The new UBS Bloomberg CMCI Food Index provides direct exposure to the food sector.It is available in US dollars, euros and Swiss francs and covers 13 commodities, including wheat, corn, soybeans, sugar and livestock. Each commodity is diversified across a range of different investment maturities and uses the same methodology as the UBS Bloomberg Constant Maturity Commodity Index (CMCI), which was launched in January 2007.
“Awareness of the link between commodity prices and inflation has increased significantly over the last six months, due mostly to the rise in food prices. The new index was developed in response to a growing demand from investors looking to hedge against this price inflation as well as from those looking to buy food related commodities for diversification purposes,” said Morgan Metters, head of commodity index structuring at UBS.
The family of UBS Bloomberg CMCI Indexes, including the new food index, will serve as underlyings for a variety of investment products, such as exchange-traded funds (ETFs), structured products and investment funds.
As of 25 February 2008, the commodities with the largest target weights were: wheat, with 21.94%; corn, with 17.33%; and soybeans, with 14.94%.
More on Structured Products
Chris Leone and Dushyant Chadha replace Paul Galietto
Steffen Scheuble says growth in mainstream strategies may be nearing saturation point
Capital-at-risk product pays out early if crude index is no lower than strike price in 30 months’ time
Investors’ capital at risk if underlying is below barrier level at maturity
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.