42 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.
1 unchanged sentence
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of March 31, 2022 was an annual nominal rate of 0.00%.
−Removed: The following chart provides the daily rate paid by the Depository since March 31, 2017:
+Added: The interest rate in effect as of June 30, 2022 was an annual nominal rate of 0.10%.
+Added: The following chart provides the daily rate paid by the Depository since June 30, 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 March 31, 2022.
+Added: The Trust did not make any distributions during the quarter ended June 30, 2022.
Critical Accounting Estimates
4 unchanged sentences
Results of Operations
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: D ollar, while simultaneously weigh ing on its European counterparts , including the British Pound Sterling .
−Removed: 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.
−Removed: The Bank of England’s resulting cautious tone relative to the U.S.
−Removed: Fed eral Reserve further weighed on the GBP/USD currency pair .
−Removed: The British Pound Sterling (GBP/USD) ended the first quarter of 2021 with positive performance.
−Removed: 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.
−Removed: 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: During the three and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 2022 and 2021 cannot be known, it is believed that COVID-19 and the Russia-Ukraine conflict
+Added: 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) continued its negative performance in the second quarter of 2022, declining to the lowest since March 2020 as the U.S.
+Added: dollar rallied to a 20-year high, supported by expectations for aggressive inflation-fighting Federal Reserve (Fed) policy versus the Bank of England’s (BOE) comparatively dovish stance on rate hikes.
+Added: The deepening energy crisis in Europe and spiking concerns for a recession further weighed on the currency.
+Added: In May, the BOE projected an economic recession for the UK in Q4 2022.
+Added: The British Pound Sterling (GBP/USD) ended the first quarter of 2021 largely flat.
+Added: After gaining on optimism around the UK’s post-COVID-19 economic recovery, supported by speedy vaccinations and easing restrictions, and weakness in the U.S.
+Added: dollar, the delay in reopenings due to rising COVID-19 cases at the end of the quarter caused the pound to tumble, wiping out all its earlier gains.
+Added: The British Pound Sterling (GBP/USD) fell sharply in the first half of the year, weighed down by persistent dollar strength given the Fed’s more hawkish stance on policy tightening and strengthening safe haven demand from growing global recession fears – the dollar is viewed as a safe haven currency.
+Added: Given Europe’s geographical proximity and strong reliance on Russian commodities, uncertainty around the impact of the military conflict in Ukraine and the deepening energy crisis in Q2 weighed heavily on the GBP.
+Added: The British Pound Sterling (GBP/USD) managed to post a small gain in the first half of 2021 despite the sharp reversal at the end of Q2 as the rise in COVID-19 cases delayed planned reopenings.
+Added: An improving domestic economic growth outlook and gradual reopenings, driven by the UK’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 currency pair recover to the highest since 2018 in Q1.
Additionally, the interest rate paid by the Depository has generally trended downward over the past several years to the current interest rate of 0.10%, as set forth in the FXB Rate Chart above.
1 unchanged sentence
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.