Friday 4th September 2015
NEWS TICKER, THURSDAY, September 3rd: The Straits Times Index (STI) ended 28.3 points or 0.98% higher to 2906.43, taking the year-to-date performance to -13.63%. The top active stocks today were SingTel, which gained 0.82%, DBS, which gained 0.80%, UOB, which gained 1.40%, OCBC Bank, which gained1.13% and CapitaLand, with a 0.36%advance. The FTSE ST Mid Cap Index gained 0.55%, while the FTSE ST Small Cap Index rose 0.24% - Madrid City Hall announced it would dedicate €10m out of its 2016 budget to a "welcome plan for refugees" to include housing, integration, psychological support and legal aid, City Hall spokeswoman Rita Maestre (Ahora Madrid) said during a press conference on Thursday. Maestre said a budget had been decided upon but that specific numbers had not: "We want to welcome all those who are fleeing from war", adding that given their situation "a permanent housing solution" would be needed in the city. The Mayor of the Spanish capital, Manuela Carmena, said on Wednesday that a decision would be taken at the city government meeting today: "The city of the hug must, of course, be ready to welcome refugees" - The European Bank for Reconstruction and Development (EBRD) is joining international efforts to clean up Tunisia’s Lake Bizerte with a €20m loan and technical assistance to support the expansion and rehabilitation of the sewerage network of the Bizerte region and the rehabilitation of three wastewater treatment plants located near the lake. The EBRD’s investment is part of an integrated environmental programme aimed at de-polluting Lake Bizerte and reducing sources of pollution through investments in wastewater, solid waste and industrial effluents. This programme is labelled by the Union for the Mediterranean and is part of the Horizon 2020 Initiative, which aims to de-pollute the Mediterranean by the year 2020. The European Investment Bank is providing a €40 million sovereign loan to the programme while the European Union Neighbourhood Investment Facility is contributing a €15m grant for both capital expenditure and technical cooperation - Analysis of illicit financial flows (IFFs) by Global Financial Integrity (GFI) shows that over the period 2003-2012 the global volume of IFFs grew by more than 9% annually (. In 2012 (the most recent year for which data are available), illicit flows were estimated at close to $1trn. In response to this unfettered surge in illicit capital leaving developing nations, the UN has endorsed target 16.4 in the Sustainable Development Goals (SDGs), which commits the global community to “significantly reduce” IFFs by 2030. This UN action “represents an historic moment in development policy given that it is the first time the international community has recognized the illicit flows problem and pledged to address it,” says GFI President Raymond Baker - US Secretary of Commerce Penny Pritzker named Eduardo Leite, Chairman of the Executive Committee of Baker & McKenzie LLP, as the new chair of the US section of the US-Brazil CEO Forum. “Mr. Leite has served on the U.S. section of the CEO Forum for several years, and I am pleased that he has agreed to serve as Chairman,” said Secretary Pritzker. The new US section chair was named after the former chair, Ms. Patricia Woertz, Chairman of the Board of Directors of Archer Daniels Midland Company, submitted her resignation from the role. However, Woertz will remain a member of the U.S.-Brazil CEO Forum, and Leite will complete the current three-year term, which ends on August 13th 2016 - MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced total monthly trading volume for August 2015 of $75.5 billion, consisting of $43.7 billion in U.S. high-grade volume, $26.7bn in other credit volume, and $5.1 billion in liquid products volume. MarketAxess is providing both the reported and adjusted estimated US high-grade TRACE volumes on its website. The Company believes that the adjusted estimated volumes provide a more accurate comparison to prior period reporting.

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L&G Investment Management and Source offer a new index for commodity investment

Monday, 09 January 2012
L&G Investment Management and Source offer a new index for commodity investment Legal & General Investment Management (LGIM) and Source have launched the LGIM Commodity Composite Source ETF. The fund, which tracks the LGIM Commodity Composite Index, is designed to offer diversified exposure to commodities in a UCITS-compliant exchange traded fund (ETF).  http://www.ftseglobalmarkets.com/

Legal & General Investment Management (LGIM) and Source have launched the LGIM Commodity Composite Source ETF. The fund, which tracks the LGIM Commodity Composite Index, is designed to offer diversified exposure to commodities in a UCITS-compliant exchange traded fund (ETF). 

The LGIM Commodity Composite Index aims to be a new kind of benchmark for broad-based commodity exposure, says L&G. Using LGIM’s experience as an index manager (LGIM manages £347bn in assets) and both a quantitative and qualitative screening process, it offers exposure to a selection of what it terms ‘best of breed’ commodity indices. Graeme Dewar, head of strategy implementation at LGIM, explains that the firm is “seeing increasing demand from pension clients looking for access to this asset class.  Their primary requirements are for an efficient, dynamic product with diversification of counterparty risk.  Our solution has been to develop an innovative type of benchmark index that includes a minimum of three constituent sub-indices.  These sub-indices are selected using LGIM’s experience and core skill set to deliver a high quality, dynamic commodity composite index.”

The index at launch comprises four sub-indices and will be reviewed at least annually to ensure that it captures developments in commodity indexation.



Investors wishing to gain exposure to the LGIM Commodity Composite Index can do so via the LGIM Commodity Composite Source ETF. Source’s ETF structure combines physical investment in US Treasury bills with a swap overlay to provide more consistent index tracking. To diversify both counterparty risk and the composition of the index, the index references a number sub-indices and the fund will use multiple swap counterparties.  Source says it has mandated four swap counterparties for this product: Barclays Capital, Citigroup, JP Morgan, and UBS.

The LGIM Commodity Composite Source ETF will complement Source’s existing range of exchange traded commodities. Source chief executive Ted Hood explains: “Single-commodity ETCs are useful for investors who want to build a tailored portfolio. But, like LGIM, we see the need for a well-constructed commodity index, providing diversified exposure, at a reasonable cost and in a UCITS-compliant fund.  We are delighted to be partnering with LGIM, one of the world’s leading index managers, to create an ETF that tracks this groundbreaking index”.

The LGIM Commodity Composite Source ETF is listed on the London Stock Exchange and trades in GBP and USD. It is registered for sale in the UK and Ireland and is in the process of being passported to Austria, France, Germany, Finland, Italy (for institutional investors only), Luxembourg, the Netherlands, Sweden and Switzerland.

INDEX COMPOSITION

The indices included in the initial composition of the LGIM Commodity Composite Index are as follows:

 

Index name

Bloomberg Code

Barclays Capital Commodity Index Pure Beta TR

BCC1C1PT Index

Citi CUBES Index Total Return

CCUBDJTR Index

JPMCCI Ex-Front Month Energy Light Index (Total Return)

JMCXXELT Index

UBS Bloomberg Constant Maturity Commodity Index

CMCITR Index

PRODUCT SUMMARY

Product Name

LGIM Commodity Composite Source ETF

ISIN

 IE00B4TXPP71

Base currency

USD

Trading currency

GBP / USD

Management Fee

0.40% per annum

Average Swap Fee

0.45% per annum

Listing

London Stock Exchange

Benchmark

LGIM Commodity Composite Index

Benchmark Bloomberg Ticker

TGPLGCC <Index>

UCITS eligible

Yes

Domicile

Ireland

 

 

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