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.
27 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).
−Removed: The Trust did not make any distributions during the quarter ended December 31, 2019.
+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 2,500,000 Shares were created in exchange for 229,209,797 Swiss Francs and 1,050,000 Shares were redeemed in exchange for 96,359,052 Swiss Francs.
1 unchanged sentence
As of December 31, 2020, the number of Swiss Francs owned by the Trust was 259,956,239, resulting in a redeemable capital Share value of $293,802,451.
−Removed: During the two months ended December 31, 2018, an additional 200,000 Shares were created in exchange for 18,683,840 Swiss Francs and 250,000 Shares were redeemed in exchange for 23,343,201 Swiss Francs.
+Added: During the year ended December 31, 2019, an additional 500,000 Shares were created in exchange for 46,358,107 Swiss Francs and 950,000 Shares were redeemed in exchange for 88,118,747 Swiss Francs.
In addition, 1,759,836 Swiss Francs were withdrawn to pay the Sponsor’s fee and the interest expense on currency deposits, due to the negative interest rate.
As of December 31, 2019, the number of Swiss Francs owned by the Trust was 129,187,974, resulting in a redeemable capital Share value of $133,273,946.
−Removed: During the year ended October 31, 2018, an additional 450,000 Shares were created in exchange for 42,209,341 Swiss Francs and 150,000 Shares were redeemed in exchange for 14,121,783 Swiss Francs.
−Removed: In addition, 1,774,292 Swiss Francs were withdrawn to pay the Sponsor’s fee and the interest expense on currency deposits, due to the negative interest rate.
−Removed: As of October 31, 2018, the number of Swiss Francs owned by the Trust was 177,713,358, resulting in a redeemable capital Share value of $176,497,291.
−Removed: A decrease in the Trust’s redeemable capital Share value from $175,017,674 at December 31, 2018 to $133,273,946 at December 31, 2019, was primarily the result of a decrease in the number of Shares outstanding from 1,850,000 at December 31, 2018 to 1,400,000 at
−Removed: December 31, 2019, coupled with a decrease in the Closing Spot Rate from 1.044 at December 31, 2018 to 1.033 at December 31, 2019.
−Removed: A decrease in the Trust’s redeemable capital Share value from $ 176,497,291 at October 31, 2018 to $ 175,017,674 at December 31, 2018, was primarily the result of a decrease in the number of Shares outstanding from 1,900,000 at October 31, 2018 to 1,850,000 at December 31, 2018, but partially offset by an increase in the Closing Spot Rate from 0.9941 at October 31, 2018 to 1.044 at December 31, 2018.
−Removed: No interest income was earned during the year ended December 31, 2019, the two months ended December 31, 2018 and the year ended October 31, 2018, due to an annual nominal interest rate which remained below 0.00% through those periods, as set forth in the FXF Daily Rate chart above.
−Removed: The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the Swiss Francs in the Trust.
−Removed: Due primarily to a decrease in the weighted-average Swiss Francs in the Trust, the Sponsor’s fee decreased from $634,959 for the year ended October 31, 2018 to $592,247 for the year ended December 31, 2019.
−Removed: Due primarily to a decrease in the weighted-average Swiss Francs in the Trust, interest expense on currency deposits decreased from $1,206,494 for the year ended October 31, 2018 to $1,131,825 for the year ended December 31, 2019.
−Removed: The only expenses of the Trust during the year ended December 31, 2019 were the Sponsor’s fee and interest expense on currency deposits.
+Added: An increase in the Trust’s redeemable capital Share value from $133,273,946 at December 31, 2019 to $293,802,451 at December 31, 2020, was primarily the result of an increase in the number of Shares outstanding from 1,400,000 at December 31, 2019 to 2,850,000 at December 31, 2020, coupled with an increase in the Closing Spot Rate from 1.033 at December 31, 2019 to 1.131 at December 31, 2020.
+Added: No interest income was earned during the years ended December 31, 2020 and 2019, due to an annual nominal interest rate which remained at or below 0.00% through those periods, as set forth in the FXF Daily Rate chart above.
The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the Swiss Francs in the Trust.
−Removed: Due primarily to an increase in the weighted-average Swiss Francs in the Trust, the Sponsor’s fee increased from $99,159 for the two months ended December 31, 2017 to $120,249 for the two months ended December 31, 2018.
−Removed: Due primarily to an increase in the weighted-average Swiss Franc in the Trust, interest expense on currency deposits increased from $188,802 for the two months ended December 31, 2017 to $227,740 for the two months ended December 31, 2018.
−Removed: The only expenses of the Trust during the two months ended December 31, 2018 were the Sponsor’s fee and interest expense on currency deposits.
−Removed: The Trust’s net comprehensive loss for the year ended December 31, 2019 was $1,724,072 due to Sponsor’s fee of $592,247 and interest expense on currency deposits of $1,131,825 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive loss for the year ended October 31, 2018 was $1,841,453 due to Sponsor’s fee of $634,959 and interest expense on currency deposits of $1,206,494 exceeding the interest income of $0.
−Removed: Cash dividends were not paid by the Trust in the year ended December 31, 2019 and for the year ended October 31, 2018 as the Trust’s interest income did not exceed the Trust’s expenses during those periods.
−Removed: The Trust’s net comprehensive loss for the two months ended December 31, 2018 was $347,989, due to the Sponsor’s fee of $120,249 and interest expense on currency deposits of $227,740 exceeding interest income of $0.
−Removed: The Trust’s net comprehensive loss for the two months ended December 31, 2017 was $287,961, due to the Sponsor’s fee of $99,159 and interest expense on currency deposits of $188,802 exceeding interest income of $0.
−Removed: Cash dividends were not paid by the Trust in the two months ended December 31, 2018 and December 31, 2017 as the Trust’s interest income did not exceed the Trust’s expenses during those periods.
+Added: Due primarily to an increase in the weighted-average Swiss Francs in the Trust, the Sponsor’s fee increased from $592,247 for the year ended December 31, 2019 to $811,111 for the year ended December 31, 2020.
+Added: Due primarily to an increase in the weighted-average Swiss Francs in the Trust, interest expense on currency deposits increased from $1,131,825 for the year ended December 31, 2019 to $1,547,778 for the year ended December 31, 2020.
+Added: The only expenses of the Trust during the years ended December 31, 2020 and 2019 were the Sponsor’s fee and interest expense on currency deposits.
+Added: The Trust’s net comprehensive income (loss) for the year ended December 31, 2020 was $(2,358,889) due to the Sponsor’s fee of $811,111 and interest expense on currency deposits of $1,547,778 exceeding interest income of $0.
+Added: The Trust’s net comprehensive income (loss) for the year ended December 31, 2019 was $(1,724,072) due to the Sponsor’s fee of $592,247 and interest expense on currency deposits of $1,131,825 exceeding interest income of $0.
+Added: Cash dividends were not paid by the Trust in the years ended December 31, 2020 and 2019, as the Trust’s interest income did not exceed the Trust’s expenses during those periods.
Critical Accounting Policies
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.