22 unchanged sentences
Liquidity and Capital Resources
+Added: The Trust does not have any material cash requirements as of the end of the latest fiscal period.
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.
7 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 pay any distributions during the quarter ended December 31, 2021.
+Added: Distributions paid during the current reporting period follow (annualized yield reflects the estimated annual yield an investor would receive if a monthly distribution stayed the same for the entire year going forward, and is calculated by annualizing the monthly distribution and dividing by the Trust NAV for the dates listed below):
+Added: FXA Distribution History
+Added: Annualized Yield
Results of Operations
1 unchanged sentence
Although the full and direct impact of COVID-19 on the Trust’s net comprehensive income (loss) during the years ended December 31, 2022 and 2021 cannot be known, it is believed that COVID-19 has 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: Despite being the best performing G10 currency in Q1, supported by massive gains across the commodities complex following Russia’s invasion of Ukraine, the Australian Dollar (AUD/USD) failed to keep its positive performance through Q2 and Q3, succumbing to recession-fears driven dollar strength and the sharp commodities selloff (especially in Q3).
+Added: The AUD is seen as a “commodity currency” given the country is a net energy exporter and commodities account for a large share of the country’s exports.
+Added: The fund did, however, gain significantly to end the year as the US dollar retreated and the selloff in commodities came to a halt.
The Australian Dollar (AUD/USD) performed negatively in 2021 as sluggish vaccine rollouts in Australia and the rise of the COVID-19 Delta and Omicron variants weighed on investor sentiment, serving as a headwind for the perceived riskier Australian Dollar.
1 unchanged sentence
Dollar on strong U.S.
−Removed: economic recovery and a more hawkish Federal Reserve System (the Fed) also pressured the AUD/USD spot rate.
+Added: economic recovery and a more hawkish U.S.
+Added: Federal Reserve System (the “Fed”) also pressured the AUD/USD spot rate.
Finally, given the Australian Dollar is a commodity currency (commodities account for a large share of Australia’s exports), rallying commodity prices provided support throughout the year, but not enough to reverse losses.
−Removed: The Australian Dollar (AUD/USD) ended 2020 with a positive performance, despite initially slipping to a 17-year low in March, at the onset of the COVID-19 pandemic.
−Removed: The outlook for the growth-linked currency turned more constructive in the second half of the year, against a backdrop of growing optimism around a global economic recovery, coupled with an environment of globally low interest rates and heightened fiscal support.
−Removed: Particularly, given China is one of Australia’s major trading partners, its rapid emergence from the depths of the pandemic provided further optimism for the currency.
−Removed: Finally, recovering commodity prices in the second half of the year further supported the commodity currency.
−Removed: 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: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, slightly offset by improvements this quarter to the current interest rate of 0.87%, as set forth in the FXA Rate Chart above.
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.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.