Company Overview

Invesco DB Base Metals Fund is a commodity pool that trades futures contracts on aluminum, copper, and zinc with the goal of tracking the DBIQ Optimum Yield Industrial Metals Index. The Fund was formed in 2006 and is structured as a series of Invesco DB Multi-Sector Commodity Trust, a Delaware statutory trust.

Fund Performance

First Quarter 2024

• The Fund’s net asset value (NAV) per share fell from $18.28 to $17.94, a decrease of 1.86%. This was driven by declining aluminum and zinc futures prices, partially offset by rising copper futures.
• The Fund’s market price per share dropped from $18.31 to $17.95, a decrease of 1.97%.
• The benchmark DBIQ Optimum Yield Industrial Metals Index fell 2.98%, reflecting lower aluminum and zinc prices.

First Quarter 2023

• The Fund’s NAV per share climbed from $19.50 to $20.21, an increase of 3.64%, as futures prices rose for all three industrial metals.
• The market price per share rose from $19.57 to $20.19, up 3.17%.
• The DBIQ Index gained 2.27% due to higher commodity futures across all three industrial metals.

Investment Strategy

• The Fund aims to track the DBIQ Optimum Yield Industrial Metals Index by trading futures contracts on aluminum, copper and zinc.
• The index aims to mitigate the negative effects of contango and maximize the positive effects of backwardation in commodity futures curves.
• The Fund holds U.S. Treasuries, money market funds, and T-Bill ETFs to collateralize its futures trading and for cash management.

First Quarter 2024 Performance Drivers

Futures prices were mixed in Q1 2024 after large gains for industrial metals in 2023:

• Copper gained on smelter supply shortfalls and expanded Chinese capacity.
• Aluminum drifted slightly lower during the quarter.
• Zinc plunged on its exposure to China’s weakening property sector.

Outlook

• Industrial metal markets face uncertainty around geopolitical tensions over Ukraine and critical shortages of key commodities.
• Ongoing volatility is expected in metal prices related to smelter production costs, energy prices, exchange inventory levels, and market demand.
• The Fund aims to provide returns that track its benchmark index, before fees and expenses, regardless of market conditions.

Financial Position

As of March 31, 2024, the Fund had total net assets of $XXX million. The Fund meets daily margin requirements related to its futures trading through its holdings of U.S. Treasuries, money market funds, and T-Bill ETFs. The Fund has no long-term debt or off-balance sheet arrangements.