10-Q: Invesco CurrencyShares Swiss Franc Trust Reports Q3 2024 Results
Quarterly Report
Invesco CurrencyShares Swiss Franc Trust reports its financial results for the quarter ended September 30, 2024, noting the impact of market volatility and geopolitical concerns on the Swiss Franc's performance.
Summary
- Invesco CurrencyShares Swiss Franc Trust's investment objective is to reflect the price in USD of the Swiss Franc plus accrued interest, if any, less the expenses of the Trust's operations.
- The Trust primarily holds Swiss Francs in deposit accounts.
- For the three months ended September 30, 2024, the Trust reported a net comprehensive loss of $54,871, or $0.04 per share, compared to a loss of $109,874, or $0.06 per share, for the same period in 2023.
- For the nine months ended September 30, 2024, the Trust reported a net comprehensive loss of $68,932, or $0.04 per share, compared to a loss of $505,734, or $0.26 per share, for the same period in 2023.
- As of September 30, 2024, the Trust had 1,500,000 shares outstanding.
- The interest rate on the primary deposit account was 0.20% as of September 30, 2024.
- The Sponsor's fee accrues daily at an annual nominal rate of 0.40% of the Swiss Francs in the Trust.
- The Trust did not make any distributions during the quarter ended September 30, 2024.
- The Swiss franc (CHF/USD) ended the third quarter of 2024 with strong gains.
- The Swiss franc (CHF/USD) posted a slight loss in the first three quarters of 2024.
Sentiment
Score: 6
Explanation: The sentiment is neutral. While the Trust experienced losses, they were lower than the previous year. The report also highlights the Swiss Franc's strong gains in Q3 2024, but also notes a slight loss in the first three quarters of 2024.
Positives
- The net comprehensive loss for the three months ended September 30, 2024, was lower than the loss for the same period in 2023 ($54,871 vs $109,874).
- The net comprehensive loss for the nine months ended September 30, 2024, was lower than the loss for the same period in 2023 ($68,932 vs $505,734).
- The Swiss franc (CHF/USD) ended the third quarter of 2024 with strong gains.
Negatives
- The Trust experienced a net comprehensive loss for both the three and nine months ended September 30, 2024.
- The Swiss franc (CHF/USD) posted a slight loss in the first three quarters of 2024.
Risks
- Fluctuations in the price of the Swiss Franc could materially adversely affect an investment in the Shares.
- A decline in the Swiss Franc to USD exchange rate will have an adverse effect on the value of the Shares.
- Concentration of the Trust's assets in accounts held by a single financial institution increases the potential for loss if the Depository becomes insolvent.
Future Outlook
The report contains forward-looking statements regarding future developments and their potential effects, which are subject to various factors that may cause actual results to differ materially.
Industry Context
The performance of the Invesco CurrencyShares Swiss Franc Trust is directly tied to the value of the Swiss Franc against the US dollar, making it susceptible to global economic events, monetary policies of the Swiss National Bank and the Federal Reserve, and safe-haven demand.
Comparison to Industry Standards
- The Invesco CurrencyShares Swiss Franc Trust (FXF) is designed to track the performance of the Swiss Franc against the US dollar.
- Comparable currency ETFs include those tracking the Euro (FXE), Japanese Yen (FXY), and British Pound (FXB).
- FXF's expense ratio of 0.40% is typical for currency ETFs.
- The Trust's performance is directly linked to the CHF/USD exchange rate, making it a tool for investors seeking exposure to the Swiss Franc without directly holding the currency.
Related Party Transactions
- The Trust pays Invesco Specialized Products, LLC, the Sponsor, a Sponsor's fee, which accrues daily at an annual nominal rate of 0.40% of the Swiss Francs in the Trust.
Stakeholder Impact
- Shareholders are exposed to the fluctuations in the Swiss Franc to USD exchange rate.
- The Sponsor receives a fee for managing the Trust.
- Authorized Participants can create and redeem shares in Baskets.
Key Dates
| Date | Description |
|---|---|
| June 8, 2006 | The Invesco CurrencyShares Swiss Franc Trust was formed. |
| June 26, 2006 | The Shares began trading on the New York Stock Exchange under the ticker symbol FXF. |
| September 28, 2017 | Guggenheim Capital, LLC and Invesco Ltd. entered into a Transaction Agreement. |
| April 6, 2018 | The Transaction Agreement was consummated. |
| February 23, 2024 | Filing of the Trust's Annual Report on Form 10-K for the year ended December 31, 2023, with the SEC. |
| September 30, 2024 | End of the quarterly period for this report. |
| November 6, 2024 | Date of the report. |
Keywords
Swiss Franc, Invesco CurrencyShares, FXF, Currency Trust, Financial Results, Q3 2024
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