Citi launches new commodity indexes

Investment bank Citi has launched a new commodity enhanced beta index series, called the Citi Cubes Commodity Indices.

"By investing further out on the curve, we not only provide clients with the potential for enhanced returns but also allow them to avoid some of the high volatility typically seen in front-month investments," says Ravi Ramachandran, head of commodity new products structuring at Citi.

The indexes invest in longer maturity futures contracts up to one year and are published in excess return and total return forms for 26 different commodities.

The Dubai Gold & Commodities Exchange also announced earlier in September that it will use its futures prices to create commodity indexes for the global investment banking and fund industry in the Middle Eastern region.





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