Invesco DB Precious Metals Fund Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow

dbp-10q_20200630.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 June 30, 2020


☐	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 June 30, 2020: 3,000,000

INVESCO DB PRECIOUS METALS FUND

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

QUARTER ENDED JUNE 30, 2020

TABLE OF CONTENTS


		Page
PART I.	FINANCIAL INFORMATION	1

ITEM 1.	Financial Statements	1
	Notes to Unaudited Financial Statements	10
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	29
ITEM 4.	Controls and Procedures	30

PART II.	OTHER INFORMATION	32

Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	34

SIGNATURES		35

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

Invesco DB Precious Metals Fund

Statements of Financial Condition

June 30, 2020 and December 31, 2019

(Unaudited)

	June 30,		December 31,
	2020		2019
Assets
United States Treasury Obligations, at value (cost $77,990,021 and $77,722,522, respectively)	$	77,990,291	$	77,740,351
Affiliated investments, at value (cost $63,725,049 and $63,714,072, respectively)		63,695,574		63,714,072
Other investments:
Variation margin receivable- Commodity Futures Contracts		2,107,540		205,850
Cash held by custodian		—		129,560
Receivable for:
Dividends from affiliates		5,004		39,537
Total assets	$	143,798,409	$	141,829,370
Liabilities
Payable for:
Management fees		74,887		88,249
Brokerage commissions and fees		5,001		4,729
Total liabilities		79,888		92,978
Commitments and Contingencies (Note 10)
Equity
Shareholder's equity—General Shares		1,916		1,668
Shareholders' equity—Shares		143,716,605		141,734,724
Total shareholders' equity		143,718,521		141,736,392
Total liabilities and equity	$	143,798,409	$	141,829,370
General Shares outstanding		40		40
Shares outstanding		3,000,000		3,400,000

Net asset value per share	$	47.91	$	41.69
Market value per share	$	47.83	$	41.61

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

Invesco DB Precious Metals Fund

Schedule of Investments

June 30, 2020

(Unaudited)

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.105% due July 2, 2020		24.35	%	$	34,999,920	$	35,000,000
U.S. Treasury Bills, 0.130% due August 13, 2020% ^(b)		6.96			9,998,507		10,000,000
U.S. Treasury Bills, 0.170% due September 10, 2020 ^(b)		22.96			32,991,864		33,000,000
Total United States Treasury Obligations (cost $77,990,021)		54.27	%	$	77,990,291
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $17,486,475) ^(c)		12.15	%	$	17,457,000		165,000
Money Market Mutual Fund
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 0.08% (cost $46,238,574)^(c)(d)		32.17	%	$	46,238,574		46,238,574
Total Affiliated Investments (cost $63,725,049)		44.32	%	$	63,695,574
Total Investments in Securities (cost $141,715,070)		98.59	%	$	141,685,865

^(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 $34,990,500 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 June 30, 2020.

Open Commodity Futures Contracts	Number of Contracts		Expiration Date	Notional Value		Value^(e)		Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
COMEX Gold		642	February-2021	$	117,325,500	$	14,985,565	$	14,985,565
COMEX Silver		278	May-2021		26,462,820		5,257,527		5,257,527
Total Commodity Futures Contracts						$	20,243,092	$	20,243,092

⁽^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, 2019

(Unaudited)

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 1.520% due February 6, 2020		4.23	%	$	5,991,337	$	6,000,000
U.S. Treasury Bills, 1.560% due March 5, 2020		14.78			20,944,967		21,000,000
U.S. Treasury Bills, 1.520% due April 2, 2020^(b)		35.84			50,804,047		51,000,000
Total United States Treasury Obligations (cost $77,722,522)		54.85	%	$	77,740,351
Affiliated Investments						Shares
Money Market Mutual Fund
Invesco Premier U.S. Government Money Portfolio, Institutional Class, 1.47% (cost $63,714,072) ^(c)(d)		44.95	%	$	63,714,072		63,714,072
Total Investments in Securities (cost $141,436,594)		99.80	%	$	141,454,423

^(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 $20,918,100 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, 2019.

Open Commodity Futures Contracts	Number of Contracts		Expiration Date	Notional Value		Value^(e)		Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
COMEX Gold		741	February-2020	$	112,861,710	$	11,493,134	$	11,493,134
COMEX Silver		319	May-2020		28,724,355		3,114,481		3,114,481
Total Commodity Futures Contracts						$	14,607,615	$	14,607,615

⁽^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 and Six Months Ended June 30, 2020 and 2019

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Income
Interest Income	$	30,717		$	610,580		$	335,167		$	1,351,649
Dividends from Affiliates		54,103			32,731			260,504			75,451
Total Income		84,820			643,311			595,671			1,427,100
Expenses
Management Fees		261,992			199,986			525,328			442,526
Brokerage Commissions and Fees		2,221			2,151			8,247			7,221
Interest Expense		1,761			2,443			3,659			3,749
Total Expenses		265,974			204,580			537,234			453,496
Less: Waivers		(35,005	)		(2,592	)		(64,315	)		(6,409	)
Net Expenses		230,969			201,988			472,919			447,087
Net Investment Income (Loss)		(146,149	)		441,323			122,752			980,013
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		—			117			—			(590	)
Commodity Futures Contracts		(605,640	)		39,555			13,026,223			2,736,793
Net Realized Gain (Loss)		(605,640	)		39,672			13,026,223			2,736,203
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		(17,740	)		29,788			(17,559	)		24,709
Affiliated Investments		(29,475	)		—			(29,475	)		—
Commodity Futures Contracts		23,056,627			6,841,951			5,635,477			3,202,178
Net Change in Unrealized Gain (Loss)		23,009,412			6,871,739			5,588,443			3,226,887
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		22,403,772			6,911,411			18,614,666			5,963,090
Net Income (Loss)	$	22,257,623		$	7,352,734		$	18,737,418		$	6,943,103

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 June 30, 2020

(Unaudited)

	General Shares				Shares						Total
	Shares		Total Equity		Shares			Total Equity			Shareholders' Equity
Balance at March 31, 2020		40	$	1,636		3,400,000		$	139,076,963		$	139,078,599
Purchases of Shares						—			—			—
Redemption of Shares						(400,000	)		(17,617,701	)		(17,617,701	)
Net Increase (Decrease) due to Share Transactions						(400,000	)		(17,617,701	)		(17,617,701	)
Net Income (Loss)
Net Investment Income (Loss)				—					(146,149	)		(146,149	)
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				48					(605,688	)		(605,640	)
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				232					23,009,180			23,009,412
Net Income (Loss)				280					22,257,343			22,257,623
Net Change in Shareholders' Equity		—		280		(400,000	)		4,639,642			4,639,922
Balance at June 30, 2020		40	$	1,916		3,000,000		$	143,716,605		$	143,718,521

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 June 30, 2019

(Unaudited)

	General Shares				Shares						Total
	Shares		Total Equity		Shares			Total Equity			Shareholders' Equity
Balance at March 31, 2019		40	$	1,451		3,200,000		$	116,093,278		$	116,094,729
Purchases of Shares						200,000			7,353,516			7,353,516
Redemption of Shares						(400,000	)		(14,407,091	)		(14,407,091	)
Net Increase (Decrease) due to Share Transactions						(200,000	)		(7,053,575	)		(7,053,575	)
Net Income (Loss)
Net Investment Income (Loss)				13					441,310			441,323
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				32					39,640			39,672
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				56					6,871,683			6,871,739
Net Income (Loss)				101					7,352,633			7,352,734
Net Change in Shareholders' Equity		—		101		(200,000	)		299,058			299,159
Balance at June 30, 2019		40	$	1,552		3,000,000		$	116,392,336		$	116,393,888

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 Six Months Ended June 30, 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

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	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_6.htm
EX-31.2	dbp-ex312_9.htm
EX-32.1	dbp-ex321_8.htm
EX-32.2	dbp-ex322_7.htm

DBP 10Q Quarterly Report

Invesco DB Precious Metals Fund Earnings 2020-06-30