Dow Jones Indexes and AIG Financial Products have released five new indexes and sub-indexes covering futures on commodities including agricultural products and energy.Dow Jones and AIG have produced euro- and yen-denominated versions of their existing commodities index, introduced in 1998, in response to demand for non-dollar-denominated commodity indexes in Europe and Japan.
The companies have also launched the Dow Jones-AIG ExEnergy Sub-Index, which is based on a basket of commodities excluding energy prices: aluminium, coffee, copper, corn, cotton, gold, lean hogs, live cattle, nickel, silver, soybeans, soybean oil, sugar, wheat and zinc. The Agriculture Sub-Index covers coffee, corn, cotton, soybeans, soybean oil, sugar and wheat.
The fifth index, the Dow Jones-AIG Commodity Spot Index, is based on the spot prices of the commodities listed in the existing commodity index, ignoring holding costs and the effects of rolling futures contracts.
Joseph Cassano, president and chief executive of AIG Financial Products, said that commodities were attracting increasing interest from around the world: "Growing numbers of investors are taking a closer look at commodities indexes because returns have historically been negatively correlated with stock and bond returns and positively correlated with inflation measures."
$15 billion is invested in Dow Jones-AIG commodity index tracking products worldwide, the companies estimate.
More on Structured Products
Retail brokers accused of stealing bank business with little oversight
High-net-worth investors pile into dollar and commodity structures as PBoC loosens
Progress slowed by lack of standardisation and fear of triggering regulatory mandate
Low returns from traditional investments are driving Australia's pension industry to look more at alternative assets
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.