Constant Maturity Commodity Index is the first benchmark index to diversify across commodities and maturities

Constant Maturity Commodity Index is the first benchmark index to diversify across commodities and maturities

UBS Investment Bank has launched a range of 69 exchange-traded commodities on the London Stock Exchange.

The listing marks the first major issuance of ETCs by the bank in Europe outside of Switzerland.
The series of ETCs are designed to return the performance of the UBS Bloomberg Constant Maturity Commodity index (CMCI) and its sub-indices.

The bank says the CMCI is the first benchmark index to diversify across commodities and maturities.

The index and its sub-indices are denominated in US dollars, euros or sterling.

The index comprises a basket of 26 commodities with a range of investment maturities for each individual commodity.

It is weighted to reflect the relative importance of each individual commodity in the index to the world economy, with weights based on economic indicators, liquidity and open interest in the underlying futures contracts.

The ETCs are structured as publicly traded notes, which also provide access to sub-indices tracking sectors, individual commodities and strategies.

UBS Investment Bank commodity index structurer Zak Cherkaoui says the market for commodities investment has been largely restricted to sophisticated investors, up until recently.

He adds: “A broader investor based 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.”

LSE head of ETFs and ETCs Pietro Poletto says: “London is fast becoming the venue of choice for issuers looking to break into the European marketplace for exchange-traded products.”