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Item 8. Financial Statements and Supplementary Data

2023-02-24 compared with 2022-02-25 · 69 added, 65 removed, 209 unchanged (39% of the section changed)

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Over Financial Reporting

Management of Invesco Specialized Products, LLC, as sponsor (the “Sponsor”) of the Invesco CurrencyShares ® Canadian Dollar Trust (the “Trust”), is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S.

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We, Anna Paglia, Principal Executive Officer, and Kelli Gallegos, Principal Financial and Accounting Officer, Investment Pools, of the Sponsor, assessed the effectiveness of the Trust’s internal control over financial reporting as of December 31, 2021.

In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control—Integrated Framework (2013).

Based on our assessment and those criteria, we have concluded that the Trust maintained effective internal control over financial reporting as of December 31, 2022.

The Trust’s independent registered public accounting firm, PricewaterhouseCoopers LLP , has audited the Trust’s internal control over financial reporting as of December 31, 2021, as stated in their report on page 15 of the Trust’s Annual Report on Form 10-K.

The Trust’s independent registered public accounting firm, PricewaterhouseCoopers LLP , has audited the Trust’s internal control over financial reporting as of December 31, 2022, as stated in their report on page 15 of the Trust’s Annual Report on Form 10-K.

/S/ ANNA PAGLIA

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February 23, 2023

Report of Independent Registered Public Accounting Firm

Report of Independent Regist ered Public Accounting Firm

To the Board of Managers of Invesco Specialized Products, LLC (as Sponsor of Invesco CurrencyShares Canadian Dollar Trust) and Shareholders of Invesco CurrencyShares Canadian Dollar Trust

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying statements of financial condition of Invesco CurrencyShares Canadian Dollar Trust (the “Trust”) as of December 31, 2021 and 2020, and the related statements of comprehensive income, of changes in shareholders’ equity and redeemable capital shares and of cash flows for each of the two years in the period ended December 31, 2021, including the related notes (collectively referred to as the “financial statements”).

We have audited the accompanying statements of financial condition of Invesco CurrencyShares Canadian Dollar Trust (the “Trust”) as of December 31, 2022 and 2021, and the related statements of comprehensive income, of changes in shareholders’

equity and redeemable capital shares and of cash flows for each of the two years in the period ended December 31, 2022, including the related notes (collectively referred to as the “financial statements”).

We also have audited the Trust's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

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The Trust's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting.

Our responsibility is to express opinions on the Trust’s financial statements and on the Trust's internal control over financial reporting based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Trust in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits i n accordance with the standards of the PCAOB.

We conducted ouraudits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

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Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

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February 23, 2023

We have served as the Trust’s auditor since 2018.

Invesco CurrencyShares ® Canadian Dollar Trust

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Canadian Dollar deposits, interest bearing

Accrued Sponsor’s fee

Receivable from accrued interest

Canadian Dollar deposits, non-interest bearing, overdrawn

Accrued Sponsor’s fee

Total Liabilities

Commitments and Contingent Liabilities (note 8)

Redeemable Capital Shares and Shareholders’ Equity

Redeemable Capital Shares and Shareholders’

Redeemable Capital Shares, at redemption value, no par value,

1,350,000 and 1,800,000 issued and outstanding, respectively

Shareholders’ Equity:

Shareholders’

Retained Earnings

Total Liabilities, Redeemable Capital Shares and Shareholders’ Equity

Total Liabilities, Redeemable Capital Shares and Shareholders’

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Interest Income

Sponsor’s fee

Total Expenses

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Invesco CurrencyShares ® Canadian Dollar Trust

Statement of Changes in Shareholders’ Equity and Redeemable Capital Shares

Statement of Changes in Shareholders’

Equity and Redeemable Capital Shares

For the Year Ended December 31, 2022

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Redemption of Shares

( 209,787,288

Net Increase (Decrease) due to Share Transactions

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Invesco CurrencyShares ® Canadian Dollar Trust

Statement of Changes in Shareholders’ Equity and Redeemable Capital Shares

Statement of Changes in Shareholders’

Equity and Redeemable Capital Shares

For the Year Ended December 31, 2021

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Redemption of Shares

( 209,787,288

Net Increase (Decrease) due to Share Transactions

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Receivable from accrued interest

Accrued Sponsor’s fee

Net cash provided by (used in) operating activities

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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”).

The Transaction Agreement was consummated on April 6, 2018 (the “Closing”) and immediately following the Closing, Invesco Capital Management changed the name of the Sponsor to Invesco Specialized Products, LLC.

On January 9, 2019, the Sponsor changed the Trust’s fiscal year from the period beginning on November 1 and ending on October 31 to the period beginning on January 1 and ending on December 31.

Unless otherwise noted, all references to “years” in this report refer to the twelve-month fiscal year, which prior to November 1, 2018 ended on October 31 and beginning after December 31, 2018 ends on December 31 of each year.

On September 28, 2017, Guggenheim Capital, LLC (“Guggenheim”) and Invesco Ltd.

Note 2 - Organization

The Invesco CurrencyShares ® Canadian Dollar Trust (the “Trust”) was formed under the laws of the State of New York on June 8, 2006 when the Sponsor deposited 100 Canadian Dollars in the Trust’s primary deposit account held by JPMorgan Chase Bank, N.A., London Branch (the “Depository”).

The Sponsor is a Delaware limited liability company whose sole member is Invesco Capital Management.

The Trust has an unlimited number of shares authorized for issuance.

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 Canadian Dollar plus accrued interest, if any, less the Trust’s expenses and liabilities.

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 Canadian Dollar 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 Canadian Dollars.

The Trust’s assets primarily consist of Canadian Dollars on demand deposit in two deposit accounts maintained by the Depository:

a primary deposit account which may earn interest and a secondary deposit account which does not earn interest.

The secondary deposit account is used to account for any interest that may be received and paid out on creations and redemptions of blocks of 50,000 Shares (“Baskets”).

The secondary account is also used to account for interest earned, if any, on the primary deposit account, pay Trust expenses and distribute any excess interest to holders of Shares (“Shareholders”) on a monthly basis.

This Annual Report (the “Annual Report”) covers the years ended December 31, 2021 and 2020.

Note 3 – Summary of Significant Accounting Policies

The secondary deposit account is used to account for any interest that may be received and paid out on creations and redemptions of blocks of 50,000 Shares (“Baskets”).

This Annual Report (the “Annual Report”) covers the years ended December 31, 2022 and 2021 .

Note 3 –

Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the Trust have been prepared using accounting principles generally accepted in the United States of America (“U.S.

GAAP”).

Accounting Estimates

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Foreign Currency Translation

For Net Asset Value (“NAV”) calculation purposes, Canadian Dollar deposits (cash) are translated at the Closing Spot Rate, which is the Canadian Dollar/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.

The Trust maintains its books and records in Canadian Dollars.

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The Closing Spot Rate on the last day of the period is used for translation in the statements of financial condition.

The average Closing Spot Rate for the

period is used for translation in the statements of comprehensive income and the statements of cash flows.

The average Closing Spot Rate for the period is used for translation in the statements of comprehensive income and the statements of cash flows.

The redeemable capital Shares are adjusted to redemption value and these adjustments are recorded against retained earnings.

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Any interest below zero for the period is reflected as interest expense on currency deposits.

The Depository may change the rate at which interest accrues, including reducing the interest rate to zero or below zero, based upon changes in market conditions or based on the Depository’s liquidity needs.

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 Canadian Dollars effective on the first business day of the subsequent month.

The Trustee (as defined below) will direct that the excess Canadian Dollars 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).

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Distributions paid

There was no income distribution for the month ended December 31, 2021.

An income distribution for the month ended December 31, 2022 was paid on January 10, 2023 to holders of record as of January 4, 2023 at a rate of $ 0.08723 per Share and a total distribution of $ 117,761 .

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 $ 100,000 per year in legal fees and expenses, and applicable license fees.

The Trust does not reimburse the Sponsor for the routine operational, administrative and other ordinary expenses of the Trust.

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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 $ 100,000 per year.

The only expense of the Trust during the years ended December 31, 2021 and 2020 was the Sponsor’s fee.

The only expense of the Trust during the years ended December 31, 2022 and 2021 was the Sponsor’s fee.

Federal Income Taxes

The Trust is treated as a “grantor trust” for federal income tax purposes and, therefore, no provision for federal income taxes is required.

The Trust is treated as a “grantor trust”

for federal income tax purposes and, therefore, no provision for federal income taxes is required.

Interest, gains and losses are passed through to the Shareholders.

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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.

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 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.

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.

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Shareholder of a trade or business in the United States.

Shareholder’s portion of any interest income earned by the Trust generally will not be subject to U.S.

federal income tax unless the Shares owned by such non-U.S.

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Note 5 - Concentration Risk

All of the Trust’s assets are Canadian Dollars, which creates a concentration risk associated with fluctuations in the price of the Canadian Dollar.

Accordingly, a decline in the Canadian Dollar to USD exchange rate will have an adverse effect on the value of the Shares.

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Substantial sales of Canadian Dollars by the official sector (central banks, other governmental agencies and related institutions that buy, sell and hold Canadian Dollars as part of their reserve assets) could adversely affect an investment in the Shares.

All of the Trust’s Canadian Dollars 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.

All of the Trust’s Canadian Dollars are held by the Depository.

Note 6 - Service Providers and Related Party Agreements

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 of the Trust generally oversees the performance of the Trustee and the Trust’s principal service providers.

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 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 0.40 % of the Canadian Dollars in the Trust (including all unpaid interest but excluding unpaid fees, each as accrued through the immediately preceding day) and is paid monthly.

Note 7 - Share Purchases and Redemptions

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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.

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Adjustments to redeemable capital Shares at redemption value are recorded directly to redeemable capital shares and retained earnings.

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 Canadian Dollars held by the Trust (including all unpaid interest, if any, accrued through the preceding day) and calculates the value of the Canadian Dollars in USD based upon the Closing Spot Rate.

The Trustee calculates the Trust’s NAV each business day.

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 Canadian Dollars, 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.

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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.

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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.

What changed 10-K

Item 8. Financial Statements and Supplementary Data