Invesco CurrencyShares Japanese Yen Trust Reports $1.63 Million Net Loss for Fiscal Year 2024

Invesco CurrencyShares Japanese Yen Trust reported a net comprehensive loss of $1.63 million for the fiscal year ending December 31, 2024, compared to a loss of $1.44 million in the previous year. The Trust's total assets increased significantly to $393.69 million, up from $312.59 million in 2023, primarily due to a rise in Japanese Yen deposits. The Trust's liabilities also rose, with redemptions payable amounting to $2.94 million, reflecting increased activity in the creation and redemption of shares.

The Trust's operational metrics showed a notable increase in the number of redeemable capital shares, which rose to 6.65 million from 4.75 million in the prior year. This increase was driven by a net increase of 1.9 million shares due to share transactions, including the purchase of 3.65 million shares and the redemption of 1.75 million shares. The Trust's interest income remained at zero, while total expenses increased to $1.63 million, primarily due to a rise in the Sponsor's fee, which amounted to $1.47 million, up from $957,000 in 2023.

Strategically, the Trust continues to operate as a passive investment vehicle, with no significant acquisitions or product launches reported during the fiscal year. The Trust's structure allows it to issue shares in blocks of 50,000 in exchange for deposits of Japanese Yen, and it does not engage in derivative products. The Trust's only recurring expense is the Sponsor's fee, which is set at an annual nominal rate of 0.40% of the Japanese Yen held in the Trust.

The Trust's financial performance was influenced by market volatility, particularly fluctuations in the Japanese Yen's value against the U.S. dollar. The Japanese Yen experienced significant pressure in the first half of 2024, reaching its weakest level against the dollar in over three decades, before recovering somewhat in the third quarter. However, these gains were reversed in the fourth quarter, leading to a continued decline in the Yen's value over the year. The Trust's outlook remains cautious, as it is subject to various risks, including currency fluctuations and geopolitical events that could impact the value of the Japanese Yen.

Looking ahead, the Trust's management anticipates that the ongoing volatility in foreign exchange rates and economic conditions will continue to affect its performance. The Trust does not expect to generate taxable income except for any interest income, which has been negligible. The management remains focused on monitoring market conditions and adjusting strategies as necessary to navigate the challenges posed by the current economic landscape.