Invesco CurrencyShares British Pound Sterling Trust reported a net comprehensive income of $2.04 million for the fiscal year ending December 31, 2024, a decrease from $2.77 million in the previous year. The Trust's interest income also fell to $2.29 million from $3.17 million in 2023, reflecting a decline in the British Pound Sterling's value and market volatility. The Trust's total assets decreased significantly to $60.32 million from $86.00 million, primarily due to a reduction in British Pound Sterling deposits, which dropped from $85.72 million to $60.15 million.
The Trust experienced a notable change in its share structure, with the number of redeemable capital shares decreasing from 700,000 to 500,000. This reduction was attributed to the redemption of shares, which totaled approximately $92 million during the year. The Sponsor's fee, which is the Trust's only recurring expense, was $257,872, down from $400,918 in the previous year, indicating a decrease in operational costs alongside the decline in income.
Operationally, the Trust's performance was influenced by fluctuations in the British Pound Sterling, which ended 2024 slightly negative after experiencing sharp losses in the fourth quarter. The Trust's NAV per share is directly tied to the value of the British Pound Sterling, and the Trust does not engage in active management to mitigate risks associated with currency fluctuations. The interest rate on the primary deposit account held by JPMorgan Chase Bank was 3.26% as of December 31, 2024, down from previous levels, which also contributed to the decline in interest income.
Looking ahead, the Trust's management anticipates continued volatility in the currency markets, influenced by geopolitical tensions and economic conditions. The Trust's investment objective remains to reflect the price of the British Pound Sterling in USD, plus accrued interest, less operational expenses. However, the management cautions that fluctuations in the British Pound Sterling's value could materially affect the performance of the Trust and the value of its shares. The Trust's ability to maintain its current income levels will depend on market conditions and the interest rates offered by the Depository.
About Invesco CurrencyShares British Pound Sterling Trust
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