MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
−Removed: The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to explain certain items regarding the Trust’s financial condition as of December 31, 2019, and its results of operations for the fiscal year ended December 31, 2019, the two months ended December 31, 2018, and the fiscal year ended October 31, 2018.
+Added: The following discussion and analysis was prepared to supplement information contained in the accompanying financial statements and is intended to explain certain items regarding the Trust’s financial condition as of December 31, 2020, and its results of operations for the fiscal years ended December 31, 2020 and December 31, 2019.
It should be read in conjunction with the “Selected Financial Data” and the accompanying audited financial statements and related notes thereto contained in this report.
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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: 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):
−Removed: FXC Distribution History
−Removed: Annualized Yield
+Added: The Trust did not pay any distributions during the quarter ended December 31, 2020.
Results of Operations
−Removed: For the year ended December 31, 2019, the two months ended December 31, 2018 and the year ended October 31, 2018
+Added: For the year ended December 31, 2020 and the year ended December 31, 2019
During the year ended December 31, 2020, an additional 1,000,000 Shares were created in exchange for 98,523,433 Canadian Dollars and 600,000 Shares were redeemed in exchange for 59,135,871 Canadian Dollars.
+Added: In addition, 439,240 Canadian Dollars were withdrawn to pay the portion of the Sponsor’s fee that exceeded interest earned.
As of December 31, 2020, the number of Canadian Dollars owned by the Trust was 191,849,213, resulting in a redeemable capital Share value of $150,539,263.
−Removed: During the two months ended December 31, 2018, an additional 400,000 Shares were created in exchange for 39,458,295 Canadian Dollars and 250,000 Shares were redeemed in exchange for 24,661,434 Canadian Dollars.
+Added: During the year ended December 31, 2019, an additional 850,000 Shares were created in exchange for 83,848,876 Canadian Dollars and 1,550,000 Shares were redeemed in exchange for 152,900,891 Canadian Dollars.
As of December 31, 2019, the number of Canadian Dollars owned by the Trust was 152,900,891, resulting in a redeemable capital Share value of $117,963,792.
−Removed: During the year ended October 31, 2018, an additional 550,000 Shares were created in exchange for 54,255,052 Canadian Dollars and 750,000 Shares were redeemed in exchange for 73,984,431 Canadian Dollars.
−Removed: In addition, 4,301 Canadian Dollars were withdrawn to pay the portion of the Sponsor’s fee that exceeded interest earned.
−Removed: As of October 31, 2018, the number of Canadian Dollars owned by the Trust was 207,156,045, resulting in a redeemable capital Share value of $157,833,312.
−Removed: A decrease in the Trust’s redeemable capital Share value from $162,583,352 at December 31, 2018 to $117,963,792 at December 31, 2019 was primarily the result of a decrease in the number of Shares outstanding from 2,250,000 at December 31, 2018 to 1,550,000 at December 31, 2019, but partially offset by an increase in the Closing Spot Rate from 0.7322 at December 31, 2018 to 0.7712 at December 31, 2019.
−Removed: An increase in the Trust’s redeemable capital Share value from $157,833,312 at October 31, 2018 to $162,583,352 at December 31, 2018, was primarily the result of an increase in the number of Shares outstanding from 2,100,000 at October 31, 2018 to 2,250,000 at December 31, 2018, but partially offset by a decrease in the Closing Spot Rate from 0.7615 at October 31, 2018 to 0.7322 at December 31, 2018.
−Removed: Interest income increased from $1,216,895 for the year ended October 31, 2018 to $1,477,677 for the year ended December 31, 2019 attributable primarily to a decrease in the annual nominal interest rate paid by the Depository, as set forth in the FXC Daily Rate chart above.
−Removed: This increase was partially offset by a decrease in the weighted-average Canadian Dollars in the Trust.
−Removed: Interest income increased from $125,346 for the two months ended December 31, 2017 to $280,820 for the two months ended December 31, 2018, attributable primarily to an increase in the annual nominal interest rate paid by the Depository, as set forth in the chart above, but partially offset by a decrease in the weighted-average Canadian Dollars in the Trust.
−Removed: The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the Canadian Dollars in the Trust.
−Removed: Due primarily to a decrease in the weighted-average Canadian Dollars in the Trust, the Sponsor’s fee decreased from $663,962 for the year ended October 31, 2018 to $505,651 for the year ended December 31, 2019.
−Removed: The only expense of the Trust during the year ended December 31, 2019 was the Sponsor’s fee.
+Added: An increase in the Trust’s redeemable capital Share value from $117,963,792 at December 31, 2019 to $150,539,263 at December 31, 2020 was primarily the result of an increase in the number of Shares outstanding from 1,550,000 at December 31, 2019 to 1,950,000 at December 31, 2020, coupled with an increase in the Closing Spot Rate from 0.7712 at December 31, 2019 to 0.7849 at December 31, 2020.
+Added: Interest income decreased from $1,477,677 for the year ended December 31, 2019 to $298,875 for the year ended December 31, 2020 attributable primarily to a decrease in the annual nominal interest rate paid by the Depository, as set forth in the FXC Daily Rate chart above, coupled with a decrease in the weighted-average Canadian Dollars in the Trust.
The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the Canadian Dollars in the Trust.
−Removed: Due primarily to a decrease in the weighted-average Canadian Dollars in the Trust, the Sponsor’s fee decreased from $115,516 for the two months ended December 31, 2017 to $102,760 for the two months ended December 31, 2018.
−Removed: The only expense of the Trust during the two months ended December 31, 2018 was the Sponsor’s fee.
−Removed: The Trust’s net comprehensive income for the year ended December 31, 201 9 was $ 972,026 , due to the interest income of $ 1,477,677 exceeding the Sponsor’s fee of $ 505,651 .
−Removed: The Trust’s net comprehensive income for the year ended October 31, 201 8 was $ 552,933 , due to the interest income of $ 1,216,895 exceeding the Sponsor’s fee of $ 663,962 .
−Removed: Cash dividends per Share increased from $0.22 per Share for the year ended October 31, 2018 to $0.58 per Share for the year ended December 31, 2019.
−Removed: This increase in cash dividends per Share was primarily the result of an increase in the annual nominal interest rate paid by the Depository.
−Removed: The Trust’s net comprehensive income for the two months ended December 31, 2018 was $178,060 due to interest income of $280,820 exceeding the Sponsor’s fee of $102,760.
−Removed: The Trust’s net comprehensive income for the two months ended December 31, 2017 was $9,830 due to interest income of $125,346 exceeding the Sponsor’s fee of $115,516.
−Removed: Cash dividends per Share increased from $0.01 per Share for the two months ended December 31, 2017 to $0.09 per Share for the two months ended December 31, 2018.
−Removed: The increase in cash dividends per Share was primarily the result of an increase in the annual nominal interest rate paid by the Depository.
+Added: Due primarily to a decrease in the weighted-average Canadian Dollars in the Trust, the Sponsor’s fee decreased from $505,651 for the year ended December 31, 2019 to $493,949 for the year ended December 31, 2020.
+Added: The only expense of the Trust during the years ended December 31, 2020 and December 31, 2019 was the Sponsor’s fee.
+Added: The Trust’s net comprehensive income (loss) for the year ended December 31, 2020 was $(195,074), due to the Sponsor’s fee of $493,949 exceeding interest income of $298,875.
+Added: The Trust’s net comprehensive income (loss) for the year ended December 31, 2019 was $972,026, due to interest income of $1,477,677 exceeding the Sponsor’s fee of $505,651.
+Added: Cash dividends per Share decreased from $0.58 per Share for the year ended December 31, 2019 to $0.15 per Share for the year ended December 31, 2020.
+Added: This decrease in cash dividends per Share was primarily the result of a decrease in the annual nominal interest rate paid by the Depository.
Critical Accounting Policies
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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.