Invesco CurrencyShares Japanese Yen Trust Files 2023 Annual Report

TL;DR

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

AI Summary

Invesco CurrencyShares Japanese Yen Trust (FXY) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco CurrencyShares Japanese Yen Trust (FXY) filed its 10-K report for the fiscal year ended December 31, 2023. The trust is incorporated in New York and its principal executive offices are located in Downers Grove, Illinois. Common Units of Beneficial Interest are traded under the symbol FXY on the NYSE Arca. The filing indicates the registrant is not a well-known seasoned issuer. The trust has been subject to Section 13 or 15(d) filing requirements for the past 90 days.

Why It Matters

For investors and stakeholders tracking Invesco CurrencyShares Japanese Yen Trust, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the Invesco CurrencyShares Japanese Yen Trust's performance and compliance for the fiscal year 2023. Investors and analysts can use this report to assess the trust's structure, trading information, and regulatory standing.

Risk Assessment

Risk Level: low — Invesco CurrencyShares Japanese Yen Trust shows low risk based on this filing. The filing is a standard annual report (10-K) for a financial trust, indicating routine operations with no immediate high-risk disclosures.

Analyst Insight

Review the 10-K filing for detailed financial statements and disclosures related to the Invesco CurrencyShares Japanese Yen Trust's operations and assets.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-23 — Filing Date (Date of submission)
• 001-33298 — Commission File Number (SEC identifier)
• 37-6416176 — IRS Employer Identification No. (Tax identifier)

Key Players & Entities

• Invesco CurrencyShares Japanese Yen Trust (company) — Registrant
• FXY (company) — Trading Symbol
• NYSE Arca (company) — Exchange
• Invesco Specialized Products, LLC (company) — Sponsor
• New York (location) — State of Incorporation
• Downers Grove, Illinois (location) — Principal Executive Offices

FAQ

Risk Factors

• Filing Requirements [low — regulatory]: The registrant must file all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 and has been subject to these requirements for the past 90 days.

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 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 filing provides the official annual financial and operational overview for the Invesco CurrencyShares Japanese Yen Trust.)

Common Units of Beneficial Interest

The class of securities representing ownership in the Invesco CurrencyShares Japanese Yen Trust. (These are the securities traded on the NYSE Arca under the symbol FXY.)

Key Financial Figures

• $100,000 — g costs, audit fees and expenses, up to $100,000 per year in legal fees and expenses, an
• $956,975 — tely preceding day). The Trust incurred $956,975 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

• fxy-20231231.htm (10-K) — 704KB
• fxy-ex23_1.htm (EX-23.1) — 3KB
• fxy-ex31_1.htm (EX-31.1) — 12KB
• fxy-ex31_2.htm (EX-31.2) — 12KB
• fxy-ex32_1.htm (EX-32.1) — 8KB
• fxy-ex32_2.htm (EX-32.2) — 8KB
• fxy-ex97.htm (EX-97) — 37KB
• img1543908_0.jpg (GRAPHIC) — 212KB
• img1543908_1.jpg (GRAPHIC) — 259KB
• img1543908_2.jpg (GRAPHIC) — 162KB
• 0000950170-24-019051.txt (&nbsp;) — 3448KB
• fxy-20231231.xsd (EX-101.SCH) — 270KB
• fxy-20231231_htm.xml (XML) — 108KB

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 13 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 14 ITEM 9. CHANGES IN DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 27 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 27 ITEM 9B. OTHER INFORMATION 27 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 27 PART III 28 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 28 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 29 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 30 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 30 PART IV 31 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 31 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 Japanese Yen, as the value of the Shares relates directly to the value of the Japanese Yen 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 PART I

B USINESS

ITEM 1. B USINESS. Overview The Invesco CurrencyShares Japanese Yen Trust (the "Trust") is a grantor trust that was formed on February 1, 2007. The Shares began trading on the New York Stock Exchange under the ticker symbol "FXY" on February 13, 2007. 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 Japanese Yen and distributes Japanese Yen 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 Japanese Yen 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 Japanese Yen 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 Japanese Yen. 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 Japanese Yen. 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 Japanese Yen and, from time to time, issues Baskets in exchange for deposits of Japanese Yen and distributes Japanese Yen in connection with redemptions of Baskets. The Japanese Yen held by the Trust will be sold only (1) if needed to pay Trust expense

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 Japanese Yen held by the Trust. Fluctuations in the price of the Japanese Yen could materially and adversely affect the value of the Shares. The Shares are designed to reflect the price of the Japanese Yen, plus accumulated interest, if any, less the Trust's expenses. Several factors may affect the price of the Japanese Yen, 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 Japanese Yen may not maintain its long-term value in terms of purchasing power in the future. When the price of the Japanese Yen declines, the Sponsor expects the price of a Share to decline as well. The Japanese Yen/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 and revaluations. Also, governments fro

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View this 10-K filing on SEC EDGAR