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 British Pounds Sterling:
−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 300,000 Shares were created in exchange for 28,955,659 British Pounds Sterling and 300,000 Shares were redeemed in exchange for 28,947,585 British Pounds Sterling.
−Removed: In addition, 327,959 British Pounds Sterling were withdrawn to pay the portion of the Sponsor’s fee that exceeded the interest earned.
−Removed: As of September 30, 2021, the number of British Pounds Sterling owned by the Trust was 106,011,904, resulting in a redeemable capital Share value of $142,894,202.
−Removed: During the year ended December 31, 2020, an additional 950,000 Shares were created in exchange for 91,946,141 British Pounds Sterling and 1,150,000 Shares were redeemed in exchange for 111,354,285 British Pounds Sterling.
−Removed: In addition, 304,912 British Pounds Sterling were withdrawn to pay the portion of the Sponsor’s fee that exceeded interest earned.
−Removed: As of December 31, 2020, the number of British Pounds Sterling owned by the Trust was 106,331,789, resulting in a redeemable capital Share value of $145,299,977.
−Removed: A de crease in the Trust’s redeemable capital Share value from $ 145,299,977 at December 31, 2020 to $ 142,894,202 at September 30, 2021 , was primarily the result of a de crease in the Closing Spot Rate from 1.3 67 at December 31, 2020 to 1.3 4 8 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 $105,533 for the nine months ended September 30, 2020 to $0 for the nine months ended September 30, 2021, attributable primarily to a decrease in the annual nominal interest rate paid by the Depository, as set forth in the FXB Daily Rate chart above.
−Removed: The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the British Pounds Sterling in the Trust.
−Removed: Due primarily to an increase in the weighted-average British Pounds Sterling in the Trust, the Sponsor’s fee increased from $125,281 for the three months ended September 30, 2020 to $150,185 for the three months ended September 30, 2021, and increased from $399,656 for the nine months ended September 30, 2020 to $451,492 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 2020 was the Sponsor’s fee.
−Removed: The Trust’s net comprehensive income (loss) for the three months ended September 30, 2021 was $(150,185) due to the Sponsor’s fee of $150,185 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive income (loss) for the three months ended September 30, 2020 was $(125,281) due to the Sponsor’s fee of $125,281 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive income (loss) for the nine months ended September 30, 2021 was $(451,492) due to the Sponsor’s fee of $451,492 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive income (loss) for the nine months ended September 30, 2020 was $(294,123) due to the Sponsor’s fee of $399,656 exceeding interest income of $105,533.
−Removed: Cash dividends were not paid by the Trust for the three and nine months ended September 30, 2021 and 2020, as the Trust’s interest income did not exceed the Trust’s expenses during those periods.
+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 British Pound Sterling (GBP/USD) performed negatively in the first quarter of 2022, as heightened geopolitical tensions over the military conflict in Ukraine boosted investor demand for safe haven currencies like the U.S.
+Added: D ollar, while simultaneously weigh ing on its European counterparts , including the British Pound Sterling .
+Added: Uncertainty loomed over Europe’s macroeconomic outlook, given its geographical proximity and strong reliance on Russian commodities, as the Russia-Ukraine conflict escalated throughout the quarter and the call for additional sanctions against Russia grew.
+Added: The Bank of England’s resulting cautious tone relative to the U.S.
+Added: Fed eral Reserve further weighed on the GBP/USD currency pair .
+Added: The British Pound Sterling (GBP/USD) ended the first quarter of 2021 with positive performance.
+Added: An improving domestic economic growth outlook and gradual reopening of businesses, driven by the United Kingdom’s speedy vaccine rollout, coupled with general firming in the market’s risk appetite (which tends to weigh on the U.S.
+Added: Dollar given its perception as the world’s safe haven currency), helped the GBP/USD currency pair recover to the highest rate since 2018 throughout the first quarter of 2021, before giving up some of its gains to a strengthening dollar at the end of the quarter.
+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 FXB 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.