Invesco CurrencyShares British Pound Sterling Trust Files 2023 Annual Report

TL;DR

<b>Invesco CurrencyShares British Pound Sterling Trust (FXB) has filed its 2023 annual 10-K report, detailing its operations and financial status.</b>

AI Summary

Invesco CurrencyShares British Pound Sterling Trust (FXB) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco CurrencyShares British Pound Sterling Trust (FXB) filed its 10-K report for the fiscal year ended December 31, 2023. The trust is sponsored by Invesco Specialized Products, LLC. FXB is registered under the Securities Exchange Act of 1934. The common units of beneficial interest are traded on the NYSE Arca under the symbol FXB. The trust is incorporated in New York.

Why It Matters

For investors and stakeholders tracking Invesco CurrencyShares British Pound Sterling 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. As a 10-K filing, it contains audited financial statements and critical disclosures required by the SEC, offering transparency into the trust's operations.

Risk Assessment

Risk Level: low — Invesco CurrencyShares British Pound Sterling Trust shows low risk based on this filing. The filing is a routine annual report (10-K) for a financial trust, indicating no immediate or significant new risks are highlighted beyond standard operational disclosures.

Analyst Insight

Review the 10-K filing for detailed financial performance, operational structure, and any updated risk factors related to the British Pound Sterling Trust.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-23 — Filing Date (Date of submission)
• 001-32906 — SEC File Number (SEC registration)
• 0000950170-24-019066 — Accession Number (Filing identifier)

Key Players & Entities

• Invesco CurrencyShares British Pound Sterling Trust (company) — Registrant
• FXB (company) — Trading Symbol
• Invesco Specialized Products, LLC (company) — Sponsor
• NYSE Arca (company) — Exchange
• Securities Exchange Act of 1934 (regulator) — Act
• New York (company) — State of Incorporation

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The trust must comply with regulations under the Securities Exchange Act of 1934, as amended.
• Currency Fluctuation Risk [high — financial]: The value of the trust's units is directly tied to the value of the British Pound Sterling relative to the US Dollar, exposing it to currency exchange rate volatility.
• Sponsor and Service Provider Reliance [medium — operational]: The trust relies on Invesco Specialized Products, LLC and other service providers for its operations, management, and administration.

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. (Provides audited financial statements and detailed business information for the fiscal year.)

Common Units of Beneficial Interest

The class of securities representing ownership in the Invesco CurrencyShares British Pound Sterling Trust. (This is the primary security offered by the trust, and its performance is directly linked to the GBP/USD exchange rate.)

Key Financial Figures

• $100,000 — g costs, audit fees and expenses, up to $100,000 per year in legal fees and expenses, an
• $400,918 — tely preceding day). The Trust incurred $400,918 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

• fxb-20231231.htm (10-K) — 724KB
• fxb-ex23_1.htm (EX-23.1) — 3KB
• fxb-ex31_1.htm (EX-31.1) — 13KB
• fxb-ex31_2.htm (EX-31.2) — 13KB
• fxb-ex32_1.htm (EX-32.1) — 8KB
• fxb-ex32_2.htm (EX-32.2) — 8KB
• fxb-ex97.htm (EX-97) — 46KB
• img226387227_0.jpg (GRAPHIC) — 206KB
• img226387227_1.jpg (GRAPHIC) — 267KB
• img226387227_2.jpg (GRAPHIC) — 171KB
• 0000950170-24-019066.txt (&nbsp;) — 3630KB
• fxb-20231231.xsd (EX-101.SCH) — 287KB
• fxb-20231231_htm.xml (XML) — 144KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 3 ITEM 1B. UNRESOLVED STAFF COMMENTS 8 ITEM 1C. CYBERSECURITY 8 ITEM 2.

PROPERTIES

PROPERTIES 9 ITEM 3.

LEGAL PROCEEDINGS

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

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 14 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 15 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 28 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 28 ITEM 9B. OTHER INFORMATION 28 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 28 PART III 29 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 29 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 30 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 30 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 31 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 31 PART IV 32 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 32

SIGNATURES

SIGNATURES 34 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 British Pound Sterling, as the value of the Shares relates directly to the value of the British Pound Sterling 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 PAR T I

B USINESS

ITEM 1. B USINESS. Overview The Invesco CurrencyShares British Pound Sterling 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 "FXB" 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 British Pound Sterling and distributes British Pound Sterling 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 British Pound Sterling 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 British Pound Sterling 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 British Pound Sterling. 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 British Pound Sterling. 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 British Pound Sterling and, from time to time, issues Baskets in exchange for deposits of British Pound Sterling and distributes British Pound Sterling in connection with redemptions of Bask

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 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. The Shares are designed to reflect the price of the British Pound Sterling, plus accumulated interest, if any, less the Trust's expenses. Several factors may affect the price of the British Pound Sterling, 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 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. On June 23, 2016, the citizens of the United Kingdom, a European Union member that had not adopted the euro as its currency, voted to leave the European Union. The United Kingdom withdrew from the European Union on January 31, 2020, and was in a transition period through December 31, 2020, during which time the United Kingdom negotiated and entered into new trade agreements with the European Union and certain trade partner nations; however, trade agreements with other trade partner nations, including the United States and others, have not yet been negotiated. The consequences for the economies of the European Union members of the United Kingdom exiting the European Union

View Full Filing

View this 10-K filing on SEC EDGAR