What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-02 compared with 2025-02-26 · 35 added, 27 removed, 315 unchanged (16% of the section changed)

24 unchanged sentences

The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs.

The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest.

The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, primarily maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest.

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

7 unchanged sentences

Results of Operations

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.

During the years ended December 31, 2025 and 2024, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations, mounting U.S.

economic uncertainty for 2025, evolving expectations around the Federal Reserve (the “Fed”) monetary policy and heightened geopolitical concerns, some of which are considered to be unusual or infrequent events.

Although the full and direct impact of these conditions on the Trust's net comprehensive income (loss) during the years ended December 31, 2025 and 2024, 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) delivered strong gains in 2025, supported by persistent U.S.

dollar weakness and steady demand for safe‑haven assets amid elevated global uncertainty.

Although concerns over the impact of tariffs created intermittent volatility, the franc continued to serve as the safe‑haven currency of choice.

In the first quarter, rising fears of a U.S.

recession and stagflation triggered a sharp sell‑off in risk assets, prompting investors to rotate into more stable currencies such as the franc.

This momentum carried into the second quarter as confidence in U.S.

markets continued to erode.

While the pace of appreciation moderated in the third quarter amid a partial rebound in the U.S.

dollar, the fourth quarter marked another period of strength, rounding out a solid year for the currency.

The Swiss franc (CHF/USD) posted a loss in 2024, largely pressured by U.S.

dollar strength.

In the first quarter and second quarter, 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.

The pair did gain in the third quarter, bringing performance back to flat;

the Fed and many other global central banks also began their easing cycle, and geopolitical tensions and U.S.

economic and equity market turmoil offered safe haven demand.

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

1 unchanged sentence

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.

Price action was largely driven by dollar moves and Swiss central bank policies.

The USD fell sharply in January, helping the pair rally, as speculation for a dovish pivot in Fed rate hike plans grew.

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.

In March though, the pair returned to positive territory as the US dollar once again weakened amid the turmoil in the US banking sector.

While the second quarter was 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 demand.

The third quarter marked a negative period for the Swiss franc as the SNB turned increasingly dovish, especially when compared with the US Fed, which held on to its higher for longer guidance.

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.

Additionally, the interest rate paid by the Depository has generally trended downward over the past year to the current interest rate of -0.15%, as set forth in the FXF Rate Chart above.

24 unchanged sentences

We, Brian Hartigan, Principal Executive Officer, and Kelli Gallegos, Principal Financial and Accounting Officer, Investment Pools, of the Sponsor, assessed the effectiveness of the Trust’s internal control over financial reporting as of December 31, 2025.

In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control—Integrated Framework (2013).

In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework (2013).

Based on our assessment and those criteria, we have concluded that the Trust maintained effective internal control over financial reporting as of December 31, 2025.

46 unchanged sentences

Receivable from accrued interest

Dollar Cash at Depository

Swiss Franc deposits, non-interest bearing, overdrawn

Accrued Sponsor’s fee

Accrued interest expense on currency deposits

Total Liabilities

27 unchanged sentences

Redemption of Shares

( 173,703,094

Net Increase (Decrease) due to Share Transactions

Distributions

Net Comprehensive Income (Loss)

12 unchanged sentences

Redemption of Shares

( 104,078,264

Net Increase (Decrease) due to Share Transactions

13 unchanged sentences

Change in operating assets and liabilities:

Accrued interest income

Receivable from accrued interest

Accrued interest expense

Accrued Sponsor's fee

42 unchanged sentences

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 Trust represents a single operating segment, in accordance with ASC 280, Segment Reporting.

Subject to the oversight and, when applicable, approval of the Board of Managers, portfolio managers and senior executives at the Sponsor act as the Trust’s chief operating decision maker (“CODM”), assessing performance and making decisions about resource allocation within the Trust.

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

6 unchanged sentences

The Closing Spot Rate on the last day of the period is used for translation in the statements of financial condition.

The average Closing Spot Rate for the period is used for translation in the statements of comprehensive income and the statements of cash flows.

The average Closing Spot Rate for the period

is used for translation in the statements of comprehensive income and the statements of cash flows.

The redeemable capital Shares are adjusted to redemption value and these adjustments are recorded against retained earnings.

The Trust may hold a USD cash balance to pay the Trust's expenses and distribute excess interest.

These amounts are reflected as U.S.

Dollar cash at Depository on the Statements of Financial Condition.

Interest Income

15 unchanged sentences

These exceptions include expenses not assumed by the Sponsor (i.e., expenses other than those identified in the preceding paragraph), expenses resulting from negative interest rates, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Trustee or the Sponsor on behalf of the Trust or action taken by the Trustee or the Sponsor to protect the Trust or the interests of Shareholders, indemnification of the Sponsor under the Depositary Trust Agreement, audit fees and legal expenses in excess of $ 100,000 per year.

The only expenses of the Trust during the year ended December 31, 2025 were the Sponsor’s fee and interest expense on currency deposits.

The only expense of the Trust during the year ended December 31, 2024 was the Sponsor’s fee.

The only expenses of the Trust during the year ended December 31, 2023 was the Sponsor’s fee and interest expense on currency deposits.

Federal Income Taxes

14 unchanged sentences

Shareholder generally will not be subject to U.S.

federal income tax with respect to gain recognized upon the sale or other disposition of Shares, or upon the sale of Swiss Francs by the Trust, unless:

federal income tax with respect to gain recognized upon the sale

or other disposition of Shares, or upon the sale of Swiss Francs by the Trust, unless:

(1) the non-U.S.

51 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