The Deutsche Bank Liquid Commodities Indices Optimum Yield (DBLCI-OY) Balanced Total Return (USD) Index has met the criteria for inclusion in the LGIM Commodity Composite Index, the benchmark index of the LGIM Commodity Composite Source ETF. The change will come into effect on 20 March 2013.
The LGIM Commodity Composite Index was developed by Legal & General Investment Management Limited (LGIM) and is designed to offer high quality diversified, cost-efficient exposure to commodities in a UCITS-compliant ETF. DBLCI OY Balanced will join four existing constituents: Barclays Commodity Index Pure Beta TR index, Citi CUBES index, JP Morgan Ex-Front Month Energy Light Index (Total Return) and UBS Bloomberg Constant Maturity Commodity Index.
DBLCI OY Balanced is an optimised commodity index, designed to offer broad commodity exposure while maximising the return from rolling commodity futures. Over the past five years, DBLCI OY Balanced has outperformed S&P GSCI TR by 7.6% per annum.
“With the inclusion of the DBLCI OY Balanced, the LGIM Commodity Composite Index continues to offer ‘best of breed’ commodity exposure,” says Source CEO Ted Hood (pictured). LGIM’s selection criteria for the LGIM Commodity Composite Index include methodology, performance, liquidity and cost. “Having an index manager of LGIM’s calibre monitoring the commodity index universe, performing due diligence and regularly reviewing its index selection is a major advantage for our ETF investors.”
“The growth of assets tracking the LGIM Commodity Composite Index is further proof of the increasing demand from pension funds and institutional investors for exposure to alternative investments,” said Graeme Dewar, Director of LGIM Index Funds, “The inclusion of the DBLCI OY Balanced will provide investors with further diversified investment content.”
The LGIM Commodity Composite Source ETF trades on the London Stock Exchange in both GBP and USD and, as of 8 March 2013, has assets of over USD175 million.