Invesco CurrencyShares British Pound Sterling Trust (FXB) risk factors, FY2024 10-K

Other

1. 01The value of the Shares relates directly to the value of the British Pound Sterling held by the Trust. Fluctuations in the price of the British Pound Sterling could materially and adversely affect the value of the Shares
2. 02In addition, the British Pound Sterling may not maintain its long-term value in terms of purchasing power in the future. When the price of the British Pound Sterling declines, the Sponsor expects the price of a Share to decline as well
3. 03The British Pound Sterling/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
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 British Pounds Sterling to pay these expenses. The sale of the Trust’s British Pounds Sterling to pay expenses in USD at a time of low British Pound Sterling 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 British Pounds Sterling 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