What changed in this filing

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Item 1A. Risk Factors

2023-02-24 compared with 2022-02-25 · 43 added, 35 removed, 156 unchanged (33% of the section changed)

You should consider carefully the risks described below before making an investment decision.

You should also refer to the other information included in this report, including the Trust’s financial statements and the related notes .

ECONOMIC CONDITIONS

1 unchanged sentence

Fluctuations in the price of the Canadian Dollar could materially and adversely affect the value of the Shares.

The Shares are designed to reflect the price of the Canadian Dollar, plus accumulated interest, if any, less the Trust’s expenses.

Several factors may affect the price of the Canadian Dollar, including:

Sovereign debt levels and trade deficits;

Domestic and foreign inflation rates and interest rates and investors’ expectations concerning those rates;

Domestic and foreign inflation rates and interest rates and investors’

expectations concerning those rates;

Currency exchange rates;

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The resulting volatility in the Canadian Dollar/USD exchange rate could materially and adversely affect the performance of the Shares.

If interest earned by the Trust does not exceed the Trust’s expenses, the Trustee will withdraw Canadian Dollars from the Trust to pay these excess expenses, which will reduce the amount of Canadian Dollars represented by each Share on an ongoing basis and may result in adverse tax consequences for Shareholders.

Each outstanding Share represents a fractional, undivided interest in the Canadian Dollars held by the Trust.

Recently, the amount of interest earned by the Trust has not exceeded the Trust’s expenses;

accordingly, the Trustee has been required to withdraw Canadian Dollars from the Trust to pay these excess expenses.

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In this event, the Shares will only maintain their original price if the price of the Canadian Dollar increases.

There is no guarantee that interest earned by the Trust in the future will exceed the Trust’s expenses.

Investors should be aware that a gradual decline in the amount of Canadian Dollars represented by the Shares may occur regardless of whether the trading price of the Shares rises or falls in response to changes in the price of the Canadian Dollar.

The estimated ordinary operating expenses of the Trust, which accrue daily, are described in “Business – The Trust – Trust Expenses.”

The estimated ordinary operating expenses of the Trust, which accrue daily, are described in “Business –

The Trust –

Trust Expenses.”

The payment of expenses by the Trust will result in a taxable event to Shareholders.

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Interest on the primary deposit account, if any accrues daily and is paid monthly.

The Depository may change the rate at which interest accrues, including reducing the interest rate to zero or below zero, based upon changes in market conditions or the Depository’s liquidity needs.

The Depository notifies the Sponsor of the interest rate applied each business day after the close of such business day.

The Sponsor discloses the current interest rate on the Trust’s website.

If the Sponsor believes that the interest rate paid by the Depository is not adequate, the Sponsor’s sole recourse is to remove the Depository and terminate the Deposit Accounts.

The Sponsor discloses the current interest rate on the Trust’s website.

If the Sponsor believes that the interest rate paid by the Depository is not adequate, the Sponsor’s sole recourse is to remove the Depository and terminate the Deposit Accounts.

The Depository is not paid a fee for its services to the Trust;

rather, it generates income or loss based on its ability to earn a “spread” or “margin” over the interest it pays to the Trust by using the Trust’s Canadian Dollars to make loans or in other banking operations.

rather, it generates income or loss based on its ability to earn a “spread”

or “margin”

over the interest it pays to the Trust by using the Trust’s Canadian Dollars to make loans or in other banking operations.

For these reasons, you should not expect that the Trust will be paid the best available interest rate at any time or over time.

If the Trust incurs expenses in USD, the Trust would be required to sell Canadian Dollars to pay these expenses.

The sale of the Trust’s Canadian Dollars to pay expenses in USD at a time of low Canadian Dollar prices could adversely affect the value of the Shares.

The Trustee will sell Canadian Dollars held by the Trust to pay Trust expenses, if any, incurred in USD, irrespective of then-current Canadian Dollar prices.

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Consequently, if the Trust incurs expenses in

USD, the Trust’s Canadian Dollars may be sold at a time when the Canadian Dollar price is low, resulting in a negative effect on the value of the Shares.

The Shares may trade at a price which is at, above, or below the NAV per Share.

The NAV per Share fluctuates with changes in the market value of the Trust’s assets.

The market price of Shares can be expected to fluctuate in accordance with changes in the NAV per Share, but also in response to market supply and demand.

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Shareholders do not have the rights enjoyed by investors in certain other financial instruments.

As interests in a grantor trust, the Shares have none of the statutory rights normally associated with the ownership of shares of a business corporation, including, for example, the right to bring “oppression” or “derivative” actions.

or “derivative”

Apart from the rights afforded to them by federal and state securities laws, Shareholders have only those rights relative to the Trust, the Trust property and the Shares that are set forth in the Depositary Trust Agreement.

1 unchanged sentence

They do not have the right to elect directors.

See “Business – The Shares – Limited Rights” for a description of the limited rights of the Shareholders.

See “Business –

The Shares –

Limited Rights”

for a description of the limited rights of the Shareholders.

Shareholders that are not Authorized Participants may only purchase or sell their Shares in secondary trading markets.

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Canadian Dollars deposited in the Deposit Accounts by an Authorized Participant are commingled with Canadian Dollars deposited by other Authorized Participants and are held by the Depository in either the primary deposit account or the secondary deposit account of the Trust.

Canadian Dollars held in the Deposit Accounts are not segregated from the Depository’s other assets.

The Trust has no proprietary rights in or to any specific Canadian Dollars held by the Depository and will be an unsecured creditor of the Depository with respect to the Canadian Dollars held in the Deposit Accounts in the event of the insolvency of the Depository or the U.S.

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In the event the Depository, the U.S.

bank of which it is a branch or any local cash correspondent holding the currency on deposit for the benefit of the Trust becomes insolvent, the Depository’s assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant for the amount of Canadian Dollars deposited by the Trust or the Authorized Participant and, in such event, the Trust and any Authorized Participant will generally have no right in or to assets other than those of the Depository.

In the case of insolvency of the Depository or JPMorgan Chase Bank, N.A., the U.S.

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Further, under U.S.

law, in the case of the insolvency of JPMorgan Chase Bank, N.A., the claims of creditors in respect of accounts (such as the Trust’s Deposit Accounts) that are maintained with an overseas branch of JPMorgan Chase Bank, N.A.

or with a local cash correspondent will be subordinate to claims of creditors in respect of accounts maintained with JPMorgan Chase Bank, N.A.

in the U.S., greatly increasing the risk that the Trust and the Trust’s beneficiaries would suffer a loss.

The License Agreement with The Bank of New York Mellon may be terminated by The Bank of New York Mellon in the event of a material breach.

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the License Agreement in the event the other party commits a material breach.

If the License Agreement is terminated and one or more of The Bank of New York Mellon’s patent applications issue as patents, then The Bank of New York Mellon may claim that the operation of the Trust violates its patent or patents and seek an injunction forcing the Trust to cease operation and the Shares to cease trading.

In that case, the Trust might be forced to terminate and liquidate, which would adversely affect Shareholders.

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For example, if the Depository were to resign or be removed, then the Sponsor would be required to terminate the Trust.

Shareholders tendering their Shares within 90 days of the Trust’s termination will receive the amount of Canadian Dollars represented by their Shares.

Shareholders may incur significant fees if they choose to convert the Canadian Dollars they receive to USD.

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In addition, the Depository has no duty to continue to act as the depository of the Trust.

The Depository can terminate its role as depository for any reason whatsoever upon 90 days’ notice to the Trust.

The Depository can terminate its role as depository for any reason whatsoever upon 90 days’

notice to the Trust.

If directed by the Sponsor, the Trustee must terminate the Depository.

4 unchanged sentences

Any such rejection could adversely affect a redeeming Shareholder.

For example, the resulting delay would adversely affect the value of the Shareholder’s redemption distribution if the NAV were to decline during the delay.

In the Depositary Trust Agreement, the Sponsor and the Trustee disclaim any liability for any loss or damage that may result from any such rejection.

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COVID-19 PANDEMIC

The novel coronavirus known as COVID-19 is harming the global, regional and national economies in unexpected, unpredictable ways that could materially and adversely affect the value of the Shares.

COVID-19 spread globally throughout 2020 and 2021 and continues to spread in 2022.

This pandemic has had material adverse effects on the global economy, including lower levels of economic activity and widespread unemployment.

The economic turmoil has led to unprecedented amounts of stimulus in regional and national economies by central banks and other governmental

Despite massive intervention, the humanitarian and economic crisis continues, and financial markets have generally experienced heightened volatility.

No assurance can be given that the disruption will end soon or that the value of the Shares will not be affected materially and adversely by the pandemic and its consequences.

The ongoing COVID-19 pandemic continues to impact global, regional and national economies in unexpected and unpredictable ways that could materially and adversely affect the value of the Shares.

The ongoing COVID-19 pandemic continues to have material adverse effects on the global economy and has increased economic uncertainty and financial market volatility and caused a decline in consumer and business confidence.

No assurance can be given that the disruption will end soon or that the value of the Shares will not be affected materially and adversely by the pandemic

and its ongoing global economic impact.

Escalation or prolonged continuation of the pandemic could exacerbate other risk factors identified in this Report and materially and adversely affect the value of the Shares.

4 unchanged sentences

Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites.

Cyber security failures or breaches of the Trust’s third party service providers (including, but not limited to, the Trustee and the Sponsor) have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of Shareholders or Authorized Participants to transact business in Shares and Baskets respectively, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs.

In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.

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For instance, it is possible that certain existing risks have not been identified or that new risks will emerge before countervailing measures can be implemented.

Furthermore, the Trust cannot control, or even necessarily influence, the cyber security plans and systems put in place by the Trust’s third party service providers.

Since the Trust is dependent upon third party service providers (including the Sponsor and Trustee) for substantially all of its operational needs, the Trust is subject to the risk that a cyber attack on a service provider will materially impair its normal operations even if the Trust itself is not subject to such an attack.

In addition, a service provider that has experienced a cyber security incident may divert resources normally devoted to servicing the Trust to addressing the incident, which would be likely to have an adverse effect on the Trust’s operations.

UNRESOLVED STAFF COMMENTS

The Trust does not own or use physical properties in the conduct of its business.

The Sponsor’s headquarters are located at 3500 Lacey Road, Suite 700, Downers Grove, Illinois 60515.

LEGAL PROCEEDINGS

MINE SAFETY DISCLOSURES

MINE S AFETY DISCLOSURES

Not applicable.

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.

What changed 10-K

Item 1A. Risk Factors