Invesco DB Energy Fund 10-Q for FY2021 Q2

Invesco DB Energy Fund (DBE)

10-Q 2021-08-06 For: 2021-06-30

Added on April 11, 2026

About this 10-Q

Invesco DB Energy Fund filed this 10-Q on August 6, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $16.36M; up 107.5% from net income of $7.88M a year earlier

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Delaware	87-0778060
(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	DBE	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	10
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 4.	Controls and Procedures	32

PART II.	OTHER INFORMATION	33

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

SIGNATURES		35

	June 30,		December 31,
	2021		2020
Assets
United States Treasury Obligations, at value (cost $39,995,443 and $19,992,113, respectively)	$	39,996,269	$	19,993,340
Affiliated Investments, at value (cost $69,090,396 and $38,240,835, respectively)		69,118,537		38,268,976
Other investments:
Variation margin receivable - Commodity Futures Contracts		121,533		173,501
Cash held by custodian		—		246,166
Receivable for:
Dividends from affiliates		1,137		525
Total assets	$	109,237,476	$	58,682,508

Liabilities
Payable for:
Management fees		59,229		35,268
Brokerage commissions and fees		4,998		4,992
Total liabilities		64,227		40,260
Commitments and Contingencies (Note 10)

Equity
Shareholder's equity—General Shares		624		434
Shareholders' equity—Shares		109,172,625		58,641,814
Total shareholders' equity		109,173,249		58,642,248
Total liabilities and equity	$	109,237,476	$	58,682,508

General Shares outstanding		40		40
Shares outstanding		7,000,000		5,400,000
Net asset value per share	$	15.60	$	10.86
Market value per share	$	15.59	$	10.86

Description	Percentage of Shareholders' Equity			Value		Principal Value
United States Treasury Obligations ^(a)
U.S. Treasury Bills, 0.040% due August 5, 2021		16.49	%	$	17,999,317	$	18,000,000
U.S. Treasury Bills, 0.050% due August 12, 2021 ^(b)		4.58			4,999,723		5,000,000
U.S. Treasury Bills, 0.025% due September 9, 2021 ^(b)		1.83			1,999,839		2,000,000
U.S. Treasury Bills, 0.050% due October 7, 2021 ^(b)		4.58			4,999,422		5,000,000
U.S. Treasury Bills, 0.035% due December 2, 2021		9.16			9,997,968		10,000,000
Total United States Treasury Obligations (cost $39,995,443)		36.64	%	$	39,996,269
Affiliated Investments						Shares
Exchange-Traded Fund
Invesco Treasury Collateral ETF (cost $10,031,643)^(c)		9.21	%	$	10,059,784		95,200
Money Market Mutual Fund
Invesco Government & Agency Portfolio, Institutional Class, 0.03% (cost $59,058,753)^(c)(d)		54.10			59,058,753		59,058,753
Total Affiliated Investments (cost $69,090,396)		63.31	%	$	69,118,537
Total Investments in Securities (cost $109,085,839)		99.95	%	$	109,114,806

Open Commodity Futures Contracts	Number of Contracts	Expiration Date	Notional Value		Value^(e)		Unrealized Appreciation (Depreciation)^(e)
Long Futures Contracts
ICE-UK Brent Crude	334	November - 2021	$	23,971,180	$	6,721,336	$	6,721,336
NYMEX Natural Gas	246	April - 2022		7,175,820		1,023,638		1,023,638
NYMEX NY Harbor ULSD	286	May - 2022		24,864,840		910,380		910,380
NYMEX RBOB Gasoline	306	November - 2021		26,029,156		7,105,633		7,105,633
NYMEX WTI Crude	390	December - 2021		27,077,700		5,353,250		5,353,250
Total Commodity Futures Contracts					$	21,114,237	$	21,114,237

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Income
Interest Income	$	4,889		$	35,444		$	9,763		$	125,726
Dividends from Affiliates	$	3,438			30,002			7,865			146,458
Total Income		8,327			65,446			17,628			272,184
Expenses
Management Fees		173,024			86,753			311,916			190,251
Brokerage Commissions and Fees		4,267			5,029			6,960			11,500
Interest Expense		468			1,077			745			3,029
Total Expenses		177,759			92,859			319,621			204,780
Less: Waivers		(2,777	)		(11,477	)		(12,717	)		(22,692	)
Net Expenses		174,982			81,382			306,904			182,088
Net Investment Income (Loss)		(166,655	)		(15,936	)		(289,276	)		90,096
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		—			—			—			(600	)
Affiliated Investments		—			—			—			21,121
Commodity Futures Contracts		10,187,803			(11,181,695	)		16,668,677			(19,751,001	)
Net Realized Gain (Loss)		10,187,803			(11,181,695	)		16,668,677			(19,730,480	)
Net Change in Unrealized Gain (Loss) on
United States Treasury Obligations		(4,299	)		(32,192	)		(401	)		(5,818	)
Affiliated Investments		(1,428	)		(37,128	)		—			9,086
Commodity Futures Contracts		6,341,209			19,151,540			12,716,862			(2,527,864	)
Net Change in Unrealized Gain (Loss)		6,335,482			19,082,220			12,716,461			(2,524,596	)
Net Realized and Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts		16,523,285			7,900,525			29,385,138			(22,255,076	)
Net Income (Loss)	$	16,356,630		$	7,884,589		$	29,095,862		$	(22,164,980	)

	General Shares					Shares						Total
	Shares		Total Equity			Shares			Total Equity			Shareholders' Equity
Balance at March 31, 2021		40	$	522			6,500,000		$	84,760,060		$	84,760,582
Purchases of Shares							1,500,000			22,302,096			22,302,096
Redemption of Shares							(1,000,000	)		(14,246,059	)		(14,246,059	)
Net Increase (Decrease) due to Share Transactions							500,000			8,056,037			8,056,037
Net Income (Loss)
Net Investment Income (Loss)				(1	)					(166,654	)		(166,655	)
Net Realized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				64						10,187,739			10,187,803
Net Change in Unrealized Gain (Loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts				39						6,335,443			6,335,482
Net Income (Loss)				102						16,356,528			16,356,630
Net Change in Shareholders' Equity		—		102			500,000			24,412,565			24,412,667
Balance at June 30, 2021		40	$	624			7,000,000		$	109,172,625		$	109,173,249

	Level 1		Level 2		Level 3		Total
Investments in Securities
United States Treasury Obligations	$	—	$	39,996,269	$	—	$	39,996,269
Exchange-Traded Fund		10,059,784		—		—		10,059,784
Money Market Mutual Fund		59,058,753		—		—		59,058,753
Total Investments in Securities		69,118,537		39,996,269		—		109,114,806
Other Investments - Assets ^(a)
Commodity Futures Contracts		21,114,237		—		—		21,114,237
Total Investments	$	90,232,774	$	39,996,269	$	—	$	130,229,043

	June 30, 2021				December 31, 2020
Risk Exposure/Derivative Type ^(a)	Assets		Liabilities		Assets		Liabilities
Commodity risk
Commodity Futures Contracts	$	21,114,237	$	—	$	8,483,438	$	(86,063	)

		For the Three Months Ended
	Location of Gain (Loss) on Derivatives	June 30,
Risk Exposure/Derivative Type	Recognized in Income	2021		2020
Commodity risk
Commodity Futures Contracts	Net Realized Gain (Loss)	$	10,187,803	$	(11,181,695	)
	Net Change in Unrealized Gain (Loss)		6,341,209		19,151,540
Total		$	16,529,012	$	7,969,845

		For the Six Months Ended
	Location of Gain (Loss) on Derivatives	June 30,
Risk Exposure/Derivative Type	Recognized in Income	2021		2020
Commodity risk
Commodity Futures Contracts	Net Realized Gain (Loss)	$	16,668,677	$	(19,751,001	)
	Net Change in Unrealized Gain (Loss)		12,716,862		(2,527,864	)
Total		$	29,385,539	$	(22,278,865	)

	Value 03/31/2021		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2021		Dividend Income
Invesco Treasury Collateral ETF	$	10,061,212	$	—	$	—		$	(1,428	)	$	—	$	10,059,784	$	131
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		40,943,463		57,373,327		(39,258,037	)		—			—		59,058,753		3,307
Total	$	51,004,675	$	57,373,327	$	(39,258,037	)	$	(1,428	)	$	—	$	69,118,537	$	3,438

	Value 12/31/2020		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2021		Dividend Income
Invesco Treasury Collateral ETF	$	10,059,784	$	—	$	—		$	—		$	—	$	10,059,784	$	1,628
Investments in Affiliated Money Market Funds:
Invesco Government & Agency Portfolio, Institutional Class		28,209,192		109,169,835		(78,320,274	)		—			—		59,058,753	6,237
Total	$	38,268,976	$	109,169,835	$	(78,320,274	)	$	—		$	—	$	69,118,537	$	7,865

	Value 03/31/2020		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2020		Dividend Income
Invesco Treasury Collateral ETF	$	10,109,288	$	—	$	—		$	(37,128	)	$	—	$	10,072,160	$	23,004
Investments in Affiliated Money Market Funds:
Invesco Premier U.S. Government Money Portfolio, Institutional Class		12,174,384		59,668,217		(41,163,888	)		—			—		30,678,713		6,998
Total	$	22,283,672	$	59,668,217	$	(41,163,888	)	$	(37,128	)	$	—	$	40,750,873	$	30,002

	Value 12/31/2019		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/2020		Dividend Income
Invesco Treasury Collateral ETF	$	20,031,492	$	—	$	(9,989,539	)	$	9,086		$	21,121	$	10,072,160	$	79,990
Investments in Affiliated Money Market Funds:
Invesco Premier U.S. Government Money Portfolio, Institutional Class		30,030,218		124,951,273		(124,302,778	)		—			—		30,678,713		66,468
Total	$	50,061,710	$	124,951,273	$	(134,292,317	)	$	9,086		$	21,121	$	40,750,873	$	146,458

Index Commodity	Fund Weight (%)
Light Sweet Crude Oil		24.81	%
Ultra Low Sulphur Diesel		22.79
Brent Crude Oil		21.98
RBOB Gasoline		23.86
Natural Gas		6.56
Closing Level as of June 30, 2021:		100.00	%

	Six Months Ended
	June 30,
	2021			2020
Cash flows from operating activities:
Net Income (Loss)	$	29,095,862		$	(22,164,980	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Cost of securities purchased		(32,993,567	)		(43,879,470	)
Proceeds from securities sold and matured		13,000,000			42,964,938
Cost of affiliated investments purchased		(109,169,835	)		(124,951,273	)
Proceeds from affiliated investments sold		78,320,274			134,292,317
Net accretion of discount on United States Treasury Obligations		(9,763	)		(124,942	)
Net realized (gain) loss on United States Treasury Obligations and Affiliated Investments		—			(20,521	)
Net change in unrealized (gain) loss on United States Treasury Obligations and Affiliated Investments		401			(3,268	)
Change in operating assets and liabilities:
Variation margin - Commodity Futures Contracts		51,968			(185,000	)
Dividends from affiliates		(612	)		16,414
Management fees		23,961			(6,980	)
Brokerage commissions and fees		6			58
Net cash provided by (used in) operating activities		(21,681,305	)		(14,062,707	)
Cash flows from financing activities:
Proceeds from purchases of Shares		39,621,226			54,777,347
Redemption of Shares		(18,186,087	)		(39,533,164	)
Net cash provided by (used in) financing activities		21,435,139			15,244,183
Net change in cash		(246,166	)		1,181,476
Cash at beginning of period		246,166			—
Cash at end of period	$	—		$	1,181,476
Supplemental disclosure of cash flow information
Cash paid for interest	$	745		$	3,029

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Net Asset Value
Net asset value per Share, beginning of period	$	13.04		$	8.19		$	10.86		$	14.62
Net realized and change in unrealized gain (loss) on United States Treasury Obligations, Affiliated Investments and Commodity Futures Contracts ^(a)		2.59			1.07			4.79			(5.38	)
Net investment income (loss) ^(b)		(0.03	)		—			(0.05	)		0.02
Net income (loss)		2.56			1.07			4.74			(5.36	)
Net asset value per Share, end of period	$	15.60		$	9.26		$	15.60		$	9.26
Market value per Share, beginning of period ^(c)	$	13.07		$	8.14		$	10.86		$	14.64
Market value per Share, end of period ^(c)	$	15.59		$	9.28		$	15.59		$	9.28

Ratio to average Net Assets ^(d)
Net investment income (loss)		(0.72	)%		(0.14	)%		(0.69	)%		0.36	%
Expenses, after waivers		0.75	%		0.70	%		0.73	%		0.72	%
Expenses, prior to waivers		0.77	%		0.80	%		0.76	%		0.81	%
Total Return, at net asset value ^(e)		19.63	%		13.06	%		43.65	%		(36.66	)%
Total Return, at market value ^(e)		19.28	%		14.00	%		43.55	%		(36.61	)%

	AGGREGATE RETURNS FOR INDICES IN THE DBIQ-OY ENERGY TR™
	Three Months Ended						Six Months Ended
	June 30,						June 30,
Underlying Index	2021			2020			2021			2020
DB Light Sweet Crude Oil Indices		23.07	%		13.91	%		53.00	%		(34.52	)%
DB Ultra Low Sulphur Diesel Indices		18.31			(3.67	)		40.74			(50.13	)
DB Brent Crude Oil Indices		19.90			11.67			41.83			(36.13	)
DB RBOB Gasoline Indices		19.51			37.41			50.46			(31.89	)
DB Natural Gas Indices		14.29			6.55			16.67			(19.91	)
AGGREGATE RETURN		19.82	%		13.43	%		44.11	%		(36.59	)%

								For the Six Months Ended June 30, 2021
								For the Six Months Ended June 30, 2021
Description	Net Assets		Daily Volatility			VaR* (99 Percentile)		Number of times VaR Exceeded
Invesco DB Energy Fund	$	109,173,249		1.34	%	$	3,400,694		2

								For the Year Ended December 31, 2020 Number of times VaR Exceeded

Description	Net Assets		Daily Volatility			VaR* (99 Percentile)
Invesco DB Energy Fund	$	58,642,248		2.15	%	$	2,940,135		21

Period of Redemption	Total Number of Shares Redeemed		Average Price Paid per Share
April 1, 2021 to April 30, 2021		400,000	$	13.32
May 1, 2021 to May 31, 2021		200,000		14.46
June 1, 2021 to June 30, 2021		400,000		15.07
Total		1,000,000	$	14.25


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 Energy Fund – June 30, 2021 and December 31, 2020 (Unaudited), (ii) the Schedule of Investments of Invesco DB Energy Fund – June 30, 2021 (Unaudited), (iii) the Schedule of Investments of Invesco DB Energy Fund – December 31, 2020 (Unaudited), (iv) the Statements of Income and Expenses of Invesco DB Energy Fund – For the Three and Six Months Ended June 30, 2021 and 2020 (Unaudited), (v) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Three Months Ended June 30, 2021 (Unaudited), (vi) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Three Months Ended June 30, 2020 (Unaudited), (vii) the Statements of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Six Months Ended June 30, 2021 (Unaudited), and (viii) the Statement of Changes in Shareholders’ Equity of Invesco DB Energy Fund – For the Six Months Ended June 30, 2020 (Unaudited), (ix) the Statements of Cash Flows of Invesco DB Energy Fund – For the Six Months Ended June 30, 2021 and 2020 (Unaudited), and (x) Notes to Unaudited Financial Statements of Invesco DB Energy Fund – June 30, 2021.



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104		The cover page of the Fund's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 formatted in Inline XBRL.

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

		By: Invesco Capital Management LLC,
		its Managing Owner

Dated: August 5, 2021		By:	/s/ ANNA PAGLIA
		Name:	Anna Paglia
		Title:	Principal Executive Officer

Dated: August 5, 2021		By:	/s/ KELLI GALLEGOS
		Name:	Kelli Gallegos
		Title:	Principal Financial and Accounting Officer, Investment Pools