Combines benefits of advanced futures rolling methodology with the largest commodity benchmark…
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Andrew Walsh, Head of Passive and ETF Specialist Sales UK & Ireland
UBS Asset Management announces the listing of the UBS ETFs (IE) Bloomberg Commodity CMCI SF UCITS ETF on the London Stock Exchange. This new broad commodities ETF combines the benefits of an advanced futures rolling methodology with standard constituent weights.
The UBS ETF (IE) Bloomberg Commodity CMCI SF UCITS ETF (‘BCOM-CM’) uses the constituent commodity weights of the Bloomberg Commodities index (‘BCOM’), but combines this with the rolling technique of the UBS Constant Maturity Commodity Index (‘CMCI’) family of indices which ultimately is far more effective in mitigating the effects of negative roll yield.
The BCOM index is the largest benchmark for broad commodity tracking assets (>$60bn) and is the standard benchmark used by institutional investors for diversified commodity investments. The existing UBS CMCI Composite Commodities Index (‘CMCI’) has a strong track record over the past ten years, with rolling performance exceeding the BCOM roll yield by an average of 3.6% p.a. since inception. This combination results in a standard commodity exposure backed by an efficient rolling mechanism, adding more value for investors.
Andrew Walsh, Head of Passive and ETF Specialist Sales UK & Ireland, said: “Accessing commodities in a UCITS structure requires the underlying index to use futures contracts as physical delivery is not permitted. This means that the process by which futures contracts are rolled in the underlying index can have a very significant impact on overall performance of the ETF”.
“The CMCI methodology is a rules-based approach, providing enhanced returns by implementing a daily rolling mechanism, which uses up to five different tenor points across different commodities future curves. This has proven advantages when compared to exposure via short term contracts only”, he added.
Building on the strength of UBS’s existing Commodities ETF offering
UBS Asset Management has been managing passive investments for over 30 years. Passive management is a core function within UBS, with total AuM for passive assets of GBP 199m (as of 31 March 2017). This new BCOM-CM ETF complements the existing UBS ETF (IE) CMCI Composite USD SF UCITS ETF which has recently passed USD 1.1bn in AUMs on the back of growing demand for more intelligent access to broad commodities markets. This ETF is currently the largest broad commodities ETF in Europe.
UBS ETFs (IE) Bloomberg Commodity CMCI SF UCITS ETF