7. Concentration Risk
All of the Trust’s assets are Singapore Dollars, which creates a concentration risk associated with fluctuations in the price of
the Singapore Dollar. Accordingly, a decline in the Singapore Dollar to USD exchange rate will have an adverse effect on the value of the Shares. Factors that may have the effect of causing a decline in the price of the Singapore Dollar include
national debt levels and trade deficits, domestic and foreign inflation rates, domestic and foreign interest rates, investment and trading activities of institutions and global or regional political, economic or financial events and situations.
Substantial sales of Singapore Dollars by the official sector (central banks, other governmental agencies and related institutions that buy, sell and hold Singapore Dollars as part of their reserve assets) could adversely affect an investment in the
All of the Trust’s Singapore Dollars are held by the Depository. Accordingly, a risk associated with the concentration of
the Trust’s assets in accounts held by a single financial institution exists and increases the potential for loss by the Trust and the Shareholders in the event that the Depository becomes insolvent.