Saturday 1st August 2015
NEWS TICKER, FRIDAY, JULY 31ST: US bond markets expect a $900m issue from the Metropolitan St. Louis Sewer District as early as next year after its rate commission voted yesterday to back the district’s plan to tap the markets. The bonds will continue financing a $4.7bn capital program required by the Environmental Protection Agency (EPA) to keep sewers in St. Louis and St. Louis County from regularly overflowing into area creeks and rivers. Already, the district has put $600m toward sewer projects in St. Louis and St. Louis County. MSD customers can consequently continue to expect annual sewer bill hikes each summer. In 2012, the average customer paid $29 monthly. This month, bills rose to an average of $41. After this bond issue, the monthly sewer bill will cost the average household $61 by 2019 - JP Morgan has hired Lebo Moropa, giving the bank its first dedicated prime brokerage and equity finance presence in South Africa, reports Securities Lending Times. Former HSBC trader Moropa has joined the bank in Johannesburg and will focus on synthetic and cash prime brokerage and securities lending, including delta one and will report to Paul Farrell in London. Moropa was a delta one trader at HSBC and has worked for JP Morgan before– Apulia Finance has informed the Luxembourg Stock Exchange of its intent to issue a securitised paper, backed by residential mortgage loans originated by Banca Apulia. The issue date is August 6th and the deal is lead managed by BNP Paribas who is also joint arranger with Finanziaria Internazionale Securitisation Group. Swap counterparty in the transaction is Canadian Imperial Bank of Canada and the clearers are Euroclear and Clearstream. Funding is at three month Euribor with a spread of 0.40% before the step up date and 0.80% after the step up date. The deal is worth a combined €170m of which €153m are Class A asset backed floating rate notes due 2043; €6.79m Class B asset backed notes and €9,84m are Class C asset backed floating rate notes – all due 2043.

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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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