Invesco CurrencyShares Japanese Yen Trust Reports Improved Net Comprehensive Loss of $435,228

Invesco CurrencyShares® Japanese Yen Trust reported a net comprehensive loss of $435,228 for the three months ended March 31, 2025, a slight improvement compared to a loss of $460,972 during the same period in 2024. The Trust did not generate any interest income during either period. Total expenses decreased to $435,228 from $460,972, primarily due to a reduction in the sponsor's fee, which rose to $435,228 from $305,557, while interest expenses on currency deposits were eliminated in the current period.

The Trust's weighted-average shares outstanding increased significantly to 7,349,444 from 4,954,396 year-over-year, reflecting a net increase in shares due to transactions. The balance of redeemable capital shares rose to $548,880,601 as of March 31, 2025, up from $390,617,304 at the end of the previous fiscal year. This increase was driven by the purchase of 2,450,000 shares during the quarter, offset by the redemption of 200,000 shares.

Operationally, the Trust's cash position improved, with cash at the end of the period reaching $549,055,814, compared to $339,708,146 a year earlier. The Trust experienced a net cash inflow from financing activities of $136,451,806, significantly higher than the $49,566,696 reported in the prior year. This increase was attributed to higher proceeds from share purchases, which totaled $151,202,890, compared to $65,278,857 in the previous year.

The Trust's performance was influenced by external market conditions, including fluctuations in the Japanese Yen against the U.S. dollar, which saw the Yen strengthen due to U.S. dollar weakness and safe-haven demand amid geopolitical tensions. The Trust's management noted that ongoing global tariff issues and U.S. recession concerns contributed to market volatility, impacting the Trust's net comprehensive income. Looking ahead, the Trust anticipates that these external factors will continue to affect its performance, particularly in relation to the value of the Japanese Yen and interest rates set by the Depository.

Invesco CurrencyShares® Japanese Yen Trust remains focused on its investment objective of reflecting the price of the Japanese Yen in U.S. dollars, while managing operational expenses through its sponsor's fee structure. The Trust does not expect to generate taxable income except for any interest income, if applicable, and continues to monitor market conditions closely to navigate potential risks associated with currency fluctuations and economic uncertainties.