What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2025-02-26 compared with 2024-02-23 · 36 added, 29 removed, 306 unchanged (18% of the section changed)

32 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).

FXF Distribution History

Annualized Yield

(a) Amount rounds to 0.00

The Trust did not make any distributions during the quarter ended December 31, 2024.

Results of Operations

During the years ended December 31, 2023 and 2022, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from the US banking sector turmoil, ambiguity around the Federal Reserve's tightening cycle, and rising geopolitical concerns from the conflict in the Middle East, for 2023, and uncertainty caused by the novel coronavirus known as COVID-19, as well as the Russia-Ukraine conflict, for 2022, which are considered to be unusual or infrequent events.

Although the full and direct impact of the COVID-19 pandemic, the Russia-Ukraine conflict, the US banking sector turmoil, and the Israel-Gaza conflict on the Trust's net comprehensive income (loss) during the years ended December 31, 2023 and 2022 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.

During the years ended December 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.

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 years ended December 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.

The Swiss franc (CHF/USD) posted a loss in 2024, largely pressured by US dollar strength.

In Q1 and Q2, the Fed’s higher-for-longer rhetoric kept the greenback supported, serving as the primary headwind.

However, the Swiss National Bank (SNB) was also the first major central bank to start cutting its interest rates in March;

lower interest rates reduce the appeal of the country’s currency.

The pair did gain in Q3, bringing performance back to flat;

the Fed and many other global central banks also began their easing cycle, and geopolitical tensions and US economic and equity market turmoil offered safe haven demand.

However, Trump-driven USD gains in the fourth quarter, caused the pair to depreciate significantly.

Many of Trump’s campaigned policies were expected to raise inflation risk, potentially leading to higher rates in 2025.

In addition, tariffs generally weigh on foreign currencies, further boosting the USD.

The Swiss Franc (CHF/USD) posted a large gain in 2023, with the pair ending the year at its highest since Jan 2015.

6 unchanged sentences

However, returning dollar weakness in the fourth quarter and efforts by the SNB to boost its currency value and dampen inflation, helped the pair soar.

The Swiss Franc (CHF/USD) fell in the first three quarters of 2022 as the dollar rallied aggressively supported by expectations for aggressive U.S.

Federal Reserve System (the “Fed”) tightening and growing haven demand amid rising recession probabilities.

The currency pair was further weighed down by the Swiss National Bank’s lagged rate hike plans, given they only meet once a quarter vs the Fed’s bimonthly (every two months) meeting, and the uncertainty over Europe’s macroeconomic outlook as geopolitical turbulence over Ukraine persisted.

However, prices did rebound quite significantly in the fourth quarter as the dollar weakened on expectations for a dovish pivot in Fed policies.

Additionally, the interest rate paid by the Depository has generally trended upward over the past year from zero to the current interest rate of 0.50%, 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.

Additionally, the interest rate paid by the Depository has generally trended downward over the past year to the current interest rate of 0.00%, as set forth in the FXF Rate Chart above.

As long as the interest income, if any, exceeds the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.

Critical Accounting Estimates

96 unchanged sentences

For the Year Ended December 31, 2024

Shareholders'

Capital Shares

Retained Earnings

Total Shareholders' Equity

Redeemable Capital Shares

Balance at December 31, 2023

1 unchanged sentence

Redemption of Shares

( 104,078,264

Net Increase (Decrease) due to Share Transactions

1 unchanged sentence

Net Comprehensive Income (Loss)

Adjustment of Redeemable Capital Shares to Redemption

Value related to Retained Earnings

Adjustment of Redeemable Capital Shares to Redemption

Adjustment of Redeemable Capital Shares to Redemption Value related to Retained Earnings

Adjustment of Redeemable Capital Shares to Redemption Value

Balance at December 31, 2024

3 unchanged sentences

For the Year Ended December 31, 2023

Shareholders'

Capital Shares

Retained Earnings

Total Shareholders' Equity

Redeemable Capital Shares

Balance at December 31, 2022

3 unchanged sentences

Net Increase (Decrease) due to Share Transactions

Distributions

Net Comprehensive Income (Loss)

Adjustment of Redeemable Capital Shares to Redemption

Value related to Retained Earnings

Adjustment of Redeemable Capital Shares to Redemption

Adjustment of Redeemable Capital Shares to Redemption Value related to Retained Earnings

Adjustment of Redeemable Capital Shares to Redemption Value

Balance at December 31, 2023

5 unchanged sentences

Net Comprehensive Income (Loss)

Adjustments to reconcile net comprehensive income (loss) to net cash

provided by (used in) operating activities:

Adjustments to reconcile net comprehensive

income (loss) to net cash provided by (used in) operating activities:

Change in operating assets and liabilities:

Receivable from accrued interest

Accrued interest expense

Accrued interest income

Accrued Sponsor's fee

5 unchanged sentences

( 104,078,264

( 235,521,614

Increase (decrease) in payable for Swiss Franc deposits overdrawn

34 unchanged sentences

In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are issued.

Segment Reporting

In November 2023, the FASB issued Accounting Standards Update 2023-07 , Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”), with the intent of improving reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole thereby enabling better understanding of how an entity's segments impact overall performance.

The Trust represents a single operating segment.

Subject to the oversight and, when applicable, approval of the Board of Managers, the Trust's Sponsor acts as the Trust's chief operating decision maker (“CODM”), assessing performance and making decisions about resource allocation.

The CODM monitors the operating results as a whole and the Trust's long-term strategic asset allocation is determined in accordance with the terms of its prospectus based on a defined investment strategy.

The financial information provided to and reviewed by the CODM is consistent with that presented in the Trust's financial statements.

Adoption of the new standard impacted the Trust's financial statement note disclosures only and did not affect the Trust's financial position or the results of its operations.

Foreign Currency Translation

16 unchanged sentences

The table below shows distributions per Share and in total for the periods presented:

Years Ended December 31,

Distributions per Share

Distributions paid

An income distribution for the month ended December 31, 2023 was paid on January 9, 2024 to holders of record as of January 3, 2024 at a rate of $ 0.00959 per Share and a total distribution of $ 17,262 .

Routine Operational, Administrative and Other Ordinary Expenses

77 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.

What changed 10-K

Item 7. Management’s Discussion and Analysis