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 June 30, 2022 was an annual nominal rate of -0.75%.
−Removed: The following chart provides the daily rate paid by the Depository since June 30, 2017:
+Added: The interest rate in effect as of September 30, 2022 was an annual nominal rate of -0.45%.
+Added: The following chart provides the daily rate paid by the Depository since September 30, 2017:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
2 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 June 30, 2022.
+Added: The Trust did not make any distributions during the quarter ended September 30, 2022.
Critical Accounting Estimates
4 unchanged sentences
Results of Operations
−Removed: During the three and six months ended June 30, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
−Removed: Additionally, the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent event.
−Removed: Although the full and direct impact of COVID-19 and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the
−Removed: three and six months ended June 30, 2022 and 2021 cannot be known, it is believed that COVID-19 and the Russia-Ukraine conflict 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) performed negatively in the second quarter of 2022, largely weighed down by a strengthening U.S.
−Removed: dollar, which rallied to a 20-year high.
−Removed: Notably, the Swiss franc hit parity with the greenback for the first time since late 2019 in May and then again in June.
−Removed: Given expectations for aggressive Fed tightening, the Swiss National Bank’s (SNB) lagging rate hike plans further weighed on the currency pair for most of the quarter.
−Removed: However, the SNB’s surprise rate hike in mid-June did lead to the largest advance against the USD in nearly seven years.
−Removed: The Swiss Franc (CHF/USD) posted positive performance in the second quarter of 2021, largely due to the weakness in the U.S.
−Removed: dollar given its lagged recovery from lockdowns and falling treasury yields in response to a more dovish Fed.
−Removed: Concerns over possible ‘stagflation’ continued to support the Swiss Franc, given the Swiss National Bank’s strict inflation mandates.
−Removed: The Swiss Franc (CHF/USD) fell against the U.S.
−Removed: dollar in the first half of 2022 as the dollar rallied aggressively, supported by expectations for aggressive Fed tightening and growing haven demand amid rising recession probabilities.
−Removed: The currency pair was further weighed down by uncertainty over Europe’s macroeconomic outlook as implications of the war in Ukraine and the resulting sanctions unraveled.
−Removed: The Swiss Franc (CHF/USD) fell against the U.S.
−Removed: dollar in the first half of 2021.
+Added: During the three and nine months ended September 30, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
+Added: Additionally, the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent
+Added: Although the full and direct impact of the COVID-19 pandemic and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021 cannot be known, it is believed that the COVID-19 pandemic and the Russia-Ukraine conflict 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 loss in the third quarter of 2022, weighed down by a strengthening US dollar, which soared past 20-year highs in September on the Federal Reserve’s (Fed) continued aggressive tightening policies and resulting recession fears boosting safe haven demand.
+Added: In comparison, the Swiss National bank’s (SNB) lagging rate hike plans given they only meet once a quarter vs the Fed’s bimonthly (every two months) meeting, was also a headwind for the currency pair.
+Added: In September, the SNB did hike rates, making it the last country in Europe to abandon negative policy rates, however, the 0.75% hike fell below trader’s expectations, failing to provide a boost.
+Added: The Swiss Franc (CHF/USD) posted negative performance in the third quarter of 2021, largely due to the rally in the US dollar as treasury yields rose leading up to the Fed’s signal to pullback pandemic related stimulus and bond buying.
+Added: This marked a sharp contrast to the SNB’s commitment to ultra-low interest rates.
+Added: In addition, the rapid spread of the delta variant and the resulting commodities selloff also pushed investors towards the safe haven USD.
+Added: The Swiss Franc (CHF/USD) fell in the first three quarters of 2022 as the dollar rallied aggressively, supported by expectations for aggressive Fed tightening and growing haven demand amid rising recession probabilities.
+Added: The currency pair was further weighed down by the SNB’s lagged rate hike plans and the uncertainty over Europe’s macroeconomic outlook as geopolitical turbulence over Ukraine persisted.
+Added: The Swiss Franc (CHF/USD) fell against the US dollar in the first three quarters of 2021.
In Q1, as the dollar regained its ground, supported by a more hawkish Fed, and global demand recovery went underway amid growing vaccine optimism and easing lockdown restrictions, investors dumped haven assets like the Swiss Franc to position themselves for the global economic comeback.
−Removed: While the U.S.
−Removed: dollar weakened in Q2, boosting the currency pair, the gains weren’t sufficient to offset the losses.
−Removed: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years to the current interest rate of -0.75%, as set forth in the FXF Rate Chart above.
+Added: In Q2, while the USD weakened, boosting the currency pair, the rally was short lived.
+Added: The currency pair trended lower in Q3 as rising treasury yields and growing safe haven demand due to the delta variant drove investors back to the USD.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, slightly offset by improvements this quarter, to the current interest rate of -0.45%, 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.