Invesco CurrencyShares Canadian Dollar Trust (FXC) risk factors, FY2024 10-K

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

  • Trust performance depends entirely on Canadian Dollar exchange rates and interest earned versus trust expenses.
  • Shareholders lack standard protections like FDIC insurance and Investment Company Act oversight.
  • Trust assets are held in foreign deposit accounts subject to insolvency and termination risks.

The risks most specific to Invesco CurrencyShares Canadian Dollar Trust

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

    The value of the Shares relates directly to the value of Canadian Dollars held by the Trust, and exchange rate fluctuations could adversely affect Share value.

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

    When interest earned does not exceed Trust expenses, the Trustee withdraws Canadian Dollars, reducing the amount represented by each Share and creating potential tax consequences.

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

    Expenses incurred in USD force the Trust to sell Canadian Dollars at potentially unfavorable prices, adversely affecting Share value.

  • International Armed Conflicts May Result in Volatility in Currency Prices that Could Adversely Affect the Fund's Performance

    International armed conflicts, such as those involving Russia-Ukraine and Hamas-Israel, may cause currency price volatility and impact Fund performance.

  • Changes 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

    Changes and proposed changes to United States and Canada trade policies and import tariffs may increase foreign exchange rate volatility.

  • 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 entitled to payment at any United States 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

    Shares and Deposit Accounts are not insured against loss by the FDIC or England's Financial Services Compensation Scheme.

  • INSOLVENCY OR TERMINATION OF THE DEPOSITORY OR TRUST

    Insolvency of the Depository could result in its assets being inadequate to satisfy claims by the Trust or Authorized Participants.

  • The 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

    Termination of the License Agreement with The Bank of New York Mellon could lead to early termination and liquidation of the Trust.

  • 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 or Shareholders and can terminate its role upon 90 days’ notice, triggering early Trust termination.

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 Canadian Dollars held by the Trust. Fluctuations in the price of the Canadian Dollar could materially and adversely affect the value of the Shares
  2. 02The Canadian 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 Canadian Dollars from the Trust to pay these excess expenses, which will reduce the amount of Canadian 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 Canadian Dollars to pay these expenses. The sale of the Trust’s Canadian Dollars to pay expenses in USD at a time of low Canadian 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 Canadian 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 Canadian Dollar Trust 10-Ks

  • FY2025 10-K risk factors
    25 risks2 new1 dropped5 reworded

    Expenses can reduce Canadian dollars backing each Share, although 2025 interest income exceeded expenses significantly.

    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.