7 unchanged sentences
These factors include fluctuations in the price of the British Pound Sterling, as the value of the Shares relates directly to the value of the British Pounds Sterling held by the Trust and price fluctuations could materially adversely affect an investment in the Shares.
−Removed: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent annual report on Form 10-K for a description of other risks and uncertainties that may affect an investment in the Shares.
+Added: 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 IA 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.
36 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of September 30, 2024 was an annual nominal rate of 3.46%.
−Removed: The following chart provides the daily rate paid by the Depository since September 30, 2019:
+Added: The interest rate in effect as of March 31, 2025 was an annual nominal rate of 3.06%.
+Added: The following chart provides the daily rate paid by the Depository since March 31, 2020:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
9 unchanged sentences
These estimates and assumptions affect the Trust’s application of accounting policies.
−Removed: 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 on Form 10-K for the year ended December 31, 2023.
+Added: 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.
Results of Operations
−Removed: During the three and nine months ended September 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.
−Removed: 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 nine months ended September 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.
−Removed: The British pound sterling (GBP/USD) rallied in the third quarter of 2024 with the fund posting its strongest quarterly gain since the fourth quarter of 2022.
−Removed: The upward moves were mainly due to a falling US dollar though growing optimism on UK’s economy also provided support.
−Removed: Improving retail sales growth and stubborn inflation fueled expectations that the Bank of England (BoE) would ease rates more gradually than other central banks, particularly the US Federal Reserve (Fed), which kicked off its easing cycle in September.
−Removed: The British pound sterling (GBP/USD) moved lower in the third quarter of 2023, ending below its 50, 100 and 200-day moving averages amid a stronger US dollar and growing signs of a possible recession in the UK.
−Removed: Business activity slumped through the quarter as indicated by two consecutive months of contracting Purchasing Managers’ Index (PMIs) in August and September – this marked the deepest slump since the global financial crisis in early 2009, excluding the lockdown months during the COVID-19 pandemic.
−Removed: Its labor market also slowed while domestic inflation continued to cool, prompting the Bank of England (BoE) to pause its rate hikes in September in fear of actually tipping its economy into a recession.
−Removed: In comparison, the US economy remained resilient, and the Fed continued to hold onto its hawkish rhetoric despite pausing rate hikes – this has kept the dollar well supported, pressuring the pair.
−Removed: The British pound sterling (GBP/USD) ended the first three quarters of 2024 higher.
−Removed: While the pair saw strong gains in the third quarter of 2024, it fluctuated throughout the first half of the year, mainly on US dollar moves.
−Removed: The Fed’s higher-for-longer rhetoric and sticky US inflation pushed out expectations for rate cuts, boosting the dollar.
−Removed: However, British inflation also held up better than expected, dimming rate cut bets for the Bank of England, and provided some support on the downside.
−Removed: In the third quarter of 2024, a resilient UK economy and stubborn inflation kept a more hawkish tone on BoE easing expectations, while the Fed kicked-off its easing cycle in September, which a large 0.50% cut.
−Removed: Higher rates boost the appeal of a country’s currency, in this case, the sterling.
−Removed: The British pound sterling (GBP/USD) gained in the first half of 2023 but fell in the third quarter of 2023 leaving the fund only slightly higher year-to-date.
−Removed: While in the first quarter of 2023, the sterling was largely driven by US dollar moves, the Bank of England’s aggressive rate hikes to tame stubborn domestic inflation helped the pair rally significantly through March onwards.
−Removed: The USD fell in early-March through early May on expectations for a dovish Fed pivot, especially in the midst of the banking sector turmoil and contagion fears.
−Removed: However, the dollar rebounded in May as the Fed signaled that there was potential for more interest rate hikes before year-end.
−Removed: The sterling spiked again in June as the hawkish BoE returned to center stage and the dollar retreated.
−Removed: However, the pair was heavily pressured in the third quarter of 2023 as recession concerns grew in the UK leading the BoE to pause its tightening while the Fed maintained its higher-for-longer narrative, supporting the US dollar.
−Removed: Additionally, the interest rate paid by the Depository has generally trended upward over the past year to the current interest rate of 3.46%, as set forth in the FXB Rate Chart above.
+Added: During the three months ended March 31, 2025 and 2024, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations and mounting US recession concerns for 2025, and expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, which are considered to be unusual or infrequent events.
+Added: Although the full and direct impact of global tariffs, US recession concerns, Fed easing expectations and rising geopolitical tensions, on the Trust's net comprehensive income (loss) during the three months ended March 31, 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.
+Added: The British Pound Sterling (GBP/USD) ended the first quarter of 2025 higher, largely due to sharp losses in the US dollar.
+Added: Macroeconomic concerns reignited by President Trump’s shifting global tariff policies and growing stagflation fears dented consumer, investor, as well as business sentiment in the US, leading to a sharp downturn in US financial markets.
+Added: In addition, European currencies have been propped up by major defense and infrastructure spending plans, including in the United Kingdom (UK), which are expected to boost the region’s growth prospects.
+Added: The British Pound Sterling (GBP/USD) ended the first quarter of 2024 flat with most of the moves driven by the USD.
+Added: The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts.
+Added: Higher rates generally provide support for the country’s currency.
+Added: US economic resilience also boosted demand for the USD, pressuring the pair.
+Added: Additionally, the interest rate paid by the Depository has generally remained flat over the past year with the current interest rate of 3.06%, as set forth in the FXB Rate Chart above.
As long as the interest income, if any, exceed the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.