The CurrencyShares® Euro Trust (the “Trust”) is a grantor trust
that was formed on December 5, 2005. The Shares began trading on the New York
Stock Exchange under the ticker symbol “FXE” on December 12, 2005.
The primary listing of the Shares was transferred to NYSE Arca, Inc. (“NYSE
Arca”) on October 30, 2007. The Trust issues shares (the “Shares”)
in blocks of 50,000 (a “Basket”) in exchange for deposits of euro
and distributes euro in connection with the redemption of Baskets.
The investment objective of the Trust is for the Shares to reflect the price
in USD of euro plus accrued interest, if any, less the expenses of the Trust’s
operations. The Shares are intended to offer investors an opportunity to participate
in the market for the euro through an investment in securities. The Shares are
intended to provide institutional and retail investors with a simple, cost-effective
means of gaining investment benefits similar to those of holding the euro. The
Shares are bought and sold on NYSE Arca like any other exchange-listed security.
The Shares are backed by the assets of the Trust, which does not hold or use
derivative products. The Trust is a passive investment vehicle and does not
have any officers, directors or employees. The Trust does not engage in any
activities designed to obtain profit from, or ameliorate losses caused by, changes
in the price of the euro. Investing in the Shares does not insulate the investor
from certain risks, including price volatility. The value of the holdings of
the Trust is reported on the Trust’s website, www.currencyshares.com,
each business day.
The Trust holds euro and, from time to time, issues Baskets in exchange for
deposits of euro and distributes euro in connection with redemptions of Baskets.
The euro held by the Trust will be sold only (1) if needed to pay Trust expenses,
(2) in the event the Trust terminates and liquidates its assets or (3) as otherwise
required by law or regulation.
The Trustee calculates, and the Sponsor publishes, the Trust’s Net Asset
Value (“NAV”) each business day. To calculate the NAV, the Trustee
adds to the amount of euro in the Trust at the end of the preceding day, accrued
but unpaid interest, if any, euro receivable under pending purchase orders and
the value of other Trust assets, and subtracts the accrued but unpaid Sponsor’s
fee, euro payable under pending redemption orders and other Trust expenses and
liabilities, if any. The NAV is expressed in U.S. Dollars (“USD”)
based on the euro/USD exchange rate as determined by The WM Company, at 4:00
PM (London time / London fixing) (the “Closing Spot Rate”) on each
day that NYSE Arca is open for regular trading. If, on a particular evaluation
day, the Closing Spot Rate has not been determined and announced by 6:00 PM
(London time), then the most recent Closing Spot Rate is used to determine the
NAV of the Trust unless the Trustee, in consultation with the Sponsor, determines
that such price is inappropriate to use as the basis for the valuation.
Each Share represents a proportional interest, based on the total number of
Shares outstanding, in the euro owned by the Trust, plus accrued and unpaid
interest, if any, less accrued but unpaid expenses (both asset-based and non-asset
based) of the Trust. All Shares are of the same class with equal rights and
privileges. Each Share is transferable, is fully paid and non-assessable and
entitles the holder to vote on the limited matters upon which Shareholders may
vote under the Depositary Trust Agreement.