Invesco DB Precious Metals Fund Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow

dbp-10q_20200930.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 September 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 September 30, 2020: 3,200,000

INVESCO DB PRECIOUS METALS FUND

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

QUARTER ENDED SEPTEMBER 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	31

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

September 30, 2020 and December 31, 2019

(Unaudited)

	September 30,		December 31,
	2020		2019
Assets
United States Treasury Obligations, at value (cost $74,989,261 and $77,722,522, respectively)	$	74,991,141	$	77,740,351
Affiliated investments, at value (cost $92,200,294 and $63,714,072, respectively)		92,159,269		63,714,072
Other investments:
Variation margin receivable- Commodity Futures Contracts		—		205,850
Cash held by custodian		—		129,560
Receivable for:
Dividends from affiliates		707		39,537
Total assets	$	167,151,117	$	141,829,370
Liabilities
Other investments:
Variation margin payable- Commodity Futures Contracts	$	1,914,570	$	—
Payable for:
Management fees		93,967		88,249
Brokerage commissions and fees		5,003		4,729
Total liabilities		2,013,540		92,978
Commitments and Contingencies (Note 10)
Equity
Shareholder's equity—General Shares		2,064		1,668
Shareholders' equity—Shares		165,135,513		141,734,724
Total shareholders' equity		165,137,577		141,736,392
Total liabilities and equity	$	167,151,117	$	141,829,370
General Shares outstanding		40		40
Shares outstanding		3,200,000		3,400,000

Net asset value per share	$	51.60	$	41.69
Market value per share	$	51.45	$	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

September 30, 2020

(Unaudited)

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.090% due October 15, 2020 ^(b)		12.11	%	$	19,999,475	$	20,000,000
U.S. Treasury Bills, 0.085% due November 12, 2020 ^(b)		6.05			9,999,052		10,000,000
U.S. Treasury Bills, 0.105% due December 3, 2020 ^(b)		12.11			19,997,025		20,000,000
U.S. Treasury Bills, 0.110% due December 17, 2020		15.14			24,995,589		25,000,000
Total United States Treasury Obligations (cost $74,989,261)		45.41	%	$	74,991,141
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $17,486,475) ^(c)		10.57	%	$	17,445,450		165,000
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 0.02% (cost $74,713,819) ^(c)(d)		45.24	%	$	74,713,819		74,713,819
Total Affiliated Investments (cost $92,200,294)		55.81	%	$	92,159,269
Total Investments in Securities (cost $167,189,555)		101.22	%	$	167,150,410

^(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 $39,995,000 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 September 30, 2020.

Open Commodity Futures Contracts	Number of Contracts		Expiration Date	Notional Value		Value^(e)		Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
COMEX Gold		684	February-2021	$	130,137,840	$	20,057,122	$	20,057,122
COMEX Silver		297	May-2021		35,230,140		12,196,889		12,196,889
Total Commodity Futures Contracts						$	32,254,011	$	32,254,011

⁽^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 Nine Months Ended September 30, 2020 and 2019

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Income
Interest Income	$	21,347		$	658,470		$	356,514		$	2,010,119
Dividends from Affiliates		17,979			54,185			278,483			129,636
Total Income		39,326			712,655			634,997			2,139,755
Expenses
Management Fees		317,170			246,701			842,498			689,227
Brokerage Commissions and Fees		180			182			8,427			7,403
Interest Expense		934			1,449			4,593			5,198
Total Expenses		318,284			248,332			855,518			701,828
Less: Waivers		(37,974	)		(5,580	)		(102,289	)		(11,989	)
Net Expenses		280,310			242,752			753,229			689,839
Net Investment Income (Loss)		(240,984	)		469,903			(118,232	)		1,449,916
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		344			270			344			(320	)
Commodity Futures Contracts		—			—			13,026,223			2,736,793
Net Realized Gain (Loss)		344			270			13,026,567			2,736,473
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		1,610			22,814			(15,949	)		47,523
Affiliated Investments		(11,550	)		—			(41,025	)		—
Commodity Futures Contracts		12,010,919			5,815,450			17,646,396			9,017,628
Net Change in Unrealized Gain (Loss)		12,000,979			5,838,264			17,589,422			9,065,151
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		12,001,323			5,838,534			30,615,989			11,801,624
Net Income (Loss)	$	11,760,339		$	6,308,437		$	30,497,757		$	13,251,540

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 September 30, 2020

(Unaudited)

	General Shares					Shares					Total
	Shares		Total Equity			Shares		Total Equity			Shareholders' Equity
Balance at June 30, 2020		40	$	1,916			3,000,000	$	143,716,605		$	143,718,521
Purchases of Shares							200,000		9,658,717			9,658,717
Redemption of Shares							—		—			—
Net Increase (Decrease) due to Share Transactions							200,000		9,658,717			9,658,717
Net Income (Loss)
Net Investment Income (Loss)				(3	)				(240,981	)		(240,984	)
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				(3	)				347			344
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				154					12,000,825			12,000,979
Net Income (Loss)				148					11,760,191			11,760,339
Net Change in Shareholders' Equity		—		148			200,000		21,418,908			21,419,056
Balance at September 30, 2020		40	$	2,064			3,200,000	$	165,135,513		$	165,137,577

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 September 30, 2019

(Unaudited)

	General Shares					Shares				Total
	Shares		Total Equity			Shares		Total Equity		Shareholders' Equity
Balance at June 30, 2019		40	$	1,552			3,000,000	$	116,392,336	$	116,393,888
Purchases of Shares							200,000		7,796,129		7,796,129
Redemption of Shares							—		—		—
Net Increase (Decrease) due to Share Transactions							200,000		7,796,129		7,796,129
Net Income (Loss)
Net Investment Income (Loss)				6					469,897		469,903
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				(2	)				272		270
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				75					5,838,189		5,838,264
Net Income (Loss)				79					6,308,358		6,308,437
Net Change in Shareholders' Equity		—		79			200,000		14,104,487		14,104,566
Balance at September 30, 2019		40	$	1,631			3,200,000	$	130,496,823	$	130,498,454

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 Nine Months Ended September 30, 2020

(Unaudited)

General Shares

Total

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	2020-09-30	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-10.1	dbp-ex101_294.htm
EX-10.2	dbp-ex102_295.htm
EX-31.1	dbp-ex311_9.htm
EX-31.2	dbp-ex312_6.htm
EX-32.1	dbp-ex321_7.htm
EX-32.2	dbp-ex322_8.htm

DBP 10Q Quarterly Report

Invesco DB Precious Metals Fund Earnings 2020-09-30