“NAV” — Net asset value. The Trustee calculates, and the Sponsor
publishes, the Trust’s NAV each business day as soon as practicable
after The WM Company announces the Closing Spot Rate. To calculate
the NAV, the Trustee adds to the amount of Australian Dollars in
the Trust at the end of the preceding day accrued but unpaid
interest, if any, Australian Dollars receivable under pending
purchase orders and the value of other Trust assets, and subtracts
the accrued but unpaid Sponsor’s fee, Australian Dollars payable
under pending redemption orders and other Trust expenses and
liabilities, if any.
“Participant Agreement” — An agreement entered into by each
Authorized Participant with the Sponsor and the Trustee that states
the procedures for the creation and redemption of Baskets and for
the delivery of Australian Dollars required for creation and
redemption.
“Securities Act” — The Securities Act of 1933, as amended.
“Securities Exchange Act” — The Securities Exchange Act of 1934, as
amended.
“Shareholder” — Any owner of a Share (whether such owner owns
through DTC, a DTC Participant or an Indirect Participant).
“Sponsor Indemnified Party” — The Sponsor, its members, officers,
employees and agents.
“SWIFT” — Society for Worldwide Interbank Financial
Telecommunication.
“The Bank of New York Mellon” — The Bank of New York Mellon, a
banking corporation organized under the laws of the State of New
York with trust powers. The Bank of New York Mellon is the trustee
of the Trust.
“The WM Company” — A joint venture of The WM Company PLC and
Thomson Reuters.
“USD” or “$” — United States Dollar or Dollars.
Statement Regarding
Forward-Looking Statements
This prospectus and information incorporated by reference in this
prospectus includes “forward-looking statements” which generally
relate to future events or future performance. In some cases, you
can identify forward-looking statements by terminology such as
“may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “potential” or the negative of these terms
or other comparable terminology. All statements (other than
statements of historical fact) included in this prospectus or
incorporated by reference in this prospectus that address
activities, events or developments that will or may occur in the
future, including such matters as changes in currency prices and
market conditions (for the Australian Dollar and the Shares), the
Trust’s operations, the Sponsor’s plans and references to the
Trust’s future success and other similar matters are
forward-looking statements. These statements are only predictions.
Actual events or results may differ materially. These statements
are based upon certain assumptions and analyses the Sponsor made,
based on its perceptions of historical trends, current conditions
and expected future developments, as well as other factors
appropriate in the circumstances. Whether or not actual results and
developments will conform to the Sponsor’s expectations and
predictions, however, is subject to a number of risks and
uncertainties, including the special considerations discussed in
this prospectus, general economic, market and business conditions,
changes in laws and regulations, including those concerning taxes,
made by governmental authorities and regulatory bodies and other
world economic and political developments. See “Risk Factors.”
Consequently, all forward-looking statements made in this
prospectus or incorporated by reference in this prospectus are
qualified by these cautionary statements, and there can be no
assurance that the actual results or developments that the Sponsor
anticipates will be realized or, even if substantially realized,
that they will result in the expected consequences to, or have the
expected effects on, the Trust’s operations or the value of the
Shares. Moreover, neither the Sponsor nor any other person assumes
responsibility for the accuracy or completeness of the
forward-looking statements. Neither the Trust nor the Sponsor is
under a duty to update any of the forward-looking statements to
conform such statements to actual results or to reflect a change in
the Sponsor’s expectations or predictions.
Use of Proceeds
The proceeds received by the Trust from the issuance and sale of
Baskets are Australian Dollars. Such proceeds are deposited into
the Deposit Accounts. In accordance with the Depositary Trust
Agreement, during the life of the Trust these proceeds will only be
(1) owned by the Trust and held by the Depository,
(2) disbursed or sold as needed to pay the Trust’s expenses,
and (3) distributed to Authorized Participants upon the
redemption of Baskets.
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