10-Q: Invesco CurrencyShares Japanese Yen Trust Reports Q1 2025 Results

Invesco CurrencyShares Japanese Yen Trust reports its financial results for the quarter ended March 31, 2025, noting the impact of global economic factors on the Japanese Yen's performance.

Summary

• Invesco CurrencyShares Japanese Yen Trust's Q1 2025 report indicates a net comprehensive loss of $435,228, or $0.06 per share.
• This compares to a net comprehensive loss of $460,972, or $0.09 per share, for the same period in 2024.
• The Trust's assets primarily consist of Japanese Yen deposits, which totaled $549,055,814 as of March 31, 2025, compared to $393,691,700 at the end of 2024.
• The increase in assets is primarily due to purchases of shares exceeding redemptions.
• The Trust's investment objective is to reflect the price of the Japanese Yen in U.S. Dollars, less expenses.
• The Sponsor's fee accrues daily at an annual rate of 0.40% of the Japanese Yen in the Trust.
• The Trust did not make any distributions during the quarter ended March 31, 2025.
• The Trust had 8,900,000 shares outstanding as of March 31, 2025, compared to 6,650,000 at the end of 2024.

Sentiment

Score: 4

Explanation: The report indicates a net loss and mentions risks associated with currency fluctuations and trade policies, resulting in a slightly negative sentiment.

Positives

• The Trust's Japanese Yen deposits increased from $393,691,700 at the end of 2024 to $549,055,814 as of March 31, 2025, indicating increased investment in the fund.

Negatives

• The Trust experienced a net comprehensive loss of $435,228 for the quarter ended March 31, 2025.
• The Trust did not make any distributions during the quarter ended March 31, 2025.
• The interest rate on the primary deposit account was 0.00% as of March 31, 2025.

Risks

• Fluctuations in the Japanese Yen/USD exchange rate can materially affect the value of the Shares.
• Changes in United States tariff and trade policies have increased the volatility of foreign exchange rates and may continue to do so.
• A decline in the Japanese Yen to USD exchange rate will have an adverse effect on the value of the Shares.
• The Trust's assets are concentrated in Japanese Yen, creating a concentration risk.
• The Trust's Japanese Yen are held by a single depository, increasing the potential for loss if the depository becomes insolvent.

Future Outlook

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

Industry Context

The report notes that global tariff gyrations, US recession concerns for 2025, expectations around the Federal Reserve easing, and heightened geopolitical concerns for 2024 impacted market volatility and the Trust's performance.

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 Japanese Yen in the Trust.

Stakeholder Impact

• Shareholders are exposed to risks associated with fluctuations in the Japanese Yen/USD exchange rate.
• Shareholders may not receive distributions if the Trust incurs a net loss or if interest earned is insufficient to cover expenses.

Key Dates

Keywords

Japanese Yen, CurrencyShares, Invesco, Trust, FXY, Exchange Rate, Financial Results, Q1 2025