INVESCO DB BASE METALS FUND
For the period ended Dec 31, 2024. Filed Feb 26, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 26, 2025
DBB$24.58+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-02-23.
0000950170-24-019050
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2024-12-31; filed 2025-02-26.
0000950170-25-027245
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 75 current paragraphs.
64 unchanged; 10 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Industrial metals ended 2024 higher, largely thanks to gains in zinc, though copper also contributed. Both metals were supported by shortfalls in concentrate supplies and plunging treatment and refining charges (i.e., the profit for smelters to refine the metal), forcing cutbacks in refined metal supply. Aluminum was the weakest of the three industrial metals but still exhibited slight gains on tightening physical fundamentals. Other drivers of positive performance included fresh US and UK sanctions on Russian copper, aluminum, and nickel in April, an improving macroeconomic backdrop leading into the Federal Reserve interest rate easing in September, and optimism around China’s stimulus measures. However, US dollar strength and tariff concerns added some pressure on the metals to end the year.
Removed paragraphs (1)
Previous report
Despite posting its strongest quarterly gain since 2010 in the first quarter of the year leading up to Russia’s invasion of Ukraine, the Fund failed to lock in a gain in 2022, ending down over 10%. China’s persistent adherence to its stringent zero-COVID policies and accelerating recession concerns in Europe, US and China heavily weighed on both physical and investment demand, sending the sector into freefall throughout the third quarter – China is the world’s largest consumer of industrial metals. Prices did rebound quite significantly in the last quarter as sentiment improved with growing optimism around a Chinese reopening and expectations for a shift in Federal Reserve policies following a larger-than-expected drop in US inflation.
Reworded paragraphs (10)
Previous wording
On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more blocks of 50,000 Shares (“Creation Units”). Redemption orders must be placed by 10:00 a.m., Eastern Time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to two business days after the redemption order date. Redemption orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in integral multiples of 50,000 and only through an Authorized Participant.
Current wording
On any business day, an Authorized Participant may place an order with the Transfer Agent to redeem one or more blocks of 50,000 Shares (“Creation Units”). Redemption orders must be placed by 10:00 a.m., Eastern Time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. The day on which a redemption order is settled is the redemption order settlement date. As provided below, the redemption order settlement date may occur up to one business day after the redemption order date. Redemption orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Creation Units. Individual Shareholders may not redeem directly from the Fund. Instead, individual Shareholders may only redeem Shares in integral multiples of 50,000 and only through an Authorized Participant.
Previous wording
Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to two business days after the redemption order date. By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.
Current wording
Unless otherwise agreed to by the Managing Owner and the Authorized Participant as provided in the next sentence, by placing a redemption order, an Authorized Participant agrees to deliver the Creation Units to be redeemed through DTC’s book-entry system to the Fund no later than the redemption order settlement date as of 2:45 p.m., Eastern Time, on the business day immediately following the redemption order date. Upon submission of a redemption order, the Authorized Participant may request the Managing Owner to agree to a redemption order settlement date up to one business day after the redemption order date. By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the non-refundable transaction fee due for the redemption order.
Previous wording
As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jefferies LLC, JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.
Current wording
As of the date of this Report, each of ABN AMRO Clearing Chicago LLC, Bank of America Securities, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Cantor Fitzgerald & Co., Citadel Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Goldman Sachs Execution & Clearing LP, Interactive Brokers LLC, Jane Street Capital LLC, Jefferies LLC, JP Morgan Securities Inc., Morgan Stanley & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, Virtu Americas LLC and Virtu Financial Capital Markets LLC has executed a Participant Agreement and are the only Authorized Participants.
Previous wording
Net cash flow provided by (used in) operating activities was $96.3 million and $196.9 million for the years ended December 31, 2023 and 2022, respectively. These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations and affiliated investments. The Fund invests in futures contracts in an attempt to track its Index. The Fund invests in United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes only. While the Fund’s performance reflects the appreciation and depreciation of those holdings, the Fund’s performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.
Current wording
Net cash flow provided by (used in) operating activities was $16.7 million and $96.3 million for the years ended December 31, 2024 and 2023, respectively. These amounts primarily include net income (loss), net purchases and sales of money market mutual funds and net purchases and sales of United States Treasury Obligations and affiliated investments. The Fund invests in futures contracts in an attempt to track its Index. The Fund invests in United States Treasury Obligations, money market mutual funds and T-Bill ETFs (affiliated or otherwise), if any, for margin and/or cash management purposes only. While the Fund’s performance reflects the appreciation and depreciation of those holdings, the Fund’s performance, whether positive or negative, is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the Index.
Previous wording
During the year ended December 31, 2023, $252.5 million was paid to purchase United States Treasury Obligations and $347.0 million was received from sales and maturing United States Treasury Obligations. During the year ended December 31, 2022, $453.9 million was paid to purchase United States Treasury Obligations and $422.0 million was received from sales and maturing United States Treasury Obligations. $486.0 million was received from sales of affiliated investments and $375.7 million was paid to purchase affiliated investments during the year ended December 31, 2023. $710.5 million was received from sales of affiliated investments and $556.4 million was paid to purchase affiliated investments during the year ended December 31, 2022.
Current wording
During the year ended December 31, 2024, $122.9 million was paid to purchase United States Treasury Obligations and $133.0 million was received from sales and maturing United States Treasury Obligations. During the year ended December 31, 2023, $252.5 million was paid to purchase United States Treasury Obligations and $347.0 million was received from sales and maturing United States Treasury Obligations. $230.2 million was received from sales of affiliated investments and $228.3 million was paid to purchase affiliated investments during the year ended December 31, 2024. 486.0 million was received from sales of affiliated investments and $375.7 million was paid to purchase affiliated investments during the year ended December 31, 2023.
Previous wording
The Fund’s net cash flow provided by (used in) financing activities was $(98.2) million and $(194.9) million during the years ended December 31, 2023 and 2022, respectively. This included $106.7 million and $253.0 million from the sale of Shares to Authorized Participants and $196.1 million and $445.7 million from Shares redeemed by Authorized Participants during the years ended December 31, 2023 and 2022, respectively. Distributions paid to Shareholders were $8.8 million and $2.2 million during the years ended December 31, 2023 and 2022, respectively.
Current wording
The Fund’s net cash flow provided by (used in) financing activities was $(16.7) million and $(98.2) million during the years ended December 31, 2024 and 2023, respectively. This included $143.1 million and $106.7 million from the sale of Shares to Authorized Participants and $154.0 million and $196.1 million from Shares redeemed by Authorized Participants during the years ended December 31, 2024 and 2023, respectively. Distributions paid to Shareholders were $5.8 million and $8.8 million during the years ended December 31, 2024 and 2023, respectively.
Previous wording
For the year ended December 31, 2022, the NYSE Arca market value of each Share decreased from $22.18 per Share to $19.57 per Share. The Share price low and high for the year ended December 31, 2022 and related change from the Share price on December 31, 2021 was as follows Shares traded at a low of $17.54 per Share (-20.92%) on September 27, 2022, and a high of $26.95 per Share (+21.51%) on March 4, 2022. On December 23, 2022. the Fund paid a distribution of $0.18371 for each General Share and Share to holders of record as of December 20, 2022. Therefore, the total return for the Fund on a market value basis was -10.93%.
Current wording
For the year ended December 31, 2024, the NYSE Arca market value of each Share increased from $18.31 per Share to $18.84 per Share. The Share price low and high for the year ended December 31, 2024 and related change from the Share price on December 31, 2023 was as follows: Shares traded at a low of $16.80 per Share (-8.25%) on February 9, 2024, and a high of $21.65 per Share (+18.24%) on May 21, 2024. On December 27, 2024, the Fund paid a distribution of $0.89614 for each General Share and Share to holders of record as of December 23, 2024. Therefore, the total return for the Fund on a market value basis was+7.77%.
Previous wording
For the year ended December 31, 2023, the NYSE Arca market value of each Share decreased from $19.57 per Share to $18.31 per Share. The Share price low and high for the year ended December 31, 2023 and related change from the Share price on December 31, 2022 was as follows: Shares traded at a low of $17.50 per Share (-10.58%) on May 25, 2023, and a high of $22.28 per Share (+13.85%) on January 26, 2023. On December 22, 2023, the Fund paid a distribution of $1.31965 for each General Share and Share to holders of record as of December 19, 2023. Therefore, the total return for the Fund on a market value basis was +0.56%.
Current wording
For the year ended December 31, 2023, the NYSE Arca market value of each Share decreased from $19.57 per Share to$18.31 per Share. The Share price low and high for the year ended December 31, 2023 and related change from the Share price on December 31, 2022 was as follows Shares traded at a low of $17.50 per Share (-10.58%) on May 25, 2023, and a high of $22.28 per Share (+13.85%) on January 26, 2023. On December 23, 2023. the Fund paid a distribution of $1.31965 for each General Share and Share to holders of record as of December 20, 2023. Therefore, the total return for the Fund on a market value basis was +0.56%.
Previous wording
For the year ended December 31, 2022, the NAV of each Share decreased from $22.14 per Share to $19.50 per Share. Falling commodity futures contract prices for Copper, Zinc and Aluminum during the year ended December 31, 2022 contributed to an overall 12.18% decrease in the level of the Index and to a 10.38% decrease in the level of the DBIQ-OY Industrial Metals TR™. On December 23, 2022, the Fund paid a distribution of $0.18371 for each General Share and Share to holders of record as of December 20, 2022. Therefore, the total return for the Fund on a NAV basis was -11.09%.
Current wording
For the year ended December 31, 2024, the NAV of each Share increased from $18.28 per Share to $18.79 per Share. Rising commodity futures contract prices for Copper, Zinc and Aluminum during the year ended December 31, 2024 contributed to an overall 3.11% increase in the level of the Index and to a 8.51% increase in the level of the DBIQ-OY Industrial Metals TR™. On December 27, 2024, the Fund paid a distribution of $0.89614 for each General Share and Share to holders of record as of December 23, 2024. Therefore, the total return for the Fund on a NAV basis was +7.69%.
Previous wording
Net income (loss) for the year ended December 31, 2022 was $(66.0) million, resulting from $5.9 million of income, net realized gain (loss) of $20.9 million, net change in unrealized gain (loss) of $(90.0) million and net operating expenses of $3.4 million.
Current wording
Net income (loss) for the year ended December 31, 2024 was $7.5 million, resulting from $6.9 million of income, net realized gain (loss) of $7.0 million, net change in unrealized gain (loss) of $(5.4) million and net operating expenses of $1.0 million.