Invesco CurrencyShares Australian Dollar Trust (FXA) risk factors, FY2024 10-K

Invesco CurrencyShares Australian Dollar Trust's FY2024 10-K, filed Feb 26, 2025, lists 24 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
241 groups
Section length
4k wordsItem 1A

Invesco CurrencyShares Australian Dollar Trust's biggest risks in the FY2024 10-K

  • The Trust relies entirely on the Australian Dollar exchange rate and deposit interest rates.
  • Expenses currently exceed interest earned, eroding trust assets.
  • The Trust lacks standard FDIC insurance and Investment Company Act protections.

The risks most specific to Invesco CurrencyShares Australian Dollar Trust

  • The value of the Shares relates directly to the value of the Australian Dollars held by the Trust. Fluctuations in the price of the Australian Dollar could materially and adversely affect the value of the Shares

    The value of the Shares depends directly on fluctuations in the price of the Australian Dollar held by the Trust.

  • If interest earned by the Trust does not exceed the Trust’s expenses, the Trustee will withdraw Australian Dollars from the Trust to pay these excess expenses, which will reduce the amount of Australian Dollars represented by each Share on an ongoing basis and may result in adverse tax consequences for Shareholders

    Trust expenses currently exceed interest earned, requiring the Trustee to withdraw Australian Dollars and reducing the amount represented by each Share.

  • If the Trust incurs expenses in USD, the Trust would be required to sell Australian Dollars to pay these expenses. The sale of the Trust’s Australian Dollars to pay expenses in USD at a time of low Australian Dollar prices could adversely affect the value of the Shares

    The Trust must sell Australian Dollars to pay USD expenses regardless of the exchange rate, potentially harming share value.

  • The Deposit Accounts are not entitled to payment at any office of JPMorgan Chase Bank, N.A. located in the United States

    Deposit accounts are held at the London branch of JPMorgan Chase Bank, N.A. and are not payable at any US office.

  • Shareholders do not have the protections associated with ownership of a demand deposit account insured in the United States by the Federal Deposit Insurance Corporation or the protection provided for bank deposits under English law

    Shareholders lack FDIC deposit insurance and FSCS protection under English law.

  • INSOLVENCY OR TERMINATION OF THE DEPOSITORY OR TRUST

    Insolvency of the Depository could result in delays and costs in recovering the Trust's Australian Dollars.

  • The Depository owes no fiduciary duties to the Trust or the Shareholders, is not required to act in their best interest and could resign or be removed by the Sponsor, which would trigger early termination of the Trust

    The Depository owes no fiduciary duties to the Trust and can terminate its role upon 90 days' notice, triggering liquidation.

All 24 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The value of the Shares relates directly to the value of the Australian Dollars held by the Trust. Fluctuations in the price of the Australian Dollar could materially and adversely affect the value of the Shares
  2. 02The Australian Dollar/USD exchange rate, like foreign exchange rates in general, can be volatile and difficult to predict. This volatility could materially and adversely affect the performance of the Shares
  3. 03If interest earned by the Trust does not exceed the Trust’s expenses, the Trustee will withdraw Australian Dollars from the Trust to pay these excess expenses, which will reduce the amount of Australian Dollars represented by each Share on an ongoing basis and may result in adverse tax consequences for Shareholders
  4. 04The interest rate paid by the Depository, if any, may not be the best rate available. If the Sponsor determines that the interest rate is inadequate, then its sole recourse is to remove the Depository and terminate the Deposit Accounts
  5. 05If the Trust incurs expenses in USD, the Trust would be required to sell Australian Dollars to pay these expenses. The sale of the Trust’s Australian Dollars to pay expenses in USD at a time of low Australian Dollar prices could adversely affect the value of the Shares
  6. 06The Shares may trade at a price which is at, above, or below the NAV per Share
  7. 07Disruptions in the ability to create and redeem Baskets may adversely impact the price of the Shares
  8. 08Substantial sales of Australian Dollars by the official sector could adversely affect an investment in the Shares
  9. 09International Armed Conflicts May Result in Volatility in Currency Prices that Could Adversely Affect the Fund's Performance
  10. 10Pandemics and other public health emergencies could disrupt the global economy and adversely impact the Trust's performance
  11. 11Changes to United States tariff and trade policies may increase the volatility of foreign exchange rates. This volatility could materially and adversely affect the performance of the Shares
  12. 12The Deposit Accounts are not entitled to payment at any office of JPMorgan Chase Bank, N.A. located in the United States
  13. 13Shareholders do not have the protections associated with ownership of a demand deposit account insured in the United States by the Federal Deposit Insurance Corporation or the protection provided for bank deposits under English law
  14. 14Shareholders do not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940
  15. 15Shareholders do not have the rights enjoyed by investors in certain other financial instruments
  16. 16Shareholders that are not Authorized Participants may only purchase or sell their Shares in secondary trading markets
  17. 17INSOLVENCY OR TERMINATION OF THE DEPOSITORY OR TRUST
  18. 18The License Agreement with The Bank of New York Mellon may be terminated by The Bank of New York Mellon in the event of a material breach. Termination of the License Agreement might lead to early termination and liquidation of the Trust
  19. 19Shareholders may incur significant fees upon the termination of the Trust
  20. 20The Depository owes no fiduciary duties to the Trust or the Shareholders, is not required to act in their best interest and could resign or be removed by the Sponsor, which would trigger early termination of the Trust
  21. 21Redemption orders are subject to rejection by the Trustee under certain circumstances
  22. 22The liability of the Sponsor and the Trustee under the Depositary Trust Agreement is limited and, except as set forth in the Depositary Trust Agreement, they are not obligated to prosecute any action, suit or other proceeding in respect of any Trust property
  23. 23The Depositary Trust Agreement may be amended to the detriment of Shareholders without their consent

OTHER RISKS

  1. 24Due to the increased use of technologies, intentional and unintentional cyber attacks pose operational and information security risks

Other Invesco CurrencyShares Australian Dollar Trust 10-Ks

  • FY2025 10-K risk factors
    23 risks1 dropped3 reworded

    The Trust dropped COVID-19 risks while updating U.S. tariff policies, global armed conflicts, and Australian Dollar interest-to-expense margins.

    Filed Mar 02, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.