10-K: Invesco CurrencyShares Euro Trust Reports Annual Results for Fiscal Year 2024

Invesco CurrencyShares Euro Trust reports its annual results for the fiscal year ended December 31, 2024, highlighting the impact of market volatility on the price of the euro.

Summary

• Invesco CurrencyShares Euro Trust is a grantor trust that issues shares (FXE) representing a proportional interest in euro held by the Trust.
• The Trust's investment objective is to reflect the price in USD of euro plus accrued interest, if any, less the expenses of the Trust's operations.
• The Sponsor's fee accrues daily at an annual nominal rate of 0.40% of the euro in the Trust, amounting to $746,227 for the year ended December 31, 2024.
• The Trust's net comprehensive income for 2024 was $3,990,254, compared to $4,268,764 in 2023.
• The Trust distributes excess interest to shareholders on a monthly basis if interest earned exceeds the Sponsor's fee and other expenses.
• As of January 31, 2025, the Trust had 85 holders of record of its Shares and 1,600,000 Redeemable Capital Shares outstanding.

Sentiment

Score: 6

Explanation: The report presents a mixed picture, with a decrease in net comprehensive income offset by effective internal controls and a cost-effective investment option. The risks associated with currency fluctuations and global events temper the overall sentiment.

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 investment benefits similar to those of holding euro.
• 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 euro represented by each Share will gradually decline over time if interest earned does not exceed expenses.
• The Shares may trade at a price which is at, above, or below the NAV per Share.

Risks

• Fluctuations in the price of the euro could materially and adversely affect the value of the Shares.
• Economic, political, or social conditions may require members of the official sector to sell their euro, which could adversely affect the price of the euro.
• International armed conflicts may result in volatility in currency prices that could adversely affect the Fund's performance.
• Cyber attacks pose operational and information security risks.
• Changes to United States tariff and trade policies may increase the volatility of foreign exchange rates.

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 euro.

Industry Context

The performance of the Trust is directly linked to the price of the euro, which is influenced by various global economic and political factors, including sovereign debt levels, inflation rates, and geopolitical events.

Comparison to Industry Standards

• The Invesco CurrencyShares Euro Trust is comparable to other currency trusts such as the WisdomTree Euro ETF (EEU) and the ProShares Ultra Euro (ULE).
• These trusts aim to provide investors with exposure to the euro currency, but they may differ in their expense ratios, investment strategies, and risk profiles.
• The Invesco CurrencyShares Euro Trust has an expense ratio of 0.40%, which is in line with other currency trusts.
• The Trust's performance is directly linked to the price of the euro, which is influenced by various global economic and political factors, including sovereign debt levels, inflation rates, and geopolitical events.

Related Party Transactions

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

Stakeholder Impact

• Shareholders are exposed to the risks and rewards of euro price fluctuations.
• Shareholders receive monthly distributions of excess interest, if any.
• Authorized Participants can create and redeem Baskets of Shares.

Key Dates