The CurrencyShares® Swiss Franc Trust (the “Trust”) is a grantor
trust that was formed on June 8, 2006. The Shares commenced trading on the New
York Stock Exchange under the ticker symbol “FXF” on June 26, 2006.
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 Swiss
Francs and distributes Swiss Francs in connection with the redemption of Baskets.
The investment objective of the Trust is for the Shares to reflect the price
in USD of Swiss Franc 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 Swiss Franc 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 Swiss Franc. 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 Swiss Franc. 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 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 Swiss Francs in the Trust at the end of the preceding
day accrued but unpaid interest, if any, Swiss Francs receivable under pending
purchase orders and the value of other Trust assets, and subtracts the accrued
but unpaid Sponsor’s fee, Swiss Francs 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 Swiss Francs/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 Swiss Francs 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.
The Trust holds Swiss Francs and, from time to time, issues Baskets in exchange
for deposits of Swiss Francs and distributes Swiss Francs in connection with
redemptions of Baskets. The Swiss Francs 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.
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