46 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of June 30, 2022 was an annual nominal rate of 0.10%.
−Removed: The following chart provides the daily rate paid by the Depository since June 30, 2017:
+Added: The interest rate in effect as of September 30, 2022 was an annual nominal rate of 1.10%.
+Added: The following chart provides the daily rate paid by the Depository since September 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 June 30, 2022.
+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: FXB Distribution History
+Added: Annualized Yield
Critical Accounting Estimates
4 unchanged sentences
Results of Operations
−Removed: 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.
−Removed: 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.
−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 and six months ended June 30, 2022 and 2021 cannot be known, it is believed that COVID-19 and the Russia-Ukraine conflict
−Removed: 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) continued its negative performance in the second quarter of 2022, declining to the lowest since March 2020 as the U.S.
−Removed: 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.
−Removed: The deepening energy crisis in Europe and spiking concerns for a recession further weighed on the currency.
−Removed: In May, the BOE projected an economic recession for the UK in Q4 2022.
−Removed: The British Pound Sterling (GBP/USD) ended the first quarter of 2021 largely flat.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: dollar given its perception as the world’s safe haven currency), helped the currency pair recover to the highest since 2018 in Q1.
−Removed: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years to the current interest rate of 0.10%, as set forth in the FXB Rate Chart above.
−Removed: 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.
+Added: During the three and nine months ended September 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 nine months ended September 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 the COVID-19 pandemic and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021 cannot be known, it is believed that the COVID-19 pandemic 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) fell sharply in the third quarter of 2022, pushing the Fund’s NAV to the lowest level since its inception back in 2006.
+Added: The key driver of this was the strength in the US dollar, which soared past 20-year highs in September, supported by expectations for aggressive inflation-fighting Federal Reserve (Fed) policy.
+Added: Additionally, the deepening energy crisis in Europe resulting from Russia’s dwindling natural gas supplies exacerbated existing recession concerns, weighing heavily on European currencies including the British Pound Sterling.
+Added: The British Pound Sterling (GBP/USD) ended the third quarter of 2021 in negative territory.
+Added: Continued delays in reopenings in Europe due to the rapidly spreading delta variant reversed expectations for a speedy post-pandemic recovery, especially in contrast to the US.
+Added: In addition, rising treasury yields as the Fed signaled the start of stimulus tapering further boosted the dollar, hence pressuring the currency pair.
+Added: The British Pound Sterling (GBP/USD) fell sharply in the first three quarters of 2022, weighed down heavily by persistent dollar strength given the Fed’s more hawkish stance on policy tightening and strengthening safe haven demand from growing global recession fears.
+Added: Additionally, given Europe’s geographical proximity and strong reliance on Russian commodities, especially natural gas, developments in the Russia-Ukraine conflict and resulting retaliatory/punitive actions leading to the deepening energy crisis in Q2 and Q3, weighed heavily on European currencies including the British Pound Sterling.
+Added: The British Pound Sterling (GBP/USD) failed to maintain its positive performance in the first three quarters of 2021.
+Added: Despite rallying in Q1 on improving domestic economic growth outlook and gradual reopenings, driven by the UK’s speedy vaccine rollout, the rapid spread of the delta variant in Q2 and Q3 reversed market optimism, denting expectations for a swift recovery.
+Added: The currency was also pressured by a strengthening dollar as the Fed signaled the start of stimulus tapering, sending treasury yields higher – higher bond yields tend to boost the country’s currency.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, but it increased in the current quarter, to the current interest rate of 1.10%, as set forth in the FXB Rate Chart above.
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.