10-K: Invesco CurrencyShares Canadian Dollar Trust Reports Annual Results for 2024

Invesco CurrencyShares Canadian Dollar Trust reports its financial results for the year ended December 31, 2024, highlighting the impact of market volatility on the trust's performance.

Summary

• Invesco CurrencyShares Canadian Dollar Trust is a grantor trust aiming to reflect the price of the Canadian Dollar in USD, less expenses.
• The Trust issues 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 Trust's investment objective is for the Shares to reflect the price in USD of the Canadian Dollar plus accrued interest, if any, less the expenses of the Trusts operations.
• The Trust's net comprehensive income for 2024 was $1,245,110, compared to $1,869,091 in 2023.
• The Sponsor's fee for 2024 was $248,239.
• As of January 31, 2025, there were 900,000 shares outstanding and 67 holders of record.
• The interest rate on the primary deposit account as of December 31, 2024, was 1.31%.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the Trust remains operational and compliant, the decrease in net comprehensive income and the inherent risks associated with currency fluctuations temper any positive outlook.

Positives

• The Trust maintains effective internal control over financial reporting as of December 31, 2024.
• The Trust provides a cost-effective means for investors to gain exposure to the Canadian Dollar.
• The Trust distributes excess interest to shareholders on a monthly basis.

Negatives

• The Trust's net comprehensive income decreased in 2024 compared to 2023.
• The amount of Canadian Dollars represented by each Share will gradually decline over time if interest earned does not exceed expenses.
• The Shares may trade at a price that is at, above, or below the NAV per Share.

Risks

• Fluctuations in the price of the Canadian Dollar could materially and adversely affect the value of the Shares.
• The interest rate paid by the Depository may not be the best rate available.
• Disruptions in the ability to create and redeem Baskets may adversely impact the price of the Shares.
• Substantial sales of Canadian Dollars by the official sector could adversely affect an investment in the Shares.
• International armed conflicts may result in volatility in currency prices that could adversely affect the Fund's performance.
• Pandemics and other public health emergencies could disrupt the global economy and adversely impact the Trust's performance.
• Changes to United States tariff and trade policies may increase the volatility of foreign exchange rates.
• Cyber attacks pose operational and information security risks.

Future Outlook

The report contains forward-looking statements regarding future developments and their potential effects, but actual results may differ materially due to various factors, including fluctuations in the price of the Canadian Dollar.

Industry Context

The performance of the Trust is directly linked to the Canadian Dollar/USD exchange rate, which is influenced by various global economic and political factors.

Related Party Transactions

• The Trust pays Invesco Specialized Products, LLC (the Sponsor) a fee that accrues daily at an annual nominal rate of 0.40% of the Canadian Dollars in the Trust.

Stakeholder Impact

• Shareholders are exposed to the risks and rewards of the Canadian Dollar/USD exchange rate.
• Shareholders receive monthly distributions of excess interest, if any.
• Authorized Participants are able to create and redeem Baskets of Shares.

Key Dates

Keywords

Canadian Dollar, CurrencyShares, Invesco, Trust, FXC, Exchange Rate, Financial Results, Annual Report, Investment, Shares