Invesco CurrencyShares Japanese Yen Trust

What they do

The Trust was formed on February 1, 2007 and its Shares began trading on the NYSE on February 13, 2007, moving to NYSE Arca on October 30, 2007. It issues Shares in 50,000-share Baskets in exchange for deposits of Japanese Yen and distributes Japanese Yen on redemption. The Trust holds only Japanese Yen and does not hold or use derivative products; it is a passive vehicle with no officers, directors or employees. Its only ordinary recurring expense is the Sponsor's fee, paid to Invesco Specialized Products, LLC, which also covers Trustee, listing, audit, printing and other administrative costs.

Revenue drivers

• Japanese Yen holdings (sole asset) — The Trust's entire value comes from the Japanese Yen it holds; the investment objective is for Shares to reflect the price in USD of the Japanese Yen plus accrued interest, if any, less expenses. Reported annual revenue is $0.00 in each year 2021 through 2025.
• Depository interest income — Japanese Yen is held at JPMorgan Chase Bank, N.A., London Branch, in a primary interest-bearing account and a secondary non-interest-bearing account. The interest rate in effect at December 31, 2025 was an annual nominal rate of 0.00%; the 10-Q states the rate has generally remained flat over the past year at 0.10%.
• Sponsor's fee (principal expense, not revenue) — The Sponsor's fee accrues daily at an annual nominal rate of 0.40% of the Japanese Yen in the Trust, excluding unpaid fees. The Trust incurred $2,394,370 in Sponsor's fees for the year ended December 31, 2025.
• Share creation and redemption activity — The Trust issues Baskets of 50,000 Shares for Japanese Yen deposits and redeems Baskets for Japanese Yen. The 10-K and 10-Q note that market conditions may affect the number of Shares created and redeemed.

Recent performance

Annual net income was negative in each year from 2021 through 2025: -$1.2M, -$1.1M, -$1.4M, -$1.6M and -$2.4M, respectively. Diluted EPS improved from -$0.52 in 2021 to -$0.25 in 2025. Quarterly revenue was $0.00 for 2025-09-30, 2025-12-31 and 2026-03-31, and $16,883 for 2026-06-30. At 2026-06-30, total assets were $429.3M, cash and equivalents $429.2M, and total liabilities $141,628. The Trust paid no distributions during the year ended December 31, 2025. The 10-Q states the yen weakened against the USD in the second quarter and first half of 2026 as higher U.S. rates outweighed the BoJ's move to a 1.00% policy rate.

Strategy

The Trust is a passive investment vehicle; it does not engage in activities designed to profit from or ameliorate losses caused by changes in the price of the Japanese Yen. Its stated objective is for the Shares to reflect the price in USD of the Japanese Yen plus accrued interest, if any, less the Trust's expenses. Japanese Yen held by the Trust will be sold only to pay Trust expenses, on termination and liquidation, or as required by law or regulation. The Sponsor oversees the Trustee and principal service providers, and the only ordinary Trust expense is the Sponsor's fee. The Sponsor bears most Trust expenses in exchange for that fee.

Risks

• Japanese Yen price risk — The value of the Shares relates directly to the value of the Japanese Yen held by the Trust, and fluctuations in the JPY/USD exchange rate could materially and adversely affect the value of the Shares.
• Currency volatility and unpredictability — Foreign exchange rates can be volatile and difficult to predict due to changing supply and demand, monetary policy actions, trade restrictions, government intervention and currency devaluations.
• Expenses may exceed interest earned — If interest earned by the Trust does not exceed the Trust's expenses, the Trustee withdraws Japanese Yen from the Trust to pay excess expenses, reducing the amount of Japanese Yen held; the Trust incurs a net comprehensive loss when the Sponsor's fee and any interest expense exceed interest income.
• No insulation from volatility — The 10-K states that investing in the Shares does not insulate investors from certain risks, including price volatility.

Outlook

The 10-K MD&A says the Sponsor is not aware of any known trends, demands, commitments, events or uncertainties reasonably likely to result in material changes to the Trust's liquidity and capital resources needs, and that the Trust has no material cash requirements as of the end of the latest fiscal period. The Trust will incur a net comprehensive loss as long as the Sponsor's fee and any interest expense on currency deposits exceed interest income. Management attributes recent results and share creation/redemption activity to market volatility from global tariff gyrations, U.S. economic uncertainty, Fed policy expectations and geopolitical concerns. The 10-Q describes continued U.S. rate advantage over Japan and BoJ policy normalization to 1.00% in June 2026 as factors in recent yen weakness.