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 March 31, 2024 was an annual nominal rate of 0.25%.
−Removed: The following chart provides the daily rate paid by the Depository since March 31, 2019:
+Added: The interest rate in effect as of June 30, 2024 was an annual nominal rate of 0.25%.
+Added: The following chart provides the daily rate paid by the Depository since June 30, 2019:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
11 unchanged sentences
Results of Operations
−Removed: During the three months ended March 31, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023 which are considered to be unusual or infrequent events.
−Removed: Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2024 and 2023 cannot be known, it is believed that they 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 Swiss Franc (CHF/USD) posted a loss in the first three months of 2024.
−Removed: While some of this was driven by gains in the
−Removed: USD – the Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts, supporting US yields – the pair was heavily pressured after the Swiss National Bank (“SNB”) became the first major central bank to start cutting its interest rates in March.
+Added: During the three and six months ended June 30, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (Fed) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023, which are considered to be unusual or infrequent events.
+Added: Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil, on the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2024 and 2023 cannot be known, it is believed that they 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 Swiss Franc (CHF/USD) posted a gain in the second quarter of 2024.
+Added: While the pair was initially pressured by US dollar gains on delayed Fed rate cut expectations, CHF saw strong gains mid-quarter.
+Added: The pair even managed to move higher despite positive moves in the US dollar as Swiss inflation came in above estimates causing speculation that the Swiss National Bank (SNB) would need to put a pause on their easing plans.
+Added: The second quarter of 2023 marked a quarter of back and forth for the Swiss Franc (CHF/USD), with prices gaining in April, retreating in May on hawkish-Fed driven dollar strength, and then gaining again in June with the Fed officially pausing its rate hike cycle.
+Added: While most of May and June’s price action were dictated by dollar moves, the Swiss Franc received an additional boost from rising safe-haven currency demand in April.
+Added: The three primary safe-haven currencies are the US dollar, the Japanese yen and the Swiss Franc;
+Added: however, the US was still in the midst of its banking sector turmoil – not to mention expectations for a dovish Fed pivot– reducing the appeal of the USD, and the Bank of Japan remained committed to its ultra-loose monetary policies, making both unattractive options.
+Added: The Swiss Franc (CHF/USD) posted a loss in the first half of 2024, with the pair down nearly 7%.
+Added: While some of this was driven by gains in the US dollar – the Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts, supporting US treasury yields – the pair was heavily pressured after the Swiss National Bank (SNB) became the first major central bank to start cutting its interest rates in March.
Lower interest rates reduce the appeal of the country’s currency.
−Removed: The Swiss Franc (CHF/USD) posted a small gain in the first quarter of 2023 though prices were largely driven by USD moves.
+Added: The Swiss Franc (CHF/USD) posted a gain in the first half of 2023, with price action largely driven by dollar moves.
The USD fell sharply in January, helping the pair rally, as speculation for a dovish pivot in Fed rate hike plans grew with US economic data coming in weaker than expected.
−Removed: However, with the USD making a turnaround in February due to signs of a strong labor market and resilient inflation in the US, the currency pair depreciated.
−Removed: In March, the pair returned to positive territory as the USD once again weakened amid the turmoil in the US banking sector, renewing speculation that the Fed would slow down rate hikes amid the economic uncertainty.
+Added: However, with the dollar making a turnaround in February, due to signs of a strong labor market and resilient inflation in the US, the currency pair depreciated.
+Added: In March, though, the pair returned to positive territory as the US dollar once again weakened amid the turmoil in the US banking sector, renewing speculation that the Fed would slow down rate hikes amid the economic uncertainty.
While Switzerland’s banking sector also took a hit following the collapse of Credit Suisse, the impact was limited given swift government intervention.
−Removed: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, slightly offset by improvements in the past several quarters, to the current interest rate of 0.25%, as set forth in the FXF Rate Chart above.
+Added: While the second quarter of 2023 followed largely the same theme, with the CHF bouncing back and forth on Fed-driven dollar moves, the pair also received support from rising safe-haven currency demand.
+Added: Additionally, the interest rate paid by the Depository has generally trended upward over the past year, slightly offset by decline in the recent quarters, to the current interest rate of 0.25%, as set forth in the FXF 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.
3 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.