41 unchanged sentences
The following chart illustrates the movement in the price of the Shares based on (1) NAV per Share, (2) the “bid” and “ask” midpoint offered on NYSE Arca and (3) the Closing Spot Rate, expressed as a multiple of 100 Australian Dollars:
−Removed: The Sponsor is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to the Trust’s liquidity needs.
+Added: Liquidity and Capital Resources
+Added: The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs.
The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest.
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of September 30, 2021 was an annual nominal rate of 0.00%.
−Removed: The following chart provides the daily rate paid by the Depository since September 30, 2016:
+Added: The interest rate in effect as of March 31, 2022 was an annual nominal rate of 0.00%.
+Added: The following chart provides the daily rate paid by the Depository since March 31, 2017:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
2 unchanged sentences
When the interest deposited, if any, exceeds the sum of the Sponsor’s fee for the prior month plus other Trust expenses, if any, the Trustee converts the excess into USD at the prevailing market rate and distributes the USD as promptly as practicable to Shareholders on a pro-rata basis (in accordance with the number of Shares that they own).
−Removed: The Trust did not make any distributions during the quarter ended September 30, 2021.
−Removed: Critical Accounting Policies
+Added: The Trust did not make any distributions during the quarter ended March 31, 2022.
+Added: Critical Accounting Estimates
The financial statements and accompanying notes are prepared in accordance with U.S.
1 unchanged sentence
These estimates and assumptions affect the Trust’s application of accounting policies.
−Removed: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies on Form 10-K for the year ended December 31, 2020.
+Added: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2021.
Results of Operations
−Removed: During the nine months ended September 30, 2021, an additional 150,000 Shares were created in exchange for 14,935,112 Australian Dollars and 550,000 Shares were redeemed in exchange for 54,716,972 Australian Dollars.
−Removed: In addition, 582,078 Australian Dollars were withdrawn to pay the portion of the Sponsor’s fee that exceeded interest earned.
−Removed: As of September 30, 2021, the number of Australian Dollars owned by the Trust was 163,959,512, resulting in a redeemable capital Share value of $118,397,261.
−Removed: During the year ended December 31, 2020, an additional 1,150,000 Shares were created in exchange for 114,776,341 Australian Dollars and 400,000 Shares were redeemed in exchange for 39,913,155 Australian Dollars.
−Removed: In addition, 529,228 Australian Dollars were withdrawn to pay the Sponsor’s fee and the interest expense on currency deposits, due to the negative interest rate.
−Removed: As of December 31, 2020, the number of Australian Dollars owned by the Trust was 204,323,450, resulting in a redeemable capital Share value of $157,611,098.
−Removed: A decrease in the Trust’s redeemable capital Share value from $157,611,098 at December 31, 2020 to $118,397,261 at September 30, 2021, was primarily the result of a decrease in the number of Shares outstanding from 2,050,000 at December 31, 2020 to 1,650,000 at September 30, 2021, coupled with a decrease in the Closing Spot Rate from 0.7717 at December 31, 2020 to 0.7224 at September 30, 2021.
−Removed: No interest income was earned during the three months ended September 30, 2021 and 2020 due to an annual nominal interest rate which remained at or below 0.00% through those periods, and interest income decreased from $ 84,292 for the nine months ended September 30, 2020 to $ 0 for the nine months ended September 30, 2021 , attributable primaril y to a de crease in the annual nominal interest rate paid by the Depository, as set forth in the FXA Daily Rate chart above.
−Removed: The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the Australian Dollars in the Trust.
−Removed: Due primarily to a decrease in the weighted-average Australian Dollars in the Trust, the Sponsor’s fee decreased from $137,269 for the three months ended September 30, 2020 to $124,292 for the three months ended September 30, 2021.
−Removed: Due primarily to an increase in the weighted-average Australian Dollars in the Trust, the Sponsor’s fee increased from $306,089 for the nine months ended September 30, 2020 to $429,242 for the nine months ended September 30, 2021.
−Removed: Because the annual interest rate paid by the Depository fell briefly below 0.00% during the nine months ended September 30, 2020 (as set forth in the chart above), the Trust incurred interest expense on currency deposits.
−Removed: Due primarily to an increase in the interest rate (from a negative rate to 0.00%), interest expense on currency deposits decreased from $18,141 for the nine months ended September 30, 2020 to $0 for the nine months ended September 30, 2021.
−Removed: The only expense of the Trust during the three and nine months ended September 30, 2021 and the three months ended September 30, 2020 was the Sponsor’s fee.
−Removed: The only expenses of the Trust during the nine months ended September 30, 2020 were the Sponsor’s fee and interest expense on currency deposits.
−Removed: The Trust’s net comprehensive income (loss) for the three months ended September 30, 2021 was $(124,292) due to the Sponsor’s fee of $124,292 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive income (loss) for the three months ended September 30, 2020 was $(137,269) due to the Sponsor’s fee of $137,269 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive income (loss) for the nine months ended September 30, 2021 was $(429,242) due to the Sponsor’s fee of $429,242 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive income (loss) for the nine months ended September 30, 2020 was $(239,938) due to the Sponsor’s fee of $306,089 and interest expense on currency deposits of $18,141 exceeding interest income of $84,292.
−Removed: Cash dividends were not paid by the Trust for the three months ended September 30, 2021 and 2020, and decreased from $0.02 per Share for the nine months ended September 30, 2020 to $0.00 per Share for the nine months ended September 30, 2021.
−Removed: The decrease in cash dividends per Share was primarily due to a decrease in the annual nominal interest rate paid by the Depository.
+Added: During the three months ended March 31, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
+Added: Additionally, the Trust’s net comprehensive income (loss) during the three months ended March 31, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent event.
+Added: Although the full and direct impact of COVID-19 and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2022 and 2021 cannot be known, it is believed that COVID-19 and the Russia-Ukraine conflict have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
+Added: The Australian Dollar (AUD/USD) ended the first quarter of 2022 as the best performing G10 currency, receiving a significant boost from gains across the commodities complex, and specifically energy, as the military conflict in Ukraine escalated throughout the
+Added: quarter and oil prices increased .
+Added: With Australia being a net energy exporter and commodities accounting for a large share of the country’s exports, higher goods prices boosted demand for the Australian Dollar (which is known as a “commodity currency”), which outweigh ed downward pressure from an ultra-dovish Australian central bank.
+Added: The Australian Dollar (AUD/USD) performed negatively in the first quarter of 2021, mostly due to a rebound in the U.S.
+Added: Dollar on strong U.S.
+Added: economic recovery and rising treasury yields.
+Added: Persistent market volatility also reduced investor demand for the perceived riskier Australian Dollar.
+Added: Finally, given the Australian Dollar is a commodity currency (commodities account for a large share of Australia’s exports) and Australia is a net energy exporter, plunging oil prices in March 2021 due to extended lockdowns in Europe added additional pressure on the currency.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years to the current interest rate of 0.00%, as set forth in the FXA Rate Chart above.
+Added: As long as the Sponsor’s fee and the interest expense on currency deposits, if any, exceed interest income, the Trust will incur a net comprehensive loss.
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.