Invesco DB Precious Metals Fund Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow

dbp-10q_20210331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-33244

INVESCO DB PRECIOUS METALS FUND

(A Series of Invesco DB Multi-Sector Commodity Trust)

(Exact name of registrant as specified in its charter)

Delaware		87-0778065
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

c/o Invesco Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, Illinois		60515
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (800) 983-0903

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units of Beneficial Interest	DBP	NYSE Arca, Inc.

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. Yes ☒ No ☐

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). Yes ☒ No ☐

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	☐	Accelerated Filer	☐

Non-Accelerated Filer	☒	Smaller reporting company	☒

		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 ☐ No ☒

Indicate the number of outstanding Shares as of March 31, 2021: 2,400,000

INVESCO DB PRECIOUS METALS FUND

(A SERIES OF INVESCO DB MULTI-SECTOR COMMODITY TRUST)

QUARTER ENDED MARCH 31, 2021

TABLE OF CONTENTS


		Page
PART I.	FINANCIAL INFORMATION	1

ITEM 1.	Financial Statements	1
	Notes to Unaudited Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	24
ITEM 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION	27

Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	27

SIGNATURES		29

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

Invesco DB Precious Metals Fund

Statements of Financial Condition

March 31, 2021 and December 31, 2020

(Unaudited)

	March 31,		December 31,
	2021		2020
Assets
United States Treasury Obligations, at value (cost $40,992,357 and $54,986,091, respectively)	$	40,996,861	$	54,989,124
Affiliated investments, at value (cost $71,206,864 and $86,092,194, respectively)		71,158,414		86,041,269
Other investments:
Variation margin receivable- Commodity Futures Contracts		1,931,245		—
Cash held by custodian		—		1,027,215
Receivable for:
Dividends from affiliates		1,379		1,146
Total assets	$	114,087,899	$	142,058,754
Liabilities
Other investments:
Variation margin payable- Commodity Futures Contracts	$	—	$	83,070
Payable for:
Management fees		69,629		83,060
Brokerage commissions and fees		4,997		5,003
Total liabilities		74,626		171,133
Commitments and Contingencies (Note 10)
Equity
Shareholder's equity—General Shares		1,900		2,102
Shareholders' equity—Shares		114,011,373		141,885,519
Total shareholders' equity		114,013,273		141,887,621
Total liabilities and equity	$	114,087,899	$	142,058,754
General Shares outstanding		40		40
Shares outstanding		2,400,000		2,700,000

Net asset value per share	$	47.50	$	52.55
Market value per share	$	47.33	$	52.76

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

Invesco DB Precious Metals Fund

Schedule of Investments

March 31, 2021

(Unaudited)

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.045% due June 10, 2021 ^(b)		7.02	%	$	7,999,821	$	8,000,000
U.S. Treasury Bills, 0.070% due August 5, 2021 ^(b)		14.03			15,999,160		16,000,000
U.S. Treasury Bills, 0.035% due October 7, 2021 ^(b)		14.91			16,997,880		17,000,000
Total United States Treasury Obligations (cost $40,992,357)		35.96	%	$	40,996,861
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $17,486,475) ^(c)		15.29	%	$	17,438,025		165,000
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 0.03% (cost $53,720,389) ^(c)(d)		47.12	%	$	53,720,389		53,720,389
Total Affiliated Investments (cost $71,206,864)		62.41	%	$	71,158,414
Total Investments in Securities (cost $112,199,221)		98.37	%	$	112,155,275

^(a)	Security may be traded on a discount basis. The interest rate shown represents the discount rate at the most recent auction date of the security prior to period end.

^(b)	United States Treasury Obligations of $34,994,800 are on deposit with the Commodity Broker and held as maintenance margin for open futures contracts.

^(c⁾	Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. See Note 8.

^(d)	The rate shown is the 7-day SEC standardized yield as of March 31, 2021.

Open Commodity Futures Contracts	Number of Contracts		Expiration Date	Notional Value		Value^(e)			Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
COMEX Gold		517	February-2022	$	89,048,080	$	(9,379,988	)	$	(9,379,988	)
COMEX Silver		203	May-2021		24,899,980		8,576,012			8,576,012
Total Commodity Futures Contracts						$	(803,976	)	$	(803,976	)

⁽^e⁾	Unrealized Appreciation (Depreciation) and Value are presented above, net by contract.

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

Invesco DB Precious Metals Fund

Schedule of Investments

December 31, 2020

(Unaudited)

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.085% due February 25, 2021 ^(b)		14.10	%	$	19,998,339	$	20,000,000
U.S. Treasury Bills, 0.080% due March 11, 2021 ^(b)		14.09			19,997,616		20,000,000
U.S. Treasury Bills, 0.090% due June 10, 2021		5.64			7,997,462		8,000,000
U.S. Treasury Bills, 0.140% due October 7, 2021		4.93			6,995,707		7,000,000
Total United States Treasury Obligations (cost $54,986,091)		38.76	%	$	54,989,124
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $17,486,475) ^(c)		12.29	%	$	17,435,550		165,000
Money Market Mutual Fund
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 0.03% (cost $68,605,719) ^(c)(d)		48.35	%	$	68,605,719		68,605,719
Total Affiliated Investments (cost $86,092,194)		60.64	%		86,041,269
Total Investments in Securities (cost $141,078,285)		99.40	%	$	141,030,393

^(a)	Security may be traded on a discount basis. The interest rate shown represents the discount rate at the most recent auction date of the security prior to period end.

^(b)	United States Treasury Obligations of $39,994,000 are on deposit with the Commodity Broker and held as maintenance margin for open futures contracts.

^(c)	Affiliated issuer. The issuer and/or the Fund is a wholly-owned subsidiary of Invesco Ltd., or is affiliated by having an investment adviser that is under common control of Invesco Ltd. See Note 8.

^(d)	The rate shown is the 7-day SEC standardized yield as of December 31, 2020.

Open Commodity Futures Contracts	Number of Contracts		Expiration Date	Notional Value		Value^(e)		Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
COMEX Gold		589	February-2021	$	111,621,390	$	16,297,433	$	16,297,433
COMEX Silver		229	May-2021		30,311,585		12,043,917		12,043,917
Total Commodity Futures Contracts						$	28,341,350	$	28,341,350

⁽^e⁾	Unrealized Appreciation (Depreciation) and Value are presented above, net by contract.

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

Invesco DB Precious Metals Fund

Statements of Income and Expenses

For the Three Months Ended March 31, 2021 and 2020

(Unaudited)

	Three Months Ended
	March 31,
	2021			2020
Income
Interest Income	$	9,716		$	304,450
Dividends from Affiliates		6,905			206,401
Total Income		16,621			510,851
Expenses
Management Fees		233,888			263,336
Brokerage Commissions and Fees		3,685			6,026
Interest Expense		864			1,898
Total Expenses		238,437			271,260
Less: Waivers		(15,343	)		(29,310	)
Net Expenses		223,094			241,950
Net Investment Income (Loss)		(206,473	)		268,901
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts
Net Realized Gain (Loss) on
United States Treasury Obligations		292			—
Commodity Futures Contracts		16,471,753			13,631,863
Net Realized Gain (Loss)		16,472,045			13,631,863
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		1,471			181
Affiliated Investments		2,475			—
Commodity Futures Contracts		(29,145,326	)		(17,421,150	)
Net Change in Unrealized Gain (Loss)		(29,141,380	)		(17,420,969	)
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		(12,669,335	)		(3,789,106	)
Net Income (Loss)	$	(12,875,808	)	$	(3,520,205	)

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

Invesco DB Precious Metals Fund

Statement of Changes in Shareholders’ Equity

For the Three Months Ended March 31, 2021

(Unaudited)

	General Shares					Shares						Total
	Shares		Total Equity			Shares			Total Equity			Shareholders' Equity
Balance at December 31, 2020		40	$	2,102			2,700,000		$	141,885,519		$	141,887,621
Purchases of Shares							—			—			—
Redemption of Shares							(300,000	)		(14,998,540	)		(14,998,540	)
Net Increase (Decrease) due to Share Transactions							(300,000	)		(14,998,540	)		(14,998,540	)
Net Income (Loss)
Net Investment Income (Loss)				(3	)					(206,470	)		(206,473	)
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				258						16,471,787			16,472,045
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				(457	)					(29,140,923	)		(29,141,380	)
Net Income (Loss)				(202	)					(12,875,606	)		(12,875,808	)
Net Change in Shareholders' Equity		—		(202	)		(300,000	)		(27,874,146	)		(27,874,348	)
Balance at March 31, 2021		40	$	1,900			2,400,000		$	114,011,373		$	114,013,273

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

Invesco DB Precious Metals Fund

Statement of Changes in Shareholders’ Equity

For the Three Months Ended March 31, 2020

(Unaudited)

	General Shares					Shares						Total
	Shares		Total Equity			Shares			Total Equity			Shareholders' Equity
Balance at December 31, 2019		40	$	1,668			3,400,000		$	141,734,724		$	141,736,392
Purchases of Shares							1,000,000			41,508,133			41,508,133
Redemption of Shares							(1,000,000	)		(40,645,721	)		(40,645,721	)
Net Increase (Decrease) due to Share Transactions							—			862,412			862,412
Net Income (Loss)
Net Investment Income (Loss)				2						268,899			268,901
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				124						13,631,739			13,631,863
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				(158	)					(17,420,811	)		(17,420,969	)
Net Income (Loss)				(32	)					(3,520,173	)		(3,520,205	)
Net Change in Shareholders' Equity		—		(32	)		—			(2,657,761	)		(2,657,793	)
Balance at March 31, 2020		40	$	1,636			3,400,000		$	139,076,963		$	139,078,599

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

Invesco DB Precious Metals Fund

Statements of Cash Flows

For the Three Months Ended March 31, 2021 and 2020

(Unaudited)

	Three Months Ended
	March 31,
	2021			2020
Cash flows from operating activities:
Net Income (Loss)	$	(12,875,808	)	$	(3,520,205	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Cost of securities purchased		(25,996,213	)		(46,947,478	)
Proceeds from securities sold and matured		39,999,955			27,000,000
Cost of affiliated investments purchased		(44,122,366	)		(104,084,145	)
Proceeds from affiliated investments sold		59,007,696			123,333,701
Net accretion of discount on United States Treasury Obligations		(9,716	)		(302,720	)
Net realized (gain) loss on United States Treasury Obligations and Affiliated Investments		(292	)		—
Net change in unrealized (gain) loss on United States Treasury Obligations and Affiliated Investments		(3,946	)		(181	)
Change in operating assets and liabilities:
Variation margin- Commodity Futures Contracts		(2,014,315	)		3,559,930
Dividends from affiliates		(233	)		(21,178	)
Management fees		(13,431	)		(9,966	)
Brokerage commissions and fees		(6	)		270
Net cash provided by (used in) operating activities		13,971,325			(991,972	)
Cash flows from financing activities:
Proceeds from purchases of Shares		—			41,508,133
Redemption of Shares		(14,998,540	)		(40,645,721	)
Net cash provided by (used in) financing activities		(14,998,540	)		862,412
Net change in cash		(1,027,215	)		(129,560	)
Cash at beginning of period		1,027,215			129,560
Cash at end of period	$	—		$	—

Price	41.70	EPS	4
Shares	3	P/E	10
MCap	133	P/FCF	-18
Net Debt	-0	EBIT	13
TEV	133	TEV/EBIT	10
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-05-07
10-K	2020-12-31	Filed 2021-02-26
10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-07
10-Q	2020-03-31	Filed 2020-05-08
10-K	2019-12-31	Filed 2020-02-28
10-Q	2019-09-30	Filed 2019-11-08
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-02-28
S-1	2018-11-15	Public Filing
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-08
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-08
10-Q	2017-03-31	Filed 2017-05-08
10-K	2016-12-31	Filed 2017-03-01
10-Q	2016-09-30	Filed 2016-11-08
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-02-29
10-Q	2015-09-30	Filed 2015-11-06
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-06
10-Q	2014-09-30	Filed 2014-11-05
10-Q	2014-06-30	Filed 2014-08-06
10-Q	2014-03-31	Filed 2014-05-09
10-K	2013-12-31	Filed 2014-03-04
10-Q	2013-09-30	Filed 2013-11-05
10-Q	2013-06-30	Filed 2013-08-08
10-Q	2013-03-31	Filed 2013-05-03
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-11-02
10-Q	2012-06-30	Filed 2012-08-03
10-Q	2012-03-31	Filed 2012-05-14
10-K	2011-12-31	Filed 2012-03-14
10-Q	2011-09-30	Filed 2011-11-07
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-K	2010-12-31	Filed 2011-03-14
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-06
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-08

8-K	2020-04-02
8-K	2019-10-01
8-K	2019-05-07
8-K	2018-08-27
8-K	2018-06-04
8-K	2018-05-24
8-K	2018-03-08

EX-31.1	dbp-ex311_10.htm
EX-31.2	dbp-ex312_7.htm
EX-32.1	dbp-ex321_11.htm
EX-32.2	dbp-ex322_9.htm

DBP 10Q Quarterly Report

Invesco DB Precious Metals Fund Earnings 2021-03-31