting policies. In addition, please refer to Note 2 to the financial statements of the Trust and the Investing Pool for further discussion of the Trust’s and the Investing Pool’s accounting policies.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantitative Disclosure

The Trust and Investing Pool are exposed to commodity price risk through the Investing Pool’s holdings of CERFs. The following table provides information about the Investing Pool’s futures contract positions, which are sensitive to changes in commodity prices. As of September 30, 2012, the Investing Pool’s open CERF positions (long) were as follows:

 

Number of Contracts:

     26,932   

Expiration Date:

     March 2014   

Weighted-Average Price per Contract:

   $ 501.05   

Notional Amount (Fair Value):

   $ 1,324,246,440   

The notional amount is calculated using the settlement price for the CERFs on the CME on September 30, 2012, which was $491.70 per contract, and the $100 multiplier applicable under the contract terms.

Qualitative Disclosure

As described herein, it is the objective of the Trust, through its investment in the Investing Pool, that the performance of the Shares will correspond generally to the performance of the Index, before payment of expenses and liabilities. The Index itself is intended to reflect the performance of a diversified group of physical commodities, including energy commodities, precious and industrial metal commodities, agricultural commodities and livestock commodities. The Trust obtains this exposure to commodity prices through the Investing Pool’s CERF positions. As a result, fluctuations in the value of the CERFs are expected to directly affect the value of the Shares.

Neither the Trust nor the Investing Pool will engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the value of the CERFs, any commodities underlying the Index or the S&P GSCI-ER, or any assets posted as margin. Because of the 100% margin requirement applicable to the Investing Pool’s CERF positions, the market risk associated with the Investing Pool’s CERF position is limited to the amount of cash and Short-Term Securities posted as margin. The Investing Pool’s exposure to market risk may be influenced by a number of factors, including the lack of liquidity of the CERF market and activities of other market participants.

 

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Item 4. Controls and Procedures

The duly authorized officers of the Sponsor and Manager performing functions equivalent to those a principal executive officer and principal financial officer of the Trust and the Investing Pool would perform if the Trust and the Investing Pool had any officers, and with the participation of the Trustee and the Investing Pool Administrator, have evaluated the effectiveness of the Trust’s and Investing Pool’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust and the Investing Pool were effective as of the end of the period covered by this report to provide reasonable assurance that information required to be disclosed in the reports that the Trust and the Investing Pool file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to the duly authorized officers of the Sponsor and Manager performing functions equivalent to those a principal executive officer and principal financial officer of the Trust and the Investing Pool would perform if the Trust and the Investing Pool had any officers, as appropriate to allow timely decisions regarding required disclosure.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

There were no changes in the Trust’s and Investing Pool’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Trust’s and Investing Pool’s internal control over financial reporting.

 

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors last reported under Part I, Item 1A of the registrants’ Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 29, 2012, except for the following changes, which were included in the prospectus filed with the Securities and Exchange Commission on September 13, 2012 pursuant to Rule 424(b)(3) of the Securities Act of 1933, as amended:

The risk factor entitled “Risk Factors Relating to Commodities Markets – Regulatory developments with respect to the futures and over-the-counter derivatives markets, and in particular, with respect to speculative trading in futures contracts and over-the-counter derivatives involving commodities and commodity indices, could adversely affect the value of your Shares.” was supplemented with additional language. The risk factor now reads in its entirety as follows:

In recent years, many bills have been introduced in the U.S. Congress targeting excessive speculation in commodities and commodity indices, including by institutional “index funds,” on regulated futures markets and in the over-the-counter (“OTC”) derivatives markets. Some of the measures have not been adopted but could be in the future.

In 2010, Congress adopted some anti-speculative proposals in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). These provisions of the Dodd-Frank Act, have been interpreted by the CFTC to require the CFTC to expand its speculative position limits, as appropriate, to a wider range of listed futures and options on physical commodities (including certain energy, metals and agricultural products) as well as to economically equivalent swaps while significantly narrowing the bona fide hedging exemptions to a narrower category of commercial market participants and physical hedging strategies.

Pursuant to the provisions of the Dodd-Frank Act described above, the CFTC adopted regulations in October 2011 (the “Position Limits Rules”) that, impose new federal position limits on futures and options on a subset of energy, metal, and agricultural commodities and economically equivalent swaps (collectively, “referenced contracts”). The CFTC has stated that it intends to phase-in key provisions of the Position Limits Rules beginning October 12, 2012.

The referenced contracts that will be subject to the Position Limits Rules represent 18 out of the 24 futures contracts included in the S&P GSCI-ER and over 70% of the weight of the S&P GSCI-ER. Consequently, the maximum positions that market participants can hold in the referenced contracts that underlie the S&P GSCI-ER will be limited, which could reduce the liquidity of such referenced contracts and adversely affect the performance of the S&P GSCI-ER and the value of your Shares. Moreover, because the relative weights of the commodities in the S&P GSCI-ER are largely determined based on the trading volume of the futures contracts designated for such commodities, a reduction in the trading volume of such futures contracts could significantly alter the weights of the futures contracts underlying the S&P GSCI-ER, which could have further adverse effects on the level of the S&P GSCI-ER and the value of your Shares.

The Position Limits Rules will also narrow the existing bona fide hedge exemption for referenced contracts. This measure may affect the hedging and investing activities of participants in the markets for the CERFs and the futures contracts and commodities

 

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underlying the S&P GSCI-ER, which in turn could reduce the liquidity and adversely affect the pricing of the CERFs and such futures contracts and commodities. Any of these effects could increase volatility in and otherwise adversely affect the price of the Shares.

The CFTC may lower the applicable position limits, apply position limits to a broader range of contracts (including commodity index contracts) such as the CERFs) or further restrict position limit exemptions. If any of these actions is taken, such measures could further reduce the size of positions that the Investing Pool and other investors could hold directly in CERFs and the underlying futures contracts and commodities, with potential reductions in liquidity and adverse effects on the pricing of CERFs. The value of the Shares depends on the value of CERFs, which will fluctuate based on the prices of commodity futures contracts reflected in the S&P GSCI-ER. These prices may be volatile, thereby creating the potential for losses, regardless of the length of time you intend to hold your Shares.

From August 24, 2009 to April 26, 2010, the Trust suspended the issuance of new Baskets because it could not invest the proceeds of such issuances in additional CERF positions due to restrictions on speculative position limits imposed by the CME.

Certain other rules proposed pursuant to the Dodd-Frank Act also may have an impact on the Trust, the Investing Pool and the value and continued availability of the Shares. On December 22, 2010, the CFTC proposed rules (the “DCM Proposed Rules”) that would require that at least 85% of the total volume of any contract listed on a “designated contract market,” or “DCM,,” including the CERFs listed on the CME, be executed through the central order book, rather than as a block transaction or other non-competitively executed transaction. Contracts that do not meet the 85% threshold would be required to be delisted by the DCM and transferred to a swap execution facility or liquidated.

Generally, the Investing Pool’s transactions in CERFs have been executed through block or “exchange for related positions” or “EFRP” transactions that are not executed through the CME’s central order book. While subject to revision by the CFTC in response to public comment, this provision of the DCM Proposed Rules could, if adopted as proposed, significantly and adversely affect the availability, liquidity and price of CERFs, as well as futures contracts currently included or which may in the future be included in the S&P GSCI-ER, and could inhibit the Trust’s ability to redeem and offer Shares, which in turn could adversely affect the value and continued availability of the Shares.

Recently adopted rules regarding the risk management practices of clearing members, (the “FCM Rules”) will become effective on October 1, 2012. The FCM Rules require the Investing Pool’s Clearing FCM to establish risk-based limits on position and order size, amongst other measures. The FCM Rules may lead the Investing Pool’s Clearing FCM to reduce its internal limits on the size of the CERF positions it will execute or clear for the Investing Pool, reducing the Investing Pool’s and other market participants’ ability to transact in CERFs, and potentially adversely affecting the price of Shares. In the event that the Investing Pool’s Clearing FCM does reduce its internal limits on the size of CERFs positions, the Investing Pool may deem it feasible to use additional clearing FCMs. If this happens, it could substantially increase the costs of clearing for the Investing Pool.

Other regulatory measures under the Dodd-Frank Act could increase the costs of the Investing Pool, result in significant direct limitations on the maximum permitted size of the Investing Pool’s futures positions and therefore on the size of the Trust, or affect liquidity in the market for the CERFs or the underlying futures contracts, as well as the correlation between the price of the Shares and the net asset value of the Trust. Any such measures could adversely affect the value of your Shares.

The risk factor entitledRisk Factors Relating to CERFs and the S&P GSCI-ERFutures contracts (including the CERFs) are not assets with intrinsic valuehas been added to explain the inherent risk associated with the nature of futures contracts. The risk factor now reads in its entirety as follows:

Trading in futures transfers the risk of future price movements from one market participant to another. This means that for every gain, there is an equal and offsetting loss. Futures contracts themselves (including CERFs) are not assets with intrinsic value, and simply reflect, in the case of cash-settled contracts, certain rights to payment or obligations to make payments to the other party to the

 

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contract, and in the case of physically-settled contracts, such as the futures contracts underlying the Index, an agreement to make or take delivery of a particular asset at a specified price. Accordingly, market participants taking the opposite side of the Investing Pool’s CERF trades may believe that the price of such CERF will move against the Investing Pool, and the Investing Pool may be at an informational or other disadvantage relative to such market participants.

Further, the risk factor entitled “Risk Factors Relating to the Trust and the Investing Pool – Exchange position limits and other rules may restrict the creation of Baskets and the operation of the Investing Pool” has been amended to reflect that the individual position limit for holding CERFs has been increased by the CME from 10,000 contracts to 45,000 and the Investing Pool’s risk management exemption from this position limit (applicable until June 11, 2013) has been increased from 70,000 to 105,000 contracts. This risk factor now reads in its entirety as follows:

The CME imposes speculative position limits on market participants trading in CERFs, including the Investing Pool, that typically prohibit any person from holding a position of more than 45,000 contracts. The Investing Pool has obtained a risk management exemption from these position limits that should permit the Investing Pool to hold up to 105,000 contracts. If the Investing Pool is unable to obtain further exemptions, or if the exemption that the Investing Pool obtained expires, is revoked or modified or cannot be renewed for any reason, then the Trust’s ability to issue new Baskets or reinvest income in additional CERFs may be limited to the extent these activities would cause the Investing Pool to exceed the then-applicable position limit. The Investing Pool may also be required to liquidate any existing contracts in excess of the then-applicable position limits or take other actions with potentially adverse effects on the liquidity or value of the Shares.

Additionally, future legislative or regulatory action (including regulatory action pursuant to the requirements of the Dodd-Frank Act) may impose new limitations on the size of positions that the Investing Pool may take in CERFs or the CME may reduce its position limits applicable to CERFs and/or impose limitations on the size of positions that may be carried by the Investing Pool’s Clearing FCM or other market participants, adversely affecting the liquidity and price of CERFs and the underlying futures. Such events could force the Investing Pool to sell CERFs, or encourage market participants to sell or redeem their Shares. The CFTC has proposed that any risk management exemptions granted by designated contract markets, such as the exemption applicable to the Investing Pool’s position in CERFs, would be subject to CFTC review and approval. As a result, if adopted, the maximum position in CERFs permitted to be held by the Investing Pool could be significantly reduced in size, which could in turn require the Investing Pool to liquidate some or all of its positions in CERFs.

Any such reduction could affect the liquidity of CERFs and adversely impact the price of the Shares as well as the correlation between the price of the Shares and the net asset value of the Trust. See also “Risk Factors – Relating to Commodities Markets – Regulatory developments with respect to the futures and over-the-counter derivatives markets, and in particular, with respect to speculative trading in futures contracts and over-the-counter derivatives involving commodities and commodity indices, could adversely affect the value of your Shares.”

Exchanges may also take steps, such as requiring liquidation of open positions, in the case of disorderly markets, market congestion and other market disruptions. These actions could require the Investing Pool to liquidate all or part of its CERF positions or require holders of positions in the futures contracts underlying the S&P GSCI-ER to liquidate their positions. This could affect the level of the Index and the NAV. See also “Risk Factors Relating to Commodities Markets – Regulatory developments with respect to the futures and over-the-counter derivatives markets, and in particular, with respect to speculative trading in futures contracts and over-the-counter derivatives involving commodities and commodity indices, could adversely affect the value of your Shares.”

 

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

a) While the current registration statement covering offers and sales of the Shares became effective on August 22, 2012, the prior registration statement expired on July 21, 2012 pursuant to Rule 415(a)(5) under the Securities Act of 1933, as amended (the “Securities Act”). As a result, Shares sold after the date that the previous registration statement expired and before the current registration statement became effective may not have been registered, and may not qualify for an exemption from registration, under the Securities Act. The failure to file a new registration statement before the expiration of the existing registration statement was inadvertent. One creation order was placed and executed on July 26, 2012, when the prior registration statement was no longer effective. Investors who purchased Shares which originally constituted part of the creation order from the Authorized Participant that placed the creation order, Merrill Lynch Professional Clearing Corp., could have rescission rights. Information about this creation order is summarized below:

 

Date of Execution of Creation Order

   Number
of
Shares
     Price
Per
Share
     Aggregate Value
of Consideration
Received
 

July 26, 2012

     50,000       $ 32.50       $ 1,625,000

 

* The proceeds of the creation order executed on July 26, 2012 consisted of CERFs and cash and/or Short-Term Securities in the Basket Amount. These assets were contributed by the Trust to the Investing Pool.

 

b) As described in the Trust’s first registration statement on Form S-1 (No. 333-126810), which was declared effective on July 19, 2006, proceeds received by the Trust from the issuance and sale of Shares to Authorized Participants generally consist of long positions in CERFs and cash (or Short-Term Securities in lieu of cash). Such proceeds are delivered to the Investing Pool in return for interests in the Investing Pool. These assets are held on behalf of the Investing Pool in an account with its clearing futures commission merchant until withdrawn in connection with redemptions of Shares or liquidated to pay expenses and liabilities of the Trust and the Investing Pool not assumed by the Sponsor or the Manager.

 

c) 100,000 Shares (2 baskets) were redeemed during the quarter ended September 30, 2012.

 

Periods

   Total Number of
Shares Redeemed
     Average Price Per
Share
 

7/01/12 to 7/31/12

     —         $ —     

8/01/12 to 8/31/12

     —           —     

9/01/12 to 9/30/12

     100,000         33.69   
  

 

 

    

Total

     100,000         33.69   
  

 

 

    

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

 

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Item 6. Exhibits

 

Exhibit No.

  

Description

3.1    Restated Certificate of Trust of iShares® S&P GSCI™ Commodity-Indexed Trust is incorporated by reference to Exhibit 3.1(i) to the registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on May 9, 2007
3.2    Amended and Restated Certificate of Formation of iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC is incorporated by reference to Exhibit 3.2(i) to the registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on May 9, 2007
4.1    Amended and Restated Trust Agreement is incorporated by reference to Exhibit 4.1 to the registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on September 12, 2007
4.2    Limited Liability Company Agreement is incorporated by reference to Exhibit 4.2 to the registrants’ Registration Statement on Form S-1 (Nos. 333-126810, 333-126810-01) filed with the Securities and Exchange Commission on July 14, 2006
4.3    Form of Authorized Participant Agreement is incorporated by reference to Exhibit 4.3 to the registrants’ Registration Statement on Form S-1 (Nos. 333-142259, 333-142259-01) filed with the Securities and Exchange Commission on December 27, 2007
4.4    Amendment, dated December 27, 2007, to the Amended and Restated Trust Agreement is incorporated by reference to Exhibit 4.1 to the registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on December 27, 2007
4.5    Amendment, dated December 27, 2007, to the Limited Liability Company Agreement is incorporated by reference to Exhibit 4.2 to the registrants’ Current Report on Form 8-K filed with the Securities and Exchange Commission on December 27, 2007
10.1    Investment Advisory Agreement is incorporated by reference to Exhibit 10.1 to the registrants’ Registration Statement on Form S-1 (Nos. 333-126810, 333-126810-01) filed with the Securities and Exchange Commission on July 14, 2006
10.2    Form of Sublicense Agreement is incorporated by reference to Exhibit 10.2 to the registrants’ Registration Statement Form S-1 (Nos. 333-126810, 333-126810-01) filed with the Securities and Exchange Commission on May 26, 2006
10.3    Form of Sublicense Agreement is incorporated by reference to Exhibit 10.3 to the registrants’ Registration Statement Form S-1 (Nos. 333-126810, 333-126810-01) filed with the Securities and Exchange Commission on May 26, 2006
10.4    Form of Futures Commission Merchant Agreement is incorporated by reference to Exhibit 10.4 to the registrants’ Registration Statement Form S-1 (Nos. 333-126810, 333-126810-01) filed with the Securities and Exchange Commission on May 26, 2006
31.1    Certification by Principal Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended, for iShares® S&P GSCI™ Commodity-Indexed Trust
31.2    Certification by Principal Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended, for iShares® S&P GSCI™ Commodity-Indexed Trust
31.3    Certification by Principal Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended, for iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC
31.4    Certification by Principal Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended, for iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC
32.1    Certification by Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2    Certification by Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS    XBRL Instance Document
101.SCH    XBRL Taxonomy Extension Schema Document
101.CAL    XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF    XBRL Taxonomy Extension Definition Linkbase Document
101.LAB    XBRL Taxonomy Extension Label Linkbase Document
101.PRE    XBRL Taxonomy Extension Presentation Linkbase Document

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant and co-registrant have duly caused this report to be signed on their behalf by the undersigned in the capacities* indicated, thereunto duly authorized.

BlackRock Asset Management International Inc.

Sponsor of the iShares® S&P GSCI™ Commodity-Indexed Trust (registrant)

Manager of the iShares® S&P GSCI™ Commodity-Indexed Investing Pool LLC (co-registrant)

 

/s/ Michael A. Latham

Michael A. Latham

President and Chief Executive Officer

(Principal executive officer)

Date: November 8, 2012

 

/s/ Jack Gee

Jack Gee

Chief Operating Officer and Chief Financial Officer

(Principal financial and accounting officer)

Date: November 8, 2012

 

* 

The registrant is a trust and the co-registrant is a limited liability company, and the persons are signing in their capacities as officers of BlackRock Asset Management International Inc., the Sponsor of the registrant and Manager of the co-registrant.

 

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