Invesco CurrencyShares Australian Dollar Trust Files 2023 Annual Report

TL;DR

<b>Invesco CurrencyShares Australian Dollar Trust filed its 2023 10-K report, detailing its operations and financial status.</b>

AI Summary

Invesco CurrencyShares Australian Dollar Trust (FXA) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco CurrencyShares Australian Dollar Trust filed its 10-K report for the fiscal year ended December 31, 2023. The Trust is sponsored by Invesco Specialized Products, LLC. Common Units of Beneficial Interest are traded under the symbol FXA on the NYSE Arca. The Trust is incorporated in New York and its fiscal year ends on December 31. The filing indicates the Trust is not a well-known seasoned issuer.

Why It Matters

For investors and stakeholders tracking Invesco CurrencyShares Australian Dollar Trust, this filing contains several important signals. This filing provides investors with a comprehensive overview of the Trust's performance and structure for the fiscal year 2023. Understanding the details within this 10-K is crucial for investors tracking the Australian Dollar's performance via the FXA ETF.

Risk Assessment

Risk Level: low — Invesco CurrencyShares Australian Dollar Trust shows low risk based on this filing. The filing is a standard annual report (10-K) for a currency trust, which typically involves lower risk compared to operating companies with complex business models and market risks.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to assess the Trust's exposure to currency fluctuations and operational aspects.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-23 — Filing Date (Date of submission)
• 001-32911 — SEC File Number (Commission File Number)

Key Players & Entities

• Invesco CurrencyShares Australian Dollar Trust (company) — Registrant
• Invesco Specialized Products, LLC (company) — Sponsor
• FXA (company) — Trading Symbol
• NYSE Arca (company) — Exchange
• New York (company) — State of Incorporation

FAQ

Risk Factors

• Redeemable Capital Shares [medium — financial]: The Trust's redeemable capital shares are a significant component, with activity reported for periods ending December 31, 2023, 2022, and 2021.
• Retained Earnings [medium — financial]: Retained earnings are reported for the fiscal years ended December 31, 2023, and 2022, indicating accumulated profits or losses.
• Professional Fees Liability [low — financial]: Liabilities related to professional fees, particularly concerning the sponsor, are noted for the fiscal years 2023 and 2022.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-02-23: Filing Date — Date the 10-K report was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary filing type for the Invesco CurrencyShares Australian Dollar Trust, providing key financial and operational data.)

Common Units of Beneficial Interest

Represents ownership in a trust, similar to shares in a corporation. (These are the securities traded on the exchange for the Invesco CurrencyShares Australian Dollar Trust.)

Sponsor

An entity that establishes and oversees a trust, often providing administrative and marketing services. (Invesco Specialized Products, LLC is the sponsor of this Trust, indicating their role in its management.)

Key Financial Figures

• $100,000 — g costs, audit fees and expenses, up to $100,000 per year in legal fees and expenses, an
• $290,525 — tely preceding day). The Trust incurred $290,525 for the year ended December 31, 2023 in
• $500 — d Participants pay a transaction fee of $500 to the Trustee for each order that they
• $2,000 — Authorized Participant will not exceed $2,000 for each creation or redemption order,

Filing Documents

• fxa-20231231.htm (10-K) — 738KB
• fxa-ex23_1.htm (EX-23.1) — 4KB
• fxa-ex31_1.htm (EX-31.1) — 13KB
• fxa-ex31_2.htm (EX-31.2) — 14KB
• fxa-ex32_1.htm (EX-32.1) — 8KB
• fxa-ex32_2.htm (EX-32.2) — 9KB
• fxa-ex97_1.htm (EX-97.1) — 48KB
• img154465276_0.jpg (GRAPHIC) — 200KB
• img154465276_1.jpg (GRAPHIC) — 226KB
• img154465276_2.jpg (GRAPHIC) — 185KB
• 0000950170-24-019069.txt (&nbsp;) — 3591KB
• fxa-20231231.xsd (EX-101.SCH) — 299KB
• fxa-20231231_htm.xml (XML) — 148KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 3 ITEM 1B. UNRESOLVED STAFF COMMENTS 9 ITEM 1C. CYBERSECURITY 9 ITEM 2.

PROPERTIES

PROPERTIES 9 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 9 ITEM 4. MINE SAFETY DISCLOSURES 10 PART II 11 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 11 ITEM 6. RESERVED 11 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 12 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 16 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 17 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 30 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 30 ITEM 9B. OTHER INFORMATION 30 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 30 PART III 31 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 31 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 32 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. 32 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 32 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 33 PART IV 33 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 33 i CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "outlook" and "estimate" and other similar words. Forward-looking statements are based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Various factors may cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include fluctuations in the price of the Australian Dollar, as the value of the Shares relates directly to the value of the Australian Dollars held by the Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the "Risk Factors" section in this report for a description of other risks and uncertainties that may affect an investment in the Shares. ii P ART I

BUSINESS

ITEM 1. BUSINESS. Overview The Invesco CurrencyShares Australian Dollar Trust (the "Trust") is a grantor trust that was formed on June 8, 2006. The Shares began trading on the New York Stock Exchange under the ticker symbol "FXA" on June 26, 2006. The primary listing of the Shares was transferred to NYSE Arca, Inc. ("NYSE Arca") on October 30, 2007. The Trust issues shares (the "Shares") in blocks of 50,000 (a "Basket") in exchange for deposits of Australian Dollars and distributes Australian Dollars in connection with the redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the price in USD of the Australian Dollar plus accrued interest, if any, less the expenses of the Trust's operations. The Shares are intended to offer investors an opportunity to participate in the market for the Australian Dollar through an investment in securities. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding the Australian Dollar. The Shares are bought and sold on NYSE Arca like any other exchange-listed security. The Shares are backed by the assets of the Trust, which does not hold or use derivative products. The Trust is a passive investment vehicle and does not have any officers, directors or employees. The Trust does not engage in any activities designed to obtain profit from, or ameliorate losses caused by, changes in the price of the Australian Dollar. Investing in the Shares does not insulate the investor from certain risks, including price volatility. The value of the holdings of the Trust is reported on the Trust's website, www.invesco.com/etfs, each business day. The Trust General The Trust holds Australian Dollars and, from time to time, issues Baskets in exchange for deposits of Australian Dollars and distributes Australian Dollars in connection with redemptions of Baskets. The Australian Dollars held by the Trust

RISK FACTORS

ITEM 1A. RISK FACTORS. You should consider carefully the risks described below before making an investment decision. You should also refer to the other information included in this report, including the Trust's financial statements and the related notes . ECONOMIC CONDITIONS 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 Shares are designed to reflect the price of the Australian Dollar, plus accumulated interest, if any, less the Trust's expenses. Several factors may affect the price of the Australian Dollar, including: Sovereign debt levels and trade deficits; Domestic and foreign inflation rates and interest rates and investors' expectations concerning those rates; Currency exchange rates; Investment and trading activities of mutual funds, hedge funds and currency funds; and Global, regional or national political, economic or financial events and situations. In addition, the Australian Dollar may not maintain its long-term value in terms of purchasing power in the future. When the price of the Australian Dollar declines, the Sponsor expects the price of a Share to decline as well. The 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. Foreign exchange rates are influenced by the factors identified in the preceding risk factor and may also be influenced by: changing supply and demand for a particular currency; monetary policies of governments (including exchange control programs, restrictions on local exchanges or markets and limitations on foreign investment in a country or on investment by residents of a country in other countries); changes in balances of payments and trade; trade restrictions; and currency devaluations an

View Full Filing

View this 10-K filing on SEC EDGAR