The CurrencyShares® Canadian Dollar 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 “FXC” 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 Canadian Dollars and distributes Canadian Dollars in connection
with the redemption of Baskets.
The investment objective of the Trust is for the Shares to reflect the price
in USD of Canadian Dollars 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 Canadian Dollar 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 Canadian Dollar. 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 Canadian
Dollar. 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 Canadian Dollars and, from time to time, issues Baskets in
exchange for deposits of Canadian Dollars and distributes Canadian Dollars in
connection with redemptions of Baskets. The Canadian Dollars 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 Canadian Dollars in the Trust at the end of the preceding
day accrued but unpaid interest, if any, Canadian Dollars receivable under pending
purchase orders and the value of other Trust assets, and subtracts the accrued
but unpaid Sponsor’s fee, Canadian Dollars 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 Canadian Dollar/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 Canadian Dollars 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.
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