Invesco CurrencyShares Euro Trust Files 2023 Annual Report

TL;DR

<b>Invesco CurrencyShares Euro Trust filed its 2023 10-K report detailing its financial performance and operational status.</b>

AI Summary

Invesco CurrencyShares Euro Trust (FXE) filed a Annual Report (10-K) with the SEC on February 23, 2024. Filed 10-K for the fiscal year ended December 31, 2023. Common Units of Beneficial Interest trading under FXE on NYSE Arca. Incorporated in New York with fiscal year end December 31. Principal executive offices located at 3500 Lacey Road, Suite 700, Downers Grove, Illinois. Sponsored by Invesco Specialized Products, LLC.

Why It Matters

For investors and stakeholders tracking Invesco CurrencyShares Euro Trust, this filing contains several important signals. This filing provides a comprehensive overview of the Trust's activities and financial health for the fiscal year 2023, crucial for investors tracking the Euro's performance against other currencies. As a 10-K filing, it contains audited financial statements and detailed risk factors, offering insights into the potential volatility and management strategies related to the Euro currency.

Risk Assessment

Risk Level: low — Invesco CurrencyShares Euro Trust shows low risk based on this filing. The filing is a standard annual report for a currency trust, with no immediate red flags indicating high risk beyond the inherent currency market fluctuations.

Analyst Insight

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

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported fiscal year end)
• 001-32694 — SEC File Number (Commission File Number)
• 2024-02-23 — Filing Date (Date of filing)
• 60515 — ZIP Code (Business address ZIP code)

Key Players & Entities

• Invesco CurrencyShares Euro Trust (company) — Registrant name
• FXE (company) — Trading Symbol
• NYSE Arca (company) — Exchange
• Invesco Specialized Products, LLC (company) — Sponsor
• New York (company) — State of Incorporation
• Downers Grove (company) — City
• Illinois (company) — State
• 2023-12-31 (date) — Fiscal Year End

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-23: Filing Date — Date the 10-K report was officially filed with 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 document detailing the Trust's financial status and operations for the fiscal year.)

Common Units of Beneficial Interest

Represents ownership in the Invesco CurrencyShares Euro Trust. (These are the securities traded on the exchange, and their value is tied to the Euro's performance.)

NYSE Arca

A U.S. stock exchange operated by NYSE Group, Inc. (a subsidiary of Intercontinental Exchange), that allows for trading of ETFs and other securities. (This is the exchange where the FXE ticker trades, indicating liquidity and market access for investors.)

Key Financial Figures

• $100,000 — g costs, audit fees and expenses, up to $100,000 per year in legal fees and expenses, an
• $1,034,961 — tely preceding day). The Trust incurred $1,034,961 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

• fxe-20231231.htm (10-K) — 743KB
• fxe-ex23_1.htm (EX-23.1) — 4KB
• fxe-ex31_1.htm (EX-31.1) — 14KB
• fxe-ex31_2.htm (EX-31.2) — 14KB
• fxe-ex32_1.htm (EX-32.1) — 8KB
• fxe-ex32_2.htm (EX-32.2) — 8KB
• fxe-ex97_1.htm (EX-97.1) — 48KB
• img173717624_0.jpg (GRAPHIC) — 256KB
• img173717624_1.jpg (GRAPHIC) — 201KB
• img173717624_2.jpg (GRAPHIC) — 173KB
• 0000950170-24-019061.txt (&nbsp;) — 3664KB
• fxe-20231231.xsd (EX-101.SCH) — 311KB
• fxe-20231231_htm.xml (XML) — 145KB

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 15 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 16 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 29 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 29 ITEM 9B. OTHER INFORMATION 29 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 29 PART III 30 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 30 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 31 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 32 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 euro, as the value of the Shares relates directly to the value of the euro 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 PA RT I

B USINESS

ITEM 1. B USINESS. Overview The Invesco CurrencyShares Euro Trust (the "Trust") is a grantor trust that was formed on December 5, 2005. The Shares began trading on the New York Stock Exchange under the ticker symbol "FXE" on December 12, 2005. 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 euro and distributes euro in connection with the redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the price in USD of euro 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 euro 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 euro. 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 euro. 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 euro and, from time to time, issues Baskets in exchange for deposits of euro and distributes euro in connection with redemptions of Baskets. The euro held by the Trust will be sold only (1) if needed to pay Trust expenses, (2) in the event the Trust terminates and liquidates its assets or (3) as otherwise requi

RISK FA CTOR S

ITEM 1A. RISK FA CTOR S. 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 euro held by the Trust. Fluctuations in the price of the euro could materially and adversely affect the value of the Shares. The Shares are designed to reflect the price of the euro, plus accumulated interest, if any, less the Trust's expenses. The price of euro has fluctuated widely over the past several years, and volatility has increased in recent months, possibly due, in part, to concern over the sovereign debt levels of certain European Union members and the potential impact of this debt on the composition of the European Union members in the eurozone and the value of the euro. Several factors may affect the price of the euro, 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 euro may not maintain its long-term value in terms of purchasing power in the future. When the price of the euro 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; howev

View Full Filing

View this 10-K filing on SEC EDGAR