Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
FXS > SEC Filings for FXS > Form 10-K on 14-Jan-2014All Recent SEC Filings

Show all filings for CURRENCYSHARES SWEDISH KRONA TRUST

Form 10-K for CURRENCYSHARES SWEDISH KRONA TRUST


14-Jan-2014

Annual Report


Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward-Looking Information

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "outlook" and "estimate" and other similar words. Forward-looking statements are based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Various factors may cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include fluctuations in the price of the Swedish Krona, as the value of the Shares relates directly to the value of the Swedish Krona held by the Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the "Risk Factors" section in this report for a description of other risks and uncertainties that may affect an investment in the Shares.

Neither Guggenheim Specialized Products, LLC d/b/a Guggenheim Investments (the "Sponsor") nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report. The forward-looking statements are made as of the date of this report, and will not be revised or updated to reflect actual results or changes in the Sponsor's expectations or predictions.


Table of Contents

Movements in the Price of the Swedish Krona

The investment objective of the Trust is for the Shares to reflect the price of the Swedish Krona plus accrued interest, less the expenses of the Trust's operations. 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 Swedish Kronor. Each outstanding Share represents a proportional interest in the Swedish Kronor held by the Trust. The following chart provides recent trends on the price of the Swedish Krona. The chart illustrates movements in the price of the Swedish Krona in USD and is based on the Noon Buying Rate (prior to November 13, 2008) and the Closing Spot Rate (as of and after November 13, 2008).

[[Image Removed: LOGO]]


Table of Contents

NAV per Share; Valuation of the Swedish Krona

The following chart illustrates the movement in the price of the Shares based on
(1) NAV per Share, (2) the "bid" and "ask" midpoint offered on the NYSE Arca and
(3) the Noon Buying Rate (prior to November 13, 2008) and the Closing Spot Rate (as of and after November 13, 2008), expressed as a multiple of 1,000 Swedish Kronor:

[[Image Removed: LOGO]]


Table of Contents

Liquidity

The Sponsor is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to the Trust's liquidity needs. The Trust's Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest. Interest on the primary deposit account, if any, accrues daily and is paid monthly. The interest rate in effect as of October 31, 2013 was an annual nominal rate of 0.70%. The following chart provides the daily rate paid by the Depository since the Shares began trading on the NYSE Arca:

[[Image Removed: LOGO]]

In exchange for a fee, the Trust's Sponsor bears most of the expense incurred by the Trust. As a result, the only ordinary expense of the Trust during the periods covered by this report was the Sponsor's fee. Each month the Depository deposits into the secondary deposit account accrued but unpaid interest, if any, and the Trustee withdraws Swedish Kronor from the secondary deposit account to pay the accrued Sponsor's fee for the previous month plus other Trust expenses, if any. 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 a 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). Distributions paid during the current reporting period follow (annualized yield reflects the estimated annual yield an investor would receive if a monthly distribution stayed the same for the entire year going forward, and is calculated by annualizing the monthly distribution and dividing by the Trust NAV for the dates listed below):

                            FXS Distribution History



                 Date       Value       NAV     Yield   Annualized Yield
               10/1/2013   $0.03719   $154.94   0.02%        0.29%
               9/3/2013    $0.03700   $149.92   0.02%        0.29%
               8/1/2013    $0.03641   $152.26   0.02%        0.28%


Table of Contents

Critical Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Sponsor's management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period covered by this report.

In addition to the description below, please refer to Note 2 to the financial statements for further discussion of our accounting policies.

The functional currency of the Trust is the Swedish Krona in accordance with ASC 830, Foreign Currency Translation.

Results of Operations

As of October 31, 2011, the number of Swedish Kronor owned by the Trust was 596,957,209, resulting in a redeemable capital share value of $92,435,034. During the year ended October 31, 2012, no additional shares were created and 150,000 shares were redeemed in exchange for 149,239,302 Swedish Kronor. As of October 31, 2012, the number of Swedish Kronor owned by the Trust was 447,717,907, resulting in a redeemable capital share value of $67,506,654. During the year ended October 31, 2013, an additional 50,000 shares were created in exchange for 49,746,434 Swedish Kronor and 100,000 shares were redeemed in exchange for 99,492,868 Swedish Kronor. As of October 31, 2013, the number of Swedish Kronor owned by the Trust was 397,971,473, resulting in a redeemable capital share value of $61,516,024.

A decrease in the Trust's redeemable capital share value from $67,506,654 at October 31, 2012 to $61,516,024 at October 31, 2013, was primarily the result of a decrease in the number of shares outstanding from 450,000 at October 31, 2012 to 400,000 at October 31, 2013. The decrease in the Trust's redeemable capital share value was partially offset by an increase in the Closing Spot Rate from 0.15071 at October 31, 2012 to 0.15453 at October 31, 2013. A decrease in the Trust's redeemable capital share value from $92,435,034 at October 31, 2011 to $67,506,654 at October 31, 2012, was primarily the result of a decrease in the number of shares outstanding from 600,000 at October 31, 2011 to 450,000 at October 31, 2012, and a decrease in the Closing Spot Rate from 0.15465 at October 31, 2011 to 0.15071 at October 31, 2012.

Interest income decreased from $1,052,856 for the year ended October 31, 2012 to $500,630 for the year ended October 31, 2013 attributable primarily to an decrease in the weighted-average Swedish Kronor in the Trust and a reduction in the annual nominal interest rate paid by the Depository, as set forth in the chart above. Interest income decreased from $1,609,735 for the year ended October 31, 2011 to $1,052,856 for the year ended October 31, 2012 attributable primarily to a decrease in the weighted-average Swedish Kronor in the Trust and a reduction in the annual nominal interest rate paid by the Depository, as set forth in the chart above.

The Sponsor's fee accrues daily at an annual nominal rate of 0.40% of the Swedish Kronor in the Trust. Due primarily to a decrease in the weighted-average Swedish Kronor in the Trust, the Sponsor's fee decreased from $295,723 for the year ended October 31, 2012 to $268,955 for the year ended October 31, 2013. The only expense of the Trust during the year ended October 31, 2013 was the Sponsor's fee. Due primarily to a decrease in the weighted-average Swedish Kronor in the Trust, the Sponsor's fee decreased from $398,745 for the year ended October 31, 2011 to $295,723 for the year ended October 31, 2012. The only expense of the Trust during the year ended October 31, 2012 was the Sponsor's fee.

The Trust's net income for the year ended October 31, 2013 was $231,675, due to interest income of $500,630 exceeding the Sponsor's fee of $268,955. The Trust's net income for the year ended October 31, 2012 was $757,133 due to interest income of $1,052,856 exceeding the Sponsor's fee of $295,723. The Trust's net income for the year ended October 31, 2011 was $1,210,990, due to interest income of $1,609,735 exceeding the Sponsor's fee of $398,745.

Cash dividends per Share decreased from $1.63 per Share for the year ended October 31, 2012 to $0.56 per Share for the year ended October 31, 2013. The decrease in cash dividends per Share was primarily the result of a reduction in the annual nominal interest rate paid by the Depository. Cash dividends per Share decreased from $1.73 for the year ended October 31, 2011 to $1.63 per Share for the year ended October 31, 2012. The decrease in cash dividends per Share was primarily the result of a reduction in the annual nominal interest rate paid by the Depository.


Table of Contents

  Add FXS to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for FXS - All Recent SEC Filings
Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.