Invesco CurrencyShares Swiss Franc (FXF) Q3: $(0.16) EPS, +2.1M net shares YTD
Rhea-AI Filing Summary
Invesco CurrencyShares Swiss Franc Trust (FXF) reported Q3 2025 results. Swiss Franc deposits (its primary asset) were
The Trust recorded a quarterly net comprehensive loss of
Flows remained active: during the quarter the Trust redeemed 1,100,000 shares and purchased 150,000; year-to-date, purchases of 3,700,000 and redemptions of 1,600,000 resulted in a net increase of 2,100,000 shares. No distributions were made in the quarter. Management highlighted exchange-rate volatility and U.S. tariff/trade policy as ongoing risk factors. Disclosure controls were deemed effective.
Positive
- None.
Negative
- None.
Insights
FXF’s Q3 loss reflects fees and negative CHF deposit rates amid active creations/redemptions.
FXF holds Swiss Franc cash deposits, so its USD value tracks the CHF/USD rate less expenses. Assets rose to
Because the Trust is a grantor trust, it does not seek to generate profit; performance flows from CHF/USD and deposit rates. The filing notes tariff/trade policy and FX volatility as factors that can affect NAV and flows. The Trust does not use derivatives, concentrating risk in CHF value and the single depository relationship.
Key mechanics to watch include the daily NAV methodology tied to the WM 4:00 PM London Closing Spot Rate, monthly expense accruals, and whether negative rates persist. Subsequent filings may detail any changes in deposit rates or distribution activity.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM
For the quarterly period ended
or
For the transition period from ____ to ____
Commission File Number
Sponsored by Invesco Specialized Products, LLC
(Exact name of registrant as specified in its charter)
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Accelerated filer |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of outstanding Redeemable Capital Shares as of September 30, 2025:
INVESCO CURRENCYSHARES® SWISS FRANC TRUST
QUARTER ENDED SEPTEMBER 30, 2025
TABLE OF CONTENTS
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PART I. |
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FINANCIAL INFORMATION |
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1 |
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ITEM 1. |
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Financial Statements |
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Notes to Unaudited Financial Statements |
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6 |
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ITEM 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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ITEM 3. |
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Quantitative and Qualitative Disclosures About Market Risk |
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ITEM 4. |
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Controls and Procedures |
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PART II. |
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OTHER INFORMATION |
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Item 1. |
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Legal Proceedings |
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Item 1A. |
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Risk Factors |
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Item 2. |
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Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 3. |
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Defaults Upon Senior Securities |
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Item 4. |
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Mine Safety Disclosures |
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Item 5. |
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Other Information |
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Item 6. |
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Exhibits |
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17 |
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SIGNATURES |
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PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
Invesco CurrencyShares® Swiss Franc Trust
Statements of Financial Condition
September 30, 2025 and December 31, 2024
(Unaudited)
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September 30, 2025 |
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December 31, 2024 |
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Assets |
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Swiss Franc deposits, interest bearing |
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$ |
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$ |
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Receivable from accrued interest |
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Total Assets |
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$ |
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$ |
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Liabilities |
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$ |
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$ |
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Accrued interest expense on currency deposits |
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Total Liabilities |
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$ |
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$ |
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Redeemable Capital Shares and Shareholders’ Equity |
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Redeemable Capital Shares, at redemption value, par value, |
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Shareholders’ Equity: |
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Retained Earnings |
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Total Liabilities, Redeemable Capital Shares and Shareholders’ Equity |
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$ |
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$ |
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See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.
1
Invesco CurrencyShares ® Swiss Franc Trust
Statements of Comprehensive Income
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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Income |
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Interest Income |
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$ |
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$ |
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$ |
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$ |
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Total Income |
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Expenses |
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Sponsor’s fee |
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$ |
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$ |
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$ |
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$ |
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Interest Expense on currency deposits |
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Total Expenses |
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Net Comprehensive Income (Loss) |
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$ |
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$ |
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$ |
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$ |
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Basic and Diluted Earnings (Loss) per Share |
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$ |
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$ |
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$ |
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$ |
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Weighted-average Shares Outstanding |
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See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.
2
Invesco CurrencyShares® Swiss Franc Trust
Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares
For the Three Months Ended September 30, 2025 and 2024
(Unaudited)
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Retained Earnings |
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Total Shareholders’ Equity |
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Shares |
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Redeemable Capital Shares |
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Balance at June 30, 2025 |
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$ |
— |
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$ |
— |
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$ |
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Purchases of Shares |
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— |
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— |
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Redemption of Shares |
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— |
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— |
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Net Increase (Decrease) due to Share Transactions |
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— |
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— |
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Distributions |
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— |
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— |
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— |
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Net Comprehensive Income (Loss) |
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— |
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Adjustment of Redeemable Capital Shares to Redemption Value related to Retained Earnings |
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Adjustment of Redeemable Capital Shares to Redemption Value |
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— |
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Balance at September 30, 2025 |
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$ |
— |
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$ |
— |
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$ |
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Retained Earnings |
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Total Shareholders’ Equity |
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Shares |
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Redeemable Capital Shares |
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Balance at June 30, 2024 |
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$ |
— |
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$ |
— |
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$ |
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Purchases of Shares |
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— |
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— |
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Redemption of Shares |
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— |
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— |
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— |
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— |
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Net Increase (Decrease) due to Share Transactions |
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— |
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— |
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Distributions |
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— |
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— |
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— |
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Net Comprehensive Income (Loss) |
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( |
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— |
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Adjustment of Redeemable Capital Shares to Redemption Value related to Retained Earnings |
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Adjustment of Redeemable Capital Shares to Redemption Value |
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— |
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— |
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Balance at September 30, 2024 |
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$ |
— |
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$ |
— |
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$ |
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See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.
3
Invesco CurrencyShares® Swiss Franc Trust
Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
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Retained Earnings |
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Total Shareholders’ Equity |
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Shares |
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Redeemable Capital Shares |
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Balance at December 31, 2024 |
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$ |
— |
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$ |
— |
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$ |
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Purchases of Shares |
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— |
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— |
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Redemption of Shares |
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— |
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— |
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( |
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Net Increase (Decrease) due to Share Transactions |
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— |
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— |
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Distributions |
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— |
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— |
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— |
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Net Comprehensive Income (Loss) |
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( |
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— |
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Adjustment of Redeemable Capital Shares to Redemption Value related to Retained Earnings |
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Adjustment of Redeemable Capital Shares to Redemption Value |
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— |
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— |
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Balance at September 30, 2025 |
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$ |
— |
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$ |
— |
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$ |
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Retained Earnings |
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Total Shareholders’ Equity |
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Shares |
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Redeemable Capital Shares |
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Balance at December 31, 2023 |
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$ |
— |
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$ |
— |
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$ |
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Purchases of Shares |
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— |
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— |
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Redemption of Shares |
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— |
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— |
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( |
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( |
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Net Increase (Decrease) due to Share Transactions |
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— |
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— |
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Distributions |
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— |
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Net Comprehensive Income (Loss) |
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— |
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Adjustment of Redeemable Capital Shares to Redemption Value related to Retained Earnings |
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Adjustment of Redeemable Capital Shares to Redemption Value |
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— |
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— |
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Balance at September 30, 2024 |
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$ |
— |
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$ |
— |
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$ |
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See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.
4
Invesco CurrencyShares® Swiss Franc Trust
Statements of Cash Flows
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
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Nine Months Ended September 30, |
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2025 |
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2024 |
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Cash flows from operating activities |
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Net Comprehensive Income (Loss) |
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$ |
( |
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$ |
( |
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Adjustments to reconcile net comprehensive |
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Change in operating assets and liabilities: |
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Receivable from accrued interest |
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Accrued interest expense |
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Accrued Sponsor's fee |
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Net cash provided by (used in) operating activities |
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Cash flows from financing activities |
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Distributions paid to shareholders |
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— |
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Proceeds from purchases of redeemable capital Shares |
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Redemptions of redeemable capital Shares |
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( |
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Increase (decrease) in payable for Swiss Franc deposits overdrawn |
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— |
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Net cash provided by (used in) financing activities |
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Effect of exchange rate on cash |
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Net change in cash |
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Cash at beginning of period |
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Cash at end of period |
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$ |
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$ |
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Supplemental disclosure of cash flow information |
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Cash paid for interest |
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$ |
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$ |
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See accompanying Notes to Unaudited Financial Statements which are an integral part of the financial statements.
5
Invesco CurrencyShares® Swiss Franc Trust
Notes to Unaudited Financial Statements
September 30, 2025
Note 1 - Background
On September 28, 2017, Guggenheim Capital, LLC (“Guggenheim”) and Invesco Ltd. entered into a Transaction Agreement (the “Transaction Agreement”), pursuant to which Guggenheim agreed to transfer all of the membership interests of Guggenheim Specialized Products, LLC (the “Sponsor”) to Invesco Capital Management LLC (“Invesco Capital Management”).
Note 2 - Organization
The Invesco CurrencyShares® Swiss Franc Trust (the “Trust”) was formed under the laws of the State of New York on
The investment objective of the Trust is for the Trust’s shares (the “Shares”) to reflect the price in U.S. Dollars (“USD”) of the Swiss Franc plus accrued interest, if any, less the Trust’s expenses and liabilities. The Shares are intended to provide investors with a simple, cost-effective means of gaining investment benefits similar to those of holding Swiss Francs. The Trust’s assets primarily consist of Swiss Francs on demand deposit in
This Quarterly Report (the “Report”) covers the three and nine months ended September 30, 2025 and 2024. The accompanying unaudited financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all material adjustments, consisting only of normal recurring adjustments, considered necessary for a fair statement of the interim period financial statements have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 26, 2025.
Note 3 – Summary of Significant Accounting Policies
A. Basis of Presentation
The financial statements of the Trust have been prepared using U.S. GAAP.
B. Accounting Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates by a significant amount. In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are issued.
C. Segment Reporting
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D. Foreign Currency Translation
For Net Asset Value (“NAV”) calculation purposes, Swiss Franc deposits (cash) are translated at the Closing Spot Rate, which is the Swiss Franc/USD exchange rate as determined and published by The WM Company at 4:00 PM (London time / London fixing) on each day that NYSE Arca, Inc. (“NYSE Arca”) is open for regular trading.
E. Interest Income
F. Distributions
To the extent that the interest earned by the Trust, if any, exceeds the sum of the Sponsor’s fee for the prior month plus other Trust expenses, if any, the Trust will distribute, as a dividend (herein referred to as dividends or distributions), the excess interest earned in Swiss Francs effective on the first business day of the subsequent month. The Trustee (as defined below) will direct that the excess Swiss Francs be converted into USD at the prevailing market rate and the Trustee will distribute the USD as promptly as practicable to Shareholders on a pro-rata basis (in accordance with the number of Shares that they own).
The table below shows distributions per Share and in total for the periods presented:
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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Distributions per Share |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
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Distributions paid |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
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G. Routine Operational, Administrative and Other Ordinary Expenses
The Sponsor is responsible for all routine operational, administrative and other ordinary expenses of the Trust, including, but not limited to, the Trustee’s monthly fee, NYSE Arca listing fees, SEC registration fees, typical maintenance and transaction fees of the Depository, printing and mailing costs, audit fees and expenses, up to $
H. Non-Recurring Fees and Expenses
In certain cases, the Trust will pay for some expenses in addition to the Sponsor’s fee. These exceptions include expenses not assumed by the Sponsor (i.e., expenses other than those identified in the preceding paragraph), expenses resulting from negative interest rates, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Trustee or the Sponsor on behalf of the Trust or action taken by the Trustee or the Sponsor to protect the Trust or the interests of Shareholders, indemnification of the Sponsor under the Depositary Trust Agreement, audit fees and legal expenses in excess of $
I. Federal Income Taxes
The Trust is treated as a “grantor trust” for federal income tax purposes and, therefore,
Shareholders generally will be treated, for U.S. federal income tax purposes, as if they directly owned a pro-rata share of the assets held in the Trust. Shareholders also will be treated as if they directly received their respective pro-rata portion of the Trust’s income, if any, and as if they directly incurred their respective pro-rata portion of the Trust’s expenses. The acquisition of Shares by a U.S. Shareholder as part of a creation of a Basket will not be a taxable event to the Shareholder.
The Sponsor’s fee accrues daily and is payable monthly. For U.S. federal income tax purposes, an accrual-basis U.S. Shareholder generally will be required to take into account as an expense its allocable portion of the USD-equivalent of the amount of the Sponsor’s fee that is accrued on each day, with such USD-equivalent being determined by the currency exchange rate that is in
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effect on the respective day. To the extent that the currency exchange rate on the date of payment of the accrued amount of the Sponsor’s fee differs from the currency exchange rate in effect on the day of accrual, the U.S. Shareholder will recognize a currency gain or loss for U.S. federal income tax purposes.
The Trust does not expect to generate taxable income except for interest income (if any) and gain (if any) upon the sale of Swiss Francs. A non-U.S. Shareholder generally will not be subject to U.S. federal income tax with respect to gain recognized upon the sale or other disposition of Shares, or upon the sale of Swiss Francs by the Trust, unless: (1) the non-U.S. Shareholder is an individual and is present in the United States for
Note 4 - Swiss Franc Deposits
Swiss Franc principal deposits are held in a Swiss Franc-denominated, interest-bearing demand account. The interest rate in effect as of September 30, 2025 was an annual nominal rate of -
Net interest, if any, associated with creation and redemption activity is held in a Swiss Franc-denominated non-interest-bearing account, and any balance is distributed in full as part of the monthly income distributions, if any.
Note 5 - Concentration Risk
All of the Trust’s assets are Swiss Francs, which creates a concentration risk associated with fluctuations in the price of the Swiss Franc. Accordingly, a decline in the Swiss Franc to USD exchange rate will have an adverse effect on the value of the Shares. Factors that may have the effect of causing a decline in the price of the Swiss Franc include national debt levels and trade deficits, domestic and foreign inflation rates, domestic and foreign interest rates, investment and trading activities of institutions and global or regional political, economic or financial events and situations. Substantial sales of Swiss Francs by the official sector (central banks, other governmental agencies and related institutions that buy, sell and hold Swiss Francs as part of their reserve assets) could adversely affect an investment in the Shares.
All of the Trust’s Swiss Francs are held by the Depository. Accordingly, a risk associated with the concentration of the Trust’s assets in accounts held by a single financial institution exists and increases the potential for loss by the Trust and the Trust’s beneficiaries in the event that the Depository becomes insolvent.
Note 6 - Service Providers and Related Party Agreements
The Trustee
The Bank of New York Mellon (the “Trustee”), a banking corporation with trust powers organized under the laws of the State of New York, serves as the Trustee. The Trustee is responsible for the day-to-day administration of the Trust, including keeping the Trust’s operational records.
The Sponsor
The Sponsor of the Trust generally oversees the performance of the Trustee and the Trust’s principal service providers. The Sponsor is Invesco Specialized Products, LLC, a Delaware limited liability company and a related party of the Trust. The Trust pays the Sponsor a Sponsor’s fee, which accrues daily at an annual nominal rate of
8
Note 7 - Share Purchases and Redemptions
Shares are issued and redeemed continuously in Baskets in exchange for Swiss Francs. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. Only Authorized Participants (as defined below) may place orders to create and redeem Baskets. An Authorized Participant is a Depository Trust Company (“DTC”) participant that is a registered broker-dealer or other institution eligible to settle securities transactions through the book-entry facilities of the DTC and which has entered into a contractual arrangement with the Trust and the Sponsor governing, among other matters, the creation and redemption process. Authorized Participants may redeem their Shares at any time in Baskets.
Due to expected continuing creations and redemptions of Baskets and the
The Trustee calculates the Trust’s NAV each business day. To calculate the NAV, the Trustee subtracts the Sponsor’s accrued fee through the previous day from the Swiss Francs held by the Trust (including all unpaid interest, if any, accrued through the preceding day) and calculates the value of the Swiss Francs in USD based upon the Closing Spot Rate. If, on a particular evaluation day, the Closing Spot Rate has not been determined and announced by 6:00 PM (London time), then the most recent Closing Spot Rate will be used to determine the NAV of the Trust unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate to use as the basis for the valuation. If the Trustee and the Sponsor determine that the most recent Closing Spot Rate is not an appropriate basis for valuation of the Trust’s Swiss Francs, they will determine an alternative basis for the valuation. The Trustee also determines the NAV per Share, which equals the NAV of the Trust, divided by the number of outstanding Shares. Shares deliverable under a purchase order are considered outstanding for purposes of determining NAV per Share; Shares deliverable under a redemption order are not considered outstanding for this purpose.
Note 8 - Commitments and Contingencies
The Trust’s organizational documents provide for the Trust to indemnify the Sponsor and any affiliate of the Sponsor that provides services to the Trust to the maximum extent permitted by applicable law, subject to certain exceptions for disqualifying conduct by the Sponsor or such an affiliate. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Further, the Trust has not had prior claims or losses pursuant to these contracts. Accordingly, the Sponsor expects the risk of loss to be remote.
9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Cautionary Statement Regarding Forward-Looking Information
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “outlook” and “estimate” and other similar words. Forward-looking statements are based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Various factors may cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include fluctuations in the price of the Swiss Franc, as the value of the Shares relates directly to the value of the Swiss Francs held by the Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent Annual Report on Form 10-K, together with the modified risk factor included in Item 1A of this report, for a description of other risks and uncertainties that may affect an investment in the Shares.
Neither Invesco Specialized Products, LLC (the “Sponsor”) nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report. The forward-looking statements are made as of the date of this report, and will not be revised or updated to reflect actual results or changes in the Sponsor’s expectations or predictions.
Overview/Introduction
The Invesco CurrencyShares® Swiss Franc Trust (the “Trust”) is a grantor trust that was formed on June 8, 2006. The Shares began trading on the New York Stock Exchange under the ticker symbol “FXF” on June 26, 2006. The primary listing of the Shares was transferred to NYSE Arca, Inc. (“NYSE Arca”) on October 30, 2007. The Trust issues shares (the “Shares”) in blocks of 50,000 (a “Basket”) in exchange for deposits of Swiss Francs and distributes Swiss Francs in connection with the redemption of Baskets.
The investment objective of the Trust is for the Shares to reflect the price in USD of the Swiss Franc plus accrued interest, if any, less the expenses of the Trust’s operations. The Shares are intended to offer investors an opportunity to participate in the market for the Swiss Franc through an investment in securities. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding the Swiss Franc. The Shares are bought and sold on NYSE Arca like any other exchange-listed security. The Shares are backed by the assets of the Trust, which does not hold or use derivative products. The Trust is a passive investment vehicle and does not have any officers, directors or employees. The Trust does not engage in any activities designed to obtain profit from, or ameliorate losses caused by, changes in the price of the Swiss Franc. Investing in the Shares does not insulate the investor from certain risks, including price volatility. The value of the holdings of the Trust is reported on the Trust’s website, www.invesco.com/etfs, each business day.
Definition of Net Asset Value
The Trustee calculates, and the Sponsor publishes, the Trust’s Net Asset Value (“NAV”) each business day. To calculate the NAV, the Trustee adds to the amount of Swiss Francs in the Trust at the end of the preceding day accrued but unpaid interest, if any, Swiss Francs receivable under pending purchase orders and the value of other Trust assets, and subtracts the accrued but unpaid Sponsor’s fee, Swiss Francs payable under pending redemption orders and other Trust expenses and liabilities, if any. The NAV is expressed in USD based on the Swiss Franc/USD exchange rate as determined by The WM Company at 4:00 PM (London time / London fixing) (the “Closing Spot Rate”) on each day that NYSE Arca is open for regular trading. If, on a particular evaluation day, the Closing Spot Rate has not been determined and announced by 6:00 PM (London time), then the most recent Closing Spot Rate is used to determine the NAV of the Trust unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate to use as the basis for the valuation.
The Trustee also determines the NAV per Share, which equals the NAV of the Trust divided by the number of outstanding Shares. The NAV of the Trust and the NAV per Share are published by the Sponsor on each day that NYSE Arca is open for regular trading and are posted on the Trust’s website, www.invesco.com/etfs.
10
Movements in the Price of the Swiss Franc
The investment objective of the Trust is for the Shares to reflect the price in USD of the Swiss Franc plus accrued interest, if any, less the expenses of the Trust’s operations. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding Swiss Francs. Each outstanding Share represents a proportional interest in the Swiss Francs held by the Trust. The following chart provides recent trends on the price of the Swiss Franc. The chart illustrates movements in the price of the Swiss Franc in USD and is based on the Closing Spot Rate:
NAV per Share; Valuation of the Swiss Franc
The following chart illustrates the movement in the price of the Shares based on (1) NAV per Share, (2) the “bid” and “ask” midpoint offered on NYSE Arca and (3) the Closing Spot Rate, expressed as a multiple of 100 Swiss Francs:
11
12
Liquidity and Capital Resources
The Trust does not have any material cash requirements as of the end of the latest fiscal period. The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs. The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest. Interest on the primary deposit account, if any, accrues daily and is paid monthly. The interest rate in effect as of September 30, 2025 was an annual nominal rate of -0.15%. The following chart provides the daily rate paid by the Depository since September 30, 2020:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s fee. Each month the Depository deposits into the secondary deposit account accrued but unpaid interest, if any, and the Trustee withdraws Swiss Francs from the secondary deposit account to pay the accrued Sponsor’s fee for the previous month plus other Trust expenses (including, without limitation, expenses resulting from negative interest rates), if any. When the interest deposited, if any, exceeds the sum of the Sponsor’s fee for the prior month plus other Trust expenses, if any, the Trustee converts the excess into USD at the prevailing market rate and distributes the USD as promptly as practicable to Shareholders on a pro-rata basis (in accordance with the number of Shares that they own). The Trust did not make any distributions during the quarter ended September 30, 2025.
Critical Accounting Estimates
The financial statements and accompanying notes are prepared in accordance with U.S. GAAP. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 26, 2025.
There were no material estimates, which involve a significant level of estimation uncertainty and had or are reasonably likely to have had a material impact on the Trust’s financial condition, used in the preparation of these financial statements.
13
Results of Operations
During the three and nine months ended September 30, 2025 and 2024, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations and mounting U.S. economic uncertainty for 2025, and expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for both 2024 and 2025, which are considered to be unusual or infrequent events. Although the full and direct impact of global tariffs, U.S. economic concerns, Fed easing expectations and rising geopolitical tensions, on the Trust's net comprehensive income (loss) during the three and nine months ended September 30, 2025 and 2024, 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.
The Swiss Franc (CHF/USD) was mostly rangebound but closed the third quarter of 2025 with a narrow loss. The franc was supported by continued demand for safe haven assets and became the favored haven currency amid turbulence in the U.S. dollar and the Japanese yen. However, the franc fell after the U.S. imposed a tariff rate of 39% on Switzerland and the leaders failed to reach a trade deal. Pharmaceuticals (the main Swiss export to the U.S.) was given an exemption, but sentiment remained bearish. While the franc pared some losses after the Swiss National Bank (SNB) decided to hold benchmark rates steady in September, it remained vulnerable to fears that the SNB would employ policies that would drive further depreciation. The tailwind from USD weakness also subsided in the third quarter, with the greenback gaining slightly.
The Swiss Franc (CHF/USD) ended the third quarter of 2024 with strong gains. While partially due to U.S. dollar weakness – the Fed officially kicked off its easing cycle in September – the Swiss Franc is generally also seen as a safe-haven currency due to its strong economy. Thus, it benefitted from the selloff in the U.S. equity market at the end of July into August, U.S. election uncertainty, spiking geopolitical tensions in the Middle East, and briefly, reignited recession concerns in the U.S. due to
disappointing labor data.
The Swiss Franc (CHF/USD) delivered strong gains year-to-date through the third quarter of 2025, supported by ongoing U.S. dollar weakness and steady demand for safe-haven assets amid heightened global uncertainty. Despite some setbacks from the uncertainty around the impact of tariffs, the franc has remained the safe-haven currency of choice. In the first quarter, the franc benefited from rising concerns about a U.S. recession and stagflation, which triggered a sharp sell-off in risk assets and pushed investors toward more stable currencies like the franc. That momentum carried into the second quarter, as confidence in U.S. markets continued to decline. However, the trend slowed in the third quarter as the greenback bounced back slightly.
The Swiss Franc (CHF/USD) posted a slight loss in the first three quarters of 2024. U.S. dollar strength in the first and second quarters due to the Fed’s higher-for-longer rhetoric was the overarching headwind. However, the Swiss National Bank (SNB) was also the first major central bank to start cutting its interest rates in March; lower interest rates reduce the appeal of the country’s currency. That said, gains from the third quarter helped erase most of earlier losses. Not only did the Fed and many other global central banks begin their rate easing cycle but the pair also benefitted from increasing safe haven demand due to geopolitical tension, and U.S. economic and equity market turmoil.
Additionally, the interest rate paid by the Depository has generally trended downward over the past year with the current interest rate of -0.15%, 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.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Except as described above with respect to fluctuations in the Swiss Franc/USD exchange rate and changes in the nominal annual interest rate paid by the Depository on Swiss Francs held by the Trust, the Trust is not subject to market risk. The Trust does not hold securities and does not invest in derivative instruments.
Item 4. Controls and Procedures.
Under the supervision and with the participation of the management of the Sponsor, including Brian Hartigan, its Principal Executive Officer, and Kelli Gallegos, its Principal Financial and Accounting Officer, Investment Pools, the Trust carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report, and, based upon that evaluation, Brian Hartigan, the Principal Executive Officer of the Sponsor, and Kelli Gallegos, the Principal Financial and Accounting Officer, Investment Pools, of the Sponsor, concluded that the Trust’s disclosure controls and procedures were effective to provide reasonable assurance that information the Trust is required to disclose in the reports that it files or submits with the Securities and Exchange Commission (the “SEC”) under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that information
14
required to be disclosed by the Trust in the reports that it files or submits under the Exchange Act is accumulated and communicated to management of the Sponsor, including its Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There has been no change in internal control over financial reporting (as defined in the Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the Trust’s quarter ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
15
PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
Not applicable.
Item 1A. Risk Factors.
Except for the modified risk factor set forth below, there have been no material changes from risk factors as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 26, 2025.
Regulatory Matters
Changes to United States tariff and trade policies have increased the volatility of foreign exchange rates and may continue to do so. This volatility could materially and adversely affect the performance of the Shares.
The United States, under the Trump administration, has implemented significant tariff increases on imports from a large number of countries, affecting a broad array of goods, and has signaled that additional tariffs may be imposed. These actions are part of a broader shift in U.S. trade policy that has at times been difficult to predict. The potential for further escalation, including the imposition of new or higher tariffs with limited notice, has contributed to increased uncertainty in global markets. In response, other countries, including China, have announced retaliatory measures. While some tariff reductions have been implemented pursuant to temporary arrangements between the United States and various trading partners, such measures remain subject to reversal. These developments have contributed to increased volatility in foreign exchange markets, including fluctuations in the USD/Swiss Franc exchange rate. Sustained or increased volatility could materially and adversely affect the performance of the Shares.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(a) There have been no unregistered sales of Shares. No Shares are authorized for issuance by the Trust under equity compensation plans.
(b) Not applicable.
(c) Although the Trust does not redeem Shares directly from its shareholders, the Trust, from time to time, redeems Baskets from Authorized Participants. During the three months ended September 30, 2025 the Trust’s redemptions of Baskets from Authorized Participants, if any, are provided in the table below:
Period of Redemption |
|
Total Number |
|
|
Average Price |
|
||
July 1, 2025 to July 31, 2025 |
|
|
900,000 |
|
|
$ |
110.52 |
|
August 1, 2025 to August 31, 2025 |
|
|
200,000 |
|
|
$ |
109.94 |
|
September 1, 2025 to September 30, 2025 |
|
|
— |
|
|
$ |
— |
|
Total |
|
|
1,100,000 |
|
|
$ |
110.42 |
|
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
During the period covered by this Quarterly Report,
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Item 6. Exhibits.
Exhibit No. |
Description |
|
|
3.1 |
Certificate of Formation of the Sponsor dated September 14, 2005, incorporated herein by reference to Exhibit 3.1 to the Registration Statement on Form S-1/A (File number 333 132364) filed by the Trust on June 9, 2006. |
|
|
3.2 |
Certificate of Amendment to Certificate of Formation of the Sponsor dated March 27, 2012, incorporated herein by reference to Exhibit 3.2 to the Annual Report on Form 10-K filed by the Trust on January 14, 2013. |
|
|
3.3 |
Certificate of Amendment to the Certificate of Formation of the Sponsor dated April 6, 2018, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by the Trust on April 9, 2018. |
|
|
3.4 |
Third Amended and Restated Limited Liability Company Agreement of the Sponsor, incorporated herein by reference to Exhibit 3.2 to the Current Report on Form 8-K filed by the Trust on April 9, 2018. |
|
|
4.1 |
Depositary Trust Agreement dated as of June 8, 2006 among the Sponsor, The Bank of New York Mellon, all registered owners and beneficial owners of Swiss Franc Shares issued thereunder and all depositors, incorporated herein by reference to Exhibit 4.1 to the Annual Report on Form 10-K/A filed by the Trust on March 10, 2011. |
|
|
4.2 |
Amendment to Depositary Trust Agreement dated as of November 13, 2008 between the Sponsor and The Bank of New York Mellon, incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q filed by the Trust on September 9, 2010. |
|
|
4.3 |
Global Amendment to Depositary Trust Agreements dated as of March 6, 2012 between the Sponsor and The Bank of New York Mellon, incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q filed by the Trust on March 12, 2012. |
|
|
4.4 |
Global Amendment to Depositary Trust Agreements dated as of September 5, 2017 between the Sponsor and The Bank of New York Mellon, incorporated herein by reference to Exhibit 4.7 to the Quarterly Report on Form 10-Q filed by the Trust on September 11, 2017. |
|
|
4.5 |
Global Amendment to Depositary Trust Agreements dated as of June 4, 2018 between the Sponsor and The Bank of New York Mellon, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Trust on June 4, 2018. |
|
|
4.6 |
Global Amendment to Depositary Trust Agreements dated as of January 9, 2019 between the Sponsor and The Bank of New York Mellon, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by the Trust on January 11, 2019. |
|
|
4.7 |
Form of Participant Agreement among The Bank of New York Mellon, the Sponsor, and the Authorized Participants (listed in the Schedule attached thereto pursuant to Instruction 2 to Item 601 of Regulation S-K), incorporated herein by reference to Exhibit 4.6 to the Annual Report on Form 10-K filed by the Trust on January 11, 2019. |
|
|
10.1 |
Deposit Account Agreement dated as of June 8, 2006 between The Bank of New York Mellon and the London Branch of JPMorgan Chase Bank, N.A., incorporated herein by reference to Exhibit 10.1 to the Annual Report on Form 10-K/A filed by the Trust on March 10, 2011. |
|
|
10.2 |
Amendment to Deposit Account Agreement dated as of November 13, 2008 between The Bank of New York Mellon and the London Branch of JPMorgan Chase Bank, N.A., incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q filed by the Trust on September 9, 2010. |
|
|
10.3 |
Amendment 2 to Deposit Account Agreement dated as of September 1, 2010 between The Bank of New York Mellon and the London Branch of JPMorgan Chase Bank, N.A., incorporated herein by reference to Exhibit 10.3 to the Annual Report on Form 10-K/A filed by the Trust on March 10, 2011. |
|
|
17
10.4 |
Amendment 3 to Deposit Account Agreement dated as of August 10, 2011 between The Bank of New York Mellon and the London Branch of JPMorgan Chase Bank, N.A, incorporated herein by reference to Exhibit 10.4 to the Registration on Form S-3 (File No. 333-176370) filed by the Trust on August 17, 2011. |
|
|
10.5 |
License Agreement dated as of April 6, 2018 between The Bank of New York Mellon and the Sponsor, incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by the Trust on April 9, 2018. |
31.1 |
Certification by Principal Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. |
|
|
31.2 |
Certification by Principal Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. |
|
|
32.1 |
Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
32.2 |
Certification by Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
101.INS |
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
|
|
101.SCH |
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. |
|
|
104 |
The cover page of the Trust’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline XBRL. |
18
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Invesco CurrencyShares® Swiss Franc Trust |
|
|
|
By: |
Invesco Specialized Products, LLC |
|
its Sponsor |
|
|
Dated: November 6, 2025 |
By: |
/s/ BRIAN HARTIGAN |
|
Name: |
Brian Hartigan |
|
Title: |
Principal Executive Officer |
|
|
|
Dated: November 6, 2025 |
By: |
/s/ KELLI GALLEGOS |
|
Name: |
Kelli Gallegos |
|
Title: |
Principal Financial and Accounting Officer, |
|
|
Investment Pools |
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FAQ
What were FXF’s total assets at quarter-end and what does it hold?
How many FXF shares were outstanding as of September 30, 2025?
What was FXF’s Q3 2025 profit or loss?
Did FXF pay a distribution in Q3 2025?
What were FXF’s creation/redemption activities year-to-date?
What fees and rates affected results?
What risks did management highlight for FXF?
