Invesco CurrencyShares Swiss Franc Trust

ECONOMIC CONDITIONS

The value of the Shares relates directly to the value of the Swiss Francs held by the Trust. Fluctuations in the price of the Swiss Franc could materially and adversely affect the value of the Shares.

The Shares are designed to reflect the price of the Swiss Franc, plus accumulated interest, if any, less the Trust’s expenses. Several factors may affect the price of the Swiss Franc, including:

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Sovereign debt levels and trade deficits;

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Currency exchange rates;

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In addition, the Swiss Franc may not maintain its long-term value in terms of purchasing power in the future. When the price of the Swiss Franc declines, the Sponsor expects the price of a Share to decline as well.

The Swiss Franc/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 from time to time intervene in the currency markets, directly and by regulation, in order to influence prices directly. These events and actions are unpredictable. The resulting volatility in the Swiss Franc/USD exchange rate could materially and adversely affect the performance of the Shares.

If interest earned by the Trust does not exceed the Trust’s expenses, the Trustee will withdraw Swiss Francs from the Trust to pay these excess expenses, which will reduce the amount of Swiss Francs represented by each Share on an ongoing basis and may result in adverse tax consequences for Shareholders.

Each outstanding Share represents a fractional, undivided interest in the Swiss Francs held by the Trust. Recently, the amount of interest earned by the Trust has not exceeded the Trust’s expenses; accordingly, the Trustee has been required to withdraw Swiss Francs from the Trust to pay these excess expenses. As long as the amount of interest earned does not exceed expenses, the amount of Swiss Francs represented by each Share will gradually decline over time. This is true even if additional Shares are issued in exchange for additional deposits of Swiss Francs into the Trust, as the amount of Swiss Francs required to create Shares will proportionately reflect the amount of Swiss Francs represented by the Shares outstanding at the time of creation. Assuming a constant Swiss Franc price, if expenses exceed interest earned, the trading price of the Shares will gradually decline relative to the price of the Swiss Franc as the amount of Swiss Francs represented by the Shares gradually declines. In this event, the Shares will only maintain their original price if the price of the Swiss Franc increases. There is no guarantee that interest earned by the Trust in the future will exceed the Trust’s expenses.

Investors should be aware that a gradual decline in the amount of Swiss Francs represented by the Shares may occur regardless of whether the trading price of the Shares rises or falls in response to changes in the price of the Swiss Franc. The estimated ordinary operating expenses of the Trust, which accrue daily, are described in “Business – The Trust – Trust Expenses.”

If the Trust incurs expenses in USD, the Trust would be required to sell Swiss Francs to pay these expenses. The sale of the Trust’s Swiss Francs to pay expenses in USD at a time of low Swiss Franc price could adversely affect the value of the Shares.

The Trustee will sell Swiss Francs held by the Trust to pay Trust expenses, if any, incurred in USD, irrespective of then-current Swiss Franc prices. The Trust is not actively managed and no attempt will be made to buy or sell Swiss Francs to protect against or to take advantage of fluctuations in the price of the Swiss Franc. Consequently, if the Trust incurs expenses in USD, the Trust’s Swiss Francs may be sold at a time when the Swiss Franc price is low, resulting in a negative effect on the value of the Shares.

Substantial sales of Swiss Francs by the official sector could adversely affect an investment in the Shares.

The official sector consists of central banks, other governmental agencies and multi-lateral institutions that buy, sell and hold Swiss Francs as part of their reserve assets. The official sector holds a significant amount of Swiss Francs that can be mobilized in the open market. In the event that future economic, political or social conditions or pressures require members of the official sector to sell their Swiss Francs simultaneously or in an uncoordinated manner, the demand for Swiss Francs might not be sufficient to accommodate the sudden increase in the supply of Swiss Francs to the market. Consequently, the price of the Swiss Franc could decline, which would adversely affect an investment in the Shares.

REGULATORY MATTERS

There have been ongoing discussions and commentary regarding potential significant changes to United States trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may increase the volatility of foreign exchange rates, including the Swiss Franc/USD exchange rate. The resulting volatility could materially and adversely affect the performance of the Shares.

Neither the Shares nor the Deposit Accounts and the Swiss Francs deposited in them are deposits insured against loss by the FDIC, any other federal agency of the United States or the Financial Services Compensation Scheme of England.

If the Depository becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant. In addition, in the event of the insolvency of the Depository, the U.S. bank of which it is a branch or any local cash correspondent holding the currency on deposit for the benefit of the Trust, there may be a delay and costs incurred in recovering the Swiss Francs held in the Deposit Accounts.

Swiss Francs deposited in the Deposit Accounts by an Authorized Participant are commingled with Swiss Francs deposited by other Authorized Participants and are held by the Depository in either the primary deposit account or the secondary deposit account of the Trust. Swiss Francs held in the Deposit Accounts are not segregated from the Depository’s other assets.

The Trust has no proprietary rights in or to any specific Swiss Francs held by the Depository and will be an unsecured creditor of the Depository with respect to the Swiss Francs held in the Deposit Accounts in the event of the insolvency of the Depository or the U.S. bank of which it is a branch. In the event the Depository, the U.S. bank of which it is a branch or any local cash correspondent holding the currency on deposit for the benefit of the Trust becomes insolvent, the Depository’s assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant for the amount of Swiss Francs deposited by the Trust or the Authorized Participant and, in such event, the Trust and any Authorized Participant will generally have no right in or to assets other than those of the Depository.

In the case of insolvency of the Depository or JPMorgan Chase Bank, N.A., the U.S. bank of which the Depository is a branch, a liquidator may seek to freeze access to the Swiss Francs held in all accounts by the Depository, including the Deposit Accounts. In the case of insolvency of a local cash correspondent, a liquidator may seek to freeze access to the Swiss Francs held in all accounts by such local cash correspondent, including the Deposit Accounts held by such cash correspondent. The Trust and the Authorized Participants could incur expenses and delays in connection with asserting their claims. These problems would be exacerbated by the fact that the Deposit Accounts are not held in the U.S. but instead are held at the London branch of a U.S. national bank or with a local cash correspondent, where they are subject to English or Swiss insolvency law. Further, under U.S. law, in the case of the insolvency of JPMorgan Chase Bank, N.A., the claims of creditors in respect of accounts (such as the Trust’s Deposit Accounts) that are maintained with an overseas branch of JPMorgan Chase Bank, N.A. or with a local cash correspondent will be subordinate to claims of creditors in respect of accounts maintained with JPMorgan Chase Bank, N.A. in the U.S., greatly increasing the risk that the Trust and the Trust’s beneficiaries would suffer a loss.

The occurrence of any one of several events would either require the Trust to terminate or permit the Sponsor to terminate the Trust. For example, if the Depository were to resign or be removed, then the Sponsor would be required to terminate the Trust. Shareholders tendering their Shares within 90 days of the Trust’s termination will receive the amount of Swiss Francs represented by their Shares. Shareholders may incur significant fees if they choose to convert the Swiss Francs they receive to USD.

DEPOSITARY TRUST AGREEMENT

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