Invesco DB Base Metals Fund Files 10-K for Fiscal Year Ended December 31, 2023

TL;DR

<b>Invesco DB Base Metals Fund (DBB) filed its 2023 10-K, detailing commodity futures and affiliated ETF investments.</b>

AI Summary

INVESCO DB BASE METALS FUND (DBB) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco DB Base Metals Fund (DBB) filed its 10-K report for the fiscal year ending December 31, 2023. The filing details investments in securities and commodity futures contracts, including LME Copper and LME Aluminum. The fund holds investments in affiliated entities, including Exchange-Traded Funds like Invesco Treasury Collateral ETF. The report references various fiscal periods, including 2023, 2022, and 2021, for financial data and investment holdings. The fund's business address and mailing address are listed as 3500 Lacey Road, Suite 700, Downers Grove, IL 60515.

Why It Matters

For investors and stakeholders tracking INVESCO DB BASE METALS FUND, this filing contains several important signals. This 10-K provides a comprehensive overview of the fund's investment strategy and holdings for the fiscal year 2023, crucial for understanding its performance and risk exposure in base metals. The inclusion of affiliated ETFs and specific commodity futures contracts like LME Copper and Aluminum offers insight into the fund's diversification and hedging activities within the commodities market.

Risk Assessment

Risk Level: low — INVESCO DB BASE METALS FUND shows low risk based on this filing. The filing is a standard 10-K for an exchange-traded fund, which typically involves lower risk compared to operating companies, with the primary risks related to market fluctuations in base metals.

Analyst Insight

Investors should review the specific commodity futures contracts and affiliated ETF holdings detailed in the 10-K to assess the fund's current strategy and potential performance drivers.

Key Numbers

• 2023-12-31 — Fiscal Year End (The report covers the fiscal year ending on this date.)
• 2024-02-23 — Filing Date (The date the 10-K report was filed with the SEC.)
• May-2023 — LME Aluminum Expiration (Expiration date for a specific LME Aluminum futures contract.)
• May-2024 — LME Copper Expiration (Expiration date for a specific LME Copper futures contract.)

Key Players & Entities

• INVESCO DB BASE METALS FUND (company) — Filer of the 10-K report
• DBB (company) — Ticker symbol for Invesco DB Base Metals Fund
• 2023-12-31 (date) — Fiscal year end date
• LME Aluminum (commodity) — Type of commodity futures contract held
• LME Copper (commodity) — Type of commodity futures contract held
• Invesco Treasury Collateral ETF (company) — An affiliated Exchange-Traded Fund held by the fund
• 3500 Lacey Road, Suite 700, Downers Grove, IL 60515 (address) — Business and mailing address of the fund
• 2024-02-23 (date) — Filing date of the 10-K report

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The value of the fund's investments is subject to significant volatility due to fluctuations in the prices of base metals.
• Futures Contract Risk [medium — financial]: Investments in commodity futures contracts carry the risk of loss due to market movements and leverage.
• Geopolitical and Economic Factors [medium — market]: Global economic conditions and geopolitical events can significantly impact base metal prices and the fund's performance.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.

Key Financial Figures

• $13 — to the Commodity Broker were less than $13.00, $13.00 and $13.00 per round-turn tr
• $13.00 — Commodity Broker were less than $13.00, $13.00 and $13.00 per round-turn trade 1 for t

Filing Documents

• dbb-20231231.htm (10-K) — 1950KB
• dbb-ex23_1.htm (EX-23.1) — 3KB
• dbb-ex31_1.htm (EX-31.1) — 12KB
• dbb-ex31_2.htm (EX-31.2) — 13KB
• dbb-ex32_1.htm (EX-32.1) — 7KB
• dbb-ex32_2.htm (EX-32.2) — 7KB
• dbb-ex97.htm (EX-97) — 38KB
• img41139655_0.jpg (GRAPHIC) — 174KB
• img41139655_1.jpg (GRAPHIC) — 167KB
• 0000950170-24-019050.txt (&nbsp;) — 7411KB
• dbb-20231231.xsd (EX-101.SCH) — 678KB
• dbb-20231231_htm.xml (XML) — 1179KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 6 ITEM 1B. UNRESOLVED STAFF COMMENTS 20 ITEM 1C. CYBERSECURITY 20 ITEM 2.

PROPERTIES

PROPERTIES 21 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 21 ITEM 4. MINE SAFETY DISCLOSURES 21 PART II 22 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 22 ITEM 6. RESERVED 22 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 31 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 33 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 55 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 55 ITEM 9B. OTHER INFORMATION 55 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 55 PART III 56 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 56 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 58 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 59 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 59 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 59 PART IV 60 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 60 i CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K (this "Report") includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The matters discussed throughout this Report that are not historical facts are forward-looking statements. These forward-looking statements are based on the Invesco DB Base Metals Fund's (the "Fund") and Invesco Capital Management LLC's (the "Managing Owner") current expectations, estimates and projections about the future results, performance, prospects, and opportunities of the Fund and the Fund's business and industry and their beliefs and assumptions about future events and speak only as of the date on which they are made. Words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "outlook," and "estimate," as well as similar words and phrases, signify forward-looking statements. Forward-looking statements are not guarantees of future results. Future economic and industry trends that could potentially impact the Fund and its performance are difficult to predict. Conditions, risks and uncertainties in the markets for financial instruments that the Fund trades, in the markets for related physical commodities, in the legal and regulatory regimes applicable to the Managing Owner, the Fund, and the Fund's service providers, in the broader economy and in global politics may cause actual results to differ materially from those expressed by such forwar

B USINESS

ITEM 1. B USINESS. Introduction Invesco DB Base Metals Fund (the "Fund"), a separate series of Invesco DB Multi-Sector Commodity Trust (the "Trust"), a Delaware statutory trust organized in seven separate series, was formed on August 3, 2006. The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Fund, as amended (the "Trust Agreement"). The Fund has an unlimited number of shares authorized for issuance. Invesco Capital Management LLC has served as the managing owner (the "Managing Owner"), commodity pool operator and commodity trading advisor of the Fund since February 23, 2015. The Managing Owner holds 40 general shares (the "General Shares") of the Fund. The fiscal year end of the Fund is December 31 st . The Fund seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Industrial Metals Index Excess Return (the "Index") over time, plus the excess, if any, of the sum of the Fund's interest income from its holdings of United States Treasury Obligations ("Treasury Income"), dividends from its holdings in money market mutual funds (affiliated or otherwise) ("Money Market Income") and dividends or distributions of capital gains from its holdings of T-Bill ETFs (as defined below) ("T-Bill ETF Income") over the expenses of the Fund. The Fund invests in futures contracts in an attempt to track its Index. The Index is intended to reflect the change in market value of the base metals sector. The commodities comprising the Index are aluminum, zinc and copper—Grade A (each an "Index Commodity", and collectively, the "Index Commodities"). The Fund may invest directly in United States Treasury Obligations. The Fund may also gain exposure to United States Treasury Obligations through investments in exchange-traded funds ("ETFs") (affiliated or otherwise) that track indexes that measure the performance of

View Full Filing

View this 10-K filing on SEC EDGAR