Invesco CurrencyShares Swiss Franc Trust

Previous wording

During the three months ended March 31, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023 which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.

Current wording

During the three and six months ended June 30, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (Fed) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023, which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil, on the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.

Previous wording

USD – the Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts, supporting US yields – the pair was heavily pressured after the Swiss National Bank (“SNB”) became the first major central bank to start cutting its interest rates in March. Lower interest rates reduce the appeal of the country’s currency.

Current wording

The Swiss Franc (CHF/USD) posted a loss in the first half of 2024, with the pair down nearly 7%. While some of this was driven by gains in the US dollar – the Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts, supporting US treasury yields – the pair was heavily pressured after the Swiss National Bank (SNB) became the first major central bank to start cutting its interest rates in March. Lower interest rates reduce the appeal of the country’s currency.

Previous wording

The Swiss Franc (CHF/USD) posted a small gain in the first quarter of 2023 though prices were largely driven by USD moves. The USD fell sharply in January, helping the pair rally, as speculation for a dovish pivot in Fed rate hike plans grew with US economic data coming in weaker-than-expected. However, with the USD making a turnaround in February due to signs of a strong labor market and resilient inflation in the US, the currency pair depreciated. In March, the pair returned to positive territory as the USD once again weakened amid the turmoil in the US banking sector, renewing speculation that the Fed would slow down rate hikes amid the economic uncertainty. While Switzerland’s banking sector also took a hit following the collapse of Credit Suisse, the impact was limited given swift government intervention.

Current wording

The Swiss Franc (CHF/USD) posted a gain in the first half of 2023, with price action largely driven by dollar moves. The USD fell sharply in January, helping the pair rally, as speculation for a dovish pivot in Fed rate hike plans grew with US economic data coming in weaker than expected. However, with the dollar making a turnaround in February, due to signs of a strong labor market and resilient inflation in the US, the currency pair depreciated. In March, though, the pair returned to positive territory as the US dollar once again weakened amid the turmoil in the US banking sector, renewing speculation that the Fed would slow down rate hikes amid the economic uncertainty. While Switzerland’s banking sector also took a hit following the collapse of Credit Suisse, the impact was limited given swift government intervention. While the second quarter of 2023 followed largely the same theme, with the CHF bouncing back and forth on Fed-driven dollar moves, the pair also received support from rising safe-haven currency demand.

Previous wording

Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, slightly offset by improvements in the past several quarters, to the current interest rate of 0.25%, as set forth in the FXF Rate Chart above. As long as the Sponsor’s fee and the interest expense on currency deposits, if any, exceed interest income, the Trust will incur a net comprehensive loss.

Current wording

Additionally, the interest rate paid by the Depository has generally trended upward over the past year, slightly offset by decline in the recent quarters, to the current interest rate of 0.25%, as set forth in the FXF Rate Chart above. As long as the Sponsor’s fee and the interest expense on currency deposits, if any, exceed interest income, the Trust will incur a net comprehensive loss.