31 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: FXB 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, 2021 and 2020 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: The British Pound Sterling (GBP/USD) fell sharply in the first three quarters of the year before partially reversing some of the losses in Q4.
+Added: The currency pair was weighed down heavily by persistent dollar strength given the U.S.
+Added: Federal Reserve System (the "Fed") is 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 Ukraine war and resulting retaliatory/punitive actions leading to the deepening energy crisis in Q2 and Q3, weighed heavily on European currencies, pushing the Fund’s NAV to the lowest level since its inception back in 2006.
+Added: However, the GBP gained nearly 8% against the USD in Q4 as the dollar weakened amid growing expectations for a moderation in Fed rate hikes, following the larger-than-expected drop in US inflation.
The British Pound Sterling (GBP/USD) ended 2021 with a slightly negative performance, as tightening restrictions to curb the spread of the COVID-19 Omicron variant in the United Kingdom threatened to derail the Bank of England’s rate hike plans.
1 unchanged sentence
Dollar given its perception as one of the world’s safe haven currencies), helped the GBP/USD currency pair recover to nearly the highest level since 2018, before giving up all its gains to the COVID-19 Omicron variant in late 2021.
−Removed: The British Pound Sterling (GBP/USD) ended 2020 with a positive performance, despite plunging to an over 35-year low right at the onset of the COVID-19 pandemic.
−Removed: As lockdowns were put into place, spooked investors aggressively ditched the British Pound Sterling for the U.S.
−Removed: Dollar, which is generally perceived as one of the world’s safe haven currencies, while concerns over the lack of progress in post-Brexit talks added further downward pressure.
−Removed: However, the GBP/USD currency pair gradually recovered through the year supported by a falling U.S.
−Removed: Dollar and improving risk sentiment.
−Removed: In addition, growing optimism around Brexit talks and Britain’s then-new Brexit deal with the European Union at the end 2020, left the GBP/USD currency pair at the highest level since mid-2018.
−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 FXB 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 year to the current interest rate of 2.00%, as set forth in the FXB 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.