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

Invesco CurrencyShares Swiss Franc Trust reports its annual performance, highlighting the impact of market volatility and central bank policies on the value of the Swiss Franc.

Summary

• The Invesco CurrencyShares Swiss Franc Trust is a grantor trust aiming to reflect the price of Swiss Francs in USD, less expenses.
• The Trust's investment objective is for the Shares to reflect the price in USD of Swiss Francs plus accrued interest, if any, less the expenses of the Trusts operations.
• The Trust holds Swiss Francs and issues shares (Baskets) in exchange for deposits of Swiss Francs.
• The Sponsor's fee is 0.40% annually of the Swiss Francs in the Trust, accruing daily.
• The Trust incurred $616,855 in Sponsor's fees for the year ended December 31, 2024.
• The Trust's net comprehensive loss for 2024 was $158,211, impacted by market volatility and central bank policies.
• The interest rate on the primary deposit account was 0.00% as of December 31, 2024.
• As of January 31, 2025, the Trust had 79 holders of record of its Shares.
• The Trust redeemed 50,000 shares at an average price of $100.15 during November 2024.

Sentiment

Score: 5

Explanation: The document presents a neutral view with a slight negative sentiment due to the reported net loss, but highlights effective internal controls and ongoing risk management.

Positives

• The Trust provides a cost-effective way for investors to participate in the Swiss Franc market.
• The Trust is a passive investment vehicle and does not use derivatives.
• The Sponsor oversees the performance of the Trustee and principal service providers.
• The Trust maintains internal control over financial reporting.

Negatives

• The Trust experienced a net comprehensive loss of $158,211 in 2024.
• The interest rate on the primary deposit account was 0.00% as of December 31, 2024.
• The value of the Shares is directly related to the value of the Swiss Franc, which can be volatile.
• If interest earned by the Trust does not exceed expenses, Swiss Francs will be withdrawn, reducing the amount represented by each Share.

Risks

• Fluctuations in the price of the Swiss Franc could materially and adversely affect the value of the Shares.
• The Swiss Franc/USD exchange rate can be volatile and difficult to predict.
• If interest earned by the Trust does not exceed expenses, the Trustee will withdraw Swiss Francs from the Trust to pay these excess expenses.
• The Shares may trade at a price which is at, above, or below the NAV per Share.
• Substantial sales of Swiss Francs 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.
• Shareholders do not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940.
• Due to the increased use of technologies, intentional and unintentional cyber attacks pose operational and information security risks.
• If the Depository becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant.

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 Swiss Franc.

Industry Context

The performance of the Trust is influenced by global economic conditions, monetary policies of governments, and geopolitical events, which affect currency exchange rates.

Related Party Transactions

• The Trust pays Invesco Specialized Products, LLC, a related party, a Sponsor's fee.

Stakeholder Impact

• Shareholders are exposed to the risks associated with fluctuations in the Swiss Franc/USD exchange rate.
• Shareholders may receive distributions if interest earned exceeds the Sponsor's fee and other expenses.

Key Dates

Keywords

Swiss Franc, CurrencyShares, Invesco, Trust, FXF, Exchange Rate, Sponsor, Shares, NAV, Financial Report