S&P offers commodity and equity agribusiness exposure

Standard & Poor’s has unveiled the Global Agribusiness Composite Index, which is the latest launch in its global thematic index series. The new index combines both its GSCI Agriculture and Livestock sub-sector indexes with the S&P Global Agribusiness to provide exposure to both commodities and equities in the sector.

The S&P Global Agribusiness is made up of 24 different companies worldwide involved in producing, distributing, processing, and equipment and materials suppliers. Those included in the index are the largest publicly-traded companies in the sector from around the world, and must meet minimum market capitalisation and liquidity requirements.

The composite model will provide lower volatility for investors, the company says. Back testing has shown the index to provide a 40.34% return, as at 30 April