What expenses will shareholders of the CurrencyShares Trusts incur?
The Trust’s only ordinary recurring expense is expected to be the Sponsor’s fee. The Sponsor’s fee accrues daily at an annual nominal rate of 0.40% of the currency in the Trust and is paid monthly. To pay the Sponsor’s fee, the Trustee will first use interest earned by the Trust. If that is not sufficient to pay the Sponsor’s fee, then the Trustee will withdraw currency deposited in the Trust as needed. The Sponsor is obligated to pay various administrative and marketing expenses of the Trust out of the fee that it earns. The Trusts may incur extraordinary expenses in addition to the Sponsor’s fee; if these additional expenses are incurred, the Trust will be required to pay these expenses by withdrawing deposited currency and the amount of currency represented by a Share would decline. Accordingly, the Shareholders will effectively bear the cost of these other expenses, if incurred.
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