Legal & General Investment Management and Source are pleased to announce that the LGIM Commodity Composite Source ETF (Bloomberg code: LGCU LN Equity) has raised US$150 million in AUM since launch in January 2012 while the majority of providers have seen outflows in broad commodity ETFs in Europe, according to Bloomberg.
The LGIM Commodity Composite IndexTM (Bloomberg code: TGPLGCC), which is the benchmark for the Source ETF, is designed to represent the collective performance of a wide range of commodities by providing an investible benchmark consisting of selected indices from leading global index providers. LGIM uses an in-depth quantitative and qualitative screening process to select ‘best-of-breed’ commodity indices that combined deliver high-quality, dynamic and cost-efficient exposure to the broad commodities market.
Investors have responded positively to this index, and some have shown a particular interest in buying it in the form of a UCITS compliant ETF that employs counterparty risk diversification with a physical investment in US Treasury Bills.
The indices included in the current composition of the LGIM Commodity Composite Index are as follows:
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Index name
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Bloomberg code
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Barclays Capital Commodity Index Pure Beta TR |
BCC1C1PT Index |
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Citi CUBES Index Total Return |
CCUBDJTR Index |
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JPMCCI Ex-Front Month Energy Light Index (Total Return) |
JMCXXELT Index |
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UBS Bloomberg Constant Maturity Commodity Index |
CMCITR Index |
Stefan Garcia, Head of commodity sales at Source, commented, “The success of this product supports both the value of optimised indices, counterparty risk diversification and the role of LGIM as index manager.”
Simon Midgen, Head of Index Strategy at LGIM, added, “The LGIM Commodity Composite Index is designed to provide investors with a transparent measure of the performance of broad based commodities. The rapid growth in assets linked to the index provides further evidence that investors have embraced this approach.”
The LGIM Commodity Composite Source ETF is listed on the London Stock Exchange and trades in USD and GBP. It is registered for sale in Austria, Finland, France, Germany, Ireland, Italy (for institutional investors only), Luxembourg, the Netherlands, Sweden and the United Kingdom.
Source UK Services Limited is authorised and regulated by the Financial Services Authority in the United Kingdom.
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