Invesco Db Agriculture Fund 10-Q for FY2021 Q1

Invesco Db Agriculture Fund (DBA)

10-Q 2021-05-07 For: 2021-03-31

Added on April 11, 2026

About this 10-Q

Invesco Db Agriculture Fund filed this 10-Q on May 7, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $31.25M; compared with a net loss of $52.8M a year earlier

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Delaware	87-0778078
(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)


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

Large Accelerated Filer	☐	Accelerated Filer	☒

Non-Accelerated Filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

			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	27

PART II.		OTHER INFORMATION	28

	Item 1.	Legal Proceedings	28
	Item 1A.	Risk Factors	28
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
	Item 3.	Defaults Upon Senior Securities	28
	Item 4.	Mine Safety Disclosures	28
	Item 5.	Other Information	28
	Item 6.	Exhibits	28

SIGNATURES			30

	March 31,		December 31,
	2021		2020
Assets
United States Treasury Obligations, at value (cost $352,922,172 and $209,922,016, respectively)	$	352,973,536	$	209,933,439
Affiliated Investments, at value (cost $448,279,117 and $425,595,133, respectively)		448,506,369		425,809,714
Other investments:
Variation margin receivable- Commodity Futures Contracts		14,113,534		6,464,955
Cash held by custodian		—		6,658,401
Receivable for:
Dividends from affiliates		10,878		5,484
Total assets	$	815,604,317	$	648,871,993
Liabilities
Payable for:
Fund shares reacquired	$	6,763,542	$	—
Management fees		593,752		404,073
Brokerage commissions and fees		3,756		4,487
Total liabilities		7,361,050		408,560
Commitments and Contingencies (Note 10)
Equity
Shareholder's equity—General Shares		676		645
Shareholders' equity—Shares		808,242,591		648,462,788
Total shareholders' equity		808,243,267		648,463,433
Total liabilities and equity	$	815,604,317	$	648,871,993
General Shares outstanding		40		40
Shares outstanding		47,800,000		40,200,000
Net asset value per share	$	16.91	$	16.13
Market value per share	$	16.99	$	16.14

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.045% due June 10, 2021		7.42	%	$	59,998,658	$	60,000,000
U.S. Treasury Bills, 0.070% due August 5, 2021 ^(b)		14.85			119,993,700		120,000,000
U.S. Treasury Bills, 0.050% due August 12, 2021		4.33			34,997,543		35,000,000
U.S. Treasury Bills, 0.060% due September 9, 2021		4.45			35,996,780		36,000,000
U.S. Treasury Bills, 0.035% due October 7, 2021 ^(b)		11.88			95,988,030		96,000,000
U.S. Treasury Bills, 0.135% due November 4, 2021		0.74			5,998,825		6,000,000
Total United States Treasury Obligations (cost $352,922,172)		43.67	%	$	352,973,536
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $89,044,868) ^(c)		11.04	%	$	89,272,120		844,700
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 0.03% (cost $359,234,249) ^(c)(d)		44.45			359,234,249		359,234,249
Total Affiliated Investments (cost $448,279,117)		55.49	%	$	448,506,369
Total Investments in Securities (cost $801,201,289)		99.16	%	$	801,479,905

Open Commodity Futures Contracts	Number of Contracts		Expiration Date	Notional Value		Value^(e)			Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
CBOT Corn		4,489	September - 2021	$	111,327,200	$	21,925,737		$	21,925,737
CBOT Soybean		1,773	November - 2021		111,366,562		19,746,363			19,746,363
CBOT Wheat		1,483	July - 2021		45,657,862		3,582,498			3,582,498
CBOT Wheat KCB		1,567	July - 2021		45,580,113		3,855,489			3,855,489
CME Feeder Cattle		401	May - 2021		29,954,700		1,019,880			1,019,880
CME Lean Hogs		1,920	June - 2021		80,870,400		7,858,091			7,858,091
CME Live Cattle		1,888	June - 2021		92,814,080		3,728,990			3,728,990
NYB-ICE Cocoa		3,459	May - 2021		81,217,320		(4,013,296	)		(4,013,296	)
NYB-ICE Coffee		1,900	May - 2021		87,993,750		(2,744,852	)		(2,744,852	)
NYB-ICE Cotton		546	May - 2021		22,080,240		(1,215,375	)		(1,215,375	)
NYB-ICE Sugar		6,008	September - 2021		99,454,029		9,990,997			9,990,997
Total Commodity Futures Contracts						$	63,734,522		$	63,734,522

Description	Percentage of Shareholders’ Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.080% due March 11, 2021 ^(b)		13.88	%	$	89,989,275	$	90,000,000
U.S. Treasury Bills, 0.090% due June 10, 2021	9.25				59,980,964		60,000,000
U.S. Treasury Bills, 0.140% due October 7, 2021		9.24			59,963,200		60,000,000
Total United States Treasury Obligations (cost $209,922,016)		32.37	%	$	209,933,439
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $89,044,868) ^(c)		13.77	%	$	89,259,449		844,700
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 0.03% (cost $336,550,265) ^(c)(d)		51.90			336,550,265		336,550,265
Total Affiliated Investments (cost $425,595,133)		65.67	%	$	425,809,714
Total Investments in Securities (cost $635,517,149)		98.04	%	$	635,743,153

	Three Months Ended
	March 31,
	2021			2020
Income
Interest Income	$	50,565		$	627,263
Dividends from Affiliates		43,692			633,978
Total Income		94,257			1,261,241
Expenses
Management Fees		1,618,012			694,448
Brokerage Commissions and Fees		124,284			54,601
Interest Expense		1,623			3,966
Total Expenses		1,743,919			753,015
Less: Waivers		(101,570	)		(56,685	)
Net Expenses		1,642,349			696,330
Net Investment Income (Loss)		(1,548,092	)		564,911
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
Commodity Futures Contracts		40,274,232			(13,362,735	)
Net Realized Gain (Loss)		40,274,232			(13,362,735	)
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		39,941			270,857
Affiliated Investments		12,671			487,305
Commodity Futures Contracts		(7,533,636	)		(40,760,415	)
Net Change in Unrealized Gain (Loss)		(7,481,024	)		(40,002,253	)
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		32,793,208			(53,364,988	)
Net Income (Loss)	$	31,245,116		$	(52,800,077	)

	General Shares					Shares						Total
	Shares		Total Equity			Shares			Total Equity			Shareholders' Equity
Balance at December 31, 2020		40	$	645			40,200,000		$	648,462,788		$	648,463,433
Purchases of Shares							12,600,000			213,129,234			213,129,234
Redemption of Shares							(5,000,000	)		(84,594,516	)		(84,594,516	)
Net Increase (Decrease) due to Share Transactions							7,600,000			128,534,718			128,534,718
Net Income (Loss)
Net Investment Income (Loss)				(2	)					(1,548,090	)		(1,548,092	)
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				40						40,274,192			40,274,232
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				(7	)					(7,481,017	)		(7,481,024	)
Net Income (Loss)				31						31,245,085			31,245,116
Net Change in Shareholders' Equity		—		31			7,600,000			159,779,803			159,779,834
Balance at March 31, 2021		40	$	676			47,800,000		$	808,242,591		$	808,243,267

	Level 1			Level 2		Level 3		Total
Investments in Securities
United States Treasury Obligations	$	—		$	352,973,536	$	—	$	352,973,536
Exchange-Traded Fund		89,272,120			—		—		89,272,120
Money Market Mutual Fund		359,234,249			—		—		359,234,249
Total Investments in Securities		448,506,369			352,973,536		—		801,479,905
Other Investments - Assets^(a)
Commodity Futures Contracts		71,708,045			—		—		71,708,045
Other Investments - Liabilities^(a)
Commodity Futures Contracts		(7,973,523	)		—		—		(7,973,523	)
Total Other Investments		63,734,522			—		—		63,734,522
Total Investments	$	512,240,891		$	352,973,536	$	—	$	865,214,427

	March 31, 2021					December 31, 2020
Risk Exposure/Derivative Type ^(a)	Assets		Liabilities			Assets		Liabilities
Commodity risk
Commodity Futures Contracts	$	71,708,045	$	(7,973,523	)	$	71,268,158	$	—

		For the Three Months Ended
	Location of Gain (Loss) on Derivatives	March 31,
Risk Exposure/Derivative Type	Recognized in Income	2021			2020
Commodity risk
Commodity Futures Contracts	Net Realized Gain (Loss)	$	40,274,232		$	(13,362,735	)
	Net Change in Unrealized Gain (Loss)		(7,533,636	)		(40,760,415	)
Total		$	32,740,596		$	(54,123,150	)

	Value 12/31/2020		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)		Realized Gain (Loss)		Value 03/31/2021		Dividend Income
Invesco Treasury Collateral ETF	$	89,259,449	$	—	$	—		$	12,671	$	—	$	89,272,120	$	13,279
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		336,550,265		394,242,761		(371,558,777	)		—		—		359,234,249		30,413
Total	$	425,809,714	$	394,242,761	$	(371,558,777	)	$	12,671	$	—	$	448,506,369	$	43,692

	Value 12/31/2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)		Realized Gain (Loss)		Value 03/31/2020		Dividend Income
Invesco Treasury Collateral ETF	$	79,123,338	$	—	$	—		$	487,305	$	—	$	79,610,643	$	329,786
Investments in Affiliated Money Market Funds:
Invesco Premier U.S. Government Money Portfolio, Institutional Class	$	120,898,494		159,490,157		(215,224,278	)		—		—		65,164,373		304,192
Total	$	200,021,832	$	159,490,157	$	(215,224,278	)	$	487,305	$	—	$	144,775,016	$	633,978

	Three Months Ended
	March 31,
	2021			2020
Cash flows from operating activities:
Net Income (Loss)	$	31,245,116		$	(52,800,077	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Cost of securities purchased		(232,949,591	)		(133,372,166	)
Proceeds from securities sold and matured		90,000,000			137,000,000
Cost of affiliated investments purchased		(394,242,761	)		(159,490,157	)
Proceeds from affiliated investments sold		371,558,777			215,224,278
Net accretion of discount on United States Treasury Obligations		(50,565	)		(624,438	)
Net change in unrealized (gain) loss on United States Treasury Obligations and Affiliated Investments		(52,612	)		(758,162	)
Change in operating assets and liabilities:
Variation margin - Commodity Futures Contracts		(7,648,579	)		(861,158	)
Dividends from affiliates		(5,394	)		9,104
Management fees		189,679			(37,448	)
Brokerage commissions and fees		(731	)		1,472
Net cash provided by (used in) operating activities		(141,956,661	)		4,291,248
Cash flows from financing activities:
Proceeds from purchases of Shares		213,129,234			34,463,738
Redemption of Shares		(77,830,974	)		(38,916,870	)
Net cash provided by (used in) financing activities		135,298,260			(4,453,132	)
Net change in cash		(6,658,401	)		(161,884	)
Cash at beginning of period		6,658,401			161,884
Cash at end of period	$	—		$	—
Supplemental disclosure of cash flow information
Cash paid for interest	$	1,623		$	3,966

Index Commodity	Fund Weight (%)
Corn		13.77	%
Soybeans		13.78
Wheat		5.65
Kansas City Wheat		5.64
Sugar		12.31
Cocoa		10.04
Coffee		10.89
Cotton		2.73
Live Cattle		11.48
Feeder Cattle		3.70
Lean Hogs		10.01
Closing Level as of March 31, 2021:		100.00	%

	AGGREGATE RETURNS FOR INDICES IN THE DBIQ AGRICULTURE TR™
	Three Months Ended
	March 31,
Underlying Index	2021			2020
DB Corn Indices		11.10	%		(12.53	)%
DB Soybean Indices		13.01			(10.09	)
DB Wheat Indices		(1.98	)		0.10
DB Kansas City Wheat Indices		(4.19	)		(0.07	)
DB Sugar Indices		5.28			(22.26	)
DB Cocoa Indices		(6.11	)		(11.22	)
DB Coffee Indices		(5.33	)		(9.49	)
DB Cotton Indices		1.94			(26.35	)
DB Live Cattle Indices		3.88			(22.68	)
DB Feeder Cattle Indices		0.82			(16.26	)
DB Lean Hogs Indices		30.30			(36.80	)
AGGREGATE RETURN		5.03	%		(14.94	)%

								For the Year Ended
								December 31, 2020
Description	Net Assets		Daily Volatility			VaR* (99 Percentile)		Number of times VaR Exceeded
Invesco DB Agriculture Fund	$	648,463,433		0.68	%	$	10,310,906		19

Period of Redemption	Total Number of Shares Redeemed		Average Price Paid per Share
January 1, 2021 to January 31, 2021		200,000	$	16.30
February 1, 2021 to February 28, 2021		300,000	$	16.49
March 1, 2021 to March 31, 2021		4,500,000	$	16.98
Total		5,000,000	$	16.92

31.1		Certification required under Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

31.2		Certification required under Exchange Act Rules 13a-14 and 15d-14 (filed herewith)

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101		Interactive data file pursuant to Rule 405 of Regulation S-T: (i) the Statements of Financial Condition of Invesco DB Agriculture Fund — March 31, 2021 and December 31, 2020 (Unaudited), (ii) the Schedule of Investments of Invesco DB Agriculture Fund — March 31, 2021 (Unaudited), (iii) the Schedule of Investments of Invesco DB Agriculture Fund — December 31, 2020 (Unaudited), (iv) the Statements of Income and Expenses of Invesco DB Agriculture Fund — For the Three Months Ended March 31, 2021 and 2020 (Unaudited), (v) the Statement of Changes in Shareholders’ Equity of Invesco DB Agriculture Fund —For the Three Months Ended March 31, 2021 (Unaudited), (vi) the Statement of Changes in Shareholders’ Equity of Invesco DB Agriculture Fund — For the Three Months Ended March 31, 2020 (Unaudited), (vii) the Statements of Cash Flows of Invesco DB Agriculture Fund — For the Three Months Ended March 31, 2021 and 2020 (Unaudited), and (viii) Notes to Unaudited Financial Statements of Invesco DB Agriculture Fund — March 31, 2021.

101.INS		Inline XBRL Instance Document – The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

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104		The cover page of the Fund's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL

	Invesco DB Multi-Sector Commodity Trust on its own behalf and with respect to Invesco DB Agriculture Fund

	By:	Invesco Capital Management LLC,
		its Managing Owner

Dated: May 6, 2021		By:	/s/ ANNA PAGLIA
		Name:	Anna Paglia
		Title:	Principal Executive Officer

Dated: May 6, 2021		By:	/s/ KELLI GALLEGOS
		Name:	Kelli Gallegos
		Title:	Principal Financial and Accounting Officer, Investment Pools