UBS launches exchange traded commodity range
Joe McGrath, 11 March 2010
UBS Investment Bank has launched a range of Exchange Traded Commodities (ETCs) on the London Stock Exchange.
The range will be track the UBS Bloomberg Constant Maturity Commodity Index (CMCI) and its family of sub indices.
UBS says that the CMCI is the first benchmark commodity index to diversify not only across commodities but also maturities.
In addition to the CMCI benchmark index, investors will be able to access a number of sub-indices which track sectors, individual commodities and strategies.
The return on the Notes is directly linked to the performance of the relevant Index, which is based on the performance of the underlying commodities. Each Index is available in US Dollars, Euro or Sterling.
The Notes are tradable on the London Stock Exchange, providing investors with exposure to the commodities market through a stock exchange transaction.
Zak Cherkaoui, commodity index structurer at UBS Investment Bank, said that, up until recently, the market for commodities investment has been largely restricted to sophisticated investors.
He added, ‘A broader investor base in the UK will now be able to gain exposure to the commodities market in an efficient and effective way using the LSE regulated and traded UBS ETC product.’
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