Invesco CurrencyShares® British Pound Sterling Trust reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The Trust's total assets decreased to $64.6 million from $86.0 million at the end of 2023, primarily due to a decline in British Pound Sterling deposits, which fell to $64.4 million from $85.7 million. Total liabilities also saw a substantial reduction, dropping to $19,462 from $45,126.
The Trust's redeemable capital shares at redemption value decreased to $64.6 million, down from $86.0 million, with the number of shares issued and outstanding reduced from 700,000 to 500,000. Shareholders’ equity mirrored this decline, totaling $64.6 million compared to $86.0 million previously.
For the three months ended September 30, 2024, total income was reported at $503,041, a decrease from $842,538 in the same period of 2023. Over the nine-month period, total income also fell to $1.76 million from $2.35 million year-over-year. Net comprehensive income for the three months ended September 30, 2024, was $446,074, down from $748,037 in 2023, while for the nine months, it decreased to $1.57 million from $2.04 million.
Earnings per share showed a slight increase, with basic and diluted earnings per share for the three months at $0.99, compared to $0.97 in the prior year. For the nine months, earnings per share rose to $2.99 from $2.35.
Cash flow from operating activities for the nine months ended September 30, 2024, was $1.67 million, down from $1.92 million in 2023. Distributions paid to shareholders also decreased to $1.59 million from $1.94 million. The Trust reported a net change in cash of $(21.3 million) for the nine months, slightly improved from $(21.8 million) in the previous year.
The Trust's investment strategy remains focused on reflecting the price of the British Pound Sterling in U.S. Dollars, with its assets primarily held in British Pounds Sterling deposits at JPMorgan Chase Bank, which currently earn an interest rate of 3.46% annually. The Trust is exposed to concentration risk due to fluctuations in the GBP/USD exchange rate.
Market conditions have influenced the Trust's performance, with the British Pound experiencing its strongest quarterly gain in Q3 2024 since Q4 2022, driven by a weaker U.S. dollar and positive economic indicators from the UK. In contrast, the GBP/USD faced challenges in Q3 2023 amid a stronger dollar and recession fears in the UK.
About Invesco CurrencyShares British Pound Sterling Trust
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