10-Q: Invesco CurrencyShares Canadian Dollar Trust Reports Q1 2024 Results

Invesco CurrencyShares Canadian Dollar Trust reports its financial results for the quarter ended March 31, 2024, noting a net comprehensive income of $392,900.

Summary

• Invesco CurrencyShares Canadian Dollar Trust's net comprehensive income for the three months ended March 31, 2024, was $392,900, compared to $458,136 for the same period in 2023.
• Basic and diluted earnings per share were $0.43 for the quarter ended March 31, 2024, compared to $0.34 for the same period in 2023.
• The Trust's assets primarily consist of Canadian Dollars held on deposit.
• As of March 31, 2024, the Trust held $57,776,540 in interest-bearing Canadian Dollar deposits and $1,716 in non-interest-bearing deposits.
• The Trust's liabilities include $4,956 in overdrawn non-interest-bearing Canadian Dollar deposits and $20,424 in accrued Sponsor's fees.
• The number of outstanding Redeemable Capital Shares as of March 31, 2024, was 800,000.
• The Trust's investment objective is to reflect the price in U.S. Dollars (USD) of the Canadian Dollar plus accrued interest, if any, less the Trust's expenses and liabilities.
• The Sponsor's fee accrues daily at an annual nominal rate of 0.40% of the Canadian Dollars in the Trust and is paid monthly.
• The interest rate on the primary deposit account as of March 31, 2024, was an annual nominal rate of 2.76%.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While the Trust generated income, it was lower than the previous year. The report primarily reflects the performance of the Canadian Dollar and the Trust's operational mechanics.

Positives

• The Trust generated net comprehensive income of $392,900 for the quarter.
• The Trust distributes excess interest earned to shareholders on a monthly basis.
• The interest rate on the primary deposit account is 2.76% as of March 31, 2024.
• The Trust's disclosure controls and procedures were deemed effective.

Negatives

• Net comprehensive income decreased from $458,136 in Q1 2023 to $392,900 in Q1 2024.
• The value of Canadian Dollar deposits decreased from $77,824,405 at the end of 2023 to $57,776,540 as of March 31, 2024.

Risks

• Fluctuations in the price of the Canadian Dollar could materially adversely affect an investment in the Shares.
• A decline in the Canadian Dollar to USD exchange rate will have an adverse effect on the value of the Shares.
• The Trust's assets are concentrated in Canadian Dollars, creating a concentration risk.
• All of the Trust's Canadian Dollars are held by a single Depository, creating a risk if the Depository becomes insolvent.

Future Outlook

The report contains forward-looking statements regarding future developments and their potential effects on the Trust, but these statements are not guarantees of future performance and will not be revised or updated.

Industry Context

This report provides insight into the performance of a currency trust, which is influenced by factors such as currency exchange rates, interest rates, and global economic events. The Trust's performance is directly tied to the value of the Canadian Dollar relative to the U.S. Dollar.

Comparison to Industry Standards

• It's difficult to directly compare this trust to other companies as it is a passive investment vehicle designed to track the price of the Canadian Dollar.
• A relevant comparison would be to other currency ETFs or similar trusts that track different currencies, such as the Invesco CurrencyShares Euro Trust (FXE) or the WisdomTree Japanese Yen Strategy Fund (FXY).
• Performance can be benchmarked against the spot price movements of the Canadian Dollar against the US Dollar.

Related Party Transactions

• The Trust pays the Sponsor, Invesco Specialized Products, LLC, a Sponsor's fee, which accrues daily at an annual nominal rate of 0.40% of the Canadian Dollars in the Trust and is paid monthly.

Stakeholder Impact

• Shareholders are impacted by the Trust's ability to track the price of the Canadian Dollar and by the distributions paid out of excess interest earned.
• Authorized Participants are affected by the creation and redemption process for Baskets of Shares.

Key Dates

Keywords

Canadian Dollar, CurrencyShares, Invesco, Trust, FXC, ETF, Financial Results